Making Applications and Integration Faster

Key Questions 1.How are we doing? 2.Where are we investing? 3.What’s happening in the market? 4.What’s happening with our products?

A Year of Strong Growth $50 $100 $150 Revenue Up 40% worldwide Regional Growth 39% Americas EMEA 20% Asia/Pacific 60% Strong growth everywhere

Balanced Growth for Continued Stability Strong growth in new and recurring revenue Revenue Type $50 $100 $150 License – Up 51% Support – Up 30%

Why Are We Growing? Continued success of our Application Partners

Top 50 Partners in 2003 Up 11-25% 5 Up 1-10% 7 Up 25+% 24 Down 1-10% 6 Down 11-25% 6 Down 25+% 2 Nearly ½ of partners have Caché business up 25% or more

New Partners 259 added in

Why Are We Growing? Continued success of our Application Partners Relational refugees

Work – Relational Refugees Who What European federal police force Combination of state and local police systems, using Informix and Sybase, to create a new Caché system for 15,000 users

Work – Relational Refugees Who What Large Application Partner with customers on three continents Migration of sophisticated application suite (and hundreds of sites) from Sybase to Caché

Why Are We Growing? Continued success of our Application Partners Relational refugees New applications

Work – New Applications Who What Well known publisher of yellow pages directories Developing and deploying 3000 person sales force automation application, for use with Application Partner ’ s solution

Work – New Applications Who What One of top 5 global securities firms Creation of next generation trading infrastructure to handle thousands of transactions per second and with performance requirements far beyond what RDBMS can deliver

Why Are We Growing? Continued success of our Application Partners Relational refugees New applications Open M migrations

Continued Strong Embrace of Caché 2003 Revenue

Work – Migrations Who What Large U.S. government department Moving 100,000 users from DSM to Caché

Caché Performance Gains Initial sites see much better performance and reduced hardware requirements, e.g. BeforeAfter Hardware8 node cluster4 node cluster GUI Windows15 – 30 secondsInstantaneous Menu rebuild44 minutes3 minutes

Why Are We Growing? Continued success of our Application Partners Relational refugees New applications Open M migrations Ensemble

Work Who What Large state government department Composite application integrating data from disparate applications & databases

2004 Growth Sources Growth Rates Caché~25% Ensemble~10x Growth Share

Key Questions 1.How are we doing? 2.Where are we investing? 3.What’s happening in the market? 4.What’s happening with our products?

Where Are We Investing?Technology for rapid development and high performance reliable deployment

InterSystems Products High Performance Database Rapid Application Development Extremely Fast Integration Rapid Composite Application Development

Where Are We Investing?Technology for rapid development and high performance reliable deployment Assistance for the most productive and effective use of our products

Adding People Close to You 24 offices in 20 countries

Technical Account Management Focused on proactive assistance and expertise for large enterprises

e-Learning Using Java with Caché II Caché Performance Analysis V Application Packaging and Deployment Tips Indices II (Where Do I Need an Index?) Foreign Keys versus Caché Relationships Web-based education for developers and system administrators Web-based education for developers and system administrators Frequent focused sessions Frequent focused sessions Playback past sessions at your convenience Playback past sessions at your convenience

Where Are We Investing?Technology for rapid development and high performance reliable deployment Assistance for the most productive and effective use of our products Visibility for ever greater acceptance of Caché, Ensemble, & Caché-based applications

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Caché Campus Frankfurt University: Database lectures + diploma work Object Oriented Databases, projects, Technology Lab Database Theory and lots of projects 195 universities in 32 countries

Community Strong partnerships have built a powerful and successful community of End Users, Partners, and InterSystems Strong partnerships have built a powerful and successful community of End Users, Partners, and InterSystems Our principles of product excellence, quality service, and commitment to customers have produced enduring success for all of us Our principles of product excellence, quality service, and commitment to customers have produced enduring success for all of us

Community Thank you for your business!

Key Questions 1.How are we doing? 2.Where are we investing? 3.What’s happening in the market? 4.What’s happening with our products?

“Preparing for the Upswing” Anticipate IT spending up 1.4% in 2004 Anticipate IT spending up 1.4% in 2004 Most increase in the second half Most increase in the second half “From 2001 to 2003, the watchword was do more with less. In 2004, the watchword is changing to earn as you go.” “From 2001 to 2003, the watchword was do more with less. In 2004, the watchword is changing to earn as you go.” Results from a Gartner 2004 survey of 956 CIOs Source: Gartner EXP

IT Priorities 4. Security 5. Web projects 2. Cost cutting 1. Infrastructure Integration ?? 2. Infrastructure 1. Cost cutting 3. New applications 4. Web projects 5. Integration 2003 Source: IDC

The Evolution of Applications The Age of Automation The Age of Automation Focus on automating existing functions, often for the first time Focus on automating existing functions, often for the first time Generally narrow in scope, e.g. departmental Generally narrow in scope, e.g. departmental

The Evolution of Applications The Age of Automation The Age of Automation The Age of Expansion The Age of Expansion Focus on replacing existing applications with “best of breed” solutions with ever wider scope Focus on replacing existing applications with “best of breed” solutions with ever wider scope High cost and long roll out create risk of big failures High cost and long roll out create risk of big failures

Technology Eras Anwenderzahlen 10 technology centric 100 user centric network centric relationalrelational post relational

Database Market Evolution Technology Lifecycles Relational Database Late 1970s Post Relational Database Late 1990s

Caché: #1 Application Database

Caché: #4 Windows Database RDBMS market consolidates amongst the „Big 3“ RDBMS market consolidates amongst the „Big 3“ InterSystems Caché leads the challenger group InterSystems Caché leads the challenger group Rank (August 2003): Microsoft Oracle IBM InterSystems Others Rank (August 2003): Microsoft Oracle IBM InterSystems Others Source: Gartner Dataquest

The Evolution of Applications The Age of Automation The Age of Automation The Age of Expansion The Age of Expansion The Age of Integration The Age of Integration Focus on incremental extension of existing solutions, without “rip and replace” Focus on incremental extension of existing solutions, without “rip and replace” Leading to new generation of composite applications Leading to new generation of composite applications

Convergence Increasingly projects span integration models … DataCoordination CompositeApplications BusinessProcessManagement BusinessActivityMonitoring

Universal Business Integration Universal Business Integration: An Idea Whose Time Has Come

Ensemble Universal Business Integration Platform One Architecture Repository Management Development One data + logic model One repository One development environment One execution environment One management environment

Ensemble Accolades

Ensemble for Enterprises Flexible business process management, workflow, and rules-based solutions Flexible business process management, workflow, and rules-based solutions Next generation composite applications Next generation composite applications Highly responsive business activity monitoring systems Highly responsive business activity monitoring systems Rapid development of

Ensemble for Application Partners Act as a Systems Integrator, using Ensemble and industry expertise Act as a Systems Integrator, using Ensemble and industry expertise Embed Ensemble in your solution, for internal or external integration with your applications Embed Ensemble in your solution, for internal or external integration with your applications Create “Packaged Integrating Processes” (PIPs) Create “Packaged Integrating Processes” (PIPs) New business opportunities for application partners

Ensemble for InterSystems Support rapid development of next generation composite applications Support rapid development of next generation composite applications Participate in high visibility growing market Participate in high visibility growing market Provide path into organizations that have “standardized” on a database Provide path into organizations that have “standardized” on a database Leverage many shared technologies with Caché Leverage many shared technologies with Caché