BDM slide deck The following slides are intended to be for a more business focused audience (Account Mgr., Corporate Account Mgr. etc.)

– EDI and AS2 Solutions for 2004

Why Do You Need EDI? B2B/EDI B2C B2B/EDI A2A Suppliers and Outsourcers Consumers Customers and E-Trading Communities Intra-enterprise A2A integration within an enterprise may involve applications running on the same computer, on disparate computers within the same data centre, or on computers distributed across a campus or world-wide network B2B relationships may involved application systems running in different enterprises, or conducted directly by an end user (B2C)

Recent industry statistics show EDI’s importance is not diminishing as expected a few years ago. Used by 99% of the Global 1000 companies More than 30 years and $100 billion invested Core to business processes (i.e., P.O.s,funds transfer) EDI will continue to account for the majority of B2B transactions EDI revenues for software and services will grow from $1.8 billion in 2001 to $2.1 billion by 2006 Even with the maturation of of XML-based standards, EDI will continue grow EDI = Important B2B Legacy

Where EDI is used today and tomorrow

Why BizTalk Server + Covast EDI? Combines existing and future B2B One platform for A2A and B2B Takes away high Mainframe and VAN costs Integrates EDI with the new open standards Integrated AS2 Solution Based on Microsoft technology in general and the fastest growing Integration Broker in particular

Covast Partner Status Covast is the Microsoft recommended EDI Solution for BizTalk Server The Covast EDI Accelerator for BizTalk Server 2004 is the 3 rd generation of its kind The EDI Accelerator is also available for BizTalk Server 2000 and 2002

Where does EDI fit in BizTalk Server?

BizTalk Server and Covast XML/EDI integration - on any platform BizTalk Server Standard Edition bCentral Service or Microsoft Office Non-BTS Server: Windows, UNIX, AS400, Mainframe… BizTalk Server Enterprise Edition Financial Application Distribution Application Application Warehousing System HTTP/FTP XML/web services Basic EDI functionality VAN connectivity Batching, validation All EDI standards And versions Functional acknowledgements All mappings for XML and EDI Are maintained within BizTalk One unified view for All XML and EDI messages AS2, connectivity-send secure XML + EDI messages over the internet

What ships “out of the box” within BizTalk 2004 – What Can It Do? BizTalk Native EDI will suffice when: –You only use a limited number of standard X12 or EDIFACT messages –Don’t need batching –You don’t need VAN or other EDI specific communications

BizTalk “out of the box versus Covast EDI Accelerator summary FeatureBTS 2004 EDI out of the boxCovast EDI Accelerator ANSI X 12 versions and transaction sets Specific versions and documents supported: 2040: 810, 832, 846, 850, 855, 856, 861, 864, 867, : 810, 832, 846, 850, 852, 855, 856, 861, 864, 867, : 810, 832, 846, 850, 852, 855, 856, 861, 864, 867, 940, 944, : 810, 832, 846, 850, 852, 855, 856, 861, 864, 867, 940, 944, 997 ALL versions and transaction set of ANSI X 12 (as well as subsets such as VICS, UCS, WINS) UN/EDIFACT versions and messages Specific versions and documents supported: D93A: DESADV, INVOIC, INRPT, ORDERS, ORDRSP, PARTIN, PAYEXT, PRICAT, SLSRPT D95A: APERAK, DESADV, INVOIC, INVRPT, ORDERS, ORDRSP, PARTIN, PAYEXT, PRICAT, SLSRPT D95B: APERAK, DESADV, INVOIC, INVRPT, ORDERS, ORDRSP, PARTIN, PAYEXT, PRICAT, SLSRPT D97B: APERAK, DESADV, INVOIC, INVRPT, ORDERS, ORDRSP, PARTIN, PAYEXT, PRICAT, PRODAT, RECADV, SLSRPT D98A: APREAK, CONTRL, DESADV, INVOIC, INVRPT, ORDERS, ORDRSP, PARTIN, PAYEXT, PRICAT, PRODAT, RECADV, SLSRPT D98B: APREAK, CONTRL, DESADV, INVOIC, INVRPT, ORDERS, ORDRSP, PARTIN, PAYEXT, PRICAT, PRODAT, RECADV, SLSRPT ALL version and messages of UN/EDIFACT + standards used with Europe such as EANCOM, TRADACOM, ODETTE, VDA, GENCOD Functional Acknowledgments Not supported Batching Not supported VAN – Communication support Not supported Validation Very limited validationExtensive validation according to the standard

Competition in the EDI Marketplace Large, Legacy EDI providers - Sterling Commerce - GXS (Global Exchange Services)… formerly GEIS - Harbinger/Inovis - Mercator Moving to new revenue sources - Less focus on the VAN (from a revenue perspective) - offer countless adapters, bolt-ons; EAI products - support for AS2 and internet protocols - enhanced mapping/config tools Selling against the competition - platform decision (.NET), BTS - flexibility, use of internet-based protocols (support for all VANS) - completes notion of B2B (inside to outside the enterprise) - TCO, ROI

The EDI Landscape

Provides opportunities to sell more BTS Licenses - additional procs - upgrade from standard to enterprise Helps build opportunities for MS GTM for integration - e.g. when EDI is key to customer - advantage when addressing EAI competitors (WebMethods, TIBCO, etc.) Promotes BizTalk as a platform decision (.NET) - current BTS customers that require EDI - potential new customers moving towards BTS (.NET) as their integration platform Expands relationship with the customer - provides greater business value, ROI How Covast can help to drive more BizTalk revenue?

Qualifying Questions – Identifying Opportunities 1) Are you currently doing EDI with your trading partners? 2) Why change your existing EDI infrastructure? (critical business issues/compelling event) Common responses: - cost/savings - contract will soon expire - technical/feature issues w/ current provide - batching/distribution issues - demand of customer/trading partner - timeline/deadlines for new IT initiatives - single platform play (EAI driven) 3)Do you handle your EDI internally or outsource to a third party?

Qualifying Questions – Identifying Opportunities 4)Which software/service do you use to conduct EDI? How long have you used this service? (some large companies may use MORE than one provider) 5)Do you use a VAN to send your EDI docs? (note name of VAN) 6)Do you currently send any EDI messages via internet based protocols? 7) What types of documents are you exchanging with you business partners? 810 (Invoice)….850 (Purchase order)… 856 (Advanced Ship Notice)….997 (Functional Acknowledgement) 8)What is your estimated monthly volume of EDI? (# of transactions, VAN fees, etc.) 9)What is your timeline for implementing a new EDI infrastructure? 10) CALL COVAST!

Joint customer successes across verticals Manufacturing Retail Aerospace Logistics Energy

About Flextronics: Business Challenge: The solution: Results: is a vast, global provider of electronics-manufacturing services for a long list of end users, including Ericsson and Xerox, Microsoft (Xbox) a materially significant portion of Flextronics’ purchase-order activity is done by fax and , throwing a gigantic crimp into the efficiency drive by a company whose marketplace has become hypercompetitive. Flextronics counts on BizTalk Server to enable it to communicate seamlessly with suppliers and customers who use Electronic Data Interchange, via Covast’s EDI Accelerator for BizTalk. …30 percent to 40 percent reduction in the amount of time that it takes to establish connectivity with a typical supplier. "If at 8 a.m., I receive 1,000 orders, it used to be that by the time I had those keyed in manually, by keyboard operators, it would be the end of the day," Simpson says. "Now, I've got them shipped within hours." James Simpson, senior director of IT for Flextronics case study

OSRAM SYLVANIA is the world’s second largest lamp manufacturer About Osram Sylvania: It was important for OSRAM SYLVANIA to base new integration projects on Extensible Markup Language (XML), while preserving its existing trading communities and business processes, which are based on EDI. Business Challenge: “The combination of Covast’s EDI Accelerator with Microsoft BizTalk Server enables OSRAM SYLVANIA to properly manage the co-existence of EDI and proprietary file formats with new, open standards such as XML. Our seven-year-old legacy EDI system could not do that; the challenge required both BizTalk Server and the EDI Accelerator.” said Michael Cipoletti, SAP EDI/XML Technology Manager The solution: This initiative will greatly reduce costs – chiefly by reducing the need for value-added network (VAN) connections which now constitute about $25,000 per month. Results:

Pre-Qualification questions 1. Do you currently have/use BizTalk Server? If no, go to question no. 2 If yes, Do you currently use EDI 2. Are you currently evaluating/considering BTS? If yes, from which perspective are you going to use it? - Do you want to have ONE platform which provides XML and EDI functionality? - Do you want to replace your existing EDI system, such as Sterling Commerce(product name is GENTRAN), Mercator, Innovis (ex Harbinger) and have limited need for XML Business qualifications: Why must they change (CBI's)? What is their Budget? What is their Project timeframe? Who is the competition? Who/Name of the decision maker; Title?

Technical qualification questions EDI Software: (Sterling Commerce, Harbinger now Inovis) Document Types (EDI + other formats): EDI Standards (X12, others?) EDI Versions (ANSI X 12 versions such as 3060, 4010, 4020) EDI Document types (850 PO, 810 = invoice) Use Functional Ack's (997)? Number of Trading Partners: VAN Provider(s) now/future: (such as Sterling, ICC, Kleinschmidt) Document Volume/ day/wk/mo Plans to replace VAN through AS2? Top 3 technical care-abouts batching, hi-avail., BTS intergration vans supt, EDI specs, doc track/trace

Typical Sales Cycle Initial interest / qualification Understanding of total MSFT / Covast solution (White paper review, product video, case studies) Placeware business review and technical demo Scope proof-of-concept (if needed) Establish business agreements Initiate POC Benchmark results Roll-out

Pricing/Support EDI Accelerator is priced the same as the other Microsoft Accelerators for example –Enterprise Covast EDI Accelerator - $20,000/CPU –Standard Covast EDI Accelerator - $5,600/CPU EDI Accelerator has similar support and upgrade policies/procedures

Covast resources – got EDI  call COVAST Covast-MSFT video + product demo The Covast –Microsoft relationship Covast Sales contact: Jeff Sevel, Account Executive - West Phone: Roy Carnes, Account Executive –East Phone: Microsoft/Covast relationship: Claus Loos, Director BizDev Phone: