1. Microsoft and PTC Joint Value Proposition November 17, 2009
I am Adam Rizika, report to the CMO at PTC and responsible for the marketing aspect of the PTC-MSFT Relationship. As part of our efforts we have 7 people across the world. Thomas Gessner has responsibility for this group. Cindia Li is responsible for the partnership in China. Andy Kwon is the Regional Director for China.
Microsoft and PTC
Joint Value Proposition
November 17, 2009

2. PTC: 25 Years of Product Superiority
With 25 years of leading the industry in product innovation, PTC’s solutions provide industry-proven product development with a well-recognized brand and over 50,000 satisfied customers around the world.
How many of you have heard of PTC before? How many of you have met or worked with the PTC sales rep on your account? Once we have gone through this value proposition, I am sure that most of you will raise your hand when I come back next. Explain briefly our products if needed

3. PTC: Differentiated by our Integral Product Set
PTC is unique because 7 years ago we made a strategic decision to consolidate our products to work on one database. This enabled an integral architecture which allowed customers, for the first time, to successfully implement the key tenants of PLM: Change & Configuration Management, Collaboration, Supplier Management and BOM management.
PTC is winning against our competitors because we offer a modern, integral architecture – a “single source of truth” for product data.

4. PTC: Solutions that Address the Scope of Product Development
Organization
Plan
Concept
Design
Validate
Production
Support
Regulatory Compliance
Portfolio Management
Quality & Reliability Management
Change and Configuration Management
Program Management
Project Management
Management
Sales
& Mktg
Requirements Capture and Management
Proposal Response
Concept Development
System Design
Detailed Design
Verification and Validation
Design Outsourcing
Variant Design & Generation
Engineering
July
Changed “Quality Management” to “Quality & Reliability Management”
Dec 08
Change New Product Introduction to Project Management
Lengthen Program and Project bars
Change “Production Rump Up” into “Production”
Product Ramp Up is part of Validate phase
Support phase is active during Production phase as well.
Component and Supplier Management
Early Sourcing
Sourcing
Manufacturing Outsourcing
Tooling Design and Manufacture
Manufacturing Process Management
Manufacturing
Product Support Analysis & Planning
Technical Information Creation & Delivery
Performance Analysis & Feedback
Service
© 2009 PTC

5. PTC is Winning in All Major Markets
Retail &
Consumer Products
Aerospace/ Defense
Automotive
High Tech/ Electronics
Industrial Equipment
Life Sciences
Many companies can put up a chart like this. Having said that, there are a couple of accounts that really tell the story. EADS selected PTC after a year long benchmark. They had a huge installed base of Catia and partially owned Dassault, yet chose PTC. Otis also owned Siemens PLM and just switched. These types of changes don’t happen easily and don’t happen if a product is just a little better…..it has to be dramatically better. PTC, with our integral strategy, is winning!

6. Microsoft®: Providing a Foundation of Exceptional Products
Microsoft’s solutions provide the foundation tools & infrastructure for product development. Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
MSFT is obviously a leader in IT infrastructure, I think you all know that. This is for our sales guys.

7. Microsoft® SharePoint® Momentum is Growing
Fastest growing product in Microsoft history
Gartner Magic Quadrant leader
100 million + licenses
A collaboration standard for companies of all sizes
100M
MSFT’s growth and dominance with SharePoint combined with PTC’s PLM leadership is a fantastic combination. Particularly given the investment PTC is making in the SharePoint platform. How many developers do you think are working on SharePoint based applications at PTC? MSFT and PTC think that this combination will disrupt the market, helping both companies to take market share in Product Development.
2001
2009

8. Microsoft SharePoint - Business Collaboration Platform for the Enterprise and the Web
Sites
Connect and Empower People
Cut Costs with a Unified Infrastructure
Rapidly Respond to Business Needs
Composites
Communities
Insights
Content
Search

9. PTC and Microsoft®: A History of Innovation
A History of Technology Innovation PTC was the first MCAD provider to support Windows 64 – we are continuing our commitment to development on the Microsoft® Technology Stack. A Maturing Partner Relationship PTC has made major investments in product development, sales, and marketing resources dedicated to the partnership.
We have been a MSFT partner for a long time, with a history of technology innovation. Our relationship has been continuously maturing and with this new investment I think we will find the partnership relationship matures more quickly than ever. No MSFT PLM partnerships with this kind of investment.

10. PTC and Microsoft®: A History of Innovation
Microsoft uses PTC’s Product Development System (PDS) to design 90% of their hardware.
“The total integration of the package is what makes it so easy to use.”
~ David Beardsley Surfacing and CAD Group Manager, PC Hardware
Microsoft
By the way, did you know that 90% of the Microsoft hardware is designed with Pro/ENGINEER? We have been a partner in more ways than most people know.

11. PTC and Microsoft®: A History of Innovation
Together, PTC and Microsoft® deliver best-in-class product development solutions that can be leveraged broadly across the organization’s IT infrastructure.
IT Infrastructure
Simplified user experience
Leverage existing IT investments for lower TCO
Open, extensible platform
Drives productivity
PDS Architecture
End-to-end solutions for product development
Single source of product & process knowledge
Full integration with Microsoft
Customer
Value
Bottom line, MSFT provides the IT infrastructure and has great relationships with the IT organization. PTC provides our Product Development System architecture built on the top of MSFT’s infrastructure and has a great relationship with Engineering. Together; including PTC’s investment in SharePoint, we provide tremendous customer value.

12. PTC on Microsoft®: Product Architecture
Digital Product
Value Chain
Integral Business Logic on a
Pure Internet Architecture
Standards-based
Interoperability
Clients
Customers
Seamless User Experience
WCF/
Web Services /
BCS
ERP
PPM SP2010
Arbortext Editor
Community SP2010
Windchill ProductPoint
Windchill Web Parts for SharePoint
Windchill PDMLink
Windchill ProjectLink
Windchill MPMLink
Windchill PartsLink
Windchill Supplier Management
Windchill RequirementsLink
InSight
Costing
Relex
Portlets
MES
Design Teams
.Net/Java APIs
PTC PLM Platform
Pro/ENGINEER
CRM
Microsoft Project Server
Messaging
Technology
Adapters
Suppliers
Other PLM
Microsoft Office SharePoint Server
Mathcad
So Lets talk Architecture. This is PTC’s basic architecture. On the left you can see those organizations that are involved in the Product Development process. On the right you can see those systems which need to communicate with a companies PLM system. On the right you can see PTC’s traditional Windchill productline.
On the left and in black, you can see the work we are doing with MSFT. We chose SharePoint as our Collaboration Engine and MSFT Project Server as our PPM platform. This is all based on Office Communications Server, SQL Server and Windows Server. This should make it pretty clear that some key PTC products will drive MSFT product adoption.
Microsoft SharePoint Platform
Application
Adapters
Legacy
Office
Distributed Manufacturers
Office Communications Server 2007
File & FTP
Transfer
Other CAD and authoring Applications
Database
SQL Server 2008
STEP
Windows Server 2008
Other Web Clients
Federation
PDS Enterprise Architecture
Other

13. PTC and Microsoft®: Together to Market
Together, we are taking our message to the market.
In addition to our technology investment together, we are doing a lot of joint marketing. We are investing equally and in 2009 together we will spend about $2.0 million dollars, $1.0 million each. Both corporations want the field organizations to know this partnership is important.

14. The PTC-Microsoft® Partnership Drives Adoption of:
The Best-in-Class Product Development Solution
Extended Visibility of Product Development Data
Innovation Process Management and Project, Program & Portfolio Management
Social Product Development
PLM-ERP Integration – PTC’s Windchill and Microsoft’s Dynamics
Lets get into the details. There are 5 areas in which our partnership provides value. Explain each one a little bit.
(Later update with 6. Innovation Process Management - do we have a product line that is going to support innovation process management?)

15. The PTC®-Microsoft Partnership Drives: Best-in-Class Product Development
Windchill – World Class Performance
Number one content and process management software in the PLM market
Consistently winning in competitive benchmarks
Windchill on SQL Server®
Windchill deployed on SQL Server offers:
Superior performance and scalability
Lowest total cost-of ownership
Opportunity to Implement Windchill on SQL:
New Windchill opportunities
Existing customer upgrades and migrations
Windchill with SQL provides as good or better functionality as Oracle. We are doing testing with your Oracle compete team now to show that the performance is actually better. Having said that, SQL server also provides the lowest total cost of ownership. This allows customers to invest more in their PLM footprint.

16. The PTC®-Microsoft Partnership Drives: Extended Visibility of Product Development Data
Leveraging SharePoint-based collaboration to share product data:
Windchill Web Parts for SharePoint®
Windchill ProductPoint for Small Businesses
Both of these solutions:
Leverage the SharePoint interface
Allow cross-discipline workers to view and interact with PLM data
Provide role-based views of product data
Windchill Web Parts for SharePoint also allows customers to extend their Product Development footprint, while Windchill ProductPoint for Small Business enables Small Business to have a footprint.

17. The PTC®-Microsoft Partnership Drives: Extended Visibility of Product Development Data
Windchill Web Parts for SharePoint®
Presents Windchill product data in the SharePoint environment.
Supports:
Search
Assignment
Executive Reporting
WebParts allows organizations to publish Windchill information into SharePoint. Today this gives organizations the ability to search CAD documents, Assign tasks and provide executive reporting. When we first developed Windchill, we felt the ratio of people who would use product development data to those using CAD was about 20 to 1. We have only achieved 5-10 to 1 and we think that Webparts in combination with SharePoint will help organizations to extend their footprint into Marketing, Sales, manufacturing and finance. This is available today.

18. The PTC®-Microsoft Partnership Drives: Extended Visibility of Product Development Data
Windchill ProductPoint for Small Businesses
SharePoint®-based CAD data management for small businesses
Allows vaulting, sharing, visualization, and mark-up
ProductPoint, built native to SharePoint gives Small and Medium business a PDM/PLM footprint. This is a lightweight PDM/PLM system and was designed for Small and Medium business. We now have over 100 customers in just 3 quarters. This is available today.

19. The PTC®-Microsoft Partnership Drives Innovation Process Management (IPM)
Strategize
Capture
Formulate
Evaluate
Define
Select
Deliver % ∑ $
IPM Initiative
PPM
PLM

20. The PTC®-Microsoft Partnership Drives: Project, Program & Portfolio Management – the Solution for IPM
Builds on Microsoft Project Server and Microsoft SharePoint
Automates Stage-Gate and PACE Product Development Processes
Provides Balanced Scorecard tools for measuring alignment
Enables Resource Management across development programs
Connects directly to product deliverables and technical metrics
Engineered to work with Windchill PDMLink and Windchill ProductPoint
This is different and unique because we have added an stage gate capabilities and process to PPM so that it is viable for Engineering. Every Product Development organization with or without Windchill is interested in this.

21. The PTC®-Microsoft Partnership Drives: Project, Program & Portfolio Management
PTC’s Project, Program & Portfolio Management solution enables:
Portfolio Management
Allows executive teams to allocate skilled resources, gain visibility to the pipeline of new products, and prioritize and select new products
Program Management
Helps program managers execute and coordinate programs
Allows executives to measure New Product Development programs
Project Management
Helps project managers find the right resources and execute projects
Helps project teams deliver project deliverables
How many of you have sold Project Server to IT? Who are your largest competitors? I think you all understand PPM, MSFT has been a dominant player in PPM within the IT sub market for some time, but not had a solution for Product Development. PTC is building a PPM solution built on Project Server which will soon be built on SharePoint. This is available with Project Server and SharePoint 2010 and can drive MSFT EA’s today. In fact, we were just successful with MSFT at AMD in stalling a PPM decision because of the product we are developing.

22. The PTC®-Microsoft Partnership Drives: Social Product Development
“Social product development” incorporates Web 2.0 technologies, such as social computing tools, into the realm of product development.
PTC’s products:
Leverage social computing functionality of SharePoint® to uniquely support social product development
Social
Computing
Product
Development
Our third product offering will be the combination of MSFT’s Social Computing with PTC’s Product Development to achieve a Social Product Development environment. Many CIOs and VPs of Engineering are worried about productivity and IP protection given today’s social media options. PTC believes that by offering these Social Media capabilities within the secure environment of SharePoint and a Product Development System, we can make the Product Development organization more productive while securing IP. We have found that both the CIO and VP of Engineering find value exploring Social Product Development together. Everything we build on SharePoint obviously has Social Product Development Capability. Unique products will be commercial after 2011.

23. Industry’s First CAD Solution Enabled for Social Product Development
Increases collaboration efficiency
Search shared files faster with graphical browsing and navigation of data
Easily stay up-to-date with advanced presence detection and model status updates
Communicate and collaborate faster and easier with Web 2.0 design collaboration- auto-creation of wikis for design review, discussion, etc.
Lowering communication and collaboration barriers improves design team process productivity
© 2008 PTC 23

24. The PTC®-Microsoft Partnership Drives: PLM-ERP Integration
Microsoft’s Dynamics solutions provide industry-proven ERP. PTC’s Windchill is the most robust PLM solution in the market. When Windchill is integrated with Microsoft Dynamics, it links critical up- and down-stream processes and data.
Time to Market
Customers
Time to Customer
“ Best in class companies are 1.5 times more likely to have processes that span PLM and ERP systems.”
Source: Aberdeen “Integrating the PLM Ecosystem”
Product Development
Manufacturing & Delivery
Our fourth product offering will be an integration between Windchill and Dynamics AX.
Supply Chain 24

25. The PTC®-Microsoft Partnership Drives: PLM-ERP Integration
PTC’s Windchill – Dynamics AX integration:
Publishes Items, Bills-of-Material (BOMs), and changes/revisions to AX
Links to PLM item data, including CAD models/drawings and viewables
Reads from AX to expose key information like cost and inventory
Performs workflow-driven, closed-loop transactions with success/failure notification
Retains knowledge in Windchill of released items
The first release of this integration is expected to happen by the end of It includes important functionality that allows Windchill and Dynamics to communicate with each other to convey information and synchronize changes. Users can view information stored in Dynamics, like cost and inventory, while developing or updating designs in Windchill. Users in Dynamics can easily link to PLM item data, like models and drawings, from within the ERP environment. And most importantly, it supports workflow-driven, closed loop transactions – items and BOMs created in Windchill, as well as any subsequent changes to those items and BOMs, are published to Dynamics, to ensure that all systems are in synch, and that all users are working from a single, up-to-date set of product data. 25

26. PTC and Microsoft®: Partnership Success
Quanta Computer – Implemented Windchill PDMLink on SQL Server
Brown Shoe – Implemented Windchill FlexPLM on SQL Server
Valvan – Implemented Windchill PDMLink on SQL Server, Integration to Microsoft Dynamics AX
Humax – Implemented Windchill PDMLink on SQL Server
Vetco Gray – Completed First Phase of Windchill PDMLink and Windchill Web Parts for SharePoint implementation
Earnhardt-Childress Racing – Implemented ProductPoint on SharePoint
In 2008 we had 50 engineers working on ProductPoint for Small Business. In 2009 that effort translated to 100 deals. We think it will grow to several hundred deals in In 2009 we increase our engineering workforce to 200 and focused on the other products mentioned. We have already started to win together, but it is early. Quanta will be speaking next week about this at the MSFT Asia High Tech summit. Vetco Gray has just completed a pilot with WebParts. MSFT’s infrastructure is required for all of this, so we need to identify opportunities together and pursue them.