1 Fred Amoroso President and CEO Macrovision Software Value Management

2 Dateline: 2008 SOFTWARE INDUSTRY ON THE BRINK? MAJOR PRODUCERS DECLARE MASSIVE LOSSES SHOW 1 st VIDEO “DOOM & GLOOM”

3 How Did We Get Here?  Explosion in complexity  Software industry seen as "inflexible" and unresponsive to changing customer demands

4 “Cut the Complexity”

5 Market Dynamics Vendor Enterprise

6 Vendor Enterprise Market Dynamics

7 Vendor Enterprise Market Dynamics

8 Vendor Enterprise Market Dynamics

9 The Role of Software Value Management Vendor Enterprise Software Development Management Software Inventory Management Software Value Management S o f t w a r e L i f e c y c l e M a n a g e m e n t

10 Vendor Enterprise The Role of Software Value Management

11 Enterprise Building Blocks of Software Value Management Software & Hardware Vendors

12 Sept 2005 SoftSummit Pricing & Licensing Study…. Enterprises Software & Hardware Vendors

13 ISV’s are not Listening to Their Customers SOFTWARE VENDOR vs. ENTERPRISE Satisfaction with Pricing & Licensing Strategy N=484 ISV Enterprise

14 To Get Off The WallStreet Tread Mill, ISV’s Are Adopting Subscription Pricing % Software Vendors Offering Subscriptions 43% of ISV’s “Want a more predictable revenue stream”

15 …But Enterprises Still Prefer Perpetuals ENTERPRISE: Preferred Pricing Model

16 …And They Prefer Concurrent Licenses to Those Locked to a Person or Server ENTERPRISE: Preferred Licensing Model

17 …And that preference is growing ENTERPRISE: Preferred Licensing Model 2004 vs % Change in Enterprises

18 SVM Success Stories Enterprises Software & Hardware Vendors

19 “ Citrix customers enjoy an easy, streamlined process to monitor, maintain and track software licenses. Citrix eliminated costs associated with complex licensing agreements and offers their customers a wide range of flexible pricing models.” Harvey Tenen Senior Product Manager Citrix Customer Agility

20 SVM Success Story Enterprises Software & Hardware Vendors

21 “We wanted end users to have a user-friendly install process while providing enterprise IT departments with the advanced administrative features they require. ” John Senez Director of Localization Corel Software Outstanding Out-of-the-Box Experience

22 SVM Success Story Enterprises Software & Hardware Vendors

23 With our existing staff we migrated 100+ legacy applications to 600 machines in 72 hours…all without any interruption to our customers. ” Darrin Veit Technologist II Comcast Cable Hiding Complexity & Improving Productivity

24 Software Value Management means…  Cutting the Complexity  Flexible systems & processes that enable responsiveness to changing customer demands

25 SVM Ends The Complexity Crisis Enterprises want….  To buy only what they need  Software that is painless to deploy & maintain  Zero professional services (don’t mask your complexity behind people)  Software that “self-heals”  Software that just works… right out of the box

26 SOFTWARE PROFITS TOP NASDAQ OCTOBER 10, 2008 SHOW 2nd VIDEO “GUSTO & GLORY”

27 See SVM in Action  Please visit the product showcases, listed in your agenda  A complete copy of the Pricing & Licensing Report is available for download at:

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29 METHODOLOGY & SAMPLE 232 Enterprises – Typical titles were CTO, VP Development, and IT Director – InformationWeek, 3 rd party databases 252 Software Vendors – Typical titles were CEO, CMO, VP Product Marketing, and VP Product Management – SIIA, 3rd party databases Survey in September 2005

30 Manage Complexity—Maximize Profits  Focus on your core business –leverage third party experts for non-core activities  Plan with change in mind –Build flexibility into product & service architectures  Prioritize customer needs –Ensure you’re investing in the right places to be successful

31 Manage Complexity—Minimize Costs  Optimize decision-making –Look beyond data to find information  Anticipate exceptions –Avoid rigid processes  Align with key suppliers –Make sure they provide what you need