SIIA & TripleTree's SaaS Webinar Series Capital Markets Overview

SIIA & TripleTree's SaaS Webinar Series Capital Markets Overview Moderator: Brian Klemenhagen, Senior Principal, TripleTree, LLC Panelists: Avinoam Nowogrodski, CEO, Clarizen Venu Pemmaraju, Director, Intel Capital Seksom Suriyapa, VP, Corporate Development, SuccessFactors

SIIA & TripleTree SaaS Webinars Cloud Computing Vertical Markets February 23, 2010-12:30 pm - 1:30 pm ET Price for SIIA Members: Free; Non-members: $50 This webcast will include TripleTree s detailed Cloud Computing market perspectives and three real-life examples of emerging vendors who are finding success building Cloud offerings with a specific vertical market focus. More Info: http://bit.ly/cloudverticals

SIIA pioneered the government cloud computing dialogue with its SaaS Gov conference. Now in its fourth year, the SIIA conference has consistently attracted top government speakers, cloud computing experts, and public sector customers to show how government agencies can take advantage of the cloud -Daniel Burton, Senior Vice President, Global Public Policy, Salesforce.com SIIA & INPUT Members: $495 Non-Members: $695 Gov IT Purchasers (with Fed ID): Free http://www.siia.net/saasgov

Medium-sized, EBITDA-positive companies are invited to apply to present before an audience of middle-market-focused senior lenders, private equity investors, and strategic partner prospects. Deadline to Apply: 1/15/2010 March 3, 2010 New York City

www.siia.net/aatc SIIA OnDemand & OpSource SaaS Summit have joined forces to bring you All About The Cloud May 10-12, 2010 The Westin St. Francis, San Francisco, CA

Capital Markets Overview Sponsored by TripleTree For details, please visit our website www.triple-tree.com or call (952) 253-5300. January 14th, 2010

Introductions Venu Avinoam Seksom Brian Pemmaraju Nowogrodski Suriyapa Klemenhagen Panelist Panelist Panelist Moderator Director Intel Capital CEO Clarizen VP of Corp. Dev. SuccessFactors Director TripleTree, LLC

Capital Markets Continue to Reward Pure-play Software as a Service (SaaS) Firms Compared to its Peer Group 12-Month Relative Stock Price Performance +85% TripleTree SaaS Index +45% Software license +28% S&P TripleTree s Software as a Service (SaaS) index consists of the ~20 pure-play firms listed below; although, the sector is primarily comprised of private companies with TripleTree s Software as a Service and Cloud Computing database, consisting of more than 2,300 firms Source: TripleTree, CapIQ, 451Group

Public SaaS Firms Receive Premium Valuations SaaS companies trade at a premium to software license firms Premium valuation multiples also for SaaS firms with higher market valuations Large public SaaS vendors TEV=Total Enterprise Value are rewarded LTM=Last Twelve Months for attributes such as size, Source: TripleTree CapIQ, 451Group

Will the SaaS IPO Market Rebound? 12 # of SaaS Initial Public Offerings (IPO) in the Period Taleo Synchronoss SaaS IPO volume increased by 140% 7 SuccessFactors SaaS IPO volume fell by 75% PROS WebEx Omniture Visual Sciences 5 LoopNet Ultimate Soft. Vocus HireRight RightNow Salesforce.com DealerTrack LivePerson Kintera DemandTec OpenTable ecollege Kenexa Constant Contact NetSuite BlackBoard AthenaHealth LogMeIn Concur Filed; but no IPO Salary.com 3? @ IPO--Median Revenue: $36 million $54 million $50 million $67 million Median Market Cap: $199 million $297 million $331 million $342 million * This chart considers only pure-play SaaS companies; all transactions on a trailing twelve

SaaS M&A Deal Volume & Valuations on the Rise Again Historical SaaS Median M&A Revenue Multiples* M&A Activity (Pure-play SaaS Vendors)* 150% Increase in SaaS M&A Over Last Half Year of Deals TEV/Revenue Acquires Acquires Financial Metrics Acquires Financial Metrics Financial Metrics Enterprise Value: $1,727m Enterprise Value: $140m Enterprise Value: $183m Revenue (TTM): $335.5m Revenue (TTM): $35m Revenue (TTM): $30.0m EBITDA (TTM): $34.3m EBITDA (TTM): Breakeven EBITDA (TTM): NA TEV/REV: 5.2x TEV/REV: 4.0x TEV/REV: 6.1x TEV/EBITDA: 50.3x TEV/EBITDA: N/A TEV/EBITDA: N/A * This chart considers only pure-play SaaS companies; all transactions on a trailing twelve

Fast-Growing, Multi-Billion Dollar Market Still Defined by Private Companies Market Size and Growth Market Share Private Company Landscape $14B+ TripleTree** Analysts $17B $12B Analysts estimate the SaaS market reached $12 billion in 2009* TripleTree calculates the SaaS market was $14+ billion in 2009** Projected 10%+ No one vendor controls more than 10% of the market More than half of the SaaS market is defined by private companies Market share is divided among thousands of Hundreds of small private companies Niche, best-of-breed players across every category A small percentage of firms have scaled beyond $100 million * IDC in revenue **Based upon TripleTree proprietary database

Enterprise Visibility Customers Resource Management Budget Management Time Management Suppliers Delivery Management Partners

400% annual growth Market over the Web and sell over the phone $35 per user/month, simple revenue model Enterprise deals with 100s of seats 500 customers

Initial focus: Services Other Media Time management/ coordination are big issues Software Public service Industrial IT services Consulting Legal, finance Now leveraging this beachhead to enter other sectors

Do you need to raise funds? How much money do you need? What will be the valuation? What do you plan to do with the funding? Will you get strategic assets beyond funding? Is the timing right? Do you have the support of your existing investors? What are your alternatives?

Case for change Team Differentiation Scalability Traction

Investing in GLOBAL INNOVATION

Intel Capital Mission Make and manage financially attractive investments in support of Intel s strategic objectives STRATE GIC FINANCI AL A Stage Agnostic and Long-term Investor

Technology Focus Mobile Internet Enhance Client mobile platform capabilities Digital Home Digital Enterprise MVS Consumer Internet through WiMAX eco-system enabling, mobile apps & content framework, comms / compute SoC elements Content distribution over IP, digital media, gaming, education, connected home applications Web-based consumer apps, services and infrastructures (social, e-comm, search, advertising) (Manageability/Virtualization/Securit y), Cloud Computing, Storage & Information Manufacturing, Mgmt, vpro /and PES, HPC. Software Application Memory Services and Infrastructure Advanced Materials, Fab Equipment, Services, and Digital Health EDA Tools; Internet and Cloud Computing, Memory Ecosystem & Disruptive Software Technologies; for CMDs, Visual Computing for Digital Health Apps & Devices graphics Clean intensive software. Distributed Generation and Technology Storage, Transportation, Consumption Efficiency, Transmission and Distribution

Intel Capital Investments 2007 2008 YTD 2009* Since 1991 $639M $1.59B $291M $9.5B+ New Investments 77, $554M 62, $436M 26, $89M 1,050+ Companies International Dollars 56% 62% 36% 35% Dollars Invested Exits Excluding VMWare Excluding Clearwire 11 IPOs, 2 IPOs, 2 IPOs 175 IPOs, 23 Acquisitions 19 Acquisitions 10 Acquisitions 241 Acquisitions *As of Nov. 15, 2009

What We See for 2010 Q1-Q3 2009 portfolio maintenance and triage Q4 2009 focus shifts to new deal opportunities Stabilized environment more conducive to financing Entrepreneurs AND VCs much more reasonable 1H 2010 Pipeline is robust Expect new deal count to pick up

Successful Investments & Exits Investments Exits: Mergers & Acquisitions (USA) Acquired by Irdeto US US China Japan Korea US (Sweden) Acquired by Sun (USA) Acquired by Cisco US Taiwan US (Israel) Acquired by NDS Group (India) Acquired by GTL Vietnam India Chile *Other marks and brands are property of their respective owners (USA) Acquired by Macrovision (USA) Acquired by Virgin USA

SuccessFactors (SFSF) Solves the Execution Gap Strate gy Execution People Performan ce At IPO Busines s Alignme nt June 2008 User s 2.0 M+ 3.7 M+ Custome rs 1,400 + 1,950 + Largest Deployment 85 K 300 K Result s Oct 2009 5.4 M+ 2,800 +420 K

Software M&A Volume/Aggregate Value The volume of software M&A has fallen materially since the credit crisis became acute in October 2008 A modest recovery in volume and aggregate value began in Q2 2009 Source: Industry research, public documents and SDC as of 1/8/10 Note: Divestitures included as private company transactions

Software M&A Valuation Dynamics Deal volume improving, BUT valuations significantly below historical norms New Normal?

Common Board Room Themes in M&A 2010 Outlook: Risk? or Recovery? Is now exactly the right time to consider a sale? Or exactly the wrong time? I already squeezed out costs where can I find growth? (Hint: M&A) Can I spend all my free cash now? Is it ok to issue my [undervalued] stock? Once in a lifetime deals are out there and cash is cheap

SaaS Consolidation Wave to Come? Cash on Balance Sheet from latest Quarterly filings $14.9B $3.5B Cash or Cash Equivalent Latest 10Q on 11/2009 Liquid Assets Latest 10Q on 09/2009 Most recent Capital Raise activity $500M Convertible Senior Notes 12-Jan-2010 Note: All figures in $151M $215M Secondary Offering 25-Nov-2009 Secondary Offering 26-Oct-2009

Selected SaaS Acquisition Considerations Platform consolidations Buy and Stitch Private Equity Platform Roll-ups Bedford Funding: Authoria-PeopleClick Vista Equity Partners: SumTotal 100% platform migration TLEO-Vurv Omniture-Visual Sciences Salesforce.com-InstraNet METRICS, METRICS, METRICS Recurring revenues: Contract period, Seats, $ value, retention New Bookings: New customer adds, Upselling Margins. Cash Flow Visibility DEFERRED REVENUES

Q&A Brian Klemenhagen Senior Principal TripleTree, LLC Avinoam Nowogrodski CEO Clarizen Venu Pemmaraju Investment Director Intel Capital Seksom Suriyapa VP, Corporate Development SuccessFactors