Informix – New Pricing & Packaging An Overview for Business Partners

1. Informix – New Pricing & PackagingAn Overview for Business Partners Bruce Weed June 3, 2010

2. Agenda • Kick Off - Rob Thomas • Strategy, Pricing and Packaging - Bruce Weed • Pricing Scenarios - Rajesh Nair • Q&A

3. Revitalize Informix in 2010 by the execution of 4 key imperatives Delight the install base: Enhance the Informix client relationship and improve client loyalty Build Strategic Differentiation: Fix the messaging and enhance the overall Informix value proposition to the market Create Proactive Sales Culture: Develop a proactive, high-touch culture, with expansion into growth areas (embedded, etc). Build New, Profitable Revenue Streams: Build new revenue streams that capitalize on the strong and growing footprint of Informix

4. Mid-market 4 OEM - Deep Embed 3 1 2 Retail Gaming Healthcare Telco Delight the current install base Target Markets

5. New Pricing and Packaging - Why are we doing this? “The freedom to move forward to new opportunities and to produce results comes from living in the present not the past” - Brian Koslow • To delight our customers via simplified product pricing and packaging • Be more competitive in the market place • To create anopportunity for BPs to re-engage with clients/ISVs and proactively drive new business opportunities • Offer partners new revenue opportunities • New packaging, prices and product names available for ASL and OEM • No license-charge editions for ISV and SI adoption create opportunity for recruitment • Attractive OEM pricing on Selected Support • The new model increases value of our partners’ integration services and support capabilities • Greater values with new Informix Editions • Creates incentives to develop applications on Informix • Increase revenue opportunity: price changes bring Informix to a more competitive position in the market • Subscription & Support (S&S) on all editions, no impact to renewal revenue stream

6. Platform Deployment View of New Informix Editions Deployment Platform Charge Metrics: LU Virtual Server=Limited Use Virtual Server, LU Socket=Limited Use Socket , PVU=Processor Value Unit, AU=Authorized User Single Install, CS=Concurrent Session, Note – ISV and OEM partners require IBM license (contract) for redistribution on Innovator-c and Ultimate-C Editions.

7. New Informix Editions Summary

8. Some common misconceptions “To succeed, jump as quickly at opportunities as you do at conclusions“ - Benjamin Franklin • Misconception : Express is withdrawn with no replacement , therefore we "have" to move to the free editions, that's the entitlement • Fact: Express is not withdrawn, further, free versions don't have license entitlements • Misconception : Customers can still ask for entitled discounts with the optional support • Fact: There are no discount band levels associated with optional support (except education) • Misconception : ISVs can now use the free versions in their solutions and not pay us • Fact: ISVs cannot re-distribute Innovator-C or Ultimate-C for free • Misconception : My Express and Workgroup customers will not renew and I cannot make any revenue from the free editions • Fact: The average deal size per customer renewal is 1138 and 3187 on Express and Workgroup relatively . The Innovator-C and Ultimate-C optional support price is 1500 and 3000 respectively, very close to the average deal size today • Misconception : The value of my bigger contracts will drop sharply - I can now only charge 1500 $ for my Express contract, even if the customer's contract is worth more • Fact: The optional support charge is "per install" - quite often contracts are written up with multiple servers - so with the "per install" metric, the $1500 applies to every server in the contract  See Scenario 4  See Scenario 2  See Scenario 4

9. Sustaining Renewal Revenue Stream – Scenario 1 • Typical mid-market configuration for Workgroup on Windows • 4-8 cores (1 socket) • $15,000 SRP LU Socket • Average sales price • $6000 license • $1440 renewal • Revenue from Ultimate-C optional support • $3000 with no discount

10. Sustaining Renewal Revenue Stream - Scenario 2 • Workgroup Renewal with 30 Authorized Users on a server • Renewal SRP for Wkgp: $78.25 • Total renewal SRP for 30 users : $2,347.50 • Renewal Revenue with Ultimate-C Selected Support • $3,000

11. Sustaining Renewal Revenue Stream - Scenario 3 Increased Revenue

12. Scenario 4 - ISVs moving to free edition • ISVs can redistribute if their contract includes a license distribution clause • IBM supports the ASL Channel by allowing a significant margin to the Support Fee • Below is a model/example that shows a statement of direction in regards to the type of structure we are pursuing • So in this example, ISVs would pay 50% of the Support fee and Distributors pay 30%. This creates a margin opportunity for Distributors - so the prices for Support would be as follows: Limited Support PriceISVs PriceDistributor's PriceDistributor's Margin Innovator-C $1,500 $750 $450 $300 Ultimate-C $3,000 $1,500 $900 $600

13. Additional Revenue growth scenario – Reason for Call Resellers and SIs Expand for free, pay support later Higher value new editions : Growth and Ultimate Growth, Ultimate includes CAF and Warehouse More flexible pricing with hot standby secondary servers Distributors, ISVs and OEMs Effective revenue generating offerings for distributors and ISVs Low cost offerings to recruit new ISVs Highly competitive for existing ISVs to sell more solutions Higher profit with Informix benefitting from lower customer support costs Free technical assistance from IBM with focused Informix SWAT team Solution enablement Upgrades, POTs, POCs, Migration consulting

14. Hindi Thai Traditional Chinese Gracias Spanish Russian Thank You Obrigado English Brazilian Portuguese Arabic Danke German Grazie Merci Simplified Chinese Italian French Tamil Japanese Korean

15. Competitive Editions Functionality Comparison

16. Informix Edition Functionality Differentiation Details – 1

17. Informix Edition Functionality Differentiation Details – 2

18. Informix Edition Functionality Differentiation Details – 3

19. Informix Offering Mapping – Old to New Editions

20. License Entitlement Migration for IBM Passport Advantage Customers • Customers will be automatically migrated to the new Informix replacement license entitlements on May 25, 2010 • In the interim, until their next S&S renewal is completed, Passport Advantage will display both the old and replacement Informix license entitlements • Beginning on May 25, 2010, renewal quotes will be based on the new replacement part numbers. • After the next S&S renewal is completed, only the new replacement entitlements will be displayed • We prepared a customer letter explaining the entitlement migration and what to expect • Please push this information to customers to ensure they are aware of their new license entitlements • The letter is available externally in www.ibm.com/informix/support • You can also download a copy and deliver directly to the customer from the Competitive Wiki – Informix topics: http://w3.ibm.com/connections/wikis/home?lang=en#/wiki/DM%20Competitive%20Wiki/page/Informix%20Main%20Page

21. New Informix License and Trade-up Part Numbers

22. New Informix Renewal, Reinstatement, Selected Support P/Ns

23. Single core, 1 Chip Multi-cores, multi-chips Multi-cores, 1 chip 1 1 3 3 2 2 4 4 1 1 3 2 4 1 Processor, Chip, and Socket Terminology 1 1 1 2 1 3 2 4 • IBM defines processor = core • Microsoft defines processor = chip • Oracle defines processor = an occupied socket, each chip in multi-chip socket is a processor With the new IBM LU Socket charge metric a license is required for each socket, regardless of the number of cores or chips in each socket.