The Corporate Technology Collaboration and Exchange April 2004

1. The Corporate Technology Collaboration and ExchangeApril 2004 Presented by Scott Lien

2. Agenda • Current state of I.T. • Avalanche overview • What is it? • How does it work? • How is it Unique? • Value proposition • Intellectual property examples • Benefits The Corporate Technology Collaboration & Exchange

3. The Facts • Corporations spend over $80 billion annually on software licenses with marginal ROI. Gartner Group • Total cost of ownership over 5 years is up to 20 times the initial software license. Case Studies • Corporations are forced into vendor upgrades (averaging less than every 3 years) incurring significant cost.META Group The Corporate Technology Collaboration & Exchange

4. Need to Balance the Power Service Providers + Corporate Customers Software Vendors The Corporate Technology Collaboration & Exchange

5. The Power Shift... Avalanche Solutions + Corporate Customers + Service Providers Software Vendors The Corporate Technology Collaboration & Exchange

6. What is Avalanche? An initiative chartered by a group of companies that believe an opportunity exists to reduce cost and increase control of mission critical software through collaboration and shared risk. Private Exchange that enables Corporations to: Contribute Collaborate and Legally Distribute Intellectual Property to other Members The Corporate Technology Collaboration & Exchange

7. Corporate Member 1 Corporate Member 2 Vendor Member 1 Vendor Member 2 Corporate Member 1 Corporate Member 2 Vendor Member 1 Vendor Member 2 Avalanche Private Exchange What is Avalanche? Establishes legal agreements with each member • Enables the sharing of IP • Enables Collaboration on projects the generate IP The Corporate Technology Collaboration & Exchange

8. Avalanche Vision To deliver shared software and services to corporations by way of a private exchange. Founding Principles: • Created & controlled by corporations. • Independently managed. • Measured by value created. The Corporate Technology Collaboration & Exchange

9. INFORMATION Research & Publications Marketing SHARED SOFTWARE Repository Projects SHARED SERVICES Product Support Professional Services ADVOCACY SHARED SUPPLIERS Collaboration IT Product Exchange Information Aggregator Supplier Negotiations Avalanche Vision Hundreds of corporations, consultants, and vendors cooperating to develop a repository of shared business applications that members can download, modify and distribute. Members collaborate on existing intellectual property and creation of new intellectual property while sharing in the development, maintenance and support. Significantly reducing the total cost of ownership of business software. The Corporate Technology Collaboration & Exchange

10. Corporate Members Corp. Consult. Vendor Collaboration Ÿ Methods, Services Cooperation Ÿ Architecture, Requirements Shared Cost Avalanche Repository Ÿ Development Capital Ÿ Operating Expense Distribution Control Ÿ Governance, Standards Ÿ Legal Rights, Obligations Member Member Member Corp. Corp. Corp. How does Avalanche Work? Gated community of interest network Corporations collaborate and invest in projects of mutual interest Legal Process Enables the exchange of Intellectual Property between Members Repository Enables the storage, management, and retrieval of Intellectual Property & A collaborative environment to enable joint project execution The Corporate Technology Collaboration & Exchange

11. How does Avalanche Work? • Annual membership fee provides access to • Research & publications • Collaborative forums & events • Update sessions and overview material on significant IP • Perpetual, enterprise-wide software licenses • Membership types • Corporations • Service providers • Hardware & software vendors The Corporate Technology Collaboration & Exchange

12. Avalanche Core Competencies Governance Service/supplier negotiations Marketing & communications Product Development Implementation Integration Support Other Intellectual property rights Software licensing Requirements definition Change control Technical standards The Corporate Technology Collaboration & Exchange

13. Ready for Download IP Candidate Approval Submit Avalanche Content Management Process IP submission process for new IP, enhanced IP, or joint development projects Avalanche Product Management Process • Manage product life cycle for applications • Gather product requests & requirements • Oversee development & support • Oversee clear title and due diligence process • Categorizes the application in the Repository • Define technology standards and processes Step 1 Step 2 Step 3 Step 4 Step 5 Submitting company Avalanche Clarify Submission Categorize Due Diligence Avalanche Product Management Processes Clear Title & Code Review Process Avalanche Sales & Marketing • When product is ready for download than marketing material and marketing plans are updated. • Newsletters and email notifications sent to companies interested in the BOF IP. • Monthly teleconferences and meetings to highlight & discuss new and proposed IP. The Corporate Technology Collaboration & Exchange

14. Marketing Account Mgmt Product Management Avalanche Member Interaction Member • Each Member assigns an Avalanche Lead • Account planning sessions to review architecture, current projects and how available IP could provide value. • Account management function works with the Avalanche lead on potential IP submissions and education on available IP. • Interaction with Product Management on joint projects and IP clear title and due diligence process. Avalanche Lead Avalanche Repository The Corporate Technology Collaboration & Exchange

15. Value Proposition Access to New Assets & Resources Members will have access to assets and resources that an individual corporation would not be able to obtain on its own. Save Money Through leveraging the “open source” model of sharing software, a corporation could save over 30% on 5 year TCO. High Return on Investment Per application, this could create millions of dollars in savings. Significantly Increase Control Members control functionality, release schedules, and investment in new products. Collaborate With Others Members will be able collaborate on critical business issues, share knowledge and exchange ideas. The Corporate Technology Collaboration & Exchange

16. Intellectual Property Examples www.AvalancheCorporateTechnology.com Avalanche Repository • Application categorization and collaboration tool • Foster collaboration within the company or divisions The Corporate Technology Collaboration & Exchange

17. Integration Factory: A methodology for effectively developing, testing, deploying, and managing the Application Integration process. Analysts enter adapter specifications through a seriesof structured forms. The factory uses the specs to assemble a fully functioning adapter from re-useable buildingblock components. Intellectual Property Examples AppTalk • Adapter Tracking Tool • Manage the process • Enforce the methodology • Integration Application • Reusable Java framework • Provides similar functions as Web Methods or Vitria • One Member has over 1,000 adapters currently in production • Cost per adapter from $25,000 to $5,000 SIGNIFICANT SAVINGS The Corporate Technology Collaboration & Exchange

18. Other Examples • Charybdis • Charybdis is an automated code deployment system built to conform to “real world” standard deployment processes. • Charybdis has built, deployed, and rolled back code to hundreds of servers. • Oracle Repository • Upgrade project plans & Best Practices • Sample Reports The Corporate Technology Collaboration & Exchange

19. Avalanche Advantages • Facilitates exchange of idea & IP between larger corporations • Member-based distribution channel • Close relationship with members The result… Lower overall financial risk to its members The Corporate Technology Collaboration & Exchange

20. Current Members • Best Buy • Jostens • Integral Business Solutions • Born Consulting • Many others in process The Corporate Technology Collaboration & Exchange

21. … be part of the momentumFor more information contact Jay Hansen at 952-258-7710Or visit www.AvalancheCorporateTechnology.com