Corio Applications on Demand Marketplace David K

Corio – Applications on Demand Marketplace David K. Nielsen Regional Sales Vice President February 17 th, 2005 ** Corio Confidential Information** 1

Agenda § The ASP Business Landscape § The Early Days § Sales and Marketing at Corio § Lesson Learned ** Corio Confidential Information** 2

The CIO Dilemma Reduce costs of current enterprise apps IT Organization Deliver new applications fast, at low cost and low risk Eliminate multi-year, multi-million, multi-consultants applications projects 3 Absorb required applications maintenance expenses § § “Do more with less” Adapt to variable user demands Budgets will not increase Results required in months ** Corio Confidential Information**

Our Focus: Enterprise Application Management Applications Management Full Life Cycle: Implementation, Production, Upgrades Application Software Corio Outsourced On. Site Infrastructure Our Strategy: Applications on Demand TM 4 ** Corio Confidential Information**

Corio’s Offering § We Manage – Customer Assets (Servers and ERP Software) – Hosted or Remote Applications Management – Service Level Agreements (SLAs) § We DO NOT – Provide Software Subscription Rental – Resell ERP Software, ie Oracle, People. Soft, SAP Application Management Services with SLAs for a Monthly Fee 5

Enterprise Applications Management Architecture We support an end-to-end scope for our customer’s mission critical enterprise applications 6

Application Management Center (AMC) Corio FULL SERVICE: Corio monitors and takes responsibility for the application and infrastructure 7

Corio Delivery Model Analysis On Demand Services Applications Administration Database Management • • App Administration and Availability Application DB Administration System Performance Tuning Job Scheduling • 7 x 24 Service Desk • Monitoring and SLA Reporting • Service Request Management Network Services Computing Assets Data Center / Network 8 • Corio responsible for architecture, configuration and optimization of entire infrastructure • Robust security infrastructure • System and OS Maintenance • System and OS Changes • Capacity Management Data Availability Services Security Services • Single SLA that covers Infrastructure and Applications • Single point of Accountability Operations Services Systems Administration Corio Full Service • Storage Administration • Hardware Availability and Fail over • Backup / Restore / Diagnostics • Perimeter & Network Security • Server Host Security • Hardware and Systems Software Assets • • Network Services Network Maintenance and Change Equipment Configuration Management Network Fail over Corio On. Site • Leverages Customer Data Center • Leverages Customer Infrastructure Management resources • Customer to demonstrate ability to meet SLA’s requirements that are dependencies on application availability • Solution architecture to be built based on Corio Standards

Representative Clients Financial Services Communications, Content and Hospitality Public/Non-Profit Sector Consumer and Industrial Manufacturing High Tech 9 ** Corio Confidential Information**

IDC Leadership Grid Source: IDC Leadership Grid, 2002 § 175, 000 Users Supported § 1 Billion Transactions Processed § 100, 000 Service Requests Fulfilled § 1, 000 Projects Executed § 1, 000 IT Professionals Engaged §$100 Million Investment in Processes and Technology "Corio's success with top customers validates that the enterprise ASP model continues to gain traction in the Fortune 1000. " Bill Martorelli, Giga “By Showing steady progress toward profitability and offering new usage-based pricing for services, Corio is in a good position to take advantage of the increasing interest in On Demand computing. It has struck a good balance between the original rigid ASP model and the “your mess for less” traditional outsourcing model. ” Lance Travis, AMR 10 “The competitive environment in this market is changing very rapidly, and leaders are beginning to emerge. According to our analysis, Corio is a leader in the enterprise ASP market today, and the company has a clear plan to retain that position in the future. ” Amy Mizoras, IDC

Leveraging Core Competencies IT Technologies Projects Off-Shore Apps Management Systems Integrators ISVs Functional S/W IT Outsourcers Infrastructure Competency $/hour 11 BPR Software Licenses Asset Management ** Corio Confidential Information** Enterprise Application Management

Corio’s Annual Revenue Growth 15%-25% Revenue Growth Expected This Year 12

Corio i. SRVCE A Technology Resource Management (TRM) Solution Corio i. SRVCE provides Corio customers with visibility and control over their hosted applications by tying Support, On Demand Services, Content Exchange, SLAs, Billing and Knowledge into a cohesive IT management system. § Support –Track and manage service requests and incidents –Reporting and analysis of service requests § On Demand –Learn about relevant On Demand Services, such as Corio Development, Delegated User Provisioning –Place Orders –Track Provisioning Status –Manage Shopping Cart § Content Exchange –Upload/Download content from your applications § SLAs –SLA Metrics and reporting –Track contracts & addendums § Billing –Online bill presentment § Knowledge –Document version, collaborate, search and archive –Contracts, project dashboards, billing, reporting, architecture diagrams etc. 13 ** Corio Confidential Information**

i. SRVCE DEMO 14

Agenda § The ASP Business Landscape § The Early Days § Sales and Marketing at Corio § Lesson Learned ** Corio Confidential Information** 15

Corio History Jonathan Lee founded Corio in September 1998. With an intimate understanding of the complexities and challenges associated with fast growth, Jonathan transformed DSCI (a virtual "IT team for hire" that he also founded) into Corio. Excite@Home signed on as Corio's first customer and was brought live by Corio’s People. Soft Professional Services in fewer than 60 days, becoming the ASP industry's first live-hosted customer. This win provided “proof-of-concept” to an ASP market that analysts predict will exceed $20 billion by 2002 and helped to catapult Corio into its industry leading position. Corio went from the initial 20 person founding team in September of 1998 to 580 employees and a successful IPO in July of 2000. (18 months) After two strategic acquisitions, Corio now has approximately 120 customers and approx 370 employees. On January 25, 2005, IBM announced the acquisition of CORIO 16

Corio Milestones 17

Corio Milestones 18

Corio Milestones 19

Market Mood Swings Industry Evolution Increased Awareness of Challenges Early Failures Many New Entrants “Destroy the Hero” Press Hype Long-Term Leaders Established More Failures Early Adopters Buy In Market Leaders Cross Chasm Industry “Founded” Hype Doom Renewal “Create a Hero to Destroy One” 20

Market Casualties and Consolidation Bidcom Employease Microsoft BOL e. Center Legacy Software Siebelnet SAP Host JDE Source Applicast Vertical Product e. Online Salesforce. com ASPs Blue Meteor Current ASPs Interrelate Aristosoft Netledger ADP Critical Path Interliant Corio USi Bell South Exodus MCI Infrastruc ture Sprint Level 3 Loud Cloud CGEY Regional’s IBM D&T S I’s AA ‘iant’s PWc IGS’s 21 Portera New Entrants

Initial Market Conclusions Unique Model u The ASP Model is a Unique Model u. Not a Consulting Business u. Not a Software Business u. Not an Outsourcing Business u. Not an Infrastructure Business 22 Scalability u Creating a Scalable ASP Business Model is the Core Challenge Lying Ahead

Agenda § The ASP Business Landscape § The Early Days § Sales and Marketing at Corio § Lesson Learned ** Corio Confidential Information** 23

Marketing Primary Responsibilities § Campaigns targeting New Prospects – Corio Applications on Demand Campaign – Corio / SI & ISV Partner Programs § Campaigns targeting Corio Customers – Corio Insights: Newsletter – Corio Enhancements web seminar § § § PR Schedule – Target weekly releases Industry Analyst Relations Events - People. Soft Users Conference Web Site Product Re-freshes - Update collateral and support materials Other – Customer Advisory Board – Corio i. SRVCE – Customer Reference Call in Program 24

Motivating Events to Engage An ASP (Some of our Marketing Strategies are geared to Trigger Events) Trigger Events Upgrades New Implementations 25 Cost Reduction Initiatives Business Continuity Support New Businesses

Demand Process From Generation, to Qualification, to Prospect {-------M a r k e t i n g ------}{------S a l e s------} Generating Qualifying Prospect Identified Goal = Identify opportunities Goal = Convert B/Cs to A leads Goal = Convert A lead into Closed Deal B/Cs A Campaigns Events Google Calls Closed Telebusiness Emails to Corio Inbound Calls PR/Website Offers Emails Pipeline Forecast Outbound Calling Referrals SI Partners ISV Partners Technology Partners 26 Sales Is Primary Lead on these lead sources Lost / Off

Agenda § The ASP Business Landscape § The Early Days § Sales and Marketing at Corio § Lesson Learned ** Corio Confidential Information** 27

Lesson’s Learned from Silicon Valley Start Up § Be VERY clear on what pain you are out to solve § Stay VERY connected to your customer § Be Flexible § If you are VC backed… they will mostly likely be active in the early days. 28

Questions? ? ? 29