Session Number: HPT13 Sage Abra Competitive Briefing Tom Tillman Product Marketing Director

CPE Credit In order to receive CPE credit for this session you must be present for the entire session. –Session code: HPT13 –Recommended CPE credit = 1 –Delivery Method = Group Live –Field of Study = Specialized Knowledge and Applications Visit the Continuing Professional Education kiosks to enter CPE credit during the conference.

Introduction Tom Tillman, Product Marketing Director Nancy Tillman, Product Marketing Manager This presentation will be available online after the conference. You will receive an for the Insights session Website approximately 4 weeks after Insights.

Learning Objectives After participating in this session, you will understand the competitive differences between Sage Abra and: –ADP Major Accounts –Ultimate Software –Microsoft Dynamics GP –And more (Mangrove, Spectrum, PeopleTrak & Ascentis)

Sage Abra HRMS Positioning Recognized leadership Leader Quadrant – Gartner 2006 Mid-market HRMS MQ Strong Performer – Forrester 2006 Mid-market HRMS Wave “The on-premise HR solution of choice for the…SMB … company segment” – Forrester 2006 & 2008 Mid-market HRMS Wave Capabilities Single system automates & reduces the costs of HR, Benefits & Payroll administration Software support and services (Sage and Partner) Grows & changes as business needs evolve Modular software and services Multiple database platform support On-premise and hosted deployment options Fits the requirements of any budget Pay for only the capabilities needed now and add-on later Easy to adopt and use technologies (Win, IE, SQL,.Net) Hosting options minimize/eliminate IT impact Market Leader Designed for Mid-Size Organizations Comprehensive Capabilities Flexible & Scalable Low Total Cost of Ownership

ADP Major Accounts (50ee – 1,000ee)

ADP Major Accounts Overview Mid-size business: 50 – 1,000 employees HR, benefits, payroll, tax, compliance, retirement services Large direct sales force Regional service (processing centers) Business model is to sell services, not software ADP is formidable by the sheer mass of its payroll customer base and size of its sales force, but product innovation and service quality are suspect.

ADP – How They Position Themselves Global provider of e mployer-related business process solutions Takes the burden and risk of payroll processing and tax management off the customer Services all areas of the employee lifecycle from recruitment to retirement “Inventor of the software subscription model” –Yields better savings for the customer in terms of total cost of ownership –Automatic upgrades & reduced strain on IT resources

ADP Major Accounts -- Main HR/Payroll Offerings ADP AutoPay –Back office batch payroll processing services ADP Pay eXpert –Web-based version of PC Payroll for Windows (PCPW) –Client data “Front end” for AutoPay ADP HR/Benefits (HRB) –Web-based HR; Formerly Employease –SaaS offering with PEPM pricing –Works with Pay eXpert ADP HR eXpert –Web-based HR –SaaS offering with PEPM pricing –Works with Pay eXpert

AutoPay Pricing $4.10/pay (1 st 50) $2.15/pay (51+) Includes Pay eXpert, Autopay, Total Tax Plus, Data Access

ADP HR Capabilities & Pricing Module/FunctionHRB AdvancedHRB BasicHR eXpert HR & complianceYes Benefits adminYes Applicant trackingYes No RecruitmentYes No Training adminNo Employee self service (HR & benefits (info)Yes Employee self service (payroll info)Yes Opt (Portal) Manager self service (approvals/workflow)YesNo Benefits enrollmentYes Opt (Portal) Carrier connectivityYes Optional Labor management integrationNo Opt (Link) ReportingYes Base Pricing (PEPM): ee ee 500-1,000ee $7.30 $7.05 $6.60 $5.95 $5.45 $4.85 $1.70 $1.55 $1.40 Base Pricing Implementation: ee ee 500-1,000ee Carrier Set-up (per carrier) Recruitment $6,000 $8,000 $10,000 $2,000 $5,000 $7,000 $9,000 $2,000 $4,000 $6,000 $8,000 N/A

HR/B ESS and MSS Capabilities

ADP HRB vs. Abra SQL Comparison Module/FunctionHRB AdvancedAbra SQL HR & complianceYesAbra HR Benefits adminYesAbra HR Applicant trackingYesAbra eRecruiter RecruitmentLImitedAbra eRecruiter Training adminNoAbra Train Employee self service (HR & benefits (info)YesAbra ESS Employee self service (request/view time off)YesAbra ESS Employee self service (payroll info)YesAbra ESS Manager self service (approvals/workflow)YesNo Benefits enrollmentYesAbra BE Carrier connectivityYesABM PayrollOpt (AutoPay)Abra Payroll Tax FilingIncl w/AutopayAbra Tax Filing Service

HRB functionality missing/weak No integration to labor management (T&A) systems No requisition management No training admin File export/import integration between HRB and Pay eXpert No single sign-on between HRB and Pay eXpert

Abra SQL vs. ADP HRB 300ee Example YR 1YR 22-YR TotalYR 33-YR TOTAL Abra SQL License (no Payroll)$20,360$0$20,360$0$20,360 ABM Annual Service$3,000 $6,000$3,000$9,000 Abra Annual Support$4,069$5,205$9,274$5,205$14,479 Total Abra$27,429$8,205$35,634$8,205$43,839 nGenX Annual Service $4,320$4,020$8,340$4,020$12,360 Total Abra + nGenX$31,749$12,225$43,974$12,225$52,199 ADP HRB SaaS Annual Fees$25,300 $50,600$25,300$75,900 Total HRB$25,300 $50,600$25,300$75,900

Abra SQL vs. ADP HRB/Payroll 300ee Example YR 1YR 22-YR TOTALYR 33-YR TOTAL Abra SQL License (with Payroll)$30,150$0$30,150$0$30,150 ABM Annual Service$3,000 $6,000$3,000$9,000 Abra Annual Support$5,935$7,220$13,155$7,220$20,375 TFS Annual Service$1,650 $3,300$1,650$4,950 Total Abra$41,635$11,870$53,505$11,870$65,375 nGenX Annual Service$4,320$4,020$8,340$4,020$12,360 Total Abra + nGenX$45,955$15,890$61,845$15,890$77,735 ADP HRB SaaS Annual Fees$25,300 $50,600$25,300$75,900 Payroll Annual Fees (24 pays)$17,820 $25,640$17,820$53,360 Total ADP$43,120 $86,240$43,120$129,360

Abra SQL Proposal Tuning vs. ADP What is driving customer’s desire to out-source payroll processing? –In-house staffing? – MYTH (customer still must manage all employee information, time collection, pay-rates, benefit premiums, etc.) –Payroll tax management? (Abra Tax Filing Service) 1 st year cash outlay a key driver for customer? –Consider financing license/implementation over 3 years (KEF) Total cost of ownership –Emphasize total costs over 2+ years (igh ADP costs NEVER END) Hosting –Understand importance of hosted/SaaS to prospect. ADP is always SaaS. Include nGenX hosting service in proposal (perhaps as option) Customization & Flexibility –Abra can be customized (Abra is dedicated - HRB is shared) –Can host additional applications at small incremental hosting costs (Dedicated Abra hosting resources)

Ultimate Software

Ultimate Software Overview Provides strategic HR, payroll & talent management Packaged as a full HRMS solution (HR/Payroll always together) Offered as hosted deployment with subscription pricing Markets and sells its products and services primarily through its direct sales force Focus has been >1,000ee companies, and just recently begun coming down-market Ultimate is a strong SaaS competitor in HRMS in the US, able to serve customers of various sizes. The company is less focused on its SMB solution from a marketing standpoint.

Ultimate Software – How They Position Themselves HR/Payroll is all they do - the HR/payroll vendor that dedicates all of its resources to HR/Payroll research and development -- A “total business solution” – 1-stop workplace portal Single integrated database and single sign-on –Integration among all functions (HR, payroll, benefits, etc) –Enter data once, available immediately Reporting and analysis –Standard and custom –Point in time; historical Customer service – 99% retention rate Ultimate will generally not pursue deals where payroll is not part of it

Ultipro Offerings Ultipro “Enterprise” –Targeted at >1000ee companies –Purchase and deployment options: –As of April 1, 2009 USG will no longer be offering traditional license pricing for on-premise UltiPro On-Premise is typically >1000ee size customers Pricing will be PEPM (but less than established SaaS pricing) –Sold by the Ultipro Enterprise direct sales team Ultipro “Workplace” –Targeted to <1000ee companies (200ee-700ee focus) –Saas model –Same product as Enterprise, with different included/optional capabilities –Sold by a dedicated Ultipro Workplace sales team

Ultipro Pricing Module/FunctionWorkplace SaaSEnterprise SaaS “Core”$10-$11 PEPM <1000ee discounted $2,000/mo min $7 PEPM >1000ee discounted Carrier connections (limited)2 included Additional $2,000/ea 2 included Additional $2,000/ea Tax filing service (limited)IncludedLimited Manager self service$1 PEPM Benefits enrollment$1 PEPM Recruitment$1 PEPM Performance review$1 PEPM Salary plans/budgeting$1 PEPM Time and Attendance$4 PEPM Time ClocksPurchase Software supportIncluded Managed hosting serviceNA Implementation service$50/ee $10,000 min $165/hr out of scope $50/ee $165/hr out of scope

UltiPro “Workplace”vs. Abra SQL Comparison UltiPro Workplace Core SolutionSage Abra SQL Human Resources and ComplianceAbra HR + Abra Attendance PayrollAbra Payroll eTimesheetsAbra Timesheet BenefitsAbra HR ESS/Employee PortalAbra ESS Applicant Tracking (basic) Tax Filing & Wage GarnishmentAbra Tax Filing Service Benefits & Third Party Data ExchangesAbra Benefits Messenger, Abra Link Configuration & AutomationAbra ToolKit, Abra Alerts Cognos ReportsCrystal Reports Hosted DeliverynGenX Managed Hosting Service

Abra SQL BYOB vs. UltiPro Workplace (no implementation shown) – 300ee Example 300 employees Example YR 1YR 22 YR TOTYR 33 YR TOT Abra SQL Abra/TimeSheet License $35,425$0$35,425$0$35,425 Abra/TimeSheet Annual Support $7,220$8,205$15,425$7,885$23,310 nGenX Annual Service$4,050 $8,100$4,050$12,150 ABM Annual Service$3,000 $6,000$3,000$9,000 TFS Annual Service$1,650 $3,300$1,650$4,950 Total Abra Solution with nGenX $53,870$16,905$70,7755$16,605$87,380 Ultipro Workplace SaaS Annual Fees$39,600 $79,200$39,600$118,800 Total Ultipro Solution$39,600 $79,200$39,600$118,800

Abra SQL Proposal Tuning vs. Ultipro SaaS <500ee Opp’s. Hosting –Understand importance of hosting to prospect. Ultipro is ALWAYS hosted. Include optional nGenX hosting service in proposal Implementation –Target standard implementation at 40% - 50% of license –Call out advanced/custom & on-site work separately – show the value Match Abra capabilities to customer needs –Are all the modules needed? (Ultipro does not unbundle core) 1 st year outlay a key driver for customer? –Consider financing license/implementation over 3 years (KEF) Total cost of ownership –Emphasize total costs over 2+ years (high SaaS costs NEVER END) Customization & Flexibility –Abra can be customized (UltiPro cannot be) –Can host additional applications at small incremental costs

Microsoft Dynamics GP

Microsoft Dynamics GP Overview HR & Payroll (standard & advanced) –Available with Business Essentials & Advanced Management editions – same price points –HR and Payroll can be sold, installed separately –Standard HR required for Advanced HR option –Standard Payroll required for Advanced Payroll option HRM Self Service and Benefit Self Service Suites –Only available with Advanced Management edition –Also requires named employee Business Portal seats at about $20 - $25 each (volume priced) Microsoft can only win HR/payroll business with existing ERP customers, not competitive elsewhere.

Microsoft Dynamics GP vs. Abra SQL Comparison Business Essentials Advanced Management Abra SQL HR (records, compliance, benefits, applicants, absence, accruals, reports Yes Abra HR Abra Attendance Advanced HR (benefits lifecycle, certifications & training, wellness) Yes Abra Train PayrollYes Abra Payroll Advanced Payroll (labor accruals, labor reporting, Payroll hours to GL) Yes Abra Payroll HRM Self Service Suite (ESS, pay, recruit, skills/training, time/att) NoYesAbra ESS Abra eRecruiter Benefit Self Service Suite (open enrollment) NoYesAbra BE New

Microsoft Dynamics GP Pricing 1-100ee ee ee ee ee Unlimited HR 3,0005,0007,00010,00014,00020,000 Advanced HR 3,0005,0007,00010,00014,00020,000 Payroll 2,0003,0004,0006,0008,00010,000 Advanced Payroll 3,000 5,0007,00010,00014,00020,000 Direct Deposit 2,000 Magmedia 750 HRM Self Service 5,000 Benefit Self Service 3,7506,2508,75012,50017,50025,000

Abra SQL Bundle Special MAS 500 Pricing* Employee TierList Price Bundled Price Q3 Promo Price (25% disc) 75ee$5,020 $3, ee$10,875$9,475$7, ee$18,040$12,220$9, ee$24,315$16,605$12, ee$41,560$21,650$16, ee$61,800$28,570$21,425 UnlimitedNot avail$37,640$28,230 --Special Abra pricing when competing with GP & MAS Bundle includes: Abra SQL HR, Attendance, Payroll & payroll-GL integration utility; Annual support is 25% of license * -- Network seats are no charge, but must be ordered separately * -- All other Abra modules are at regular list prices

Abra SQL Special Pricing vs. Dynamics GP HR/Payroll

Abra SQL Special Pricng vs. Dynamics GP HR

Mangrove

Mangrove Overview and Positioning Privately held company founded in 1994 Provides fully integrated 100% web-based HR, PR, Benefits Mgmt., Applicant tracking and Self Service Payroll can be sold stand-alone; HR requires payroll Offered as licensed or SasS/outsourced solution Targeted to <5,000ee companies

Mangrove License Pricing Mangrove HR / Payroll150ee500ee1,000ee License$30,800$43,400$59,400 Annual Support$5,544$7,812$10,692 Online Self Service License$10,550$15,100$21,600 Annual Support$1,899$2,718$3,888

HR/Payroll License Includes Payroll Web-based timesheets Attendance accruals/absences Personnel Management HR Compliance Appraisal Management Benefits Administration Carrier Connectivity Open & new hire enrollments Compensation Management Safety Management COBRA Administration Training Administration Position Control Customizable workflow & approvals Ad Hoc report writer Applicant Management On-line employment applications Requisitions Customizable bus rules, DB access, etc. Internal system

ESS License Includes Employee and Manager access Employee requests/manager approvals Manager self service

Spectrum iVantage

Spectrum Overview Privately held company founded in 1984 with 125 employees, $15million in revenue Offers one web-based HR solution – iVantage “Full service implementation company” 400 – 500 customers on current product Competitive on the upper end of Abra’s range, but lacks payroll capabilities Product promoted as good for training and development, certification and applicant tracking Three purchasing models: –Purchase software and self-host –Purchase the software and pays Spectrum to host –Subscription to service monthly

Spectrum Pricing License includes: Named manager/HR users, Power users, HR, compliance, COBRA, Benefits management, Report writer (4 tools), Applicant manager, postings, requisitions, Absence management, Performance Management, Manager self service, Alerts, Form routings, Customization toolkit Spectrum iVantage200ee500ee1,000ee License$15,275$25,025$40,275 Annual Support$2,750$4,505$7,250

Spectrum iVantage Optional Modules Optional Software200ee500ee1,000ee Payroll link3,000 ESS3,6009,00018,000 Pos control & budgeting2,8004,0006,000 Succession planning2,8004,0006,000 Training & Development2,3003,2004,700 Timesheet2,3003,2004,700 Org Publisher2,0603,3005,360

People - Trak

People - Trak Overview and Positioning Southern California based company founded in 1992 Offers a “high-performance, fairly priced “ Human Resources Information System (HRIS) Targeted to >50ee, price per employee, no hosting Three applications and functionalities “modules” –Essentials – “core” offering, manage and report everyday HR tasks –Strategic – HR Essentials plus customization tools –Web Add-On

People - Trak Pricing HR Essentials ($19.95/ee)150ee500ee1,000ee License$2,993$9,975$19,950 Support$449$1,496$2,993 HR Strategic ($59.90/ee) License$5,993$19,975$39,950 Support$899$2,996$5,993 HR Web Add-on ($19.95/ee) License$2,993$9,975$19,950 Support$449$1,496$2,993 Priced “per employee” and sold in increments of 50ee

People – Trak Pricing License Components HR Essentials Includes: Personnel Management Time and Attendance Appraisal Management Benefits Administration Compensation Safety Management COBRA Administration Competency Job Profiles Rules Based Security Query Based Report Writer Form/Letter/Label Editor And more HR Strategic includes: All of HR Essentials Approvals Workflows Process Triggers Screen Customization Derived Fields Electronic Forms HR Web Add-on: Manager Self-Service Employee Self-Service Candidate Self-Service / Career Center Online Open Enrollment Online Appraisals Online Policy Manual Online Suggestion Box

Ascentis

Ascentis Overview and Positioning California based company founded in 1980 HR is hosted or licensed, Payroll is hosted (out-source) only HR & Payroll can be purchased separately Payroll pricing is PEPM (not per pay) Touts it’s products “ease of use” Ascentis competes with Sage on the lower end, serving companies with basic core HR/payroll needs. Targeted to 100 – 2,500ee companies

Ascentis Pricing Ascentis HR - Standard150ee500ee1,000ee License$6,690$16,130$23,680 Support$1,330$3,240$4,740 Ascentis HR - Premier License$11,810$28,480$41,850 Support$2,350$5,720$8,370 Annual support is bundled with license 1 st year Payroll is only available as service bureau

Ascentis Pricing License Components HR Standard: HR Compliance COBRA Benefits Management Report Writer (not crystal) Org Charting Payroll Link Applicant Manager PTO HR – Premier includes: All of HR Standard ESS Benefits enrollment

Competitor Profile: Ceridian Following a change in ownership (public to private equity), company is attempting a makeover. –Revenues in the $1.5 billion range, profitable Poor track record with technology development and acquisition, recently hired Lawson’s CTO. Core HR capability (Latitude, SaaS-based) is competent and well integrated with payroll. –Resells best-of-breed solutions for time and attendance, performance management, learning. –Owns a recruiting solution via acquisition

Competitor Profile: NuView Systems Closely held company based in Boston area, recently took VC funding to grow. Acquired Cort Software for payroll in Oct Approx. 300 customers, 80 to 100 employees. Good web-native architecture, primarily on-premise but offers subscription and license/hosted options. Solution is fairly comprehensive and multinational, generally appeals to companies in 500 to 5,000 employee range.

Competitive Overview – HRMS AttributeAscentisPeople - TrakOptimum Deployment MethodOn-premise, hostedOn-premise Offering CapabilitiesSolid HR; strong benefits; Merged with EBS for online payroll Strong HR; weak talent mgmt; no payroll, Solid HR, payroll and T&A; tax-filing service; some recruiting; no talent mgmt Offering CompetitivenessFeatures & pricing similar to Abra; no on-premise payroll The price leader with HR features similar to Abra; no payroll HR, payroll features similar to Abra; payroll supports Canada DistributionIndirect – MS, HR & Benefit Consultants Direct –telephone & Internet only Direct – East coast only; 3 sales offices Total U.S. Market Share/Revenue $3.6M Total Company ~$3.0M Total Company Unknown Customer SupportMid/Low - Small company (~28 employees) Mid/Low - Small company (~30 employees) Mid/Low - Small company OverallCompetes well when in- house benefits mgmt is a main concern Competes well strictly on HR & when price is main concern We rarely lose to them

Competitive Overview – HRMS AttributeKronosSpectrumMangrove Deployment MethodOn-premise, hosted Offering CapabilitiesStrong HR, payroll, recruitment, WFM/T&A; tax- filing Solid HR, benefits, some talent mgmt; workflow; no payroll, multiple payroll integrations Strong HR, payroll, benefits; services; some recruitment; no talent mgmt Offering CompetitivenessCore business is T&A, which they leverage to sell the web-based HRMS Web-based, full-featured HR system Developed originally for payroll service bureaus; offers full-svc benefits admin DistributionDirect – Field based HRMS sale force & ProServ organization Direct with some indirect (resellers) Indirect – used by small service bureaus, and sold by resellers Total U.S. Market Share/Revenue ~$500M total company; HRMS unknown ~$13M Total Company Unknown Customer SupportMid/highMid/Hi 125 employees; 50% in customer services Mid OverallEspecially strong in >500ee deals where T&A is important Especially strong in >500ee deals and where technology is important Recently began offering on- premise version; recruiting Abra resellers

Competitive Overview – HRMS AttributeADP Major Accounts UltimateMS Dynamics GP Deployment MethodOff-Premise On-premise Offering CapabilitiesHRMS SaaS offering; strong benefits capabilities; payroll outsourcing, services Full HRMS with Talent Mgmt; Full SaaS; Full on-premise Okay HR/Payroll; Weak Benefits & Talent Mgmt; Offering CompetitivenessFull range of products and services to fit most every need PriceyAs part of an integrated ERP Suite DistributionDirect – broad coverage; >1,000 reps Direct – 90% 5 U.S. sales territories Indirect – Extensive VAR channel Total U.S. Market Share/Revenue 11%/$1.9B (incl payroll for Major Accounts) ~1%/$164M for total company. Signs that share is growing 4%/$1.8B All Dynamics Customer SupportLow - Svc level is #1 reason they lose customers Mid/Hi - Touts award winning service Mid/Low - 1 st line support thru VAR’s Overall#1 Competitor overall,; outsource Payroll market leader; well-known; broad solution set Making in-roads into <1000ee segments with mature SaaS offering; reputation for good HRMS technology #1 Competitor in ERP/HRMS market;

Sage Abra Competitive Resources Sage Abra SQL Community Site: Partner Resource Online (PRO): Tom Tillman, Product Marketing Director: – , ext or Nancy Tillman, Product Marketing Manager: – , ext or

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