This Lustratus REPAMA Segment Analysis Study, reverse engineers the go-to-market strategy of vendors in the cloud software / cloud management / application services management market segment including Appistry and 3Tera using Lustratus' Reverse Engineered Positioning and Messaging Analysis (REPAMA) methodology.

1. Cloud Software / Application Services ManagementREV 1 REPAMASegment Analysis Study Danny Goodall Lead Marketing Analyst dannyg@lustratusrepama.com November 2009

2. Disclaimer Whilst reasonable care and skill has been taken by Lustratus Research Limited (the company) in the preparation of this report no liability is accepted by the company (except in the case of death or personal injury caused by the company's negligence) by reason of any representation or any implied warranty condition or other term or any statutory or common law duty or otherwise howsoever arising for any direct or indirect general special or consequential damages or loss costs expenses or other claims (whether caused by the negligence of the company or otherwise) which come out of the provision of this report or its use. All trademarks are acknowledged as the property of their respective owners. REPAMA measures perception. The results are subjective and should be interpreted as such.

3. Introduction This document contains the findings of the REPAMATM Segment Analysis Study into the Cloud Computing market and particularly the Cloud Software / Application Services Management market segment. More vendors/providers will be added to this analysis over time. Right now only the positioning and messaging of Appistry’s CloudIQ Platform and 3Tera’s AppLogic is covered. Analysis for this study was performed during October and November 2009 A guide for interpreting these results can be found online at http://www.lustratusrepama.com/about/repama-guide/ Please provide any feedback you may have to dannyg@lustratusrepama.com

4. Cloud Software / Application Services Management REPAMA Baseline Assessment

5. The Cloud Computing Market - Technical Capability Segmentation This study focuses on the cloud software / application services management segment of the cloud computing market. * These services have been arbitrarily grouped for layout purposes. There is no particular significance to this grouping.

6. Cloud Software Application Services Mgmt. Example Vendors/Providers Working Definition A subset of the cloud management segment , application services management software provides automated management of the lifecycle of application services including provisioning, starting, stopping, moving, monitoring , scaling and billing.

7. REPAMA Baseline Assessment

8. REPAMA Baseline Assessment

9. Reverse Engineered Positioning - Appistry CloudForce.com FORenterprises seeking to take advantage of cloud computing WHOneed to migrate existing applications to the cloud and virtualized environmentsOURCloudIQ Platform IS A Cloud application platform THAT PROVIDES enterprises with the ability to move multiple existing applications to the cloud and manage them across multiple cloud environmentsUNLIKEinfrastructure-focussed approaches to cloud computing OUR PRODUCT allows existing applications to be packaged and deployed to a cloud without re-architecture

10. Reverse Engineered Positioning - 3Tera AppLogic FOR organisations looking to deploy successful online services to millions of users WHO are struggling to manage the complexity of the infrastructure required to serve online services to online users OURAppLogicISA grid operating system for web applications THATPROVIDES the ability to assemble existing software into portable applications that run on any grid and scale from a fraction of a server to hundreds of servers with a single command UNLIKE traditional dedicated infrastructure OURPRODUCTmakes it extremely easy to deploy scalable web applications without dedicated IT resources and personnel

11. REPAMA Positioning Comparison

12. Depositioning – Appistry Not included in this report – contact Lustratus for more information

13. Depositioning – 3Tera Not included in this report – contact Lustratus for more information

14. Appendix I - Analysis This section contains the detailed analysis of the vendors’ respective marketing and go-to-market strategies

15. Organisation and Market Approach How are the vendors in the study positioning their organisations and how are they engaging with the market?

16. What Marketing Elements are Covered?

17. Company Profile How does the company look to position itself?

18. Company Profile How does the company look to position itself and how does it want to be perceived?

19. Offer Category How does the vendor describe their offer category?

20. Primary Audience Who is the primary target audience for the vendor's marketing communication efforts?

21. Job Titles Which job titles does the vendor focus their outbound marketing activities on?

22. Sales Engagement Level At what level does the vendor look to engage its prospects – where does the sales process start? (this may be different from primary audience)

24. Early, proven – the market is at an early stage but there is proof of customers deriving benefit from the vendor’s technology

25. Mature – the market has existed for some time, customers, competition and alternatives exists

27. Channel Approach What channel relationships does the vendor’s outbound marketing suggest they engaged in?

28. Implied Sales Methodology Does the vendor’s marketing approach suggest a specific methodology or approach is used towards sales?

30. Americas

31. Asia Pacific

32. Europe

34. Product How are the vendors in the study marketing the features and benefits of their respective products?

35. What Marketing Elements are Covered?

39. Cursory use to show affinity - This suggests that whilst the vendor uses business value in their marketing efforts it is not central to the sales process

43. What Marketing Elements are Covered?

44. Positioning This section shows the reverse-engineered positioning statements for each of the vendors in the study The positioning statements shows the following perceived strategic marketing elements: Target customer Pain Product name and category Primary value/benefit Primary competition or alternative Unique selling proposition

45. Reverse Engineered Positioning - Appistry CloudIQ Platform FORenterprises seeking to take advantage of cloud computing WHOneed to migrate existing applications to the cloud and virtualized environmentsOURCloudIQ Platform IS A Cloud application platform THAT PROVIDES enterprises with the ability to move multiple existing applications to the cloud and manage them across multiple cloud environmentsUNLIKEinfrastructure-focussed approaches to cloud computing OUR PRODUCT allows existing applications to be packaged and deployed to a cloud without re-architecture

46. Positioning Matrix – Appistry

47. Reverse Engineered Positioning - 3Tera AppLogic FOR organisations looking to deploy successful online services to millions of users WHO are struggling to manage the complexity of the infrastructure required to serve online services to online users OURAppLogicISA grid operating system for web applications THATPROVIDES the ability to assemble existing software into portable applications that run on any grid and scale from a fraction of a server to hundreds of servers with a single command UNLIKE traditional dedicated infrastructure OURPRODUCTmakes it extremely easy to deploy scalable web applications without dedicated IT resources and personnel

48. Positioning Matrix – 3Tera

50. Technical/Functional – Differentiation is about the product, features, functionality, capacity, etc.

51. Service – The human skills a company can offer

55. Positioning Spectrum Analysis (PSA) The PSA compares each vendor’s positioning elements with each others and with the market mean This identifies similarities and differences in positioning strategy amongst the vendors in the study The PSA elements studied include Target customer (for...) Their pain (who...) The product (our...) Product category (is a...) Main benefit (that provides...) Main competition / alternative (unlike...) Unique selling proposition (USP)

56. PSA – For (Ideal Customer) Who is the ideal target audience for the vendor’s product in their chosen market segment?

57. PSA – Who (Pain, Need, Desire) The need, pain or desire of the target customer. How will this improve their lives?

58. PSA – Our...(Product Name) The product name

60. PSA – Unlike...(Competition/Alternative) The name of the primary competitor or alternative

62. What is REPAMATM? REPAMA is Lustratus Research’s methodology for reverse engineering high-technology vendors’ marketing strategies, positioning and messaging The REPAMA Segment Analysis Study compares multiple vendors’ market engagement strategies and projects a market mean that can be used for comparisons with the “average” vendor strategy This information is interpreted qualitatively as well as represented graphically The Lustratus REPAMA Guide can be found online at http://www.lustratusrepama.com/about/repama-guide/

63. REPAMA For Sales In competitive situations, sales teams need to understand how their competitors are likely to behave. Gaining insight into the current messages and sales tactics that competitors are likely to use can provide a powerful advantage. REPAMA helps sales teams understand the strategies and tactics that their competitors use in sales situations which allows better competitive strategies to be built. It helps to answer the following questions:

64. REPAMA For Marketing Whether setting product strategy, empowering sales teams or generating leads, gaining an understanding into competitive behaviour is key for the marketing organisation. Comparing your own marketing strategy to those of your competitors and to the “average” strategy for your market segment allows for early identification of potential weakness as well as new opportunities. REPAMA helps marketing teams to understand how their competitors are positioning their offerings and provides answers to the following questions:

65. REPAMA For General Mgmt When comparing marketing and sales performance against competitors it is important to understand the differences in approach of the respective organisations. To do this it is key to map your own performance for a variety of indicators against those of key competitors. REPAMA tracks the key marketing strategies of vendors in a specific market segment and plots these graphically against each other. By interpreting these indicators, the following questions can be answered for general management and equity investors:

66. Other REPAMA Deliverables For more information on any of these items please contact us at info@lustatusrepama.com or via http://www.lustratusrepama.com

68. Revision History