1. CONNECT EVERYTHING. ACHIEVE ANYTHING. ™ SONIC SOFTWARE Changing the Economics of Integration GREG O’CONNOR President February 19, 2004

2. 2© 2003 Sonic Software Corporation Agenda Recap: Analyst Day 2003 Integration Market: The Move to ESB Goals for 2004 Health of the Business

3. 3© 2003 Sonic Software Corporation Goals from Analyst Day 2003 Redefine enterprise messaging landscape with SonicMQ ®

4. 4© 2003 Sonic Software Corporation #1 Independent Messaging Vendor * in millions USD

5. 5© 2003 Sonic Software Corporation Goals from Analyst Day 2003 Redefine enterprise messaging landscape with SonicMQ ® Establish Enterprise Service Bus category with SonicXQ ™

6. 6© 2003 Sonic Software Corporation Emergence of ESB Category “ESB … will revolutionize IT and enable flexible and scalable distributed computing for generations to come.” Sally Hudson “A new form of enterprise service bus (ESB) infrastructure – combining MOM, Web services, transformation and routing intelligence – will be running in the majority of enterprises by 2005” Roy Schulte

7. 7© 2003 Sonic Software Corporation Emergence of ESB Category

8. 8© 2003 Sonic Software Corporation Goals from Analyst Day 2003 Redefine enterprise messaging landscape with SonicMQ ® Establish leadership in Enterprise Service Bus category with SonicXQ ™ Deliver next generation standards-based integration suite with BPM, XIS and Stylus

9. 9© 2003 Sonic Software Corporation Sonic Business Integration Suite

10. 10© 2003 Sonic Software Corporation Deliver Next-Generation Suite

11. 11© 2003 Sonic Software Corporation Goals from Analyst Day 2003 Redefine enterprise messaging landscape with SonicMQ ® Establish leadership in Enterprise Service Bus category with SonicXQ ™ Deliver next generation standards-based integration suite with BPM, XIS and Stylus Continue to be industry’s fastest-growing middleware company

12. 12© 2003 Sonic Software Corporation Sonic Software Maintenance 21% Product 56% Services 23% FY03 Revenue by Category

13. 13© 2003 Sonic Software Corporation FY03FY00FY01FY02 Changing the Economics of Integration Total Sonic Product Line Revenue (Millions)

14. 14© 2003 Sonic Software Corporation Agenda Recap: Analyst Day 2003 Integration Market: The Move to ESB Goals for 2004 Health of the Business

15. 15© 2003 Sonic Software Corporation Application & Business Integration Market Composite of Industry Analyst and Sonic Software Estimates Overall vs ESB Opportunity

16. 16© 2003 Sonic Software Corporation $250k - $1M license and 5-7x consulting costs Projects average 20+ months to complete Fewer than 35% finish on time and on budget 85% rely on tactical, coded solutions Why We Had to Invent the ESB Because customers were paying too much for failed integration projects?

17. 17© 2003 Sonic Software Corporation Why We Had to Invent the ESB Because customers were paying too much for failed integration projects? Because ‘legacy’ integration products were beginning to crumble under their own weight?

18. 18© 2003 Sonic Software Corporation Enterprise Service Bus (ESB) Enterprise messaging –Reliable, secure interactions across the extended enterprise –Distributed deployment architecture for high scalability XML as native data type for document exchange Intelligent routing of business transactions –Itinerary, content and rule-based routing –Transformation of business data between applications Service container end-points –Web services, JCA and Application Server support –Unified management and monitoring of entire services network Building Blocks for Pervasive Integration Standards-based platform for reliable coordination of applications as loosely-coupled, event-driven services

19. 19© 2003 Sonic Software Corporation Why We Had to Invent the ESB Because customers were paying too much for failed integration projects? Because ‘legacy’ integration products were beginning to crumble under their own weight? Because customers in key industries could see how the intersection of technology trends and forces of competition in the marketplace were conspiring to generate requirements for a cost-effective, manageable, standards-based infrastructure that could reliably scale?

20. 20© 2003 Sonic Software Corporation Delivering Business Value: ABNA

21. 21© 2003 Sonic Software Corporation Delivering Business Value: Telecommunications Benefits: Improved customer service and retention Cost-effective regulatory compliance –Standards-based CLEC customer information access Flexible platform for future integration –14 major ESB projects underway Integrated provisioning, billing, customer care (OSS) for 20+ million wireless customers over 57 million access lines

22. 22© 2003 Sonic Software Corporation Delivering Business Value: National Retail Video Chain Benefits: Cost-effective connection with home office Improved visibility of retail inventory and ability to search “proximate inventories” Centralized configuration and management of in-store systems Accurate and timely reporting of inventory and sales reports Improved inventory management and expanded multi-channel operations for 1800+ stores

23. 23© 2003 Sonic Software Corporation Agenda Recap: Analyst Day 2003 Integration Market: The Move to ESB Goals for 2004 Health of the Business

24. 24© 2003 Sonic Software Corporation Goals for Analyst Day 2004 Redefine enterprise messaging landscape with SonicMQ ® –“Trust Your Middleware” Continue leadership in Enterprise Service Bus market –Raise the bar on platform capabilities Double the number of Sonic ESB customers –100 customers today –300 customers in 2005 Continue to be industry’s fastest-growing middleware company –40% year-over-year license revenue growth

25. 25© 2003 Sonic Software Corporation SonicMQ 6.0 Introducing “High Availability for the Masses” –Faster failover time <15 sec –No additional hardware required (Veritas, MS-Sun Cluster) Priced at $15K per high availability pair System Availability - current state of the market SMQTIBCOIBM Cluster of Brokers Multiple Clusters Failover Transparent to Client “Trust Your Middleware”

26. 26© 2003 Sonic Software Corporation Typical High Availability Configuration Additional software required to manage HA configuration Hardware locks used to detect failure –Difficult to distribute Failover requires recovery from disk –Up to 15-min delay Only “easy” operations can resume Server A Server A’ A’ Storage State Persisted to Shared Storage

27. 27© 2003 Sonic Software Corporation SonicMQ High Availability Messaging events sent to backup in real time Lightweight state engine on backup broker –Minimal CPU usage Dynamic database synching after failure of either broker Supports full broker functionality Broker A Broker A’ A’ Events: Persistent Messages Delivery Transactions Subscriptions Etc. “HA for the Masses”

28. 28© 2003 Sonic Software Corporation SonicMQ High Availability Each broker has a hot backup broker on another machine Failure detection based on network connection Transparent to client Transactional integrity during failover Once and only once delivery Broker A Broker A’ A’ Broker B Broker B’ B’ Broker C’ C’ Broker C Cluster Client Architecture 

29. 29© 2003 Sonic Software Corporation Making HA a Reality Common middleware failure conditions –Trapped messages Messages stuck “en route” in a failed broker –Duplicate messages Whether a message has been delivered is not always known in a failure and a duplicate is sent to be safe. –Out of order messages Reconnecting, particularly to another broker, can cause a mixed stream of new and old messages Whether 99% or 99.999% system-availability goal, you must compensate for these conditions to ensure that your business keeps running Where Your IT Dollars are Going Today…

30. 30© 2003 Sonic Software Corporation Continued Leadership in ESB Market Inherit *abilities of messaging infrastructure –“Trust Your Middleware” Enable Sonic ESB to run over WebSphere MQ Raise the bar on ESB performance and scalability Be first to market with standards-based initiatives –Web services interoperability (WS-*stack) –Java business integration (JSR-208) –Grid ecosystem (Globus)

31. 31© 2003 Sonic Software Corporation Agenda Recap: Analyst Day 2003 Integration Market: The Move to ESB Goals for 2004 Health of the Business

32. 32© 2003 Sonic Software Corporation Health of the Business Incorporated in 5 countries in EMEA 2003 Incorporated in Japan 2004 Established west coast development team Provided exit strategy for over 20 people from TIBCO/BEA in the past 12 months –7 developers –13+ Field people at all levels Increasing quota-carrying reps from 18 to 28 Field-Focused Expansion

33. 33© 2003 Sonic Software Corporation Expanding the Partner Channel NA Partners –Signed Partners25 –Trained Partner Consultants51 EMEA Partners –Signed Partners21 –Trained Partner Consultants140 Partner-influenced Revenue –200310% –200420%

34. 34© 2003 Sonic Software Corporation FY04FY03FY00FY01FY02 Changing the Economics of Integration Total Sonic Product Line Revenue (Millions) Projected* *Per Analysts’ Estimates

35. 35© 2003 Sonic Software Corporation CONNECT EVERYTHING. ACHIEVE ANYTHING.