Simplify your business
1
© 2004 Progress Software Corporation
PUG Norway
Christian Büll
Managing Director
Progress Software Scandinavia
We empower you, and …
Develop, Deploy, Integrate, and Manage
Simplify your business
We simplify your job of
creating the world’s best
business applications.
3
© 2004 Progress Software Corporation
Progress Software Corporation
Mission
Development, Deployment, Integration and Management
for Business Applications
Simplify your business
“To deliver superior software products
and services that empower our partners
and customers to dramatically improve
their development, deployment, integration
and management of quality applications
worldwide”
4
© 2004 Progress Software Corporation
Progress Software Corporation
Market Presence
Application Development, Deployment,
Integration & Management Products …
… to 60,000 end-user companies
… and over 3 million users
… in over 120 countries
Simplify your business
…including over 70% of the Fortune 100
… with over 2000 Application Partners
… offering over 5000 applications
… deployed at over 100,000 sites
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© 2004 Progress Software Corporation
Progress Software Corporation
Operating Companies
Simplify your business
Application
Development,
Deployment,
And Management
Standards Based
Data Connectivity
Business and
Application Integration
6
© 2004 Progress Software Corporation
the
Progress
Company
Progress Software Corporation
Operating Companies
Simplify your business
Application
Development,
Deployment,
And Management
Standards Based
Data Connectivity
Business and
Application Integration
7
© 2004 Progress Software Corporation
the
Progress
Company
DataDirect
Leader In Data Connectivity
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Simplify your business
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Leader in connecting software to data
#1 provider of drivers for data connectivity
Industry thought leader on standards
Revenue $30MM/yr +/Revenue 82% US, 13% Europe, 5% ROW
Development in USA and Belgium
© 2004 Progress Software Corporation
DataDirect
Broad Customer Base
Selected ISV Customers
Simplify your business
Selected Direct Channel Customers
9
© 2004 Progress Software Corporation
DataDirect
Synergies with PSC
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Simplify your business
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Superior standards-based products
Solid profitability
Complementary strategies
Synergistic growth opportunities
10 © 2004 Progress Software Corporation
Progress Software Corporation
Operating Companies
Simplify your business
Application
Development,
Deployment,
And Management
Standards Based
Data Connectivity
Business and
Application Integration
11 © 2004 Progress Software Corporation
the
Progress
Company
Sonic Enterprise Service Bus:
A Better Way to Integrate
Simplify your business
Integration Brokers:
Enterprise Service Bus:
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Designed to connect a
handful of resources
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Distributed and designed
to connect the enterprise
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Largely proprietary
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Fully standards-based
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Require lengthy
consulting engagements
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Leverages in-house IT
staff
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Continue to add complex
functionality at high cost
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Cost-effective foundation
that can be layered upon
12 © 2004 Progress Software Corporation
Sonic Software:
Fastest Growing Integration Company
Sonic
Business Integration
Suite
Sonic ESB,
World’s 1st ESB
SonicMQ
Acquired eXcelon
XML product leader
Simplify your business
Founded
1998
1999
2000
2001
Awards and Recognition:
#1 JMS product
Pioneer in Integration middleware
Standards contributions
13 © 2004 Progress Software Corporation
2002
2003
2004
Sonic Software:
Fastest Growing Integration Company
Total Sonic Product Line Revenue (Millions)
FY00
FY01
FY02
FY03
FY04
$40
Projected*
$30
$23
Simplify your business
$20
$15
$8,0
$10
$2,4
$0
14 © 2004 Progress Software Corporation
*Per Analysts’ Estimates
Progress Software Corporation
Operating Companies
Simplify your business
Application
Development,
Deployment,
And Management
Standards Based
Data Connectivity
Business and
Application Integration
15 © 2004 Progress Software Corporation
the
Progress
Company
the Progress Company
Leadership – Products + Partners
Why We Win …
APs provide “precise fit” apps with high ROI
Low total-cost-of-ownership.
Aberdeen Group
Progress OpenEdge 5-year visible cost of ownership is
Simplify your business
50% < Microsoft Platform and 90% < Oracle Platform.
#1 in embedded database market.
16 © 2004 Progress Software Corporation
IDC
the Progress Company
Revenue by Distribution: FY’03
Unique Relationship with ISVs and ASPs
Application
Partner 65%
Simplify your business
End-User 35%
17 © 2004 Progress Software Corporation
Simplify your business
the Progress Company
Presence Across Major Industries
Food
10 of the top 10 companies
Automotive & Parts
10 of the top 10 companies
Aerospace & Defense
8 of the top 10 companies
Chemical
8 of the top 10 companies
Commercial Banks
8 of the top 10 companies
Pharmaceutical
7 of the top 10 companies
Industrial Equipment
8 of the top 10 companies
18 © 2004 Progress Software Corporation
Progress Software Corporation
PSC-Wide Accomplishments
Simplify your business
Application
Development,
Deployment,
And Management
Standards Based
Data Connectivity
Business and
Application Integration
19 © 2004 Progress Software Corporation
the
Progress
Company
Progress Software
Recognition in the Market
Hot Shots 200 Up & Comers
Simplify your business
F O R B E S
October 27, 2003
20 © 2004 Progress Software Corporation
Simplify your business
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PSE Pro v5.1
Replication v2.0a
Web Services Toolkit
Orchestration Server v5.0
XML Server v5.0
Distributed Enterprise v2.0
Integration Workbench v5.0
2003
DEMS v2.0 PSE Pro v6.1 Releases
Replication Plus v2.0a
v1.3 Stylus Studio v4.6
Trading Accelerator
BPM v2.0
PSDNv2003
Stylus Studio v5.0
v5.0
Management v2.1a
v5.0
XIS v3.1
v6.1
v6.1sp1
Real Time Event Engine v3
Bridges v5.0
PDRE v7.0
Management v2.1a
Studio v2.1
Progress Dynamics v2.0
21 © 2004 Progress Software Corporation
Progress Software Corporation
Financial Results
Simplify your business
Application
Development,
Deployment,
And Management
Standards Based
Data Connectivity
Business and
Application Integration
22 © 2004 Progress Software Corporation
the
Progress
Company
Progress Software Corporation
Financial Results - Annual
Earnings Per Share
Total Revenue
$Millions
$
$400
$361*
1.00
$.85*
$309
$.72
$273
Simplify your business
$.54
$0
$0
FY02
FY03
FY04
FY02
FY03
FY04
Growth: 4%
13%
17%
Growth: 17%
33%
18%
*Per Analysts’ Estimates – EPS before deducting $.15 to $.18
23 © 2004 Progress
Corporationrelated charge and amortization of intangibles
oneSoftware
time acquisition
Impact of FINANCIAL Success
Widespread Financial Press Coverage
Needham & Company (Richard Davis) PRGS
“Upbeat Analyst Meeting: It’s Good to Generate Cash”
Progress remains our favorite small cap stock. The firm continues to
grow in today's difficult IT environment.
Simplify your business
McDonald Investments Inc. (B. Williams) PRGS
We are maintaining unchanged our BUY…
PRGS is attractive …the Company continues to drive business through
the strong indirect distribution channel for its core product, …over 90% of
revenue, while its new, faster-growing businesses are nearing the size
needed for material upside contribution.
24 © 2004 Progress Software Corporation
Progress Software Corporation
2004 Corporate Goals
1.
Continue strong support
of our new companies
2.
Maximize the potential of
the Progress Company
Simplify your business
Create new business
3. opportunities
25 © 2004 Progress Software Corporation
Progress Software Corporation
2000 Application Partners
with 5000 applications
Leader in Embedded Database
Pioneer in Database and
Application Replication
Simplify your business
Leader in Data Connectivity
Leader with Enterprise Service Bus
in Standards-Based Integration
26 © 2004 Progress Software Corporation
the
Progress
Company
Word on the street …
Simplify your business
“Progress Software is a rarity in the
software world - a firm with a solid
franchise, strong cash flow and consistent
growth… significantly better than just about
every applications software vendor.”
Needham & Company
17 June, 2003
27 © 2004 Progress Software Corporation
Word on the street …
Simplify your business
“A key element of Progress’s success has been its
understanding and skillful execution of the
embedded software model, which includes a
licensing policy that delivers recurring revenue to
Progress without disturbing the pricing profile of
client ISV companies, excellent technical support
for client ISV companies, and a relationship with
those companies based on constant consultation .”
Forrester
17 November, 2003
28 © 2004 Progress Software Corporation
#84 in Five Year Return on Equity
Simplify your business
Overall
Rank
164
29 © 2004 Progress Software Corporation
Name
Progress
Software
State
MA
5-Yr Avg ROE
Rank
84
Sales
Rank
78
Profits
Rank
99
Market Value
Rank
65
Simplify your business
Word on the street
• Progress has first rate development software in
every area from database through to deployment
and its Open Edge product suite has an awesome
level of capability.
• In 2004, Progress will undoubtedly continue to
dominate the ISV market with its tools, as it has
for years and will probably grow market share as
it has also slowly been doing for years.
• It will probably also receive less attention than it
deserves, as it has done for years.
- Robin Bloor, IT-Director,
January, 2004
30 © 2004 Progress Software Corporation
Progress Low Cost Of Ownership
Simplify your business
“The lowest "visible" cost of ownership
(VCO) … belongs to Progress…Over a
five-year period, Aberdeen estimates that
the Progress VCO is, on average, at least
40% less expensive than Microsoft SQL
Server and 90% lower than Oracle.”
Aberdeen Group
April, 2003
31 © 2004 Progress Software Corporation
Progress Software in the market
Positioning and competitive edge
Simplify your business
We know the market and
have over 20 years of
experience
32 © 2004 Progress Software Corporation
The Competitive landscape
SAP
Oracle
IBM
Simplify your business
The
Progress
Partners
Applications
Marketplace
Microsoft
$64B - 2005
33 © 2004 Progress Software Corporation
Too Expensive
Inflexible
Just a visit?
Sector Expertise
Speed Accessible
Personal
No Competition
Indifferent
Impersonal
Best
Value
Progress Best value:
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Simplify your business
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Lowest TCO
Highest Trade-in value
Backward and upwards compatibility track
record
Offering freedom of Choice
Standard based
No competition with partners
34 © 2004 Progress Software Corporation
Progress Software Corporation
2,000 Independent Software Vendors Worldwide
Simplify your business
Our focus is the growth
and profitability of our
Application Partners.
35 © 2004 Progress Software Corporation
Watch out for this!
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Simplify your business
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March 04
April 04
May 04
May 04
June 04
June 04
Sept 04
Ongoing
PUG Meeting Norway
OpenEdge 10 special
Business Empowerment
Sonic Integration Workshop
OERA Seminar
Progress Exchange Las Vegas
Developers World Madrid
Technical Empowerment
Special Workshops
Trainings
36 © 2004 Progress Software Corporation
Simplify your business
37 © 2004 Progress Software Corporation