1

Fred AmorosoPresident and CEO

Macrovision

Software Value ManagementSoftware Value Management

2

Dateline: 2008Dateline: 2008

SOFTWARE INDUSTRY ON THE BRINK? MAJOR PRODUCERS DECLARE MASSIVE LOSSES

SHOW 1st VIDEO “DOOM & GLOOM”

4

““Cut the Complexity”Cut the Complexity”

5

Market DynamicsMarket Dynamics

Vendor

Enterprise

6

Vendor

Enterprise

Market DynamicsMarket Dynamics

7

Vendor

Enterprise

Market DynamicsMarket Dynamics

8

Vendor

Enterprise

Market DynamicsMarket Dynamics

9

The Role of Software Value ManagementThe Role of Software Value Management

Vendor

Enterprise

SoftwareDevelopmentManagement

SoftwareInventory

ManagementSoftware 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

EnterpriseEnterprise

The Role of Software Value ManagementThe Role of Software Value Management

11

Enterprise

Building Blocks of Building Blocks of Software Value ManagementSoftware Value Management

Software & Hardware Vendors

12

Sept 2005 SoftSummit Pricing & Licensing Sept 2005 SoftSummit Pricing & Licensing Study….Study….

Enterprises

Software & Hardware Vendors

13

ISV’s are not Listening to Their CustomersISV’s are not Listening to Their Customers

SOFTWARE VENDOR vs. ENTERPRISESatisfaction with Pricing & Licensing Strategy

N=484

ISV

Enterprise

14

To Get Off The WallStreet Tread Mill, To Get Off The WallStreet Tread Mill, ISV’s Are Adopting Subscription PricingISV’s Are Adopting Subscription Pricing

% Software Vendors Offering Subscriptions

43% of ISV’s “Want a more predictable revenue stream”

15

……But Enterprises Still Prefer PerpetualsBut Enterprises Still Prefer Perpetuals

ENTERPRISE:Preferred Pricing Model

16

……And They Prefer Concurrent LicensesAnd They Prefer Concurrent Licensesto Those Locked to a Person or Serverto Those Locked to a Person or Server

ENTERPRISE:Preferred Licensing Model

17

……And that preference is growing And that preference is growing

ENTERPRISE:Preferred Licensing Model

2004 vs. 2005

% Change in Enterprises

18

SVM Success StoriesSVM 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 TenenSenior Product Manager

Citrix

Customer Agility Customer Agility

20

SVM Success StorySVM 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 SenezDirector of Localization

Corel Software

Outstanding Out-of-the-Box Experience Outstanding Out-of-the-Box Experience

22

SVM Success StorySVM 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 ProductivityHiding Complexity & Improving Productivity

24

Software Value Management means…Software Value Management means…

Cutting the Complexity

Flexible systems & processes that enable responsiveness to changing customer demands

25

SVM Ends The Complexity CrisisSVM 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 ActionSee 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:

www.softsummit.com

28

29

METHODOLOGY & SAMPLEMETHODOLOGY & SAMPLE

232 Enterprises

– Typical titles were CTO, VP Development, and IT Director

– InformationWeek, 3rd party databases

252 Software Vendors

– Typical titles were CEO, CMO, VP Product Marketing, and VP Product Management

– SIIA, 3rd party databases

Email Survey in September 2005

30

Manage Complexity—Maximize ProfitsManage Complexity—Maximize Profits

Focus on your core business–leverage third party experts for non-core activities

11

22

33

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 CostsManage Complexity—Minimize Costs

Optimize decision-making–Look beyond data to find information

11

22

33

Anticipate exceptions

–Avoid rigid processes

Align with key suppliers

–Make sure they provide what you need