Session Number: HPT13 Sage Abra Competitive Briefing

1. Session Number: HPT13Sage Abra Competitive Briefing Tom Tillman Product Marketing Director

2. CPE Credit • In order to receive CPE credit for this session you must be present for the entire session. • Session code: HPT13 • Recommended CPE credit = 1 • Delivery Method = Group Live • Field of Study = Specialized Knowledge and Applications • Visit the Continuing Professional Education kiosks to enter CPE credit during the conference.

3. Introduction • Tom Tillman, Product Marketing Director • Nancy Tillman, Product Marketing Manager • This presentation will be available online after the conference. You will receive an email for the Insights session Website approximately 4 weeks after Insights.

4. Learning Objectives • After participating in this session, you will understand the competitive differences between Sage Abra and: • ADP Major Accounts • Ultimate Software • Microsoft Dynamics GP • And more (Mangrove, Spectrum, PeopleTrak & Ascentis)

5. Sage Abra HRMS Positioning • Recognized leadership • Leader Quadrant – Gartner 2006 Mid-market HRMS MQ • Strong Performer – Forrester 2006 Mid-market HRMS Wave • “The on-premise HR solution of choice for the…SMB … company segment” – Forrester 2006 & 2008 Mid-market HRMS Wave • Capabilities • Single system automates & reduces the costs of HR, Benefits & Payroll administration • Software support and services (Sage and Partner) • Grows & changes as business needs evolve • Modular software and services • Multiple database platform support • On-premise and hosted deployment options • Fits the requirements of any budget • Pay for only the capabilities needed now and add-on later • Easy to adopt and use technologies (Win, IE, SQL, .Net) • Hosting options minimize/eliminate IT impact Market Leader Designed for Mid-Size Organizations Comprehensive Capabilities Flexible & Scalable Low Total Cost of Ownership

6. ADP Major Accounts(50ee – 1,000ee)

7. ADP Major Accounts Overview • Mid-size business: 50 – 1,000 employees • HR, benefits, payroll, tax, compliance, retirement services • Large direct sales force • Regional service (processing centers) • Business model is to sell services, not software • ADP is formidable by the sheer mass of its payroll customer base and size of its sales force, but product innovation and service quality are suspect.

8. ADP – How They Position Themselves • Global provider of employer-related business process solutions • Takes the burden and risk of payroll processing and tax management off the customer • Services all areas of the employee lifecycle from recruitment to retirement • “Inventor of the software subscription model” • Yields better savings for the customer in terms of total cost of ownership • Automatic upgrades & reduced strain on IT resources

9. ADP Major Accounts -- Main HR/Payroll Offerings • ADP AutoPay • Back office batch payroll processing services • ADP Pay eXpert • Web-based version of PC Payroll for Windows (PCPW) • Client data “Front end” for AutoPay • ADP HR/Benefits (HRB) • Web-based HR; Formerly Employease • SaaS offering with PEPM pricing • Works with Pay eXpert • ADP HR eXpert • Web-based HR • SaaS offering with PEPM pricing • Works with Pay eXpert

10. AutoPay Pricing • $4.10/pay (1st 50) • $2.15/pay (51+) • Includes Pay eXpert, Autopay, Total Tax Plus, Data Access

11. ADP HR Capabilities & Pricing

12. HR/B ESS and MSS Capabilities

13. ADP HRB vs. Abra SQL Comparison

14. HRB functionality missing/weak • No integration to labor management (T&A) systems • No requisition management • No training admin • File export/import integration between HRB and Pay eXpert • No single sign-on between HRB and Pay eXpert

15. Abra SQL vs. ADP HRB 300ee Example

16. Abra SQL vs. ADP HRB/Payroll 300ee Example

17. Abra SQL Proposal Tuning vs. ADP What is driving customer’s desire to out-source payroll processing? In-house staffing? – MYTH (customer still must manage all employee information, time collection, pay-rates, benefit premiums, etc.) Payroll tax management? (Abra Tax Filing Service) 1st year cash outlay a key driver for customer? Consider financing license/implementation over 3 years (KEF) Total cost of ownership Emphasize total costs over 2+ years (igh ADP costs NEVER END) Hosting Understand importance of hosted/SaaS to prospect. ADP is always SaaS. Include nGenX hosting service in proposal (perhaps as option) Customization & Flexibility Abra can be customized (Abra is dedicated - HRB is shared) Can host additional applications at small incremental hosting costs (Dedicated Abra hosting resources)

18. Ultimate Software

19. Ultimate Software Overview • Provides strategic HR, payroll & talent management • Packaged as a full HRMS solution (HR/Payroll always together) • Offered as hosted deployment with subscription pricing • Markets and sells its products and services primarily through its direct sales force • Focus has been >1,000ee companies, and just recently begun coming down-market • Ultimate is a strong SaaS competitor in HRMS in the US, able to serve customers of various sizes. The company is less focused on its SMB solution from a marketing standpoint.

20. Ultimate Software – How They Position Themselves • HR/Payroll is all they do - the HR/payroll vendor that dedicates all of its resources to HR/Payroll research and development -- • A “total business solution” – 1-stop workplace portal • Single integrated database and single sign-on • Integration among all functions (HR, payroll, benefits, etc) • Enter data once, available immediately • Reporting and analysis • Standard and custom • Point in time; historical • Customer service – 99% retention rate • Ultimate will generally not pursue deals where payroll is not part of it

21. Ultipro Offerings • Ultipro “Enterprise” • Targeted at >1000ee companies • Purchase and deployment options: • As of April 1, 2009 USG will no longer be offering traditional license pricing for on-premise UltiPro • On-Premise is typically >1000ee size customers • Pricing will be PEPM (but less than established SaaS pricing) • Sold by the Ultipro Enterprise direct sales team • Ultipro “Workplace” • Targeted to <1000ee companies (200ee-700ee focus) • Saas model • Same product as Enterprise, with different included/optional capabilities • Sold by a dedicated Ultipro Workplace sales team

22. Ultipro Pricing

23. UltiPro “Workplace”vs. Abra SQL Comparison

24. Abra SQL BYOB vs. UltiPro Workplace(no implementation shown) – 300ee Example

25. Abra SQL Proposal Tuning vs. Ultipro SaaS <500ee Opp’s. Hosting Understand importance of hosting to prospect. Ultipro is ALWAYS hosted. Include optional nGenX hosting service in proposal Implementation Target standard implementation at 40% - 50% of license Call out advanced/custom & on-site work separately – show the value Match Abra capabilities to customer needs Are all the modules needed? (Ultipro does not unbundle core) 1st year outlay a key driver for customer? Consider financing license/implementation over 3 years (KEF) Total cost of ownership Emphasize total costs over 2+ years (high SaaS costs NEVER END) Customization & Flexibility Abra can be customized (UltiPro cannot be) Can host additional applications at small incremental costs

26. Microsoft Dynamics GP

27. Microsoft Dynamics GP Overview • HR & Payroll (standard & advanced) • Available with Business Essentials & Advanced Management editions – same price points • HR and Payroll can be sold, installed separately • Standard HR required for Advanced HR option • Standard Payroll required for Advanced Payroll option • HRM Self Service and Benefit Self Service Suites • Only available with Advanced Management edition • Also requires named employee Business Portal seats at about $20 - $25 each (volume priced) • Microsoft can only win HR/payroll business with existing ERP customers, not competitive elsewhere.

28. Microsoft Dynamics GP vs. Abra SQL Comparison New

29. Microsoft Dynamics GP Pricing

30. Abra SQL Bundle Special MAS 500 Pricing* • --Special Abra pricing when competing with GP & MAS 500 • --Bundle includes: Abra SQL HR, Attendance, Payroll & payroll-GL integration utility; Annual support is 25% of license • * -- Network seats are no charge, but must be ordered separately • * -- All other Abra modules are at regular list prices

31. Abra SQL Special Pricing vs. Dynamics GP HR/Payroll

32. Abra SQL Special Pricng vs. Dynamics GP HR

33. Mangrove

34. Mangrove Overview and Positioning • Privately held company founded in 1994 • Provides fully integrated 100% web-based HR, PR, Benefits Mgmt., Applicant tracking and Self Service • Payroll can be sold stand-alone; HR requires payroll • Offered as licensed or SasS/outsourced solution • Targeted to <5,000ee companies

35. Mangrove License Pricing

36. HR/Payroll License Includes

37. ESS License Includes

38. Spectrum iVantage

39. Spectrum Overview • Privately held company founded in 1984 with 125 employees, $15million in revenue • Offers one web-based HR solution – iVantage • “Full service implementation company” • 400 – 500 customers on current product • Competitive on the upper end of Abra’s range, but lacks payroll capabilities • Product promoted as good for training and development, certification and applicant tracking • Three purchasing models: • Purchase software and self-host • Purchase the software and pays Spectrum to host • Subscription to service monthly

40. Spectrum Pricing • License includes: Named manager/HR users, Power users, HR, compliance, COBRA, Benefits management, Report writer (4 tools), Applicant manager, postings, requisitions, Absence management, Performance Management, Manager self service, Alerts, Form routings, Customization toolkit

41. Spectrum iVantage Optional Modules

42. People - Trak

43. People - Trak Overview and Positioning • Southern California based company founded in 1992 • Offers a “high-performance, fairly priced “ Human Resources Information System (HRIS) • Targeted to >50ee, price per employee, no hosting • Three applications and functionalities “modules” • Essentials – “core” offering, manage and report everyday HR tasks • Strategic – HR Essentials plus customization tools • Web Add-On

44. People - Trak Pricing • Priced “per employee” and sold in increments of 50ee

45. HR Essentials Includes: Personnel Management Time and Attendance Appraisal Management Benefits Administration Compensation Safety Management COBRA Administration Competency Job Profiles Rules Based Security Query Based Report Writer Form/Letter/Label Editor And more HR Strategic includes: All of HR Essentials Approvals Workflows Process Triggers Screen Customization Derived Fields Electronic Forms People – Trak Pricing License Components

46. Ascentis

47. Ascentis Overview and Positioning • California based company founded in 1980 • HR is hosted or licensed, Payroll is hosted (out-source) only • HR & Payroll can be purchased separately • Payroll pricing is PEPM (not per pay) • Touts it’s products “ease of use” • Ascentis competes with Sage on the lower end, serving companies with basic core HR/payroll needs. • Targeted to 100 – 2,500ee companies

48. Ascentis Pricing • Annual support is bundled with license 1st year • Payroll is only available as service bureau

49. HR Standard: HR Compliance COBRA Benefits Management Report Writer (not crystal) Org Charting Payroll Link Applicant Manager PTO HR – Premier includes: All of HR Standard ESS Benefits enrollment Ascentis Pricing License Components

50. Competitor Profile: Ceridian • Following a change in ownership (public to private equity), company is attempting a makeover. • Revenues in the $1.5 billion range, profitable • Poor track record with technology development and acquisition, recently hired Lawson’s CTO. • Core HR capability (Latitude, SaaS-based) is competent and well integrated with payroll. • Resells best-of-breed solutions for time and attendance, performance management, learning. • Owns a recruiting solution via acquisition