1. Progress Software Corporation
Corporate Overview, Vision and Roadmap
Hub Vandervoort Chief Technology Officer Enterprise Infrastructure

2. Presenter Background
Hub Vandervoort Chief Technology Officer Enterprise Infrastructure
8 years with Progress
Prior roles as VP Services for Sonic and CTO of Financial Services
Former Co-Founder of three Start-up Companies Early pioneer in Messaging Middleware and Web

3. Progress Software Mission
To deliver superior software products and services that increase business effectiveness by empowering our partners and customers to dramatically improve application development, deployment, integration and management
Key Take Away: We’ve always been about infrastructure… across the entire life-cycle

4. Progress Software Market Presence
Application Development, Deployment, Integration and Management Products…
… at over 60,000 organizations
… and over 5 million users
… in over 140 countries
…including over 90% of the Fortune 100
Key Take Away: Large ISV/OEM channel, creating an eco-system of $5B lic. and $3B svcs. ($8B total) annually.
… offering over 5,000 applications
… deployed at over 100,000 sites

5. Progress Software Worldwide Development Presence
500 development staff across 14 development centers
500+ services and support coverage in 65 countries
10%
40% 7%
43%
Revenue Distribution
There are 13 development centers.
Belgium – 20
Dublin - 30
Cambridge, UK – 11
Canada – 21 (mostly Montreal or Toronto area)
Bedford, MA – 135
Nashua, NH – 80
Morrisville, NC – 41
Miami, FL;
Mt. View, CA;
San Diego, CA;
Sugarland, TX; and ‘Work from Home’ employees – 39
India – 53
Paris added
Ability to support rapid international expansion at any scale and in any region 5 5

6. Progress Software Corporation Non-GAAP Product Line Growth
FY02
% Revenue
FY08
% Revenue
OpenEdge %
Data
Infrastructure 20%
Enterprise
Infrastructure
16%
OpenEdge %
Sonic %
Key Take-Away: Growth of new businesses
WMA: growth in OE, growth in new products, new markets create new opportunities
$273M
$518M

7. Progress Software Corporation Q1-2009 Non-GAAP Revenue*
Growth:
11% 6% 1% 9% 7% 9% 4%
12% 4%
* Total non-GAAP revenue excludes purchase accounting adjustments for deferred revenue.
2006 Progress Software Corporation 7 7

8. Progress Software Corporation Non-GAAP Annual Revenue and EPS*
Non-GAAP EPS* ** **
* Non-GAAP results exclude amortization of acquired intangibles, in-process research and development, other acquisition related expenses, stock- based compensation, option review costs, impairment of goodwill, purchase accounting adjustments for deferred revenue and restructuring costs.
** Per Analysts Estimates obtained from First Call

9. Progress Software Corporation Balance Sheet ~ Recent Results
Feb 28, 2009
Nov 30, 2008
Feb 29, 2008
Cash
$124M*
$119M*
$224M*
Long Term Debt
$0.9M
$1.0M
$1.3M
DSO 72 61 68
* In addition, we had approximately $59M, $65M and $95M of investments in municipal and student loan auction-rate securities    classified as non-current as of February 28, 2009, November 30, 2008 and February 29, 2008, respectively. .
2006 Progress Software Corporation 9 9

10. Progress Future Vision & Roadmap Drivers
Events: The future computing paradigm
Open Source: The future software business model
SaaS & Cloud: The future delivery platform
WMA:Please take time (maybe add a slight) to explain the value of Open Source and the value Open Source will have or could have for our OE base.
WMA: Events, in the past we only had batch processing, Progress strength is and was real time processing of data in the admin environment. Now we are capable of running processes real time on an event basis (CEP) 10

11. Progress ‘Event-Driven’ SOA Portfolio
Business Velocity
Distribution
Heterogeneity
Quality of Service
Real-world Event-driven SOA
WMA: mixed (product) environments can bring extra (high) value 11

12. Event-Based Technology Roadmap
Markets with strong event oriented underpinnings
Enterprise Integration
XTP
BAM/BEM
Web2.0/RIA EI
Enterprise Integration (messaging-centric)
Extreme Transaction Processing
Business Activity Monitoring
Web2.0 Rich Internet Applications
Machine to Machine (embedded systems)
‘Management Service Bus’
XTP
MSB Management Service Bus
M2M
BAM
RIA
M2M
MSB
How is Progress SOA Portfolio Positioned? 12

13. Event-Based Technology Roadmap
Application Facing
User Facing
Enterprise Integration
XTP
BAM/BEM
Web2.0/RIA
MSB Management Service Bus
M2M
System Facing 13

14. FUSE Services Framework
FUSE Product Line
Open Source Initiatives
FUSE: Open Source for the Enterprise
Based on Apache CXF (JAX-WS)
Services Enablement: Lightweight, pluggable, extensible services framework and service enablement
FUSE Services Framework
Based on Apache ActiveMQ (JMS)
Reliable Messaging: High performance, reliable messaging for tying together Services across a SOA or Integration Pattern
FUSE Message Broker
Based on Apache Camel (EIP)
Integration Components: Easily defined process routing based on standard Enterprise Integration Patterns definitions
WMA: I would suggest to add one sheet explaining OpenSource, values / financial model / ..
FUSE Mediation Router
Based on Apache ServiceMix (OSGi & JBI)
Deployment Container for integration components in a standards based way.
FUSE ESB 14 14 14

15. Open Source Initiatives
FUSE: Branded Distributions
Frequent (often daily) snapshot releases
Highly collaborative development
Developer-driven process in Apache community
Test, documentation follow release, are driven by community
Apache ActiveMQ
Code,
Basic docs
Core development occurs within the Apache community
Community releases are more “cutting edge”
IONA adds testing, QA, docs, extras
Patches for customers are returned to community
Additional documentation and extras also contributed
The base code for every IONA open source product is fundamentally from an Apache project. In this example, we are showing ActiveMQ and its IONA counterpart, the FUSE Message Broker.
IONA releases the FUSE Message Broker in the same manner as a commercial product, with regular, tested releases. For this reason, an IONA release may lag the “latest and greatest” snapshot at the ActiveMQ project, but end users can adopt it with the testing, documentation, and promise of support that they would have with any commercially licensed product. At the same time, the IONA team may provide a patch to one of the FUSE releases for a customer faster than it could get the patch into the Apache project. Also, because the patch is specific to the issue, the customer needn’t risk taking on any of the other new code that may have been recently contributed to the ActiveMQ project.
This process depends on some key factors:
IONA is committed to the principles of the ASF, including support for its developer community and processes
IONA developers are also the leaders of the relevant Apache projects, and understand those projects fully
IONA as a company is committed to “productization” of open source, not “derivation” (I.e. forking or dual license)
Regular, stable, tested & supported releases
“Product-oriented” development
End-user focused process, thru feedback in IONA community
Test, documentation etc. are part of release
FUSE Message Broker
Code
Docs
Demos
Test
Interop
Support
Licensing
Assurance
FUSE Subscriptions: Enterprise-grade tools and support 15 15

16. Open Source Initiatives
Extending Open Source Leadership
Continue investment in open source project leadership and participation
Cross-pollinate technology within commercial and open source offerings
Enterprise Integration Patterns and Itineraries
Unified provisioning and management
Qualities of Service and High Availability
Embrace and extend adoption of key standards – Spring Framework and OSGi 16 16

17. Future: The SOA “Cloud” of Tomorrow
SOA of the future will be enabled by infrastructure capabilities “in the cloud”…
Transport Policy Semantics
Hardware OEMS
SaaS / PaaS / IaaS
Managed Services
Outsourcers
Telecom Equipment & Network Providers
Process Analytics Information (caching) Resource Governance
WMA: Maybe one sheet to explain cloud computing
Traditional IT form factors will shift to virtualization and delivery models built from core capabilities proven in the enterprise IT domain 17

18. Progress Software Partners Achieving Leadership in SOA and SaaS
500+ Partners deliver or Modernize SOA Applications with OpenEdge10
Over 250 Progress Application Partners deliver more than SaaS applications
Partners who modernize are growing 8X faster than those who have not
Rapid growth in SaaS usage (over 25%)
Partners are Quickly Moving to SOA with OE10
Partner Customers are Accepting SOA
Partners that Modernize Sell More
Partners are selling more Sonic indicating acceptance of SOA by both Partners and their Customers
"Progress has mastered the ISV business model, which it has successfully executed over the past 26 years. Progress has consistently maintained a strong relationship with its ISVs through a concentration on both development and sales support." Carol Olofson, IDC
Bluebird: Created an SOA based on SaaS for the auto rental market to reach new geographies and markets and grow the business 20%+
IRMS/IWS: Leveraged a traditional warehouse management application to enter a new market for Emergency Medical Response
Manuvis: Saved their customer Premier Manufacturing more than $1 million in operating costs with their SOA-Based Application using OE10, Apama and Sonic ESB
ProAlpha: Leveraging OE10, Sonic and SOA -- seeing performance and functionality gains on the magnitude of 3X—a huge benefit to their customers.
Amadeus: Delivering a new product to a new market leveraging SOA with OE10 and Sonic
SNEDA: Leveraged SOA and SaaS to expand the market for Social Housing Management into Commercial Property Management 18

19. Progress SOA Portfolio Evolution—Summary
Strategic Advancements via Acquisition AND Internal Innovation
major OpenEdge innovations
XML
- SAX
- ProDataSet
Web-Services
ABL Consume & Produce
OE-Sonic Interoperability
- Eclipse Dev & Debug
- Adapters
Native Container invocation
OpenClient
- .NET & JAVA
OOABL & Structured Error handling
April 2007
WS-BPEL 2.0
SOA Management
Semantic Integration
April 2006
Eclipse development
Advanced Web services
Released Continuous Availability Architecture (CAA) Technology
June 2004
Unique, patented HA
World’s First Enterprise Service Bus (SonicXQ)
March 2002
Released DataDirect XQuery September 2005
internal innovations
DRA patents
CAA patents
XQuery patents
Distributed Debugger patents
Acquired
Actional
January 2006
Pantero
Introduced DataXtend SI
December 2006
eXcelon
December 2002
XML database & tools
Neon
December 2005
Apama
April 2005
strategic acquisitions
WMA: for the audience to explain that we invested a very large amount of money to bring OE to the next level, maybe quantify
OpenEdge Open Clients – native interfaces to .NET, Java, and web services allowing highly performant and standard integration capabilities as well as hybrid platform applications.
OE Web Services support – ABL language constructs as well as dev and deployment tools for turning OE application logic into standard web services and for OE applications to be able to consume web services.
OOABL – Object-oriented language constructs were added to the 4GL, marking naming convention move to the ABL (Advanced Business Language).
XML support – added to the OE ABL and enhanced over many years (~9+ yrs) for creating and manipulating XML data using industry standard xml parsers. DOM and SAX models are supported with schema validation for producing and consuming xml and standard methods were added to temp-tables and prodatasets to make this easy.
OE-Sonic interop – MQ and ESB (via web services) adapters as well as the newer native invocation mechanism so that ABL logic can be run natively from Sonic (not via web services).
March 2003:
Gartner coins the term ‘ESB’,
backbone for ENS
2007
2006
2005
2004
2003
2002

20. Ongoing Commitment and Investment in Independent, Heterogeneous SOA
Strengthens our position as leader in independent SOA infrastructure
Extends the reach of the Progress SOA portfolio
Supports and deepens relationships with IONA customer base
Leverages innovation in open source
Expands our world-class team =
Establishes Progress as a SOA Quality, Validation and Management leader with a complete lifecycle approach
Adds design-time SOA governance
Meets quality, validation and management needs from pre-production through production
NOTES on Mindreef section:
Mindreef develops and markets the award-winning Mindreef® SOAPscope® products, which enable different IT users including business analysts, architects, developers, testers, operations and support staff to build, deploy, and maintain better software at each phase of the SOA, Web service or composite application development lifecycle.
Back in January 2008, Progress introduced the concept of real-world SOA, which embodies three key challenges: Distribution, Quality of Service (QoS) and Heterogeneity. Mindreef’s core competency in quality and validation directly aligns with and strengthens QoS, where QoS helps organizations strive for a SOA that is fast, reliable, scalable and secure.
Mindreef also brings a new dimension to SOA governance, which is important to the success of any SOA initiative. Currently Actional addresses runtime SOA Policy Management and SOA monitoring. Mindreef enhances design-time SOA policy management with policy authoring and policy checking to ensure SOA quality and validation. The marriage of the Actioanl and Mindreef approaches provides best-in-class technology at each phase of the service lifecycle.
Both Actional and Mindreef focused on a common goal: ensuring that services meet the expectations of their end-users (customers, partners, business users, etc.).  But, each organization approached the problem from a different end of the spectrum.  Actional focused on the deployment and production side of the spectrum — but found that customers were asking to put Actional capabilities on each developer’s desktop, to bring Actional earlier in the lifecycle.  In contrast, Mindreef focused almost exclusively on the pre-production side of the lifecycle.  And Mindreef customers asked how to leverage Mindreef capabilities in production.  So, the marriage of these two product lines fills the entire spectrum.
With the combination of Actional and SOAPscope, Progress is the first and only company to address the entire SOA lifecycle with best-in-class SOA quality and validation capabilities and industry-leading runtime governance capabilities, ensuring the success of SOA deployments. = 20

21. Progress Software and the Evolution of IT
Infrastructure Software
Develop, deploy, integrate and manage business applications
Business Acceleration Architecture
Through the evolution of IT Paradigms:
Service-Oriented Architecture (SOA)
Data-Services Architecture +
Event-Driven Architecture (EDA) +
Web
One constant:
Progress understands the infrastructure requirements for great business applications
WMA: key element here is that OE is or can be used as a solid basis
Client-server
Host-centric

22. Information Provisioning
Pipeline Today
Securities Master
Policy Master
Inventory Master
Customer Master
Information Provisioning
System Health
Business Performance
Governance, Risk and Compliance (GRC) Surveillance
All Pipelines have to important ‘Accelerators’:
Information Provisioning
Process Visibility
Information Provisioning is concerned with delivery of critical operational data necessary for pipeline steps to perform work
E.g. All steps in Order to Cash need a ‘single view’ of product and customer
Process Visibility is concerned with surfacing critical information about the pipeline behavior and exceptions
This can be viewed from three perspectives
IT Operations Support (pipeline function)
Business Performance Measurement (SLA, yield, etc.)
Supervisory Surveillance (Governance, Risk, Compliance)
Business Visibility BI

23. Business Velocity Is Increasing
Strategic Imperative: Companies must continuously find ways to speed up their business to respond to customer demands and competitive pressures.
same-day service
mail express fax Document transfer
Business
Requirement
Algorithmic trading
100 ms
20 ms
Reduce
processing time
Airline operations
20 min
30 sec
Design Strategy
Call center inquiries
8 hr
10 sec
Track financial position
5 min
1 day
STP, zero-latency enterprise
Supply chain updates
1 day
15 min
Phone activation
1 min
3 days
1 week
0.5 hour
Refresh data warehouse
Trade settlement
5 days
2 hrs.
Build-to-order PC
4 weeks
1 day
The Business Pipeline
Pipeline Velocity is Accelerating in all businesses
E.g.
Financial Trading is 10x the volume of 5yrs ago
SLAs on most manufacturing is half what it was 10 years ago
Virtually all retail fulfillment is next day ship… remember “allow 4-6 weeks for delivery”? It wasn’t that long ago.
Note’s from Roy’s presentation:
Many business managers are focused on reducing the time it takes to execute their business processes and activities. Speed underlies many modern management strategies, including the zero-latency enterprise (ZLE), "time-based competition," straight-through processing (STP), and "just in time" inventory (note that real-time enterprise and event-driven enterprise generally are synonyms for ZLE). When an order is placed online, the expectation is that the goods will arrive "faster" than in the past. When someone applies for an insurance policy or submits a claim, he or she expects a quicker decision and more visibility into the process. These expectations require remaking supply, distribution, service and marketing infrastructures. A classic example of increased business velocity can be found in PC manufacturing. The entire process — talking to the customer, configuring a system, manufacturing, testing, shipping and transferring funds from the customer's bank account — takes less than 24 hours (in some cases). Short "quote to cash" cycle times require fast, closely knit applications, often implemented using EDA, with or without BPM.
Action Item: Business managers and analysts must identify which of their business processes should be accelerated to produce meaningful improvements in business results. Not all processes need to run fast.
Typical Business SLAs Seconds
Source: Gartner, Inc.

24. Critical Observations
A key success factor is the alignment between the velocity of the pipeline in relation to the velocity of provisioning and visibility
This relationship is not well understood and often overlooked by both business and IT leadership
Establishing a consistent means of measuring and monitoring this relationship can:
Avoid unnecessary errors
Skirt unnecessary expense
Diminish and contain the risk of catastrophic events
A key success factor is the alignment between the velocity of the pipeline in relation to the velocity of the ‘Accelerators’
If this relationship falls out of alignment, serious consequences can result
This relationship is not well understood and often overlooked by both business and IT leadership
Establishing a consistent means of measuring and monitoring this relationship can:
Avoid unnecessary errors
Skirt unnecessary expense
Contain and diminish the risk of catastrophic events

25. The Progress Product Portfolio
SOA Management
Data Connectivity
Application Platform
Mainframe Integration
Enterprise Service Bus
Complex Event Processing
Data Interoperability
Enterprise Messaging
Enterprise Service Bus
Enterprise Messaging
SOA Management
Data Interoperability
Complex Event Processing
Mainframe Integration
Key Take Away: Un-stack principles
Independent, Heterogeneous SOA
Category-Leading Products
Robust and interoperable
Deploy incrementally
Works with new and existing IT infrastructure assets
No cross-product dependencies
Platform neutral; No vendor lock-in
Application Platform
Data Connectivity 25

26. OE Present Status OpenEdge is the largest product in Progress line-up
Ranked the #1 embedded database by IDC
Development is in line with (primarily driven by) the partner base
Actively supporting several major partner frameworks
Strong recent .NET support features and accelerated alignment with contemporary UI and AJAX/WEB technology
Renewed emphasis on Progress brand recognition, building on the already strong brand awareness in the underlying brands (new CMO, new marketing talent, field marketing led from the UK)
Any decline seen in OE base is…
Attributed primarily to FX ‘head-wind’ wrt revenue and Consolidation of customers wrt license counts
Is concentrated in end-user base, but is largely offset by:
Stronger/larger ISV partners
Exceptional growth in SaaS related use of OE
Greater than 20% of the top 300 ISV partners currently use one or more portfolio products in addition to OE

27. OE in the Progress Strategy
OpenEdge is a fundamental part of the future Progress strategy
Strong cash flow/profitability for growth
Major Channel for new products (for certain ‘new’ products, as much as 30% of revenue comes from OE channel/base)
Over 1500 active partners, >half are growing
Substantial route to SaaS/Cloud market
Over 250 SaaS/Cloud partners in OE base
Those doing SaaS are growing >25% Y.o.Y. and average 16X faster growth than partners not doing SaaS

28. OE Integration with Progress Portfolio
SOA Portfolio products are, and will continue to be further, integrated with OpenEdge
First-Class integration with Sonic (native WebServices capability and ESB integration available in tooling, services and data-bindings)
Actional OE Interceptor coming soon
DataXtend Semantic Integrator (DXSI), Apama and Shadow integrated via ESB (enhanced tooling, native data type compatibility and special service types all forthcoming in future releases)
Major component of Progress’ future SaaS, Cloud and Virtualization Strategy

29. Progress Commitment to OE Engineering
OpenEdge is the largest R&D investment
Of 607 total PSC Product Related Personnel Working Across 13 Products…
122 are dedicated OE engineering
35 additional in QA, P&D, DOC/EDU and IT
Not including Tech Support or Field Services (which adds hundreds more that are OE certified and focused as a primary area of responsibility)
Committed to at least one major OE release per year
e.g B will have new features for new markets, e.g.: DB Encryption, Pro Data SetJSON, new tooling, Actional integration, and additional UI support, etc.

30. 2006 Progress Software Corporation30