The Progress OpenEdge Platform

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1 The Progress OpenEdge Platform Business Application Platform Niel Powers Vice President, OpenEdge Products

2 Today s Message OpenEdge meets evolving customer and partner needs for scalability and performance Announcing OpenEdge 10.1b Software as a Service providing growth for OpenEdge and our partners Progress s role in shaping SaaS futures OpenEdge makes it easier to adopt technologies and drive business change BGN Case Study -21 st Century Bookstore Progress Software Corporation

3 Progress OpenEdge Development Great Productivity Strong SOA Capabilities Easy to Learn & Use Deployment Great Efficiency Reliable & Easy to Manage Scalable OpenEdge Architect Open Clients (Non-OpenEdge) OpenEdge Clients Web Services SQL Clients ABL OpenEdge Application Server OpenEdge Development Environment OpenEdge RDBMS OpenEdge Replication OpenEdge DataServers OpenEdge Deployment Platform OpenEdge Management Progress Software Corporation

4 Today s Customer Environments Customer Users Revenues Database Operations per Day DB Size Platform Earthlink 2,100 $1.4B 1,500,000, GB Solaris Australia Post 20,000 $4.3B 600, GB NT OCWEN Financial 1,100 $247M 9,000, GB Solaris Fidelity Investments 400 $316M 350, GB Solaris IFDS 4,000 n/a 90, TB HP Wolseley 4,500 $20B 3,800,000, GB HP Progress Software Corporation

5 Progress and Its Partners Leaders in Business Applications 5 Portfolio of Applications Front Office Back Office E-Commerce Manufacturing & Distribution Financial Services Healthcare Industries 60,000 Customers using OpenEdge Retail and E-Commerce Over 5,000 CRM new customers added in 2006 Customer Service 225% Business increase 2006 over 2005 Intelligence Accounting Finance Manufacturing Supply Chain Telecommunications 10,000 Customers using OpenEdge 10 Government Over 7,000 Developers registered with HR/Payroll PSDN 60% increase in traffic 2006 over 2005 Education 2007 Progress Software Corporation

6 Software as a Service Providing growth for Progress OpenEdge and our Partners Colleen Smith Director, Software as a Service

7 The SaaS Evolution Technology and Innovation Web 2.0 SOA Collaborative Services Web Services Business Services Hosted Applications Managed Services Scope of Business Services Progress Software Corporation

8 Innovation and Growth via SaaS SaaS Enablement as part of our Partner Program: Develop a business model with focus on new market/growth opportunities Apply innovative technology and services to differentiate applications from the competition Participate in an ecosystem that increases customer value Progress Software Corporation

9 The Progress SaaS Partner Ecosystem Example: Law Firms with under 50 Lawyers Vertical SaaS Ecosystem (Legal Sector) Content SaaS Integration Platform Service Delivery Architecture 9 Other Examples: Travel, HealthCare, Oil & Gas 2007 Progress Software Corporation

10 The Results Partner Participation Growth Enablement Programs 160 Partners Participating Over 400 Applications 35% Royalty Increase 2006 over 2005 Over 50 Partners in 2006 Worldwide Coverage Ecosystem Revenue SaaS Offerings in 17 Countries Over $300M in 2006 Sales Progress Software Corporation

11 A new approach to bookselling Matthijs van der Lely Chief Executive Officer Boekhandels Groep Nederland

12 company overview: BGN largest booksellers in the Netherlands our oldest store opened in large consumer stores; 26 campus stores 3 customer target groups: consumers, businesses and students number 2 bookseller on the Dutch internet annual sales of over $ 240 million 750 FTE employees shareholders: NPM Capital (VC), Wolters Kluwer (publisher) and management

13 selexyz Holland s largest booksellers

14 challenges in bookselling our store selexyz donner carries 240,000 titles, on 55,000 square feet selling space books tend to walk through the store we receive over 5,000,000 books per year we buy identical titles from more suppliers returns are common in our business stocktake means closing down for 2 days theft and shrinkage is a concern exact in-stock position is usually not known however, Internet demands this nowadays

15 a few signals we found in the market Gartners showed us an exciting look into the store of the future Borders tested kiosks and were open about the results METRO (Germany) opened a test store the reasons not to use RFiD in a consumer environment were plenty: different type of products too expensive consumer privacy concerns suppliers were not supportive etc.

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18 the answer to our challenges: RFiD every single copy a unique identification exact location in the store always known exact in-stock position constant very fast and simple receiving returns are sent to the correct supplier by using kiosks customer knows in stock position and location of book

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20 challenges we faced before we started price of tags HF or UHF finding the correct partners we wanted to be fast the market claimed it could not be done privacy sentiments all parties inclusive our own staff were skeptical

21 just do it! we attended an RFiD now! conference in August 2005 we were amazed that nobody jumped at it books are simple, average price is high we outsourced distribution to one party: CB we did not look at obstructions but oversimplified on purpose UHF, generation 2 came to the market on time

22 Our partners:

23 how does it work? at CB every book is tagged CB packs books into boxes and sends to store in store, boxes are fed through scan tunnel administrative stock is automatically adjusted customer orders are identified and put aside SMS or is generated for customer orders all other books are placed on shelves twice weekly shelves and books are scanned, administrative stock checked and adjusted returns to supplier are fed through same tunnel and stock is adjusted

24 challenges we faced during implementation cupboards/shelves with metal components books with metal, CD s/dvd s etc. readability too wide, more than one shelf staff changes lay-out and shelf location some of the equipment had to be designed from scratch suppliers of possible tie-in solutions are not ready it is the beginning of a long and winding road the information we gather is almost too much

25 the results for now: opened first smartstore in Almere in April, the second in Maastricht in November we received 40,000 books in a few hours kiosks give exact information on availability and location of titles we scan the stock twice a week shrinkage is traced on item level special orders (9%) are identified before they go to the shelf tags are tied in with security portals we won a whole lot of prices

26 next steps develop smart shelves throughout store to overcome manual scanning develop and roll out of loyalty program link with internet use the vast amount of data in daily operations all other stores will follow in 2007 / 2008 cooperate nationally and internationally with booksellers to set standards tags should be added at printer/binder

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28 Let s Review OpenEdge meets evolving customer and partner needs for scalability and performance 15,000 concurrent users and growing Software as a Service providing growth for OpenEdge and our partners 160 partners and growing OpenEdge makes it easier to adopt technologies and drive business change SonicESB, Apama, EasyAsk and more Progress Software Corporation

29 The OpenEdge Success Formula We simplify the job of creating the world s s best business applications Progress Software Corporation

30 Progress Software Corporation