1. Keynote: MassTLC Cloud Computing Summit 13Oct2011 Bruce Guptill SVP, Head of Research Saugatuck Technology +1-203-454-3900 www.saugatucktechnology.com

2. What You Need to Know >90% of ISVs worldwide are developing for Cloud-based presence New offerings Portfolio migrations Not Just Apps! The clock is winding down on traditional software as a holistic business solution Three to four years to the tipping point The money – investment, revenue, profit – is in The Cloud Since 2007, the most profitable and stable ISVs are Cloud-based Mistakes will be made Avoid repetition 2

3. >90 Percent? Really? March 2009 thru August 2011 Saugatuck research programs across US, Europe, Asia/Pac Interviews with 500+ ISVs across all areas of business software (applications and otherwise) ISVs of $50M through $50B in annual revenue ALL were found to have some level of Cloud/SaaS development/enablement underway Varying stages of maturity Fits and starts, trials and tribulations We may have missed one... 3

4. It’s Everywhere, and It’s Bigger Than You Think Note: While CRM leads demand today, by 2013-2015 SaaS / Cloud Growth strong across all segments Source: Saugatuck Technology Inc. 4

5. Opportunity = A Lot More than Applications Native Cloud App Ported Cloud App Cloud Applications Developer Services Multitenancy Virtualization Security DBMS Access Storage OtherServices Methodology Tools Analysis & Design Tools Build Tools & SDKs Workflow & Integration Tools Testing Tools Deployment Tools Metering & Analytics Administration Middleware Services Infrastructure Services 5

6. Maybe Not Today, Maybe Not Tomorrow, But Soon... Source: Saugatuck Technology Inc. 2010 global survey; n = 790 Source: Saugatuck Technology Inc. 6

7. Follow the Money! 7

9. Architectural consolidation & standardization

10. Resource efficiencies

11. Business model refinement & normalcy

12. Organizational & ecosystem consolidation / standardization

13. Partner relationship growth & consolidation

15. Architectural refinements & improvements

16. Resource growth

17. Business model adaptation

18. Organizational & ecosystem growth

19. Partner relationship assessment

21. Business + Technology

22. Multiple architecture approaches

23. Resource discovery

24. Organizational/Business model experimentation

25. Partner/Ecosystem needs assessment

26. Customer assessment re SaaS/Cloud requirements 12 – 24 months 12 – 36 months 24 - 36 Months / Ongoing Source: Saugatuck Technology Inc. 8

27. Avoiding Mistakes Partner/Outsource Capitalize Adapt Business Model(s) Adapt Org Model(s) Adapt Culture(s) Partner More Avoiding Big, Repeated Mistakes 9

30. Strategy and Program Assessments

31. Vendor Selection / Evaluations

33. Strategy Validation

34. Opportunity Analysis

35. Positioning / Messaging / Go-to-Market Strategies

38. Investment advisory services (M&A support, due diligence)

40. While there register on our site and begin receiving our complimentary Research Alerts.10