1. Managing Mission Critical Applications Blackboard ASP SM Perspective Presented by: Ahmar Abbas, Director, Blackboard ASP Services April 13, 2005

5. The Blackboard® Applications for a Networked Learning Environment MISSION CRITICAL EXPLORATORY TIME SUPPORTED STRATEGIC TRANSFORMATIVE: THE NETWORKED LEARNING ENVIRONMENT Phase I Phase 2 Phase 3 Phase 4 Phase 5 INSTITUTIONAL GROWTH Blackboard Learning System Blackboard Learning System Blackboard Community System™ Blackboard Learning System Blackboard Community System Blackboard Content System™ Blackboard Learning System Blackboard Community System Blackboard Content System Blackboard Academic Suite™ Blackboard Learning System™– Basic Edition

7. Technology Risk Factors Cost Control Security Reliability Scalability Fully Managed Service

9. Reliability - Network Design Private Zone Public Zone Blackboard ASP VA1 Facility Private Zone Public Zone Blackboard ASP VA2 Facility Optical Fiber Ring Connection Between Facilities

13. Scalability: Supporting Growth

14. Scalability: Business Continuity Service Levels Blackboard ASP hosted client: Fully backed up Last backup less than 3 hours 6 hours Level 3 Service Fully backed up Last backup less than 12 hours 24 hours Level 2 Service Rebuild Last backup less than 24 hours 72 hours Level 1 Service Locally hosted client: Fully backed up (if possible) Last backup less than 8 days 24 hours Weekly backup service Rebuild Last backup less than 32 days 72 hours Monthly backup service N/A Latest backup received 120 hours Incident-based service Customization & Configuration Recovery Point Objective (RPO) Recovery Time Objective (RTO)

18. Fully Managed Service: Backed by Team of Experts

21. Fully Managed Service: Bandwidth Utilization Report

23. Cost Control: Lower Costs than Self-Hosted One-Time Implementation Costs 36,600 $ Service Setup Fee 0 $ Server hardware 6,000 $ Network hardware 12,000 $ Backup hardware 6,000 $ Database software license 0 $ Monitoring system software 5,000 $ Backup system software 5,000 $ Implementation personnel $ Staff training 1,000 $ Annual Management Costs* 58,000 $ Annual Subscription Fee 30,000 $ IT Management 30,000 $ Application Administration - $ System Administration - $ Database Administration 25,000 $ Hardware Administration - $ Bandwidth & Network 3,000 $ TOTAL COST OF OWNERSHIP (3 YEAR PLAN) $158,600 + (3 x $126,000) = 210,600 $ $20,000 + (3 x $42,000) = 90,000 $ TOTAL SAVINGS BY CHOOSING BLACKBOARD ASP SOLUTION: 120,600 $ Self-Hosted Blackboard ASP Includes dedicated application & database servers, network infrastructure, backup infrastructure, monitoring software and systems, Tier-1 data center and professional implementation Includes 24 x 7 customer support and management, dedicated Application Support Manager, team of database administrators & network engineers 3 Year Total Cost of Ownership Analysis: Blackboard Learning System – Basic Edition *Assumes a Red Hat Linux/Oracle implementation on Dell Hardware *Assumes 20% of time of personnel is used for ongoing management 1,600

24. Cost Control: Lower Costs than Self-Hosted One-Time Implementation Costs 160,200 $ Service Setup Fee 0 $ 20,000 Server hardware 12,000 $ Network hardware 47,000 $ Backup hardware 12,000 $ Database software license 12,000 $ Monitoring system software 20,000 $ Backup system software 50,000 $ Implementation personnel 3,200 $ Staff training 4,000 $ Annual Management Costs* 126,000 $ Annual Subscription Fee 42,000 $ IT Management 30,000 $ Application Administration 25,000 $ System Administration $ 20,000 Database Administration 25,000 $ Hardware Administration $ 20,000 Bandwidth & Network 6,000 $ TOTAL COST OF OWNERSHIP (3 YEAR PLAN) $160,200 + (3 x $126,000) = 538,200 $ $20,000 + (3 x $42,000) = 146,000 $ TOTAL SAVINGS BY CHOOSING BLACKBOARD ASP SOLUTION: 392,200 $ Self-Hosted Blackboard ASP Includes dedicated application & database servers, network infrastructure, backup infrastructure, monitoring software and systems, Tier-1 data center and professional implementation Includes 24 x 7 customer support and management, dedicated Application Support Manager, team of databse administrators & network engineers 3 Year Total Cost of Ownership Analysis: Blackboard Learning System *Assumes a Red Hat Linux/Oracle implementation on Dell Hardware *Assumes 20% of time of personnel is used for ongoing management

25. Cost Control: Lower Costs than Self-Hosted One-Time Implementation Costs 180,200 $ Service Setup Fee 0 $ 35,000 Server hardware 18,000 $ Network hardware 47,000 $ Backup hardware 24,000 $ Database software license 12,000 $ Monitoring system software 20,000 $ Backup system software 50,000 $ Implementation personnel 3,200 $ Staff training 6,000 $ Annual Management Costs* 158,000 $ Annual Subscription Fee 60,000 $ IT Management 37,500 $ Application Administration 31,250 $ System Administration $ 25,000 Database Administration 31,250 $ Hardware Administration $ 25,000 Bandwidth & Network 6,000 $ TOTAL COST OF OWNERSHIP (3 YEAR PLAN) $180,200 + (3 x $158,000) = 654,200 $ $35,000 + (3 x $60,000) = 215,000 $ TOTAL SAVINGS BY CHOOSING BLACKBOARD ASP SOLUTION: 439,200 $ *Assumes a Red Hat Linux/Oracle implementation on Dell Hardware *Assumes 25% of time of personnel is used for ongoing management Self-Hosted Blackboard ASP Includes dedicated application & database servers, network infrastructure, backup infrastructure, monitoring software and systems, Tier-1 data center and professional implementation Includes 24 x 7 customer support and management, dedicated Application Support Manager, team of database administrators & network engineers 3 Year Total Cost of Ownership Analysis: Blackboard Academic Suite

27. Expanding Blackboard Investment Significantly 1-2Q ‘04 3-4Q ‘04 1-2Q ’05 * 3-4Q ’05 * ‘ 03 $485K $613K $1,100K $1,030K $1,030K Storage expansion Third Party Vulnerability Analysis Visa CISP Certification Process Investment Intrusion Detection Netcool Fault Mgmt System Uptime Systems Agent NTOP Internet Service Monitors Data Center (Reston) 2.5 Gbps Wavelength Connectivity Between Two Data Centers On-line Offsite Backup at New Data Center New Switching Infrastructure New Storage Infrastructure New Networking Infrastructure 4 x 1000 Gbps Internet Links TCP Offloading Technology Compression Technology Caching Implementation New Load Balancing Infrastructure ASP Testing Lab Data Center (London) Global Caching Clustering Storage Solutions Internet Service Monitors for HTTP, HTTPS, LDAP deployed remotely Load Generation *= target dates only

28. Build-out with Max Headroom

31. 2004: Service Quality Trajectory: Change Requests Requiring System Touch Reducing One in every 7 tickets requires system touch Includes upgrades/update requests Quarterly Trend over last 4 quarters towards Minimizing system change activities

35. Expanding & Global Customer Base