An Introduction to Xtremesoft

1. An Introduction to Xtremesoft “Maximize the availability of your applications on the Microsoft platform.”

2. Company History 1998 • Company direction solidified as a result of work on COM+ in cooperation with Microsoft • Began product development with major Microsoft end user • $1.5M Seed round from Merrill Lynch Ventures (MLV) • Expanded relationship with Microsoft, Signing a 3-year development agreement with BizTalk Server group • $5.8M Series B Round from JMI Equity Fund and MLV • Hired Professional CEO • Both AppMetrics products launched – June 2001 • First international distributorships signed 1999 2000 2001 2002 Introduction to Xtremesoft

3. Senior Management • Michael Dexter-Smith ▪ CEO • Chief Executive Officer at VenturCom (6 Years) and Carleton Corporation (4 years) • Chris Smith ▪ VP • Director Product Management – Xtremesoft • Group Product Manager – IBM/Lotus Introduction to Xtremesoft

4. What is Application Availability? How do you differentiate availability from management generally? And how does Xtremesoft add value?

5. Application Availability Increases The ROI “By using AppMetrics, the availability of the application has increased by a few percentage points. Considering for every one percentage point of additional availability a thousand man-hours of down-time is saved and hence results in millions of dollars in improved efficiency throughout the organization.” — American Family Introduction to Xtremesoft

6. The Evolving Application StackMore of the application is handled by standard components Application Application Application Application Application Application Web Services Integration Server Integration Server Application Server Application Server Application Server DBMS DBMS DBMS DBMS System SW System SW System SW System SW System SW Platform Evolution : Mainframe Client/Server Web EAI/B2B Web Services Introduction to Xtremesoft

7. Availability Requires • Availability comes from • Reliable hardware • Reliable Operating System • Managed Network • Managed Databases • Successful Business Transactions Hardware OEM Microsoft HP, NetIQ Quest Xtremesoft Introduction to Xtremesoft

8. Successful Business Transactions • CPU running, disks spinning – are transactions succeeding? • View computer systems in terms of business work done • Identify the list of discrete business transactions • How many execute? How many succeed? AppMetrics provides business logic transaction information Introduction to Xtremesoft

9. Competition For Managing The Application Stack Application No Market Today No Market Today Emerging Market 2004 Mainstream Market 2006-2007 Web Services BizTalk Server Integration Server MQ Series CA, BMC, Nastel WebSphere (same as J2EE) Websphere/WebLogic Wyle, Altaworks, Dirig, BMC COM+ & .NET Xtremesoft Application Server Precise Software, Quest Software, BMC DBMS Consoles: CA, Tivoli, NetIQ, Microsoft, BMC Networking: HP, Micromuse, Concord Communications Systems HW/ OS Networks Introduction to Xtremesoft

10. Microsoft Direction Microsoft intends to make their infrastructureand packaged applications more reliable and scalable… But will leave the customer on their own when it comes to making their custom applications highly available

11. Market Trends 1999 – 2005 in Application Development • Enterprises are required to build new mission-critical applications in order to automate and enhance their business processes • A shift is underway from ‘stovepipe’ internal only apps, to web based transactional type applications. • Microsoft is the most cost-effective solution • Inexpensive to deploy compared to the competition • Microsoft owns the ‘developer’ tools market with Visual Basic and Visual Studio .NET • The starting point is being controlled and evangelized • As a result, Microsoft’s share of the enterprise application server installations will grow • But by how much? Introduction to Xtremesoft

12. What The Analysts SayAbout Market Size • Meta Group • Believes Microsoft’s share of the enterprise application server installations will grow five fold, from 10% share of the market today, to 50% within the next three years • Gartner Group • Recently in CIO Magazine, Mark Driver, Director of Research said, “Over the next five years, we see two de facto platforms for a vast majority of e-business apps: Java and Microsoft... We don't see a clear winner. We expect a 40-40 split, or perhaps a 50-30 split in favor of Java.” • International Data Corporation • In their Performance and Availability Management Software Market Forecast and Analysis, 2001-2005, IDCstates, “the performance and availability management software market increased to $3.89 billion in 2000,” and then predicts, “this market is forecast to grow by 72% to reach $6.68 billion in 2005.” Introduction to Xtremesoft

13. Microsoft Owns the Platform: The IS Groups Will Follow • 6 Million+ Microsoft Visual Basic developers are using Visual Studio .NET and Visual Basic .NET • Visual Basic has a 3 to 1 advantage in developers over Java (Gartner Group) • To win the IS organization Microsoft will have to match proven traits found on platforms like UNIX and IBM’s Mainframes • Reliability and scalability • Sophisticated management tools • Business application availability • Microsoft has the ‘will’ (and $$) to build a reliable platform • The base platform and development environment has always been their forte • But this infrastructure is difficult and complex effort, which leaves few resources to focus on management issues such as application availability • Which is why Microsoft if relying on industry leaders, namely Xtremesoft Introduction to Xtremesoft

14. The Microsoft Viewon Management Value added and other ‘expert’ management provided by ISVs(like Xtremesoft) Xtremesoft Transactional Application Mgmt Microsoft .Net Servers Performance Capacity Mgmt Network Mgmt MS Operations Manager (MOM) Microsoft .NET Servers Hosting Mgmt Storage Mgmt Base servermanagementprovided byMicrosoft Security Management Introduction to Xtremesoft

15. Xtremesoft In The Market and Working!

16. AppMetrics for Transactions Introduction to Xtremesoft

17. Software Architecture Web Server AppMetrics Manager Mid-Tier PerfMon Analysis AppMetrics Display MTS Email and Pager NT n-Tier Application NT Event Log COM+ Enterprise Mgmt Data Warehouse Database Acquisition Analysis Action SQL Server OLAP Services Introduction to Xtremesoft

18. Our Customers and the Marketplace Continuing to Build A Strong, Referenceable Base of Users

19. Customer Feedback • "Thanks for all of your ongoing support btw...you guys are absolutely one of the best vendors I've worked with!” Pitney BowesShelton, CT, United States • “Again, thank you very much for your support and thanks to your team. The customer service being provided is top drawer!” 5by5 SoftwareCalgary, Alberta, Canada Introduction to Xtremesoft

20. Financial Services Merrill Lynch Fidelity Investments GMAC-RFC ADP Dealer Services American Family Insurance Skandia Banken Manufacturing Pitney Bowes Microsoft Corporation Media International Data Group Public Sector/Government State of North Carolina Public Works and Government Services Canada Retail & Hospitality Schwan’s Sales Enterprises Meijer Corporation Simon Property Group Services Peopleclick.Com eCollege WebTone A Sampling of Our Customers Introduction to Xtremesoft

21. Market Feedback from Analysts and Microsoft • In September 2001, Xtremesoft was ranked as one of five, private companies to watch in SG Cowen’s analysis of the performance management sector. Peter Kuper, Analyst with SG Cowen • “In a dedicated Microsoft environment, Xtremesoft will eventually [sic] benefit from tighter relations with the platform vendor...” Jean-Pierre Garbani, Senior Industry Analystwith Giga Information Group • “Xtremesoft's powerful solution provides additional information and needed analysis for enterprises that have developed and deployed applications…” Michael Risse, General Manager for .NET Servers at Microsoft Corporation Introduction to Xtremesoft

22. www.xtremesoft.com “Maximize the availability of your applications on the Microsoft platform.”