Computing & internet software global report 2010.pdf - IMAP

An IMAPHIGH TECHNOLOGYReportComputing & Internet SoftwareGlobal Report — 2010

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C O M P U T I N G A N D I N T E R N E T S O F T W A R E G L O B A L R E P O R T — 2 0 1 0Contents2009 M&A activity in computing and Internet software.............................. 4Computing and Internet software sector.......................................................... 4Shifting from capex to opex............................................................................................................ 5Alternative delivery model — SaaS............................................................................................ 5Industry-specific capabilities.........................................................................................................6Vendor consolidation...........................................................................................................................7IT spending by central governments...........................................................................................7Trends across industry verticals....................................................................................................7HOTTrends: Investment opportunities..........................................................8Mobile applications and computing............................................................................................8Internet-based models......................................................................................................................9Computing and Internet software industry outlook...................................... 11Statistical Reference (Appendices)Appendix A: Global Overview......................................................................................................A-iAppendix B: Summary of M&A Deals......................................................................................B-iAppendix C: Growth Drivers .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-iAppendix D: Niche Focus Areas .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-iAn IMAPHIGH TECHNOLOGYReportIMAP, Inc. is a Delaware corporation. Its regional firms are independently operating in various jurisdictions under a variety of legal forms of organization. References to IMAP transactions, offices,locations and other similar associations should not imply any form of IMAP ownership or agency over the local firms or cause any liability between the local firms and IMAP whatsoever.IMAP’s Computing & Internet Software Industry Global Report — 2010: Page 3

Large transactions led the way insluggish 2009 M&A activityThe economic slowdown had an adverse impact onM&A activity in the software sector. The sector saw1,131 transactions valued at $27.42 billion USD in twelvemonths (LTM) ending 1Q 2010, witnessing a year-overyeardecline of 25.4 percent in terms of transactionvalue ($36.75 billion USD during the previous periodwith 2,417 transactions). Dollar volume in this periodincluded one major deal (Sun Microsystems/Oracle),which represented $8.34 billion USD or nearly 28.1percent of total dollar volume in the period. Excludingthis transaction, the dollar volume would have beendown 48 percent. During the previous period, thelargest deal was the acquisition of NDS Group byPermira Advisers for $1.7 billion USD.In terms of business segment, Internet software andservices accounted for 30 percent of total transactionvalue followed by computer hardware and applications,which formed nearly 28 percent of the total.In terms of country, the US saw the highesttransaction value of $12.34 billion USD with a totalof 501 transactions in this twelve month period whileJapan came in second with a value of $9.12 billionUSD through 15 transactions. Among regions, NorthAmerica was the clear leader at $12.54 billion USD.M&A Activities at a GlanceLTM ending 1Q 2009 LTM ending 1Q 2010Transaction value (USD million) 36,752 27,415Top 5 transactions (%) 20.1% 46.7%Segment No. of transactions Value (USD mn)Computer Hardware &Applications1 8,341Internet Software & Services 18 7,583Application Software 838 5,412IT Consulting and Others 10 4,218Systems Software 199 1,464Top 5 regions No. of transactions Value (USD mn)North America 553 12,538Asia 128 10,755Europe 356 3,620South America 19 194Middle East 14 169Top 5 countries No. of transactions Value (USD mn)US 501 12,342Japan 15 9,123UK 78 1,386China 50 1,374Germany 47 964Source: Capital IQ, IMAPGlobal enterprise application software marketworking through bad-economy bugsThe software sector, which contributed around 25 percent to IT spending in 2009 andmainly consists of the enterprise application market and application developmentmarket, generated revenues of $382 billion USD in 2009. The top few players,such as Microsoft, SAP, Oracle and Nintendo, generated more than 75 percentof total revenues from the software business segment in 2009.2009 saw a decline in application software spending in all regions exceptAsia-Pacific. Despite the economy showing signs of a recovery in 2010,all industry verticals are still witnessing lower spending comparedto pre-recessionary levels due to flat budget growth in the year.Furthermore, according to Forrester’s Enterprise and SMBIMAP’s Computing & Internet Software Industry Global Report — 2010: Page 4

Considering these factors, most SaaS vendors reportedbetter performance, with SaaS revenues overall growing7.98 percent year-over-year in 2009. Deployment ofSaaS increased in all areas from customer-relationshipmanagement (CRM) to human-capital management(HCM), as well as spend management. In fact, Salesforce.com posted revenues above $1.3 billion USD, which is anew high for the SaaS industry that was estimated to be$7.5 billion USD in 2009.The increasing popularity of SaaS as a delivery modelhas not only led to increased revenues for SaaS vendorsbut also eaten into the revenue of traditional, on-premisevendors. However, the latter are still managing to maintaintheir operating margins as they rely on maintenanceand support revenues, which are naturally recurring.For example, the ratio of maintenance revenue to newlicenses of vendors such as CDC, Epicor, Exact, Lawson,Manhattan, Oracle, QAD and SAP increased as customerschose not to upgrade and purchase new licenses.Industry-specific capabilities arecrucial to remain competitiveIn addition to preferring low-cost models such as SaaS,customers are expecting deeper industry expertisefrom their software providers to gain a more integratedapplication environment and end-to-end processautomation. Hence, many companies have combinedcustom-built applications and customized industrypackages to supplement their core software. Thisenvironment leads to a complex setup and ongoingintegration challenges.Large enterprise software vendors have added verticaldepth and breadth. Both SAP and Oracle have investedheavily in industry solutions, each reportedly havingcapabilities in more than 20 verticals. This strategy toincrease industry depth has driven many acquisitions,particularly for Oracle. SAP, on the other hand, is buildingindustry functionality in-house but it has made severalvertical acquisitions to accelerate time-to-market.Enterprise Application Market Spending by Region, 2009Western Europe 30%Asia/Pacific 9%Japan 8%Latin America 3%Eastern Europe 2%Middle East & Africa 2%North America 46%Source: Gartner Research, IMAPSecond-tier software providers have foundmore success in offering deeper industryspecificfunctionalities compared withmega-vendors. Lawson, for example, hassuccessfully targeted industries such ashealthcare, food and fashion. Other vendors(e.g., Microsoft, Epicor and Sage) maychoose to go down to sub-industry levels,often relying on partners to add the last mileof specialization.Specialists focus on fewer or even singleverticals. Some do not even provide the coreaccounting functionality, which is crucialto any ERP system. Nevertheless, thesespecialized plays are often compelling tocustomers and may also attract the attentionof ERP vendors looking to partner or acquire.Specialist vendors offering comprehensivesuites to particular verticals include Deltek(project-based businesses), Blackbaud(not-for-profit), Mincom (mining and assetintensivebusinesses), QAD (manufacturing)and IBS (distribution). CGI Group gives ERPvendors stiff competition in the governmentsector, including US federal as well as stateand local governments. Specialists dominatethe lucrative healthcare market, particularlypatient systems. Notable players includeCerner, Eclipsys, Epic Systems, McKessonand Siemens.IMAP’s Computing & Internet Software Industry Global Report — 2010: Page 6

Functional expansion leading tovendor consolidationWith customers expecting deeper industry expertisefrom their software providers, many companies arecombining custom-built applications and customizedindustry packages to supplement their core software.This environment leads to a complex setup. Toovercome this challenge, vendors are looking toconsolidate by becoming a one-stop shop for allfunctions. This consolidation trend is also fuelled bythe rising competition between vendors and lowermarket valuations of struggling vendors because of thedownturn.Oracle has been a key proponent of vertical acquisitions,and SAP as well, though to a lesser extent. Possible playsfor some vendors include acquiring breadth in horizontalareas such as HR. Peer-to-peer acquisitions among ERPvendors appear less likely. Vendors may also acquireadjacent technologies, such as enterprise contentmanagement tools.Vendor ConsolidationActive AcquirersORACLEINFORTHE SAGE GROUPAgressoLawson SoftwareIFSVertical PlayersQADEpicorNetSuiteExact SoftwareDeltekRegional PlayersIntacctIBS SoftwarePotential AcquirersMICROSOFTSAPSource: Forrester Research, IMAPPublic administration represents the largestIT spending by central governmentsAfter the economic crisis, which saw governmentsannouncing massive stimulus packages, tax payers arenow demanding funding cuts in the public service arena.There will be increased attention on how money is beingspent at all levels of government.At the same time, telecommunications and the Internetare increasingly recognized as critical to economiesand service delivery. Governments are thus expectedto make efforts to move the majority of citizen servicesto an online delivery model to increase transparencyIBMPRIVATE EQUITYand create value for their constituents. To this end,investment across a wide variety of departments,functions and systems will be made. This will sustaininvestment in IT by governments in 2010, when thefocus will be on rightsizing, underscored by governmenttransformation or modernization.Furthermore, by 2012, up to one in five governmentprocesses is expected to rely on crowd-sourced data dueto the increasing influence of communities, individualsand groups in shaping the direction of businesses andmarkets. Thus, social media are becoming increasinglyimportant as sources of public information, making themmission-critical for governments.Trends across industry verticalsMost industries witnessed significant declines in ITspending in 2009. A majority of these cutbacks in techpurchases were driven by the fear of recession. Thesefears were more intense in some industries, such as retail,wholesale, transportation and logistics, and financialservices, leading to a sharp cutback in IT spending. Sincethe situation is now easing and prices are rebounding,the pent-up demand in these industries for IT goods andservices should bounce back in 2010.Retail: Gartner expects to see many Tier 1 retailerspursue an m-commerce strategy mainly to avoid laggingon this front. They expect, however, to see only 20 percentof retailers succeeding in their m-commerce initiative.As many retailers have discovered with the Web, crosschannelshopping requires more than just launching anm-commerce presence to enable direct selling.Manufacturing: By the end of 2011, manufacturers thatprioritize future software investments in operationaltechnologies such as product life-cycle management(PLM), manufacturing process management (MPM),manufacturing operations management (MOM) andquality management software (QMS), instead oftraditional IT and ERP, could achieve a tenfold return ontheir investment . 1Education: By 2015, most local education agencies areexpected to cut school construction by 50 percent byusing virtual learning environments to better utilizeexisting facilities.1 Gartner ResearchIMAP’s Computing & Internet Software Industry Global Report — 2010: Page 7

· Mobile specialists with multichannel capability such asSybase, IBM, Pyxis Mobile, Spring Wireless and Syclo· Application suite vendors that have their ownapplication suites, such as SAP and OracleAlong with mobile ERP, enterprise mobile cloudapplications (including thin clients and browser-basedapplications), SaaS, platform as a service (PaaS), andinfrastructure as a service (IaaS) can fuel growth in thismarket. Going forward, the mobile enterprise applicationmarket in North America is estimated to reach $10.3billion USD in 2013, a CAGR of 35 percent from 2008 to2013. 1However, it should be noted that proving return oninvestment (ROI) is still a concern for vendors andservice providers of mobile enterprise applications,because the market is in its nascent stages andcustomers are uncertain on whether they will fully obtainthe potential benefits promised by these applications.2) Internet-based modelsCloud-based application and infrastructure services:Cloud computing is currently emerging as a serviceoffering that leverages Internet hosting capabilities andcan be viewed as an evolution of SaaS. Cloud computingis generally regarded as IT infrastructure availableon demand and it offers start-ups and SMBs flexibleaccess to computing capabilities with minimum capitalexpenditure. Nevertheless, with Amazon.com’s spin-offAmazon Web Services (AWS) emerging as a leadingprovider of cloud computing services, cloud computing isexpected to become more influential.IT Spending in Cloud Computing in USD millions6,0005,0004,0003,0002,0001,0000Cloud Computing SpendingCAGR 35.8%2009 2010 2011 20122013Consulting Implementation ManagementSource: Gartner Research, IMAPThe worldwide market for IT services related to cloudcomputing and cloud services was worth almost $2.4billion USD in 2009. By 2013, the market is expectedto be worth almost $8.1 billion USD. By far, the largestcomponent of the overall cloud service market isimplementation, which represents 65 percent of the2009 IT services market and is estimated to represent 64percent by the end of 2013.Smart computing — collaboration,unified communications and voice over IP:Smart computing is based on technologies suchas service-oriented architecture, server andstorage virtualization, cloud computing, and unifiedcommunications. It adds to existing technologies newcapabilities of real-time situational awareness andautomated analysis.Smart computing will help companies optimize processresults and returns from their balance sheets. Unlikethe horizontal technologies of personal computing andnetwork computing, smart computing will have a highlyvertical industry focus.Tech vendors have great growth opportunities in this newcycle but also big challenges in navigating the shift tosmart computing. Accordingly, in the US alone, the shareof the smart computing industry’s vertical solutions inthe IT market will increase from 6 percent in 2008 to 23percent in 2016. 2 The market is expected to increase from$27 billion USD in 2009 to $213 billion USD in 2017 in theUS.Linux and open-source software (OSS):The phenomenon of OSS, which started 20 years back,has suddenly gained momentum as a possible alternativeto expensive proprietary software. As the open sourcemovement expands up the software stack, nearly allsoftware markets are now being impacted in some way.The OSS segment is experiencing slow but steadygrowth. The release of the open source Internet browserFirefox 3.0 by Mozilla in June 2008 was a major event foropen source applications, with more than 8 million peopledownloading the new version of the software withinthe first 24 hours after its release. The Firefox browserhas steadily been gaining market share, which had 24.2percent of the overall browser market in February 2010from 21.8 percent in February 2009.1 http://www.cellular-news.com/story/38739.php2 Forrester Research: Smart Computing Drives The New Era Of IT GrowthIMAP’s Computing & Internet Software Industry Global Report — 2010: Page 9

In a Forrester Research report on enterprise interestfor OSS, two-thirds of the 1,017 respondents at NorthAmerican and European enterprises expressed someinterest in open source deployment.Virtualization:PC, server, and storage virtualization is growing andis being supported by the relatively tough economicconditions worldwide. Virtualization is introducing newways of packaging client computing applications andcapabilities. As a result, the choice of a particular PChardware platform, and eventually the OS platform,becomes less critical. Thus, enterprises are proactivelybuilding a five- to eight-year strategic client computingroadmap outlining an approach to ownership andsupport, operating system and application selection,deployment and update, and management and securityplans to manage diversity in the virtualization arena.Spending on virtualization software technologies isforecast to grow at a 33.6 percent CAGR from 2009 to2013. Growth would be driven by organizations looking tolower the total cost of ownership and to increase overallIT effectiveness. 1Business intelligence (BI) and analytical software:BI and specialized analytical software such as datamining and predictive analytics, video image analysis,pattern recognition, and artificial intelligence algorithmshelp businesses or governments analyze patterns oranomalies on a real-time basis. These functions make BIimportant in economically challenging times. As a result,1 Gartner Researchthe BI market was much less affected by the economiccrisis than most other software markets.All the big sellers of BI software are either parts of largersoftware vendor or private companies with the exceptionof pure-play BI public companies such as MicroStrategyand Actuate.New categories of advanced analytics, including businessperformance solutions, text analytics, predictiveanalytics, and complex event processing, are expectedto merge into the core BI market, thereby further fuelinggrowth. The BI market is expected to reach $14 billionUSD by 2014. 2Social CRM:Social CRM (also known as CRM 2.0) is a businessstrategy supported by a system and designed to engagethe customer in a collaborative interaction that providesmutually beneficial value in a trusted and transparentbusiness environment.The industry has many participants and includes differenttypes of players such as traditional CRM vendors,community platform and social media players, as well asbrand monitoring players. Most of the players provide ondemandsubscription-based offerings in social CRM.Social CRM is most likely to be the next big trend in theentire CRM industry. According to one Gartner report,social CRM is expected to see significant growth, asmore than 80 percent of the enterprise use of socialnetworking tools in 2010 will be driven by customerengagement projects. In addition, Forrester mentionsthat by 2013, businesses will be spending almost $4.6billion USD on Web 2.0 tools, which include advancedInternet technology and applications such as blogs, wikis,really simple syndication (RSS), and social bookmarking.In an April 2008 report, the research group forecast43 percent annual growth in the social mediamarket for the so-called Enterprise 2.0 asorganizations are investing heavily in socialnetworks.2 Forrester Research: Market Overview: The Business IntelligenceSoftware MarketIMAP’s Computing & Internet Software Industry Global Report — 2010: Page 10

Computing and Internet software industry outlookThe enterprise software market underwent a tumultuousphase during the economic slowdown of 2008-2009and the recession that ensued. The sector overall facedpressure in terms of prices which in turn hamperedmargins. This led to vendors making structural changesin their technology and business model to adapt to thechanging software demand space.Most companies locked in their IT budgets for 2010with a marginal increase in overall IT spending expectedfor the year. While spending is nowhere close to thedepressed levels during the recession, it will be sometime before spending reaches pre-recessionary levels.A meaningful recovery in spending is expected only inthe second half of 2010. With the recession still fresh,companies are looking to convert their enterprisesoftware needs from capex to opex. This means vendorswith SaaS, virtualization capabilities and open-sourcestrategy are poised to benefit in the near future.This is not to say large vendors with non-SaaScapabilities will be left behind. Due to their sheer sizeand geographic diversification, they can price theirproducts aggressively and also bundle offerings tomake packages more attractive. Moreover, as legacyoperators, most of their contracts are maintenancebased, making revenues recurring in nature. This isunlike vendors in only one market or those without awide geographical presence, whose revenues are highlydependent on new contract wins.Geographical presence, in particular, cannot be underestimatedbecause North America still accounts for 45percent of all software revenue, which by any standardis a large chunk. While the share of emerging marketsis expected to increase to 20% by 2013, it is still a smallshare compared with North America. Hence, any futureweakness in the US markets could have a material impacton revenue. Nevertheless, emerging markets willplay a huge role in balancing revenues in the years tocome because of their growing demand potential andunderpenetrated nature.The software sector has always accounted forthe largest number of all technology related M&Atransactions, over 40%. And, the value received isvery much a function of finding the buyer that canbest exploit the acquired technology. This requiresadvisors to conduct a global search effort, evenfor sellers with modest revenues.Ron Klammer, IMAP technology advisor, Southport, ConnecticutSoftware Market Outlook, Quarterly, 2008-2010Global software vendors’ revenues by category of software (percentage change from prior year)2008 2009 20101Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q* 1Q* 2Q* 3Q* 4Q*Operating systems 3% 9% 6% -7% -15% -21% -20% 11% 17% 23% 22% 16%Middleware 14% 19% 12% 3% 4% -4% -2% 3% 5% 5% 7% 6%Applications 14% 17% 12% -3% -12% -16% -13% 2% 10% 12% 12% 12%TOTAL 11% 16% 11% -1% -5% -12% -9% 4% 9% 10% 11% 10%US software vendors’ revenues by category of software (percentage change from prior year)2008 2009 20101Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q* 1Q* 2Q* 3Q* 4Q*Operating systems -3% 3% 1% -7% -14% -23% -20% 8% 10% 16% 16% 14%Middleware 8% 13% 9% 7% 10% -1% 1% 3% 4% 6% 6% 5%Applications 5% 7% 4% -4% -11% -15% -13% 0% 6% 9% 9% 9%TOTAL 6% 9% 7% 1% -1% -9% -8% 3% 6% 8% 8% 8%Source: 2008 and Q1, Q2, and Q3 2009 quarterly financial reports of 18 large, global software vendors 11 BEA Systems (prior to acquisition by Oracle), BMC, Business Objects (prior to acquisition by SAP), CA, Cognos (prior to acquisition by IBM), Fujitsu, Hyperion (prior to acquisitionby Oracle), EMC, Hewlett-Packard, Hitachi, IBM, Mercury Interactive (prior to acquisition by Hewlett-Packard), Microsoft, NEC, Oracle, SAP, Sun (prior to acquisition by Oracle), andSymantec.IMAP’s Computing & Internet Software Industry Global Report — 2010: Page 11

Appendix A: Global Overview of Computing & Internet Software(Enterprise Software Industry)Value chain of the software marketAccording to IDC, the worldwide software market is composed of three primary software submarkets:• System Infrastructure Software: System infrastructure softwareintegrates a computer’s various capabilities but typically does notdirectly affect the performance of tasks that benefit end users. Thismarket comes first in the value chain and operates as a foundation forthe creation of various applications.• Application Development and Deployment: AD&D is a processthat includes the development of a software product, known assoftware life cycle. The AD&D market is second in the value chain;software development and deployment activity begins with systeminfrastructure as the base.• Applications (Consumer and Enterprise): Application software,also known as software applications, is computer software designedto help the user perform a single or multiple tasks. This is one of thebiggest submarkets in the software industry; the applications marketcontributes roughly 60% to total software revenues. The applicationsmarket can be further classified as follows:· enterprise application software, which includes content,communications and collaboration (CCC), customer relationshipmanagement (CRM), enterprise resource planning and supplychain management (ERP & SCM), office suites and digital contentcreation (DCC)· enterprise infrastructure software such as middleware anddatabases· information worker software· content access software· educational software· simulation software· media development software1 IDC’s Software Taxonomy, 2010Value chain of the enterprise application marketThe enterprise application market includes various secondary markets.Sub-ApplicationsERPSCMCRMDescriptionERP integrates the data and processes of an organization on a cross-functional and enterprise-wide level into one singlesystem. Usually ERP systems have many components including hardware and software to achieve integration. The two keycomponents of an ERP system are a common database and a modular software design.Large ERP vendors include Oracle and SAP and middle-tier ERP vendors include Agresso, Epicor Software and LawsonSoftware.SCM encompasses the planning and management of all activities involved in sourcing, procurement, conversion, andlogistics management. It also includes the crucial components of coordination and collaboration with channel partners,which can be suppliers, intermediaries, third-party service providers, and customers. 2 SCM also addresses issues related todistribution channels and inventory management.SAP, Oracle, Infor and Inspur are some of the large SCM vendors, while middle-tier vendors include 7Hills, Accellos,AdvanceWare Technologies, Fascor and Manhattan Associates.CRM involves the use of technology to organize, automate and synchronize business processes—principally sales activities,but also those for marketing, customer service and technical support. CRM also helps in reducing the time required for salescycles while hanging onto potential sales leads.Major CRM vendors include SAP and Oracle and midmarket-centric vendors include FrontRange Solutions, Maximizer Softwareand Sage Software. Salesforce.com and Netsuite are some software-as-a-service (SaaS)-based CRM application providers.2 Definition by Council of Supply Chain Management Professionals (CSCMP)Software sector overview and trends• Global IT 1 spending was estimated at $1.5 trillion USD in 2009,decreasing 8.9 percent compared to 2008. The decline, however,turned out to be less than expected as the US market startedrecovering in 4Q 2009 while the Asia-Pacific market, especially India,China and Australia, reported better performance in 2009. Global ITspending in 2010 is expected to reach $1.6 trillion USD, indicating ayear-over-year growth of 8.1 percent. 2• Compared to pre-recessionary levels, all verticals have suffered fromlower IT spending, which varies widely by region. The vast majority ofenterprises are expected to continue experiencing almost flat budgetgrowth in 2010. According to Forrester’s Enterprise and SMB Software1 Consists of spending on computer equipment, communication equipment, software, ITconsulting and systems integration services, and IT sourcing2 Forrester Research - US And Global IT Market Outlook: 4Q 2009Survey, North America and Europe, 4Q 2009, a high percentage ofrespondents expected to leave their IT budgets unchanged in 2010 andmany enterprises remain vulnerable and are uncertain about near-termbusiness prospects. 3• In terms of region, the strongest growth in 2010 should be in Westernand Central Europe, where tech purchases are expected to rise 11.2percent, boosted by the dollar’s decline against the euro. This wouldbe followed by Canada at 9.9 percent, Asia-Pacific at 7.8 percent,and Latin America at 7.7 percent. Eastern Europe, the Middle Eastand Africa are expected to be the weakest market, rising by just 2.4percent. With oil prices recovering from bottom levels but still below2008 peak prices, oil-producing economies in the Middle East shouldperform slightly better, leading to a recovery in tech purchases in3 Ovum ResearchIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-i

Thumbnail summaries of top 50 computing and internet software companies(enterprise software industry)1: MICROSOFT CORP (US)Brief descriptionProducts soldKey brandsMarkets coveredGeographic coverage (2009) US: 56.6%; Rest of world: 43.4%Developer cum manufacturer that licenses, sells and supports software products. Acquired Opalis SoftwareInc. in December 2009.Operating systems for servers, computers and intelligent devices; server applications for distributed computingenvironments; information worker productivity applications; business solutions applications; computingapplications; software development tools; video games.Active Accessibility, Active Desktop, ActiveMovie, ActiveStore, Azure, InfoPath, Inkseine, InPrivate, IntelliMirror,IntelliMorph, IntelliMouse, Microsoft Game Studios, MSN, Outlook, SQL Server, Visio, Visual Basic, WindowsMedia, Xbox 360Client, Server and Tools, Online Services Business, Microsoft Business Division, Entertainment and DevicesFuture plans Office 2010 Tech Guarantee program and YAHOO search partnership model to be launched in 2010Financials (LTM)Revenue: 58.7 billion USD, year-over-year change: 3.3%Operating profit: 21.8 billion USD, year-over-year change: 8.0%Net income: 16.3 billion USD, year-over-year change: 17.6%2: APPLE INC (US)Brief descriptionProducts soldKey brandsMarkets coveredDesigns, manufactures and markets personal computers, mobile communication devices and portabledigital music and video players. Also sells a variety of related software, services, peripherals and networkingsolutions. Sells its products worldwide through its online stores, retail stores, direct sales force and third-partywholesalers, resellers and value-added resellers. Acquired digital music service Lala in December 2009.Portables, desktops, music-related products, software and services, iPhone, related productsAirTunes, Aperture, Apple, AppleCAT, AppleLink, Apple TV, Cocoa, iMovie, Inkwell, iPhone, iPhoto, Safari,Sand, WebScript, XcodeNAGeographic coverage (2009) Americas: 44.1%; Europe: 27.5%; Rest of world: 28.4%Future plansFinancials (LTM)Focus on new product development and overcome challenges of the PC marketRevenue: 46.7 billion USD, year-over-year change: 14.4%Operating profit: 13.4 billion USD, year-over-year change: 41.0%Net income: 9.4 billion USD, year-over-year change: 34.6%3: ORACLE CORP (US)Brief descriptionProducts soldKey brandsMarkets coveredDevelops, manufactures, markets, distributes and services database and middleware software as well asapplications software. Acquired Silver Creek Systems and Sun Microsystems in January 2010.Software business consists of two product segments: 1) new software licenses and 2) software licenseupdates plus product support. Services business consists of three operating segments: consulting, on demandand education.Applications Unlimited, AutoVue, Case Exchange, JD Edwards EnterpriseOne, Oracle E-Business Suite,Oracle Enterprise Manager, Oracle Fusion, Oracle Transparent Gateway, Oracle Video Server, Oracleware,SQL ModuleSoftware and services represented 81% and 19% of its total revenues, respectivelyGeographic coverage (2009) US: 43.8%; UK: 6.8%; Japan: 5.11%; Germany: 4.11% France: 3.6%; Canada: 3.17%; Rest of world: 33.3%Future plansFinancials (LTM)Plans to deliver a complete, open, integrated stack of hardware, software and business application solutionsand optimize synergy benefits. Plans to form more attractive support plans.Revenue: 24.2 billion USD, year-over-year change: 3.7%Operating profit: 9.3 billion USD, year-over-year change: 6.8%Net income: 5.7 billion USD, year-over-year change: 1.3%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-iii

4: RESEARCH IN MOTION INC. (Canada)Brief descriptionProducts soldKey brandsMarkets coveredDesigns, manufactures and markets wireless solutions for the worldwide mobile communications market.Through the development of integrated hardware, software and services, RIM provides platforms andsolutions for access to information, including e-mail, phone, SMS, Internet and intranet-based applications.Acquired Chalk Media Corp. and Certicom Corp in 2009.Mobile applications and devicesBlackBerryWireless business solutionsGeographic coverage (2009) US: 62.9%; Canada: 8.1%; UK: 6.4%; Rest of world: 22.6%Future plansFinancials (LTM)Build and operate strategies to handle the pricing pressures on mobile devices and other related servicesRevenue: 14.95 billion USD, year-over-year change: 35.1%Operating profit: 3.1 billion USD, year-over-year change: NMNet income: 2.5 billion USD, year-over-year change: 29.8%5: SAP AG (Germany)Brief descriptionProducts soldKey brandsMarkets coveredSells licenses for software solutions and related services; offers consulting, maintenance and training servicesfor its software solutions. As of December 31, 2009, the company had more than 95,000 customers in over120 countries and has 163 subsidiaries.SAP Business Suite software and international corporations; SAP Business All-in-One solutions; SAPBusiness ByDesign solution; SAP Business One application for SMBs; SAP BusinessObjects portfolio whichcovers a variety of demands from small to large companiesNAProduct, consulting and trainingGeographic coverage (2009) EMEA: 52.9%; Americas: 33.9%; Asia Pacific: 13.2%Future plansFinancials (LTM)R&D focus on expanding on-demand offerings and mobility—delivering solutions on device; M&A focus ismainly on bolt-on acquisitions which will enhance its industry/technology product portfoliosRevenue: 14.9 billion USD, year-over-year change: 7.8%Operating profit: 3.9 billion USD, year-over-year change: 0.9%Net income: 2.4 billion USD, year-over-year change: 5.8%6: COMPUTER ASSOCIATES (CA), INC. (US)Brief descriptionProducts soldKey brandsMarkets coveredIndependent IT management software company that develops and delivers software that help manage ITthroughout complex computing environments. Addresses entire computing environment. Acquired Nimsoft,3Tera, Inc., Cassatt, and Oblicore in 2010.Products/services in mainframe and distributed environments spanning IT governance, management, securityPlans to acquire Nimsoft from which it would benefit from its strong presence with managed service providers(MSPs) and emerging enterprises solutionsInfrastructure management, project and portfolio management, security management and data centerautomation and virtualizationGeographic coverage (2009) US: 58.7%; Europe: 26.4%; Rest of world: 14.9%Future plansFinancials (LTM)Restructuring efforts in Asia—shift in sales strategy from a direct sales force model to an indirect, partner-ledmodel; plans to make acquisitions to achieve growthRevenue: 4.3 billion USD, year-over-year change: 0.1%Operating profit: 1.3 billion USD, year-over-year change: 26.1%Net income: 742.0 million USD, year-over-year change: 38.8%7: INTUIT INC (US)Brief descriptionProducts soldKey brandsMarkets coveredGeographic coverage (2009) US: 100.0%Future plansFinancials (LTM)Developer and marketer of business and financial management software solutions for SMBs, financialinstitutions, consumers and accounting professionals.QuickBooks financial and business management software, payroll products for SMBs, merchant services,Lacerte and ProSeries professional tax products, outsourced online servicesBanknow, Checklock, Eclipse, Expensable, Intellicharge, Intuit, PC Access, Pocket Quicken, Pocket QuickenConnect, Proseries, Quickbooks Pro Quicken, Quickguide, Quickzoom, Tax Partner, The Tax Professional’sChoice, TurboformsFinancial management solutions, employee management solutions, payments solutions, consumer tax solutionsFocus on Mint.com (platform) rollout and reduce costsRevenue: 3.2 billion USD, year-over-year change: 3.6%Operating profit: 718.5 million USD, year-over-year change: 5.5%Net income: 460.1 million USD, year-over-year change: 6.2%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-iv

8: ADOBE SYSTEMS INC. (US)Brief descriptionProducts soldKey brandsMarkets coveredDiversified software company which offers creative, business, Web and mobile software and services usedby creative professionals, knowledge workers, etc. for creating, managing, delivering and engaging withcontent and experiences across multiple operating systems, devices and media. Distributes products througha network of distributors, VARs, systems integrators, independent software vendors and OEMs, direct to endusers and through its www.adobe.com. In 2009, it completed the acquisition of Omniture.Prepackaged softwareFRAMECreative solutions, knowledge worker, enterprise, print and publishing, platform, mobile and device solutionsGeographic coverage (2009) Americas: 46.9%; EMEA: 31.5%; Asia: 21.5%Future plansFinancials (LTM)Launch CS5 (new product) to increase portfolio offerings and focus more on the US marketRevenue: 3.0 billion USD, year-over-year change: 17.7%Operating profit: 700.1 million USD, year-over-year change: 31.0%Net income: 357.2 million USD, year-over-year change: 55.5%9: SAGE GROUP (UK)Brief descriptionProducts soldKey brandsMarkets coveredDevelopment, distribution and support of business management software and related products and servicesfor SMBs. Operates in 24 countries. Acquired Aytos CPD, S.L. (Aytos) and disposed of the Tax ComplianceServices division in 2008. Disposed of Sage Pro-Concept S.A. in October 2009.NANAAccounting; industry-specific; human resource (HR) and payroll; customer relationship management (CRM);payment processingGeographic coverage (2009) North America: 40.0%; Mainland Europe: 36.2%; UK & Ireland: 16.8%; Rest of world: 7.0%Future plansFinancials (LTM)Reduce the cost base along with measures to improve license incomeRevenue: 2.2 billion USD, year-over-year change: 11.1%Operating profit: 430.9 million USD, year-over-year change: 4.0%Net income: 293.7 million USD, year-over-year change: 14.0%10: BMC SOFTWARE INC (US)Brief descriptionProducts soldKey brandsMarkets coveredProvides management solutions for mainframe and distributed information technology systems. Portfolio ofsoftware solutions spans enterprise systems, applications, databases and IT process management. AcquiredMQSoftware and Tideway Systems Limited in 2009. Acquired Phurnace Software, a developer of automationsoftware in January 2010.Mainframe and distributed systems, applications, databases and information technology process managementfunctionsACSM, Assuring Business Availability, BMC Software, Cellular Event Processing Architecture, Mastercell,MastervisionEnterprise service management and mainframe service managementGeographic coverage (2009) US: 62.1%; and Rest of world: 37.9%Future plansFinancials (LTM)Focus on transformation of sales forceRevenue: 1.9 billion USD, year-over-year change: 8.1%Operating profit: 523.0 million USD, year-over-year change: 20.0%Net income: 370.6 million USD, year-over-year change: 24.1%11: FUJI SOFT INC (Japan)Brief descriptionProducts soldKey brandsMarkets coveredIndependent software developer specializing in communications and machine control software, businessapplication software for bank and insurance companies, and operating system software.Embedded software, operation software and other softwareNAGeographic coverage (2009) Japan: 100%Future plansFinancials (LTM)Software for control and operational systems, cost saving measures by cutting SG&A expenses, expandingglobal footprint through acquisitions, strengthening collaboration within the groupPromote cloud computing and on-premise businessesRevenue: 1.6 billion USD, year-over-year change: 3.3%Operating profit: 53.0 million USD, year-over-year change: 2.7%Net income: 10.5 million USD, year-over-year change: 59.3%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-v

12: CITRIX SYSTEMS (US)Brief descriptionProducts soldKey brandsMarkets coveredDesigns, develops and markets technology solutions that enable IT services to be delivered through its virtualcomputing infrastructure on demand, independent of location, device or network. Citrix served over 230,000customers and over 100 million users in more than 100 countries in 2009.Desktop solutions and datacenter/cloud solutionsXenDesktop, XenApp, GoToMeeting, GoToTraining, GoToAssist and GoToMyPC, CitrixXenServer, CitrixEssentialsNAGeographic coverage (2009) Americas: 43.1%; EMEA: 29.8%; Asia-Pacific: 8.0%; Rest of world: 19.1%Future plansFinancials (LTM)Focus on expanding XenDesktop 4 offerings both as long term and near term trade opportunitiesRevenue: 1.6 billion USD, year-over-year change: 1.9%Operating profit: 210.9 million USD, year-over-year change: 32.1%Net income: 191.0 million USD, year-over-year change: 7.1%13: SUMISHO COMPUTER (Japan)Brief descriptionProducts soldKey brandsMarkets coveredDevelops a variety of computer software, including software for business applications, electronic commerce,development tools, internet and financial industries. Industrial solutions form a major portion of revenues.Industrial solutions, ERP solutions and platform solutionsNAGeographic coverage (2009) Japan: 100.0%Future plansFinancials (LTM)Packaged software, software development, information servicesFocus on projects in the insurance and banking industries; allocating management resources to clients’ ITinfrastructure development and certain R&D solutionsRevenue: 1.4 billion USD, year-over-year change: 2.1%Operating profit: 83.8 million USD, year-over-year change: 12.4%Net income: 32.6 million USD, year-over-year change: 26.9%14: SALESFORCE.COM (US)Brief descriptionProducts soldKey brandsMarkets coveredProvides enterprise cloud computing applications; provides a technology platform for customers anddevelopers to build and run business applications; offerings can be deployed, customized and integrated withother software applications; markets its service to businesses on a subscription basis.NANACustomer and collaboration relationship management (CRM)Geographic coverage (2009) Americas: 70.8%; Europe: 17.8%; Asia-Pacific: 11.4%Future plansFinancials (LTM)Focus on capturing opportunities in the area of enterprise software and may look to make an acquisitionRevenue: 1.3 billion USD, year-over-year change: 21.3%Operating profit: 115.3 million USD, year-over-year change: 80.8%Net income: 80.7 million USD, year-over-year change: 85.9%15: MISYS PLC (UK)Brief descriptionProducts soldKey brandsMarkets coveredEngaged in the development, management and licensing of a variety of software products and solutions tocustomers in the financial services and healthcare industries; develops and delivers open source technologies.The merger to form Allscripts-Misys Healthcare Solutions, Inc. (Allscripts) was completed in October 2008.Misys PLC acquired a 56.8% interest in Allscripts.NABankFusion universal banking solutionSoftware solutions to banking, treasury & capital markets, Allscripts healthcare, central servicesGeographic coverage (2009) Americas: 60.8%; Europe: 19.1%; Asia-Pacific: 7.15%; UK: 5.68%; Rest of world: 7.38%Future plansFinancials (LTM)Focus on upgrading existing customers along with new customers by selling BankFusion software andcreating suitable sales support for BankFusionRevenue: 1.2 billion USD, year-over-year change: 40.6%Operating profit: 186.9 million USD, year-over-year change: 35.4%Net income: 47.4 million USD, year-over-year change: 27.6%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-vi

16: SOFTWARE AG (Germany)Brief descriptionProducts soldKey brandsMarkets coveredProvides business infrastructure software solutions; products include solutions for managing data, enablingservice-oriented architecture (SOA) and improving business processes; has more than 80 locations in 70countries worldwide.Enterprise transaction systems include software such as Adabas SQL Gateway, Event Replicator, NaturalBusiness Services, Natural Engineer. Other web methods include webMethods Suite and CentraSiteNAProfessional services, maintenance, licensesGeographic coverage (2008) US: 28.6%; Germany: 11.28%; Spain: 10.9%; Rest of world: 49.2%Future plansFinancials (LTM)Integrate IDS Scheer (new platform from acquisition) along with cross-selling opportunities; cost controlRevenue: 1.2 billion USD, year-over-year change: 17.6%Operating profit: 300.1 million USD, year-over-year change: 30.8%Net income: 196.6 million USD, year-over-year change: 21.7%17: SYBASE INC (US)Brief descriptionProducts soldKey brandsMarkets coveredDelivers enterprise software and services to manage, analyze and mobilize information; provides open, crossplatformsolutions that deliver information anytime and anywhere, providing decision-ready information.Enterprise class database servers, integration and development products, mobile database, mobile enterprisesolutionsAdaptive Server Enterprise, EDI Server, Information Anywhere, Jaguar CTS, Navigation Server, SQL Server,Sybase, Ultralite.net, Warehouse StudioInfrastructure platform and global services for mobile messaging interoperability and the management anddistribution of mobile contentGeographic coverage (2008) North America: 50.2%; EMEA: 35.3%; Asia Pacific and Latin America: 14.6%Future plansFinancials (LTM)Explore new database architecture and software to power mobile devices; expand offerings in the softwareand architecture areas through acquisitionRevenue: 1.2 billion USD, year-over-year change: 3.4%Operating profit: 290.9 million USD, year-over-year change: 38.4%Net income: 164.0 million USD, year-over-year change: 27.9%18: CHECK POINT SOFT (Israel)Brief descriptionProducts soldKey brandsMarkets coveredDevelops, markets, and supports a range of software and combined hardware and software products andservices for IT security; solutions operate under a unified security architecture that enables total end-to-endsecurity with a single line of unified security gateways and allows a single agent for all endpoint security.Acquired Nokia Corporation’s security appliance business in April 2009.NANANetwork and gateway security solutions, data and endpoint security solutions, management solutionsGeographic coverage (2008) EMEA: 44.6%; Americas: 43.2%; Japan: 12.2%Future plansFinancials (LTM)Focus on share buyback, major focus on product revenues in the data security segment rather thanmaintenance supportRevenue: 924.4 million USD, year-over-year change: 14.3%Operating profit: 424.1 million USD, year-over-year change: 19.0%Net income 357.5 million USD, year-over-year change: 10.4%19: MICROS SYSTEMS INC (US)Brief descriptionProducts soldKey brandsMarkets coveredDesigner, manufacturer, marketer and servicer of enterprise information solutions for the global hospitalityand specialty retail industries. Acquired Fry, Inc., an e-commerce design, development and managed servicesprovider August 2008.Software encompassing property-based management systems (PMS), related property-specific modules andapplications, central systems including central reservation systems (CRS)FidelioGeographic coverage (2009) US: 51.6%; Rest of world: 48.4%Future plansFinancials (LTM)Enterprise solutions: hotel information systems, restaurant information systems, specialty retail informationsystemsFocus on cost reduction and further improvement in marginsRevenue: 867.9 million USD, year-over-year change: 4.4%Operating profit: 145.3 million USD, year-over-year change: 3.2%Net income: 98.2 million USD, year-over-year change: 1.9%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-vii

20: OPEN TEXT CORPORATION (Canada)Brief descriptionProducts soldKey brandsMarkets coveredProvides enterprise content management (ECM) software solutions; Open Text ECM Suite enablescorporations to manage traditional forms of content (images, office documents, graphics and drawings) as wellas electronic content (Web pages, e-mail and video); offers solutions both as end-user standalone productsand as fully integrated modules. Acquired Vizible Corporation and Vignette Corporation in 2009.ECM software productsNAECM software solutionsGeographic coverage (2009) North America: 50.4%; Europe: 42.6%; Others: 6.9%Future plansFinancials (LTM)Launch of a new series of products in mobile applicationsRevenue: 854.6 million USD, year-over-year change: 8.3%Operating profit: 106.1 million USD, year-over-year change: 35.0%Net income: 64.5 million USD, year-over-year change: 7.4%21: NOVELL INC (US)Brief descriptionProducts soldKey brandsMarkets coveredDevelops, sells and installs enterprise software positioned in the operating systems and infrastructure softwarelayers of the IT industry worldwide.SUSE Linux Enterprise Server, an open source server operating system; SUSE Linux Enterprise Desktop, abusiness desktop operating system; SUSE Studio that allows independent software vendors to build softwareappliances; SUSE Moblin, a Linux based open source operating systemNovell ZENworks and PlateSpinLinux and related solutions for enterprises; identity and security management; systems and resourcemanagementGeographic coverage (2009) US: 49.3%; EMEA: 34.9%; Asia Pacific: 9.5%; Rest of world: 6.4%Future plansFinancials (LTM)Focus on improvement in top line in the next 12-18 months and improve fundamentalsRevenue: 849.7 million USD, year-over-year change: 9.9%Operating profit: 135.0 million USD, year-over-year change: 101.4%Net income: 203.0 million USD, year-over-year change: NM22: RED HAT INC (US)Brief descriptionProducts soldKey brandsMarkets coveredDevelops and provides open source software and services; offers information and news about open sourcesoftware and provides an online community of open source software; collectively developed software isdistributed under open source licenses, such as the GNU General Public License and GNU Lesser GeneralPublic License, permitting access to the human-readable software source code. Acquired Amentra, Inc., andQumranet, Inc. in 2008.Operating systems and softwareRed Hat Linux operating system, JBoss Enterprise MiddlewareCore enterprise operating system platform, enterprise middleware platform and virtualization solutionsGeographic coverage (2009) Americas: 64.7%; EMEA: 21.7%; Asia Pacific: 13.6%Future plansFinancials (LTM)Focus on key go-to-market initiatives and achieve sustained earnings growth. In terms of technology strategy,it aims to promote Enterprise Linux 5.4 and virtualizationRevenue: 748.2 million USD, year-over-year change: 14.7%Operating profit: 109.1 million USD, year-over-year change: 32.2%Net income 87.3 million USD, year-over-year change: 10.8%23: AUTONOMY CORP (UK)Brief descriptionProducts soldKey brandsMarkets coveredDeveloper cum manufacturer that licenses, sells and supports software products; also offers operating systemsoftware, server application software, business and consumer applications software, software developmenttools and Internet- based solutions. Acquired Interwoven, Inc. in March 2009 and MicroLink, LLC in February2010.Intelligence data operating layer (IDOL) server, IDOL platform, and IDOL protect productsTeamSite, LiveSite, Optimost, MediaBin, MetaTagger, OpenDeploy, ControlHub, Qfiniti Enterprise, AutonomyExploreBusiness solutionsGeographic coverage (2009) Americas: 69.9%; Rest of world: 30.1%Future plansFinancials (LTM)Expand through acquisitionRevenue: 739.7 million USD, year-over-year change: 47.0%Operating profit: 277.4 million USD, year-over-year change: 49.1%Net income 191.6 million USD, year-over-year change: 45.4%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-viii

24: LAWSON SOFTWARE (US)Brief descriptionProducts soldKey brandsMarkets coveredProvider of enterprise software, services and support targeting customers in specific industries, including equipmentservice management and rental, fashion, food and beverage, healthcare, manufacturing and distribution, publicsector (US) and service industries, as well as the horizontal market for the strategic human capital managementproduct line; provides software in 29 languages to more than 4,500 customers in 41 countries.Software related to business processes, enterprise asset management, equipment service management,CRM, HCMBusiness Begins With E, Drill Around, Lawson Ezupdate, Lawson Software, Lawson Suiteexpress Self-EvidentApplications, The Information Office, WebtreeSoftware applications and industry-specific solutionsGeographic coverage (2009) Americas: 58.1%; EMEA: 37.8%; Asia Pacific: 4.1%Future plansFinancials (LTM)Focus on expanding product portfolio, leveraging favorable spending trends in HCM, extending its productsinto the cloud computing application areaRevenue: 713.5 million USD, year-over-year change: 11.1%Operating profit: 77.6 million USD, year-over-year change: 28.5%Net income: 26.0 million USD, year-over-year change: 38.0%25: QUEST SOFTWARE (US)Brief descriptionProducts soldKey brandsMarkets coveredDesigns, develops, markets, distributes and supports enterprise systems management software products.In addition to perpetual software licenses, it sells time-based software licenses wherein customers pay asingle fee for the right to use the software and receive maintenance for a defined period of time. AcquiredPacketTrap Networks, Inc. in December 2009.Big Brother, Deploydirector, Epurposing, Imagevue, IT Dad, Livereorg, NBSpool, Smartalarm, Spotlight, SQlabXpert, SQL Navigator, Vista PlusFoglight, InTrust, JProbe, MessageStats, SQL Navigator, Benchmark Factory, PowerGUISoftware solution for application management, database management, windows management andvirtualization managementGeographic coverage (2009) US: 62.5%; UK: 9.3%; Rest of world: 28.9%Future plansFinancials (LTM)Focus on Microsoft’s unified communications strategyRevenue: 695.2 million USD, year-over-year change: 5.5%Operating profit: 102.5 million USD, year-over-year change: 1.5%Net income: 70.4 million USD, year-over-year change: 3.4%26: ORACLE FINANCIAL (India)Brief descriptionProducts soldKey brandsMarkets coveredGeographic coverage (2009)Future plansFinancials (LTM)Provides comprehensive IT solutions to the financial services industry worldwide; provides transactionprocessing and accounting software for banks, investment managers and mutual funds.Product licenses and related activities (products); IT solutions and consulting services (services)Flexcube suite, Reveleus, MicroBankerFinancial servicesEurope: 34.2%; US: 29.1%; Asia Pacific: 19.9%; Middle East, India and Africa: 14.8%; Latin America andCaribbean: 2.1%Improve its KPO business, which is currently a small part of revenues, and increase margins of maintenanceservices in light of the tough business climateRevenue: 641.3 million USD, year-over-year change: 23.0%Operating profit: 151.3 million USD, year-over-year change: 74.1%Net income: 161.3 million USD, year-over-year change: 77.2%27: NEUSOFT CORP (China)Brief descriptionProducts soldKey brandsMarkets coveredProvides software products such as HR management systems, group financial management systems,learning management systems, security operations centers, office management systems, network applicationmonitoring and management systems, CRM systems; domestic and overseas markets.NATalentBase, MPC, SkillBase, NetEye, UniOffice, NetPatrolGeographic coverage (2008) China: 66.8%; Rest of world: 33.2%Future plansFinancials (LTM)Telecommunication, government, electric power, enterprise and electronic commerce, finance, education,traffic, medical equipment and health servicesFocus on outsourcing businessRevenue: 601.9 million USD, year-over-year change: 12.2%Operating profit: 69.8 million USD, year-over-year change: 16.8%Net income: 93.8 million USD, year-over-year change: 30.5%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-ix

28: UNIT 4 AGRESSO NV (The Netherlands)Brief descriptionProducts soldKey brandsMarkets coveredGeographic coverage (2009)Future plansFinancials (LTM)Provides integrated business management software and internet and security solutions; provides informationand communications technology products and services such as the design of e-commerce websites,implementation of security products (including anti-virus products, firewalls and e-mail content filters), ERPsolutions and outsourcing of IT network management.NANAFinancial administration applications, applications for logistics and wholesale distribution, software to supportproduction processes, project costing and invoicing systems, as well as software for information managementand reportingBenelux: 32.9%; UK: 18.8%; Sweden: 13.5%; Spain: 10.6%; Norway: 8.0%; Germany: 4.5%; Rest of world:11.7%Focus on pipeline development and organic license salesRevenue: 529.1 million USD, year-over-year change: 3.6%Operating profit: 52.4 million USD, year-over-year change: 14.7%Net income: 27.1 million USD, year-over-year change: 58.5%29: TOTVS SA (Brazil)Brief descriptionProducts soldKey brandsMarkets coveredDevelops and markets software solutions including ERP software, CRM software and SCM software. Offersperformance consulting; outsourcing of administrative processes, technology, and infrastructure; and distanceeducation.ERP software, CRM software, business intelligence software, SCM softwareLogocenter, Totvs, Microsiga, RM Sistemas, TOTVS BMINAGeographic coverage (2009) Brazil: 100%Future plansFinancials (LTM)Focus on diversification of industry verticals to balance out seasonal effects, increase penetration in BrazilRevenue: 501.3 million USD, year-over-year change: 45.7%Operating profit: 90.9 million USD, year-over-year change: 242.4%Net income: 61.0 million USD, year-over-year change: 149.5%30: PROGRESS SOFTWARE CORPORATION (US)Brief descriptionProducts soldKey brandsMarkets coveredSupplier of application infrastructure software and services for the development, deployment, integration andmanagement of business applications; develops, markets and distributes its products to businesses, industriesand governments worldwide. Acquired Savvion, Inc. in January 2010.Software solutions and servicesOpenEdge, Orbix, ObjectStore, Apama, Sonic, Progress Actional and FUSE products, DataDirect Connect,DataDirect Shadow, DataXtendApplication development platforms, enterprise business solutions, enterprise data solutionsGeographic coverage (2009) North America: 44.8%; EMEA: 42.1%; Latin America: 6.7%; Asia Pacific: 6.3%Future plansFinancials (LTM)Integrate disparate product lines through new product releases and following a go-to-market strategyRevenue: 500.8 million USD, year-over-year change: 4.2%Operating profit: 68.3 million USD, year-over-year change: 20.5%Net income: 28.1 million USD, year-over-year change: 29.2%31: INFORMATICA CORP (US)Brief descriptionProducts soldKey brandsMarkets coveredProvides data integration software and services allowing clients to access, integrate and trust all theirinformation assets; infrastructure software categories include data integration and cloud computing. Acquired29West Inc. in March 2010Enterprise data integration, data quality, master data management, B2B data exchange, applicationinformation lifecycle management, complex event processing, cloud data integrationInformatica, Openbridge, Powerbridge, Powercapture, Powerplug, SuperglueNAGeographic coverage (2009) North America: 63.0%; Europe: 27.4%; Rest of world: 9.6%Future plansFinancials (LTM)Market broadening—diversification and growth through acquisitionsRevenue: 500.7 million USD, year-over-year change: 9.9%Operating profit: 90.5 million USD, year-over-year change: 18.8%Net income: 64.2 million USD, year-over-year change: 14.7%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-x

32: COMPUTER ENGINEERING & CONSULTING (Japan)Brief descriptionProducts soldKey brandsMarkets coveredIndependent software development company which installs, manages and provides maintenance servicesfor network systems; operates in two business segments—software development and information systemservices.Software solutions and servicesNAGeographic coverage (2009) Japan: 100%Future plansFinancials (LTM)Software development and information system servicesNARevenue: 458.9 million USD, year-over-year change: 21.0%Operating profit: 6.6 million USD, year-over-year change: NMNet income: 14.9 million USD, year-over-year change: NM33: NSD CO LTD (Japan)Brief descriptionProducts soldKey brandsMarkets coveredIndependent software development company that offers operating systems, business software for the financialindustry and process control systems; provides system solution services and information processing services inaddition to operation and management of computer labs.Packaged software along with supportNASoftware developmentGeographic coverage (2009) Japan: 100%Future plansFinancials (LTM)NARevenue: 412.6 million USD, year-over-year change: 4.7%Operating profit: 65.5 million USD, year-over-year change: 13.8%Net income: 38.4 million USD, year-over-year change: 23.2%34: EPICOR SOFTWARE (US)Brief descriptionProducts soldKey brandsMarkets coveredDesigns, develops, markets and supports enterprise application software solutions and services primarily foruse by midsized companies and the divisions and subsidiaries of Global 1000 enterprises.Back office applications for production management, SCM, retail management and financial accounting, aswell as front office CRM and service management.NASolutions for the manufacturing, distribution, services, retail, and hospitality industries as well as a rangeof industries and vertical markets within these sectors, including financial services, professional services,industrial machinery, instrumentation/controls, medical device, consumer goods, automotive, aerospace,hotels, general merchandise, specialty retailGeographic coverage (2009) US: 67.4%; Europe: 20.1%; Oceania: 3.9%; Asia: 3.7%; Rest of world: 4.9%Future plansFinancials (LTM)To improve a back-end loaded revenue model in order to compete with larger and better funded ERP vendorsRevenue: 409.6 million USD, year-over-year change: 16.0%Operating profit: 19.6 million USD, year-over-year change: 28.8%Net income: 1.2 million USD, year-over-year change: 64.1%35: RIVERBED TECHNOLOGY, INC. (US)Brief descriptionProducts soldKey brandsMarkets coveredDevelops solutions for fundamental problems associated with IT performance across wide area networks; sellsits products and support to end users directly through its sales force and indirectly through channel partners,including value-added distributors, VARs, systems integrators and service providers. Acquired Mazu Networks,Inc. in 2009.Steelhead Mobile 3.0, Riverbed services platformRiverbedWAN optimization solutions and wide-area data service (WDS) solutionsGeographic coverage (2009) US: 56.1%; EMEA: 26.6%; Rest of world: 17.2%Future plansFinancials (LTM)Focus on new product developmentRevenue: 394.2 million USD, year-over-year change: 18.2%Operating profit: 10.5 million USD, year-over-year change: 54.7%Net income: 7.1 million USD, year-over-year change: 33.2%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-xi

36: JDA SOFTWARE GRP (US)Brief descriptionProducts soldKey brandsMarkets coveredProvides enterprise software solutions for manufacturers, wholesalers and distributors, and retailers aswell as government and aerospace defense contractors; provides pricing, yield management and demandmanagement software solutions for travel, transportation, hospitality and media organizations. Purchased a49.1% interest in Strategix Enterprise Technology GMBH and Strategix Enterprise Technology sp.z.o.o. in July2009; Acquired i2 Technologies, Inc. (i2) in January 2010.NAJDA Portfolio, Open Database Merchandising System, Retail IdeasRetail, manufacturing, and distribution; service industriesGeographic coverage (2009) Americas: 70.0%; Europe: 21.4%; Asia Pacific: 8.6%Future plansFinancials (LTM)To implement price optimization strategies in a recovering economy, improve end-to-end efficienciesRevenue: 385.8 million USD, year-over-year change: 1.2%Operating profit: 51.5 million USD, year-over-year change: 4.2%Net income: 26.3 million USD, year-over-year change: NM37: MICROSTRATEGY INC (US)Brief descriptionProducts soldKey brandsMarkets coveredWorldwide provider of business intelligence software; provides analytical performance to business users ina format that suits them—from high-level dashboards to custom reports and advanced analysis via e-mail,Web, fax, wireless and voice communication channels; web-based architecture provides reporting, security,performance and standards that are critical for web deployment.BI softwareDSS Agent, DSS Broadcaster Server, DSSServer, DSSWeb, Microstrategy, The Intelligence CompanyEnterprise solutionsGeographic coverage (2009) North America: 60.0%; EMEA: 31.2%; Rest of world: 8.9%Future plansFinancials (LTM)Focus on development of new productsRevenue: 377.8 million USD, year-over-year change: 4.8%Operating profit: 86.3 million USD, year-over-year change: 27.3%Net income: 74.8 million USD, year-over-year change: 78.9%38: BLACKBOARD INC. (US)Brief descriptionProducts soldKey brandsMarkets coveredProvides enterprise software applications and related services to the education industry. Acquired AngelLearning, Inc and Terriblyclever Design, LLC in 2009. Acquired Saf-T-Net, Inc., which offers AlertNow, amessaging and mass notification solution, in 2010.Web-based teaching and learning platforms, on- and off-campus commerce management, online e-commerceand payment management, meal plan administration, vending and laundry services, and communications andnotification system solutionsBlackboard Learn, Blackboard Transact, Blackboard Connect, Blackboard MobileSoftware solutions for the educational marketGeographic coverage (2009) US: 81.6%; Rest of world: 18.4%Future plansFinancials (LTM)Promote acquisition based growth strategyRevenue: 377.0 million USD, year-over-year change: 20.8%Operating profit: 85.6 million USD, year-over-year change: NMNet income: 7.9 million USD, year-over-year change: NM39: TEMENOS GROUP AG (Switzerland)Brief descriptionProducts soldKey brandsMarkets coveredProvider of banking software which covers financial functions such as deposit-taking, lending and Internetbanking; offers banks with an overview of clients across the enterprise, enabling them to maximize returnswhile streamlining costs.Temenos T24 (application providing server support to a high number of users), Temenos Corebanking (scalablemainframe retail banking application serving high volume banks and bank outsourcing centers)Temenos T24, Temenos CorebankingBanking software solution systems to the retail, corporate and correspondent, universal, private, Islamic aswell as microfinance and community banking marketsGeographic coverage (2008) EMEA: 63.5%; Americas: 18.5%; Asia: 18.1%Future plansFinancials (LTM)Focus on margin improvement and cash conversionRevenue: 370.3 million USD, year-over-year change: 9.9%Operating profit: 75.7 million USD, year-over-year change: NMNet income: 68.6 million USD, year-over-year change: 6.0%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-xii

40: CEGID GROUP SA (France)Brief descriptionProducts soldKey brandsMarkets coveredDevelops business management software packages and offers solutions and services to certified publicaccountants, retail businesses and the industrial sector as well as fashion, hospitality, services, trade,construction and transport industries; operates through several subsidiaries including, among others, CegidSA, Quadratus and Civitas.Generic business software, business-specific solutions, finance and accounting solutions, payroll/humanresources management solutions, business management solutions, business intelligence solutions, smallbusiness solutions, e-commerce solutionsNAGeographic coverage (2009) France: 100.0%Future plansFinancials (LTM)Enterprise management software solutions for companies and certified accounting firmsFocus on retail businesses, which are defensive in the recessionary environmentRevenue: 346.7 million USD, year-over-year change: NMOperating profit: 37.0 million USD, year-over-year change: NMNet income: 25.0 million USD, year-over-year change: 3.0%41: INDUSTRIAL AND FINANCIAL SYSTEMS - IFS AB (Sweden)Brief descriptionProducts soldKey brandsMarkets coveredProvides component-based business software; principal offering, IFS Applications, is an ERP solution whichsupports the business processes of organizations of various sizes; provides extended ERP functionality,including CRM, SCM, PLM, corporate performance management (CPM), enterprise asset management (EAM)as well as maintenance, repair and overhaul (MRO) capabilities. Company operates in approximately 50countries through subsidiaries, joint ventures and partners.IFS ApplicationsNAERP solutions focusing on aerospace and defense; automotive; manufacturing; process industries;construction, contracting and service management; retail and wholesale distribution; and utilities andtelecommunicationsGeographic coverage (2009) Europe: 76.1%; Americas: 14.5%; Rest of world: 9.4%Future plansFinancials (LTM)Focus on CRM and SCM applicationsRevenue: 342.7 million USD, year-over-year change: 3.5%Operating profit: 26.0 million USD, year-over-year change: 28.6%Net income: 16.2 million USD, year-over-year change: 29.5%42: ARIBA INC. (US)Brief descriptionProducts soldKey brandsMarkets coveredProvides on-demand spend management solutions; solutions combine on-demand software and services tohelp companies automate the procurement process.Spend management solutionsNANAGeographic coverage (2009) North America: 67.5%; EMEA: 25.8%; Asia Pacific: 6.71%Future plansFinancials (LTM)Focus on strategic acquisitions in the network areaRevenue: 338.6 million USD, year-over-year change: 3.3%Operating profit: 17.8 million USD, year-over-year change: NMNet income: 7.0 million USD, year-over-year change: NM43: MICRO FOCUS INTERNATIONAL PLC (UK)Brief descriptionProducts soldKey brandsMarkets coveredProvides enterprise application management solutions and (through its subsidiaries) develops, sells andsupports software. Acquired Relativity Technologies, Inc. in January 2009; application testing/automatedsoftware quality business of Compuware Corporation (together being the Compuware Testing and ASQBusiness) in June 2009; and Borland Software Corporation in July 2009.Application portfolio management (APM), application modernization, application development, applicationtesting and software quality, application life cycle managementNAEnterprise application software solutionsGeographic coverage (2009) North America: 45.2%; EMEA: 41.2%; Rest of world: 13.7%Future plansFinancials (LTM)Streamline operations of the recently acquired companiesRevenue: 337.6 million USD, year-over-year change: 20.4%Operating profit: 117.9 million USD, year-over-year change: 26.3%Net income: 62.8 million USD, year-over-year change: 19.1%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-xiii

44: UFIDA SOFTWARE COMPANY LIMITED (China)Brief descriptionProducts soldKey brandsMarkets coveredPrincipally engaged in the development and distribution of ERP, HRM, office automation, CRM, PLM, productdata management and collaborative product development software as well as unified application platform andenterprise asset management products; also provides SaaS and technology training services in addition todistribution of software related products.EPR solutionsNANAGeographic coverage (2009) China: 100.0%Future plansFinancials (LTM)Expansion through M&A and better product mix along with a sound marketing modelRevenue: 334.3 million USD, year-over-year change: 36.1%Operating profit: 26.6 million USD, year-over-year change: 58.0%Net income: 86.9 million USD, year-over-year change: 51.7%45: REALDOLMEN NV (Belgium)Brief descriptionProducts soldKey brandsMarkets coveredICT company whose portfolio includes business intelligence, CRM and e-business applications as well asIT support such as the migration and integration of system applications; provides computer aided design,geographical information systems, ERP and SCM applications and other related products and services.NANASolutions for private banking, retail, wholesale, telecommunications, logistics, and distributionGeographic coverage (2008) Belgium: 46.8%; France: 37.9%; Luxembourg: 15.3%Future plansFinancials (LTM)Focus on CRMRevenue: 333.2 million USD, year-over-year change: NMOperating profit: 16.4 million USD, year-over-year change: NMNet income: 19.2 million USD, year-over-year change: NM46: SHANGHAI BAOSIGHT SOFTWARE COMPANY LIMITED (China)Brief descriptionProducts soldKey brandsMarkets coveredPrincipally engaged in software engineering, software development, outsourcing services, system integration,intelligent traffic systems and engineering designing; provides enterprise equipment management systems,solutions in mineral industry, software management solutions for corporation management and control,purchase supply chain management system, enterprise construction project management informationsolutions, comprehensive supervision and control system of metro and pumping stations, and automationsupervisory systems.Baosight manufacturing execution system (MES), iQualityView, eCopNASoftware solutions in modern service and mineral industryGeographic coverage (2009) China: 97.9%; Rest of world: 2.1%Future plansFinancials (LTM)Focus on sales and marketing efforts to increase revenues by capitalizing on growing demand for softwaresolutionsRevenue: 330.1 million USD, year-over-year change: 6.0%Operating profit: 26.0 million USD, year-over-year change: 0.1%Net income: 29.5 million USD, year-over-year change: 11.3%47: EXACT HOLDING NV (The Netherlands)Brief descriptionProducts soldKey brandsMarkets coveredIntegrated business software solutions consist of traditional ERP and related software solutions such as HRM,CRM, corporate performance management, project management and electronic workflow; activity is dividedinto three categories: software licenses, services and maintenance.ERP and eBusiness solutionsNASMBsGeographic coverage (2008) The Netherlands: 42.3%; North America: 25.8%; Rest of world: 31.9%Future plansFinancials (LTM)To avail of synergy benefits from the recent acquisition of LongviewRevenue: 324.2 million USD, year-over-year change: 10.9%Operating profit: 63.8 million USD, year-over-year change: NMNet income: 46.9 million USD, year-over-year change: 7.7%IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-xiv

48: ADVENT SOFTWARE, INC. (US)Brief descriptionProducts soldKey brandsMarkets coveredGeographic coverage (2009) US: 87.4%; Rest of world: 12.6%Future plansFinancials (LTM)Offers software and services that automate workflows and data across investment management organizationsas well as information flows between an investment management organization and external parties.Completed the sale of subsidiary, MicroEdge, Inc., to Vista Equity Partners in October 2009. In March 2010,the company’s wholly owned subsidiary, Advent Norway AS, acquired Goya AS.Software products, hosting services, data interfaces, and related maintenance and servicesAdvent Portfolio Exchange (APX), Advent Warehouse, AXYS, Geneva, Moxy, Rex, WealthLine, Adventcustodial data, Advent corporate actions, Advent wealth service, and Advent market dataSoftware solutions to investment management institutions and service providersStrategy to improve the sales pipeline and increase efficiency of capital expenditureRevenue: 272.4 million USD, year-over-year change: 9.1%Operating profit: 30.9 million USD, year-over-year change: 54.8%Net income: 36.9 million USD, year-over-year change: 95.2%49: IBS AB (Sweden)Brief descriptionProducts soldKey brandsMarkets coveredProvides business systems and supply chain management solutions including software solutions withinbusiness intelligence, CRM, distribution, enterprise application integration, ERP, financials, manufacturing,procurement, supply chain management and warehouse management; also provides services withinconsulting, financing, hardware, implementation and methodology.Supply chain management and industry-specific software solutions and other servicesNADistribution, demand-driven manufacturing, financial, and business intelligenceGeographic coverage (2009) Rest of Europe: 44.9%; Nordic Region: 34.8%; Americas: 11.8%; Asia Pacific: 8.4%Future plansFinancials (LTM)Focus on turnaround cum restructuring along with margin improvementRevenue: 262.1 million USD, year-over-year change: 10.6%Operating profit: 6.7 million USD, year-over-year change: 245.2%Net income: 38.4 million USD, year-over-year change: 58.2%50: CONCUR TECHNOLOGIES, INC (US)Brief descriptionProducts soldKey brandsMarkets coveredGlobal provider of an on-demand employee spend management solutions that unite online travel procurementwith automated expense reporting, streamline corporate event management and optimize process ofmanaging vendor payments, employee check requests and direct reimbursements; solutions and servicesare sold primarily on a subscription basis and delivered on-demand. Acquired Etap-On-Line, a provider ofbusiness travel and expense management solutions, in August 2009.NANAEmployee spend management solutionsGeographic coverage (2009) US: 89.9%; Europe: 5.9%; Rest of world: 4.3%Future plansFinancials (LTM)Focus on partnership with American Express and maintain status as SaaS leadersRevenue: 256.7 million USD, year-over-year change: 14.9%Operating profit: 44.6 million USD, year-over-year change: 47.1%Net income: 26.4 million USD, year-over-year change: 49.4%Source: Bloomberg, Capital IQ, Factiva, companies’ websites, and presentationsIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-xv

Thumbnail summaries of software and related activities in various regions1: NORTH AMERICABrief description Largest contributor to IT spending with 38.1% share in 2009IT Spending in 2009 1Number of listed softwarecompaniesTop 5 domestic companiesbased on revenuesCurrent scenario andoutlook$576 billion USD247Microsoft Corp – $58.7 billion USDOracle Corp – $24.2 billion USDCa Inc – $4.3 billion USDIntuit Inc. – $3.2 billion USDAdobe Sys Inc – $3.0 billion USD· Global economic problems have impacted IT budgets; however, the IT industry has not seen the dramaticreductions that were seen during the dot.com bust.· Spending was down to the extent of 9% on a Y-o-Y basis in 2009.· Going forward, the gradual economic recovery will enable many US organizations to relieve some of the pent-updemand for system and network upgrades following last year’s spending cuts. But spending will continue to becautious and, in contrast to emerging markets, the SMB sector will struggle to fund new IT initiatives.· In Canada, a subdued market is forecast to recover from the decline of 2009 and produce growth of 6-8% in ITspending this year. 22: WESTERN AND CENTRAL EUROPEBrief descriptionIT Spending in 2009Number of listed softwarecompaniesTop 5 domestic companiesbased on revenuesCurrent scenario andoutlookSecond largest contributor to IT spending at 27.1 percent$410 billion USD216SAP AG – $14.9 billion USDSage Group – $2.2 billion USDMisys PLC Inc – $1.2 billion USDSoftware AG – $1.2 billion USDAutonomy Corp. – $740 million USD· After Latin America, Western Europe was the worst affected by the economic crisis, IT spending declining 12.1% in2009.· France and Italy have seen declines, and growth in the UK and Germany has been more or less flat.· Following the worst-ever decline in 2009 on a constant currency basis, IT spending in Western Europe is forecastto be effectively flat in 2010. A few market segments are expected to return to positive growth but market sentimentacross the region remains weak.3: ASIA PACIFICBrief descriptionIT Spending in 2009Number of listed softwarecompaniesTop 5 domestic companiesbased on revenuesCurrent scenario andoutlookOne of the high growth region in IT spending$389 billion USD374IT Holdings Corp – $3.4 billion USDNihon Unisys – $3.0 billion USDFuji Soft Inc – $1.6 billion USDSumisho Computer – $1.4 billion USDOracle Corp. Japan – $1.2 billion USD· The region is expected to experience 6-8% growth in IT spending in constant currency terms, following a 3% declinein 2009. However, China and India are both expected to witness double-digit growth this year. Hardware spendingwould experience solid gains this year, driven by pent-up demand and new infrastructure deployment. Following adecline of 8% last year, no IT spending growth is forecast for Japan this year.· The strongest growth in software spending will be seen in four vertical industries—manufacturing, financial services,communications, and government. These four verticals should account for 60% of total software spending in AsiaPacific.1 Forrester Research2 Forrester ResearchIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-xvi

4: EASTERN EUROPE, THE MIDDLE EAST AND AFRICABrief descriptionIT Spending in 2009Number of listed softwarecompaniesTop 5 domestic companiesbased on revenuesCurrent scenario andoutlookEmerging region$68 billion USD35Check Point Software – $924 million USDUCS Group Ltd – $168 million USDRetalix Ltd – $158 million USDOne Software Tec – $131 million USDVizrt Ltd – $106 million USD· The Middle East and North Africa (Mena) enterprise application software (EAS) market largely escaped the worsteffects of the global economic crisis; however, the crisis has a profound impact on the market’s figures for 2009.Enterprise resource management (ERM) remains the key focus of EAS investment, CRM and SCM. Saudi Arabia isthe largest market in the Middle East for enterprise application (EA), offering vast potential for EA implementation.· In Central and Eastern Europe, the 20% spending crash of 2009 is likely to be followed by 9% growth in 2010. ITspending in the Middle East and Africa is also expected to return to 12% at constant currency this year after a 2.5%decline last year (according to IDC’s Worldwide Black Book).· The midmarket remains a major growth avenue for enterprise application software, especially in the emergingmarkets. Beyond the US and Western European markets, the majority of companies would be SMBs.5: LATIN AMERICABrief descriptionIT Spending in 2009 1Number of listed softwarecompaniesTop 5 domestic companybased on revenuesCurrent scenario andoutlookContributes 4.6% to global spending$70 billion USD3TOTVS SA – $501 million USD· Latin America was hit the hardest in 2009 with a Y-o-Y decline of 17.1 percent.· IT spending in Latin America should be up by 5-7% in 2010. Overall spending is expected to gradually accelerate inline with the recovery in business and consumer confidence.· Increasing market maturity in some sectors will contribute to price competition as some buyers gravitate towardslow cost solutions.· The key market of Brazil is likely to return to a more robust level of growth by 2011.6: BRICBrief descriptionIT Spending in 2009Number of listed softwarecompaniesTop 5 domestic companiesbased on revenuesCurrent scenario andoutlookEmerging economies with high growth prospectsNA132TOTVS SA – $501 million USDBeijing Teamsu – $429 million USDUFIDA Software – $334 million USDShanghai Baosight – $330 million USDChinasoft International – $142 million USD· Brazil, Russia, India, and China (BRIC) region have maintained their momentum, with their growth outpacing NorthAmerica and Western Europe. Russia lags with weaker demand than its counterparts. 2· China is the fastest growing enterprise software market and is predicted to achieve a CAGR of 14.6% from 2008 to2013. 3· Increasing focus on SMBs has translated into ERP vendors concentrating on more verticals such as insurance,power, and food and beverage in this region.· Spending across the infrastructure and application software segments is expected to increase in 2010;infrastructure software is estimated to be double that of application software through 2013, with priority spending inERP, office suites, operating systems, and database management systems.Source: Bloomberg, Forrester, Gartner, Factiva, companies’ websites and presentations1 Forrester Research2 The Global Enterprise Applications Software Market Forecast Update, 2009-2010 Monday, December 21, 20093 http://www.zdnetasia.com/china-fastest-growing-enterprise-software-market-62061982.htm\IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix A-xvii

Appendix B: Summary of M&A Deals 1 in the Software SectorThe software sector saw 1,131 deals valued at $27.4 billion USD in LTM ending 1Q 2010, witnessing a decline of 25.4 percent in terms of deal value($36.8 billion USD during the previous period with 2,417 deals). Dollar volume in this period included one major deal (Sun Microsystems/Oracle), whichrepresented $8.3 billion USD or nearly 28.1 percent of total dollar volume in the period. Excluding this deal, the dollar volume would have been down48.0 percent. During the previous period, the largest deal was the acquisition of NDS Group by Permira Advisers for $1.7 billion USD.Particulars LTM ending 1Q 2009 LTM ending 1Q 2010Total number of deals 2 2,417 1,131Deals with available transaction value 878 403Total transaction value 36,752 (USD mn) $27,415 (USD mn)Largest dealTop 5 deals as a %of total deal valueAcquisition of NDS Group by PermiraAdvisers for $1.7 billion USDAcquisition of Sun Microsystems byOracle for $8.3 billion USD20.1% 46.7%In terms of business segment, Internet Software & Services accounts for 30 percent, followed by ComputerHardware & Applications, which formed nearly 28 percent of total value.Top Five Segments No. of transactions Value (USD mn)Computer Hardware & Applications 1 8,341.5Internet Software & Services 18 7583.9Application Software 838 5,412.3IT Consulting and Other Services 10 4,218.6Systems Software 199 1,464.3In terms of country, the US saw the highest transaction value of $12.34 billion USD with a total of 501 transactionsin this twelve month period while Japan came in second with a value of $9.12 billion USD through 15 transactions.Among regions, North America was the clear leader at $12.54 billion USD.Top Five Countries No. of transactions Value (USD mn)US 501 12,341.8Japan 15 9,122.6UK 78 1,386.3China 50 1,373.8Germany 47 963.6Top Five Regions No. of transactions Value (USD mn)North America 553 12,537.9Asia 128 10,755.2Europe 356 3,620.1South America 19 193.5Middle East 14 169.01 Only mergers and acquisitions have been considered.2 Source: Capital IQIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix B-i

Summary of Transactions in the Software Sector in LTM ending 1Q 2010, by CountryCountryTransactionsin 2009Total TransactionValue (USD mn)Average EV/Revenue (x)Average EV/EBITDA (x)Average EV/EBIT (x)United States 503 14,585.4 2.2 20.4 26.4Japan 15 9,122.6 0.9 8.2 30.1United Kingdom 78 1,386.3 4.0 9.9 12.0China 50 1,373.8 4.7 13.4 9.4Germany 47 963.6 2.7 21.5 27.0Sweden 20 246.1 2.7 6.9 8.1Czech Republic 1 200.0 5.7 - -Canada 52 196.2 1.4 5.6 21.2Israel 12 169.0 1.0 12.5 24.2India 25 168.9 1.2 - -France 65 155.9 1.1 6.0 7.5Chile 4 105.0 0.6 6.8 12.8Italy 19 99.3 0.8 3.9 9.7Australia 29 93.9 0.8 - -Switzerland 16 83.3 1.8 10.2 6.8Belgium 7 74.7 1.2 12.1 16.3Finland 14 73.8 0.7 8.6 -Norway 11 71.6 0.7 5.6 6.6Spain 11 70.7 2.1 - -Brazil 10 62.6 1.1 - -Netherlands 15 59.1 4.9 - -Austria 13 39.8 1.7 - -Ireland 10 37.5 - - -South Africa 15 36.3 0.6 - -Cayman Islands 1 30.4 - - -Sri Lanka 1 29.7 0.9 - -Hong Kong 5 23.9 - - -South Korea 6 20.6 32.1 15.7 17.1Denmark 9 15.3 69.8 - -CountryHungary 3 11.9 3.0 - -Poland 1 9.3 - - -British VirginIslands1 8.8 - - -Greece 3 7.8 10.2 24.5 26.6Thailand 7 7.2 2.5 116.0 -Malaysia 11 4.8 - - -New Zealand 6 4.4 0.3 - -Portugal 1 3.7 3.7 - -Taiwan 1 2.6 - - -Romania 1 1.7 - - -Turkey 4 1.1 - - -Singapore 3 1.0 0.0 - -Indonesia 1 0.2 - - -Russia 3 - - - -Argentina 2 - - - -Croatia 2 - - - -Estonia 2 - - - -Philippines 2 - - - -Cape Verde 1 - - - -Colombia 1 - - - -Costa Rica 1 - - - -Egypt 1 - - - -Liechtenstein 1 - - - -Malta 1 - - - -Slovakia 1 - - - -Ukraine 1 - - - -United ArabEmiratesTransactionsin 2009Total TransactionValue (USD mn)Average EV/Revenue (x)Average EV/EBITDA (x)Average EV/EBIT (x)1 - - - -Uruguay 1 - - - -TOTAL 1,128 29,660 2.8 17.1 19.2IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix B-ii

Top 15 transactions in the Software Sector in LTM1: Oracle/Sun MicroosystemsAnnounced/Initial Filing Date: 04/19/2009 COMMENTS:Target/Issuer: Sun Microsystems Inc.The acquisition enables Oracle to better competeTotal Transaction Value ($mm USD) 8,341.51against IBM and HP as it is now both a hardwareBuyers/Investors: Oracle Corp. (NasdaqGS:ORCL)vendor and operating system supplier whilePercent Sought (%): 100.0controlling Java and Solaris.Implied Enterprise Value ($mm USD): 5,638.51In the first full year, management believes thisacquisition will raise earnings by at least 15 cents andImplied Enterprise Value/Revenues: 0.45operating profit by over $1.5 USD billionImplied Enterprise Value/EBITDA: 8.21Implied Enterprise Value/EBIT: -Headquarters-Country:Primary Industry:JapanComputer Hardware2: Adobe/OmnitureAnnounced/Initial Filing Date: 09/15/2009 COMMENTS:Target/Issuer: Omniture Inc. (Nasdaq: OMTR)Adobe will combine its content creation tools andTotal Transaction Value ($mm USD) 1,675.72ubiquitous clients with Omniture’s web analytics,Buyers/Investors: Adobe Systems Inc. (NasdaqGS:ADBE)measurement, and optimization technologies, thuschanging the e-commerce landscape across all digitalPercent Sought (%): 100.0content, platforms, and devices.Implied Enterprise Value ($mm USD): 5,638.51The new entity would help marketers in realizing theImplied Enterprise Value/Revenues: 0.45full value of their digital assets.Implied Enterprise Value/EBITDA: 8.21Implied Enterprise Value/EBIT: -Headquarters-Country:Primary Industry:United StatesInternet Software and Services3: IBM/SPSSAnnounced/Initial Filing Date: 07/27/2009 COMMENTS:Target/Issuer: SPSS Inc.Total Transaction Value ($mm USD) 1,121.61Buyers/Investors:International Business Machines Corp.(NYSE:IBM)Percent Sought (%): 100.0Implied Enterprise Value ($mm USD): 783.73Implied Enterprise Value/Revenues: 2.7Implied Enterprise Value/EBITDA: 9.96Implied Enterprise Value/EBIT: 13.19Headquarters-Country:Primary Industry:United StatesIT Consulting and Other ServicesThis deal is expected to expand IBM’s informationon-demandsoftware portfolio and business analyticscapabilities.IBM is expected to build a compelling joint portfolioonly when the deal closes which is after a year. Thiswill give its competitors time to devise their ownstrategies to compete with IBM.4: Intel/Wind River SystemsAnnounced/Initial Filing Date: 06/04/2009 COMMENTS:Target/Issuer: Wind River Systems, Inc.Intel will gain stronger software capabilities inTotal Transaction Value ($mm USD) 884.39embedded systems and mobile devices includingBuyers/Investors: Intel Corporation (NasdaqGS:INTC)smartphones, mobile Internet devices, and otherconsumer electronics devices and networkingPercent Sought (%): 100.0equipment as well as devices in the aerospace,Implied Enterprise Value ($mm USD): 793.4defense and energy sectors. Moreover, Wind RiverImplied Enterprise Value/Revenues: 2.24has thousands of customers in a diverse range ofImplied Enterprise Value/EBITDA: 20.84markets, strengthening Intel’s market reach.Implied Enterprise Value/EBIT: 32.19Headquarters-Country:Primary Industry:United StatesInternet Software and ServicesIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix B-iii

5: Autonomy/Interwoven Inc.Announced/Initial Filing Date: 01/22/2009 COMMENTS:Target/Issuer: Interwoven Inc.Autonomy’s clientele includes over 1,200 of the topTotal Transaction Value ($mm USD) 767.57law firms and 11 of the top 30 accounting firms. TheBuyers/Investors: Autonomy Corp. plc (LSE:AU.)acquisition increase Autonomy’s customer base toover 20,000 and provides cross-selling opportunities.Percent Sought (%): 100.0Autonomy expects to save around $40 USD million inImplied Enterprise Value ($mm USD): 1,558.84the first year as a result of these synergies.Implied Enterprise Value/Revenues: 4.65Implied Enterprise Value/EBITDA: 45.38Implied Enterprise Value/EBIT: -Headquarters-Country:Primary Industry:United StatesInternet Software and Services6: JDA Software/12 TechnologiesAnnounced/Initial Filing Date: 11/04/2009 COMMENTS:Target/Issuer: I2 Technologies, Inc. (NasdaqGS: ITWO)The acquisition of i2 Technologies, which has moreTotal Transaction Value ($mm USD) 746.94than 6,000 customers, will help increase JDA’s marketBuyers/Investors: JDA Software Group Inc. (NasdaqGS:JDAS) to include discrete manufacturing and transportation.Percent Sought (%): 100.0The combined organization reported annual revenuesImplied Enterprise Value ($mm USD): 561.43of roughly $617 USD million and will have betterImplied Enterprise Value/Revenues: 2.42operating leverage. The operating synergies wouldproduce annual cost savings of approximately $20Implied Enterprise Value/EBITDA: 11.16USD million.Implied Enterprise Value/EBIT: 11.86Headquarters-Country:Primary Industry:United StatesIT Consulting and Other Services7: AsiaInfo/Linkage TechnologiesAnnounced/Initial Filing Date: 12/04/2009 COMMENTS:Target/Issuer: Linkage Technologies International Holdings Ltd.The combined company will be called AsiaInfo-Total Transaction Value ($mm USD) 731.89Linkage Inc. when the transaction is completed. TheBuyers/Investors: AsiaInfo Holdings Inc. (NasdaqGS:ASIA) new entity will become the world’s second-largestPercent Sought (%): 100.0telecom software provider and have over 8,000Implied Enterprise Value ($mm USD): 731.89employees. The combined company will also haveImplied Enterprise Value/Revenues: -34 patents and an additional 27 patents pendingapproval in China and the US.Implied Enterprise Value/EBITDA: -Implied Enterprise Value/EBIT: -Headquarters-Country:Primary Industry:ChinaInternet Software and Services8: Software AG/IDS ScheerAnnounced/Initial Filing Date: 07/13/2009 COMMENTS:Target/Issuer: IDS Scheer AG (XTRA:IDS)The acquisition will increase the combined entity’sTotal Transaction Value ($mm USD) 719.92competitive position, especially in infrastructureBuyers/Investors: Software AG (XTRA:SOW)software and business process management. Thenew entity is expected to be accretive to SoftwarePercent Sought (%): 100.0AG’s earnings per share from the first year itself asImplied Enterprise Value ($mm USD): 582.34and increase the customer base to 7,500.Implied Enterprise Value/Revenues: 2.24Implied Enterprise Value/EBITDA: 13.13Implied Enterprise Value/EBIT: 18.5Headquarters-Country:Primary Industry:GermanyIT Consulting and Other ServicesIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix B-iv

9: VMware/SpringSourceAnnounced/Initial Filing Date: 08/07/2009 COMMENTS:Target/Issuer: SpringSource, Inc.This combination will help simplify enterprise IT andTotal Transaction Value ($mm USD) 446.0make customer environments more efficient, scalableBuyers/Investors: VMware, Inc. (NYSE:VMW)and easier to manage. This new entity will continuefocusing on providing developers and customers thePercent Sought (%): 100.0best experience for developing enterprise and webImplied Enterprise Value ($mm USD): 446.0applications on all platforms.Implied Enterprise Value/Revenues: -Implied Enterprise Value/EBITDA: -Implied Enterprise Value/EBIT: -Headquarters-Country:Primary Industry:United StatesInternet Software and Services10: Electronic Arts Nederland/PlayfishAnnounced/Initial Filing Date: 11/09/2009 COMMENTS:Target/Issuer: Playfish LimitedThe social gaming industry is expected to undergoTotal Transaction Value ($mm USD) 391.26significant consolidation. Electronic Arts, a traditionalBuyers/Investors: Electronic Arts Nederland B.V.gaming company, can now enter the social gamingPercent Sought (%): 100.0arena through the acquisition of Playfish, whichImplied Enterprise Value ($mm USD): 391.26develops and publishes video games for socialImplied Enterprise Value/Revenues: -networks. Playfish designs games for Facebook,MySpace, Bebo, Yahoo! and iPhone.Implied Enterprise Value/EBITDA: -Implied Enterprise Value/EBIT: -Headquarters-Country:Primary Industry:United KingdomInternet Software and Services11: Symphony Technology/MSC SoftwareAnnounced/Initial Filing Date: 07/07/2009 COMMENTS:Target/Issuer: MSC Software CorporationThis transaction will allow Symphony Technology toTotal Transaction Value ($mm USD) 386.68continue focusing on delivering leading simulationBuyers/Investors: Symphony Technology Group; Elliott Group solutions. Symphony Technology now has access toPercent Sought (%): 100.0MSC’s market leading simulation solutions.Implied Enterprise Value ($mm USD): 238.44MSC is also known for its continuous innovation in thedesign simulation space across industries.Implied Enterprise Value/Revenues: 1.02Implied Enterprise Value/EBITDA: 12.03Implied Enterprise Value/EBIT: 20.67Headquarters-Country:Primary Industry:United StatesInternet Software and Services12: CA, Inc./NimsoftAnnounced/Initial Filing Date: 03/10/2010 COMMENTS:Target/Issuer: Nimsoft, Inc.CA, traditionally known for managing largeTotal Transaction Value ($mm USD) 350.0mainframe-based systems, will gain access toBuyers/Investors: CA, Inc. (NasdaqGS:CA)SMBs through the acquisition. The transaction willPercent Sought (%): 100.0also extend CA’s leadership position in the serviceImplied Enterprise Value ($mm USD): 350.0assurance market by helping it offer one of theImplied Enterprise Value/Revenues: -most comprehensive suites in IT monitoring andmanagement solutions.Implied Enterprise Value/EBITDA: -Implied Enterprise Value/EBIT: -Headquarters-Country:Primary Industry:United StatesIT Consulting and Other ServicesIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix B-v

13: Raytheon Network Centric Systems/BBN TechnologiesAnnounced/Initial Filing Date: 09/01/2009 COMMENTS:Target/Issuer: BBN Technologies Corp.This acquisition is expected to strengthen Raytheon’sTotal Transaction Value ($mm USD) 350.0position in networking, communications and videoBuyers/Investors: Raytheon’s Network Centric Systemssurveillance and advanced sensing applications.Percent Sought (%): 100.0Implied Enterprise Value ($mm USD): 350.0Implied Enterprise Value/Revenues: -Implied Enterprise Value/EBITDA: -Implied Enterprise Value/EBIT: -Headquarters-Country:Primary Industry:United StatesInternet Software and Services14: IT Holding Corp./Sorun Corp.Announced/Initial Filing Date: 11/10/2009 COMMENTS:Target/Issuer: Sorun Corp.This merger will benefit both ITHD and Sorun as theTotal Transaction Value ($mm USD) 260.9independent system integrators will help diversify risksBuyers/Investors: IT Holding Corp. (TSE:3626)and stabilize performance under certain businessPercent Sought (%): 100.0environments. In the medium term, the combinationImplied Enterprise Value ($mm USD): 155.4is expected to generate synergies through sharing ofImplied Enterprise Value/Revenues: 0.262technologies and know-how, economies of scale andincreased corporate value.Implied Enterprise Value/EBITDA: 4.11Implied Enterprise Value/EBIT: 5.46Headquarters-Country:Primary Industry:JapanIT Consulting and Other Services15: CPP Investment Board and KKR/Aricent, Inc.Announced/Initial Filing Date: 09/16/2009 COMMENTS:Target/Issuer: Aricent, Inc.Kohlberg Kravis Roberts & Co. (KKR) has increasedTotal Transaction Value ($mm USD) 255.0its investment in Aricent. The latter reported itsBuyers/Investors: CPP Investment Board and KKRhighest annual revenue so far and continues to growPercent Sought (%): 15.0its customer base.Implied Enterprise Value ($mm USD): 1700.0Implied Enterprise Value/Revenues: -Implied Enterprise Value/EBITDA: -Implied Enterprise Value/EBIT: -Headquarters-Country:Primary Industry:United StatesInternet Software and ServicesSource: Capital IQOnly Mergers and Acquistions have been consideredAppendix C: Growth Drivers of Computing andInternet Software sector (Enterprise Software Industry)Growth Drivers of the Global Software MarketStabilization of the global software market started during Q409with recovery and single-digit growth anticipated through 2010 withaccelerating growth in 2011. This recovery has led to changes in marketconditions and business models. Vendors that adapt to these changesare expected to drive growth in the coming years.• Horizontal-to-vertical solutions: In an increasingly competitivesoftware environment, vertically aligned and geographically spacedout specialized vendors are expected to drive demand to create acompetitive edge over local players.• Licensing and alternative delivery models: Subscription basedmodels are expected to drive demand in the future compared withperpetual license based models. Alternative licensing models includingSaaS, cloud-based services, and term contracts are expected to becatalysts to growth in the software market.Growth Drivers of the Global Computing andInternet Software Market• SMBs to support the software market: The bright spot in therecovering economy is SMBs. As the economy emerges from therecession, SMBs will look for small-business software to automateIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix C-i

their operations and scale up growth. In addition, large softwarevendors such as SAP and Oracle will continue to focus on the SMBmarket to reinvigorate their revenue growth in software license sales.· While SMBs are likely to lead the charge in small-business softwareinvestments, it may be difficult for them to make the necessaryinvestments. Considering that the tight credit markets will take timeto thaw entirely, many SMBs are looking at SaaS based services tohelp them minimize upfront capital IT costs.• Technology innovation adds flexibility and usability: The pace oftechnology innovation has continued unabated during the recession.Better client usability, faster and more accessible analytics, andprocess/configuration flexibility are becoming more evident in thelatest and future releases (e.g. Epicor 9, Oracle Fusion applications)of software products that are expected to be the growth catalyst in2010 and beyond.Major Themes in the Enterprise Software Market 1The year 2009 closed with depressed IT spending levels, revenuecontraction among many ERP vendors, and uncertainty about the future.The industry is expected to experience the following trends in 2010.• Focus on getting benefits of ERP software and ROI: CIOs andCOOs are expected to continue facing pressure to prove that theamount of investment in ERP systems is justified and generates asolid return on investment. As a result, the market will have moredeliberate spending, more phased rollouts, buying of licenses only aswhen needed, and hesitancy to invest in more expensive advancedenterprise software modules.· Companies are directing much of their ERP software investments toareas where they will definitely be implemented effectively and getmore out of their existing enterprise investments. The need to moreeffectively manage organizational and business risk will likely resultin a continuation of this trend in 2010.· Given corporate aversion to risk, companies are less likely to tryentirely new products or risky upgrades. As a result, vendors aremore likely to invest in incremental product enhancements andtighter integration between modules rather than major changes totheir software.· Thus, going forward, vendors are expected to seek smallerdeals from existing customers via add-on products and businessintelligence tools because most customers are not yet ready to fundmajor enhancements or expansions.• ERP SaaS in huge demand, but not suitable for largeorganizations: Though larger companies are likely to consider SaaSoptions, they are much less likely than their SMB counterparts toadopt these models. As software vendors expand hybrid solutionscombining the benefits of SaaS with the flexibility of traditional ERP(e.g., Oracle’s On Demand and SAP’s Business ByDesign offerings),larger organizations will continue opting for non-SaaS ERP optionsthat more commonly reduce cost and risk while maximizing businessbenefits in the long term. They will, however, be more inclinedto leverage SaaS for some niche applications such as documentmanagement software (DMS), human resource management (HRM),PLM, and CRM. That said, an exception is GE which implemented aSaaS SCM to manage $55 billion USD worth of corporate spendingamong 500,000 suppliers in 100 countries.· Though SaaS applications are increasing in popularity, the actualadoption of core ERP SaaS is expected to remain at less than 5%of the overall ERP market in terms of revenues in 2010. 2• Customer is king—it’s a buyers’ market: Even in the most optimisticscenario, overall enterprise software spending in 2010 is not expectedto return to pre-recession levels. Hence, aggressive software pricingand shared benefit implementation models would continue to be inpractice, thereby benefiting the buyer. A case in point is Epicor.• Increasing focus on industry-specific capabilities and markets:1 http://panorama-consulting.com/top-ten-erp-software-predictions-for-2010/2 Forrester Research: Trends 2010: ERP ApplicationsCustomers expect deeper industry expertise from their softwareproviders to gain a more integrated application environment and endto-endprocess automation. Hence, many companies combine custombuiltapplications and customized industry packages to supplementthe core software. This environment leads to a complex setup andintegration challenges.· Large enterprise software vendors have added vertical depth andbreadth. Both SAP and Oracle have invested heavily in industrysolutions, each reportedly having capabilities in more than 20verticals. This strategy to increase industry depth has driven manyacquisitions, particularly for Oracle. SAP, on the other hand, buildsindustry functionality in house but it has made several verticalacquisitions to accelerate time-to-market.· Second-tier software providers have found more success in offeringdeeper industry-specific functionalities compared with mega-vendors.Lawson, for example, has successfully targeted industries such ashealthcare, food, and fashion. Other vendors (e.g., Microsoft, Epicor,and Sage) may choose to go down to sub-industry levels, oftenrelying on partners to add the last mile of specialization.· Specialists focus on fewer or even single verticals. Some do noteven provide the core accounting functionality which is crucial toany ERP system. Nevertheless, these specialized plays are oftencompelling to customers and may also attract the attention of ERPvendors looking to partner or acquire. Specialist vendors offeringcomprehensive suites to particular verticals include Deltek (projectbasedbusinesses), Blackbaud (not-for-profit), Mincom (miningand asset-intensive businesses), QAD (manufacturing), and IBS(distribution). CGI Group gives ERP vendors stiff competition inthe government sector, including US federal as well as state andlocal governments. Specialists dominate the lucrative healthcaremarket, particularly patient systems. Notable players include Cerner,Eclipsys, Epic Systems, McKesson, and Siemens.• Vendor consolidation: Vendor competition was fierce before therecession and is even more so now. Dozens of smaller vendors arestarved for cash and unable to fuel R&D and other product innovationswithout capital injections. Larger vendors, however, have cash andsome have grown successfully via acquisitions (e.g., Oracle and Infor).Continued vendor consolidation thus looks inevitable.· The economic downturn has created more acquisition opportunitiesby lowering market valuations of struggling vendors. For customers,vendor consolidation reduces choices, but it also can provide ameasure of stability where vendor viability is a risk.· Vendor acquisition is expected to be vertically focused. The keydriver of acquisitions in 2010 will be gaining depth and share inspecific industry verticals. Oracle has been a key proponent ofvertical acquisitions, and SAP as well, though to a lesser extent.Possible plays for some vendors include acquiring breadth inhorizontal areas such as HR. Peer-to-peer acquisitions amongERP vendors appear less likely. Vendors may also acquire adjacenttechnologies, such as enterprise content management tools.Government Role in the IndustryPublic administration represents the largest IT spending by centralgovernments.After the economic crisis, which saw governments announcing massivestimulus packages, tax payers are now demanding funding cuts in thepublic service arena. There will be increased attention on how money isbeing spent at all levels of government.At the same time, telecommunications and the Internet are beingincreasingly recognized as critical to the economy and service delivery.Governments are thus expected to make efforts to move the majorityof citizen services to an online delivery model to increase transparencyand create value for their constituents. To this end, investment acrossa wide variety of departments, functions, and systems will be made.This will sustain investment in IT by governments in 2010 where thefocus will be on rightsizing, underscored by government transformationor modernization. In addition to rightsizing, social media are becomingincreasingly important as sources of public information, making themmission-critical for governments.IMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix C-ii

Appendix D: Niche Focus AreasThe current market conditions are shaping the following niche areas which are expected to become major technology forces in the long run.Mobile enterprise applications and computing• A mobile application is a software application that runs in a handhelddevice such as a smartphone. These applications are either preinstalledon phones during manufacture or downloaded by customersfrom app stores and other mobile software distribution platforms.• Despite the recession, the mobile landscape performed well in2009. A growing number of brands launched a mobile presence,leveraging the increasing consumer awareness of the potential ofmobile services. There was continuous consumer demand for Apple’sproprietary ecosystem; Google acquired mobile ad network AdMobfor a significant USD750 million; and Internet service providers (ISPs)entered the mobile market (Iliad’s acquisition of France’s fourth 3Glicense).• The mobile application market was estimated to be $4.2 billion USD in2009. Further, the number of mobile application downloads were justover 7 billion in 2009. 1• Going forward, the mobile application market is expected to reach$17.5 billion USD by 2012, representing a CAGR of 60.9% from2009 to 2012, while the number of mobile application downloadsis estimated to grow to nearly 50 billion in 2012. This growthwould be driven by increasing penetration of mobile internet, morefunctionalities, rising adoption of smartphones, and increased andbetter integration of mobile hardware and software.• Mobile applications can be primarily divided into two categories:· Consumer applications: These include messaging such as shortmessage service (SMS) or multimedia message service (MMS);mobile Web; and native/rich applications.· Enterprise applications: A mobile enterprise (mobile ERP)application is a web-based mobile cloud computing businesssolution, leveraging the Internet to deliver software as a service tobusinesses. This type includes all business modules such as ERP,CRM, SCM, and HRM as well as basic utilities such as corporatecalendars, address books, bulletin boards, notes and internalmessaging. It also includes field sales force automation and mobilefield asset management.• The year 2010 is expected to witness massive adoption of mobileenterprise applications. Carriers and vendors are recognizing theenterprise as a high-value customer and actively working towardsdeveloping and promoting attractive mobile data solutions forenterprises. The mobile enterprise application market in North Americais estimated to reach $10.3 billion USD in 2013 from $2.3 billion USDin 2008. 2 According to Gartner Research, by year-end 2010, 1.2 billionpeople will carry handsets capable of mobile commerce, providing arich environment for the convergence of mobility and the Web.• Along with mobile ERP, enterprise mobile cloud applications including1 The GetJar study run by an independent consulting firm, Chetan Sharma Consulting2 http://www.cellular-news.com/story/38739.phpthin clients and browser based applications as well as opportunitieswithin SaaS, platform as a service (PaaS), and infrastructure as aservice (IaaS) can fuel growth in this market. However, it shouldbe noted that proving ROI is still a concern for vendors and serviceproviders of mobile enterprise applications because the market is inits nascent stages and there is uncertainty on whether the potentialbenefits promised by these applications will be obtained.Trends to Look Out For In Mobile ApplicationMarket:• Mobile technologies, which are likely to impact short-term mobilestrategies and policies, include Bluetooth (3 and 4), mobile Web,mobile widgets, platform-independent mobile application developmenttools, application stores, enhanced location awareness, cellularbroadband, touchscreens, mobile to mobile (M2M), and deviceindependentsecurity.• Application stores 3 would continue to flourish, and the number of storesis estimated to grow from 8 to 38 during 2009-12. However, none areexpected to replicate Apple’s success in 2010 because of its dominatingmarket share and a strong pipeline. Apple’s iTunes store has beenthe leading store with a reported 150,000 mobile apps and 3 billiondownloads to date (99.4% of global mobile application sales in 2009) 4 .Google is likely to be the main competitor to Apple in 2010 through itsAndroid project. 5 The major challenge for players such as Google willbe to integrate hardware and software to promote a compelling userexperience and to successfully manage a network of developers.• Location-based services (LBS) are expected to have a high impactwithin the next two years. These services are not only useful bythemselves but also can be integrated with other applications suchas mobile advertising, search, and social networking to make thoseservices more relevant to the end user. The increasing penetration ofGPS in mobile phones and availability of LBS applications (iPhone’sApplication Store had about 2,500 LBS applications in April 2009, upfrom about 200 in August 2008) is expected to bring about faster useradoption of LBS within the coming years.Cloud-based application andinfrastructure services• Cloud computing is currently emerging as a service offering whichleverages internet hosting capabilities and can be viewed as anevolution of SaaS. Currently, cloud computing is generally regardedas IT infrastructure available on-demand and offers start-ups and3 Application stores are web sites from which free and paid applications can be downloadedon to smartphones.4 The GetJar Study, Paid Content and TechCrunch database5 Android is a software stack for mobile devices that includes an operating system, middleware,and key applications.Global Mobile Application Spending In USD Million, Region Wise, 2009-2012Region 2009 2010 2011 2012 CAGREurope 1,500 2,700 4,600 8,500 78.3%North America 2,100 3,000 5,100 6,700 47.2%South America 100 120 150 500 71.0%Asia 460 500 750 1,350 43.2%Middle East & South Africa 40 80 200 450 124.1%GLOBAL TOTAL 4,200 6,400 10,800 17,500 60.9%Source: GetJarIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix D-i

List of Vendors - Mobile Application StoreCompany Online Application Store Free Vs. Paid Application Price Store Size Store GrowthFree AppPaid AppAverage Pricefor Paid AppNo. of AppDec 2009New App AdditionDec 2009Apple iTune App Store 25% 75% $3.62 150,998 13,865Blackberry Blackberry Application World 24% 76% $8.26 4,746 501Android Google Android Market 57% 43% $3.27 19,897 3,005Nokia Nokia Ovi Store 15% 85% $3.47 6,118 734Palm Palm App Catalog 32% 68% $2.53 1,452 NAWindows Windows Marketplace for Mobile 22% 78% $6.99 693 NASource: Distimo Research: http://www.readwriteweb.com/archives/the_truth_about_mobile_application_stores.phpSMBs flexible access to computing capabilities with minimum capitalexpenditure. Nevertheless, with Amazon.com’s spin-off Amazon WebServices (AWS) emerging as a leading provider of cloud computingservices, cloud computing is expected to become more influential.• The worldwide market for IT services related to cloud computingand cloud services was worth almost $2.4 billion USD in 2009. By2013, the market is expected to be worth almost $8.1 billion USD.By far, the largest component of the overall cloud service market isimplementation, which represents 65% of the 2009 IT services marketand will represent 64% by the end of 2013.Smart computing ― Collaboration, unifiedcommunications, and voice over IP• Smart computing will help companies optimize process results andreturns from their balance sheets. Unlike the horizontal technologiesof personal computing and network computing, smart computingwill have a highly vertical industry focus. Vertical solutions will differsignificantly from vertical offerings in the past—thus the advent ofverticals 3.0. Tech vendors will have great growth opportunitiesin this new cycle but also big challenges in navigating the shift tosmart computing. Accordingly, in the US alone, the smart computingindustry’s vertical solutions will increase their share in the IT marketfrom 6% in 2008 to 23% in 2016. 1 Having said that, this solutionmarket is expected to increase from $27 billion USD in 2009 to $213billion USD in 2017 in the US.• Smart computing is based on technologies such as service-orientedarchitecture, server and storage virtualization, cloud computing,and unified communications. It adds to existing technologies newcapabilities of real-time situational awareness and automated analysis.Linux and open-source software (OSS)• The phenomenon of OSS which started 20 years back has suddenlygained momentum as a possible alternative to expensive proprietarysoftware. As the open source movement expands up the softwarestack, nearly all software markets are now being impacted in some way.• The OSS segment is experiencing slow but steady growth. Therelease of the open source internet browser Firefox 3.0 by Mozilla inJune 2008 is seen as a landmark event for open source applicationswith more than 8 million people downloading the new version of thesoftware within the first 24 hours after its release. The Firefox browserhas steadily been gaining market share, which had 24.23% of theoverall browser market in February 2010 from 21.8% February 2009.• In a Forrester Research report on enterprise interest for OSS, twothirdsof the 1,017 respondents at North American and Europeanenterprises expressed some interest in open source deployment.Virtualization• PC, server and storage virtualization is growing in use and will befostered by the tough economy. Virtualization is bringing new ways of1 Forrester Research: Smart Computing Drives The New Era Of IT Growthpackaging client computing applications and capabilities. As a result,the choice of a particular PC hardware platform, and eventually theOS platform, becomes less critical. Thus, enterprises are proactivelybuilding a five- to eight-year strategic client computing roadmapoutlining an approach to ownership and support, operating system andapplication selection, deployment and update, and management andsecurity plans to manage diversity in the virtualization arena.• Spending on x86 server and desktop virtualization softwaretechnologies is forecast to grow at a 33.6% CAGR through 2013. Themarket is driven by organizations looking to lower the total cost ofownership and to increase overall IT effectiveness. 2Business Intelligence (BI) and Analytical Software• BI and specialized analytical software such as data mining andpredictive analytics, video image analysis, pattern recognition, andartificial intelligence algorithms on a real-time basis help businesses orgovernments analyze patterns or anomalies.• BI provides in-depth data analysis, which makes it important ineconomically challenging times. As a result, the BI market was muchless affected by the economic crisis than most other software marketsand will continue to grow to $14 billion USD by 2014. 3 New categoriesof advanced analytics will fuel growth and merge into the core BImarket, including business performance solutions, text analytics,predictive analytics, and complex event processing.• All the big sellers of BI software are either parts of larger softwarevendor or private companies with the exception of pure-play BI publiccompanies such as MicroStrategy and Actuate.Social CRM• Social CRM (also known CRM 2.0) is a business strategy supportedby a system and designed to engage the customer in a collaborativeinteraction that provides mutually beneficial value in a trusted andtransparent business environment.• The industry has many participants and includes different types ofplayers such as traditional CRM vendors, community platform andsocial media players, and brand monitoring players. Most of the playersprovide on-demand subscription based offerings in social CRM.• Social CRM is most likely to be the next big trend in the entire CRMindustry. As per a Gartner report, social CRM is expected to seesignificant growth as over 80% of enterprise use of social networkingtools in 2010 will be driven by customer engagement projects. Inaddition, Forrester says that by 2013, businesses will be spendingalmost $4.6 billion USD on Web 2.0 tools which includes advancedInternet technology and applications such as blogs, wikis, RSS,and social bookmarking. In an April 2008 report, the research groupforecast 43% annual growth in the social media market for the so-calledEnterprise 2.0 as organizations are investing heavily in social networks.2 Gartner Research3 Forrester Research: Market Overview: The Business Intelligence Software MarketIMAP’s Computing & Internet Software Industry Global Report — 2010: Appendix D-ii

IMAP’s High Technology TeamBelgiumPeter De Waelepeter.dewaele@imap.comDenmarkLars Ehliglars.ehlig@imap.comStig Madsenstig.madsen@imap.comFinlandMikko Sistonenmikko.sistonen@imap.comFrancePascal Rivierepascal.riviere@imap.comGermanyMartin Schmittmartin.schmitt@imap.comIndiaShyam Shentharshyam.shenthar@imap.comAdam Larkeyadam.larkey@imap.comSpainDavid Serradavid.serra@imap.comUnited KingdomDan Bowtelldan.bowtell@imap.comCarl Houghtoncarl.houghton@imap.comNick Jonesnick.jones@imap.comEmma Leathleyemma.leathley@imap.comUnited StatesSandeep Beotrasandeep.beotra@imap.comRichard Juarezrichard.juarez@imap.comGene Ramirezgene.ramirez@imap.comFor a comprehensive list of IMAP advisors and to discover how IMAPcan help you with your M&A transaction, go to www.imap.com.IMAP’s Computing & Internet Software Industry Global Report — 2010: Page 38

Cross-border M&A requires local knowledge andexperience. IMAP advisors located around the world havesuccessfully completed thousands of M&A transactions.Let IMAP help you with your M&A project in 2010.Other industry reports available from IMAP: Automotive & Components Global Report, 2010 Alternative Energy Global Report, 2010 Food & Beverage Industry Global Report, 2010For copies, visit the “Industries” page of www.imap.com.IMAP’s Computing & Internet Software Industry Global Report — 2010: Page 39

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