Rational Quality Solutions Prospecting Q4 2007

1. Jan Eriksen – Rational Sales Manager, Denmark Claus Agger – Rational Watchfire Nordic Leader Lars Bjørstrup – Pre-sales, Rational Quality Management, Denmark Rational Quality Solutions ProspectingQ4 2007 Prospecting Day – October 3th 2007

2. #1 in Market Share for Application Security – Gartner & IDC Best Security Company Prospecting day .. Rational Functional Tester is now SAP Netweaver Certified !!

3. Agenda • Introduction to Testing • Rational Quality Management solutions • Scenarios • SAP applications • Web security • Assistance • Who to call • Calling Scripts / Qualifying questions • Handling objections Today’s Purpose: To enable you to make the call and get a meeting booked today

4. About testing

5. Quality and test - quiz • What is high software quality? • System works as expected (functionality, performance, security ..) • Why is software quality important? • Direct impact on business • Cost of fixes are high the later they are found • How does your customer measure software quality? • Testing

6. How does the customer test today? • How does your customer plan and organize tests? • Test strategy? Excel? • How does your customer specify tests? • Word? Excel? • How does your customer execute tests? • Manually? Automated? • How does your customer manage defects? • Word? Excel? • How does your customer get up to date status on quality? • Reporting? Traceability from test to requirements?

7. Rising Cost of Operations Inability to Innovate Complexity Increased business & technical complexity makes change much harder 350 350 300 300 250 250 200 200 150 150 Compliance & Security 100 100 50 The changing global regulatory and business environment requires security, privacy and ongoing audit capabilities 2005 2006 2007 2008 50 0 0 2005 2006 2007 2008 The cost of operations continues to increase at 10% CAGR … twice the rate of the IT budget Increased focus on development project spend due to higher % of costs going to keeping the lights on … creates a dual focus of doing the right thing and doing things well Speed of Change 75 Average Lifetimeof S&P 500 Companies Increased competitive pressure to change and adapt while IT has an increasing role in every business process 65 55 45 Implied Lifetime 35 25 15 5 1928 '38 '48 '58 '68 '78 '88 '98 '08 '18 Year CIO Top ChallengesDelivering business agility / innovation while mitigating risk

8. Model the Business Define Requirements Optimize Analyze& Design Manage Implement Deploy Test Software Quality – Requires a Lifecycle ApproachLate defect discovery exponentially increases repair costs • An IBM & Gartner “rule of thumb” for the relative costs to fix defects 1.0 Lost revenue for each hour of downtime ranges from $89K to $4.5M1 Architecture flaws result in backlog of defects later. 1.5 100 Developers need code scanning tools. Application maintenance cost is 18.5% of total I/T spending2 10 60 1 AC Market Analysis: Self-healing market June 2004 2 Source: Tivoli Marketplace Assessment, February 2004

9. Rational Quality Management

10. Rational Software Quality Solutions BUSINESS SOFTWARE QUALITY SOLUTIONS Test and Change Management Defects Change Test Requirements Rational RequisitePro Rational ClearQuest Rational ClearQuest Rational ClearQuest Test Automation OPERATOINS DEVELOPMENT Functional Test Developer Test Security and Compliance Test Performance Test Rational Functional Tester Plus Rational PurifyPlus Rational Performance Tester Automated Manual AppScan WebXM Rational Functio nal Tester Rational Manual Tester Rational Test RealTime Rational Robot Quality Metrics Quality Reports Detailed Test Results Project Dashboards

11. Scenario 1 – Automated test

12. Customer Problem Scenario 1- SAP systemHigh cost of regression testing SAP applications reduces ROI Customer Problem: New release of system requires more and more re-test (regression test): • High cost on manual testing • Delayed releases • Lack overview - can not assure that quality requirements are met • Lost sales/productivity Business We need to get the new release of our SAP system on the market now Development Operations I don’t have time to test the entire system for every new release The new release has many defects - even in the functions that worked fine before I don’t have a reliable overview of my testing

13. IT Governance Rational Functional Tester for SAP Rational RequisitePro TEST MGMT. Rational ClearQuest Test Manager TEST REQ. MGMT. Customer Solution Scenario 1- SAP systemIntroduce Test Management and Automated Functional Testing Business Solution: Test Management solution with automated functional test. Benefits: • Reduced cost on testing (in the long run) using automated testing • Test more in less time – no delays • Overview of tests and found defects • Easy reporting and progress overview • Reduce Time to Market We’re back on track to achieve our goals. System quality is ok – even with new functionality added Development Operations I can focus on testing the new functions I am confident that all functionality has been tested

14. What can we offer on SAP testing • A state-of-the-art Test Management solution .. • Certified for SAP NetWeaver solution for automated test (Rational Functional Tester) • Testing capabilities optimized for SAP • Project templates for ReqPro and ClearQuest • Security application testing for SAP

15. Target customer profile - SAP • General Profile (New or Existing Account) • IT organizations developing / upgrading SAP applications – who need to test SAP • Existing Rational Customers • Customers who currently own Rational ClearQuest and SAP are target • HP/Mercury Accounts • Target customers with Mercury test automation solutions unhappy with their maintenance costs, Mercury’s proprietary solution and lack of features found in Rational's solution (e.g.. E-signature, Unified Change Management, ..)

16. Target customer contacts Executive Owners • CIO • CTO • IT Executive • LOB Executive Operations Owners Development Owners • IT Operations Manager • Release Manager • VP Engineering • VP Quality • Sr. Development Manager Text slide withlarge image

17. Qualifying questions – Quality Management • Typcal qualifying Questions • Q: How do you assure quality of your SAP applications? How do you know when your system is ready for release? • Q: How much of your testing is done manually? Are you considering test automation? • Q: How do you get an overview of eg. which requirements are tested ok? • Q: Do you have regulatory requirments? And how do you enforce these in your test management? (E-signature) • Q: We have a department specialised in Quality Management and automated testing. Would you be interested in hearing more?

18. Handling objections • Typical objection: We use HP/Mercury • Answers: • The “New Rational” is a better solution: • First and only vendor to achieve SAP NetWeaver Certification on RFT • Better support for the entire application lifecycle • Support Unified Change Management solution (UCM) • Support for handling regulatory requirements (E-signature) • Full VB.NET & Java scripting language in Rational Functional Tester (not just Java Scripting) • World class manual tester - with semi-automated data entry • Combined overview of all tests: Manual, Automated functional and performance tests in the test manager • And it is much cheaper :-)