November 1, 2005

1. IBM and DataPowerExtending the SOA Foundation with simplicity, superior performance, hardened security November 1, 2005

2. Agenda • Executive Summary • Recent Announcement • Acquisition of DataPower • A Continuation of IBM’s SOA Strategy • When to Sell DataPower • Customer Scenarios and Customer Questions

3. Executive Summary • What does DataPower Acquisition mean to you as a Seller? • Game changing technology that will help accelerate SOA implementations! • DataPower is a game changer product to help companies embrace SOA, minimizing complexity while enhancing performance, security and management • A software capability embedded in a specialized hardware with ingenious packaging enhancing SOA deployment run-time • You can leverage to accelerate deployments of core WebSphere and Tivoli products • Opportunity for WebSphere, Tivoli, and STG SSRs • WebSphere, Tivoli, and STG get commission on sales within their accounts • Avg. deal size $200K – 80% SW/ 20% HW • No additional quota in 4Q! • 4Q contest offers additional incentives

4. Focusing on Infrastructure for SOA deployment SOA allows customers to have a flexible, robust infrastructure to model, assemble, deploy & manage in real-time reusing existing assets SOA Industry Teams, SOA Jumpstarts Skills Partnership Initiative Partners IBM SOA Industry Accelerators Know-how & best practices IBM SOA Foundation and new products to support it Infrastructure

5. SOA Foundation Infrastructure – Wants & Needs Key attributes for flexible, robust SOA infrastructure: • Simplicity • Security • Performance The reality • High volumes of XML traffic create performance bottlenecks and security risks • The need to accelerate SOA applications is driving customers to purchase special purpose functionality in an appliance package Infrastructure Infrastructure needs: • Reduced Complexity and Operational Expenses • XML threat protection and fine-grain access control • Faster XML processing for enterprise class performance

6. Simplifies: streamlines SOA infrastructure with specialized software/hardware devices Recently Announced: Acquisition of DataPower DataPower – WebSphere Addressing SOA Deployment Needs Why an SOA Appliance? A software capability… Embedded in a specialized hardware With ingenious packaging Enhancing SOA deployment run-time A game changer product to help companies embrace SOA, minimizing complexity while enhancing performance, security and management of business processes implemented under SOA principles A WebSphere SOA Appliance that… • Accelerates: expedites SOA XML processing • Helps Protect: XML-level protection enhances SOA security management

7. “XG1” “XG2” DGXT Optimal Software Interpreter XSLJIT Optimized Software Compiler XG3 Highly Optimized Hardware Acceleration XA35 World’s First XML Accelerator XS40 First Wirespeed XML Security Gateway XG4 Gigabit/Sec OEM HW Solution XI50 Integration Appliance Founded 1999 2000 2001 2002 2003 2004 DataPower Company Overview • Extensive Experience in XML Processing Optimization • Founded 1999, first to market with XML processing technology • 72 employees, headquartered in Cambridge, MA • Strong market recognition - over 50 enterprise customers in production • Customers span industries: • Financial Services, Banking and Insurance • Telecom • Government

8. DataPower Product PackagingDataPower products offer customers significant performance, ease of use, and packaging advantages for managing rapidly growing XML-based data • XI50 Integration Appliance • Expands support to non-XML solutions • Advanced architecture • Integrated message-level security $75K list Add: DataPower XML Integration & existing systems connectivity SW • XS40 XML Security Gateway • Security, agility and performance • Device can off-load application security software • Performs XML Web services security functions (parse, filter, validate schema, encrypt/decrypt, signatures, access control, and more) $65K list Add: DataPower XML Security SW • XA35 XML Accelerator • Offloads overtaxed servers by processing XML, XSD, XPath and XSLT at wire speed • SW provides significant performance improvements over WebSphere solutions • HW + SW provides enterprise-class performance $35K list

9. DataPower PositioningSpecialized combination of hardware and software for easier, faster and more secure SOA infrastructure deployment • Discover • Construct & Test • Compose • Integrate people • Integrate processes • Manage and integrate information • Application Infrastructure DataPower – An SOA Appliance Simplifies – streamlines SOA infrastructure and deployment with appliances - specialized hardware/software devices Accelerates –faster SOA XML processing Protects – helps address security for SOA XML-based implementations • Gather requirements • Model & Simulate • Design • Manage applications & services • Manage identity & compliance • Monitor business metrics Improving and expediting SOA implementations to help customers on their SOA journey IBM redefines the boundaries of middleware extending the SOA foundation with specialized, consumable, dedicated devices that combine performance and hardened security for SOA implementations

10. DataPower Continues SOA Foundation Enhancement Process: WebSphere Process Server WebSphere ESB & Message Broker WebSphere Partner Gateway & Adapters People: WebSphere Portal WebSphere Everyplace Deployment Workplace Collaboration Services Information: WebSphere Information Integrator Application Infrastructure: WebSphere Application Server & XD WebSphere Integration Developer Rational Application Developer XML Message Handling XML Acceleration WebSphere Business Modeler Rational Software Architect WebSphere Business Monitor Tivoli Composite Application Manager Tivoli Federated Identity Manager Tivoli Access Manager for e-business delivers SOA Security Management Policy Management Federated Identity Management Auditing and Compliance for SOA User Provisioning DataPower delivers B2B XML Security Policy Enforcement +

11. IBM Customers that Need to Accelerate Application and SOA Performance 1 Case in point: Handle significant server workload generated by XML-based processing XML Off-load Acceleration XA35 Acceleration Appliance Web Application Solution: Accelerates infrastructure implementation, offloading XML traffic to speed up processing with minimum network disruption

12. Identify Prospects: Accelerate SOA PerformanceCustomer Questions • Do you have plans to implement an SOA or deploy XML and SOAP? • Do you have XML performance or scalability concerns? • Example: Dynamic content rendering (XML to HTML) • Example: SOAP message routing • Example: Translating XML from one grammar to another • Example: Validating Schemas

13. Suppliers Partners Users Solution: Helps protect SOA implementations addressing XML threats with fine-grain access control. Integrates with security access and policy systems for enterprise SOA deployments and centralized security policy management IBM Customers to Help Protect their SOA and IT Assets 2 Case in point: First line of defense to securely implement external web services. Secure once for many applications and aggregate user interactions. XS40 XML Security Gateway Data Repository Federated Identity, Security and Directory Services Centralized Security Policy Management Enterprise Directory

14. Identify Prospects: Help Protect SOA infrastructure Customer Questions • Are you currently exposing/planning to expose web services outside of your firewall/security domain? • Do you have plans for Web services security enforcement point?

15. IBM Customers looking to Simplify SOA Deployment 3 Case in point: Handle growing complexity demands for integrating services across multiple applications, inside and outside the enterprise XML message handling & security Back-end applications XI50 Integration Appliances Existing Application Requests Centralized Management Solution: Dedicated device to minimize complexity and optimize performance and utilization of resources within an SOA deployment. Efficient handling of messages, while ensuring security.

16. Identify Prospects: Simplify SOA Deployment Customer Questions • Do you have plans to implement an SOA or deploy XML and SOAP? • Do you have XML performance or scalability concerns? • Are you currently exposing/planning to expose web services outside of your firewall/security domain?

17. IBM Customers looking to Simplify Access to Back-end Systems via SOA 4 Case in point: SOA enable back-end systems without deep Web Services technical skills. Back-end applications XML enable Back-end systems HTTP, JMS MQ XI50 Integration Appliances Business Logic Layer Existing Application Requests Centralized Management Solution: Dedicated device to minimize complexity and optimize performance and control access to back-end resources. Data Format Tooling

18. Identify Prospects: Simplify Mainframe Access Customer Questions • Are you having performance or scalability problems associated with exposing back-end applications as web services?

19. IBM and DataPower – A Powerful Combination IBM Global Services The core of SOA IBM’s SOA Commitment Streamlining SOA A broad portfolio for SOA implementation needs Delivering SOA security and management Unique expertise in high-value appliance packaging SOA leader: in capabilities, market share, customer preference Breakthrough technology for simple, fast integration XML processing Virtualization, openness for maximum SOA flexibility Helping SOA environments become on demand business Governance, best practices, support and integrated technology services Flexibility and security at any-to-any and XML message level IBM and DataPower redefine the boundaries of middleware extending the SOA Foundation with specialized, consumable, dedicatedSOA appliances that combine superior performance and hardened security for SOA implementations

20. Software Skills & Support A continuation of IBM’s commitment to SOA and simplicity An SOA Appliance… Creating customer value through extreme SOA performance and security • Simplifies SOA with specialized devices • Accelerates SOA with faster XML throughput • Helps protect SOA XML implementations IBM and DataPower redefine the boundaries of middleware extending the SOA Foundation with specialized, consumable, dedicatedSOA appliances that combine superior performance and hardened security for SOA implementations

21. How to sell, 4Q Actions, Next steps • Dedicated DataPower sales and technical sales team • Identify opportunities and engage DataPower team • Assist DataPower team with their existing 4Q opportunities • 4Q revenue credit with no increase in quota (80% SW, 20% HW) • Client teams, cSSR, WebSphere, Tivoli Security, xSeries SSRs • 4Q Sales contest • Details to be announced • DataPower Help Desk • dphd@us.ibm.com • Links for additional information: • IBMers: DataPower Internal Announcement Details • Business Partners: IBM Software - WebSphere Innovation Connection Online for IBM Business Partners - Product Overview

22. Q & A

23. Key Contacts/Information • Links for additional information: • IBMers: DataPower Internal Announcement Details • Business Partners: IBM Software - WebSphere Innovation Connection Online for IBM Business Partners - Product Overview • DataPower Help Desk: dphd@us.ibm.com • If questions about this acquisition are delaying the close of a deal, you can contact: • Bruce Burdumy, Transition Executive (bburdumy@us.ibm.com) • Mark Taber, VP Sales, DataPower (mtaber@us.ibm.com) • Mark Wagner BUE, Worldwide Sales (mjwagner@us.ibm.com) • John Nelson, Business Partner Lead (jrnelson@us.ibm.com) • Eugene Kuznetsov, CTO, DataPower (ekuznets@us.ibm.com) • Paul Castiglione, Product Manager (pcastiglione@us.ibm.com) • Kevin Anderson, Director, Product Marketing DataPower (kmanderson@us.ibm.com) • Cristina Zabeu, Product Marketing Manager (czabeu@us.ibm.com)