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An Introduction An Introduction to Xtremesoft to Xtremesoft Maximize the availability of your Maximize the availability of your applications on the Microsoft applications on the Microsoft platform.” platform.”

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An Introduction An Introduction to Xtremesoftto Xtremesoft

““Maximize the availability of your Maximize the availability of your applications on the Microsoft platform.”applications on the Microsoft platform.”

2004 2Introduction to Xtremesoft

Company History19981998 Company direction solidified as a result of work on COM+

in cooperation with Microsoft Began product development with major Microsoft end user $1.5M Seed round from Merrill Lynch Ventures (MLV) Expanded relationship with Microsoft, Signing a 3-year

development agreement with BizTalk Server group $5.8M Series B Round from JMI Equity Fund and MLV Hired Professional CEO Both AppMetrics products launched – June 2001 First international distributorships signed

19991999

20002000

20012001

20022002

2004 3Introduction to Xtremesoft

Senior ManagementSenior Management

Michael Dexter-Smith Michael Dexter-Smith ▪ ▪ CEOCEO Chief Executive Officer at VenturCom (6 Years)

and Carleton Corporation (4 years) Chris Smith Chris Smith ▪ VP▪ VP

Director Product Management – XtremesoftDirector Product Management – Xtremesoft Group Product Manager – IBM/LotusGroup Product Manager – IBM/Lotus

What is What is Application Application

Availability? Availability? How do you differentiate availability How do you differentiate availability

from management generally? And from management generally? And how does Xtremesoft add value?how does Xtremesoft add value?

2004 5Introduction to Xtremesoft

Application Application Availability Availability

Increases The ROIIncreases The ROI “By using AppMetrics, the availability of the

application has increased by a few percentage points. Considering for every one percentage point of additional availability a thousand man-hours of down-time is saved and hence results in millions of dollars in improved efficiency throughout the organization.”

—— American FamilyAmerican Family

2004 6Introduction to Xtremesoft

The Evolving Application The Evolving Application StackStack

More of the application is handled by More of the application is handled by standard componentsstandard components

System SW

Application

System SW

DBMS

System SW

DBMS

System SW

DBMS

Platform Evolution : Mainframe Client/Server Web EAI/B2B Web Services Platform Evolution : Mainframe Client/Server Web EAI/B2B Web Services

Application

ApplicationServer

System SW

DBMS

ApplicationServer

IntegrationServer

ApplicationServer

Application

IntegrationServer

ApplicationWeb Services

Application

Application

2004 7Introduction to Xtremesoft

Availability comes fromAvailability comes from Reliable hardwareReliable hardware Reliable Operating SystemReliable Operating System Managed NetworkManaged Network Managed DatabasesManaged Databases Successful Business TransactionsSuccessful Business Transactions

Availability RequiresAvailability Requires

Hardware Hardware OEMOEMMicrosofMicrosofttHP, HP, NetIQNetIQQuesQuesttXtremesXtremesoftoft

2004 8Introduction to Xtremesoft

Successful Business Successful Business TransactionsTransactions

CPU running, disks spinning – are CPU running, disks spinning – are transactions succeeding?transactions succeeding?

View computer systems in terms of View computer systems in terms of business work donebusiness work done Identify the list of discrete business Identify the list of discrete business

transactionstransactions How many execute? How many succeed?How many execute? How many succeed?

AppMetrics provides business AppMetrics provides business logic transaction informationlogic transaction information

2004 9Introduction to Xtremesoft

Competition For Competition For Managing The Application Managing The Application

StackStack

Systems HW/ OSSystems HW/ OSNetworksNetworks

DBMSDBMS

ApplicationApplicationServerServer

IntegrationIntegrationServerServer

Web ServicesWeb Services

Consoles: CA, Tivoli, NetIQ, Microsoft, BMCNetworking: HP, Micromuse, Concord Communications

Precise Software, Quest Software, BMC

Websphere/WebLogicWyle, Altaworks, Dirig, BMC

COM+ & .NETXtremesoft

MQ SeriesCA, BMC, Nastel

WebSphere(same as J2EE)

BizTalk Server

ApplicationApplication

No Market TodayNo Market Today

Emerging Market 2004Mainstream Market 2006-2007

Microsoft Microsoft DirectionDirection

Microsoft intends to make their infrastructureMicrosoft intends to make their infrastructureand packaged applications more reliable and and packaged applications more reliable and

scalable… But will leave the customer on their scalable… But will leave the customer on their own when it comes to making their custom own when it comes to making their custom

applications highly availableapplications highly available

2004 11Introduction to Xtremesoft

Market Trends 1999 – Market Trends 1999 – 2005 in Application 2005 in Application

DevelopmentDevelopment Enterprises are required to build new mission-critical Enterprises are required to build new mission-critical

applications in order to automate and enhance their business applications in order to automate and enhance their business processesprocesses A shift is underway from ‘stovepipe’ internal only apps, to web based

transactional type applications. Microsoft is the most cost-effective solutionMicrosoft is the most cost-effective solution

Inexpensive to deploy compared to the competition Microsoft owns the ‘developer’ tools market with Visual Basic Microsoft owns the ‘developer’ tools market with Visual Basic

and Visual Studio .NETand Visual Studio .NET The starting point is being controlled and evangelized

As a result, Microsoft’s share of the enterprise application server As a result, Microsoft’s share of the enterprise application server installations will grow installations will grow But by how much?

2004 12Introduction to Xtremesoft

What The Analysts SayWhat The Analysts SayAbout About Market SizeMarket Size

Meta GroupMeta Group Believes Microsoft’s share of the enterprise application server installations

will grow five fold, from 10% share of the market today, to 50% within the next three years

Gartner GroupGartner Group Recently in CIO Magazine, Mark Driver, Director of Research said, “Over

the next five years, we see two de facto platforms for a vast majority of e-business apps: Java and Microsoft... We don't see a clear winner. We expect a 40-40 split, or perhaps a 50-30 split in favor of Java.”

International Data CorporationInternational Data Corporation In their Performance and Availability Management Software Market

Forecast and Analysis, 2001-2005, IDC states, “the performance and availability management software market increased to $3.89 billion in 2000,” and then predicts, “this market is forecast to grow by 72% to reach $6.68 billion in 2005.””

2004 13Introduction to Xtremesoft

Microsoft Owns the Microsoft Owns the Platform: Platform:

The IS Groups Will FollowThe IS Groups Will Follow 6 Million+ Microsoft Visual Basic developers are using Visual 6 Million+ Microsoft Visual Basic developers are using Visual Studio .NET and Visual Basic .NETStudio .NET and Visual Basic .NET Visual Basic has a 3 to 1 advantage in developers over Java (Gartner Group)

To win the IS organization Microsoft will have to match proven traits To win the IS organization Microsoft will have to match proven traits found on platforms like UNIX and IBM’s Mainframesfound on platforms like UNIX and IBM’s Mainframes Reliability and scalability Sophisticated management tools Business application availability

Microsoft has the ‘will’ (and $$) to build a reliable platformMicrosoft has the ‘will’ (and $$) to build a reliable platform The base platform and development environment has always been their forteThe base platform and development environment has always been their forte But this infrastructure is difficult and complex effort, which leaves few resources to But this infrastructure is difficult and complex effort, which leaves few resources to

focus on management issues such as application availability focus on management issues such as application availability Which is why Microsoft if relying on industry leaders, namely XtremesoftWhich is why Microsoft if relying on industry leaders, namely Xtremesoft

2004 14Introduction to Xtremesoft

The Microsoft ViewThe Microsoft Viewon Managementon Management

Microsoft.Net ServersMicrosoft

.NET Servers

StorageStorageMgmtMgmt

SecuritySecurityManagementManagement

HostingHostingMgmtMgmt

NetworkNetworkMgmtMgmt

Performance Performance CapacityCapacity

MgmtMgmt

Base serverBase servermanagementmanagementprovided byprovided byMicrosoftMicrosoft

Value added andValue added andother ‘expert’ other ‘expert’ managementmanagementprovided by ISVsprovided by ISVs(like Xtremesoft)(like Xtremesoft)

XtremesoftXtremesoft

In The Market and Working!In The Market and Working!

2004 16Introduction to Xtremesoft

AppMetrics for AppMetrics for TransactionsTransactions

2004 17Introduction to Xtremesoft

Software ArchitectureSoftware Architecture

Mid-Tier

Analysis

Enterprise Mgmt

NT Event Log

PerfMon

AppMetrics Display

Email and Pager

Data Warehouse

AcquisitionAcquisition ActionAction

AppMetrics Manager

MTS

NT

COM+

SQL ServerOLAP Services

AnalysisAnalysis

Database

WebServer

n-T

ier

Ap

pli

cati

onn

-Tie

r A

pp

lica

tion

Our Customers Our Customers andand

the Marketplace the MarketplaceContinuing to Build A Strong, Continuing to Build A Strong, Referenceable Base of UsersReferenceable Base of Users

2004 19Introduction to Xtremesoft

Customer FeedbackCustomer Feedback "Thanks for all of your ongoing support btw...you guys "Thanks for all of your ongoing support btw...you guys

are absolutely one of the best vendors I've worked with!” are absolutely one of the best vendors I've worked with!” Pitney BowesPitney Bowes

Shelton, CT, United StatesShelton, CT, United States

““Again, thank you very much for your support and thanks Again, thank you very much for your support and thanks to your team. The customer service being provided is top to your team. The customer service being provided is top drawer!” drawer!”

5by5 Software5by5 SoftwareCalgary, Alberta, CanadaCalgary, Alberta, Canada

2004 20Introduction to Xtremesoft

A Sampling of Our A Sampling of Our CustomersCustomers

Financial ServicesFinancial Services Merrill Lynch Fidelity Investments GMAC-RFC ADP Dealer Services American Family

Insurance Skandia Banken

ManufacturingManufacturing Pitney Bowes Microsoft Corporation

MediaMedia International Data

Group

Public Public Sector/GovernmentSector/Government State of North Carolina Public Works and

Government Services Canada

Retail & HospitalityRetail & Hospitality Schwan’s Sales

Enterprises Meijer Corporation Simon Property Group

ServicesServices Peopleclick.Com eCollege WebTone

2004 21Introduction to Xtremesoft

Market Feedback from Market Feedback from Analysts and MicrosoftAnalysts and Microsoft

In September 2001, Xtremesoft was ranked as one of five, private companies to watch in SG Cowen’s analysis of the performance management sector.

Peter Kuper, Analyst with SG CowenPeter Kuper, Analyst with SG Cowen

“In a dedicated Microsoft environment, Xtremesoft will eventually [sic] benefit from tighter relations with the platform vendor...”

Jean-Pierre Garbani, Senior Industry AnalystJean-Pierre Garbani, Senior Industry Analystwith Giga Information Groupwith Giga Information Group

“Xtremesoft's powerful solution provides additional information and needed analysis for enterprises that have developed and deployed applications…”

Michael Risse, General Manager forMichael Risse, General Manager for .NET Servers at Microsoft Corporation .NET Servers at Microsoft Corporation

www.xtremesoft.cwww.xtremesoft.comom

““Maximize the availability of your Maximize the availability of your applications on the Microsoft platform.”applications on the Microsoft platform.”