Intro presentation in conjunction with Microsoft for NY Entrepreneurs Business Network (NYBEN) NYC, 1/11/10

1. an Apprenda technology Intro presentation in conjunction with Microsoft for NY Entrepreneurs Business Network (NYBEN) NYC, 1/11/10

2. Topics • Introduction to SaaS and how it relates to cloud computing • Apprenda and the SaaSGrid application server • Why we chose Microsoft as our platform AND target market

3. Evolution of Software Delivery Application A: Business Logic and UI Application A: Business Logic and UI Application A: Business Logic and UI Application A: Business Logic and UI Application B: Business Logic and UI Application A: Business Logic and UI Web Server Web Server Web Server Web Server App Server App Server App Server App Server Server Database Database Database Database Client - Server ASP – App Service Provider SaaS – Software as a Service

4. What is SaaS? • SaaS is a delivery paradigm • Web-based, on-demand access to end users; efficient delivery to multiple clients (tenants) via shared server/DB/Codebase • Single codebase, multi-tenant shared architectures are very difficult to develop • Must prevent fracturing the codebase in order to satisfy application configurations for different price points and markets • Managing and scaling the delivery infrastructure is critical and non-trivial • SaaS is a business model • No longer perpetually licensed “seats”, nor CD’s shipped • Applications must be metered in order to properly monetize (bill) for service provided • Multitude of billing arrangements – per user, per month, per transaction, etc… or a combination • Flexibility necessary to customize application and the billing within a single codebase

5. Pros & Cons to SaaS for ISVs • Pro – Valuation • SaaS businesses tend to be more highly valued in the long run than traditional software businesses due to predictable recurring revenue streams and longer term customer relationships • Pro – Customers trending to SaaS • SMB and enterprise clients will continue move towards on-demand cost structures for IT/IS, gone are the days of multi-million dollar software license deals • Pro – Improved customer experience • Consolidated software operations simplify updates, patches and management for the ISV and their clients, if the platform is engineered properly • Con – Underling technical complexity • Complex architecture behind your application increases development time and cost by 40-60%+, getting it wrong will impact service quality and SLA’s • Con – Business model • Lacking the large up-front license pay-days, SaaS businesses take longer to build to meaningful revenue levels • Con – Capital requirements • Because of the longer term revenue recognition, high unit level cost of sales and higher R&D investment, SaaS businesses take 70% more capital to reach break even • Cash required to reach IPO: RightNow: $32M, SalesForce: $89M, BlackBoard: $130M, DealerTrack: $80M, Omniture: $55M, Kenexa: $71M

6. The Landscape and Challenges SaaS Apps: NetSuite, RightNow, Google Docs, SalesForce.com, SAP On-demand, Aria, Zuora… Cloud Providers: Amazon EC2 & S3, Rackspace Cloud Files & Cloud Servers, 3Tera, OpSource, Joyent, TerremarkvCloud Cloud Computing Cloud Storage Cloud Applications Cloud platforms: VmWareVSphere, NetApp, Cloudera, Hadoop, Eucalyptus • Your infrastructure challenges: • Single code base, single instance deployment • Scaling out, rather than up • User and role management • Multi-tenant data isolation and security • Re-use existing code assets • GUI administration and management • Lifecycle management • Flexible application metering and monetization Cloud integration: Cast Iron, Boomi Cloud migration: RightScale, Queplix, rPath MSFT SQL Server MSFT IIS App MSFT IIS Web Hardware and Infrastructure : VmWare, Giga Spaces, CA, HP OpsWare, EMC, Cassatt

7. Apprenda Company Overview • Mission and focus: SaaS enablement • Both as a delivery paradigm and a business model for ISV’s and Enterprises • Founded in 2006, SaaSGrid launched in 2008 • A team of computer scientists who had built multiple SaaS products – patients turned doctors • SaaSGrid trivializes the highly complex underpinnings of a SaaS architecture • technology was developed and tested over a 2 year period with over 30k+ man-hours invested in solving the complex barriers to implementing SaaS • $6.5M in funding to date ($5M closed in Nov 2009) • New Enterprise Associates (“NEA”, investors behind SalesForce.com, Xen Source and WebEx) and High Peaks Venture Partners ($50M early stage fund) • Microsoft BizSpark Network Partner • Sponsored BizSpark membership for a number of our start-up clients • Provide a key piece of enabling technology for MSFT centric ISVs bringing SaaS offerings to market – highly complimentary to the ISV enablement goal of BizSpark

8. What is SaaSGrid? An application server that enables the SaaS delivery paradigm and business model from application development through deployment and monetization for software vendors and enterprise clients. • Distributed application server for SaaS application delivery • The only solution to quickly build, monetize and scale your applications seamlessly in a .NET native environment • SaaS enabler that injects “SaaS DNA” into existing .NET web applications • Drastically reduces the complexity and time to market for developing a SaaS application • Provides mission critical capabilities for managing and scaling a SaaS deployment

9. What SaaSGrid Does: • Developers focus on application development at the business logic and UI level while…. • ….SaaSGrid delivers: • Tenancy models • Single code-base, yet customizable application delivery • User, role and security system • Customer management • Provisioning, lifecycle management and scaling • Metering and billing • Trivialized access to cloud architectures • Ability to meld and manage internal resources with cloud resources in a single application hosting system • Server and VM consolidation (10X + resource compression)

10. SaaSGrid Overview Quickly build, Monetize and Scale your applications seamlessly in a .NET native environment. Application C: Business Logic and UI Application A: Business Logic and UI Application B: Business Logic and UI SaaSGrid Management Tools: Allow application managers and clients to manage users, roles and subscriptions in a GUI portal. Provisioning Scale Out Security Lifecycle Mgt User/Role Mgt Subscriber Mgt MSFT IIS SaaSGrid Business Services: Tap into powerful SaaS optimized services for 40-60%+ reduction in dev cost/time. Single Instance MSFT IIS SaaSGrid System Grid: A robust, highly scalable, highly efficient SaaS computing environment. SaaS DB Model Multi-Tenancy MSFT SQL Your Hardware and Virtual infrastructure augmented by cloud resources as required.

11. SaaSGrid in Action: (animation) # Customers (Tenants) Web UI Database Web Service

12. Why MSFT? - Market share. • MSFT .NET is the dominant framework for ISVs. • Java primarily found within the enterprise • Ruby more common with consumer oriented web-apps

13. Why MSFT? – Alignment • Time to market • SaaSGrid speeds time to market for our clients, that was important to us as well and the MSFT stack both powerful and easy to use • Access • We needed to be able to integrate into the core of the stack we were augmenting and MSFT helped us do that • Non proprietary, no lock-in • SaaSGrid needed to be industry standard and support a wide range of languages, .NET allowed us to provide that • Focus • To server the needs of ISVs, we needed to be aligned with the technology provider who bests serves our clients needs

14. Questions? • Contact: • Devon Watson • Director of Business Development • dwatson@apprenda.com • Office: 518-383-2130 x309 • Linkedin: www.linkedin.com/in/devonwatson • Blog: www.SaaSBlogs.com • Website: www.apprenda.com