B.V. JagadeeshPresident CEO 3Leaf Systems (CA, USA ) Chairman NetMagic Solutions pvt Ltd ( India )

February 15th 2008

© 2007 3Leaf Systems. All Rights Reserved. Proprietary and Confidential.

Is India all about outsourcing ?

© 2007 3Leaf Systems. All Rights Reserved. Proprietary and Confidential.

Services Vs Product

• Project Vs Product – Very different mind set

• You have to learn Architecture, Design, Development, Testing and documentation ( all combined into an end product )

• Building Intellectual Property is key to building long term value in the company.

© 2007 3Leaf Systems. All Rights Reserved. Proprietary and Confidential.

Business Strategy to Succeed

Product Strategy

GotoMarket Strategy

Execution – Having Right people both at Product Level and at Field Level.

© 2007 3Leaf Systems. All Rights Reserved. Proprietary and Confidential.

Challenges

• Wrong Positioning

• Time to Market• Features Missing

• Quality Issues

• Competition

•Building Proof of Concepts/Reference Customers

© 2007 3Leaf Systems. All Rights Reserved. Proprietary and Confidential.

Mitigating Risks

• Exodus and NetMagic Story ( Boot Strap with consulting $$ )

• Selling to Same Customer ( Customer Acq cost minimized )

• Virtualization very hot – Minimal resources trained and lots of things to be done.

© 2007 3Leaf Systems. All Rights Reserved. Proprietary and Confidential.

Some Key Opportunities

• Application Performance

• Testing Tools

• Licensing Libraries ( similar to in ECAD Business )

• End Products – Start with Domestic Market (Similar to Hua Wei )

© 2007 3Leaf Systems. All Rights Reserved. Proprietary and Confidential.

Its not about Outsourcing !

© 2007 3Leaf Systems. All Rights Reserved. Proprietary and Confidential.

Land of Contradictions