Make Money with Cast Iron’s Cloud Platform Chandar P, VP of Product & Channel Marketing

2 Agenda Acquisition Summary Compensation Overview Cast Iron Solution Overview Identifying Opportunities For Cast Iron 2

3 Combined for Customer Success WebSphere and Cast Iron: Complete Application Integration Cast Iron Systems’ products will be made available worldwide as part of the WebSphere leading Application Integration Portfolio Award Winning Cloud/SaaS Application Integration solution Pioneered SaaS / Cloud Integration Unique focus on speed & simplicity Integrate in Days Thousands of deployed customer integrations Stellar Cloud partner Ecosystem 10,000+ Customers Unparalleled expertise, and level of investment Over 15+ YEARS of industry leadership 100’s of services assets Broadest, deepest solution portfolio Application Integration business partners Largest Application Integration user community

4 ©2010 Cast Iron Systems, an IBM Company Confidential Post Acquisition Buzz Buzz IBM's acquisition of Cast Iron Systems puts together a dominant on- premise applications provider…with a top SaaS integration leader. This pair could be a match made in enterprise heaven. …is a really good move for IBM as it establishes IBM as the de facto leader in Cloud integration. Cast Iron Systems…will allow IBM to offer…a complete platform to integrate cloud applications…with on-premise applications.... Overall, we consider this deal to be good for Cast Iron and IBM…. It’s a great way for IBM to go back to customers and say, ‘we can be your one-stop-shop for integration in the cloud’. With Cast Iron, IBM gets a proven Cloud integration-as-a-service solution. Cast Iron…has a stellar list of partners…. Pretty much every SaaS company of note is on the roster.

5 s Cloud Partner Ecosystem 5 ©2010 Cast Iron Systems, an IBM Company Confidential

6 Agenda Acquisition Summary Compensation Overview Cast Iron Solution Overview Identifying Opportunities and Getting Paid 6

7 Bring the Cloud to Your Deals & ELAs Your Customers

8 Bring the Cloud to Your Deals & ELAs Quick Wins – days sales cycles Land & Expand - $150K to $300K deal sizes Trusted Advisor on Cloud Computing

9 A Few Wins in the First 30 Days!

10 Velocity Example: First IBM Sourced Cast Iron Deal 10 UK OnDemand Communication Services Company System Website Tracking Order Management Customer Data Oracle EBS ©2010 Cast Iron Systems, an IBM Company Confidential EV Messen ger EPi Server Company Profile Provider of on-demand computing and communication services to UK businesses 250 employees, 3500 customers, 500,000 users UK-based data centers to provide service platform Tivoli and Cognos used widely Existing investment in Oracle EBS Business Problem Lacking customer visibility, CRM capabilities $118K/yr lost due to manual error-prone processes between systems Chose SFDC with an initial 40 license roll-out SI Partner recommended Magic iBolt Project too complex; implementation failing; July deadline ERP Website SFDC

11 Results 25 Day Sales Cycle $172K Deal No Demo No Evaluation No Face to Face meeting Cast Iron Engaged Stuart Fawkes (IBM) saw project failing Cast Iron qualification team engaged the customer Local Cast Iron seller deployed Highlighted similar case studies, company track record, product speed Closed deal 11 ERP Website SFDC ©2010 Cast Iron Systems, an IBM Company Confidential UK OnDemand Communication Services Company System Website Tracking Order Management Customer Data Oracle EBS EV Messen ger EPi Server Velocity Example: First IBM Sourced Cast Iron Deal

12 Compensation and Incentives What’s in it for you? You get Paid on Selling: Perpetual Licenses or Term Licenses (first year annual contract value) Additional Incentives based on deal-size: $25K to $100K = 5% of TI $100k to $250K = 10% of TI $250 to $500K = 12% of TI > $500K= 15% of TI Eligible Sales Roles – WebSphere Reps, Client Reps, Software Client Leaders, Software Industry Sales Reps Cast Iron Avg. Deal Sizes

13 Agenda Acquisition Summary Compensation Overview Cast Iron Solution Overview Identifying Opportunities and Getting Paid 13

14 ©2010 Cast Iron Systems, Inc. Confidential SaaS Market Will Grow to $16B by % CAGR

15 ©2010 Cast Iron Systems, Inc. Confidential Companies have both Cloud and On Premise Applications And It’s Created a Hybrid World Private Clouds Home-grown Applications Packaged Applications Public Clouds

16 ©2010 Cast Iron Systems, Inc. Confidential Which Demands Integration Home-grown Applications Packaged Applications Integration is Critical in a Hybrid World Private CloudsPublic Clouds

17 Why Integrate The Cloud? 17 Marketing Shipping Finance What are my hottest leads? ? Where are my orders? ? Has this customer paid? ? I need to do a credit check ? Where are my invoices? ? Sales

18 Maximizing Cloud Application Value 18 Hottest Leads Sales Marketing Shipping Finance Invoices Orders

19 ©2010 Cast Iron Systems, Inc. Confidential Integration Maximizes Value of Cloud Investments Needs Getting More and More Complex Home-grown Applications Packaged Applications

20 ©2010 Cast Iron Systems, Inc. Confidential Which Has Led to Dissatisfaction Source: Saugatuck Technology Inc., 2009 Global User Survey; n=1793

21 ©2010 Cast Iron Systems, Inc. Confidential Introducing the Complete Platform Cast Iron Integration Platform: Bridges the Cloud and On Premise Worlds

22 Complete Flexibility Cast Iron Cloud2™ Virtual Appliances Physical Appliances ©2010 Cast Iron Systems, an IBM Company Confidential Complete Total ConnectivityComplete Reusability TIP Exchange TIP Development Kit TIP Community For All Types of Projects UI Mashups Process Integration Data Migration Complete Platform 22

23 Complete Flexibility ©2010 Cast Iron Systems, an IBM Company Confidential Complete Total Connectivity Complete Platform Complete Reusability TIP Exchange TIP Development Kit TIP Community For All Types of Projects UI Mashups Process Integration Data Migration Reduce Risk Save Up to 80% in Time & Costs Increase Return Save Up to 50% in Time & Costs 23 Cast Iron Cloud2™ Virtual Appliances Physical Appliances

24 Proven Results Across Industries Consumer 24 Education Finance Healthcare Manufacturing High Tech Proven – Thousands of Customer Integrations

25 Rapid Results 25

26 ©2010 Cast Iron Systems, an IBM Company Confidential s Powering Cloud Providers

27 Cast Iron Confidential. Do Not Distribute. Integration = Faster Adoption and Lower Churn Churn Rates Economic Value for Cloud Providers Source: Cast Iron Research

28 Complementary Offerings ©2010 Cast Iron Systems, an IBM Company Confidential Cast Iron SystemsExisting IBM Products Cloud to On-Premise App Integration Real-Time Cloud Integration TIP’s (Template Integration Processes) Physical, Vitrual, Cloud Master Data Management On-Premise / B2B Integration Data Quality ETL/ Data Warehousing Data Federation Enterprise Service Bus Messaging Cloud Ecosystem

29 Corporate Offices Augmenting Existing IBM Products Division or Subsidiary

30 Cast Iron Solution Overview 30 Cast Iron Capabilities

31 Cast Iron Approach No CodingBeyond ConfigurationPreconfigured Templates (TIPs)

32 10 Minute Demo ©2010 Cast Iron Systems, an IBM Company Confidential ManageRun What How Configure Customer App (SQLServer)

33 Agenda Acquisition Summary Compensation Overview Cast Iron Solution Overview Identifying Opportunities and Getting Paid 33

34 With 3 Simple Qualification Questions 1.What type of Cloud apps do you have? −Packaged? - salesforce.com, Oracle CRM, Taleo, Success Factors, etc. −Home grown? – e.g. private clouds using web services, etc. 2.What type of on premise applications do you want to connect with these cloud apps? −Packaged? – E.g. SAP, Oracle EBS, PeopleSoft, JD Edwards, Siebel, etc. −Home grown? – e.g. built on SQL Server, DB2, Oracle, Web Services, etc. 3.What is the timeframe for doing the above integrations? −Immediate? 6 Months or more?

35 And Register Opportunities to Get Paid Click Here to Register Opportunities (

36 Compensation and Incentives What’s in it for you? You get Paid on Selling: Perpetual Licenses or Term Licenses (first year annual contract value) Additional Incentives based on deal-size: $25K to $100K = 5% of TI $100k to $250K = 10% of TI $250 to $500K = 12% of TI > $500K= 15% of TI Eligible Sales Roles – WebSphere Reps, Client Reps, Software Client Leaders, Software Industry Sales Reps Cast Iron Avg. Deal Sizes

37 Next Steps Want to Learn More? −Software Sellers Workplace −New IBM RedguideRedguide Want to Register Opportunities & Get Assistance? −Click here to Register OpportunityClick here to Register Opportunity Questions or Inquiries about Cast Iron? −

Cast Iron Systems Overview Jeffrey Hill, Cast Iron Systems Sales Integration Leader Chandar P, VP of Product & Channel Marketing

Appendix Jeffrey Hill, Cast Iron Systems Sales Integration Leader Chandar P, VP of Product & Channel Marketing

40 Cloud CRM and on Premise Apps (e.g. SFDC or Oracle CRM) A A A A B B B B Cloud HCM and On Premise Apps (e.g. Taleo or Success Factors) C C C C Custom Cloud and On Premise Apps (e.g. Web Services) Cloud Integration Problems To Look For CRMHCM Custom (Web Services)

Timing Batch or Real Time Invoices Products Orders Assets Credit Quotes Pricing Shipping Accounts Install Base Objects Processes Transformations Data Validation Data Cleansing Business Logic Workflow Error Handling Alerts ©2010 Cast Iron Systems, an IBM Company Confidential s What is a Template Integration Process?

©2009 Cast Iron Systems, Inc. Confidential

s Library of Template Integration Processes ©2010 Cast Iron Systems, Inc. Confidential

s Configuring a TIP

s Deploying Integrations ©2009 Cast Iron Systems, Inc. Confidential Cast Iron Cloud2 Virtual Appliances Physical Appliances