MARKET ANALYSIS Worldwide Software 2008Œ2012 Forecast

MARKET ANALYSIS

Worldwide Software 2008–2012 Forecast Summary

Richard V. Heiman

IDC OPINION

The worldwide software market underwent very strong revenue growth from $231.1 billion in 2006 to $262.7 billion in 2007, an annual increase of 13.7%. However, from 2007 to 2012, the projected compound annual growth rate (CAGR) is a more modest 7.7%. IDC believes that:

The 2007 growth was in part due to the weakness of the U.S. dollar against other major currencies.

The software industry is maturing and consolidating. This phenomenon continued in 2007 and will do so in the future.

Emerging market drivers such as Eureka 2.0, software appliances, service- oriented architecture (SOA), and virtualization will provide growth opportunities even in the face of macroeconomic uncertainties and volatility.

Successful software vendors will be those that can best adapt their technologies and business models to the continually changing dynamics of the marketplace.

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Filing Information: July 2008, IDC #213259, Volume: 1 Software Overview: Market Analysis

TABLE OF CONTENTS

In This Study 1 Methodology ...... 1 Executive Summary...... 2 Situation Overview 8 Worldwide Software Market Performance in 2007...... 8 Future Outlook 136 Forecast and Assumptions ...... 136 Market Context ...... 162 Essential Guidance 163

Learn More 163 Related Research...... 163 Appendix A: Worldwide Software Market Sizing and Forecast Methodology...... 168 Appendix B: Worldwide Software Market Forecast Summary Glossary ...... 170 Appendix C: Competitive Market Map Methodology...... 214

LIST OF TABLES

P 1 Worldwide Packaged Software Revenue by Region and Primary Market, 2007...... 3 2 Worldwide Packaged Software Revenue by Top 100 Vendors, 2005–2007 ...... 14 3 Worldwide Packaged Software Revenue by Vendor, 2005–2007...... 16 4 Worldwide Packaged Software Revenue by Vendor and Region, 2007...... 38 5 Worldwide Application Development and Deployment Software Revenue by Top 50 Vendors, 2005–2007...... 68 6 Worldwide Application Development and Deployment Software Revenue by Vendor, 2005–2007 ...... 69 7 Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007...... 75 8 Worldwide Application Software Revenue by Top 50 Vendors, 2005–2007 ...... 83 9 Worldwide Application Software Revenue by Vendor, 2005–2007 ...... 84 10 Worldwide Application Software Revenue by Vendor and Region, 2007 ...... 99 11 Worldwide System Infrastructure Software Revenue by Top 50 Vendors, 2005–2007...... 120 12 Worldwide System Infrastructure Software Revenue by Vendor, 2005–2007...... 121 13 Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007...... 127 14 Worldwide Packaged Software Revenue by Top 50 Vendors and Operating Environment, 2007...... 135 15 Key Forecast Assumptions for the Worldwide Software Market, 2008–2012...... 137 16 Worldwide Packaged Software Revenue by Primary Market and Region, 2007–2012...... 159 17 Worldwide Application Development and Deployment Software Revenue by Operating Environment, 2007–2012 ...... 161 18 Worldwide Application Software Revenue by Operating Environment, 2007–2012 ...... 161 19 Worldwide System Infrastructure Software Revenue by Operating Environment, 2007–2012..... 161 20 Worldwide Packaged Software Revenue, 2005–2012: Comparison of June 2007 and June 2008 Forecasts ...... 162 21 Exchange Rates, 2003–2007...... 170

LIST OF FIGURES

P 1 Worldwide Packaged Software Revenue by Primary Market and Region, 2007...... 3 2 Application Development and Deployment Competitive Market Map...... 10 3 Applications Competitive Market Map ...... 11 4 System Infrastructure Software Competitive Market Map ...... 12 5 Worldwide Packaged Software Revenue by Primary Market, 2007–2012 ...... 160 6 Worldwide Packaged Software Revenue by Region, 2007–2012 ...... 160 7 Worldwide Packaged Software Revenue, 2005–2012: Comparison of June 2007 and June 2008 Forecasts ...... 163

This IDC study provides a comprehensive summary of the worldwide packaged software market for 2007 and a five-year revenue forecast by geographic region and operating environment through 2012. Vendor revenue and market share for nearly 1,000 vendors are provided for 2007.

Methodology

This study, published annually, encompasses the entire packaged software market, with the applicable market segment elements outlined below. Appendix A describes the methodology used for the development of content, and Appendix B provides a glossary that offers detailed market definitions and explains how IDC defines packaged software revenue. Appendix C describes the Competitive Market Map (CMM) methodology.

In addition, please note the following:

The information contained in this study was derived from the IDC Software Market Forecaster database as of June 23, 2008.

All numbers in this document may not be exact due to rounding.

For more information on IDC's software definitions and methodology, see IDC's Software Taxonomy, 2008 (IDC #210828, February 2008).

Primary Markets Covered

The study presents revenue and shares for the following primary markets as well as worldwide totals:

Application development and deployment (AD&D)

Applications

System infrastructure software (SIS)

Vendor and Market Segmentation

Geographic Regions

With regard to software product demand, three distinct geographical regions are considered in each vendor's revenue:

Americas

Europe, the Middle East, and Africa (EMEA)

Asia/Pacific

Each segment is defined in the software market glossary in Appendix B.

Market revenue and forecasts are also segmented by operating environment. Operating environments are defined collections of discrete hardware platforms and/or operating systems. The operating environments for this study are as follows:

Mainframe

Unix

Linux and other open source

Windows 32 and 64

Other (includes i5 and OS/400, other host/server, embedded, other single user, and hardware appliances)

Each operating environment is defined in Appendix B.

Software Market Taxonomy

This study's software market glossary (see Appendix B), which is extracted from IDC's Software Taxonomy, 2008 (IDC #210828, February 2008), presents a functional view of the worldwide software market. IDC defines functional markets in terms of the features, functions, and attributes of the software package, not the problem being solved or the industry into which the software is deployed. In IDC's software market taxonomy, the worldwide software market is divided into 81 functional markets.

The market information contained in this study is part of IDC's global software market coverage. The Related Research section of this study references companion IDC studies that go into greater detail and depth in analyzing individual software markets.

Executive Summary

The Packaged Software Market in 2007

Worldwide revenue increased from $231.1 billion in 2006 to $262.7 billion in 2007, an annual increase of 13.7%. Figure 1 illustrates 2007 software revenue by primary market and geographic region.

Table 1 shows the 2007 revenue totals of the worldwide packaged software market by geographic region and primary market. The Americas (North America and Latin America) continued to account for over one-half (51.3%) of worldwide packaged software consumption. EMEA, aided by the strong euro, accounted over one-third (34.3%) of worldwide revenue in 2007. Asia/Pacific (including Japan) accounted for the remaining 14.4% share of worldwide software revenue in 2007.

The applications primary market continued to account for nearly one-half of worldwide packaged software revenue, with 48.6% share in 2007 (down fractionally from 48.9% in 2006). SIS captured the second-largest share of worldwide revenue at 28.5%, with AD&D contributing the remaining 22.9%.

Worldwide Packaged Software Revenue by Primary Market and Region, 2007

Application development and deployment

Applications

System infrastructure software

0 1020304050607080 ($B) Americas EMEA

Asia/Pacific

Source: IDC, 2008

TABLE 1

Worldwide Packaged Software Revenue by Region and Primary Market, 2007

Revenue ($M) Share of Primary Market (%) Americas Application development and deployment 29,987 49.8 Applications 68,260 53.5 System infrastructure software 36,417 48.6 Subtotal 134,664 51.3 EMEA Application development and deployment 21,754 36.1 Applications 43,725 34.3 System infrastructure software 24,671 32.9 Subtotal 90,150 34.3 Asia/Pacific Application development and deployment 8,494 14.1 Applications 15,592 12.2 System infrastructure software 13,830 18.5 Subtotal 37,916 14.4 Worldwide Application development and deployment 60,236 100.0 Applications 127,576 100.0 System infrastructure software 74,918 100.0 Total 262,731 100.0

Source: IDC, 2008

Worldwide Software Market Drivers, 2008–2012

IDC published a number of predictions studies in late 2007 and early 2008 with analysts' views on the software market drivers for 2008 and beyond. Of course, the current macroeconomic climate, particularly but not exclusively in the United States, continues to be extremely volatile, with gasoline now over $4.00 a gallon, the ongoing weakness of the dollar, and the housing market crisis. Nevertheless, these predictions still provide important context for forecasting the software marketplace. Key predictions excerpted from these documents include:

IT suppliers will focus on hypergrowth emerging markets: "BRIC+9" and SMB. The 2008 forecast for cooling growth in worldwide IT spending will continue to drive the industry's major players to concentrate on high-growth emerging markets, with increasing investments in two key areas:

In emerging economies, led by the BRIC countries — and the next nine important emerging markets — all growing at two to three times the market average

In the SMB segment, in developed and developing economies, growing at 8–10% worldwide (SMB specialists in the IT market will be prime acquisition and partnering candidates.)

Eureka 2.0 applications will emerge that aggregate, categorize, mine, and analyze user behavior. The rising cacophony of crowds is already driving new applications that mine user behavior. As the din becomes unbearable, both users and vendors will try to make sense of too much information by looking for patterns and clues that distinguish one person or query from another. Happily for this market, business intelligence and categorization and search or matching engines become the key to discerning the differences. We dub these new applications — recommendation engines, user data mining in real time, real-time trend analysis, and personalized search results based on predicted similarities of interest and behavior — Eureka 2.0. These applications mine and harness the wisdom of crowds, based on the contextual and social aspects of information work and information exchange. Social networking services and application vendors will recognize the power of combining the information, relationships, and conversations they capture with powerful mining, clustering, matching, and recommendation engines. This combination will give end users a powerful information discovery platform that leverages trusted relationships with other people to filter and rank information.

SOA will become more critical in forming the foundation for provisioning and consuming services. When SOA started gaining popularity some years back, many individuals and enterprises approached it (and still do) as an integration paradigm. The idea of services being provisioned and sourced anywhere to be called upon, composed, and consumed anywhere is helping drive and converge SOA activities within the world of software as a service (SaaS). IDC believes that enterprises will become even more interested in adopting SOA constructs to take advantage of services being sourced from a variety of parties, especially external services on demand. What is important to

4 #213259 ©2008 IDC note is that many organizations that may have not yet jumped on the SOA bandwagon for a variety of reasons may be compelled to do so in order to best leverage such on-demand services and sourcing options. Second, many on- demand application and services providers that entered the market without following SOA architectural tenets or upholding industry standards such as Web services will be rapidly adjusting and enhancing their offerings in order to compete for customers demanding more integration and support capabilities, and to provide what is necessary to build out a rich ecosystem of partners to build out more integrated solutions and drive business their way.

Application pairing strategies (deep vertical applications combined with best-of-breed functional applications) will become the dominant bundling strategy for reaching enterprise and midmarket customers. Last year, IDC predicted that customer demand for application software that is more ready to use would drive software vendors to offer even more specific vertical solutions as derivatives of their product suites, referred to as microverticalization. That has now become the mainstream strategy for many enterprise vendors as they have continued to develop or acquire more and deeper vertical software and intellectual capital. In addition, most enterprise vendors have released SOA- enabled versions of their applications. These two factors combined, customer demand for microvertical solutions and easier integration due to SOA capabilities, have led to a different go-to-market approach from many vendors. Instead of leading with the more "core" ERP applications in a sales situation, the approach is often to lead with the microvertical solution.

Ecosystem owners will make content management an integral part of their stack — the next step in the natural evolution of content management to infrastructure service. Ecosystem owners have staked their claims and placed their bets over the past few years (culminating in a cascade of large acquisitions in 2006) in content management. As everyone is well aware, the lion's share of the information in the enterprise exists outside of the rows and columns of relational databases and the enterprise applications that run on top of them. Managing unstructured information — business documents; rich media such as images, audio, and video; email and other communications; and so forth — has risen to the top of the compliance agenda. In 2008, content collaboration and transactional content come to the fore in customer agendas. Aiding and abetting this is the rise of video and other rich media in the enterprise for executive communications to employees, training and certification business processes, and employee collaboration, whether via videoconferencing or via on-demand replay of captured meetings — all of which creates fresh demand for content technologies that can help classify, index, manage, and find relevant information. Vendors have already begun to lay the foundation. In 2008, loosely coupled solutions will start to morph into platforms that implement content awareness at the API and Web services levels at different tiers of the stack. It will take a few more years for a fully integrated platform for structured and unstructured information to emerge, but we'll see the outlines in 2008.

Consolidation will continue as large IT vendors continue to extend their versions of the information access and management platform by acquiring smaller, specialized technology companies. Acquisitions in this space have

©2008 IDC #213259 5 often involved a fairly large vendor, such as FileNet, Cognos, Hyperion, or Stellent, being acquired by an even larger vendor, such as IBM or Oracle. The next phase for information access and analysis consolidation will shift to the acquisition of innovative start-ups by bigger players. Large software vendors will continue to extend their versions of the information access and analysis platform by acquiring smaller, specialized technology companies. These smaller vendors provide missing pieces to the larger vendors' offerings. The business model for many of these start-ups has acquisition, not world domination, as the end game.

Business process management will be increasingly viewed as a must-have despite the gloomy economy. While many signals indicate a slower IT spending climate in 2008, that doesn't mean all software will be equally affected. IDC believes that business process management suite (BPMS) software is one area likely to experience positive, counter-cyclical growth.

Automation will play an important role as IT organizations control costs, improve service delivery, meet compliance regulations, and manage virtual resources. Automation will play an increasingly critical role as IT organizations strive to control costs, improve service delivery, meet compliance requirements, and manage virtualized resources. Automation will range from simple tactical task-based applications to sophisticated policy-driven solutions. Expect traditional systems management software vendors to increasingly compete on several fronts, including run book automation, workload scheduling and automation, and end-to-end datacenter automation. Automated management of virtualized resources will grow as IT organizations look for automated control of increasingly dynamic infrastructures. Another area to watch is automated management of infrastructure to achieve power and cooling operating efficiencies. One outcome to watch carefully is the strong potential for increased merger and acquisition activities, particularly on the part of large companies to acquire smaller point product vendors, as the giants try to accelerate the filling out of their automation portfolios.

IT portfolio management will provide the missing application life-cycle management link — IT governance will emerge. Key product capabilities for IT portfolio management will deepen, enabling global 2000 executives the ability to leverage quantitative input from testing, software change, and configuration management and requirements tools to evolve qualitative decision making and to better prioritize the IT project portfolio. Emerging IT governance (ITG) or the integration between IT asset portfolio management tools and IT project portfolio management tools will enable coordination across IT and operational teams to facilitate corporate planning across these key areas. Alliances between existing ITPM vendors and/or tighter integration with internally owned asset portfolio management tools will extend beyond those that have already integrated products and occur during the 2008–2010 time frame.

System management vendors will partner with nonmanagement vendors for virtual application life-cycle management, generating industry buzz and revenue. System management vendors have partnered with application, virtualization, hardware, and services vendors for technology acquisition as well as to extend the reach of their channels to customers. What is different here is

6 #213259 ©2008 IDC that these relationships will leverage the acquisition/consolidation boom in other software markets to provide a management console to leverage an end-to-end view of the service being delivered to that customer.

Virtualization will move from a technology discussion to a broader business value discussion and will come to be known as "virtualization across the enterprise." For much of the industry, the most exciting story around virtualization software has been mostly focused on server consolidation and reducing physical footprints and the resulting hardware acquisition cost reductions, resulting in lower power and cooling costs. During 2008, watch for customers to begin upleveling their virtualization road maps from a relatively simplistic technology play to a more comprehensive and longer-term end-to-end adoption road map that will impact servers, clients, storage, and even network architectures over the next decade. Simply stated, virtualization begins a process that will extend this technology phenomenon far beyond its current general role as a tool for server consolidation. Live migration, or the ability to move virtual servers to alternate computing resources while running, is a trend that will lead virtualization platform providers to accelerate their capabilities in performance management, process automation, disaster recovery, application awareness, change and configuration management, and lab automation. This solutions- based approach will also drive deeper and tighter collaborations between hypervisor providers and ISVs, via partnerships and integration with leading vendors in the storage software, network I/O virtualization, and application market segments. Ultimately, this approach will become known as "virtualization across the enterprise" and will be seen as the foundation for true service-centric computing through the use of policy-based automation software to coordinate between the server, storage, network, and user client access devices and end- user software.

Software appliances will move beyond an application delivery form factor and become a new medium for competitive differentiation, accomplishing previously difficult tasks such as aggregation of unused processor and storage resources. Last year, IDC predicted that software appliances would become a household word in corporate IT. We believe that prediction has, for the most part, come true. Our expectations for software appliance adoption are for basic network and Web infrastructure appliances to lead the curve, followed by network-oriented solutions such as PBX solutions, with business-oriented software appliances taking a secondary role in terms of the overall volume of adoption. Security software appliances will be a hot ticket, but an emerging new class of infrastructure software appliances will make a strong showing for themselves. These software appliances will include devices that aggregate resources that are either underutilized or totally unavailable from existing infrastructure configurations.

Open source software will increasingly impact business decisions. Open source software is continuing to drive innovation in the application development software market and is influencing business decisions and shifting fundamental approaches to software creation. While users are now beginning to seriously address content and license management issues, vendors are evaluating OSS leverage, opportunities, and challenges. Traditional software development

©2008 IDC #213259 7 strategies dominate, but they are changing. Hybrid business models emerging now will evolve further and solidify over the next several years. Competing with free is always difficult. The result is declining prices in one context but potential leverage in others.

2008 won't be the year of the Linux desktop in the conventional sense, but the combination of new form factor client devices, client OS virtualization, and application virtualization will open the door for Linux to serve other emerging needs. 2008 won't be the year of the Linux desktop, again — at least not as in the form factor of a Windows Vista killer. However, if you look beyond the traditional PC form factor and consider deployments like client-focused software appliances, thin-client operating systems, and server-hosted client operating system deployments, or even in related form factors such as an appliance built on Linux designed to run on Intel VPro, you may just find that the year of the Linux desktop is beginning to happen. While we still don't expect any "big bang" for the entry of Linux into the client market (and let's not forget there was never any "big bang" for Linux on the server side), we do expect to see Linux on the client side continuing to gain momentum.

Unified communications (UC) will start transforming business applications and telephony in 2008. After two years of supply-side marketing from vendors, customers will start implementing UC solutions to transform business applications and telephony in 2008. These customers will be looking to provide their users with an integrated user experience for unified messaging (email, fax, and voice messaging), online presence, instant messaging, Web audio and videoconferencing, and VoIP calling/IP telephony/call routing, and so on using a variety of PC and wireless devices. While many UC applications have been deployed individually over the past decade, gains in unified user interfaces, VoIP call control, network-delivered presence, and other advances have provided the glue to bind these applications together so that users can share, collaborate, discuss, store, search, and talk within a rich unified user experience. The transformation will begin simultaneously in two distinct areas of the organization: within the knowledge worker's communication environment and within the contact center.

See the Learn More section of this study for an extensive listing of IDC's predictions documents.

SITUATION OVERVIEW

Worldwide Software Market Performance in 2007

Table 2 shows a ranking of the top 100 worldwide software vendors by revenue and market share. Table 3 lists the worldwide software vendors in alphabetical order. A view of the key software vendors and their key market shares in the worldwide packaged software market by region is provided in Table 4.

8 #213259 ©2008 IDC This study also includes revenue data for each of the three primary markets: AD&D, applications, and SIS. AD&D revenue is covered in Tables 5–7. Applications revenue is covered in Tables 8–10. Similarly, SIS revenue is displayed in Tables 11–13. For each of these primary markets, we provide a list of the top 50 vendors (by 2007 market share) and then list all vendors alphabetically with worldwide revenue and by geographic region.

IDC calculates market share by dividing each vendor's 2007 software revenue by the total 2007 worldwide software revenue for the market sector analyzed. Rank is also provided and based on vendors with reported software revenue. A few of the vendors in last year's study either departed from the software business (or from a specific primary market segment) or were not able to identify software revenue; the result is a dash entry for 2007 revenue and "NA" for 2006–2007 growth. Tables 5–13 are specific to primary markets rather than the total software market.

Performance of Leading Vendors in 2007

Microsoft, IBM, Oracle, SAP, Symantec, HP, EMC, CA, Siemens, and Adobe were the 10 leading vendors in the worldwide software market in 2007. There was no change in ranking from 2006 for these leading vendors. Collectively, these 10 leading vendors account for 45.7% of total worldwide packaged software revenue. Additionally:

It is important to note that the 2006 rankings are based on Table 2 in this study, not on what was published last year, because divestitures, mergers and acquisitions, and other updated information invalidate comparisons using the 2006 data from previous studies.

To improve consistency between the Worldwide Software Market Forecaster database (the source of the data contained within this study) and IDC regional software trackers, IDC has removed all security hardware appliance revenue from the Worldwide Software Market Forecaster database (revenue that was previously included). Security appliance revenue will continue to be tracked in IDC's Security Appliance Tracker and in selected other worldwide reports. This adjustment had the biggest impact on the secure content and threat management market, where approximately 40% of total revenue in 2007 was related to security appliances.

See Appendix A for information regarding the treatment and impact of currency exchange rates on the data contained in this study.

Competitive Market Maps

The Competitive Market Map is an IDC tool for evaluating the competitive position of software vendors in an increasingly complex market. The CMM is a tool that permits quantitative competitive analysis based on four variables: size, scope, momentum, and reliance. The definitions of these variables are contained in Appendix C.

©2008 IDC #213259 9 Competitive Market Maps including the top 10 vendors in each primary market are presented in Figures 2–4. Common to all of these CMMs is the effect of market consolidation. The size of the "bubbles" for the leading one or two vendors in all three primary markets dwarf those of the rest of the vendors in the top 10. Continuing consolidation in the software industry is clearly in evidence.

FIGURE 2

Application Development and Deployment Competitive Market Map

SAS Cognos Business Objects BEA

HP CA Sybase

Size: Measure of a vendor’s software revenue in selected market Momentum: Size adjusted annual software growth rate for selected market Reliance (color): A vendor’s dependence on selected software revenue: grey = 0–24%, yellow = 25–49%, orange = 50–74%, red = 75–100% Diversity: Measure of the breadth and depth of product offerings within selected software market

Source: IDC, 2008

Applications Competitive Market Map

Adobe

IBM Sage Group Autodesk Siemens

Intuit Infor

Source: IDC, 2008

System Infrastructure Software Competitive Market Map

VMware Symantec EMC Citrix CA HP McAfee Sun

Size: Measure of a vendor’s software revenue in selected market Momentum: Size adjusted annual software growth rate for selected market Reliance (color): A vendor’s dependence on selected software revenue: Grey = 0–24%, yellow = 25–49%, orange = 50–74%, red = 75–100% Diversity: Measure of the breadth and depth of product offerings within selected software market

Source: IDC, 2008

Top 50 Vendors' Shares of the Worldwide Software Market by Operating Environment

Table 14 presents the top 50 software vendors worldwide by total software revenue segmented by major operating environments. For situations in which packages are licensed to multiple platforms, IDC allocates revenue to the primary server platform, thus potentially understating client-side revenue, particularly in the applications primary market.

Application Development and Deployment

The AD&D markets include software products used for the development and deployment of applications. There are two major subdivisions of the AD&D primary market:

Software products that full-time professional developers use to develop and deploy applications

Data access, analysis, and delivery products that are end user–oriented tools for ad hoc data access, analysis, and reporting

In the aggregate, the worldwide AD&D software functional markets generated vendor revenue of $60.2 billion in 2007, a healthy increase of 11.7% from the 2006 total of $53.9 billion, as shown in Table 5, which also presents the top 50 AD&D vendors ranked in order of 2007 worldwide revenue. The top 50 AD&D vendors accounted for an 81.7% share of the total AD&D market in 2007, essentially unchanged from 2006. Table 6 provides a list of the leading vendors in the worldwide AD&D market in alphabetical order.

The Americas (predominantly the United States) accounts for the largest share of AD&D revenue. As shown in Table 7, 2007 revenue for the Americas region was $30.0 billion, which equates to a 49.8% share of the overall worldwide AD&D market total. EMEA was the second-largest market, with a 36.1% share in 2007, followed by Asia/Pacific at 14.1%.

Applications

This market consists of both business and consumer applications. Business applications, in turn, consist of enterprise applications and nonenterprise business applications, such as collaborative, content management, authoring and publishing, and search and discovery applications. In 2007, the packaged applications market grew a healthy 12.8% to $127.6 billion from the 2006 total of $113.1 billion (see Table 8). Table 9 provides a list of the leading vendors in the worldwide applications market in alphabetical order. As illustrated in Table 10, the Americas consumes the largest share of applications software, accounting for a 53.5% share in 2007.

System Infrastructure Software

The total SIS market accounted for $74.9 billion in revenue for 2007, up 16.8% from $64.1 billion in 2006, as shown in Table 11. Table 12 provides a list of the leading vendors in the worldwide SIS market in alphabetical order. As in the other primary markets, the Americas accounted for the largest share of SIS consumption in 2007 at 48.6% of the worldwide total (see Table 13).

Worldwide Packaged Software Revenue by Top 100 Vendors, 2005–2007 ($M)

2006–2007 2007 2007 2005 2006 2007 Growth (%) Share (%) Rank Microsoft 35,541 37,346 46,091 23.4 17.543 1 IBM 18,720 20,035 21,824 8.9 8.306 2 Oracle 12,444 14,682 17,128 16.7 6.519 3 SAP 7,550 8,338 10,188 22.2 3.878 4 Symantec 5,166 5,135 5,448 6.1 2.074 5 HP 4,392 4,469 4,612 3.2 1.755 6 EMC 3,491 3,637 3,938 8.3 1.499 7 CA 3,588 3,584 3,825 6.7 1.456 8 Siemens 3,333 3,496 3,808 8.9 1.449 9 Adobe 2,415 2,525 3,093 22.5 1.177 10 Fujitsu 2,285 2,250 2,270 0.9 0.864 11 Sage Group 1,720 1,869 2,172 16.2 0.827 12 Autodesk 1,454 1,815 2,060 13.5 0.784 13 SAS 1,531 1,731 1,957 13.0 0.745 14 Sun Microsystems 1,661 1,787 1,799 0.7 0.685 15 Infor 1,551 1,656 1,781 7.5 0.678 16 Cisco 1,130 1,456 1,762 21.0 0.671 17 Intuit 1,352 1,425 1,581 10.9 0.602 18 BMC 1,396 1,473 1,577 7.1 0.600 19 Dassault Systemes 1,054 1,127 1,486 31.9 0.566 20 Cadence Design Systems 1,203 1,350 1,470 8.8 0.559 21 SunGard 1,238 1,358 1,452 7.0 0.553 22 Hitachi 1,357 1,349 1,429 6.0 0.544 23 Citrix 809 1,057 1,392 31.7 0.530 24 BEA 1,100 1,227 1,325 8.0 0.504 25 Business Objects 1,083 1,179 1,299 10.2 0.494 26 VMware Inc. 363 684 1,283 87.5 0.488 27 McAfee 952 1,065 1,183 11.1 0.450 28 Vivendi 526 696 1,156 66.1 0.440 29 Synopsys 943 1,042 1,153 10.7 0.439 30 McKessonHBOC 1,000 1,085 1,149 5.9 0.437 31 Network Appliance 501 747 992 32.9 0.378 32 Avaya Inc. 879 872 973 11.6 0.370 33 NEC 850 886 967 9.1 0.368 34 Cognos 759 832 931 11.9 0.354 35 Sybase 768 858 912 6.3 0.347 36 Apple 722 715 910 27.3 0.346 37 Fiserv 744 818 893 9.1 0.340 38 Trend Micro 622 713 826 15.9 0.314 39 Misys 696 706 762 7.9 0.290 40 Mentor Graphics 600 673 747 11.0 0.284 41 Compuware 733 740 738 -0.3 0.281 42 Teradata 630 655 735 12.4 0.280 43 PTC 644 729 704 -3.4 0.268 44 Software AG 549 599 701 17.0 0.267 45 Cerner 592 673 700 3.9 0.266 46 Novell 704 647 692 7.0 0.263 47

Worldwide Packaged Software Revenue by Top 100 Vendors, 2005–2007 ($M)

2006–2007 2007 2007 2005 2006 2007 Growth (%) Share (%) Rank Nortel Networks 631 674 667 -1.0 0.254 48 Fair Isaac 650 680 664 -2.3 0.253 49 Quest Software 472 562 631 12.4 0.240 50 Salesforce.com 281 452 616 36.4 0.234 51 SWIFT 532 569 610 7.2 0.232 52 Check Point Software Technologies 493 522 591 13.2 0.225 53 Intergraph 449 496 581 17.0 0.221 54 ESRI 465 516 570 10.5 0.217 55 Nuance Communications Inc. 401 473 551 16.5 0.210 56 Reynolds & Reynolds 500 500 542 8.3 0.206 57 Open Text Corp. 547 535 540 1.0 0.205 58 Electronic Arts 403 544 533 -2.1 0.203 59 Sterling Commerce 399 434 501 15.4 0.191 60 TIBCO Inc. 382 429 480 11.8 0.183 61 Unisys 531 474 461 -2.9 0.175 62 Verint Systems 209 374 458 22.4 0.174 63 Attachmate 387 417 458 9.9 0.174 64 Aspect Software 510 449 457 1.9 0.174 65 Autonomy 259 357 456 27.6 0.173 66 Lawson Software 359 363 444 22.4 0.169 67 Progress Software Corp. 386 411 442 7.6 0.168 68 Red Hat Inc. 242 333 424 27.2 0.161 69 GXS 400 390 390 0.0 0.148 70 Micros Systems 259 348 388 11.5 0.148 71 Bentley Systems Inc. 286 306 377 23.4 0.143 72 Kronos Inc. 293 318 375 17.9 0.143 73 Genesys Telecommunications Laboratories 280 311 367 18.0 0.140 74 Pitney Bowes Distribution Solutions 324 342 366 7.0 0.139 75 ASG 309 329 345 4.9 0.131 76 Amdocs 270 297 337 13.3 0.128 77 Informatica 259 286 326 14.1 0.124 78 DATEV eG 289 294 323 10.1 0.123 79 Websense 249 294 312 6.3 0.119 80 Activant Solutions Inc. 216 223 311 39.7 0.118 81 ADP 283 286 305 6.7 0.116 82 Eclipsys 249 278 300 8.0 0.114 83 Ansys Inc. 122 203 297 45.9 0.113 84 HDS 304 273 294 7.8 0.112 85 NICE SYSTEMS 216 269 291 8.2 0.111 86 ACI Worldwide 261 281 279 -0.4 0.106 87 Exact Holding NV 239 247 278 12.8 0.106 88 Aspen Technology 209 252 277 9.7 0.105 89 Unit4 Agresso NV 212 238 271 14.0 0.103 90 Epicor Software Corp. 212 250 270 8.1 0.103 91 Invensys 255 267 268 0.6 0.102 92 MicroStrategy 216 249 266 6.6 0.101 93 Metavante Corp. 152 160 265 65.5 0.101 94

Worldwide Packaged Software Revenue by Top 100 Vendors, 2005–2007 ($M)

2006–2007 2007 2007 2005 2006 2007 Growth (%) Share (%) Rank Jack Henry & Associates 180 243 263 8.4 0.100 95 SPSS 210 234 262 12.0 0.100 96 VeriSign Inc. 225 253 260 2.8 0.099 97 SERENA Software 240 236 257 9.3 0.098 98 Information Builders Inc. 250 250 255 2.0 0.097 99 JDA Software Group Inc. 173 216 252 16.4 0.096 100 Subtotal 150,465 162,772 186,976 14.9 71.166 Other 62,032 68,334 75,755 10.9 28.834 Total 212,498 231,106 262,731 13.7 100.000

Source: IDC, 2008

TABLE 3

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank 29West – – 2 NA 0.001 958 3M 20 23 26 13.0 0.010 430 4CS 7 9 10 7.5 0.004 672 4D Inc. 33 35 38 6.1 0.014 364 Abacus Research AG 16 17 19 9.9 0.007 508 ABB Ltd. 62 70 84 19.6 0.032 217 ABC Systems 6 7 7 8.9 0.003 749 Able Commerce 6 6 4 -41.6 0.001 898 Accela 10 14 20 42.9 0.008 489 Accellion 1 5 6 24.4 0.002 808 Accelrys 43 41 41 -0.2 0.016 340 Accountpro 4 4 5 7.7 0.002 848 Accruent 23 26 28 7.7 0.011 417 AccuRev 5 8 8 2.6 0.003 728 ACI Worldwide 261 281 279 -0.4 0.106 87 Acronis 20 51 92 82.0 0.035 204 Actek 5 5 6 9.4 0.002 802 Activant Solutions Inc. 216 223 311 39.7 0.118 81 Active Endpoints Inc. 1 3 5 66.7 0.002 833 Active Voice 22 26 31 19.2 0.012 397 ActivIdentity 45 50 52 3.5 0.020 292 Activision Inc. 193 125 150 19.3 0.057 137 Actuate Corp. 106 110 124 12.8 0.047 161 Acxiom Digital 33 36 39 9.8 0.015 356 ADAM Software 0 1 3 120.6 0.001 932 Adexa 27 28 30 7.7 0.012 403 Aditro Group 90 95 105 11.4 0.040 180 Adobe 2,415 2,525 3,093 22.5 1.177 10

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank ADP 283 286 305 6.7 0.116 82 Advanced Data Exchange 7 8 9 10.5 0.003 701 Advanced Visual Systems 10 11 13 13.9 0.005 614 Advent Software 112 127 161 27.5 0.061 133 Advizor Solutions 7 9 10 12.1 0.004 651 Ahnlab Inc. 37 44 48 8.5 0.018 303 Aim Technology 3 6 7 9.4 0.002 774 Akonix 7 9 10 13.3 0.004 656 Aladdin Knowledge Systems 82 89 105 18.5 0.040 179 AlarmPoint 2 2 2 6.2 0.001 952 Alcatel Lucent 192 210 228 8.4 0.087 104 Alchemy Software Development Ltd. 2 3 3 26.2 0.001 910 Aldata Solution 40 57 43 -24.2 0.016 326 Aldon 15 16 18 9.8 0.007 521 Aleri – 1 3 500.0 0.001 911 Algor Inc. 12 12 13 6.6 0.005 598 Algorithmics Inc. 67 75 100 33.3 0.038 189 Alibre Inc. 4 4 4 -9.3 0.001 882 Allegro Development Corp. 14 15 20 35.7 0.008 487 Alloy Software 1 1 2 42.9 0.001 957 Allscripts 64 86 103 20.0 0.039 183 Allume Systems 6 6 6 4.1 0.002 783 AlmavivA 22 17 18 5.1 0.007 520 Altair Engineering Inc. 25 28 29 6.3 0.011 408 Altova 11 11 12 6.6 0.005 621 Amano Cincinnati 10 12 13 9.3 0.005 601 Amdocs 270 297 337 13.3 0.128 77 American Software 40 45 49 8.4 0.019 298 ANGOSS Software International Ltd. 4 5 6 14.4 0.002 810 Ansys Inc. 122 203 297 45.9 0.113 84 AnyDoc 9 10 10 4.2 0.004 669 AOL/Mapquest 70 73 79 8.8 0.030 229 Aonix 7 7 7 5.8 0.003 752 API Software 8 10 10 9.4 0.004 652 Appfluent Inc. 5 5 7 60.0 0.003 758 APPGEN Business Software 13 14 15 7.6 0.006 576 Appian 18 20 25 25.0 0.010 439 Apple 722 715 910 27.3 0.346 37 Applied Innovation Management 5 5 6 8.2 0.002 807 Applied Materials 17 18 19 6.1 0.007 498 Applied Systems Inc. 92 96 100 3.7 0.038 188 Applied Voice & Speech Technologies 26 29 34 17.2 0.013 380 Applimation 18 25 40 60.0 0.015 350 Aprimo Corp. 15 27 34 25.5 0.013 381 AptSoft 3 5 6 20.0 0.002 794 Aquitec International 6 6 6 9.6 0.002 781 Arcplan 24 26 29 11.0 0.011 410

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank ArcSight 42 54 81 50.0 0.031 225 Arena 16 18 13 -28.3 0.005 610 Argo Data Resource Corp. 18 19 20 4.5 0.008 492 Argos Systems 1 1 1 -56.3 0.000 974 ARI Network 8 8 9 15.6 0.003 695 Ariba Inc. 174 168 163 -2.8 0.062 132 Art Technology Group 71 72 96 32.6 0.037 195 ARTiSAN Software 6 8 9 11.8 0.003 690 ASA International 20 19 19 0.0 0.007 504 Ascentis 7 8 8 9.4 0.003 710 Ascentn 2 4 11 181.3 0.004 635 ASCON 11 12 18 45.0 0.007 518 ASG 309 329 345 4.9 0.131 76 Aspect Software 510 449 457 1.9 0.174 65 Aspen Technology 209 252 277 9.7 0.105 89 Assetlink 3 3 6 82.5 0.002 796 Astea International 14 13 20 53.2 0.008 480 Asure 12 16 18 9.4 0.007 525 AT Kearney Procurement Solutions 11 12 13 10.4 0.005 599 Atempo 30 31 41 32.3 0.016 343 ATOSS Software AG 15 16 20 23.5 0.008 482 Atrion International 15 16 18 9.1 0.007 526 Attachmate 387 417 458 9.9 0.174 64 Attest 3 3 4 8.7 0.001 895 Attunity 14 10 9 -7.9 0.004 683 Augeo Software 7 7 7 5.8 0.003 747 Authoria 28 29 35 22.8 0.013 372 Autodesk 1,454 1,815 2,060 13.5 0.784 13 Autonomy 259 357 456 27.6 0.173 66 Autotask 2 2 3 10.5 0.001 935 Auto-trol Technology 4 4 5 45.7 0.002 819 Avaya Inc. 879 872 973 11.6 0.370 33 AVEVA Group 98 124 179 44.1 0.068 126 AVG Technologies (Former Grisoft) 29 38 42 13.0 0.016 333 Avocent 84 93 91 -1.6 0.035 207 Avolent Inc. 14 15 12 -18.3 0.005 626 Axway 85 110 127 15.9 0.048 159 Ayanova (Ground Zero Tech-Works Inc.) 2 2 2 7.5 0.001 939 B & L Associates 11 11 12 5.9 0.005 623 B2 Systems Inc. 3 4 4 9.9 0.002 881 Backbase 3 5 5 6.5 0.002 827 Backweb 7 8 7 -9.1 0.003 751 BakBone Software 43 51 56 8.8 0.021 277 BancTec Inc. 89 96 103 7.3 0.039 185 BasWare 34 49 69 41.5 0.026 250 Baxter Planning Systems Inc. 7 7 8 6.7 0.003 721 BEA 1,100 1,227 1,325 8.0 0.504 25

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Beeline 35 41 45 9.4 0.017 316 Bentley Systems Inc. 286 306 377 23.4 0.143 72 Beta Systems Software AG 110 92 97 5.3 0.037 192 BEZ Systems Inc. 3 3 3 6.1 0.001 900 BigFix Inc. 18 29 42 45.6 0.016 337 Birdstep Technology 7 8 16 102.6 0.006 557 Bison 21 24 22 -8.9 0.008 471 Blackbaud 108 125 157 26.4 0.060 135 Blackboard 120 160 213 32.9 0.081 109 Bladelogic 18 37 71 91.0 0.027 246 BlueCielo ECM Solutions 10 9 10 8.1 0.004 657 Bluegarden AS 16 17 17 4.8 0.007 530 Blueprint 1 2 2 9.5 0.001 946 Bluespring Software 5 11 13 19.0 0.005 616 BMC 1,396 1,473 1,577 7.1 0.600 19 Bond International 18 22 26 17.9 0.010 427 Boothroyd Dewhurst 1 1 1 -12.9 0.000 966 Borland Software Corp. 182 211 196 -7.1 0.074 114 Bottomline Technologies 69 70 105 48.7 0.040 181 BR Solutions 2 2 3 11.4 0.001 923 Bradmark Technologies Inc. 5 5 8 45.9 0.003 719 BravoSolution 5 8 7 -15.2 0.003 765 Broadlane 13 14 16 10.5 0.006 555 BroadVision 41 40 44 9.8 0.017 322 Brooks Automation 94 86 92 7.3 0.035 205 BSP 28 30 32 3.8 0.012 393 Bull SAS 122 120 127 6.0 0.048 160 Business Objects 1,083 1,179 1,299 10.2 0.494 26 CA 3,588 3,584 3,825 6.7 1.456 8 Cactus Commerce 5 6 6 10.5 0.002 788 Cadence Design Systems 1,203 1,350 1,470 8.8 0.559 21 CalAmp 5 5 6 6.1 0.002 815 Callidus Software Inc. 35 50 64 29.2 0.024 259 Calypso Technology 18 22 24 10.0 0.009 444 Cambar Software 2 2 6 160.9 0.002 797 Campus Management Corp. 20 24 25 4.2 0.010 436 Camstar Systems Inc. 37 54 57 6.3 0.022 275 Cape Clear 16 21 28 35.6 0.011 420 Captaris Inc. 85 97 70 -27.8 0.027 249 CAS GmbH 22 25 26 4.1 0.010 432 Casewise 3 4 4 11.8 0.002 861 Cassatt 2 2 2 7.6 0.001 954 Cast Iron Systems 3 4 6 25.3 0.002 813 CCH 35 38 40 7.2 0.015 347 CCK Financial Solutions Ltd. 6 6 7 12.4 0.003 763 CDC Corp. 152 160 137 -14.6 0.052 146 Cegedim 167 182 216 18.9 0.082 106

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Cegid SA 143 155 185 19.2 0.070 120 Celerity Solutions 2 3 1 -43.6 0.001 962 Centennial Software 11 14 19 35.7 0.007 506 Centive Systems 17 20 23 15.0 0.009 459 Centric Software 10 11 8 -21.1 0.003 708 Ceridian 71 76 82 7.9 0.031 221 Cerner 592 673 700 3.9 0.266 46 Certicom Corp. 10 13 17 35.4 0.006 537 Cezanne Software Inc. 5 7 8 8.3 0.003 731 CGI Information Systems 106 106 115 9.1 0.044 172 Channel Advisor 9 12 13 10.5 0.005 597 Chase Cooper 8 15 16 7.3 0.006 551 Check Free Corp. 100 128 145 13.1 0.055 141 Check Point Software Technologies 493 522 591 13.2 0.225 53 Chordiant Software Inc. 64 75 90 20.6 0.034 210 Cimatron 21 21 29 33.7 0.011 414 Cincom Systems Inc. 112 139 137 -1.1 0.052 147 Cisco 1,130 1,456 1,762 21.0 0.671 17 Citrix 809 1,057 1,392 31.7 0.530 24 Clearswift Corp. 44 50 57 14.3 0.022 273 Cleo 8 9 10 10.5 0.004 665 Click Commerce Inc. 94 103 113 9.6 0.043 173 Clickability 1 2 4 94.7 0.001 889 ClickSoftware 18 24 29 23.4 0.011 407 CMstat 5 5 3 -53.5 0.001 936 CNC Software Inc. 7 8 8 3.9 0.003 717 COA Solutions 58 69 82 18.9 0.031 222 Coastal Technologies 3 3 4 9.0 0.001 894 CODA 60 65 76 17.5 0.029 235 CodeGear 77 71 44 -37.9 0.017 318 Cognology 1 2 2 13.9 0.001 948 Cognos 759 832 931 11.9 0.354 35 Coheris 22 28 34 20.1 0.013 377 CollabNet 22 19 21 9.2 0.008 477 CombineNet 2 4 6 50.0 0.002 795 CommercialWare Inc. 1 1 1 8.3 0.000 967 CommuniGate Systems 34 51 56 9.8 0.021 276 CommVault Systems Inc. 73 100 129 29.3 0.049 157 ComOps 1 1 1 30.0 0.000 965 Compiere 3 5 5 9.5 0.002 816 ComponentOne 10 10 11 6.8 0.004 637 Composite Software 8 12 13 9.2 0.005 603 Computational Engineering Intl. Inc. 4 4 4 0.0 0.002 876 Computer Corp. of America (CCA) 27 28 24 -13.0 0.009 447 Compuware 733 740 738 -0.3 0.281 42 Concur Technologies 87 124 174 39.4 0.066 128 Consona 105 112 121 7.7 0.046 165

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Constellation Software Inc. 114 144 170 18.2 0.065 129 Convera 23 17 19 11.5 0.007 500 Convergys 171 187 176 -5.9 0.067 127 Coral8 – 1 3 500.0 0.001 912 Cordys – 5 6 20.4 0.002 792 Corel Corp. 279 294 251 -14.8 0.095 101 Coremetrics 16 29 16 -46.5 0.006 562 Cornerstone OnDemand 3 4 5 42.2 0.002 831 Corticon 6 9 11 22.2 0.004 636 Courion Corp. 16 17 19 9.6 0.007 510 Coverity 7 8 9 10.9 0.003 687 Criston Software 6 7 8 8.6 0.003 734 Critical Path 44 31 34 8.3 0.013 382 Crossgate 9 18 22 27.3 0.009 466 Crown Computing 6 7 7 8.9 0.003 748 CSB-System AG 17 17 19 12.1 0.007 501 Cybershift 22 25 16 -36.0 0.006 554 CyberSource 3 2 2 4.6 0.001 938 Cybozu Inc. 29 32 35 10.7 0.013 369 Danware Data A/S 15 16 19 15.0 0.007 509 Daptiv 6 14 15 10.5 0.006 567 Dassault Systemes 1,054 1,127 1,486 31.9 0.566 20 Data I/O 5 5 5 -6.8 0.002 838 DataCore Software 24 27 30 13.6 0.012 402 Datasul 56 72 95 31.9 0.036 200 DataSynapse Inc. 12 20 35 72.8 0.013 370 Datawatch Corp. 18 19 21 15.7 0.008 473 DATEV eG 289 294 323 10.1 0.123 79 Day Software 10 11 16 36.4 0.006 563 db4objects 2 4 8 100.0 0.003 723 Deltek Systems 109 159 190 19.5 0.072 117 DemandTec 15 30 40 33.3 0.015 348 Descartes Systems 46 49 50 1.9 0.019 294 Digital River Inc. 71 90 103 15.2 0.039 184 Diligent Technologies – 22 22 2.8 0.009 465 Diskeeper Corp. 32 28 24 -15.6 0.009 448 DO2 Technologies 7 7 7 4.9 0.003 745 Document Sciences Corp. 20 22 27 22.3 0.010 421 DoubleClick Inc. 46 46 51 10.0 0.019 293 Double-Take Software 42 58 71 24.1 0.027 243 DSC 21 22 25 15.1 0.010 433 Dun & Bradstreet (D&B Sls & Mktg. Sols) 31 43 47 8.5 0.018 307 Duzon Digitalware 16 17 20 14.0 0.007 493 Dynamacs 6 7 8 9.4 0.003 735 Easylink Services 79 74 74 0.0 0.028 240 Eclipsys 249 278 300 8.0 0.114 83 Econintel Treasury Systems Inc. 2 3 3 6.4 0.001 928

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Ecora Software 11 9 10 11.8 0.004 655 Ecteon 8 9 10 10.5 0.004 666 EDB Gruppen A/S 21 22 23 1.8 0.009 462 Edifecs 6 7 8 10.5 0.003 733 eGain 16 14 14 -2.2 0.005 593 eIQ Networks Inc. 6 12 19 58.3 0.007 507 Ektron 8 13 19 44.5 0.007 503 Elcom International Inc. 3 3 3 5.0 0.001 929 Electronic Arts 403 544 533 -2.1 0.203 59 Element K 13 13 14 3.7 0.005 591 Emagia 6 6 7 6.8 0.003 762 Embarcadero Technologies 43 47 43 -8.7 0.016 325 EMC 3,491 3,637 3,938 8.3 1.499 7 Emergis 33 38 44 16.7 0.017 323 Empirix 67 73 69 -5.5 0.026 251 Empress Software 38 41 45 11.1 0.017 313 Emptoris 22 30 33 10.0 0.013 386 Endeca 27 54 83 54.8 0.032 219 ENEA 33 37 46 25.3 0.018 310 Engineous Software Inc. 5 5 8 50.8 0.003 741 Enigma 13 15 16 10.1 0.006 550 Enterasys Networks Inc. 56 65 76 17.3 0.029 233 Enterprise Incentive Software Inc. 6 7 8 7.1 0.003 743 Enterworks 13 15 10 -35.5 0.004 675 Entigo 7 7 8 9.5 0.003 726 Entomo 5 6 7 10.5 0.003 770 Entrust Inc. 84 81 77 -6.0 0.029 232 Epicor Software Corp. 212 250 270 8.1 0.103 91 ePlus 12 10 11 7.2 0.004 647 Eqos 3 3 4 10.5 0.001 891 ERI Bancaire SA 67 56 59 5.1 0.022 270 ESA Software Spa 28 29 32 11.8 0.012 389 Escalate Retail 48 50 41 -19.2 0.016 344 ESET 20 44 55 26.0 0.021 280 ESI 6 7 8 12.1 0.003 739 Esker Software 25 26 30 15.2 0.012 400 e-Spirit AG 3 6 5 -9.6 0.002 824 ESRI 465 516 570 10.5 0.217 55 ESS 9 10 8 -14.9 0.003 711 etrials 2 3 3 4.5 0.001 908 Eurosoft (UK) 4 4 4 7.2 0.002 859 EVault 27 34 35 3.4 0.013 374 EVER Group 9 10 13 26.4 0.005 607 Everest Software Inc. 8 8 8 6.9 0.003 716 Evolutionary Technologies International 13 14 16 10.2 0.006 558 EXA Corp. 3 3 3 0.0 0.001 903 Exact Holding NV 239 247 278 12.8 0.106 88

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Excelergy Corp. 7 7 7 4.5 0.003 757 Exigen 7 9 8 -10.7 0.003 724 Expandable Software Inc. 5 5 6 6.8 0.002 805 Experian 26 30 23 -24.4 0.009 463 Explorer Software Inc. 2 4 4 4.6 0.002 868 Exstream 50 64 80 25.0 0.030 227 Extol 10 11 12 5.7 0.004 632 Eze Castle Software 3 5 7 50.0 0.003 764 FaceTime Communications Inc. 14 19 22 13.4 0.008 467 Fair Isaac 650 680 664 -2.3 0.253 49 FairCom Corp. 2 2 2 5.2 0.001 942 Falconstor Software Inc. 37 51 72 41.5 0.027 242 Fast Search & Transfer Inc. 92 111 107 -3.3 0.041 178 FatWire Software 22 23 25 6.8 0.010 437 Fenestrae BV 7 7 8 4.1 0.003 740 Fidelity National 164 228 243 6.6 0.092 102 Fidessa 70 96 130 35.4 0.049 156 Fieldglass 5 8 9 9.4 0.003 698 Financial Objects PLC 15 23 25 9.8 0.009 442 Financial Sciences Corp. 11 11 12 6.5 0.005 622 Financial Software Systems 4 4 4 4.5 0.002 866 Finestra 1 1 1 8.9 0.001 964 Fiorano Software Inc. 6 7 9 19.7 0.003 703 FirePond Inc. 7 7 2 -70.8 0.001 953 Firestar 4 5 5 9.4 0.002 826 First Data (Peace Software) 11 11 13 11.7 0.005 613 Firstwave Technologies Inc. 3 2 4 48.3 0.001 896 Fiserv 744 818 893 9.1 0.340 38 FlexiInternational Software 7 7 8 6.8 0.003 738 Formula Telecom Solutions 3 3 4 7.4 0.001 887 Foundation for Windows 7 8 9 6.4 0.003 702 Four Js Development Tools Inc. 13 15 16 5.2 0.006 552 Four Soft Ltd. 2 2 2 8.8 0.001 944 FrontRange Solutions Inc. 93 101 85 -15.4 0.032 216 FRS 8 10 11 7.7 0.004 645 F-Secure Corp. 77 102 132 29.2 0.050 151 Fujitsu 2,285 2,250 2,270 0.9 0.864 11 Gateway Systems Inc. 3 4 4 5.0 0.002 867 Gavel and Gown Software 8 9 9 5.3 0.004 679 Gemalto 41 42 62 47.1 0.024 262 Gemmar Systems International Inc. 1 2 2 3.9 0.001 961 Gemstone – 1 1 40.0 0.000 973 Genesys Conferencing 20 30 34 12.6 0.013 378 Genesys Software Systems Inc. 4 5 5 8.7 0.002 821 Genesys Telecommunications Laboratories 280 311 367 18.0 0.140 74 Gensym 9 10 9 -3.5 0.004 685 GFI Informatique 90 95 110 15.7 0.042 176

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank GHX 26 42 45 7.1 0.017 315 GigaSpaces 4 7 14 100.0 0.005 589 Global 360 74 102 119 17.2 0.045 168 Global IDs Inc. – – 1 NA 0.000 971 Global Software Inc. 33 36 44 22.2 0.017 321 GlobeNet Technologies 3 4 4 9.4 0.001 885 GMT Corp. 11 14 15 8.5 0.006 572 GoldenGate Inc. 33 45 52 17.3 0.020 290 Google Inc. 110 187 181 -2.9 0.069 123 Gores Technology Group 17 19 15 -17.6 0.006 570 Graphisoft 30 37 40 7.8 0.015 354 Green Hills Software 44 45 45 1.3 0.017 314 Gruppo Formula Spa 16 17 20 13.4 0.007 496 GSE Systems 3 4 5 15.6 0.002 844 GT Software – 4 4 8.4 0.002 862 Guidance 31 49 65 33.6 0.025 258 GXS 400 390 390 0.0 0.148 70 Haansoft Inc. 19 22 24 11.2 0.009 449 Haley 10 12 14 12.0 0.005 590 Halo Technology 9 11 12 8.2 0.005 629 Halogen Software 8 15 20 33.3 0.008 485 Handysoft Corp. 23 26 32 22.4 0.012 394 HansaWorld Ltd. 9 15 16 12.3 0.006 546 HardDollar 4 4 4 9.6 0.002 855 Hauri Inc. 11 13 8 -39.9 0.003 729 HDS 304 273 294 7.8 0.112 85 Healthvision 70 84 96 13.5 0.036 196 Healy Hudson 5 6 6 6.9 0.002 799 Heroix Corp. 5 7 7 4.9 0.003 750 High Line Corp. 6 7 7 6.0 0.003 746 Hit Software 3 2 3 12.0 0.001 922 Hitachi 1,357 1,349 1,429 6.0 0.544 23 HK Systems 20 21 24 11.4 0.009 451 HodesIQ 2 4 4 9.4 0.002 860 Hogia Group 26 29 33 13.5 0.012 387 HP 4,392 4,469 4,612 3.2 1.755 6 HR Access 29 33 35 5.2 0.013 375 HR Technologies 3 4 4 9.4 0.001 883 Hubwoo 32 35 39 10.9 0.015 357 Hyland Software 60 68 92 34.8 0.035 206 Hyphen 14 15 15 6.0 0.006 568 Hyphen Solutions 38 44 47 7.6 0.018 305 i2 Technologies 161 145 135 -6.5 0.051 148 IBM 18,720 20,035 21,824 8.9 8.306 2 IBM Application Solutions 57 60 65 8.0 0.025 257 IBS AB 70 69 73 4.8 0.028 241 ICG Commerce 12 14 15 10.3 0.006 577

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank iCIMS 6 13 17 28.8 0.006 536 ICS 2 2 3 8.5 0.001 937 Idiom Inc. 17 26 33 27.2 0.013 383 IDS Scheer AG 56 78 108 38.6 0.041 177 IFS Industrial and Financial Systems AB 123 140 168 20.1 0.064 130 Igloo Security – – 9 NA 0.004 682 IHS Energy Group 6 6 6 4.5 0.002 784 ILOG Inc. 101 112 128 14.3 0.049 158 iMany 6 8 10 33.3 0.004 663 Immersive Design Inc. 1 1 1 0.0 0.000 970 I-Net Software 2 3 3 8.9 0.001 920 Infogrames 123 99 71 -28.2 0.027 244 Infor 1,551 1,656 1,781 7.5 0.678 16 Informatica 259 286 326 14.1 0.124 78 Information Builders Inc. 250 250 255 2.0 0.097 99 Inforsud 8 8 10 15.7 0.004 673 InfoTel Corp. 4 4 4 6.2 0.002 874 InfoVista 26 30 44 47.2 0.017 317 Infra Corp. 11 12 13 11.0 0.005 594 Infragistics Corp. 29 25 31 27.3 0.012 396 Ingres Corp. 9 9 28 206.6 0.011 419 Initech – – 11 NA 0.004 650 Initiate Systems Inc. 17 26 40 52.7 0.015 349 InMarketing Group 3 4 4 9.4 0.001 884 Innotas 2 2 6 161.4 0.002 798 Innovation Asset Group 1 2 2 10.5 0.001 949 Innovation Group 50 62 70 12.2 0.027 248 Innovations Software Technology 4 6 7 13.8 0.003 771 Inovis 189 177 179 1.1 0.068 125 InRule Technology 1 2 2 11.4 0.001 941 Insightful Corp. 17 18 16 -12.4 0.006 556 INSTEC 2 2 2 4.6 0.001 955 Intalio 3 3 4 18.7 0.001 888 Integrated Decisions & Systems Inc.(IDeaS) 3 4 5 25.0 0.002 829 Integrated Research 25 27 30 11.8 0.012 401 Integrated Support Systems 9 9 10 8.7 0.004 670 Integrify 1 2 4 80.0 0.001 892 Intel Corp. 18 16 16 1.5 0.006 543 IntelliCorp Inc. 3 4 5 27.8 0.002 840 Intellitactics 14 14 15 10.9 0.006 571 Interactive Intelligence Inc. 55 72 99 37.5 0.038 190 InterCall 19 21 24 14.3 0.009 446 Interfacing Technologies 4 4 5 12.1 0.002 853 Intergraph 449 496 581 17.0 0.221 54 Intershop Communications 13 17 22 26.7 0.008 472 InterSystems Corp. 170 200 229 14.4 0.087 103 Intervoice 128 160 150 -6.3 0.057 136

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Interwise (AT&T) 24 27 33 22.2 0.013 385 Interwoven 151 167 190 14.0 0.072 116 Intime Solutions 12 14 15 9.6 0.006 569 IntraLearn Software Corp. 5 6 6 3.8 0.002 801 IntraLinks 55 87 95 9.8 0.036 198 Intuit 1,352 1,425 1,581 10.9 0.602 18 Invensys 255 267 268 0.6 0.102 92 Investment Technology Group 11 12 13 7.8 0.005 615 Iona 64 72 71 -1.5 0.027 245 iPass 5 5 6 8.7 0.002 803 IPS of Boston 12 13 4 -68.7 0.002 875 Ipswitch 29 32 36 11.9 0.014 368 IQ Navigator 10 15 20 33.3 0.008 484 IRIS Group Ltd. 30 32 37 13.9 0.014 366 IRIS Integrated Risk Management 22 24 26 8.2 0.010 431 iRise 6 12 13 9.6 0.005 612 Iron Mountain Inc. 73 104 139 33.7 0.053 144 IronCAD 4 4 3 -26.0 0.001 913 Island Pacific Inc. 15 15 15 4.6 0.006 573 iSoft PLC 160 140 142 1.4 0.054 143 ISU Ubcare 12 13 14 12.4 0.005 585 Itron Inc. 50 59 110 87.7 0.042 174 Jabber 7 10 8 -13.7 0.003 713 Jacada 16 16 16 -1.7 0.006 561 Jack Henry & Associates 180 243 263 8.4 0.100 95 JDA Software Group Inc. 173 216 252 16.4 0.096 100 Jeeves Information Systems 12 14 17 17.9 0.006 542 Jenzabar 18 22 40 81.8 0.015 352 Jeppesen 22 23 25 8.3 0.009 440 Jesta I.S. 42 46 49 7.2 0.019 300 JetBrains 10 9 9 -2.6 0.004 684 Jive Software 3 4 11 189.5 0.004 639 JP Morgan 95 109 117 7.1 0.044 170 Juniper Networks 20 20 23 14.7 0.009 461 Justsystem Corp. 62 65 69 5.7 0.026 252 K2 15 31 32 3.2 0.012 391 Kaba Benzing 30 35 38 9.2 0.014 360 Kabira 20 23 25 10.1 0.010 438 Kalido 13 15 16 11.4 0.006 548 Kamakura Corp. 9 12 13 8.0 0.005 608 Kana 36 45 49 8.2 0.019 299 Kapow Technologies 5 6 9 48.1 0.004 686 Kaspersky Lab 40 67 124 84.3 0.047 162 Kenexa 72 103 149 44.1 0.057 139 Ketera 1 3 3 10.5 0.001 902 Kewill Systems PLC 32 33 42 27.8 0.016 334 Keynote Systems Inc. 24 43 53 24.2 0.020 286

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Keyware 6 4 3 -30.1 0.001 921 Kinaxis 16 22 29 31.7 0.011 412 Kingdee 42 46 53 14.1 0.020 287 Kofax 138 155 167 7.8 0.063 131 Kognitio 10 11 15 34.5 0.006 583 Kronos Inc. 293 318 375 17.9 0.143 73 KSS 7 8 10 25.0 0.004 660 Kubotek 2 2 3 34.3 0.001 926 KXEN 7 8 11 28.9 0.004 649 Kyriba 4 7 7 7.1 0.003 744 Lagan 11 14 20 41.8 0.008 488 Language Engineering Corp. 4 4 4 8.0 0.002 869 Lanner Group Inc. 5 6 5 -17.5 0.002 843 Laplink Software Inc. 8 9 8 -2.6 0.003 704 Lawson Software 359 363 444 22.4 0.169 67 Layer 7 Technologies – 3 4 21.9 0.001 890 LearnFrame 24 24 28 14.4 0.011 418 Lefebvre Software 13 15 17 19.5 0.007 529 Lefthand Networks – 10 12 14.9 0.005 625 Leica Geosystems 48 55 60 9.2 0.023 265 Levi, Ray & Shoup Inc. 81 86 92 7.0 0.035 203 LexisNexis Interface Software Inc. 18 22 24 8.4 0.009 445 Liaison 6 7 6 -10.4 0.002 793 LMS International 15 17 18 6.1 0.007 516 LogicLibrary Inc. 2 4 5 31.1 0.002 837 LogicTools Inc. 5 5 6 6.1 0.002 812 LogiGear 1 1 1 10.9 0.000 968 Logility Inc. 22 35 44 25.7 0.017 324 LogMeIn Inc. 17 24 24 -2.2 0.009 454 Lombard Risk Management 5 7 8 7.3 0.003 742 Lombardi Software 12 38 54 41.1 0.021 285 Lumension Security 39 63 86 36.2 0.033 214 M.B. Foster Associates 6 6 7 11.2 0.003 761 Maconomy A/S 14 18 23 27.8 0.009 464 Macro 4 53 52 52 0.6 0.020 291 Macrovision 63 67 77 14.7 0.029 231 Magic Software Enterprises Inc. 39 37 42 11.5 0.016 336 Main Sequence 2 3 3 9.4 0.001 904 Mainsoft 10 11 11 5.1 0.004 634 MaintenanceNet 3 6 7 10.5 0.003 768 Mamut ASA 26 32 43 33.6 0.016 332 Managed Objects 24 26 27 6.2 0.010 422 Management Controls Inc. 4 4 5 4.9 0.002 852 Management Dynamics 13 15 17 13.6 0.006 535 ManageSoft 6 6 7 9.0 0.003 772 Mandriva 5 4 3 -31.6 0.001 918 Manhattan Associates 162 189 209 10.3 0.079 111

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Maritz Incentives 15 16 17 7.8 0.007 531 Matisse 2 2 2 1.0 0.001 956 Matrikon 15 17 20 17.9 0.008 491 Matrix42 7 7 8 8.1 0.003 732 Maxager 3 4 5 25.0 0.002 830 Maximizer Software Inc. 12 14 16 8.6 0.006 565 Maximus 120 127 133 4.7 0.051 150 Maxwell Systems 12 15 14 -6.7 0.005 587 MCA Solutions 6 9 9 5.3 0.003 694 McAfee 952 1,065 1,183 11.1 0.450 28 MCBA 41 44 40 -9.6 0.015 353 McCabe & Associates 7 8 9 10.2 0.003 700 McKessonHBOC 1,000 1,085 1,149 5.9 0.437 31 McLaren Software 8 10 9 -4.7 0.003 689 MCS 9 9 10 6.8 0.004 667 Mediasurface 12 18 19 2.8 0.007 513 Medical Information Technology 160 185 195 5.4 0.074 115 Medidata Solutions 2 4 4 4.1 0.002 870 Mega International 14 15 17 11.5 0.007 533 Mentor Graphics 600 673 747 11.0 0.284 41 Mercado Software Inc. 14 15 13 -13.3 0.005 605 Merced Systems 3 7 8 9.4 0.003 736 Meridian Systems 17 18 22 18.2 0.008 469 MessageLabs 80 102 116 13.2 0.044 171 Meta4 23 25 30 20.2 0.011 405 MetaCase 6 7 8 10.6 0.003 737 Metastorm 34 43 49 14.2 0.019 301 Metavante Corp. 152 160 265 65.5 0.101 94 Metron Technology Ltd. AG 5 5 5 6.4 0.002 820 Micro Focus 152 163 214 30.7 0.081 108 Micros Systems 259 348 388 11.5 0.148 71 Microsoft 35,541 37,346 46,091 23.4 17.543 1 MicroStrategy 216 249 266 6.6 0.101 93 Midland HR & Payroll Solutions 15 15 18 22.0 0.007 515 Mincom Ltd. 48 64 96 49.3 0.037 194 Mindjet Corp. 30 34 38 11.8 0.014 361 Mindreef Inc. 1 4 5 36.2 0.002 839 Mirapoint 31 27 27 -1.1 0.010 423 Missler Software 31 26 32 23.1 0.012 390 Misys 696 706 762 7.9 0.290 40 MIVA 19 17 15 -11.4 0.006 575 MKS 43 43 45 6.6 0.017 312 Moai Technologies Inc. 13 14 16 9.7 0.006 564 Model N 9 10 12 20.0 0.005 627 Modulant Inc. 8 10 10 9.4 0.004 654 Moldflow Corp. 40 38 32 -15.7 0.012 392 Motive Communications 63 67 64 -5.1 0.024 260

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank MQSoftware 16 17 18 6.7 0.007 523 MSC Software 231 203 95 -53.2 0.036 201 M-Tech Information Technology Inc. 17 20 20 0.0 0.008 481 Multima Corp. 5 6 6 8.2 0.002 791 Murex 8 10 11 8.2 0.004 643 mValent 2 5 5 8.5 0.002 818 MYOB Ltd. 109 119 130 9.2 0.049 155 MySQL 16 34 38 10.9 0.014 363 NASDAQ OMX 50 55 58 5.3 0.022 271 nCircle 9 12 17 42.5 0.007 534 NEC 850 886 967 9.1 0.368 34 Nedstat 12 13 18 32.7 0.007 522 Nemetschek 139 152 186 22.4 0.071 119 Netezza Corp. 22 31 49 58.3 0.019 296 netForensics 30 30 34 13.3 0.013 379 NetManage Inc. 33 36 36 1.2 0.014 367 NetRatings Inc. 11 14 16 10.8 0.006 560 Netron Inc. 16 17 17 5.6 0.007 528 NetSuite 33 60 98 61.5 0.037 191 NetSupport Inc. 32 35 33 -5.9 0.013 384 NETtime Solutions 4 5 5 9.4 0.002 823 Network Appliance 501 747 992 32.9 0.378 32 Network Automation 2 3 3 27.0 0.001 901 NeuSoft 21 23 27 15.2 0.010 424 Newtron 3 4 4 6.9 0.002 863 Nextrials 1 2 2 4.5 0.001 960 NICE SYSTEMS 216 269 291 8.2 0.111 86 Nobscot 2 2 3 9.4 0.001 933 Nokia Corp. 53 63 66 3.8 0.025 255 Nomura Research Institute Ltd. 41 49 60 21.6 0.023 267 Norman ASA 31 39 46 17.0 0.018 311 Nortel Networks 631 674 667 -1.0 0.254 48 Northgate Information Solutions PLC 173 186 215 15.8 0.082 107 NovaStor 4 7 8 12.5 0.003 718 Novell 704 647 692 7.0 0.263 47 NOW Solutions LLC 6 5 5 9.5 0.002 817 NOWCOM (Winstechnet) 4 5 6 13.7 0.002 809 Nstein 9 11 13 23.5 0.005 596 Nuance Communications Inc. 401 473 551 16.5 0.210 56 NuBridges 12 15 18 18.8 0.007 514 Numara Software 50 60 65 8.4 0.025 256 Nuview Systems Inc. 15 18 20 9.4 0.007 495 OBIC Business Consultants Co. Ltd. 63 66 68 3.7 0.026 253 OBIC Co. Ltd. 46 48 49 3.7 0.019 295 Object Connections 2 3 3 12.4 0.001 914 ObjectFX 11 11 12 8.8 0.005 618 Objectivity Inc. 7 7 7 2.1 0.003 766

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Omniture 41 75 132 76.6 0.050 152 Omniware 5 6 6 6.9 0.002 800 Omtool Ltd. 13 13 16 21.5 0.006 545 One Network 10 12 8 -30.4 0.003 720 Online Resources Corp. 68 82 121 48.5 0.046 164 OnStream Media 5 5 12 122.2 0.005 628 Onventis 10 14 15 6.9 0.006 581 Opalis Software 6 9 10 8.9 0.004 668 Open Solutions Inc. 102 112 117 4.6 0.045 169 Open Systems Holding Corp. 15 16 17 7.1 0.007 532 Open Systems Management Ltd. 8 9 10 8.5 0.004 674 Open Text Corp. 547 535 540 1.0 0.205 58 OpenAir 5 5 8 48.1 0.003 722 OpenConnect Systems 9 10 11 7.4 0.004 642 Openjaw Technologies 2 2 2 11.9 0.001 951 OpenSpan – 1 4 500.0 0.001 893 Openwave Systems Inc. 245 243 160 -34.5 0.061 134 Optiant Inc. 5 5 6 4.8 0.002 811 Optio Software 19 19 18 -6.8 0.007 524 Oracle 12,444 14,682 17,128 16.7 6.519 3 ORSYP SA 22 23 25 6.3 0.009 443 OSISoft 20 21 22 6.0 0.008 468 Oullim Information Technology 5 5 5 0.3 0.002 851 Outcome – – 5 NA 0.002 836 P2 Energy Solutions 8 8 9 4.5 0.003 697 Panda Security 130 131 149 13.6 0.057 138 Panorama Software 23 38 57 52.0 0.022 272 Parallels 51 74 96 31.1 0.037 193 PartsRiver-Saqqara 12 13 14 9.4 0.006 584 PassGo 22 25 23 -5.4 0.009 455 Passlogix 20 22 25 15.3 0.009 441 Paychex 45 52 57 9.6 0.022 274 PCI Enterprises 9 10 11 10.2 0.004 646 PDG Software Inc. 3 4 3 -25.2 0.001 927 PDS 4 4 5 12.5 0.002 854 Pearson 13 14 16 9.3 0.006 559 Pegasystems 61 61 82 35.6 0.031 220 PenSoft 9 11 12 6.0 0.004 631 Penta Security Systems 6 6 4 -28.4 0.002 857 Penta Technologies 4 5 5 4.5 0.002 846 Peopleclick 28 32 35 9.5 0.013 371 PeopleNet 4 4 4 9.4 0.002 856 Perceptive Software 21 29 40 40.8 0.015 345 Percussion Software 20 20 18 -12.2 0.007 519 Perfect Commerce 25 28 28 1.7 0.011 416 Perforce Software 33 41 46 11.9 0.018 309 Personal & Informatik AG 43 47 56 19.3 0.021 278

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Pervasive Software Inc. 47 40 39 -3.0 0.015 358 PGP Corp. 35 50 61 22.0 0.023 263 Phase Forward 35 37 54 47.7 0.021 284 Pilat Technologies Intl. 4 4 4 4.8 0.002 858 Pitney Bowes Distribution Solutions 324 342 366 7.0 0.139 75 Planisware 9 10 15 45.9 0.006 574 Planview 26 37 49 33.0 0.019 297 Plateau Systems Ltd. 11 13 15 15.4 0.006 578 Platform Computing 52 56 63 10.9 0.024 261 Plus Technologies 11 12 12 6.0 0.005 620 Poet Software Corp. 2 2 3 8.8 0.001 934 Pointwise Inc. 8 9 9 6.6 0.004 678 Polarlake 1 1 2 19.1 0.001 959 Portrait Software 8 8 17 108.4 0.006 540 PowerPlan Corp. 4 4 5 10.5 0.002 845 Practique 5 6 6 8.9 0.002 786 Premier Data Services 5 5 7 22.2 0.003 769 Prescient Systems 7 8 8 4.0 0.003 730 Previsor 8 10 11 9.4 0.004 641 Primavera Systems Inc. 113 122 135 10.9 0.051 149 Princeton Financial Sys. Inc. 40 42 47 12.3 0.018 306 PrismTech 12 16 21 28.1 0.008 479 proALPHA Software AG 29 25 33 32.0 0.012 388 Procurestaff 5 6 6 9.3 0.002 782 Prodacapo 2 3 3 8.9 0.001 906 ProfitLine 3 4 5 10.5 0.002 847 Progress Software Corp. 386 411 442 7.6 0.168 68 Prolifics 23 24 25 5.1 0.010 434 Promantek 2 3 3 9.4 0.001 905 ProQuest 5 6 6 10.5 0.002 790 PROS Pricing Solutions 19 32 43 34.4 0.016 327 ProVantage Software Inc. 3 3 3 4.6 0.001 899 Psipenta Software Systems GmbH 33 35 41 18.6 0.016 338 PSSOFT 7 8 8 7.9 0.003 715 PTC 644 729 704 -3.4 0.268 44 PurchasingNet Inc. 16 20 23 15.0 0.009 460 QAD Inc. 174 175 190 8.4 0.072 118 QlikTech 22 39 70 80.0 0.027 247 Qlusters 6 8 8 5.6 0.003 712 Quadramed 95 95 102 6.6 0.039 186 Quadrem 20 24 40 66.7 0.015 351 Quality Corp. 23 25 27 6.8 0.010 425 Qualys 19 28 39 40.2 0.015 355 Quantum 49 57 67 18.1 0.026 254 Quest Software 472 562 631 12.4 0.240 50 Quick Address Software 99 110 121 10.4 0.046 163 QuickArrow 6 8 8 4.6 0.003 706

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank RadiSys Corp. 6 6 6 -3.2 0.002 787 RadView Software 6 4 5 7.0 0.002 850 RainMaker Software 1 3 3 4.5 0.001 931 Ramco Systems – 5 5 7.5 0.002 841 Rapt 7 8 10 25.0 0.004 661 Ravenflow 0 1 1 9.4 0.000 975 Raxco 4 4 7 94.2 0.003 760 ReadSoft 37 43 53 23.8 0.020 288 Realization Technologies 15 15 16 8.8 0.006 544 RealNetworks Inc. 69 77 81 5.1 0.031 224 Real-Time Innovations 3 5 6 39.1 0.002 780 Red Flag Software Co. Ltd. 3 4 4 9.7 0.002 864 Red Hat Inc. 242 333 424 27.2 0.161 69 RedEye 2 3 3 9.2 0.001 916 RedPrairie Corp. 24 26 29 10.0 0.011 413 Redwood 13 14 35 154.7 0.013 373 Refresh Software 2 4 4 14.0 0.002 872 Replicon 8 10 11 9.6 0.004 640 Repliweb 5 8 10 13.1 0.004 677 Research In Motion 176 176 184 4.9 0.070 121 Resonate Inc. 6 7 7 6.4 0.003 756 Responsys 8 8 15 76.7 0.006 582 Reval 4 6 11 83.3 0.004 638 Revionics 7 8 9 12.5 0.003 691 Reynolds & Reynolds 500 500 542 8.3 0.206 57 RightNow Technologies Inc. 68 86 87 0.9 0.033 213 Roadmap Technologies Inc. 2 2 3 10.1 0.001 925 Rocket Software 47 53 60 14.2 0.023 264 S1 71 73 78 6.7 0.030 230 SABA 70 64 75 17.2 0.029 238 SafeNet Inc. 185 167 197 18.3 0.075 113 Sage Group 1,720 1,869 2,172 16.2 0.827 12 Salesforce.com 281 452 616 36.4 0.234 51 Sand Technology 4 5 6 30.3 0.002 779 SAP 7,550 8,338 10,188 22.2 3.878 4 Sapiens USA Inc. 20 17 17 -1.9 0.006 538 SAS 1,531 1,731 1,957 13.0 0.745 14 Savvion 13 21 26 24.5 0.010 428 ScheduleSoft 6 4 4 9.4 0.002 871 SciQuest 4 6 7 10.5 0.003 767 SDL International 51 72 82 13.5 0.031 223 SDL Tridion 17 21 32 51.4 0.012 395 Secure Computing Corp. 28 58 60 3.4 0.023 266 Sedona Corp. 1 1 1 -42.8 0.000 972 Seeburger 53 76 95 25.0 0.036 199 SEEC Inc. 2 2 2 3.6 0.001 947 Selectica Inc. 18 12 8 -28.3 0.003 709

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Selligent 8 11 14 23.5 0.005 592 Sendmail 28 31 41 31.0 0.016 342 Sentillion 16 18 19 8.9 0.007 502 SERENA Software 240 236 257 9.3 0.098 98 ServiceBench 5 6 6 7.5 0.002 776 Servigistics 14 15 16 7.3 0.006 549 SEVEN Networks Inc. 16 21 21 4.0 0.008 474 Shavlik 29 33 38 15.2 0.014 362 SHL Group 33 40 44 10.0 0.017 320 Siemens 3,333 3,496 3,808 8.9 1.449 9 Sightline Systems 7 7 8 6.6 0.003 727 Silicon Graphics 57 41 43 4.1 0.016 330 SilkRoad 6 12 13 9.4 0.005 600 Silver Net Computer Systems Ltd. 4 5 5 7.6 0.002 842 Silvon Software 10 11 12 8.8 0.004 630 SimCorp 90 112 144 28.6 0.055 142 Siperian Inc. 6 10 20 100.0 0.008 490 Sitescape 8 10 15 50.0 0.006 580 SkillSoft 109 111 120 8.1 0.046 167 Skybox Security 8 9 10 5.6 0.004 676 Skywire 85 87 95 9.1 0.036 197 SmartOps Corp. 8 8 9 5.9 0.003 696 SmartSignal Corp. 16 17 19 7.1 0.007 512 SmartSoftware Inc. 2 3 3 7.3 0.001 909 Smartstream 28 55 59 8.1 0.022 269 Smyth Systems 8 7 7 3.9 0.003 754 SOA Software Inc. 21 28 29 4.3 0.011 409 Softbrain Co. Ltd. 19 20 21 4.0 0.008 478 Softbrands 54 59 79 34.5 0.030 228 SofTech Inc. 4 4 4 -7.0 0.002 877 SoftM Software und Beratung AG 23 24 28 19.0 0.011 415 Soft-Power Corp. 7 8 9 14.4 0.003 692 SoftRun – – 10 NA 0.004 671 Softscape 17 15 17 11.3 0.006 539 Software AG 549 599 701 17.0 0.267 45 Software Eng. of America 56 58 59 2.0 0.022 268 Software Innovation ASA 20 21 29 37.1 0.011 411 Solid Information Technology 11 12 13 10.8 0.005 602 Solipsis 5 5 5 5.4 0.002 825 SolutionsIQ 3 3 4 9.3 0.001 886 SonicRecruit 2 3 5 81.8 0.002 835 Sopheon 6 7 8 25.0 0.003 714 Sophis 10 20 21 6.7 0.008 475 Sophos 121 140 181 29.6 0.069 124 Spectrum 14 15 10 -34.2 0.004 658 SpringSource 2 2 3 5.2 0.001 930 SPS Commerce 14 22 27 24.2 0.010 426

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank SPSS 210 234 262 12.0 0.100 96 SS&C Technologies 106 128 148 15.5 0.056 140 SSH Communications Security 12 14 19 42.7 0.007 499 STAR AG 4 5 6 18.3 0.002 806 SteelEye Technology Inc. (SIOS) 5 7 9 28.4 0.003 699 StepStone 24 34 47 36.4 0.018 308 Sterling Commerce 399 434 501 15.4 0.191 60 StoneSoft Corp. 9 9 8 -12.9 0.003 725 StrataGen Systems Inc. 6 7 7 10.1 0.003 755 Stratature Inc. – 3 3 9.4 0.001 924 Streambase – 1 7 550.0 0.002 775 StreamServe Inc. 37 41 44 8.4 0.017 319 StrikeIron Inc. – 1 1 6.4 0.000 969 Successfactors 8 20 43 115.0 0.016 328 Sumisho Computer Systems Corp. 39 41 43 3.7 0.016 331 SumTotal 45 76 87 15.6 0.033 212 Sun Microsystems 1,661 1,787 1,799 0.7 0.685 15 SunGard 1,238 1,358 1,452 7.0 0.553 22 SuperOffice ASA 32 35 43 21.6 0.016 329 Supplychain Connect 3 4 4 10.5 0.002 879 SupplyOn 12 15 19 26.7 0.007 505 SupportSoft 62 45 48 6.2 0.018 302 Sweda 9 9 9 4.5 0.004 681 SWIFT 532 569 610 7.2 0.232 52 Swisslog 102 109 132 20.6 0.050 153 Sybase 768 858 912 6.3 0.347 36 Symantec 5,166 5,135 5,448 6.1 2.074 5 SymphonyRPM 3 3 – -100.0 – NA Syncsort 41 44 47 6.8 0.018 304 Synopsys 943 1,042 1,153 10.7 0.439 30 Synygy 32 48 42 -12.5 0.016 335 Sysload Software 5 5 7 34.0 0.003 759 Syspro 20 22 24 9.3 0.009 453 Systar SA 20 22 23 6.4 0.009 457 Systran SA 11 8 11 27.4 0.004 648 Tagetik 8 10 12 15.7 0.004 633 Take Solutions (ClearOrbit) 9 11 12 9.8 0.005 624 Taleo 63 79 105 32.4 0.040 182 Targit 8 9 9 10.1 0.004 680 Tavant Technologies 10 12 12 7.5 0.005 619 Tealeaf Technology 3 3 5 47.6 0.002 832 Teamquest Corp. 22 18 20 6.1 0.007 494 Tecsys Inc. 9 13 13 1.4 0.005 609 TEDS 13 13 14 6.6 0.005 586 TekSoft Inc. 4 4 4 3.9 0.002 873 Telelogic AB 145 171 212 23.4 0.081 110 Temenos 111 153 225 47.3 0.086 105

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Tenrox 12 16 20 25.0 0.008 483 Teradata 630 655 735 12.4 0.280 43 The SCO Group Inc. 29 23 16 -29.9 0.006 547 Think3 28 28 31 8.2 0.012 398 Thomson Reuters 134 162 182 12.2 0.069 122 TIBCO Inc. 382 429 480 11.8 0.183 61 Tibersoft 3 4 4 10.5 0.002 880 Tidal Software Inc. 27 29 31 6.4 0.012 399 TigerLogic 21 19 19 -1.1 0.007 511 Timecentre 15 16 18 10.6 0.007 517 Tmax Soft 30 35 40 16.7 0.015 346 Tomax Corp. 35 36 37 3.9 0.014 365 ToolsGroup 9 9 9 5.7 0.003 688 Top Image Systems 13 16 20 20.4 0.007 497 Toshiba Solutions Corp. 11 12 12 3.7 0.005 617 TOTVS 100 137 86 -37.4 0.033 215 Touchpaper Software 18 22 23 7.1 0.009 458 Touchstone Software 2 2 2 39.1 0.001 943 TOWER Software 17 23 34 49.1 0.013 376 Tradebeam 22 22 24 7.3 0.009 452 TRADEPAQ Corp. 7 8 8 11.2 0.003 705 Transware 5 5 6 27.7 0.002 777 Trend Micro 622 713 826 15.9 0.314 39 Trillium Software 46 49 54 10.9 0.021 283 Trintech Group PLC 17 14 17 16.1 0.006 541 Triple Point Technology 13 14 21 49.2 0.008 476 Tripwire Inc. 32 37 41 12.8 0.016 339 True Commerce 6 7 7 10.6 0.003 753 TSS 2 2 1 -34.3 0.001 963 Tumbleweed Communication Inc. 50 55 55 0.0 0.021 281 Turbolinux Inc. 8 8 8 4.4 0.003 707 TXT e-Solutions 10 10 13 21.3 0.005 611 Tyler Technologies 94 111 131 18.1 0.050 154 UC4 47 52 55 5.4 0.021 282 UFIDA 66 73 83 13.9 0.032 218 Ultimate Software 68 83 102 22.0 0.039 187 Ultimus 15 16 13 -17.9 0.005 595 Unanet Technologies 2 3 3 10.5 0.001 915 Unica Corp. 57 72 89 24.0 0.034 211 Unicorn HRO 11 12 13 8.3 0.005 606 UNIFY Corp. 9 10 15 50.0 0.006 579 Unisys 531 474 461 -2.9 0.175 62 Unit4 Agresso NV 212 238 271 14.0 0.103 90 Unitime 5 6 6 9.4 0.002 778 update software AG 22 25 30 20.4 0.011 406 UPS Logistics Technologies 30 34 38 11.2 0.014 359 Upsidesoft 8 10 11 9.2 0.004 644

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Utimaco Safeware AG 27 46 55 19.1 0.021 279 Vasco 7 9 25 175.5 0.010 435 Vcampus 4 5 5 2.0 0.002 828 VCG 4 6 7 9.4 0.002 773 Vector Networks Ltd. 3 3 3 -6.0 0.001 907 Vendavo 7 8 10 25.0 0.004 662 Ventyx 119 101 120 19.3 0.046 166 Verint Systems 209 374 458 22.4 0.174 63 VeriSign Inc. 225 253 260 2.8 0.099 97 Versant 16 18 23 33.1 0.009 456 Versata 77 84 91 8.0 0.035 208 Versys 3 3 3 5.1 0.001 919 Vertex Inc. 5 6 10 66.7 0.004 664 ViaPeople 1 2 2 9.4 0.001 950 Viewpoint Construction Software 6 6 6 4.5 0.002 785 Vignette 145 147 138 -5.7 0.053 145 ViryaNet Ltd. 4 4 4 1.0 0.002 878 Visibility 5 5 6 14.0 0.002 804 Visible Systems Corp. 4 5 5 10.2 0.002 822 Vision Solutions Inc. 65 85 93 9.6 0.035 202 VisionWare 3 8 9 11.5 0.003 693 Visiprise 3 3 4 5.4 0.001 897 Visma ASA 155 169 198 17.1 0.075 112 Visto 14 23 24 4.4 0.009 450 Visual Numerics Inc. 66 71 76 7.5 0.029 234 Visual Sciences 38 57 75 32.2 0.029 236 Vitria Technology Inc. 33 39 41 4.6 0.016 341 Vivendi 526 696 1,156 66.1 0.440 29 Vivisimo 9 10 15 50.7 0.006 566 VMware Inc. 363 684 1,283 87.5 0.488 27 Vurv Technology 10 15 20 35.1 0.008 486 Wall Street Systems 54 80 75 -6.5 0.028 239 WatchGuard 11 13 18 34.8 0.007 527 Wavelink Corp. 19 21 22 6.0 0.008 470 WebLayers Inc. 1 3 5 66.7 0.002 834 Webroot 70 96 110 14.3 0.042 175 Websense 249 294 312 6.3 0.119 80 Webspy 2 2 2 14.7 0.001 940 WebTrends 51 74 80 7.8 0.030 226 Win Estimator Inc. 11 12 10 -16.7 0.004 659 Wizart 3 4 5 24.0 0.002 849 WorkForce Software 8 10 10 9.4 0.004 653 Works Applications Co. Ltd. 67 87 90 3.7 0.034 209 Workscape 15 20 30 50.0 0.011 404 Workstream 27 29 26 -9.4 0.010 429 Xenos – 12 14 12.9 0.005 588 Xpriori 2 2 2 3.6 0.001 945

Worldwide Packaged Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank xTuple 2 4 4 6.2 0.002 865 Yahoo! (Zimbra) – 35 75 114.3 0.029 237 Yardi 40 50 53 5.1 0.020 289 Yasutech 2 3 3 12.3 0.001 917 Yosemite Technologies 11 12 13 11.9 0.005 604 Zilliant Inc. 5 7 6 -19.0 0.002 814 Zycus 5 6 6 10.5 0.002 789 ZyLAB North America LLC 12 14 16 14.3 0.006 553 Subtotal 174,917 190,828 218,727 14.6 83.251 Other 37,581 40,278 44,004 9.2 16.749 Total 212,498 231,106 262,731 13.7 100.000

Source: IDC, 2008

TABLE 4

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) 29West 2.00 0.001 – – – – 2.00 0.001 3M 24.70 0.018 1.04 0.001 0.26 0.001 26.00 0.010 4CS 9.68 0.007 – – – – 9.68 0.004 4D Inc. 11.55 0.009 24.44 0.027 1.52 0.004 37.50 0.014 Abacus Research AG – – 18.90 0.021 – – 18.90 0.007 ABB Ltd. 33.48 0.025 33.48 0.037 16.74 0.044 83.71 0.032 ABC Systems 4.76 0.004 1.76 0.002 0.81 0.002 7.33 0.003 Able Commerce 3.50 0.003 – – – – 3.50 0.001 Accela 20.00 0.015 – – – – 20.00 0.008 Accellion 5.60 0.004 – – – – 5.60 0.002 Accelrys 21.73 0.016 9.84 0.011 9.43 0.025 41.00 0.016 Accountpro 4.63 0.003 – – – – 4.63 0.002 Accruent 28.00 0.021 – – – – 28.00 0.011 AccuRev 6.41 0.005 0.95 0.001 0.44 0.001 7.80 0.003 ACI Worldwide 148.03 0.110 103.90 0.115 27.37 0.072 279.30 0.106 Acronis 40.06 0.030 40.80 0.045 11.24 0.030 92.10 0.035 Actek 5.94 0.004 – – – – 5.94 0.002 Activant Solutions Inc. 304.58 0.226 6.22 0.007 – – 310.80 0.118 Active Endpoints Inc. 3.75 0.003 1.25 0.001 – – 5.00 0.002 Active Voice 16.43 0.012 9.61 0.011 4.96 0.013 31.00 0.012 ActivIdentity 26.75 0.020 21.79 0.024 3.21 0.008 51.75 0.020 Activision Inc. 91.27 0.068 58.36 0.065 – – 149.63 0.057 Actuate Corp. 84.28 0.063 31.30 0.035 8.42 0.022 124.00 0.047 Acxiom Digital 31.29 0.023 7.82 0.009 – – 39.11 0.015 ADAM Software – – 2.59 0.003 – – 2.59 0.001 Adexa 9.72 0.007 – – 20.65 0.054 30.37 0.012 Aditro Group – – 105.40 0.117 – – 105.40 0.040 Adobe 1,484.59 1.102 1,020.66 1.132 587.65 1.550 3,092.90 1.177 ADP 268.04 0.199 34.47 0.038 2.49 0.007 305.00 0.116 Advanced Data Exchange 8.52 0.006 – – – – 8.52 0.003 Advanced Visual Systems 7.16 0.005 4.15 0.005 1.26 0.003 12.57 0.005 Advent Software 142.12 0.106 19.38 0.021 – – 161.50 0.061 Advizor Solutions 8.91 0.007 1.57 0.002 – – 10.48 0.004

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Ahnlab Inc. 11.10 0.008 – – 36.60 0.097 47.70 0.018 Aim Technology 6.56 0.005 – – – – 6.56 0.002 Akonix 9.38 0.007 0.71 0.001 0.10 0.000 10.20 0.004 Aladdin Knowledge Systems 26.30 0.020 65.89 0.073 13.31 0.035 105.50 0.040 AlarmPoint 1.82 0.001 0.21 0.000 0.11 0.000 2.15 0.001 Alcatel Lucent 129.92 0.096 69.95 0.078 27.99 0.074 227.86 0.087 Alchemy Software Development Ltd. 1.97 0.001 1.11 0.001 0.10 0.000 3.17 0.001 Aldata Solution 3.44 0.003 38.74 0.043 0.86 0.002 43.05 0.016 Aldon 11.80 0.009 4.94 0.005 1.16 0.003 17.90 0.007 Aleri 1.20 0.001 1.50 0.002 0.30 0.001 3.00 0.001 Algor Inc. 10.43 0.008 2.53 0.003 0.26 0.001 13.22 0.005 Algorithmics Inc. 32.60 0.024 59.84 0.066 7.56 0.020 100.00 0.038 Alibre Inc. 3.71 0.003 0.20 0.000 – – 3.90 0.001 Allegro Dev. Corp. 16.60 0.012 2.40 0.003 1.00 0.003 20.00 0.008 Alloy Software 1.70 0.001 0.30 0.000 – – 2.00 0.001 Allscripts 103.20 0.077 – – – – 103.20 0.039 Allume Systems 5.73 0.004 0.25 0.000 0.31 0.001 6.30 0.002 AlmavivA – – 17.97 0.020 – – 17.97 0.007 Altair Engineering Inc. 23.54 0.017 2.94 0.003 2.94 0.008 29.42 0.011 Altova 6.06 0.004 4.84 0.005 1.21 0.003 12.11 0.005 Amano Cincinnati 10.49 0.008 1.31 0.001 1.31 0.003 13.11 0.005 Amdocs 228.65 0.170 102.75 0.114 5.49 0.014 336.90 0.128 American Software 45.76 0.034 2.95 0.003 0.49 0.001 49.20 0.019 ANGOSS Software International Ltd. 5.00 0.004 0.56 0.001 – – 5.56 0.002 Ansys Inc. 118.35 0.088 123.14 0.137 55.18 0.146 296.68 0.113 AnyDoc 8.42 0.006 1.49 0.002 – – 9.90 0.004 AOL/Mapquest 70.99 0.053 7.89 0.009 – – 78.88 0.030 Aonix 2.92 0.002 4.31 0.005 0.07 0.000 7.30 0.003 API Software 10.39 0.008 – – – – 10.39 0.004 Appfluent Inc. 7.20 0.005 – – – – 7.20 0.003 APPGEN Business Software 14.53 0.011 0.53 0.001 – – 15.06 0.006 Appian 22.50 0.017 1.25 0.001 1.25 0.003 25.00 0.010 Apple 533.07 0.396 200.43 0.222 176.47 0.465 909.97 0.346

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Applied Innovation Management 5.07 0.004 0.22 0.000 0.33 0.001 5.62 0.002 Applied Materials 4.27 0.003 2.91 0.003 12.23 0.032 19.42 0.007 Applied Systems Inc. 91.93 0.068 8.07 0.009 – – 100.00 0.038 Applied Voice & Speech Technologies 19.04 0.014 9.18 0.010 5.78 0.015 34.00 0.013 Applimation 28.00 0.021 11.20 0.012 0.80 0.002 40.00 0.015 Aprimo Corp. 25.85 0.019 6.29 0.007 1.86 0.005 34.00 0.013 AptSoft 6.00 0.004 – – – – 6.00 0.002 Aquitec International 4.13 0.003 2.22 0.002 – – 6.36 0.002 Arcplan 12.46 0.009 13.92 0.015 2.62 0.007 29.00 0.011 ArcSight 45.32 0.034 24.30 0.027 11.38 0.030 81.00 0.031 Arena 10.79 0.008 0.63 0.001 1.27 0.003 12.69 0.005 Argo Data Resource Corp. 19.93 0.015 – – – – 19.93 0.008 Argos Systems 0.39 0.000 0.21 0.000 – – 0.60 0.000 ARI Network 8.90 0.007 – – – – 8.90 0.003 Ariba Inc. 107.58 0.080 42.38 0.047 13.04 0.034 163.00 0.062 Art Tech. Group 72.85 0.054 22.06 0.024 0.99 0.003 95.90 0.037 ARTiSAN Software 3.61 0.003 4.97 0.006 0.45 0.001 9.03 0.003 ASA International 10.92 0.008 8.18 0.009 – – 19.10 0.007 Ascentis 8.31 0.006 – – – – 8.31 0.003 Ascentn 11.25 0.008 – – – – 11.25 0.004 ASCON – – 18.00 0.020 – – 18.00 0.007 ASG 257.19 0.191 77.87 0.086 10.04 0.026 345.09 0.131 Aspect Software 260.97 0.194 136.64 0.152 59.38 0.157 457.00 0.174 Aspen Technology 125.82 0.093 113.70 0.126 37.13 0.098 276.65 0.105 Assetlink 4.56 0.003 1.26 0.001 0.18 0.000 6.00 0.002 Astea International 15.61 0.012 3.83 0.004 0.76 0.002 20.20 0.008 Asure 17.50 0.013 – – – – 17.50 0.007 AT Kearney Procurement Solutions 9.20 0.007 1.97 0.002 1.97 0.005 13.15 0.005 Atempo 2.87 0.002 35.67 0.040 2.46 0.006 41.00 0.016 ATOSS Software AG – – 20.00 0.022 – – 20.00 0.008 Atrion International 7.88 0.006 9.63 0.011 – – 17.50 0.007 Attachmate 281.60 0.209 146.44 0.162 29.83 0.079 457.86 0.174 Attest 2.86 0.002 0.54 0.001 0.18 0.000 3.58 0.001

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Attunity 5.67 0.004 2.98 0.003 0.65 0.002 9.30 0.004 Augeo Software 0.74 0.001 6.67 0.007 – – 7.41 0.003 Authoria 34.30 0.025 0.70 0.001 – – 35.00 0.013 Autodesk 765.17 0.568 833.36 0.924 461.09 1.216 2,059.62 0.784 Autonomy 285.40 0.212 161.65 0.179 8.55 0.023 455.60 0.173 Autotask 2.54 0.002 – – – – 2.54 0.001 Auto-trol Technology 3.28 0.002 1.90 0.002 0.21 0.001 5.39 0.002 Avaya Inc. 571.26 0.424 281.29 0.312 120.85 0.319 973.40 0.370 AVEVA Group 25.08 0.019 84.19 0.093 69.86 0.184 179.12 0.068 AVG Technologies (Former Grisoft) 6.37 0.005 36.08 0.040 – – 42.45 0.016 Avocent 38.37 0.028 29.25 0.032 23.78 0.063 91.40 0.035 Avolent Inc. 7.20 0.005 – – 4.80 0.013 12.00 0.005 Axway 26.67 0.020 97.79 0.108 2.54 0.007 127.00 0.048 Ayanova (Ground Zero Tech-Works Inc.) 2.48 0.002 – – – – 2.48 0.001 B & L Associates 10.25 0.008 1.83 0.002 – – 12.08 0.005 B2 Systems Inc. 3.17 0.002 0.79 0.001 – – 3.96 0.002 Backbase 2.00 0.001 3.00 0.003 – – 5.00 0.002 Backweb 5.99 0.004 1.24 0.001 0.07 0.000 7.30 0.003 BakBone Software 16.26 0.012 13.95 0.015 25.59 0.067 55.80 0.021 BancTec Inc. 70.80 0.053 26.68 0.030 5.13 0.014 102.61 0.039 BasWare 3.46 0.003 65.74 0.073 – – 69.20 0.026 Baxter Planning Systems Inc. 3.76 0.003 3.59 0.004 0.65 0.002 8.00 0.003 BEA 654.21 0.486 457.07 0.507 213.73 0.564 1,325.01 0.504 Beeline 44.05 0.033 0.51 0.001 0.13 0.000 44.69 0.017 Bentley Systems Inc. 173.65 0.129 154.61 0.171 48.75 0.129 377.00 0.143 Beta Systems Software AG 6.96 0.005 89.66 0.099 0.26 0.001 96.88 0.037 BEZ Systems Inc. 3.40 0.003 – – – – 3.40 0.001 BigFix Inc. 34.03 0.025 6.23 0.007 1.25 0.003 41.50 0.016 Birdstep Technology 2.57 0.002 13.23 0.015 – – 15.80 0.006 Bison – – 21.60 0.024 – – 21.60 0.008 Blackbaud 144.02 0.107 11.02 0.012 2.36 0.006 157.40 0.060 Blackboard 166.14 0.123 31.95 0.035 14.91 0.039 213.00 0.081 Bladelogic 70.66 0.052 – – – – 70.66 0.027

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) BlueCielo ECM Solutions 3.02 0.002 6.43 0.007 0.60 0.002 10.05 0.004 Bluegarden AS – – 17.40 0.019 – – 17.40 0.007 Blueprint 2.07 0.002 0.18 0.000 0.05 0.000 2.30 0.001 Bluespring Software 12.50 0.009 – – – – 12.50 0.005 BMC 881.75 0.655 563.32 0.625 132.03 0.348 1,577.10 0.600 Bond International 8.18 0.006 16.90 0.019 1.32 0.003 26.40 0.010 Boothroyd Dewhurst 0.98 0.001 0.24 0.000 – – 1.22 0.000 Borland Software Corp. 123.68 0.092 53.66 0.060 18.27 0.048 195.60 0.074 Bottomline Technologies 57.64 0.043 45.59 0.051 1.57 0.004 104.80 0.040 BR Solutions 2.77 0.002 – – – – 2.77 0.001 Bradmark Technologies Inc. 6.92 0.005 1.00 0.001 0.08 0.000 8.00 0.003 BravoSolution 6.07 0.005 0.63 0.001 – – 6.70 0.003 Broadlane 15.88 0.012 – – – – 15.88 0.006 BroadVision 30.05 0.022 10.52 0.012 3.26 0.009 43.83 0.017 Brooks Automation 28.43 0.021 21.10 0.023 42.19 0.111 91.72 0.035 BSP 6.18 0.005 – – 25.42 0.067 31.60 0.012 Bull SAS 11.41 0.008 107.79 0.120 7.61 0.020 126.81 0.048 Business Objects 669.77 0.497 534.93 0.593 94.10 0.248 1,298.80 0.494 CA 2,256.01 1.675 1,187.63 1.317 381.36 1.006 3,825.00 1.456 Cactus Commerce 6.09 0.005 – – – – 6.09 0.002 Cadence Design Systems 699.01 0.519 270.86 0.300 499.63 1.318 1,469.50 0.559 CalAmp 5.50 0.004 – – – – 5.50 0.002 Callidus Software Inc. 49.43 0.037 11.56 0.013 3.21 0.008 64.20 0.024 Calypso Technology 9.68 0.007 9.68 0.011 4.84 0.013 24.20 0.009 Cambar Software 6.00 0.004 – – – – 6.00 0.002 Campus Management Corp. 25.00 0.019 – – – – 25.00 0.010 Camstar Systems Inc. 34.17 0.025 11.39 0.013 11.39 0.030 56.95 0.022 Cape Clear 16.68 0.012 11.12 0.012 – – 27.80 0.011 Captaris Inc. 60.29 0.045 7.07 0.008 2.50 0.007 69.85 0.027 CAS GmbH 8.93 0.007 14.03 0.016 2.55 0.007 25.50 0.010 Casewise 1.74 0.001 2.61 0.003 – – 4.35 0.002 Cassatt 2.11 0.002 – – – – 2.11 0.001 Cast Iron Systems 4.41 0.003 0.83 0.001 0.28 0.001 5.51 0.002

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) CCH 40.28 0.030 – – – – 40.28 0.015 CCK Financial Solutions Ltd. – – – – 6.82 0.018 6.82 0.003 CDC Corp. 86.82 0.064 46.39 0.051 3.79 0.010 137.00 0.052 Cegedim 85.48 0.063 110.36 0.122 20.56 0.054 216.40 0.082 Cegid SA 1.85 0.001 181.24 0.201 1.85 0.005 184.94 0.070 Celerity Solutions 1.41 0.001 – – – – 1.41 0.001 Centennial Software 7.60 0.006 11.40 0.013 – – 19.00 0.007 Centive Systems 20.70 0.015 2.30 0.003 – – 23.00 0.009 Centric Software 5.84 0.004 2.50 0.003 – – 8.34 0.003 Ceridian 73.76 0.055 8.19 0.009 – – 81.95 0.031 Cerner 644.01 0.478 55.99 0.062 – – 700.00 0.266 Certicom Corp. 15.27 0.011 1.16 0.001 0.58 0.002 17.00 0.006 Cezanne Software Inc. 0.62 0.000 7.14 0.008 0.04 0.000 7.80 0.003 CGI Information Systems 107.04 0.079 4.60 0.005 3.45 0.009 115.10 0.044 Channel Advisor 13.26 0.010 – – – – 13.26 0.005 Chase Cooper – – 12.88 0.014 3.22 0.008 16.10 0.006 Check Free Corp. 133.58 0.099 7.67 0.009 3.88 0.010 145.13 0.055 Check Point Software Technologies 275.06 0.204 219.25 0.243 96.59 0.255 590.90 0.225 Chordiant Software Inc. 47.67 0.035 41.79 0.046 0.42 0.001 89.88 0.034 Cimatron 3.93 0.003 17.11 0.019 7.66 0.020 28.70 0.011 Cincom Systems Inc. 57.54 0.043 60.28 0.067 19.18 0.051 137.00 0.052 Cisco 1,133.26 0.842 536.71 0.595 91.75 0.242 1,761.72 0.671 Citrix 682.87 0.507 575.85 0.639 133.22 0.351 1,391.94 0.530 Clearswift Corp. 6.41 0.005 35.42 0.039 15.30 0.040 57.13 0.022 Cleo 9.95 0.007 – – – – 9.95 0.004 Click Commerce Inc. 91.85 0.068 16.09 0.018 4.92 0.013 112.87 0.043 Clickability 3.70 0.003 – – – – 3.70 0.001 ClickSoftware 21.66 0.016 6.25 0.007 1.54 0.004 29.45 0.011 CMstat 2.51 0.002 – – – – 2.51 0.001 CNC Software Inc. 5.38 0.004 2.72 0.003 – – 8.10 0.003 COA Solutions 2.45 0.002 79.35 0.088 – – 81.80 0.031 Coastal Technologies 3.58 0.003 – – – – 3.58 0.001 CODA 10.85 0.008 61.59 0.068 3.46 0.009 75.90 0.029

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) CodeGear 23.16 0.017 14.29 0.016 6.75 0.018 44.20 0.017 Cognology – – – – 2.28 0.006 2.28 0.001 Cognos 521.84 0.388 331.50 0.368 77.96 0.206 931.30 0.354 Coheris 0.21 0.000 33.97 0.038 0.03 0.000 34.21 0.013 CollabNet 16.88 0.013 3.64 0.004 0.39 0.001 20.90 0.008 CombineNet 3.72 0.003 2.10 0.002 0.18 0.000 6.00 0.002 CommercialWare Inc. 1.06 0.001 0.12 0.000 – – 1.18 0.000 CommuniGate Systems 19.60 0.015 25.20 0.028 11.20 0.030 56.00 0.021 CommVault Systems Inc. 89.66 0.067 27.62 0.031 11.51 0.030 128.80 0.049 ComOps – – – – 1.30 0.003 1.30 0.000 Compiere 2.18 0.002 2.21 0.002 1.09 0.003 5.48 0.002 ComponentOne 6.10 0.005 3.33 0.004 1.66 0.004 11.10 0.004 Composite Software 12.45 0.009 0.66 0.001 – – 13.10 0.005 Computational Engineering Intl. Inc. 1.32 0.001 1.36 0.002 1.32 0.003 4.00 0.002 Computer Corp. of America (CCA) 13.87 0.010 7.57 0.008 2.56 0.007 24.00 0.009 Compuware 420.93 0.313 257.71 0.286 58.96 0.155 737.60 0.281 Concur Technologies 156.22 0.116 16.11 0.018 1.21 0.003 173.54 0.066 Consona 92.81 0.069 14.61 0.016 13.19 0.035 120.61 0.046 Constellation Software Inc. 151.30 0.112 15.30 0.017 3.40 0.009 170.00 0.065 Convera 12.61 0.009 5.82 0.006 0.97 0.003 19.40 0.007 Convergys 165.08 0.123 10.92 0.012 – – 176.00 0.067 Coral8 3.00 0.002 – – – – 3.00 0.001 Cordys 0.60 0.000 4.82 0.005 0.60 0.002 6.02 0.002 Corel Corp. 150.80 0.112 81.13 0.090 18.57 0.049 250.50 0.095 Coremetrics 14.25 0.011 1.09 0.001 0.23 0.001 15.57 0.006 Cornerstone OnDemand 5.00 0.004 – – – – 5.00 0.002 Corticon 9.12 0.007 1.11 0.001 0.89 0.002 11.12 0.004 Courion Corp. 16.39 0.012 2.24 0.002 – – 18.63 0.007 Coverity 9.16 0.007 – – – – 9.16 0.003 Criston Software 1.23 0.001 3.24 0.004 3.24 0.009 7.71 0.003 Critical Path 12.83 0.010 16.71 0.019 4.26 0.011 33.80 0.013 Crossgate 3.36 0.002 19.04 0.021 – – 22.40 0.009 Crown Computing – – 7.34 0.008 – – 7.34 0.003

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) CSB-System AG 3.88 0.003 12.61 0.014 2.91 0.008 19.40 0.007 Cybershift 14.13 0.010 1.28 0.001 0.59 0.002 16.00 0.006 CyberSource 2.00 0.001 0.37 0.000 0.12 0.000 2.50 0.001 Cybozu Inc. 0.32 0.000 – – 35.11 0.093 35.43 0.013 Danware Data A/S 5.67 0.004 12.85 0.014 0.38 0.001 18.90 0.007 Daptiv 12.32 0.009 3.08 0.003 – – 15.40 0.006 Dassault Systemes 482.05 0.358 673.38 0.747 330.73 0.872 1,486.17 0.566 Data I/O 1.78 0.001 1.43 0.002 1.73 0.005 4.94 0.002 DataCore Software 9.58 0.007 15.50 0.017 5.31 0.014 30.39 0.012 Datasul 94.82 0.070 – – – – 94.82 0.036 DataSynapse Inc. 18.66 0.014 16.19 0.018 0.35 0.001 35.20 0.013 Datawatch Corp. 15.43 0.011 5.97 0.007 – – 21.40 0.008 DATEV eG – – 323.20 0.359 – – 323.20 0.123 Day Software 6.84 0.005 8.08 0.009 0.62 0.002 15.55 0.006 db4objects 4.08 0.003 2.72 0.003 1.20 0.003 8.00 0.003 Deltek Systems 180.14 0.134 9.50 0.011 0.36 0.001 190.00 0.072 DemandTec 38.00 0.028 2.00 0.002 – – 40.00 0.015 Descartes Systems 35.59 0.026 13.03 0.014 1.50 0.004 50.13 0.019 Digital River Inc. 63.92 0.047 31.19 0.035 7.99 0.021 103.10 0.039 Diligent Technologies 22.49 0.017 – – – – 22.49 0.009 Diskeeper Corp. 15.66 0.012 7.87 0.009 0.44 0.001 23.96 0.009 DO2 Technologies 6.68 0.005 0.74 0.001 – – 7.42 0.003 Document Sciences Corp. 22.74 0.017 3.29 0.004 1.37 0.004 27.40 0.010 DoubleClick Inc. 51.00 0.038 – – – – 51.00 0.019 Double-Take Software 50.16 0.037 18.79 0.021 2.50 0.007 71.46 0.027 DSC 5.59 0.004 – – 19.74 0.052 25.33 0.010 Dun & Bradstreet (D&B Sls & Mktg. Sols) 46.50 0.035 – – – – 46.50 0.018 Duzon Digitalware 3.42 0.003 – – 16.24 0.043 19.66 0.007 Dynamacs 7.69 0.006 – – – – 7.69 0.003 Easylink Services 54.76 0.041 17.76 0.020 1.48 0.004 74.00 0.028 Eclipsys 300.00 0.223 – – – – 300.00 0.114 Econintel Treasury Systems Inc. 1.60 0.001 1.06 0.001 – – 2.66 0.001 Ecora Software 8.13 0.006 1.75 0.002 0.41 0.001 10.29 0.004

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Ecteon 9.95 0.007 – – – – 9.95 0.004 EDB Gruppen A/S – – 22.70 0.025 – – 22.70 0.009 Edifecs 7.74 0.006 – – – – 7.74 0.003 eGain 7.43 0.006 5.94 0.007 0.14 0.000 13.50 0.005 eIQ Networks Inc. 13.30 0.010 5.70 0.006 – – 19.00 0.007 Ektron 16.24 0.012 2.29 0.003 0.57 0.002 19.10 0.007 Elcom International Inc. 2.63 0.002 – – – – 2.63 0.001 Electronic Arts 271.70 0.202 234.41 0.260 26.64 0.070 532.75 0.203 Element K 9.76 0.007 4.18 0.005 – – 13.94 0.005 Emagia 6.86 0.005 – – – – 6.86 0.003 Embarcadero Technologies 36.32 0.027 4.29 0.005 2.49 0.007 43.10 0.016 EMC 2,354.67 1.749 1,209.49 1.342 373.75 0.986 3,937.91 1.499 Emergis 43.78 0.033 – – – – 43.78 0.017 Empirix 49.34 0.037 9.40 0.010 10.36 0.027 69.10 0.026 Empress Software 27.74 0.021 4.09 0.005 13.64 0.036 45.48 0.017 Emptoris 21.78 0.016 11.22 0.012 – – 33.00 0.013 Endeca 71.21 0.053 9.94 0.011 1.66 0.004 82.80 0.032 ENEA 8.99 0.007 35.96 0.040 1.15 0.003 46.10 0.018 Engineous Software Inc. 3.10 0.002 1.44 0.002 3.03 0.008 7.57 0.003 Enigma 12.92 0.010 3.23 0.004 – – 16.15 0.006 Enterasys Networks Inc. 57.04 0.042 19.02 0.021 – – 76.06 0.029 Enterprise Incentive Software Inc. 7.50 0.006 – – – – 7.50 0.003 Enterworks 9.32 0.007 – – 0.19 0.000 9.51 0.004 Entigo 6.60 0.005 0.77 0.001 0.45 0.001 7.82 0.003 Entomo 6.62 0.005 – – – – 6.62 0.003 Entrust Inc. 49.17 0.037 19.52 0.022 7.81 0.021 76.50 0.029 Epicor Software Corp. 180.24 0.134 66.00 0.073 23.47 0.062 269.70 0.103 ePlus 10.72 0.008 – – – – 10.72 0.004 Eqos 3.65 0.003 – – – – 3.65 0.001 ERI Bancaire SA 4.71 0.003 48.28 0.054 5.89 0.016 58.87 0.022 ESA Software Spa – – 32.20 0.036 – – 32.20 0.012 Escalate Retail 36.07 0.027 3.89 0.004 0.81 0.002 40.77 0.016 ESET 46.75 0.035 8.25 0.009 – – 55.00 0.021

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) ESI 2.28 0.002 5.33 0.006 – – 7.62 0.003 Esker Software 16.99 0.013 12.04 0.013 1.46 0.004 30.50 0.012 e-Spirit AG – – 5.10 0.006 – – 5.10 0.002 ESRI 344.85 0.256 165.87 0.184 59.28 0.156 570.00 0.217 ESS 6.77 0.005 0.74 0.001 0.74 0.002 8.25 0.003 etrials 3.24 0.002 – – – – 3.24 0.001 Eurosoft (UK) 1.32 0.001 2.85 0.003 0.22 0.001 4.39 0.002 EVault 29.43 0.022 5.19 0.006 – – 34.63 0.013 EVER Group 0.26 0.000 12.74 0.014 – – 13.00 0.005 Everest Software Inc. 7.91 0.006 0.19 0.000 0.02 0.000 8.13 0.003 Evolutionary Technologies International 9.86 0.007 5.48 0.006 0.31 0.001 15.66 0.006 EXA Corp. 1.32 0.001 1.98 0.002 – – 3.30 0.001 Exact Holding NV 79.31 0.059 191.36 0.212 7.34 0.019 278.00 0.106 Excelergy Corp. 6.50 0.005 0.72 0.001 – – 7.22 0.003 Exigen 4.83 0.004 2.20 0.002 0.97 0.003 8.00 0.003 Expandable Software Inc. 5.70 0.004 – – – – 5.70 0.002 Experian 22.50 0.017 – – – – 22.50 0.009 Explorer Software Inc. 4.18 0.003 – – – – 4.18 0.002 Exstream 51.74 0.038 22.29 0.025 5.57 0.015 79.60 0.030 Extol 11.60 0.009 – – – – 11.60 0.004 Eze Castle Software 6.75 0.005 – – – – 6.75 0.003 FaceTime Communications Inc. 18.81 0.014 2.75 0.003 0.44 0.001 22.00 0.008 Fair Isaac 547.41 0.407 93.03 0.103 24.05 0.063 664.50 0.253 FairCom Corp. 1.76 0.001 0.54 0.001 0.11 0.000 2.40 0.001 Falconstor Software Inc. 43.24 0.032 11.50 0.013 17.15 0.045 71.89 0.027 Fast Search & Transfer Inc. 49.68 0.037 37.79 0.042 19.83 0.052 107.30 0.041 FatWire Software 10.00 0.007 10.00 0.011 5.00 0.013 25.00 0.010 Fenestrae BV 3.04 0.002 4.18 0.005 0.38 0.001 7.60 0.003 Fidelity National 141.04 0.105 76.99 0.085 24.97 0.066 243.00 0.092 Fidessa 66.30 0.049 45.50 0.050 18.20 0.048 130.00 0.049 Fieldglass 7.88 0.006 0.87 0.001 – – 8.75 0.003 Financial Objects PLC 1.73 0.001 22.23 0.025 0.74 0.002 24.70 0.009 Financial Sciences Corp. 11.48 0.009 – – 0.60 0.002 12.08 0.005

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Financial Software Systems 3.39 0.003 0.85 0.001 – – 4.23 0.002 Finestra – – 1.36 0.002 – – 1.36 0.001 Fiorano Software Inc. 5.53 0.004 2.63 0.003 0.34 0.001 8.50 0.003 FirePond Inc. 1.91 0.001 0.12 0.000 0.11 0.000 2.14 0.001 Firestar 5.06 0.004 – – – – 5.06 0.002 First Data (Peace Software) 6.30 0.005 – – 6.30 0.017 12.59 0.005 Firstwave Technologies Inc. 2.56 0.002 0.75 0.001 0.24 0.001 3.55 0.001 Fiserv 825.52 0.613 49.84 0.055 17.85 0.047 893.20 0.340 FlexiInternational Software 6.48 0.005 1.14 0.001 – – 7.62 0.003 Formula Telecom Solutions 2.96 0.002 0.74 0.001 – – 3.71 0.001 Foundation for Windows 8.51 0.006 – – – – 8.51 0.003 Four Js Development Tools Inc. 9.02 0.007 5.80 0.006 1.29 0.003 16.10 0.006 Four Soft Ltd. 0.24 0.000 1.92 0.002 0.24 0.001 2.39 0.001 FrontRange Solutions Inc. 29.39 0.022 50.86 0.056 4.75 0.013 85.00 0.032 FRS 4.31 0.003 4.31 0.005 2.15 0.006 10.77 0.004 F-Secure Corp. 21.87 0.016 108.50 0.120 1.95 0.005 132.32 0.050 Fujitsu 146.02 0.108 160.32 0.178 1,963.96 5.180 2,270.29 0.864 Gateway Systems Inc. 4.20 0.003 – – – – 4.20 0.002 Gavel and Gown Software 7.59 0.006 0.95 0.001 0.95 0.002 9.48 0.004 Gemalto 18.53 0.014 42.01 0.047 1.24 0.003 61.78 0.024 Gemmar Systems International Inc. 1.56 0.001 – – – – 1.56 0.001 Gemstone 0.70 0.001 – – – – 0.70 0.000 Genesys Conferencing 22.10 0.016 10.20 0.011 1.70 0.004 34.00 0.013 Genesys Software Systems Inc. 5.29 0.004 – – – – 5.29 0.002 Genesys Tele. Commn. Laboratories 154.70 0.115 146.92 0.163 65.68 0.173 367.30 0.140 Gensym 5.38 0.004 2.85 0.003 0.97 0.003 9.20 0.004 GFI Informatique – – 109.66 0.122 – – 109.66 0.042 GHX 45.00 0.033 – – – – 45.00 0.017 GigaSpaces 11.20 0.008 2.80 0.003 – – 14.00 0.005 Global 360 74.09 0.055 35.85 0.040 9.56 0.025 119.50 0.045 Global IDs Inc. 0.90 0.001 – – 0.10 0.000 1.00 0.000 Global Software Inc. 38.68 0.029 5.32 0.006 – – 44.00 0.017 GlobeNet Technologies 3.85 0.003 – – – – 3.85 0.001

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) GMT Corp. 12.91 0.010 1.52 0.002 0.76 0.002 15.19 0.006 GoldenGate Inc. 29.23 0.022 12.53 0.014 10.44 0.028 52.20 0.020 Google Inc. 123.00 0.091 47.73 0.053 10.61 0.028 181.34 0.069 Gores Technology Group 15.25 0.011 – – – – 15.25 0.006 Graphisoft 6.16 0.005 27.12 0.030 6.48 0.017 39.76 0.015 Green Hills Software 36.12 0.027 7.22 0.008 1.81 0.005 45.15 0.017 Gruppo Formula Spa 0.21 0.000 19.28 0.021 0.00 0.000 19.50 0.007 GSE Systems 1.66 0.001 1.68 0.002 1.43 0.004 4.77 0.002 GT Software 3.90 0.003 0.43 0.000 – – 4.34 0.002 Guidance 42.17 0.031 22.71 0.025 – – 64.88 0.025 GXS 351.00 0.261 27.30 0.030 11.70 0.031 390.00 0.148 Haansoft Inc. – – – – 23.93 0.063 23.93 0.009 Haley 4.91 0.004 3.42 0.004 5.63 0.015 13.96 0.005 Halo Technology 5.00 0.004 6.19 0.007 0.71 0.002 11.90 0.005 Halogen Software 20.00 0.015 – – – – 20.00 0.008 Handysoft Corp. 10.42 0.008 3.47 0.004 17.70 0.047 31.59 0.012 HansaWorld Ltd. 0.33 0.000 15.91 0.018 0.16 0.000 16.40 0.006 HardDollar 2.29 0.002 1.71 0.002 0.49 0.001 4.49 0.002 Hauri Inc. 1.17 0.001 – – 6.63 0.017 7.80 0.003 HDS 105.08 0.078 131.25 0.146 57.93 0.153 294.26 0.112 Healthvision 78.10 0.058 17.72 0.020 – – 95.82 0.036 Healy Hudson – – 5.94 0.007 – – 5.94 0.002 Heroix Corp. 4.62 0.003 2.71 0.003 – – 7.32 0.003 High Line Corp. 7.42 0.006 – – – – 7.42 0.003 Hit Software 2.06 0.002 0.62 0.001 0.12 0.000 2.80 0.001 Hitachi 35.08 0.026 5.48 0.006 1,388.65 3.662 1,429.21 0.544 HK Systems 22.64 0.017 1.19 0.001 – – 23.83 0.009 HodesIQ 4.38 0.003 – – – – 4.38 0.002 Hogia Group – – 32.70 0.036 – – 32.70 0.012 HP 2,065.56 1.534 1,887.99 2.094 657.97 1.735 4,611.51 1.755 HR Access 2.42 0.002 31.05 0.034 1.04 0.003 34.50 0.013 HR Technologies 3.85 0.003 – – – – 3.85 0.001 Hubwoo – – 38.80 0.043 – – 38.80 0.015

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Hyland Software 86.93 0.065 1.46 0.002 3.11 0.008 91.50 0.035 Hyphen 15.06 0.011 0.31 0.000 – – 15.38 0.006 Hyphen Solutions 47.34 0.035 – – – – 47.34 0.018 i2 Technologies 81.12 0.060 28.39 0.031 25.69 0.068 135.20 0.051 IBM 10,814.74 8.031 8,239.55 9.140 2,769.41 7.304 21,823.70 8.306 IBM Application Solutions 1.08 0.001 3.96 0.004 59.89 0.158 64.93 0.025 IBS AB 6.68 0.005 58.54 0.065 7.41 0.020 72.63 0.028 ICG Commerce 14.25 0.011 0.75 0.001 – – 15.00 0.006 iCIMS 17.00 0.013 – – – – 17.00 0.006 ICS 2.20 0.002 0.18 0.000 0.12 0.000 2.51 0.001 Idiom Inc. 26.66 0.020 6.66 0.007 – – 33.32 0.013 IDS Scheer AG 14.55 0.011 87.43 0.097 5.82 0.015 107.80 0.041 IFS Industrial and Financial Systems AB 20.94 0.016 135.57 0.150 11.69 0.031 168.20 0.064 Igloo Security 0.04 0.000 – – 9.26 0.024 9.30 0.004 IHS Energy Group 5.61 0.004 0.62 0.001 – – 6.23 0.002 ILOG Inc. 61.77 0.046 51.03 0.057 15.00 0.040 127.80 0.049 iMany 9.50 0.007 0.40 0.000 0.10 0.000 10.00 0.004 Immersive Design Inc. 0.70 0.001 0.30 0.000 – – 1.00 0.000 I-Net Software 2.00 0.001 0.86 0.001 – – 2.86 0.001 Infogrames 14.97 0.011 49.88 0.055 6.41 0.017 71.26 0.027 Infor 909.52 0.675 740.43 0.821 131.11 0.346 1,781.06 0.678 Informatica 215.85 0.160 95.21 0.106 15.30 0.040 326.36 0.124 Information Builders Inc. 170.32 0.126 53.55 0.059 31.13 0.082 255.00 0.097 Inforsud – – 9.60 0.011 – – 9.60 0.004 InfoTel Corp. 1.93 0.001 2.12 0.002 – – 4.05 0.002 InfoVista 20.38 0.015 18.61 0.021 5.32 0.014 44.30 0.017 Infra Corp. 5.33 0.004 2.66 0.003 5.33 0.014 13.32 0.005 Infragistics Corp. 24.37 0.018 5.78 0.006 1.28 0.003 31.43 0.012 Ingres Corp. 9.27 0.007 14.14 0.016 4.59 0.012 28.00 0.011 Initech 0.00 0.000 – – 10.60 0.028 10.60 0.004 Initiate Systems Inc. 35.60 0.026 4.00 0.004 0.40 0.001 40.00 0.015 InMarketing Group 3.85 0.003 – – – – 3.85 0.001 Innotas 6.00 0.004 – – – – 6.00 0.002

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Innovation Asset Group 2.21 0.002 – – – – 2.21 0.001 Innovation Group 16.10 0.012 49.00 0.054 4.90 0.013 70.00 0.027 Innovations Software Technology 0.14 0.000 6.41 0.007 0.05 0.000 6.60 0.003 Inovis 176.85 0.131 1.25 0.001 1.25 0.003 179.36 0.068 InRule Technology 2.33 0.002 0.12 0.000 – – 2.45 0.001 Insightful Corp. 7.90 0.006 6.72 0.007 1.18 0.003 15.80 0.006 INSTEC 2.09 0.002 – – – – 2.09 0.001 Intalio 2.04 0.002 1.66 0.002 – – 3.70 0.001 Integrated Decisions & Systems Inc.(IDeaS) 5.00 0.004 – – – – 5.00 0.002 Integrated Research 18.85 0.014 8.51 0.009 3.04 0.008 30.40 0.012 Integrated Support Systems 3.88 0.003 3.95 0.004 1.95 0.005 9.78 0.004 Integrify 3.60 0.003 – – – – 3.60 0.001 Intel Corp. 6.91 0.005 3.78 0.004 5.76 0.015 16.45 0.006 IntelliCorp Inc. 3.65 0.003 1.23 0.001 0.02 0.000 4.90 0.002 Intellitactics 11.40 0.008 3.80 0.004 – – 15.20 0.006 Interactive Intelligence Inc. 75.24 0.056 15.84 0.018 7.92 0.021 99.00 0.038 InterCall 20.88 0.016 3.12 0.003 – – 24.00 0.009 Interfacing Technologies 1.50 0.001 3.04 0.003 – – 4.53 0.002 Intergraph 325.19 0.241 191.63 0.213 63.88 0.168 580.70 0.221 Intershop Communications 8.03 0.006 13.25 0.015 0.21 0.001 21.50 0.008 InterSystems Corp. 153.64 0.114 62.75 0.070 12.41 0.033 228.80 0.087 Intervoice 109.50 0.081 33.00 0.037 7.50 0.020 150.00 0.057 Interwise (AT&T) 33.00 0.025 – – – – 33.00 0.013 Interwoven 124.90 0.093 45.81 0.051 19.39 0.051 190.10 0.072 Intime Solutions 13.04 0.010 1.53 0.002 0.77 0.002 15.34 0.006 IntraLearn Software Corp. 4.63 0.003 1.16 0.001 – – 5.79 0.002 IntraLinks 77.90 0.058 13.30 0.015 3.80 0.010 95.00 0.036 Intuit 1,524.41 1.132 42.45 0.047 14.15 0.037 1,581.00 0.602 Invensys 128.30 0.095 98.50 0.109 41.60 0.110 268.40 0.102 Investment Technology Group 12.50 0.009 – – – – 12.50 0.005 Iona 39.00 0.029 22.69 0.025 9.22 0.024 70.90 0.027 iPass 4.61 0.003 0.86 0.001 0.29 0.001 5.76 0.002 IPS of Boston 4.00 0.003 – – – – 4.00 0.002

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Ipswitch 27.20 0.020 6.00 0.007 2.50 0.007 35.70 0.014 IQ Navigator 20.00 0.015 – – – – 20.00 0.008 IRIS Group Ltd. 0.32 0.000 36.48 0.040 – – 36.80 0.014 IRIS Integrated Risk Management 2.60 0.002 16.88 0.019 6.49 0.017 25.97 0.010 iRise 12.09 0.009 0.38 0.000 0.13 0.000 12.60 0.005 Iron Mountain Inc. 107.59 0.080 28.77 0.032 2.64 0.007 139.00 0.053 IronCAD 2.54 0.002 0.30 0.000 0.15 0.000 2.99 0.001 Island Pacific Inc. 15.16 0.011 – – – – 15.16 0.006 iSoft PLC – – 127.80 0.142 14.20 0.037 142.00 0.054 ISU Ubcare – – – – 14.36 0.038 14.36 0.005 Itron Inc. 99.00 0.074 5.50 0.006 5.50 0.015 110.00 0.042 Jabber 7.46 0.006 0.74 0.001 – – 8.20 0.003 Jacada 13.26 0.010 2.34 0.003 – – 15.60 0.006 Jack Henry & Associates 260.77 0.194 2.63 0.003 – – 263.40 0.100 JDA Software Group Inc. 144.53 0.107 75.04 0.083 32.23 0.085 251.80 0.096 Jeeves Information Systems 0.17 0.000 16.01 0.018 0.33 0.001 16.50 0.006 Jenzabar 36.00 0.027 4.00 0.004 – – 40.00 0.015 Jeppesen 6.47 0.005 17.18 0.019 1.25 0.003 24.90 0.009 Jesta I.S. 39.08 0.029 9.73 0.011 – – 48.81 0.019 JetBrains 5.64 0.004 3.00 0.003 0.60 0.002 9.25 0.004 Jive Software 8.25 0.006 2.20 0.002 0.55 0.001 11.00 0.004 JP Morgan 73.06 0.054 28.23 0.031 15.39 0.041 116.68 0.044 Juniper Networks 9.33 0.007 7.35 0.008 6.26 0.017 22.94 0.009 Justsystem Corp. – – – – 68.80 0.181 68.80 0.026 K2 16.00 0.012 8.00 0.009 8.00 0.021 32.00 0.012 Kaba Benzing 22.80 0.017 15.20 0.017 – – 38.00 0.014 Kabira 16.25 0.012 8.75 0.010 – – 25.00 0.010 Kalido 6.15 0.005 8.42 0.009 1.62 0.004 16.19 0.006 Kamakura Corp. 3.24 0.002 3.24 0.004 6.48 0.017 12.95 0.005 Kana 38.63 0.029 9.31 0.010 1.06 0.003 49.00 0.019 Kapow Technologies 9.20 0.007 – – – – 9.20 0.004 Kaspersky Lab 18.52 0.014 72.25 0.080 32.74 0.086 123.50 0.047 Kenexa 136.55 0.101 10.89 0.012 1.56 0.004 149.00 0.057

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Ketera 3.32 0.002 – – – – 3.32 0.001 Kewill Systems PLC 19.04 0.014 22.97 0.025 0.30 0.001 42.30 0.016 Keynote Systems Inc. 43.15 0.032 9.17 0.010 1.08 0.003 53.40 0.020 Keyware – – 2.90 0.003 – – 2.90 0.001 Kinaxis 20.95 0.016 1.15 0.001 6.60 0.017 28.70 0.011 Kingdee 4.14 0.003 – – 48.55 0.128 52.69 0.020 Kofax 81.64 0.061 72.09 0.080 12.87 0.034 166.60 0.063 Kognitio 0.74 0.001 14.06 0.016 – – 14.80 0.006 Kronos Inc. 341.78 0.254 23.65 0.026 9.57 0.025 375.00 0.143 KSS 10.00 0.007 – – – – 10.00 0.004 Kubotek 2.70 0.002 – – – – 2.70 0.001 KXEN 4.28 0.003 6.42 0.007 – – 10.70 0.004 Kyriba 3.00 0.002 3.75 0.004 0.75 0.002 7.50 0.003 Lagan 5.00 0.004 15.00 0.017 – – 20.00 0.008 Language Engineering Corp. 0.42 0.000 – – 3.75 0.010 4.17 0.002 Lanner Group Inc. 1.49 0.001 2.84 0.003 0.48 0.001 4.82 0.002 Laplink Software Inc. 5.95 0.004 2.12 0.002 0.42 0.001 8.50 0.003 Lawson Software 266.84 0.198 153.67 0.170 23.69 0.062 444.20 0.169 Layer 7 Technologies 3.29 0.002 0.37 0.000 – – 3.66 0.001 LearnFrame 19.60 0.015 8.40 0.009 – – 28.00 0.011 Lefebvre Software – – 17.43 0.019 – – 17.43 0.007 Lefthand Networks 12.05 0.009 – – – – 12.05 0.005 Leica Geosystems 32.31 0.024 18.77 0.021 8.96 0.024 60.04 0.023 Levi, Ray & Shoup Inc. 72.85 0.054 18.03 0.020 1.42 0.004 92.30 0.035 LexisNexis Interface Software Inc. 20.17 0.015 3.65 0.004 0.24 0.001 24.07 0.009 Liaison 4.80 0.004 0.60 0.001 0.60 0.002 6.00 0.002 LMS International 3.97 0.003 7.57 0.008 6.49 0.017 18.03 0.007 LogicLibrary Inc. 3.99 0.003 0.75 0.001 0.25 0.001 4.98 0.002 LogicTools Inc. 2.63 0.002 2.24 0.002 0.65 0.002 5.52 0.002 LogiGear 1.11 0.001 – – – – 1.11 0.000 Logility Inc. 34.09 0.025 6.99 0.008 2.62 0.007 43.70 0.017 LogMeIn Inc. 16.47 0.012 7.06 0.008 – – 23.52 0.009 Lombard Risk Management 1.13 0.001 4.51 0.005 1.88 0.005 7.51 0.003

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Lombardi Software 36.11 0.027 17.25 0.019 0.54 0.001 53.90 0.021 Lumension Security 57.47 0.043 26.30 0.029 2.23 0.006 86.00 0.033 M.B. Foster Associates 5.03 0.004 1.86 0.002 – – 6.89 0.003 Maconomy A/S 2.36 0.002 20.14 0.022 – – 22.50 0.009 Macro 4 28.80 0.021 23.02 0.026 0.28 0.001 52.10 0.020 Macrovision 50.05 0.037 21.19 0.024 5.46 0.014 76.70 0.029 Magic Software Enterprises Inc. 16.64 0.012 15.81 0.018 9.15 0.024 41.60 0.016 Main Sequence 3.28 0.002 – – – – 3.28 0.001 Mainsoft 9.72 0.007 1.58 0.002 – – 11.30 0.004 MaintenanceNet 6.63 0.005 – – – – 6.63 0.003 Mamut ASA – – 42.50 0.047 – – 42.50 0.016 Managed Objects 17.35 0.013 9.76 0.011 – – 27.10 0.010 Management Controls Inc. 4.56 0.003 – – – – 4.56 0.002 Management Dynamics 14.83 0.011 1.36 0.002 0.85 0.002 17.04 0.006 ManageSoft 4.61 0.003 1.32 0.001 0.66 0.002 6.58 0.003 Mandriva 1.28 0.001 1.51 0.002 0.12 0.000 2.90 0.001 Manhattan Associates 175.85 0.131 22.74 0.025 10.01 0.026 208.60 0.079 Maritz Incentives 15.08 0.011 2.20 0.002 – – 17.28 0.007 Matisse 1.46 0.001 0.63 0.001 – – 2.08 0.001 Matrikon 11.30 0.008 4.10 0.005 4.60 0.012 20.00 0.008 Matrix42 3.11 0.002 4.66 0.005 – – 7.77 0.003 Maxager 5.00 0.004 – – – – 5.00 0.002 Maximizer Software Inc. 11.04 0.008 3.12 0.003 1.34 0.004 15.50 0.006 Maximus 133.00 0.099 – – – – 133.00 0.051 Maxwell Systems 14.00 0.010 – – – – 14.00 0.005 MCA Solutions 4.21 0.003 4.02 0.004 0.73 0.002 8.95 0.003 McAfee 751.47 0.558 284.17 0.315 147.57 0.389 1,183.21 0.450 MCBA 33.79 0.025 6.21 0.007 – – 40.00 0.015 McCabe & Associates 6.89 0.005 1.37 0.002 0.33 0.001 8.59 0.003 McKessonHBOC 1,046.64 0.777 102.09 0.113 – – 1,148.73 0.437 McLaren Software 7.33 0.005 1.72 0.002 – – 9.05 0.003 MCS 6.70 0.005 2.93 0.003 0.29 0.001 9.93 0.004 Mediasurface 1.48 0.001 17.02 0.019 – – 18.50 0.007

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Medical Information Technology 191.10 0.142 3.90 0.004 – – 195.00 0.074 Medidata Solutions 2.92 0.002 0.83 0.001 0.42 0.001 4.17 0.002 Mega International 5.13 0.004 11.64 0.013 0.34 0.001 17.11 0.007 Mentor Graphics 344.79 0.256 185.58 0.206 216.63 0.571 747.00 0.284 Mercado Software Inc. 11.70 0.009 1.30 0.001 – – 13.00 0.005 Merced Systems 7.66 0.006 – – – – 7.66 0.003 Meridian Systems 20.72 0.015 0.50 0.001 0.57 0.001 21.78 0.008 MessageLabs 12.70 0.009 100.31 0.111 2.64 0.007 115.65 0.044 Meta4 9.54 0.007 20.26 0.022 – – 29.80 0.011 MetaCase 2.83 0.002 3.28 0.004 1.53 0.004 7.64 0.003 Metastorm 32.11 0.024 14.40 0.016 2.29 0.006 48.80 0.019 Metavante Corp. 202.45 0.150 44.70 0.050 17.75 0.047 264.90 0.101 Metron Tech Ltd. AG 1.07 0.001 3.20 0.004 1.07 0.003 5.34 0.002 Micro Focus 93.96 0.070 85.42 0.095 34.17 0.090 213.54 0.081 Micros Systems 236.68 0.176 120.28 0.133 31.04 0.082 388.00 0.148 Microsoft 22,290.73 16.553 16,052.24 17.806 7,747.69 20.434 46,090.66 17.543 MicroStrategy 167.67 0.125 82.43 0.091 15.80 0.042 265.90 0.101 Midland HR & Payroll Solutions – – 18.30 0.020 – – 18.30 0.007 Mincom Ltd. 59.08 0.044 9.96 0.011 26.99 0.071 96.03 0.037 Mindjet Corp. 30.40 0.023 6.08 0.007 1.52 0.004 38.00 0.014 Mindreef Inc. 4.01 0.003 0.81 0.001 0.08 0.000 4.90 0.002 Mirapoint 10.80 0.008 10.80 0.012 5.40 0.014 27.00 0.010 Missler Software 1.28 0.001 27.20 0.030 3.52 0.009 32.00 0.012 Misys 457.26 0.340 247.68 0.275 57.16 0.151 762.10 0.290 MIVA 15.06 0.011 – – – – 15.06 0.006 MKS 28.61 0.021 15.37 0.017 1.53 0.004 45.50 0.017 Moai Technologies Inc. 12.43 0.009 3.11 0.003 – – 15.53 0.006 Model N 10.80 0.008 1.20 0.001 – – 12.00 0.005 Modulant Inc. 10.39 0.008 – – – – 10.39 0.004 Moldflow Corp. 11.25 0.008 10.32 0.011 10.29 0.027 31.86 0.012 Motive Communications 50.56 0.038 8.96 0.010 4.48 0.012 64.00 0.024 MQSoftware 13.63 0.010 3.82 0.004 0.31 0.001 17.76 0.007 MSC Software 30.49 0.023 32.77 0.036 31.44 0.083 94.70 0.036

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) M-Tech Information Technology Inc. 17.00 0.013 3.00 0.003 – – 20.00 0.008 Multima Corp. 5.15 0.004 0.91 0.001 – – 6.06 0.002 Murex 1.08 0.001 5.95 0.007 3.79 0.010 10.82 0.004 mValent 5.15 0.004 0.27 0.000 – – 5.42 0.002 MYOB Ltd. 0.96 0.001 19.95 0.022 109.09 0.288 130.00 0.049 MySQL 20.74 0.015 15.09 0.017 1.89 0.005 37.72 0.014 NASDAQ OMX 17.37 0.013 26.06 0.029 14.47 0.038 57.90 0.022 nCircle 13.34 0.010 2.05 0.002 1.71 0.005 17.10 0.007 NEC 25.86 0.019 29.10 0.032 911.57 2.404 966.53 0.368 Nedstat – – 17.78 0.020 – – 17.78 0.007 Nemetschek 13.05 0.010 155.83 0.173 17.52 0.046 186.40 0.071 Netezza Corp. 39.42 0.029 7.39 0.008 2.46 0.006 49.28 0.019 netForensics 23.80 0.018 10.20 0.011 – – 34.00 0.013 NetManage Inc. 28.11 0.021 5.62 0.006 2.24 0.006 35.97 0.014 NetRatings Inc. 0.93 0.001 6.86 0.008 7.80 0.021 15.60 0.006 Netron Inc. 12.08 0.009 5.41 0.006 – – 17.49 0.007 NetSuite 78.16 0.058 14.65 0.016 4.87 0.013 97.69 0.037 NetSupport Inc. 11.60 0.009 18.89 0.021 2.65 0.007 33.14 0.013 NETtime Solutions 5.13 0.004 – – – – 5.13 0.002 Network Appliance 638.50 0.474 293.14 0.325 60.84 0.160 992.49 0.378 Network Automation 2.34 0.002 0.67 0.001 0.33 0.001 3.34 0.001 NeuSoft – – – – 26.98 0.071 26.98 0.010 Newtron – – 4.28 0.005 – – 4.28 0.002 Nextrials 1.57 0.001 – – – – 1.57 0.001 NICE SYSTEMS 160.05 0.119 87.30 0.097 43.65 0.115 291.00 0.111 Nobscot 2.56 0.002 – – – – 2.56 0.001 Nokia Corp. 43.97 0.033 11.80 0.013 9.74 0.026 65.50 0.025 Nomura Research Institute Ltd. – – – – 59.52 0.157 59.52 0.023 Norman ASA 2.76 0.002 43.31 0.048 – – 46.07 0.018 Nortel Networks 392.14 0.291 173.33 0.192 101.43 0.268 666.90 0.254 Northgate Information Solutions PLC 2.10 0.002 212.15 0.235 1.26 0.003 215.50 0.082 NovaStor 3.40 0.003 4.05 0.004 0.65 0.002 8.10 0.003 Novell 325.50 0.242 306.47 0.340 60.14 0.159 692.10 0.263

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) NOW Solutions LLC 5.26 0.004 0.22 0.000 – – 5.47 0.002 NOWCOM (Winstechnet) – – – – 5.56 0.015 5.56 0.002 Nstein 7.98 0.006 4.77 0.005 0.52 0.001 13.26 0.005 Nuance Communications Inc. 440.80 0.327 71.63 0.079 38.57 0.102 551.00 0.210 NuBridges 16.84 0.013 0.92 0.001 0.55 0.001 18.30 0.007 Numara Software 52.03 0.039 13.01 0.014 – – 65.04 0.025 Nuview Systems Inc. 19.54 0.015 – – – – 19.54 0.007 OBIC Business Consultants Co. Ltd. – – – – 68.09 0.180 68.09 0.026 OBIC Co. Ltd. – – – – 49.50 0.131 49.50 0.019 Object Connections 0.30 0.000 – – 2.68 0.007 2.98 0.001 ObjectFX 12.43 0.009 – – – – 12.43 0.005 Objectivity Inc. 5.02 0.004 0.67 0.001 1.00 0.003 6.68 0.003 Omniture 97.46 0.072 26.34 0.029 7.90 0.021 131.70 0.050 Omniware – – 5.94 0.007 – – 5.94 0.002 Omtool Ltd. 14.45 0.011 1.62 0.002 0.33 0.001 16.40 0.006 One Network 6.40 0.005 1.60 0.002 – – 8.00 0.003 Online Resources Corp. 121.00 0.090 – – – – 121.00 0.046 OnStream Media 11.66 0.009 0.17 0.000 0.17 0.000 12.00 0.005 Onventis – – 14.97 0.017 – – 14.97 0.006 Opalis Software 5.94 0.004 2.97 0.003 0.99 0.003 9.91 0.004 Open Solutions Inc. 117.08 0.087 – – – – 117.08 0.045 Open Systems Holding Corp. 16.02 0.012 0.68 0.001 0.50 0.001 17.21 0.007 Open Systems Management Ltd. 2.97 0.002 6.53 0.007 0.09 0.000 9.59 0.004 Open Text Corp. 250.97 0.186 259.15 0.287 29.78 0.079 539.90 0.205 OpenAir 7.28 0.005 0.48 0.001 0.24 0.001 8.00 0.003 OpenConnect Systems 9.21 0.007 1.30 0.001 0.33 0.001 10.84 0.004 Openjaw Technologies 0.87 0.001 0.65 0.001 0.65 0.002 2.18 0.001 OpenSpan 3.60 0.003 – – – – 3.60 0.001 Openwave Systems Inc. 59.44 0.044 65.81 0.073 34.25 0.090 159.50 0.061 Optiant Inc. 4.42 0.003 1.10 0.001 – – 5.52 0.002 Optio Software 13.29 0.010 3.53 0.004 0.88 0.002 17.70 0.007 Oracle 8,171.68 6.068 6,003.52 6.659 2,952.80 7.788 17,128.00 6.519 ORSYP SA 6.66 0.005 17.28 0.019 0.74 0.002 24.68 0.009

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) OSISoft 14.40 0.011 5.38 0.006 2.15 0.006 21.93 0.008 Oullim Information Technology 3.36 0.002 – – 1.21 0.003 4.57 0.002 Outcome 4.50 0.003 0.50 0.001 – – 5.00 0.002 P2 Energy Solutions 8.82 0.007 – – – – 8.82 0.003 Panda Security 42.43 0.032 104.41 0.116 2.32 0.006 149.15 0.057 Panorama Software 28.73 0.021 28.73 0.032 – – 57.46 0.022 Parallels 65.67 0.049 20.16 0.022 10.61 0.028 96.44 0.037 PartsRiver-Saqqara 13.03 0.010 1.45 0.002 – – 14.48 0.006 PassGo 17.38 0.013 5.40 0.006 0.70 0.002 23.49 0.009 Passlogix 19.88 0.015 2.98 0.003 1.99 0.005 24.85 0.009 Paychex 57.00 0.042 – – – – 57.00 0.022 PCI Enterprises 5.15 0.004 2.14 0.002 3.43 0.009 10.72 0.004 PDG Software Inc. 2.69 0.002 – – – – 2.69 0.001 PDS 4.50 0.003 – – – – 4.50 0.002 Pearson 12.50 0.009 3.13 0.003 – – 15.63 0.006 Pegasystems 53.43 0.040 21.37 0.024 7.40 0.020 82.20 0.031 PenSoft 11.66 0.009 – – – – 11.66 0.004 Penta Security Systems 0.00 0.000 – – 4.40 0.012 4.40 0.002 Penta Technologies 4.70 0.003 – – – – 4.70 0.002 Peopleclick 31.54 0.023 2.45 0.003 1.05 0.003 35.04 0.013 PeopleNet 4.44 0.003 – – – – 4.44 0.002 Perceptive Software 37.98 0.028 2.42 0.003 – – 40.40 0.015 Percussion Software 16.20 0.012 1.80 0.002 – – 18.00 0.007 Perfect Commerce 18.20 0.014 7.00 0.008 2.80 0.007 28.00 0.011 Perforce Software 34.94 0.026 9.22 0.010 1.94 0.005 46.10 0.018 Personal & Informatik AG – – 55.70 0.062 – – 55.70 0.021 Pervasive Software Inc. 24.80 0.018 8.14 0.009 5.84 0.015 38.78 0.015 PGP Corp. 42.03 0.031 16.47 0.018 2.50 0.007 61.00 0.023 Phase Forward 28.69 0.021 21.46 0.024 3.78 0.010 53.93 0.021 Pilat Technologies Intl. 0.74 0.001 3.66 0.004 – – 4.40 0.002 Pitney Bowes Distribution Solutions 263.01 0.195 69.01 0.077 33.98 0.090 366.00 0.139 Planisware 15.10 0.011 – – – – 15.10 0.006 Planview 34.49 0.026 14.71 0.016 – – 49.20 0.019

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Plateau Systems Ltd. 12.00 0.009 3.00 0.003 – – 15.00 0.006 Platform Computing 37.81 0.028 13.65 0.015 11.14 0.029 62.60 0.024 Plus Technologies 9.39 0.007 2.47 0.003 0.49 0.001 12.36 0.005 Poet Software Corp. 1.53 0.001 1.02 0.001 – – 2.56 0.001 Pointwise Inc. 9.49 0.007 – – – – 9.49 0.004 Polarlake 0.03 0.000 0.76 0.001 0.82 0.002 1.61 0.001 Portrait Software 3.33 0.002 12.46 0.014 0.88 0.002 16.67 0.006 PowerPlan Corp. 3.77 0.003 0.71 0.001 0.24 0.001 4.71 0.002 Practique – – 6.12 0.007 – – 6.12 0.002 Premier Data Services 5.97 0.004 0.66 0.001 – – 6.63 0.003 Prescient Systems 7.41 0.006 0.39 0.000 – – 7.80 0.003 Previsor 10.94 0.008 – – – – 10.94 0.004 Primavera Systems Inc. 95.86 0.071 35.10 0.039 4.04 0.011 135.00 0.051 Princeton Financial Sys. Inc. 37.60 0.028 7.05 0.008 2.35 0.006 47.00 0.018 PrismTech 9.63 0.007 9.63 0.011 1.23 0.003 20.50 0.008 proALPHA Software AG 0.82 0.001 31.79 0.035 – – 32.60 0.012 Procurestaff 5.08 0.004 1.27 0.001 – – 6.35 0.002 Prodacapo – – 3.27 0.004 – – 3.27 0.001 ProfitLine 4.64 0.003 – – – – 4.64 0.002 Progress Software Corp. 249.56 0.185 173.35 0.192 18.66 0.049 441.57 0.168 Prolifics 15.16 0.011 10.10 0.011 – – 25.26 0.010 Promantek 3.28 0.002 – – – – 3.28 0.001 ProQuest 6.09 0.005 – – – – 6.09 0.002 PROS Pricing Solutions 19.35 0.014 17.20 0.019 6.45 0.017 43.01 0.016 ProVantage Software Inc. 3.43 0.003 – – – – 3.43 0.001 Psipenta Software Systems GmbH – – 40.54 0.045 0.86 0.002 41.40 0.016 PSSOFT 0.81 0.001 6.94 0.008 0.41 0.001 8.16 0.003 PTC 272.68 0.202 259.98 0.288 171.34 0.452 704.00 0.268 PurchasingNet Inc. 23.00 0.017 – – – – 23.00 0.009 QAD Inc. 90.98 0.068 56.91 0.063 41.81 0.110 189.70 0.072 QlikTech 20.71 0.015 45.98 0.051 3.51 0.009 70.20 0.027 Qlusters 5.77 0.004 2.47 0.003 – – 8.24 0.003 Quadramed 100.51 0.075 0.99 0.001 – – 101.50 0.039

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Quadrem 22.00 0.016 10.00 0.011 8.00 0.021 40.00 0.015 Quality Corp. 11.59 0.009 – – 15.31 0.040 26.91 0.010 Qualys 25.61 0.019 13.79 0.015 – – 39.40 0.015 Quantum 45.16 0.034 20.78 0.023 1.11 0.003 67.06 0.026 Quest Software 474.59 0.352 135.04 0.150 21.35 0.056 630.98 0.240 Quick Address Software 106.86 0.079 7.29 0.008 7.29 0.019 121.44 0.046 QuickArrow 8.36 0.006 – – – – 8.36 0.003 RadiSys Corp. 2.68 0.002 1.53 0.002 1.89 0.005 6.10 0.002 RadView Software 3.27 0.002 1.24 0.001 0.09 0.000 4.60 0.002 RainMaker Software 2.61 0.002 – – – – 2.61 0.001 Ramco Systems 3.50 0.003 – – 1.38 0.004 4.88 0.002 Rapt 10.00 0.007 – – – – 10.00 0.004 Ravenflow 0.55 0.000 – – – – 0.55 0.000 Raxco 5.05 0.004 1.56 0.002 0.49 0.001 7.10 0.003 ReadSoft 11.57 0.009 41.03 0.046 – – 52.60 0.020 Realization Technologies 11.50 0.009 4.11 0.005 0.82 0.002 16.43 0.006 RealNetworks Inc. 60.80 0.045 20.26 0.022 – – 81.06 0.031 Real-Time Innovations 6.40 0.005 – – – – 6.40 0.002 Red Flag Software Co. Ltd. – – – – 4.25 0.011 4.25 0.002 Red Hat Inc. 247.51 0.184 113.82 0.126 62.57 0.165 423.90 0.161 RedEye – – 2.96 0.003 – – 2.96 0.001 RedPrairie Corp. 24.92 0.019 3.78 0.004 – – 28.70 0.011 Redwood 20.20 0.015 13.92 0.015 0.67 0.002 34.80 0.013 Refresh Software 3.94 0.003 0.21 0.000 – – 4.15 0.002 Replicon 8.77 0.007 1.42 0.002 0.77 0.002 10.96 0.004 Repliweb 9.50 0.007 – – – – 9.50 0.004 Research In Motion 142.01 0.105 34.44 0.038 7.74 0.020 184.18 0.070 Resonate Inc. 6.59 0.005 0.43 0.000 0.22 0.001 7.24 0.003 Responsys 14.84 0.011 – – – – 14.84 0.006 Reval 11.00 0.008 – – – – 11.00 0.004 Revionics 9.00 0.007 – – – – 9.00 0.003 Reynolds & Reynolds 541.98 0.402 – – – – 541.98 0.206 RightNow Technologies Inc. 62.02 0.046 19.14 0.021 5.84 0.015 87.00 0.033

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Roadmap Technologies Inc. 2.46 0.002 0.27 0.000 – – 2.73 0.001 Rocket Software 34.67 0.026 19.29 0.021 6.34 0.017 60.30 0.023 S1 61.08 0.045 15.03 0.017 1.69 0.004 77.80 0.030 SABA 54.74 0.041 15.07 0.017 5.08 0.013 74.90 0.029 SafeNet Inc. 143.15 0.106 43.99 0.049 9.84 0.026 196.98 0.075 Sage Group 951.81 0.707 1,167.06 1.295 52.64 0.139 2,171.50 0.827 Salesforce.com 448.40 0.333 110.90 0.123 56.80 0.150 616.10 0.234 Sand Technology 2.09 0.002 4.31 0.005 – – 6.40 0.002 SAP 3,467.02 2.575 5,450.85 6.046 1,269.73 3.349 10,187.60 3.878 Sapiens USA Inc. 4.33 0.003 10.59 0.012 1.79 0.005 16.70 0.006 SAS 847.52 0.629 896.62 0.995 212.86 0.561 1,957.00 0.745 Savvion 18.48 0.014 2.90 0.003 5.02 0.013 26.40 0.010 ScheduleSoft 4.16 0.003 – – – – 4.16 0.002 SciQuest 6.63 0.005 – – – – 6.63 0.003 SDL International 42.48 0.032 34.31 0.038 4.90 0.013 81.70 0.031 SDL Tridion 9.45 0.007 21.42 0.024 0.63 0.002 31.50 0.012 Secure Computing Corp. 34.81 0.026 13.19 0.015 11.95 0.032 59.95 0.023 Sedona Corp. 0.65 0.000 0.07 0.000 – – 0.72 0.000 Seeburger 18.24 0.014 73.91 0.082 2.85 0.008 95.00 0.036 SEEC Inc. 1.44 0.001 0.16 0.000 0.69 0.002 2.28 0.001 Selectica Inc. 7.73 0.006 0.37 0.000 0.22 0.001 8.32 0.003 Selligent 0.27 0.000 13.43 0.015 – – 13.71 0.005 Sendmail 20.09 0.015 14.76 0.016 6.15 0.016 41.00 0.016 Sentillion 18.78 0.014 0.38 0.000 – – 19.17 0.007 SERENA Software 169.58 0.126 77.33 0.086 10.48 0.028 257.40 0.098 ServiceBench 6.45 0.005 – – – – 6.45 0.002 Servigistics 11.15 0.008 3.23 0.004 1.78 0.005 16.16 0.006 SEVEN Networks Inc. 4.89 0.004 9.48 0.011 6.98 0.018 21.35 0.008 Shavlik 24.70 0.018 13.30 0.015 – – 38.00 0.014 SHL Group 4.84 0.004 33.00 0.037 6.16 0.016 44.00 0.017 Siemens 1,484.69 1.103 1,714.55 1.902 608.32 1.604 3,807.57 1.449 Sightline Systems 4.30 0.003 3.36 0.004 0.15 0.000 7.81 0.003 Silicon Graphics 28.22 0.021 9.27 0.010 5.21 0.014 42.70 0.016

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) SilkRoad 13.13 0.010 – – – – 13.13 0.005 Silver Net Computer Systems Ltd. – – 4.84 0.005 – – 4.84 0.002 Silvon Software 9.45 0.007 1.77 0.002 0.58 0.002 11.80 0.004 SimCorp 7.19 0.005 122.15 0.135 14.37 0.038 143.70 0.055 Siperian Inc. 20.00 0.015 – – – – 20.00 0.008 Sitescape 10.50 0.008 3.75 0.004 0.75 0.002 15.00 0.006 SkillSoft 100.20 0.074 15.60 0.017 4.20 0.011 120.00 0.046 Skybox Security 4.28 0.003 4.28 0.005 0.95 0.003 9.50 0.004 Skywire 85.72 0.064 9.32 0.010 0.09 0.000 95.14 0.036 SmartOps Corp. 4.42 0.003 3.42 0.004 1.06 0.003 8.89 0.003 SmartSignal Corp. 16.65 0.012 1.85 0.002 – – 18.50 0.007 SmartSoftware Inc. 3.22 0.002 – – – – 3.22 0.001 Smartstream 17.67 0.013 26.51 0.029 14.73 0.039 58.90 0.022 Smyth Systems 7.27 0.005 – – – – 7.27 0.003 SOA Software Inc. 23.36 0.017 4.38 0.005 1.46 0.004 29.20 0.011 Softbrain Co. Ltd. – – – – 20.65 0.054 20.65 0.008 Softbrands 44.25 0.033 24.52 0.027 10.33 0.027 79.10 0.030 SofTech Inc. 1.60 0.001 1.56 0.002 0.84 0.002 4.00 0.002 SoftM Software und Beratung AG – – 28.20 0.031 – – 28.20 0.011 Soft-Power Corp. 6.42 0.005 – – 2.56 0.007 8.97 0.003 SoftRun 0.02 0.000 – – 9.68 0.026 9.70 0.004 Softscape 11.19 0.008 4.84 0.005 0.67 0.002 16.70 0.006 Software AG 299.00 0.222 342.37 0.380 59.22 0.156 700.60 0.267 Software Eng. of America 40.32 0.030 15.36 0.017 3.36 0.009 59.04 0.022 Software Innovation ASA – – 28.80 0.032 – – 28.80 0.011 Solid Information Technology 5.90 0.004 7.21 0.008 – – 13.11 0.005 Solipsis 0.85 0.001 4.20 0.005 0.05 0.000 5.10 0.002 SolutionsIQ 3.43 0.003 0.24 0.000 0.11 0.000 3.78 0.001 SonicRecruit 5.00 0.004 – – – – 5.00 0.002 Sopheon 4.81 0.004 3.39 0.004 0.01 0.000 8.20 0.003 Sophis 2.13 0.002 9.61 0.011 9.61 0.025 21.35 0.008 Sophos 54.21 0.040 97.82 0.109 29.12 0.077 181.15 0.069 Spectrum 10.00 0.007 – – – – 10.00 0.004

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) SpringSource 2.36 0.002 0.26 0.000 – – 2.62 0.001 SPS Commerce 24.03 0.018 2.67 0.003 – – 26.70 0.010 SPSS 108.58 0.081 116.72 0.129 37.00 0.098 262.30 0.100 SS&C Technologies 116.03 0.086 28.86 0.032 3.11 0.008 148.00 0.056 SSH Communications Security 14.36 0.011 3.69 0.004 1.36 0.004 19.40 0.007 STAR AG 0.45 0.000 4.31 0.005 0.90 0.002 5.66 0.002 SteelEye Technology Inc. (SIOS) 3.01 0.002 2.58 0.003 3.01 0.008 8.60 0.003 StepStone 2.09 0.002 44.22 0.049 0.19 0.000 46.50 0.018 Sterling Commerce 395.33 0.294 87.26 0.097 18.21 0.048 500.80 0.191 StoneSoft Corp. 1.25 0.001 6.03 0.007 0.55 0.001 7.84 0.003 StrataGen Systems Inc. 3.98 0.003 2.71 0.003 0.58 0.002 7.27 0.003 Stratature Inc. 2.73 0.002 – – – – 2.73 0.001 Streambase 6.50 0.005 – – – – 6.50 0.002 StreamServe Inc. 8.80 0.007 35.20 0.039 – – 44.00 0.017 StrikeIron Inc. 0.96 0.001 0.11 0.000 – – 1.06 0.000 Successfactors 28.81 0.021 9.89 0.011 4.30 0.011 43.00 0.016 Sumisho Computer Systems Corp. 7.59 0.006 – – 35.02 0.092 42.60 0.016 SumTotal 74.31 0.055 10.48 0.012 2.52 0.007 87.30 0.033 Sun Microsystems 846.41 0.629 700.46 0.777 252.60 0.666 1,799.48 0.685 SunGard 1,115.07 0.828 243.62 0.270 93.72 0.247 1,452.41 0.553 SuperOffice ASA 0.64 0.000 41.86 0.046 0.30 0.001 42.80 0.016 Supplychain Connect 3.97 0.003 – – – – 3.97 0.002 SupplyOn 8.55 0.006 9.50 0.011 0.95 0.003 19.00 0.007 SupportSoft 42.54 0.032 5.26 0.006 – – 47.80 0.018 Sweda 9.32 0.007 – – – – 9.32 0.004 SWIFT 106.95 0.079 454.04 0.504 49.02 0.129 610.00 0.232 Swisslog 43.16 0.032 73.04 0.081 15.40 0.041 131.60 0.050 Sybase 513.27 0.381 297.01 0.329 101.42 0.267 911.70 0.347 Symantec 3,100.79 2.303 1,551.03 1.720 796.32 2.100 5,448.14 2.074 Syncsort 37.59 0.028 7.67 0.009 2.10 0.006 47.36 0.018 Synopsys 615.88 0.457 179.69 0.199 357.43 0.943 1,153.00 0.439 Synygy 36.54 0.027 4.20 0.005 1.26 0.003 42.00 0.016 Sysload Software 0.16 0.000 6.92 0.008 0.03 0.000 7.10 0.003

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Syspro 5.90 0.004 10.62 0.012 7.08 0.019 23.60 0.009 Systar SA 6.26 0.005 16.92 0.019 – – 23.17 0.009 Systran SA 5.83 0.004 4.87 0.005 – – 10.70 0.004 Tagetik – – 11.57 0.013 – – 11.57 0.004 Take Solutions (ClearOrbit) 9.66 0.007 2.42 0.003 – – 12.08 0.005 Taleo 102.92 0.076 1.05 0.001 0.63 0.002 104.60 0.040 Targit 1.60 0.001 7.81 0.009 – – 9.40 0.004 Tavant Technologies 12.36 0.009 – – – – 12.36 0.005 Tealeaf Technology 5.00 0.004 – – – – 5.00 0.002 Teamquest Corp. 16.31 0.012 2.54 0.003 0.78 0.002 19.63 0.007 Tecsys Inc. 12.64 0.009 0.13 0.000 – – 12.77 0.005 TEDS 13.00 0.010 1.09 0.001 – – 14.10 0.005 TekSoft Inc. 2.61 0.002 1.32 0.001 0.12 0.000 4.05 0.002 Telelogic AB 81.28 0.060 100.71 0.112 29.61 0.078 211.60 0.081 Temenos 38.25 0.028 146.25 0.162 40.50 0.107 225.00 0.086 Tenrox 20.00 0.015 – – – – 20.00 0.008 Teradata 476.29 0.354 183.80 0.204 75.41 0.199 735.50 0.280 The SCO Group Inc. 8.66 0.006 5.98 0.007 1.76 0.005 16.40 0.006 Think3 1.53 0.001 26.94 0.030 2.14 0.006 30.61 0.012 Thomson Reuters 159.05 0.118 21.12 0.023 1.67 0.004 181.83 0.069 TIBCO Inc. 238.50 0.177 205.27 0.228 35.83 0.095 479.60 0.183 Tibersoft 3.97 0.003 – – – – 3.97 0.002 Tidal Software Inc. 26.85 0.020 3.05 0.003 0.61 0.002 30.52 0.012 TigerLogic 13.02 0.010 5.58 0.006 – – 18.60 0.007 Timecentre 18.00 0.013 – – – – 18.00 0.007 Tmax Soft 0.05 0.000 – – 40.27 0.106 40.31 0.015 Tomax Corp. 37.09 0.028 – – – – 37.09 0.014 ToolsGroup 5.00 0.004 4.09 0.005 – – 9.09 0.003 Top Image Systems 6.83 0.005 12.68 0.014 – – 19.50 0.007 Toshiba Solutions Corp. 2.11 0.002 – – 10.33 0.027 12.44 0.005 TOTVS 85.33 0.063 0.23 0.000 – – 85.57 0.033 Touchpaper Software 1.62 0.001 19.58 0.022 1.84 0.005 23.03 0.009 Touchstone Software 2.40 0.002 – – – – 2.40 0.001

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) TOWER Software 5.49 0.004 14.06 0.016 14.75 0.039 34.30 0.013 Tradebeam 15.48 0.011 5.96 0.007 2.38 0.006 23.82 0.009 TRADEPAQ Corp. 8.42 0.006 – – – – 8.42 0.003 Transware 5.97 0.004 0.45 0.000 – – 6.41 0.002 Trend Micro 234.40 0.174 206.10 0.229 385.50 1.017 826.00 0.314 Trillium Software 25.00 0.019 28.68 0.032 0.71 0.002 54.39 0.021 Trintech Group PLC 8.14 0.006 7.63 0.008 0.83 0.002 16.60 0.006 Triple Point Technology 14.70 0.011 5.46 0.006 0.84 0.002 21.00 0.008 Tripwire Inc. 34.69 0.026 2.89 0.003 3.72 0.010 41.30 0.016 True Commerce 7.30 0.005 – – – – 7.30 0.003 TSS 0.97 0.001 0.28 0.000 0.14 0.000 1.38 0.001 Tumbleweed Communication Inc. 51.43 0.038 2.64 0.003 0.93 0.002 55.00 0.021 Turbolinux Inc. 0.25 0.000 0.08 0.000 8.03 0.021 8.36 0.003 TXT e-Solutions 0.63 0.000 11.98 0.013 – – 12.61 0.005 Tyler Technologies 130.90 0.097 – – – – 130.90 0.050 UC4 26.06 0.019 28.58 0.032 0.26 0.001 54.90 0.021 UFIDA 2.17 0.002 – – 81.01 0.214 83.18 0.032 Ultimate Software 100.64 0.075 0.86 0.001 – – 101.50 0.039 Ultimus 5.80 0.004 6.30 0.007 1.20 0.003 13.30 0.005 Unanet Technologies 2.97 0.002 – – – – 2.97 0.001 Unica Corp. 64.19 0.048 22.84 0.025 1.91 0.005 88.93 0.034 Unicorn HRO 13.00 0.010 – – – – 13.00 0.005 UNIFY Corp. 7.05 0.005 6.75 0.007 1.20 0.003 15.00 0.006 Unisys 244.74 0.182 182.89 0.203 33.08 0.087 460.72 0.175 Unit4 Agresso NV 8.12 0.006 262.68 0.291 – – 270.80 0.103 Unitime 6.41 0.005 – – – – 6.41 0.002 update software AG – – 29.50 0.033 – – 29.50 0.011 UPS Logistics Technologies 38.03 0.028 – – – – 38.03 0.014 Upsidesoft 9.28 0.007 1.64 0.002 – – 10.92 0.004 Utimaco Safeware AG 11.06 0.008 41.46 0.046 2.76 0.007 55.28 0.021 Vasco 7.54 0.006 15.07 0.017 2.51 0.007 25.12 0.010 Vcampus 4.00 0.003 1.00 0.001 – – 5.00 0.002 VCG 5.84 0.004 0.39 0.000 0.33 0.001 6.57 0.002

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Vector Networks Ltd. 1.36 0.001 1.84 0.002 0.05 0.000 3.25 0.001 Vendavo 5.00 0.004 5.00 0.006 – – 10.00 0.004 Ventyx 98.49 0.073 18.41 0.020 3.20 0.008 120.10 0.046 Verint Systems 247.32 0.184 174.04 0.193 36.64 0.097 458.00 0.174 VeriSign Inc. 163.89 0.122 62.60 0.069 33.51 0.088 260.00 0.099 Versant 15.41 0.011 6.52 0.007 1.37 0.004 23.30 0.009 Versata 59.67 0.044 26.72 0.030 4.77 0.013 91.15 0.035 Versys 2.70 0.002 0.19 0.000 – – 2.89 0.001 Vertex Inc. 10.00 0.007 – – – – 10.00 0.004 ViaPeople 2.19 0.002 – – – – 2.19 0.001 Viewpoint Construction Software 6.16 0.005 – – – – 6.16 0.002 Vignette 90.36 0.067 38.34 0.043 9.70 0.026 138.40 0.053 ViryaNet Ltd. 3.27 0.002 0.52 0.001 0.20 0.001 3.99 0.002 Visibility 3.71 0.003 1.43 0.002 0.57 0.002 5.70 0.002 Visible Systems Corp. 4.20 0.003 0.81 0.001 0.26 0.001 5.27 0.002 Vision Solutions Inc. 50.89 0.038 30.47 0.034 11.39 0.030 92.75 0.035 VisionWare 1.78 0.001 7.13 0.008 – – 8.92 0.003 Visiprise 2.46 0.002 1.06 0.001 – – 3.52 0.001 Visma ASA – – 198.20 0.220 – – 198.20 0.075 Visto 22.92 0.017 0.47 0.001 0.47 0.001 23.87 0.009 Visual Numerics Inc. 51.69 0.038 18.51 0.021 5.71 0.015 75.91 0.029 Visual Sciences 64.59 0.048 10.51 0.012 – – 75.10 0.029 Vitria Technology Inc. 25.83 0.019 10.25 0.011 4.92 0.013 41.00 0.016 Vivendi 554.97 0.412 474.04 0.526 127.18 0.335 1,156.19 0.440 Vivisimo 13.90 0.010 1.54 0.002 – – 15.44 0.006 VMware Inc. 770.01 0.572 346.50 0.384 166.83 0.440 1,283.35 0.488 Vurv Technology 16.00 0.012 2.40 0.003 1.60 0.004 20.00 0.008 Wall Street Systems 17.74 0.013 56.32 0.062 0.73 0.002 74.80 0.028 WatchGuard 12.25 0.009 5.25 0.006 – – 17.50 0.007 Wavelink Corp. 13.50 0.010 7.40 0.008 0.87 0.002 21.76 0.008 WebLayers Inc. 5.00 0.004 – – – – 5.00 0.002 Webroot 92.18 0.068 17.56 0.019 – – 109.73 0.042 Websense 196.51 0.146 80.23 0.089 35.39 0.093 312.13 0.119

Worldwide Packaged Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Webspy 1.22 0.001 – – 1.25 0.003 2.46 0.001 WebTrends 54.96 0.041 22.96 0.025 2.08 0.005 80.00 0.030 Win Estimator Inc. 10.00 0.007 – – – – 10.00 0.004 Wizart 0.92 0.001 3.22 0.004 0.46 0.001 4.60 0.002 WorkForce Software 10.39 0.008 – – – – 10.39 0.004 Works Applications Co. Ltd. 17.48 0.013 – – 73.01 0.193 90.48 0.034 Workscape 30.00 0.022 – – – – 30.00 0.011 Workstream 26.00 0.019 – – – – 26.00 0.010 Xenos 9.10 0.007 4.20 0.005 0.70 0.002 14.00 0.005 Xpriori 1.16 0.001 0.58 0.001 0.58 0.002 2.32 0.001 xTuple 4.25 0.003 – – – – 4.25 0.002 Yahoo! (Zimbra) 71.25 0.053 3.75 0.004 – – 75.00 0.029 Yardi 40.99 0.030 10.51 0.012 1.05 0.003 52.55 0.020 Yasutech 0.59 0.000 – – 2.36 0.006 2.95 0.001 Yosemite Technologies 12.31 0.009 0.14 0.000 0.59 0.002 13.04 0.005 Zilliant Inc. 5.51 0.004 – – – – 5.51 0.002 Zycus 6.09 0.005 – – – – 6.09 0.002 ZyLAB North America LLC 3.20 0.002 11.20 0.012 1.60 0.004 16.00 0.006 Subtotal 111,968.87 83.147 74,509.68 82.650 32,248.24 85.051 218,726.79 83.251 Other 22,695.06 16.853 15,640.74 17.350 5,668.01 14.949 44,003.80 16.749 Total 134,663.92 100.000 90,150.42 100.000 37,916.25 100.000 262,730.59 100.000

Source: IDC, 2008

TABLE 5

Worldwide Application Development and Deployment Software Revenue by Top 50 Vendors, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank IBM 9,098 10,039 11,315 12.7 18.79 1 Oracle 7,659 9,091 10,472 15.2 17.38 2 Microsoft 5,252 6,106 6,741 10.4 11.19 3 SAS 1,133 1,270 1,432 12.7 2.38 4 CA 1,474 1,378 1,370 -0.6 2.27 5 Business Objects 952 1,026 1,131 10.3 1.88 6 BEA 938 1,043 1,121 7.4 1.86 7 HP 861 925 964 4.2 1.60 8 Sybase 705 789 842 6.7 1.40 9 Cognos 603 660 728 10.2 1.21 10 Software AG 543 599 701 17.0 1.16 11 SAP 284 368 682 85.2 1.13 12 Teradata 542 558 630 12.9 1.05 13 SWIFT 532 569 610 7.2 1.01 14 Fujitsu 634 622 603 -3.0 1.00 15 Intergraph 449 496 581 17.0 0.96 16 ESRI 465 516 570 10.5 0.95 17 Adobe 431 455 544 19.6 0.90 18 Compuware 540 530 508 -4.0 0.84 19 TIBCO Inc. 361 411 459 11.8 0.76 20 Autodesk 319 386 442 14.5 0.73 21 Progress Software Corp. 376 397 427 7.6 0.71 22 BMC 394 401 410 2.3 0.68 23 Sterling Commerce 359 388 405 4.4 0.67 24 GXS 400 390 390 0.0 0.65 25 Hitachi 382 374 389 4.1 0.65 26 Quest Software 246 293 331 12.7 0.55 27 Informatica 258 285 325 14.1 0.54 28 Sun Microsystems 298 318 308 -3.0 0.51 29 ACI Worldwide 261 281 279 -0.4 0.46 30 Pitney Bowes Distribution Solutions 253 263 278 5.7 0.46 31 MicroStrategy 216 250 266 6.6 0.44 32 Information Builders Inc. 250 250 255 2.0 0.42 33 SERENA Software 225 221 243 9.7 0.40 34 SPSS 176 198 226 14.4 0.38 35 Micro Focus 152 163 214 30.7 0.35 36 Telelogic AB 145 171 212 23.4 0.35 37 InterSystems Corp. 170 200 211 5.4 0.35 38 Borland Software Corp. 180 207 192 -7.5 0.32 39 Siemens 150 167 191 14.5 0.32 40 Inovis 147 135 135 0.0 0.22 41 Axway 85 110 127 15.9 0.21 42 ILOG Inc. 101 112 124 11.0 0.21 43 NEC 130 120 124 2.9 0.21 44 Apple 114 119 123 3.3 0.20 45 Quick Address Software 99 110 121 10.4 0.20 46

Worldwide Application Development and Deployment Software Revenue by Top 50 Vendors, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Unisys 136 124 119 -4.7 0.20 47 Actuate Corp. 90 99 111 12.5 0.18 48 IDS Scheer AG 56 78 108 38.6 0.18 49 ASG 83 88 99 12.1 0.16 50 Subtotal 39,706 44,150 49,189 11.4 81.66 Other 8,725 9,755 11,047 13.2 18.34 Total 48,431 53,905 60,236 11.7 100.00

Source: IDC, 2008

TABLE 6

Worldwide Application Development and Deployment Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank 29West – – 2 NA 0.003 234 4D Inc. 33 35 38 6.1 0.062 87 Accellion 1 4 6 24.4 0.009 188 AccuRev 5 8 8 2.6 0.013 167 ACI Worldwide 261 281 279 -0.4 0.464 30 Active Endpoints Inc. 1 3 5 66.7 0.008 196 Actuate Corp. 90 99 111 12.5 0.184 48 Adobe 431 455 544 19.6 0.904 18 Advanced Visual Systems 10 11 13 13.9 0.021 137 Advizor Solutions 7 9 10 12.1 0.017 150 Aldon 15 16 18 9.8 0.030 111 Aleri – 1 3 500.0 0.005 215 Altova 11 11 12 6.6 0.020 140 ANGOSS Software International Ltd. 4 5 6 14.4 0.009 189 AOL/Mapquest 70 73 79 8.8 0.131 54 Aonix 7 7 7 5.8 0.012 171 Appfluent Inc. 5 5 7 60.0 0.012 173 APPGEN Business Software 0 0 0 4.8 0.000 252 Appian 18 20 25 25.0 0.042 102 Apple 114 119 123 3.3 0.205 45 Applied Innovation Management 0 0 0 1.6 0.001 250 Applimation 18 25 40 60.0 0.066 81 AptSoft 3 5 6 20.0 0.010 187 Arcplan 24 26 29 11.0 0.048 94 Art Technology Group 1 1 1 29.3 0.002 245 ARTiSAN Software 6 8 9 11.8 0.015 158 Ascentn 2 4 11 181.3 0.019 144 ASG 83 88 99 12.1 0.164 50 Attachmate 35 38 42 10.3 0.070 78

Worldwide Application Development and Deployment Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Attunity 14 10 9 -7.9 0.015 154 Autodesk 319 386 442 14.5 0.734 21 Autonomy 3 5 7 40.0 0.012 174 Axway 85 110 127 15.9 0.211 42 B2 Systems Inc. 3 4 4 9.9 0.007 206 Backbase 3 5 5 6.5 0.008 195 BEA 938 1,043 1,121 7.4 1.861 7 Birdstep Technology 3 3 3 -6.7 0.005 218 Bison 9 10 9 -9.5 0.014 162 Blueprint 1 2 2 9.5 0.004 229 Bluespring Software 5 11 13 19.0 0.021 138 BMC 394 401 410 2.3 0.680 23 Borland Software Corp. 180 207 192 -7.5 0.319 39 Bottomline Technologies 1 2 2 47.5 0.004 225 BR Solutions 2 2 3 11.4 0.005 220 Bradmark Technologies Inc. 3 4 6 50.0 0.010 186 Business Objects 952 1,026 1,131 10.3 1.878 6 CA 1,474 1,378 1,370 -0.6 2.275 5 Cape Clear 16 20 28 35.6 0.046 96 Captaris Inc. 2 3 2 -6.1 0.004 226 Casewise 3 4 4 11.8 0.007 205 Cast Iron Systems 3 4 6 25.3 0.009 190 CDC Corp. 1 1 1 -13.3 0.002 244 Cincom Systems Inc. 38 48 43 -10.1 0.071 77 CODA 4 5 5 17.4 0.009 192 CodeGear 76 71 44 -37.9 0.073 76 Cognos 603 660 728 10.2 1.208 10 CollabNet 22 19 21 9.2 0.035 106 ComOps 0 0 1 31.3 0.001 248 ComponentOne 10 10 11 6.8 0.018 146 Composite Software 8 12 13 9.2 0.022 134 Computer Corp. of America (CCA) 18 18 16 -14.3 0.026 121 Compuware 540 530 508 -4.0 0.844 19 Coral8 – 1 3 500.0 0.005 214 Cordys – 5 6 20.4 0.010 183 Corticon 6 9 11 22.2 0.018 145 Coverity 7 8 9 10.9 0.015 157 Crossgate 9 18 22 27.3 0.037 105 Datawatch Corp. 14 13 14 5.9 0.024 126 db4objects 2 4 8 100.0 0.013 166 Easylink Services 79 74 74 0.0 0.123 56 Embarcadero Technologies 34 37 34 -8.2 0.056 90 EMC 4 4 5 16.2 0.008 201 Empirix 53 56 52 -6.5 0.087 68 Empress Software 38 41 45 11.1 0.075 74 ENEA 1 1 2 21.3 0.003 236 Enterworks 10 11 8 -32.1 0.013 169

Worldwide Application Development and Deployment Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank ESI 6 7 8 12.1 0.013 170 Esker Software 1 1 1 18.9 0.002 239 ESRI 465 516 570 10.5 0.946 17 Evolutionary Technologies 13 14 16 10.2 0.026 118 International Exact Holding NV 2 5 6 18.5 0.011 181 Exigen 4 5 5 0.6 0.009 191 Extol 10 11 12 5.7 0.019 141 Fair Isaac 53 61 70 15.5 0.117 59 FairCom Corp. 2 2 2 5.2 0.004 227 Fiorano Software Inc. 6 7 9 19.7 0.014 164 Firestar 4 5 5 9.4 0.008 194 Four Js Development Tools Inc. 13 15 16 5.2 0.027 117 Fujitsu 634 622 603 -3.0 1.002 15 Gemstone – 1 1 40.0 0.001 246 GigaSpaces 4 7 14 100.0 0.023 127 Global 360 37 76 92 19.6 0.152 52 Global IDs Inc. – – 1 NA 0.002 242 GoldenGate Inc. 33 45 52 17.3 0.087 67 Green Hills Software 22 21 21 -4.0 0.034 107 GT Software – 3 3 9.6 0.005 213 GXS 400 390 390 0.0 0.647 25 Haley 10 12 14 12.0 0.023 129 Halo Technology 2 3 3 6.7 0.004 222 Handysoft Corp. 12 13 17 33.6 0.029 113 Healthvision 50 64 74 16.2 0.123 57 Hit Software 3 3 3 12.0 0.005 219 Hitachi 382 374 389 4.1 0.647 26 HP 861 925 964 4.2 1.600 8 IBM 9,098 10,039 11,315 12.7 18.785 1 IDS Scheer AG 56 78 108 38.6 0.179 49 ILOG Inc. 101 112 124 11.0 0.206 43 I-Net Software 1 1 1 10.2 0.002 243 Infor 11 12 13 11.7 0.021 135 Informatica 258 285 325 14.1 0.540 28 Information Builders Inc. 250 250 255 2.0 0.423 33 Infragistics Corp. 29 25 31 27.3 0.052 93 Ingres Corp. 9 9 28 206.6 0.046 95 Initiate Systems Inc. 17 26 40 52.7 0.066 82 Innovations Software Technology 4 6 7 13.8 0.011 177 Inovis 147 135 135 0.0 0.224 41 InRule Technology 1 2 2 11.4 0.004 224 Insightful Corp. 16 17 16 -10.4 0.026 122 Intalio 3 3 4 18.7 0.006 208 Integrify 1 2 4 80.0 0.006 210 Intel Corp. 18 16 16 1.5 0.027 115 IntelliCorp Inc. 3 4 5 27.8 0.008 200

Worldwide Application Development and Deployment Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Interfacing Technologies 4 4 5 12.1 0.008 204 Intergraph 449 496 581 17.0 0.964 16 InterSystems Corp. 170 200 211 5.4 0.350 38 Iona 63 72 71 -1.5 0.118 58 iRise 6 12 13 9.6 0.021 136 Jacada 16 16 16 -1.7 0.026 119 JetBrains 10 9 9 -2.6 0.015 155 K2 15 31 32 3.2 0.053 92 Kabira 20 23 25 10.1 0.042 101 Kalido 13 15 16 11.4 0.027 116 Kapow Technologies 5 6 9 48.1 0.015 156 Kognitio 10 11 15 34.5 0.025 125 KXEN 7 8 11 28.9 0.018 149 Lawson Software 30 28 57 103.2 0.094 64 Leica Geosystems 48 55 60 9.2 0.100 61 Liaison 6 7 6 -10.4 0.010 185 LogicLibrary Inc. 2 4 5 31.1 0.008 198 LogiGear 1 1 1 10.9 0.002 240 Lombardi Software 12 38 54 41.1 0.089 66 M.B. Foster Associates 6 6 7 11.2 0.011 175 Macro 4 25 23 23 -2.7 0.038 104 Macrovision 39 40 45 12.1 0.075 75 Magic Software Enterprises Inc. 39 37 42 11.5 0.069 79 Mainsoft 10 11 11 5.1 0.019 143 Matisse 2 2 2 1.0 0.003 232 McCabe & Associates 7 8 9 10.2 0.014 163 Mega International 13 15 17 11.5 0.028 114 Mentor Graphics 22 24 25 3.5 0.042 99 MetaCase 6 7 8 10.6 0.013 168 Metastorm 34 43 49 14.2 0.081 70 Micro Focus 152 163 214 30.7 0.355 36 Microsoft 5,252 6,106 6,741 10.4 11.191 3 MicroStrategy 216 250 266 6.6 0.441 32 Mincom Ltd. 2 4 8 116.2 0.013 165 Mindreef Inc. 1 4 5 36.2 0.008 199 MKS 43 43 45 6.6 0.076 73 Modulant Inc. 8 10 10 9.4 0.017 151 MQSoftware 2 2 2 9.6 0.003 233 MySQL 16 34 38 10.9 0.063 86 NEC 130 120 124 2.9 0.206 44 Netezza Corp. 22 31 49 58.3 0.082 69 NetManage Inc. 12 13 14 4.4 0.023 130 Netron Inc. 16 17 17 5.6 0.029 112 Network Automation 2 3 3 27.0 0.006 212 Northgate Information Solutions PLC 5 5 6 15.4 0.010 184 Novell 6 4 2 -37.0 0.004 223 NuBridges 12 15 15 -2.6 0.025 124

Worldwide Application Development and Deployment Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Object Connections 2 3 3 12.4 0.005 216 ObjectFX 11 11 12 8.8 0.021 139 Objectivity Inc. 7 7 7 2.1 0.011 176 Open Text Corp. 43 32 32 0.1 0.054 91 OpenConnect Systems 9 10 11 7.4 0.018 147 Openjaw Technologies 2 2 2 11.9 0.004 231 OpenSpan – 1 4 500.0 0.006 209 Optio Software 3 3 3 11.6 0.006 211 Oracle 7,659 9,091 10,472 15.2 17.384 2 Panorama Software 23 38 57 52.0 0.095 63 Parallels 4 5 6 34.7 0.011 182 PassGo 3 4 – -100.0 – NA PCI Enterprises 9 10 11 10.2 0.018 148 Pegasystems 61 61 82 35.6 0.136 53 Perforce Software 33 41 46 11.9 0.077 71 Pervasive Software Inc. 47 40 39 -3.0 0.064 85 Pitney Bowes Distribution Solutions 253 263 278 5.7 0.462 31 Polarlake 1 1 2 19.1 0.003 237 Portrait Software 4 4 9 111.4 0.015 160 PrismTech 12 16 21 28.1 0.034 108 Progress Software Corp. 376 397 427 7.6 0.708 22 Prolifics 23 24 25 5.1 0.042 100 QlikTech 22 39 70 80.0 0.117 60 Quest Software 246 293 331 12.7 0.549 27 Quick Address Software 99 110 121 10.4 0.202 46 RadView Software 6 4 5 7.0 0.008 202 Ravenflow 0 1 1 9.4 0.001 247 Real-Time Innovations 3 5 6 39.1 0.011 179 Red Hat Inc. 24 27 35 29.6 0.058 89 Repliweb 5 8 10 13.1 0.016 152 Rocket Software 30 33 37 12.9 0.062 88 Sand Technology 4 5 6 30.3 0.011 180 SAP 284 368 682 85.2 1.133 12 Sapiens USA Inc. 19 16 16 -1.8 0.026 120 SAS 1,133 1,270 1,432 12.7 2.377 4 Savvion 13 21 26 24.5 0.044 98 Seeburger 53 76 95 25.0 0.158 51 SEEC Inc. 2 2 2 3.6 0.004 230 SERENA Software 225 221 243 9.7 0.403 34 Siemens 150 167 191 14.5 0.317 40 Silicon Graphics 19 13 11 -13.3 0.019 142 Siperian Inc. 6 10 20 100.0 0.033 109 Smartstream 28 54 59 8.1 0.098 62 SOA Software Inc. – 7 1 -81.9 0.002 238 Software AG 543 599 701 17.0 1.163 11 Software Eng. of America 0 0 0 2.1 0.000 251 Software Innovation ASA 3 3 5 39.4 0.008 203

Worldwide Application Development and Deployment Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Solid Information Technology 11 12 13 10.8 0.022 133 SolutionsIQ 3 3 4 9.4 0.006 207 SpringSource 2 2 2 5.4 0.003 235 SPS Commerce 14 22 27 24.2 0.044 97 SPSS 176 198 226 14.4 0.376 35 Sterling Commerce 359 388 405 4.4 0.672 24 Stratature Inc. – 2 3 9.4 0.005 221 Streambase – 1 7 550.0 0.011 178 StrikeIron Inc. – 1 1 6.4 0.002 241 Sun Microsystems 298 318 308 -3.0 0.511 29 SunGard 29 34 46 35.3 0.076 72 SWIFT 532 569 610 7.2 1.013 14 Sybase 705 789 842 6.7 1.398 9 Targit 8 9 9 10.1 0.016 153 Telelogic AB 145 171 212 23.4 0.351 37 Teradata 542 558 630 12.9 1.046 13 The SCO Group Inc. 1 1 0 -28.3 0.001 249 TIBCO Inc. 361 411 459 11.8 0.762 20 TigerLogic 21 19 19 -1.1 0.031 110 Tmax Soft 30 34 40 16.6 0.066 84 Trillium Software 46 49 54 10.9 0.090 65 True Commerce 6 7 7 10.6 0.012 172 Ultimus 15 16 13 -17.9 0.022 132 Unica Corp. 6 7 9 23.1 0.014 161 UNIFY Corp. 9 10 15 50.0 0.025 123 Unisys 136 124 119 -4.7 0.197 47 Versant 16 18 23 33.1 0.039 103 Versata 12 13 13 5.0 0.022 131 Visible Systems Corp. 4 5 5 10.2 0.009 193 Vision Solutions Inc. 34 37 40 8.9 0.066 83 VisionWare 3 8 9 11.5 0.015 159 Visual Numerics Inc. 66 71 76 7.5 0.126 55 Vitria Technology Inc. 33 39 41 4.6 0.068 80 WebLayers Inc. 1 3 5 66.7 0.008 197 Xenos – 12 14 12.9 0.023 128 Xpriori 2 2 2 3.6 0.004 228 Yasutech 2 3 3 12.3 0.005 217 Subtotal 42,415 47,338 52,862 11.7 87.758 Other 6,015 6,567 7,374 12.3 12.242 Total 48,431 53,905 60,236 11.7 100.000

Source: IDC, 2008

TABLE 7

Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) 29West 2.00 0.007 – – – – 2.00 0.003 4D Inc. 11.55 0.039 24.44 0.112 1.52 0.018 37.50 0.062 Accellion 5.60 0.019 – – – – 5.60 0.009 AccuRev 6.41 0.021 0.95 0.004 0.44 0.005 7.80 0.013 ACI Worldwide 148.03 0.494 103.90 0.478 27.37 0.322 279.30 0.464 Active Endpoints Inc. 3.75 0.013 1.25 0.006 – – 5.00 0.008 Actuate Corp. 76.48 0.255 26.75 0.123 7.77 0.091 111.00 0.184 Adobe 261.31 0.871 179.65 0.826 103.44 1.218 544.40 0.904 Advanced Visual Systems 7.16 0.024 4.15 0.019 1.26 0.015 12.57 0.021 Advizor Solutions 8.91 0.030 1.57 0.007 – – 10.48 0.017 Aldon 11.80 0.039 4.94 0.023 1.16 0.014 17.90 0.030 Aleri 1.20 0.004 1.50 0.007 0.30 0.004 3.00 0.005 Altova 6.06 0.020 4.84 0.022 1.21 0.014 12.11 0.020 ANGOSS Software International Ltd. 5.00 0.017 0.56 0.003 – – 5.56 0.009 AOL/Mapquest 70.99 0.237 7.89 0.036 – – 78.88 0.131 Aonix 2.92 0.010 4.31 0.020 0.07 0.001 7.30 0.012 Appfluent Inc. 7.20 0.024 – – – – 7.20 0.012 APPGEN Business Software 0.05 0.000 0.00 0.000 – – 0.05 0.000 Appian 22.50 0.075 1.25 0.006 1.25 0.015 25.00 0.042 Apple 78.28 0.261 27.37 0.126 17.65 0.208 123.30 0.205 Applied Innovation Management 0.38 0.001 0.01 0.000 0.02 0.000 0.41 0.001 Applimation 28.00 0.093 11.20 0.051 0.80 0.009 40.00 0.066 AptSoft 6.00 0.020 – – – – 6.00 0.010 Arcplan 12.46 0.042 13.92 0.064 2.62 0.031 29.00 0.048 Art Technology Group 0.70 0.002 0.21 0.001 0.00 0.000 0.91 0.002 ARTiSAN Software 3.61 0.012 4.97 0.023 0.45 0.005 9.03 0.015 Ascentn 11.25 0.038 – – – – 11.25 0.019 ASG 70.66 0.236 25.83 0.119 2.47 0.029 98.96 0.164 Attachmate 25.67 0.086 14.32 0.066 1.95 0.023 41.94 0.070 Attunity 5.67 0.019 2.98 0.014 0.65 0.008 9.30 0.015 Autodesk 163.65 0.546 178.25 0.819 100.40 1.182 442.30 0.734 Autonomy 4.90 0.016 2.10 0.010 – – 7.00 0.012

Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Axway 26.67 0.089 97.79 0.450 2.54 0.030 127.00 0.211 B2 Systems Inc. 3.17 0.011 0.79 0.004 – – 3.96 0.007 Backbase 2.00 0.007 3.00 0.014 – – 5.00 0.008 BEA 553.62 1.846 386.47 1.777 180.88 2.129 1,120.97 1.861 Birdstep Technology 1.93 0.006 0.87 0.004 – – 2.80 0.005 Bison – – 8.60 0.040 – – 8.60 0.014 Blueprint 2.07 0.007 0.18 0.001 0.05 0.001 2.30 0.004 Bluespring Software 12.50 0.042 – – – – 12.50 0.021 BMC 220.15 0.734 159.46 0.733 30.09 0.354 409.70 0.680 Borland Software Corp. 120.53 0.402 53.10 0.244 18.27 0.215 191.90 0.319 Bottomline Technologies 1.34 0.004 1.06 0.005 0.04 0.000 2.44 0.004 BR Solutions 2.77 0.009 – – – – 2.77 0.005 Bradmark Technologies Inc. 5.19 0.017 0.75 0.003 0.06 0.001 6.00 0.010 Business Objects 600.18 2.001 441.61 2.030 89.21 1.050 1,131.00 1.878 CA 808.05 2.695 460.53 2.117 101.62 1.196 1,370.20 2.275 Cape Clear 16.68 0.056 11.12 0.051 – – 27.80 0.046 Captaris Inc. 2.44 0.008 – – – – 2.44 0.004 Casewise 1.74 0.006 2.61 0.012 – – 4.35 0.007 Cast Iron Systems 4.41 0.015 0.83 0.004 0.28 0.003 5.51 0.009 CDC Corp. 0.84 0.003 0.09 0.000 – – 0.94 0.002 Cincom Systems Inc. 17.93 0.060 18.79 0.086 5.98 0.070 42.70 0.071 CODA 0.81 0.003 4.48 0.021 0.11 0.001 5.40 0.009 CodeGear 23.16 0.077 14.29 0.066 6.75 0.079 44.20 0.073 Cognos 408.03 1.361 252.06 1.159 67.60 0.796 727.70 1.208 CollabNet 16.88 0.056 3.64 0.017 0.39 0.005 20.90 0.035 ComOps – – – – 0.53 0.006 0.53 0.001 Component-One 6.10 0.020 3.33 0.015 1.66 0.020 11.10 0.018 Composite Software 12.45 0.042 0.66 0.003 – – 13.10 0.022 Computer Corp. of America (CCA) 13.03 0.043 2.53 0.012 – – 15.56 0.026 Compuware 305.70 1.019 162.69 0.748 40.11 0.472 508.50 0.844 Coral8 3.00 0.010 – – – – 3.00 0.005 Cordys 0.60 0.002 4.82 0.022 0.60 0.007 6.02 0.010 Corticon 9.12 0.030 1.11 0.005 0.89 0.010 11.12 0.018

Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Coverity 9.16 0.031 – – – – 9.16 0.015 Crossgate 3.36 0.011 19.04 0.088 – – 22.40 0.037 Datawatch Corp. 10.31 0.034 3.99 0.018 – – 14.30 0.024 db4objects 4.08 0.014 2.72 0.013 1.20 0.014 8.00 0.013 Easylink Services 54.76 0.183 17.76 0.082 1.48 0.017 74.00 0.123 Embarcadero Technologies 29.04 0.097 3.43 0.016 1.41 0.017 33.88 0.056 EMC 0.93 0.003 3.73 0.017 – – 4.66 0.008 Empirix 36.92 0.123 7.09 0.033 8.14 0.096 52.15 0.087 Empress Software 27.74 0.093 4.09 0.019 13.64 0.161 45.48 0.075 ENEA 0.34 0.001 1.38 0.006 0.04 0.001 1.77 0.003 Enterworks 7.48 0.025 – – 0.15 0.002 7.63 0.013 ESI 2.28 0.008 5.33 0.025 – – 7.62 0.013 Esker Software 1.14 0.004 0.01 0.000 – – 1.15 0.002 ESRI 344.85 1.150 165.87 0.762 59.28 0.698 570.00 0.946 Evolutionary Technologies International 9.86 0.033 5.48 0.025 0.31 0.004 15.66 0.026 Exact Holding NV 5.64 0.019 0.76 0.003 – – 6.40 0.011 Exigen 3.27 0.011 1.49 0.007 0.66 0.008 5.41 0.009 Extol 11.60 0.039 – – – – 11.60 0.019 Fair Isaac 49.48 0.165 16.38 0.075 4.45 0.052 70.31 0.117 FairCom Corp. 1.76 0.006 0.54 0.002 0.11 0.001 2.40 0.004 Fiorano Software Inc. 5.53 0.018 2.63 0.012 0.34 0.004 8.50 0.014 Firestar 5.06 0.017 – – – – 5.06 0.008 Four Js Development Tools Inc. 9.02 0.030 5.80 0.027 1.29 0.015 16.10 0.027 Fujitsu 47.22 0.157 44.46 0.204 511.59 6.023 603.27 1.002 Gemstone 0.70 0.002 – – – – 0.70 0.001 GigaSpaces 11.20 0.037 2.80 0.013 – – 14.00 0.023 Global 360 56.73 0.189 27.45 0.126 7.32 0.086 91.50 0.152 Global IDs Inc. 0.90 0.003 – – 0.10 0.001 1.00 0.002 GoldenGate Inc. 29.23 0.097 12.53 0.058 10.44 0.123 52.20 0.087 Green Hills Software 16.49 0.055 3.30 0.015 0.82 0.010 20.61 0.034 GT Software 2.96 0.010 0.33 0.002 – – 3.29 0.005 GXS 351.00 1.170 27.30 0.125 11.70 0.138 390.00 0.647 Haley 4.91 0.016 3.42 0.016 5.63 0.066 13.96 0.023

Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Halo Technology 1.12 0.004 1.39 0.006 0.16 0.002 2.67 0.004 Handysoft Corp. 10.42 0.035 3.47 0.016 3.47 0.041 17.36 0.029 Healthvision 56.11 0.187 17.72 0.081 – – 73.83 0.123 Hit Software 2.06 0.007 0.62 0.003 0.12 0.001 2.80 0.005 Hitachi 3.40 0.011 – – 386.03 4.545 389.43 0.647 HP 514.62 1.716 343.40 1.579 106.04 1.248 964.06 1.600 IBM 5,732.90 19.118 4,160.52 19.125 1,421.99 16.740 11,315.41 18.785 IDS Scheer AG 14.55 0.049 87.43 0.402 5.82 0.069 107.80 0.179 ILOG Inc. 58.33 0.195 50.88 0.234 14.89 0.175 124.10 0.206 I-Net Software 0.67 0.002 0.29 0.001 – – 0.95 0.002 Infor 4.73 0.016 5.40 0.025 2.80 0.033 12.93 0.021 Informatica 215.07 0.717 95.01 0.437 15.28 0.180 325.36 0.540 Information Builders Inc. 170.32 0.568 53.55 0.246 31.13 0.367 255.00 0.423 Infragistics Corp. 24.37 0.081 5.78 0.027 1.28 0.015 31.43 0.052 Ingres Corp. 9.27 0.031 14.14 0.065 4.59 0.054 28.00 0.046 Initiate Systems Inc. 35.60 0.119 4.00 0.018 0.40 0.005 40.00 0.066 Innovations Software Technology 0.14 0.000 6.41 0.029 0.05 0.001 6.60 0.011 Inovis 133.11 0.444 0.95 0.004 0.95 0.011 135.00 0.224 InRule Technology 2.33 0.008 0.12 0.001 – – 2.45 0.004 Insightful Corp. 7.69 0.026 6.63 0.030 1.18 0.014 15.50 0.026 Intalio 2.04 0.007 1.66 0.008 – – 3.70 0.006 Integrify 3.60 0.012 – – – – 3.60 0.006 Intel Corp. 6.91 0.023 3.78 0.017 5.76 0.068 16.45 0.027 IntelliCorp Inc. 3.65 0.012 1.23 0.006 0.02 0.000 4.90 0.008 Interfacing Technologies 1.50 0.005 3.04 0.014 – – 4.53 0.008 Intergraph 325.19 1.084 191.63 0.881 63.88 0.752 580.70 0.964 InterSystems Corp. 147.49 0.492 54.78 0.252 8.43 0.099 210.70 0.350 Iona 39.00 0.130 22.69 0.104 9.22 0.109 70.90 0.118 iRise 12.09 0.040 0.38 0.002 0.13 0.001 12.60 0.021 Jacada 13.26 0.044 2.34 0.011 – – 15.60 0.026 JetBrains 5.64 0.019 3.00 0.014 0.60 0.007 9.25 0.015 K2 16.00 0.053 8.00 0.037 8.00 0.094 32.00 0.053 Kabira 16.25 0.054 8.75 0.040 – – 25.00 0.042

Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Kalido 6.15 0.021 8.42 0.039 1.62 0.019 16.19 0.027 Kapow Technologies 9.20 0.031 – – – – 9.20 0.015 Kognitio 0.74 0.002 14.06 0.065 – – 14.80 0.025 KXEN 4.28 0.014 6.42 0.030 – – 10.70 0.018 Lawson Software 45.52 0.152 11.38 0.052 – – 56.90 0.094 Leica Geosystems 32.31 0.108 18.77 0.086 8.96 0.105 60.04 0.100 Liaison 4.80 0.016 0.60 0.003 0.60 0.007 6.00 0.010 LogicLibrary Inc. 3.99 0.013 0.75 0.003 0.25 0.003 4.98 0.008 LogiGear 1.11 0.004 – – – – 1.11 0.002 Lombardi Software 36.11 0.120 17.25 0.079 0.54 0.006 53.90 0.089 M.B. Foster Associates 5.03 0.017 1.86 0.009 – – 6.89 0.011 Macro 4 16.56 0.055 5.94 0.027 0.18 0.002 22.68 0.038 Macrovision 24.89 0.083 15.84 0.073 4.52 0.053 45.25 0.075 Magic Software Enterprises Inc. 16.64 0.055 15.81 0.073 9.15 0.108 41.60 0.069 Mainsoft 9.72 0.032 1.58 0.007 – – 11.30 0.019 Matisse 1.46 0.005 0.63 0.003 – – 2.08 0.003 McCabe & Associates 6.89 0.023 1.37 0.006 0.33 0.004 8.59 0.014 Mega International 5.13 0.017 11.64 0.053 0.34 0.004 17.11 0.028 Mentor Graphics 12.13 0.040 5.81 0.027 7.33 0.086 25.26 0.042 MetaCase 2.83 0.009 3.28 0.015 1.53 0.018 7.64 0.013 Metastorm 32.11 0.107 14.40 0.066 2.29 0.027 48.80 0.081 Micro Focus 93.96 0.313 85.42 0.393 34.17 0.402 213.54 0.355 Microsoft 3,429.65 11.437 2,635.10 12.113 676.43 7.963 6,741.18 11.191 MicroStrategy 167.67 0.559 82.43 0.379 15.80 0.186 265.90 0.441 Mincom Ltd. 2.16 0.007 0.96 0.004 4.88 0.057 8.00 0.013 Mindreef Inc. 4.01 0.013 0.81 0.004 0.08 0.001 4.90 0.008 MKS 28.61 0.095 15.37 0.071 1.53 0.018 45.50 0.076 Modulant Inc. 10.39 0.035 – – – – 10.39 0.017 MQSoftware 1.82 0.006 0.20 0.001 – – 2.02 0.003 MySQL 20.74 0.069 15.09 0.069 1.89 0.022 37.72 0.063 NEC 0.72 0.002 2.98 0.014 120.20 1.415 123.90 0.206 Netezza Corp. 39.42 0.131 7.39 0.034 2.46 0.029 49.28 0.082 NetManage Inc. 10.84 0.036 2.17 0.010 0.87 0.010 13.87 0.023

Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Netron Inc. 12.08 0.040 5.41 0.025 – – 17.49 0.029 Network Automation 2.34 0.008 0.67 0.003 0.33 0.004 3.34 0.006 Northgate Information Solutions PLC – – 6.00 0.028 – – 6.00 0.010 Novell 1.26 0.004 1.02 0.005 0.22 0.003 2.50 0.004 NuBridges 13.80 0.046 0.75 0.003 0.45 0.005 15.00 0.025 Object Connections 0.30 0.001 – – 2.68 0.032 2.98 0.005 ObjectFX 12.43 0.041 – – – – 12.43 0.021 Objectivity Inc. 5.02 0.017 0.67 0.003 1.00 0.012 6.68 0.011 Open Text Corp. 13.71 0.046 15.50 0.071 3.09 0.036 32.30 0.054 OpenConnect Systems 9.21 0.031 1.30 0.006 0.33 0.004 10.84 0.018 Openjaw Technologies 0.87 0.003 0.65 0.003 0.65 0.008 2.18 0.004 OpenSpan 3.60 0.012 – – – – 3.60 0.006 Optio Software 2.57 0.009 0.68 0.003 0.17 0.002 3.42 0.006 Oracle 4,350.26 14.507 3,905.69 17.954 2,215.65 26.083 10,471.60 17.384 Panorama Software 28.73 0.096 28.73 0.132 – – 57.46 0.095 Parallels 4.36 0.015 1.34 0.006 0.70 0.008 6.40 0.011 PCI Enterprises 5.15 0.017 2.14 0.010 3.43 0.040 10.72 0.018 Pegasystems 53.43 0.178 21.37 0.098 7.40 0.087 82.20 0.136 Perforce Software 34.94 0.117 9.22 0.042 1.94 0.023 46.10 0.077 Pervasive Software Inc. 24.80 0.083 8.14 0.037 5.84 0.069 38.78 0.064 Pitney Bowes Distribution Solutions 185.44 0.618 61.78 0.284 31.18 0.367 278.40 0.462 Polarlake 0.03 0.000 0.76 0.003 0.82 0.010 1.61 0.003 Portrait Software 1.75 0.006 6.13 0.028 0.88 0.010 8.76 0.015 PrismTech 9.63 0.032 9.63 0.044 1.23 0.014 20.50 0.034 Progress Software Corp. 238.32 0.795 172.43 0.793 15.98 0.188 426.73 0.708 Prolifics 15.16 0.051 10.10 0.046 – – 25.26 0.042 QlikTech 20.71 0.069 45.98 0.211 3.51 0.041 70.20 0.117 Quest Software 244.95 0.817 69.90 0.321 15.66 0.184 330.51 0.549 Quick Address Software 106.86 0.356 7.29 0.033 7.29 0.086 121.44 0.202 RadView Software 3.27 0.011 1.24 0.006 0.09 0.001 4.60 0.008 Ravenflow 0.55 0.002 – – – – 0.55 0.001 Real-Time Innovations 6.40 0.021 – – – – 6.40 0.011 Red Hat Inc. 25.17 0.084 8.72 0.040 0.75 0.009 34.64 0.058

Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Repliweb 9.50 0.032 – – – – 9.50 0.016 Rocket Software 23.67 0.079 12.44 0.057 1.13 0.013 37.24 0.062 Sand Technology 2.09 0.007 4.31 0.020 – – 6.40 0.011 SAP 218.34 0.728 365.03 1.678 98.92 1.165 682.29 1.133 Sapiens USA Inc. 4.03 0.013 9.87 0.045 1.67 0.020 15.57 0.026 SAS 620.12 2.068 628.11 2.887 183.38 2.159 1,431.60 2.377 Savvion 18.48 0.062 2.90 0.013 5.02 0.059 26.40 0.044 Seeburger 18.24 0.061 73.91 0.340 2.85 0.034 95.00 0.158 SEEC Inc. 1.44 0.005 0.16 0.001 0.69 0.008 2.28 0.004 SERENA Software 155.93 0.520 76.75 0.353 10.20 0.120 242.89 0.403 Siemens 79.34 0.265 82.40 0.379 29.44 0.347 191.18 0.317 Silicon Graphics 7.48 0.025 2.46 0.011 1.38 0.016 11.31 0.019 Siperian Inc. 20.00 0.067 – – – – 20.00 0.033 Smartstream 17.67 0.059 26.51 0.122 14.73 0.173 58.90 0.098 SOA Software Inc. 1.02 0.003 0.19 0.001 0.06 0.001 1.27 0.002 Software AG 299.00 0.997 342.37 1.574 59.22 0.697 700.60 1.163 Software Eng. of America 0.13 0.000 0.03 0.000 0.01 0.000 0.17 0.000 Software Innovation ASA – – 4.60 0.021 – – 4.60 0.008 Solid Information Technology 5.90 0.020 7.21 0.033 – – 13.11 0.022 SolutionsIQ 3.43 0.011 0.24 0.001 0.11 0.001 3.78 0.006 SpringSource 1.79 0.006 0.20 0.001 – – 1.99 0.003 SPS Commerce 24.03 0.080 2.67 0.012 – – 26.70 0.044 SPSS 89.46 0.298 100.75 0.463 36.19 0.426 226.40 0.376 Sterling Commerce 315.96 1.054 74.45 0.342 14.49 0.171 404.90 0.672 Stratature Inc. 2.73 0.009 – – – – 2.73 0.005 Streambase 6.50 0.022 – – – – 6.50 0.011 StrikeIron Inc. 0.96 0.003 0.11 0.000 – – 1.06 0.002 Sun Microsystems 164.26 0.548 119.68 0.550 24.01 0.283 307.95 0.511 SunGard 34.04 0.114 8.28 0.038 3.68 0.043 46.00 0.076 SWIFT 106.95 0.357 454.04 2.087 49.02 0.577 610.00 1.013 Sybase 472.91 1.577 271.89 1.250 97.20 1.144 842.00 1.398 Targit 1.60 0.005 7.81 0.036 – – 9.40 0.016 Telelogic AB 81.28 0.271 100.71 0.463 29.61 0.349 211.60 0.351

Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Teradata 411.66 1.373 157.44 0.724 60.90 0.717 630.00 1.046 The SCO Group Inc. 0.20 0.001 0.23 0.001 0.00 0.000 0.43 0.001 TIBCO Inc. 228.27 0.761 196.49 0.903 34.34 0.404 459.10 0.762 TigerLogic 13.02 0.043 5.58 0.026 – – 18.60 0.031 Tmax Soft 0.05 0.000 – – 39.57 0.466 39.62 0.066 Trillium Software 25.00 0.083 28.68 0.132 0.71 0.008 54.39 0.090 True Commerce 7.30 0.024 – – – – 7.30 0.012 Ultimus 5.80 0.019 6.30 0.029 1.20 0.014 13.30 0.022 Unica Corp. 7.29 0.024 1.39 0.006 – – 8.68 0.014 UNIFY Corp. 7.05 0.024 6.75 0.031 1.20 0.014 15.00 0.025 Unisys 61.74 0.206 50.52 0.232 6.32 0.074 118.58 0.197 Versant 15.41 0.051 6.52 0.030 1.37 0.016 23.30 0.039 Versata 11.72 0.039 1.60 0.007 – – 13.32 0.022 Visible Systems Corp. 4.20 0.014 0.81 0.004 0.26 0.003 5.27 0.009 Vision Solutions Inc. 23.95 0.080 11.98 0.055 3.99 0.047 39.92 0.066 VisionWare 1.78 0.006 7.13 0.033 – – 8.92 0.015 Visual Numerics Inc. 51.69 0.172 18.51 0.085 5.71 0.067 75.91 0.126 Vitria Technology Inc. 25.83 0.086 10.25 0.047 4.92 0.058 41.00 0.068 WebLayers Inc. 5.00 0.017 – – – – 5.00 0.008 Xenos 9.10 0.030 4.20 0.019 0.70 0.008 14.00 0.023 Xpriori 1.16 0.004 0.58 0.003 0.58 0.007 2.32 0.004 Yasutech 0.59 0.002 – – 2.36 0.028 2.95 0.005 Subtotal 26,268.37 87.599 18,996.41 87.323 7,597.13 89.436 52,861.92 87.758 Other 3,718.84 12.401 2,757.85 12.677 897.32 10.564 7,374.01 12.242 Total 29,987.21 100.000 21,754.26 100.000 8,494.45 100.000 60,235.93 100.000

Source: IDC, 2008

TABLE 8

Worldwide Application Software Revenue by Top 50 Vendors, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Microsoft 13,714 14,315 16,648 16.3 13.05 1 SAP 7,265 7,968 9,503 19.3 7.45 2 Oracle 4,742 5,492 6,495 18.3 5.09 3 Siemens 2,964 3,119 3,378 8.3 2.65 4 IBM 1,966 2,221 2,493 12.2 1.95 5 Adobe 1,852 1,908 2,365 23.9 1.85 6 Sage Group 1,719 1,869 2,172 16.2 1.70 7 Infor 1,541 1,645 1,768 7.5 1.39 8 Autodesk 1,136 1,429 1,617 13.2 1.27 9 Intuit 1,352 1,425 1,581 10.9 1.24 10 Dassault Systemes 1,054 1,127 1,486 31.9 1.16 11 Cadence Design Systems 1,203 1,350 1,470 8.8 1.15 12 SunGard 1,209 1,324 1,406 6.2 1.10 13 Cisco 680 924 1,174 27.1 0.92 14 Vivendi 526 696 1,156 66.1 0.91 15 Synopsys 943 1,042 1,153 10.7 0.90 16 McKessonHBOC 1,000 1,085 1,149 5.9 0.90 17 Avaya Inc. 879 872 973 11.6 0.76 18 Fiserv 744 818 893 9.1 0.70 19 Misys 696 706 762 7.9 0.60 20 Fujitsu 746 722 740 2.5 0.58 21 PTC 644 729 704 -3.4 0.55 22 Cerner 592 673 700 3.9 0.55 23 Mentor Graphics 551 618 688 11.4 0.54 24 Salesforce.com 281 452 616 36.4 0.48 25 Fair Isaac 597 619 594 -4.0 0.47 26 Nortel Networks 554 594 592 -0.4 0.46 27 EMC 447 499 563 12.8 0.44 28 Nuance Communications Inc. 401 473 551 16.5 0.43 29 Reynolds & Reynolds 500 500 542 8.3 0.42 30 Electronic Arts 403 544 533 -2.1 0.42 31 SAS 364 425 489 15.1 0.38 32 Verint Systems 209 374 458 22.4 0.36 33 Aspect Software 510 449 457 1.9 0.36 34 Open Text Corp. 426 435 438 0.6 0.34 35 Micros Systems 259 348 388 11.5 0.30 36 Lawson Software 329 335 387 15.7 0.30 37 Bentley Systems Inc. 286 305 377 23.4 0.30 38 Kronos Inc. 293 318 375 17.9 0.29 39 Genesys Telecommunications 280 311 367 18.0 0.29 40 Laboratories Amdocs 270 297 337 13.3 0.26 41 DATEV eG 289 294 323 10.1 0.25 42 Activant Solutions Inc. 216 223 311 39.7 0.24 43 Autonomy 174 245 306 24.8 0.24 44 ADP 283 286 305 6.7 0.24 45 Eclipsys 249 278 300 8.0 0.24 46

Worldwide Application Software Revenue by Top 50 Vendors, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Ansys Inc. 122 203 297 45.9 0.23 47 Sun Microsystems 264 293 294 0.4 0.23 48 NICE SYSTEMS 216 269 291 8.2 0.23 49 Aspen Technology 209 252 277 9.7 0.22 50 Subtotal 58,148 63,700 73,242 15.0 57.41 Other 45,539 49,370 54,334 10.1 42.59 Total 103,687 113,070 127,576 12.8 100.00

Source: IDC, 2008

TABLE 9

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank 3M 20 23 26 13.0 0.020 276 4CS 7 9 10 7.5 0.008 445 Abacus Research AG 16 17 19 9.9 0.015 329 ABB Ltd. 62 70 84 19.6 0.066 145 Able Commerce 6 6 4 -41.6 0.003 595 Accela 10 14 20 42.9 0.016 311 Accelrys 43 41 41 -0.2 0.032 217 Accountpro 4 4 5 7.7 0.004 560 Accruent 22 26 28 7.7 0.022 270 Actek 5 5 6 9.4 0.005 529 Activant Solutions Inc. 216 223 311 39.7 0.244 43 Active Voice 22 26 31 19.2 0.024 254 Activision Inc. 193 125 150 19.3 0.117 89 Actuate Corp. 16 11 13 16.1 0.010 398 Acxiom Digital 33 36 39 9.8 0.031 226 ADAM Software 0 1 3 120.6 0.002 617 Adexa 27 28 30 7.7 0.024 256 Aditro Group 90 95 105 11.4 0.083 119 Adobe 1,852 1,908 2,365 23.9 1.853 6 ADP 283 286 305 6.7 0.239 45 Advanced Data Exchange 7 8 9 10.5 0.007 463 Advent Software 112 127 162 27.5 0.127 85 Aim Technology 3 6 7 9.4 0.005 510 Akonix 7 9 10 13.3 0.008 431 Alcatel Lucent 63 70 77 9.9 0.061 160 Alchemy Software Development 2 3 3 26.2 0.002 604 Ltd. Aldata Solution 40 57 43 -24.2 0.034 208 Algor Inc. 12 12 13 6.6 0.010 392 Algorithmics Inc. 67 75 100 33.3 0.078 127

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Alibre Inc. 4 4 4 -9.3 0.003 584 Allegro Development Corp. 14 15 20 35.7 0.016 317 Allscripts 64 86 103 20.0 0.081 121 AlmavivA 21 16 17 4.4 0.013 347 Altair Engineering Inc. 25 28 29 6.3 0.023 261 Amano Cincinnati 10 12 13 9.3 0.010 395 Amdocs 270 297 337 13.3 0.264 41 American Software 40 45 49 8.4 0.039 191 Ansys Inc. 122 203 297 45.9 0.233 47 AnyDoc 9 10 10 4.2 0.008 443 API Software 8 10 10 9.4 0.008 429 APPGEN Business Software 13 14 15 7.6 0.012 374 Apple 196 208 225 8.3 0.177 60 Applied Innovation Management 1 1 1 8.0 0.001 644 Applied Materials 17 18 19 6.1 0.015 323 Applied Systems Inc. 92 96 100 3.7 0.078 128 Applied Voice & Speech 26 29 34 17.2 0.027 243 Technologies Aprimo Corp. 15 27 34 25.5 0.027 244 Aquitec International 6 6 6 9.6 0.005 515 Arena 16 18 13 -28.3 0.010 403 Argo Data Resource Corp. 18 19 20 4.5 0.016 318 Argos Systems 1 1 1 -56.3 0.000 647 ARI Network 8 8 9 15.6 0.007 459 Ariba Inc. 174 168 163 -2.8 0.128 84 Art Technology Group 70 72 95 32.7 0.074 133 ASA International 20 19 19 0.0 0.015 327 Ascentis 7 8 8 9.4 0.007 471 ASCON 11 12 18 45.0 0.014 336 ASG 75 77 65 -16.0 0.051 175 Aspect Software 510 449 457 1.9 0.358 34 Aspen Technology 209 252 277 9.7 0.217 50 Assetlink 3 3 6 82.5 0.005 524 Astea International 14 13 20 53.2 0.016 308 Asure 12 16 18 9.4 0.014 339 AT Kearney Procurement Solutions 11 12 13 10.4 0.010 393 ATOSS Software AG 15 16 20 23.5 0.016 309 Atrion International 15 16 18 9.1 0.014 340 Attachmate 8 9 10 9.9 0.008 446 Augeo Software 7 7 7 5.8 0.006 495 Authoria 28 28 35 22.8 0.027 238 Autodesk 1,136 1,429 1,617 13.2 1.268 9 Autonomy 174 245 306 24.8 0.240 44 Autotask 2 2 3 10.5 0.002 621 Auto-trol Technology 4 4 5 45.7 0.004 541 Avaya Inc. 879 872 973 11.6 0.763 18 AVEVA Group 98 124 179 44.1 0.140 77

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Avolent Inc. 14 15 12 -18.3 0.009 414 Ayanova (Ground Zero Tech-Works 2 2 2 7.5 0.002 624 Inc.) BancTec Inc. 89 96 103 7.3 0.080 123 BasWare 34 49 69 41.5 0.054 170 Baxter Planning Systems Inc. 7 8 8 6.7 0.006 477 BEA 156 177 196 10.6 0.153 69 Beeline 35 41 45 9.4 0.035 201 Bentley Systems Inc. 286 305 377 23.4 0.296 38 Beta Systems Software AG 57 47 45 -3.6 0.036 199 Bison 12 14 13 -8.5 0.010 397 Blackbaud 108 125 157 26.4 0.123 86 Blackboard 120 160 213 32.9 0.167 64 BlueCielo ECM Solutions 10 9 10 8.1 0.008 432 Bluegarden AS 16 17 17 4.8 0.014 342 BMC 15 8 6 -30.6 0.005 530 Bond International 18 22 26 17.9 0.021 275 Boothroyd Dewhurst 1 1 1 -12.9 0.001 638 Borland Software Corp. 2 3 4 19.4 0.003 591 Bottomline Technologies 54 54 82 51.1 0.064 149 BravoSolution 5 8 7 -15.2 0.005 504 Broadlane 13 14 16 10.5 0.012 358 BroadVision 41 40 44 9.8 0.034 205 Brooks Automation 94 85 92 7.3 0.072 137 Business Objects 131 153 168 9.5 0.132 83 CA 95 106 152 44.0 0.119 87 Cactus Commerce 5 6 6 10.5 0.005 520 Cadence Design Systems 1,203 1,350 1,470 8.8 1.152 12 Callidus Software Inc. 35 50 64 29.2 0.050 176 Calypso Technology 18 22 24 10.0 0.019 287 Cambar Software 2 2 6 160.9 0.005 526 Campus Management Corp. 20 24 25 4.2 0.020 283 Camstar Systems Inc. 37 54 57 6.3 0.045 180 Captaris Inc. 31 37 12 -66.4 0.010 408 CAS GmbH 22 24 26 4.1 0.020 279 CCH 35 38 40 7.2 0.032 220 CCK Financial Solutions Ltd. 6 6 7 12.4 0.005 501 CDC Corp. 151 159 136 -14.6 0.107 96 Cegedim 167 182 216 18.9 0.170 63 Cegid SA 143 155 185 19.2 0.145 75 Celerity Solutions 2 3 1 -43.6 0.001 635 Centive Systems 17 20 23 15.0 0.018 295 Centric Software 10 11 8 -21.1 0.007 469 Ceridian 71 76 82 7.9 0.064 150 Cerner 592 673 700 3.9 0.549 23 Cezanne Software Inc. 5 7 8 8.3 0.006 482 CGI Information Systems 106 105 115 9.1 0.090 113

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Channel Advisor 9 12 13 10.5 0.010 391 Chase Cooper 8 15 16 7.3 0.013 355 Check Free Corp. 100 128 145 13.1 0.114 92 Chordiant Software Inc. 64 75 90 20.6 0.070 140 Cimatron 21 21 29 33.7 0.022 264 Cincom Systems Inc. 74 91 94 3.6 0.074 136 Cisco 680 924 1,174 27.1 0.920 14 Citrix 12 28 53 90.7 0.042 183 Cleo 8 9 10 10.5 0.008 441 Click Commerce Inc. 94 103 113 9.6 0.088 114 Clickability 1 2 4 94.7 0.003 590 ClickSoftware 18 24 29 23.4 0.023 260 CMstat 5 5 3 -53.5 0.002 622 CNC Software Inc. 7 8 8 3.9 0.006 476 COA Solutions 58 69 82 18.9 0.064 151 CODA 56 60 70 17.5 0.055 168 Cognology 1 2 2 13.9 0.002 626 Cognos 155 172 204 18.5 0.160 67 Coheris 22 28 34 20.1 0.027 241 CombineNet 2 4 6 50.0 0.005 523 CommercialWare Inc. 1 1 1 8.3 0.001 639 CommuniGate Systems 29 38 39 2.6 0.031 227 ComOps 1 1 1 29.1 0.001 645 Compiere 2 5 5 9.5 0.004 538 Computational Engineering Intl. Inc. 4 4 4 0.0 0.003 579 Computer Corp. Of America (CCA) 9 9 8 -10.5 0.007 466 Compuware 19 21 28 36.9 0.022 266 Concur Technologies 87 124 174 39.4 0.136 80 Consona 105 112 121 7.7 0.095 108 Constellation Software Inc. 114 144 170 18.2 0.133 81 Convera 23 17 19 11.5 0.015 324 Convergys 171 187 176 -5.9 0.138 79 Corel Corp. 279 294 250 -14.8 0.196 58 Coremetrics 16 29 16 -46.5 0.012 361 Cornerstone OnDemand 3 4 5 42.2 0.004 550 Critical Path 33 23 25 9.6 0.020 281 Crown Computing 6 7 7 8.9 0.006 496 CSB-System AG 17 17 19 12.1 0.015 325 Cybershift 22 25 16 -36.0 0.013 356 CyberSource 3 2 2 4.6 0.002 623 Cybozu Inc. 29 32 35 10.7 0.028 236 Daptiv 6 14 15 10.5 0.012 366 Dassault Systemes 1,054 1,127 1,486 31.9 1.165 11 Data I/O 5 5 5 -6.8 0.004 551 Datasul 56 72 95 31.9 0.074 134 Datawatch Corp. - 0 1 25.0 0.000 648 DATEV eG 289 294 323 10.1 0.253 42

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Day Software 9 11 16 36.4 0.012 362 Deltek Systems 109 159 190 19.5 0.149 72 DemandTec 15 30 40 33.3 0.031 223 Descartes Systems 46 49 50 1.9 0.039 189 Digital River Inc. 71 89 103 15.2 0.081 122 DO2 Technologies 7 7 7 4.9 0.006 493 Document Sciences Corp. 20 22 27 22.3 0.021 272 DoubleClick Inc. 46 46 51 10.0 0.040 187 DSC 21 22 25 15.1 0.020 280 Dun & Bradstreet 31 43 47 8.5 0.036 197 (D&B Sls & Mktg. Sols) Duzon Digitalware 16 17 20 14.0 0.015 319 Dynamacs 6 7 8 9.4 0.006 485 Eclipsys 249 278 300 8.0 0.235 46 Econintel Treasury Systems Inc. 2 3 3 6.4 0.002 614 Ecteon 8 9 10 10.5 0.008 440 EDB Gruppen A/S 21 22 23 1.8 0.018 297 Edifecs 6 7 8 10.5 0.006 484 eGain 16 14 14 -2.2 0.011 389 Ektron 8 13 19 44.5 0.015 326 Elcom International Inc. 3 3 3 5.0 0.002 615 Electronic Arts 403 544 533 -2.1 0.418 31 Element K 13 13 14 3.7 0.011 387 Emagia 6 6 7 6.8 0.005 500 EMC 447 499 563 12.8 0.441 28 Emergis 33 38 44 16.7 0.034 206 Emptoris 22 30 33 10.0 0.026 246 Endeca 27 53 83 54.8 0.065 147 Engineous Software Inc. 5 5 8 50.8 0.006 488 Enigma 13 15 16 10.1 0.013 354 Enterprise Incentive Software Inc. 6 7 8 7.1 0.006 490 Enterworks 3 4 2 -46.6 0.001 632 Entigo 7 7 8 9.5 0.006 481 Entomo 5 6 7 10.5 0.005 508 Epicor Software Corp. 212 250 270 8.1 0.211 53 ePlus 12 10 11 7.2 0.008 427 Eqos 3 3 4 10.5 0.003 592 ERI Bancaire SA 67 56 59 5.1 0.046 177 ESA Software Spa 28 29 32 11.8 0.025 250 Escalate Retail 48 50 41 -19.2 0.032 218 e-Spirit AG 3 6 5 -9.6 0.004 544 ESS 9 10 8 -14.9 0.006 472 etrials 2 3 3 4.5 0.003 602 EVER Group 9 10 13 26.4 0.010 400 Everest Software Inc. 8 8 8 6.9 0.006 475 EXA Corp. 3 3 3 0.0 0.003 598 Exact Holding NV 237 241 272 12.7 0.213 51

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Excelergy Corp. 7 7 7 4.5 0.006 499 Exigen 3 4 3 -27.7 0.002 618 Expandable Software Inc. 5 5 6 6.8 0.004 533 Experian 26 30 22 -24.4 0.018 299 Explorer Software Inc. 2 4 4 4.5 0.003 572 Exstream 50 64 80 25.0 0.062 156 Eze Castle Software 3 5 7 50.0 0.005 502 FaceTime Communications Inc. 7 8 9 7.1 0.007 455 Fair Isaac 597 619 594 -4.0 0.466 26 Fast Search & Transfer Inc. 92 111 107 -3.3 0.084 118 FatWire Software 22 23 25 6.8 0.020 282 Fidelity National 164 228 243 6.6 0.190 59 Fidessa 70 96 130 35.4 0.102 104 Fieldglass 5 8 9 9.4 0.007 462 Financial Objects PLC 15 22 25 9.8 0.019 285 Financial Sciences Corp. 11 11 12 6.5 0.009 411 Financial Software Systems 4 4 4 4.5 0.003 570 Finestra 1 1 1 8.9 0.001 637 FirePond Inc. 7 7 2 -70.8 0.002 629 First Data (Peace Software) 11 11 13 11.7 0.010 405 Firstwave Technologies Inc. 3 2 4 48.3 0.003 593 Fiserv 744 818 893 9.1 0.700 19 FlexiInternational Software 7 7 8 6.8 0.006 487 Formula Telecom Solutions 3 3 4 7.4 0.003 588 Foundation for Windows 7 8 9 6.4 0.007 464 Four Soft Ltd. 2 2 2 8.8 0.002 625 FrontRange Solutions Inc. 52 55 20 -63.1 0.016 307 FRS 8 10 11 7.7 0.008 426 Fujitsu 746 722 740 2.5 0.580 21 Gateway Systems Inc. 3 4 4 5.0 0.003 571 Gavel and Gown Software 8 9 9 5.3 0.007 450 Gemalto 3 – – NA – NA Gemmar Systems International Inc. 1 1 2 3.9 0.001 634 Genesys Conferencing 20 30 34 12.6 0.027 242 Genesys Software Systems Inc. 4 5 5 8.7 0.004 542 Genesys Telecommunications 280 311 367 18.0 0.288 40 Laboratories Gensym 6 7 6 -3.7 0.005 511 GFI Informatique 90 95 110 15.7 0.086 117 GHX 26 42 45 7.1 0.035 200 Global 360 37 26 28 9.8 0.022 271 Global Software Inc. 33 36 44 22.2 0.034 204 GlobeNet Technologies 3 4 4 9.4 0.003 587 GMT Corp. 11 14 15 8.5 0.012 370 Google Inc. 65 121 112 -7.0 0.088 115 Gores Technology Group 17 19 15 -17.6 0.012 369 Graphisoft 30 37 40 7.8 0.031 225

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Gruppo Formula Spa 16 17 20 13.4 0.015 321 GSE Systems 3 4 5 15.6 0.004 556 Haansoft Inc. 19 22 24 11.2 0.019 290 Halo Technology 6 9 9 8.6 0.007 452 Halogen Software 8 15 20 33.3 0.016 316 Handysoft Corp. 11 13 14 11.1 0.011 384 HansaWorld Ltd. 9 15 16 12.3 0.013 352 HardDollar 4 4 4 9.6 0.004 564 Healthvision 20 21 22 5.2 0.017 300 Healy Hudson 5 6 6 6.9 0.005 527 High Line Corp. 6 7 7 6.0 0.006 494 Hitachi 219 212 222 5.0 0.174 62 HK Systems 20 21 24 11.4 0.019 292 HodesIQ 2 4 4 9.4 0.003 567 Hogia Group 26 29 33 13.5 0.026 248 HP 52 59 51 -14.3 0.040 188 HR Access 29 33 35 5.2 0.027 239 HR Technologies 3 4 4 9.4 0.003 585 Hubwoo 32 35 39 10.9 0.030 228 Hyland Software 60 68 92 34.8 0.072 138 Hyphen 14 15 15 6.0 0.012 367 Hyphen Solutions 38 44 47 7.6 0.037 195 i2 Technologies 161 145 135 -6.5 0.106 97 IBM 1,966 2,221 2,493 12.2 1.954 5 IBM Application Solutions 57 60 65 8.0 0.051 174 IBS AB 70 69 73 4.8 0.057 166 ICG Commerce 12 14 15 10.3 0.012 375 iCIMS 6 13 17 28.8 0.013 346 Idiom Inc. 17 26 33 27.2 0.026 245 IFS Industrial and Financial 123 140 168 20.1 0.132 82 Systems AB IHS Energy Group 6 6 6 4.5 0.005 517 ILOG Inc. – – 4 NA 0.003 589 iMany 6 7 10 33.3 0.008 437 Immersive Design Inc. 1 1 1 0.0 0.001 642 Infogrames 123 99 71 -28.2 0.056 167 Infor 1,541 1,645 1,768 7.5 1.386 8 Informatica 1 1 1 -5.2 0.001 643 Inforsud 8 8 10 15.7 0.008 448 InMarketing Group 3 4 4 9.4 0.003 586 Innotas 2 2 6 161.4 0.005 525 Innovation Asset Group 1 2 2 10.5 0.002 627 Innovation Group 50 62 70 12.2 0.055 169 Inovis 42 42 44 4.6 0.035 202 Insightful Corp. 1 1 0 -59.7 0.000 649 INSTEC 2 2 2 4.5 0.002 630 Integrated Decisions & Systems 3 4 5 25.0 0.004 548

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Inc.(IDeaS) Integrated Support Systems 9 9 10 8.7 0.008 444 Interactive Intelligence Inc. 55 72 99 37.5 0.078 129 InterCall 19 21 24 14.3 0.019 289 Intershop Communications 13 17 21 26.7 0.017 303 InterSystems Corp. – – 18 NA 0.014 333 Intervoice 128 160 150 -6.2 0.118 88 Interwise (AT&T) 24 27 33 22.2 0.026 247 Interwoven 151 167 190 14.0 0.149 71 Intime Solutions 12 14 15 9.6 0.012 368 IntraLearn Software Corp. 5 6 6 3.8 0.005 531 IntraLinks 55 87 95 9.8 0.074 132 Intuit 1,352 1,425 1,581 10.9 1.239 10 Invensys 255 267 268 0.6 0.210 54 Investment Technology Group 11 12 13 7.8 0.010 406 IPS of Boston 12 13 4 -68.7 0.003 580 Ipswitch 12 7 5 -27.7 0.004 555 IQ Navigator 10 15 20 33.3 0.016 312 IRIS Group Ltd. 30 32 37 13.9 0.029 233 IRIS Integrated Risk Management 22 24 26 8.2 0.020 278 IronCAD 4 4 3 -26.0 0.002 605 Island Pacific Inc. 15 14 15 4.6 0.012 371 iSoft PLC 160 140 142 1.4 0.111 94 ISU Ubcare 12 13 14 12.4 0.011 382 Itron Inc. 50 59 110 87.7 0.086 116 Jabber 7 10 8 -13.7 0.006 474 Jack Henry & Associates 180 243 263 8.4 0.206 56 JDA Software Group Inc. 173 216 252 16.4 0.197 57 Jeeves Information Systems 12 14 17 17.9 0.013 350 Jenzabar 18 22 40 81.8 0.031 222 Jeppesen 22 23 25 8.3 0.020 284 Jesta I.S. 43 46 49 7.2 0.038 194 Jive Software 3 4 11 189.5 0.009 420 JP Morgan 95 109 117 7.1 0.091 112 Justsystem Corp. 62 65 69 5.7 0.054 171 Kaba Benzing 30 35 38 9.2 0.030 230 Kamakura Corp. 9 12 13 8.0 0.010 401 Kana 36 45 49 8.2 0.038 193 Kenexa 72 103 149 44.1 0.117 90 Ketera 1 3 3 10.5 0.003 597 Kewill Systems PLC 32 33 42 27.8 0.033 214 Kinaxis 16 22 29 31.7 0.022 263 Kingdee 42 46 53 14.1 0.041 184 Kofax 109 124 134 8.4 0.105 99 Kronos Inc. 293 318 375 17.9 0.294 39 KSS 7 8 10 25.0 0.008 438 Kubotek 2 2 3 34.3 0.002 612

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Kyriba 4 7 7 7.1 0.006 491 Lagan 11 14 20 41.8 0.016 314 Language Engineering Corp. 4 4 4 8.0 0.003 573 Lanner Group Inc. 5 6 5 -17.5 0.004 554 Lawson Software 329 335 387 15.7 0.304 37 LearnFrame 24 24 28 14.4 0.022 268 Lefebvre Software 13 15 17 19.5 0.014 341 Levi, Ray & Shoup Inc. 8 8 9 4.0 0.007 465 LexisNexis Interface Software Inc. 18 22 24 8.4 0.019 288 LMS International 15 17 18 6.1 0.014 334 LogicTools Inc. 5 5 6 6.1 0.004 536 Logility Inc. 22 35 44 25.7 0.034 207 Lombard Risk Management 5 7 8 7.3 0.006 489 Maconomy A/S 14 18 22 27.8 0.018 298 Macro 4 9 9 10 4.7 0.008 447 Main Sequence 2 3 3 9.4 0.003 599 MaintenanceNet 3 6 7 10.5 0.005 507 Mamut ASA 26 32 43 33.6 0.033 213 Management Controls Inc. 4 4 5 4.9 0.004 562 Management Dynamics 13 15 17 13.6 0.013 345 Manhattan Associates 162 189 209 10.3 0.164 66 Maritz Incentives 15 16 17 7.8 0.014 343 Matrikon 15 17 20 17.9 0.016 315 Maxager 3 4 5 25.0 0.004 549 Maximizer Software Inc. 12 14 15 8.6 0.012 364 Maximus 120 127 133 4.7 0.104 100 Maxwell Systems 12 15 14 -6.7 0.011 386 MCA Solutions 6 9 9 5.3 0.007 458 MCBA 41 44 40 -9.6 0.031 221 McKessonHBOC 1,000 1,085 1,149 5.9 0.900 17 McLaren Software 8 10 9 -4.7 0.007 454 MCS 9 9 10 6.7 0.008 442 Mediasurface 12 18 18 2.8 0.015 331 Medical Information Technology 160 185 195 5.4 0.153 70 Medidata Solutions 2 4 4 4.1 0.003 574 Mentor Graphics 551 618 688 11.4 0.540 24 Mercado Software Inc. 14 15 13 -13.3 0.010 396 Merced Systems 3 7 8 9.4 0.006 486 Meridian Systems 17 18 22 18.2 0.017 302 MessageLabs 4 6 7 9.5 0.005 503 Meta4 23 25 30 20.2 0.023 258 Metavante Corp. 152 160 265 65.5 0.208 55 Micros Systems 259 348 388 11.5 0.304 36 Microsoft 13,714 14,315 16,648 16.3 13.049 1 Midland HR & Payroll Solutions 15 15 18 22.0 0.014 332 Mincom Ltd. 44 58 81 39.7 0.064 153 Mindjet Corp. 30 34 38 11.8 0.030 231

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Mirapoint 31 27 27 -1.1 0.021 273 Missler Software 31 26 32 23.1 0.025 251 Misys 696 706 762 7.9 0.597 20 MIVA 19 17 15 -11.4 0.012 373 Moai Technologies Inc. 13 14 16 9.7 0.012 363 Model N 9 10 12 20.0 0.009 413 Moldflow Corp. 40 38 32 -15.7 0.025 252 Motive Communications 29 31 29 -5.8 0.023 262 MSC Software 231 203 95 -53.2 0.074 135 Multima Corp. 2 3 3 8.0 0.002 610 Murex 8 10 11 8.2 0.008 425 MYOB Ltd. 109 119 130 9.2 0.102 105 NASDAQ OMX 50 55 58 5.3 0.045 178 NEC 166 171 178 4.4 0.140 78 Nedstat 11 13 18 32.7 0.014 338 Nemetschek 139 152 186 22.4 0.146 74 NetRatings Inc. 11 14 16 10.8 0.012 360 NetSuite 33 60 98 61.5 0.077 130 NETtime Solutions 4 5 5 9.4 0.004 543 NeuSoft 21 23 27 15.2 0.021 274 Newtron 3 4 4 6.9 0.003 568 Nextrials 1 1 2 4.5 0.001 633 NICE SYSTEMS 216 269 291 8.2 0.228 49 Nobscot 2 2 3 9.4 0.002 619 Nortel Networks 554 594 592 -0.4 0.464 27 Northgate Information Solutions 169 181 210 15.8 0.164 65 PLC Novell 105 99 101 1.6 0.079 126 NOW Solutions LLC 6 5 5 9.5 0.004 539 Nstein 9 11 13 23.5 0.010 390 Nuance Communications Inc. 401 473 551 16.5 0.432 29 Nuview Systems Inc. 15 18 20 9.4 0.015 320 OBIC Business Consultants Co. Ltd. 63 66 68 3.6 0.053 173 OBIC Co. Ltd. 46 48 49 3.6 0.039 190 Omniture 41 75 132 76.6 0.103 101 Omniware 5 6 6 6.9 0.005 528 One Network 10 11 8 -30.4 0.006 479 Online Resources Corp. 68 81 121 48.5 0.095 107 OnStream Media 5 5 12 122.2 0.009 415 Onventis 10 14 15 6.9 0.012 378 Open Solutions Inc. 102 112 117 4.6 0.092 111 Open Systems Holding Corp. 15 16 17 7.1 0.013 344 Open Text Corp. 426 435 438 0.6 0.343 35 OpenAir 5 5 8 48.1 0.006 478 Openwave Systems Inc. 112 111 74 -33.1 0.058 165 Optiant Inc. 5 5 6 4.8 0.004 535 Optio Software 16 16 14 -10.4 0.011 383

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Oracle 4,742 5,492 6,495 18.3 5.091 3 OSISoft 20 21 22 6.0 0.017 301 Outcome – – 5 NA 0.004 547 P2 Energy Solutions 8 8 9 4.5 0.007 461 PartsRiver-Saqqara 12 13 14 9.4 0.011 381 Paychex 45 52 57 9.6 0.045 179 PDG Software Inc. 3 4 3 -25.2 0.002 613 PDS 4 4 4 12.5 0.004 563 Pearson 13 14 16 9.3 0.012 359 PenSoft 9 11 12 6.0 0.009 417 Penta Technologies 4 5 5 4.5 0.004 558 Peopleclick 28 32 35 9.5 0.027 237 PeopleNet 4 4 4 9.4 0.003 565 Perceptive Software 21 29 40 40.8 0.032 219 Percussion Software 20 20 18 -12.2 0.014 337 Perfect Commerce 25 28 28 1.7 0.022 269 Personal & Informatik AG 43 47 56 19.3 0.044 181 Phase Forward 35 37 54 47.7 0.042 182 Pilat Technologies Intl. 4 4 4 4.8 0.003 566 Pitney Bowes Distribution Solutions 71 79 88 11.5 0.069 141 Planisware 9 10 15 45.9 0.012 372 Planview 26 37 49 33.0 0.039 192 Plateau Systems Ltd. 11 13 15 15.4 0.012 377 Plus Technologies 1 1 1 3.2 0.001 641 Poet Software Corp. 2 2 3 8.8 0.002 620 Pointwise Inc. 8 9 9 6.6 0.007 449 Portrait Software 4 4 8 105.2 0.006 480 PowerPlan Corp. 4 4 5 10.5 0.004 557 Practique 5 6 6 8.9 0.005 519 Premier Data Services 5 5 7 22.2 0.005 505 Prescient Systems 7 7 8 4.0 0.006 483 Previsor 8 10 11 9.4 0.009 423 Primavera Systems Inc. 113 122 135 10.9 0.106 98 Princeton Financial Sys. Inc. 40 42 47 12.3 0.037 196 proALPHA Software AG 29 25 33 32.0 0.026 249 Procurestaff 5 6 6 9.3 0.005 516 Prodacapo 2 3 3 8.9 0.003 601 ProfitLine 3 4 5 10.5 0.004 559 Progress Software Corp. 2 2 2 2.6 0.002 631 Promantek 2 3 3 9.4 0.003 600 ProQuest 5 6 6 10.5 0.005 522 PROS Pricing Solutions 19 32 43 34.4 0.034 209 ProVantage Software Inc. 3 3 3 4.5 0.003 596 Psipenta Software Systems GmbH 33 35 41 18.6 0.032 216 PTC 644 729 704 -3.4 0.552 22 PurchasingNet Inc. 16 20 23 15.0 0.018 296 QAD Inc. 174 175 190 8.4 0.149 73

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Quadramed 95 95 101 6.6 0.080 125 Quadrem 20 24 40 66.7 0.031 224 QuickArrow 6 8 8 4.5 0.007 468 RainMaker Software 1 2 3 4.5 0.002 616 Ramco Systems – 5 5 7.5 0.004 552 Rapt 7 8 10 25.0 0.008 439 ReadSoft 37 43 53 23.8 0.041 185 Realization Technologies 15 15 16 8.8 0.013 351 Red Hat Inc. 2 2 3 28.8 0.002 609 RedEye 2 3 3 9.2 0.002 607 RedPrairie Corp. 24 26 29 10.0 0.022 265 Refresh Software 2 4 4 13.9 0.003 576 Replicon 8 10 11 9.6 0.009 422 Responsys 8 8 15 76.7 0.012 379 Reval 4 6 11 83.3 0.009 421 Revionics 7 8 9 12.5 0.007 456 Reynolds & Reynolds 500 500 542 8.3 0.425 30 RightNow Technologies Inc. 68 86 87 0.9 0.068 142 Roadmap Technologies Inc. 2 2 3 10.1 0.002 611 Rocket Software 9 10 11 13.0 0.009 419 S1 71 73 78 6.7 0.061 159 SABA 70 64 75 17.2 0.059 163 Sage Group 1,719 1,869 2,172 16.2 1.702 7 Salesforce.com 281 452 616 36.4 0.483 25 SAP 7,265 7,968 9,503 19.3 7.449 2 Sapiens USA Inc. 1 1 1 -2.8 0.001 640 SAS 364 425 489 15.1 0.384 32 ScheduleSoft 6 4 4 9.4 0.003 575 SciQuest 4 6 7 10.5 0.005 506 SDL International 51 72 82 13.5 0.064 152 SDL Tridion 17 21 31 51.4 0.025 253 Sedona Corp. 1 1 1 -42.8 0.001 646 Selectica Inc. 18 12 8 -28.3 0.007 470 Selligent 8 11 14 23.5 0.011 388 Sendmail 23 23 36 54.5 0.028 234 SERENA Software 15 14 15 3.7 0.011 380 ServiceBench 5 6 6 7.5 0.005 512 Servigistics 14 15 16 7.3 0.013 353 SHL Group 33 40 44 10.0 0.034 203 Siemens 2,964 3,119 3,378 8.3 2.648 4 Silicon Graphics 7 5 5 10.2 0.004 540 SilkRoad 6 12 13 9.4 0.010 394 Silver Net Computer Systems Ltd. 4 5 5 7.6 0.004 553 Silvon Software 10 11 12 8.8 0.009 416 SimCorp 90 112 144 28.6 0.113 93 Sitescape 8 10 15 50.0 0.012 376 SkillSoft 109 111 120 8.1 0.094 110

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Skywire 78 78 86 9.4 0.067 143 SmartOps Corp. 8 8 9 5.9 0.007 460 SmartSignal Corp. 16 17 19 7.1 0.015 330 SmartSoftware Inc. 2 3 3 7.3 0.003 603 Smyth Systems 8 7 7 3.9 0.006 497 Softbrain Co. Ltd. 19 20 21 4.0 0.016 306 Softbrands 54 59 79 34.5 0.062 157 SofTech Inc. 5 4 4 -7.0 0.003 578 SoftM Software und Beratung AG 23 24 28 19.0 0.022 267 Soft-Power Corp. 7 8 9 14.4 0.007 457 Softscape 17 15 17 11.3 0.013 348 Software AG 5 – – NA – NA Software Innovation ASA 17 18 24 36.7 0.019 286 SonicRecruit 2 3 5 81.8 0.004 545 Sopheon 6 7 8 25.0 0.006 473 Sophis 10 20 21 6.7 0.017 304 Spectrum 14 15 10 -34.2 0.008 434 SPSS 34 36 36 -1.4 0.028 235 SS&C Technologies 106 128 148 15.5 0.116 91 STAR AG 4 5 6 18.3 0.004 534 StepStone 24 34 46 36.4 0.036 198 Sterling Commerce 40 46 96 108.0 0.075 131 StrataGen Systems Inc. 6 7 7 10.1 0.006 498 Successfactors 8 20 43 115.0 0.034 210 Sumisho Computer Systems Corp. 39 41 43 3.6 0.033 212 SumTotal 42 72 83 15.4 0.065 148 Sun Microsystems 264 293 294 0.4 0.231 48 SunGard 1,209 1,324 1,406 6.2 1.102 13 SuperOffice ASA 32 35 43 21.6 0.034 211 Supplychain Connect 3 4 4 10.5 0.003 583 SupplyOn 12 15 19 26.7 0.015 328 Sweda 9 9 9 4.5 0.007 451 Swisslog 102 109 132 20.6 0.103 102 Sybase 23 24 24 -0.5 0.019 291 Symantec 6 7 – -100.0 – NA SymphonyRPM 3 3 – -100.0 – NA Synopsys 943 1,042 1,153 10.7 0.904 16 Synygy 32 48 42 -12.5 0.033 215 Syspro 20 22 24 9.3 0.018 294 Systran SA 11 8 11 27.4 0.008 428 Tagetik 8 10 12 15.7 0.009 418 Take Solutions (ClearOrbit) 9 11 12 9.8 0.009 412 Taleo 63 79 105 32.4 0.082 120 Tavant Technologies 10 11 12 7.5 0.010 410 Tecsys Inc. 9 13 13 1.4 0.010 402 TEDS 13 13 14 6.6 0.011 385 TekSoft Inc. 4 4 4 3.9 0.003 577

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Temenos 111 153 225 47.3 0.176 61 Tenrox 12 16 20 25.0 0.016 310 Teradata 54 61 68 12.5 0.054 172 Think3 28 28 31 8.2 0.024 255 Thomson Reuters 134 162 182 12.2 0.143 76 TIBCO Inc. 13 11 12 17.0 0.010 409 Tibersoft 3 4 4 10.5 0.003 582 Timecentre 15 16 18 10.6 0.014 335 Tmax Soft 0 0 0 7.3 0.000 650 Tomax Corp. 35 36 37 3.9 0.029 232 ToolsGroup 9 9 9 5.7 0.007 453 Top Image Systems 13 16 20 20.4 0.015 322 Toshiba Solutions Corp. 11 12 12 3.6 0.010 407 TOTVS 100 137 86 -37.4 0.067 144 Touchpaper Software 6 7 7 7.1 0.006 492 TOWER Software 17 23 34 49.1 0.027 240 Tradebeam 22 22 24 7.3 0.019 293 TRADEPAQ Corp. 7 8 8 11.2 0.007 467 Transware 5 5 6 27.7 0.005 513 Trintech Group PLC 17 14 17 16.1 0.013 349 Triple Point Technology 13 14 21 49.2 0.016 305 TSS 2 2 1 -34.3 0.001 636 TXT e-Solutions 10 10 13 21.3 0.010 404 Tyler Technologies 94 111 131 18.1 0.103 103 UFIDA 66 73 83 13.9 0.065 146 Ultimate Software 68 83 101 22.0 0.080 124 Ultimus 0 – – NA – NA Unanet Technologies 2 3 3 10.5 0.002 606 Unica Corp. 52 65 80 24.1 0.063 154 Unicorn HRO 11 12 13 8.3 0.010 399 Unisys 133 125 123 -1.7 0.096 106 Unit4 Agresso NV 212 238 271 14.0 0.212 52 Unitime 5 6 6 9.4 0.005 514 update software AG 22 25 29 20.4 0.023 259 UPS Logistics Technologies 30 34 38 11.2 0.030 229 Upsidesoft 8 10 11 9.2 0.009 424 Vcampus 4 5 5 2.0 0.004 546 VCG 4 6 7 9.4 0.005 509 Vendavo 7 8 10 25.0 0.008 435 Ventyx 119 101 120 19.3 0.094 109 Verint Systems 209 374 458 22.4 0.359 33 VeriSign Inc. 8 8 – -100.0 – NA Versata 65 72 78 8.5 0.061 158 Versys 3 3 3 5.1 0.002 608 Vertex Inc. 5 6 10 66.7 0.008 436 ViaPeople 1 2 2 9.4 0.002 628 Viewpoint Construction Software 6 6 6 4.5 0.005 518

Worldwide Application Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 2005 2006 2007 Growth (%) Share (%) 2007 Rank Vignette 145 147 138 -5.7 0.108 95 ViryaNet Ltd. 4 4 4 1.0 0.003 581 Visibility 5 5 6 14.0 0.004 532 Visiprise 3 3 4 5.4 0.003 594 Visma ASA 155 169 198 17.1 0.155 68 Visual Sciences 38 57 75 32.2 0.059 161 Vivendi 526 696 1,156 66.1 0.906 15 Vivisimo 9 10 15 50.7 0.012 365 Vurv Technology 10 15 20 35.1 0.016 313 Wall Street Systems 54 80 75 -6.5 0.059 164 WebTrends 51 74 80 7.8 0.063 155 Win Estimator Inc. 11 12 10 -16.7 0.008 433 Wizart 3 4 5 24.0 0.004 561 WorkForce Software 8 9 10 9.4 0.008 430 Works Applications Co. Ltd. 67 87 90 3.7 0.071 139 Workscape 15 20 30 50.0 0.024 257 Workstream 27 29 26 -9.4 0.020 277 xTuple 2 4 4 6.2 0.003 569 Yahoo! (Zimbra) – 35 75 114.3 0.059 162 Yardi 40 50 53 5.1 0.041 186 Zilliant Inc. 5 7 6 -19.0 0.004 537 Zycus 5 6 6 10.5 0.005 521 ZyLAB North America LLC 12 14 16 14.3 0.013 357 Subtotal 77,342 85,363 97,534 14.3 76.452 Other 26,346 27,707 30,042 8.4 23.548 Total 103,687 113,070 127,576 12.8 100.000

Source: IDC, 2008

TABLE 10

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) 3M 24.70 0.036 1.04 0.002 0.26 0.002 26.00 0.020 4CS 9.68 0.014 – – – – 9.68 0.008 Abacus Research AG – – 18.90 0.043 – – 18.90 0.015 ABB Ltd. 33.48 0.049 33.48 0.077 16.74 0.107 83.71 0.066 Able Commerce 3.50 0.005 – – – – 3.50 0.003 Accela 20.00 0.029 – – – – 20.00 0.016 Accelrys 21.73 0.032 9.84 0.023 9.43 0.060 41.00 0.032 Accountpro 4.63 0.007 – – – – 4.63 0.004 Accruent 28.00 0.041 – – – – 28.00 0.022 Actek 5.94 0.009 – – – – 5.94 0.005 Activant Solutions Inc. 304.58 0.446 6.22 0.014 – – 310.80 0.244 Active Voice 16.43 0.024 9.61 0.022 4.96 0.032 31.00 0.024 Activision Inc. 91.27 0.134 58.36 0.133 – – 149.63 0.117 Actuate Corp. 7.80 0.011 4.55 0.010 0.65 0.004 13.00 0.010 Acxiom Digital 31.29 0.046 7.82 0.018 – – 39.11 0.031 ADAM Software – – 2.59 0.006 – – 2.59 0.002 Adexa 9.72 0.014 – – 20.65 0.132 30.37 0.024 Aditro Group – – 105.40 0.241 – – 105.40 0.083 Adobe 1,134.96 1.663 780.29 1.785 449.26 2.881 2,364.50 1.853 ADP 268.04 0.393 34.47 0.079 2.49 0.016 305.00 0.239 Advanced Data Exchange 8.52 0.012 – – – – 8.52 0.007 Advent Software 142.12 0.208 19.38 0.044 – – 161.50 0.127 Aim Technology 6.56 0.010 – – – – 6.56 0.005 Akonix 9.38 0.014 0.71 0.002 0.10 0.001 10.20 0.008 Alcatel Lucent 40.27 0.059 26.33 0.060 10.84 0.070 77.44 0.061 Alchemy Software Development Ltd. 1.97 0.003 1.11 0.003 0.10 0.001 3.17 0.002 Aldata Solution 3.44 0.005 38.74 0.089 0.86 0.006 43.05 0.034 Algor Inc. 10.43 0.015 2.53 0.006 0.26 0.002 13.22 0.010 Algorithmics Inc. 32.60 0.048 59.84 0.137 7.56 0.048 100.00 0.078 Alibre Inc. 3.71 0.005 0.20 0.000 – – 3.90 0.003 Allegro Development Corp. 16.60 0.024 2.40 0.005 1.00 0.006 20.00 0.016 Allscripts 103.20 0.151 – – – – 103.20 0.081

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) AlmavivA – – 16.81 0.038 – – 16.81 0.013 Altair Engineering Inc. 23.54 0.034 2.94 0.007 2.94 0.019 29.42 0.023 Amano Cincinnati 10.49 0.015 1.31 0.003 1.31 0.008 13.11 0.010 Amdocs 228.65 0.335 102.75 0.235 5.49 0.035 336.90 0.264 American Software 45.76 0.067 2.95 0.007 0.49 0.003 49.20 0.039 Ansys Inc. 118.35 0.173 123.14 0.282 55.18 0.354 296.68 0.233 AnyDoc 8.42 0.012 1.49 0.003 – – 9.90 0.008 API Software 10.39 0.015 – – – – 10.39 0.008 APPGEN Business Software 14.48 0.021 0.53 0.001 – – 15.01 0.012 Apple 132.57 0.194 48.44 0.111 44.30 0.284 225.31 0.177 Applied Innovation Management 0.82 0.001 0.04 0.000 0.05 0.000 0.91 0.001 Applied Materials 4.27 0.006 2.91 0.007 12.23 0.078 19.42 0.015 Applied Systems Inc. 91.93 0.135 8.07 0.018 – – 100.00 0.078 Applied Voice & Speech Technologies 19.04 0.028 9.18 0.021 5.78 0.037 34.00 0.027 Aprimo Corp. 25.85 0.038 6.29 0.014 1.86 0.012 34.00 0.027 Aquitec International 4.13 0.006 2.22 0.005 – – 6.36 0.005 Arena 10.79 0.016 0.63 0.001 1.27 0.008 12.69 0.010 Argo Data Resource Corp. 19.93 0.029 – – – – 19.93 0.016 Argos Systems 0.39 0.001 0.21 0.000 – – 0.60 0.000 ARI Network 8.90 0.013 – – – – 8.90 0.007 Ariba Inc. 107.58 0.158 42.38 0.097 13.04 0.084 163.00 0.128 Art Technology Group 72.15 0.106 21.85 0.050 0.99 0.006 94.99 0.074 ASA International 10.92 0.016 8.18 0.019 – – 19.10 0.015 Ascentis 8.31 0.012 – – – – 8.31 0.007 ASCON – – 18.00 0.041 – – 18.00 0.014 ASG 48.44 0.071 13.86 0.032 2.52 0.016 64.81 0.051 Aspect Software 260.97 0.382 136.64 0.313 59.38 0.381 457.00 0.358 Aspen Technology 125.82 0.184 113.70 0.260 37.13 0.238 276.65 0.217 Assetlink 4.56 0.007 1.26 0.003 0.18 0.001 6.00 0.005 Astea International 15.61 0.023 3.83 0.009 0.76 0.005 20.20 0.016 Asure 17.50 0.026 – – – – 17.50 0.014 AT Kearney Procurement Solutions 9.20 0.013 1.97 0.005 1.97 0.013 13.15 0.010

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) ATOSS Software AG – – 20.00 0.046 – – 20.00 0.016 Atrion International 7.88 0.012 9.63 0.022 – – 17.50 0.014 Attachmate 6.08 0.009 2.99 0.007 0.58 0.004 9.65 0.008 Augeo Software 0.74 0.001 6.67 0.015 – – 7.41 0.006 Authoria 34.30 0.050 0.70 0.002 – – 35.00 0.027 Autodesk 601.52 0.881 655.12 1.498 360.69 2.313 1,617.32 1.268 Autonomy 187.55 0.275 109.50 0.250 8.55 0.055 305.60 0.240 Autotask 2.54 0.004 – – – – 2.54 0.002 Auto-trol Technology 3.28 0.005 1.90 0.004 0.21 0.001 5.39 0.004 Avaya Inc. 571.26 0.837 281.29 0.643 120.85 0.775 973.40 0.763 AVEVA Group 25.08 0.037 84.19 0.193 69.86 0.448 179.12 0.140 Avolent Inc. 7.20 0.011 – – 4.80 0.031 12.00 0.009 Ayanova (Ground Zero Tech-Works Inc.) 2.48 0.004 – – – – 2.48 0.002 BancTec Inc. 70.80 0.104 26.68 0.061 5.13 0.033 102.61 0.080 BasWare 3.46 0.005 65.74 0.150 – – 69.20 0.054 Baxter Planning Systems Inc. 3.76 0.006 3.59 0.008 0.65 0.004 8.00 0.006 BEA 96.50 0.141 67.72 0.155 31.51 0.202 195.74 0.153 Beeline 44.05 0.065 0.51 0.001 0.13 0.001 44.69 0.035 Bentley Systems Inc. 173.65 0.254 154.61 0.354 48.75 0.313 377.00 0.296 Beta Systems Software AG – – 45.29 0.104 – – 45.29 0.036 Bison – – 13.00 0.030 – – 13.00 0.010 Blackbaud 144.02 0.211 11.02 0.025 2.36 0.015 157.40 0.123 Blackboard 166.14 0.243 31.95 0.073 14.91 0.096 213.00 0.167 BlueCielo ECM Solutions 3.02 0.004 6.43 0.015 0.60 0.004 10.05 0.008 Bluegarden AS – – 17.40 0.040 – – 17.40 0.014 BMC 3.95 0.006 0.97 0.002 0.98 0.006 5.90 0.005 Bond International 8.18 0.012 16.90 0.039 1.32 0.008 26.40 0.021 Boothroyd Dewhurst 0.98 0.001 0.24 0.001 – – 1.22 0.001 Borland Software Corp. 3.15 0.005 0.56 0.001 – – 3.70 0.003 Bottomline Technologies 45.19 0.066 35.74 0.082 1.23 0.008 82.17 0.064 BravoSolution 6.07 0.009 0.63 0.001 – – 6.70 0.005 Broadlane 15.88 0.023 – – – – 15.88 0.012

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) BroadVision 30.05 0.044 10.52 0.024 3.26 0.021 43.83 0.034 Brooks Automation 28.43 0.042 21.10 0.048 42.19 0.271 91.72 0.072 Business Objects 69.58 0.102 93.32 0.213 4.89 0.031 167.80 0.132 CA 84.31 0.124 62.98 0.144 4.81 0.031 152.10 0.119 Cactus Commerce 6.09 0.009 – – – – 6.09 0.005 Cadence Design Systems 699.01 1.024 270.86 0.619 499.63 3.204 1,469.50 1.152 Callidus Software Inc. 49.43 0.072 11.56 0.026 3.21 0.021 64.20 0.050 Calypso Technology 9.68 0.014 9.68 0.022 4.84 0.031 24.20 0.019 Cambar Software 6.00 0.009 – – – – 6.00 0.005 Campus Management Corp. 25.00 0.037 – – – – 25.00 0.020 Camstar Systems Inc. 34.17 0.050 11.39 0.026 11.39 0.073 56.95 0.045 Captaris Inc. 8.84 0.013 2.12 0.005 1.46 0.009 12.41 0.010 CAS GmbH 8.93 0.013 14.03 0.032 2.55 0.016 25.50 0.020 CCH 40.28 0.059 – – – – 40.28 0.032 CCK Financial Solutions Ltd. – – – – 6.82 0.044 6.82 0.005 CDC Corp. 85.97 0.126 46.30 0.106 3.79 0.024 136.07 0.107 Cegedim 85.48 0.125 110.36 0.252 20.56 0.132 216.40 0.170 Cegid SA 1.85 0.003 181.24 0.414 1.85 0.012 184.94 0.145 Celerity Solutions 1.41 0.002 – – – – 1.41 0.001 Centive Systems 20.70 0.030 2.30 0.005 – – 23.00 0.018 Centric Software 5.84 0.009 2.50 0.006 – – 8.34 0.007 Ceridian 73.76 0.108 8.19 0.019 – – 81.95 0.064 Cerner 644.01 0.943 55.99 0.128 – – 700.00 0.549 Cezanne Software Inc. 0.62 0.001 7.14 0.016 0.04 0.000 7.80 0.006 CGI Information Systems 107.04 0.157 4.60 0.011 3.45 0.022 115.10 0.090 Channel Advisor 13.26 0.019 – – – – 13.26 0.010 Chase Cooper – – 12.88 0.029 3.22 0.021 16.10 0.013 Check Free Corp. 133.58 0.196 7.67 0.018 3.88 0.025 145.13 0.114 Chordiant Software Inc. 47.67 0.070 41.79 0.096 0.42 0.003 89.88 0.070 Cimatron 3.93 0.006 17.11 0.039 7.66 0.049 28.70 0.022 Cincom Systems Inc. 39.61 0.058 41.49 0.095 13.20 0.085 94.30 0.074 Cisco 790.88 1.159 342.10 0.782 41.00 0.263 1,173.98 0.920

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Citrix 26.20 0.038 22.09 0.051 5.11 0.033 53.41 0.042 Cleo 9.95 0.015 – – – – 9.95 0.008 Click Commerce Inc. 91.85 0.135 16.09 0.037 4.92 0.032 112.87 0.088 Clickability 3.70 0.005 – – – – 3.70 0.003 ClickSoftware 21.66 0.032 6.25 0.014 1.54 0.010 29.45 0.023 CMstat 2.51 0.004 – – – – 2.51 0.002 CNC Software Inc. 5.38 0.008 2.72 0.006 – – 8.10 0.006 COA Solutions 2.45 0.004 79.35 0.181 – – 81.80 0.064 CODA 10.04 0.015 57.11 0.131 3.36 0.022 70.50 0.055 Cognology – – – – 2.28 0.015 2.28 0.002 Cognos 113.81 0.167 79.44 0.182 10.35 0.066 203.60 0.160 Coheris 0.21 0.000 33.97 0.078 0.03 0.000 34.21 0.027 CombineNet 3.72 0.005 2.10 0.005 0.18 0.001 6.00 0.005 CommercialWare Inc. 1.06 0.002 0.12 0.000 – – 1.18 0.001 CommuniGate Systems 13.65 0.020 17.55 0.040 7.80 0.050 39.00 0.031 ComOps – – – – 0.77 0.005 0.77 0.001 Compiere 2.18 0.003 2.21 0.005 1.09 0.007 5.48 0.004 Computational Engineering Intl. Inc. 1.32 0.002 1.36 0.003 1.32 0.008 4.00 0.003 Computer Corp. of America (CCA) 0.84 0.001 5.04 0.012 2.56 0.016 8.44 0.007 Compuware 19.77 0.029 6.66 0.015 1.78 0.011 28.20 0.022 Concur Technologies 156.22 0.229 16.11 0.037 1.21 0.008 173.54 0.136 Consona 92.81 0.136 14.61 0.033 13.19 0.085 120.61 0.095 Constellation Software Inc. 151.30 0.222 15.30 0.035 3.40 0.022 170.00 0.133 Convera 12.61 0.018 5.82 0.013 0.97 0.006 19.40 0.015 Convergys 165.08 0.242 10.92 0.025 – – 176.00 0.138 Corel Corp. 150.80 0.221 81.13 0.186 18.57 0.119 250.50 0.196 Coremetrics 14.25 0.021 1.09 0.002 0.23 0.001 15.57 0.012 Cornerstone OnDemand 5.00 0.007 – – – – 5.00 0.004 Critical Path 8.25 0.012 12.75 0.029 4.00 0.026 25.00 0.020 Crown Computing – – 7.34 0.017 – – 7.34 0.006 CSB-System AG 3.88 0.006 12.61 0.029 2.91 0.019 19.40 0.015 Cybershift 14.13 0.021 1.28 0.003 0.59 0.004 16.00 0.013

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) CyberSource 2.00 0.003 0.37 0.001 0.12 0.001 2.50 0.002 Cybozu Inc. 0.32 0.000 – – 35.11 0.225 35.43 0.028 Daptiv 12.32 0.018 3.08 0.007 – – 15.40 0.012 Dassault Systemes 482.05 0.706 673.38 1.540 330.73 2.121 1,486.17 1.165 Data I/O 1.78 0.003 1.43 0.003 1.73 0.011 4.94 0.004 Datasul 94.82 0.139 – – – – 94.82 0.074 Datawatch Corp. 0.36 0.001 0.14 0.000 – – 0.50 0.000 DATEV eG – – 323.20 0.739 – – 323.20 0.253 Day Software 6.84 0.010 8.08 0.018 0.62 0.004 15.55 0.012 Deltek Systems 180.14 0.264 9.50 0.022 0.36 0.002 190.00 0.149 DemandTec 38.00 0.056 2.00 0.005 – – 40.00 0.031 Descartes Systems 35.59 0.052 13.03 0.030 1.50 0.010 50.13 0.039 Digital River Inc. 63.92 0.094 31.19 0.071 7.99 0.051 103.10 0.081 DO2 Technologies 6.68 0.010 0.74 0.002 – – 7.42 0.006 Document Sciences Corp. 22.74 0.033 3.29 0.008 1.37 0.009 27.40 0.021 DoubleClick Inc. 51.00 0.075 – – – – 51.00 0.040 DSC 5.59 0.008 – – 19.74 0.127 25.33 0.020 Dun & Bradstreet (D&B Sls & Mktg. Sols) 46.50 0.068 – – – – 46.50 0.036 Duzon Digitalware 3.42 0.005 – – 16.24 0.104 19.66 0.015 Dynamacs 7.69 0.011 – – – – 7.69 0.006 Eclipsys 300.00 0.439 – – – – 300.00 0.235 Econintel Treasury Systems Inc. 1.60 0.002 1.06 0.002 – – 2.66 0.002 Ecteon 9.95 0.015 – – – – 9.95 0.008 EDB Gruppen A/S – – 22.70 0.052 – – 22.70 0.018 Edifecs 7.74 0.011 – – – – 7.74 0.006 eGain 7.43 0.011 5.94 0.014 0.14 0.001 13.50 0.011 Ektron 16.24 0.024 2.29 0.005 0.57 0.004 19.10 0.015 Elcom International Inc. 2.63 0.004 – – – – 2.63 0.002 Electronic Arts 271.70 0.398 234.41 0.536 26.64 0.171 532.75 0.418 Element K 9.76 0.014 4.18 0.010 – – 13.94 0.011 Emagia 6.86 0.010 – – – – 6.86 0.005 EMC 335.22 0.491 211.00 0.483 16.31 0.105 562.53 0.441

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Emergis 43.78 0.064 – – – – 43.78 0.034 Emptoris 21.78 0.032 11.22 0.026 – – 33.00 0.026 Endeca 71.21 0.104 9.94 0.023 1.66 0.011 82.80 0.065 Engineous Software Inc. 3.10 0.005 1.44 0.003 3.03 0.019 7.57 0.006 Enigma 12.92 0.019 3.23 0.007 – – 16.15 0.013 Enterprise Incentive Software Inc. 7.50 0.011 – – – – 7.50 0.006 Enterworks 1.84 0.003 – – 0.04 0.000 1.88 0.001 Entigo 6.60 0.010 0.77 0.002 0.45 0.003 7.82 0.006 Entomo 6.62 0.010 – – – – 6.62 0.005 Epicor Software Corp. 180.24 0.264 66.00 0.151 23.47 0.151 269.70 0.211 ePlus 10.72 0.016 – – – – 10.72 0.008 Eqos 3.65 0.005 – – – – 3.65 0.003 ERI Bancaire SA 4.71 0.007 48.28 0.110 5.89 0.038 58.87 0.046 ESA Software Spa – – 32.20 0.074 – – 32.20 0.025 Escalate Retail 36.07 0.053 3.89 0.009 0.81 0.005 40.77 0.032 e-Spirit AG – – 5.10 0.012 – – 5.10 0.004 ESS 6.77 0.010 0.74 0.002 0.74 0.005 8.25 0.006 etrials 3.24 0.005 – – – – 3.24 0.003 EVER Group 0.26 0.000 12.74 0.029 – – 13.00 0.010 Everest Software Inc. 7.91 0.012 0.19 0.000 0.02 0.000 8.13 0.006 EXA Corp. 1.32 0.002 1.98 0.005 – – 3.30 0.003 Exact Holding NV 73.66 0.108 190.60 0.436 7.34 0.047 271.60 0.213 Excelergy Corp. 6.50 0.010 0.72 0.002 – – 7.22 0.006 Exigen 1.56 0.002 0.71 0.002 0.31 0.002 2.59 0.002 Expandable Software Inc. 5.70 0.008 – – – – 5.70 0.004 Experian 22.50 0.033 – – – – 22.50 0.018 Explorer Software Inc. 4.18 0.006 – – – – 4.18 0.003 Exstream 51.74 0.076 22.29 0.051 5.57 0.036 79.60 0.062 Eze Castle Software 6.75 0.010 – – – – 6.75 0.005 FaceTime Communications Inc. 7.70 0.011 1.13 0.003 0.18 0.001 9.00 0.007 Fair Isaac 497.93 0.729 76.65 0.175 19.61 0.126 594.19 0.466 Fast Search & Transfer Inc. 49.68 0.073 37.79 0.086 19.83 0.127 107.30 0.084

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) FatWire Software 10.00 0.015 10.00 0.023 5.00 0.032 25.00 0.020 Fidelity National 141.04 0.207 76.99 0.176 24.97 0.160 243.00 0.190 Fidessa 66.30 0.097 45.50 0.104 18.20 0.117 130.00 0.102 Fieldglass 7.88 0.012 0.87 0.002 – – 8.75 0.007 Financial Objects PLC 1.73 0.003 22.23 0.051 0.74 0.005 24.70 0.019 Financial Sciences Corp. 11.48 0.017 – – 0.60 0.004 12.08 0.009 Financial Software Systems 3.39 0.005 0.85 0.002 – – 4.23 0.003 Finestra – – 1.36 0.003 – – 1.36 0.001 FirePond Inc. 1.91 0.003 0.12 0.000 0.11 0.001 2.14 0.002 First Data (Peace Software) 6.30 0.009 – – 6.30 0.040 12.59 0.010 Firstwave Technologies Inc. 2.56 0.004 0.75 0.002 0.24 0.002 3.55 0.003 Fiserv 825.52 1.209 49.84 0.114 17.85 0.114 893.20 0.700 FlexiInternational Software 6.48 0.009 1.14 0.003 – – 7.62 0.006 Formula Telecom Solutions 2.96 0.004 0.74 0.002 – – 3.71 0.003 Foundation for Windows 8.51 0.012 – – – – 8.51 0.007 Four Soft Ltd. 0.24 0.000 1.92 0.004 0.24 0.002 2.39 0.002 FrontRange Solutions Inc. 13.06 0.019 5.71 0.013 1.63 0.010 20.41 0.016 FRS 4.31 0.006 4.31 0.010 2.15 0.014 10.77 0.008 Fujitsu 38.17 0.056 48.54 0.111 653.62 4.192 740.33 0.580 Gateway Systems Inc. 4.20 0.006 – – – – 4.20 0.003 Gavel and Gown Software 7.59 0.011 0.95 0.002 0.95 0.006 9.48 0.007 Gemmar Systems International Inc. 1.56 0.002 – – – – 1.56 0.001 Genesys Conferencing 22.10 0.032 10.20 0.023 1.70 0.011 34.00 0.027 Genesys Software Systems Inc. 5.29 0.008 – – – – 5.29 0.004 Genesys Telecommunications Laboratories 154.70 0.227 146.92 0.336 65.68 0.421 367.30 0.288 Gensym 4.01 0.006 1.48 0.003 0.97 0.006 6.47 0.005 GFI Informatique – – 109.66 0.251 – – 109.66 0.086 GHX 45.00 0.066 – – – – 45.00 0.035 Global 360 17.36 0.025 8.40 0.019 2.24 0.014 28.00 0.022 Global Software Inc. 38.68 0.057 5.32 0.012 – – 44.00 0.034 GlobeNet Technologies 3.85 0.006 – – – – 3.85 0.003 GMT Corp. 12.91 0.019 1.52 0.003 0.76 0.005 15.19 0.012

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Google Inc. 64.04 0.094 40.44 0.092 7.86 0.050 112.34 0.088 Gores Technology Group 15.25 0.022 – – – – 15.25 0.012 Graphisoft 6.16 0.009 27.12 0.062 6.48 0.042 39.76 0.031 Gruppo Formula Spa 0.21 0.000 19.28 0.044 0.00 0.000 19.50 0.015 GSE Systems 1.66 0.002 1.68 0.004 1.43 0.009 4.77 0.004 Haansoft Inc. – – – – 23.93 0.154 23.93 0.019 Halo Technology 3.88 0.006 4.80 0.011 0.55 0.004 9.23 0.007 Halogen Software 20.00 0.029 – – – – 20.00 0.016 Handysoft Corp. – – – – 14.23 0.091 14.23 0.011 HansaWorld Ltd. 0.33 0.000 15.91 0.036 0.16 0.001 16.40 0.013 HardDollar 2.29 0.003 1.71 0.004 0.49 0.003 4.49 0.004 Healthvision 21.99 0.032 – – – – 21.99 0.017 Healy Hudson – – 5.94 0.014 – – 5.94 0.005 High Line Corp. 7.42 0.011 – – – – 7.42 0.006 Hitachi – – – – 222.08 1.424 222.08 0.174 HK Systems 22.64 0.033 1.19 0.003 – – 23.83 0.019 HodesIQ 4.38 0.006 – – – – 4.38 0.003 Hogia Group – – 32.70 0.075 – – 32.70 0.026 HP 27.97 0.041 17.22 0.039 5.71 0.037 50.90 0.040 HR Access 2.42 0.004 31.05 0.071 1.04 0.007 34.50 0.027 HR Technologies 3.85 0.006 – – – – 3.85 0.003 Hubwoo – – 38.80 0.089 – – 38.80 0.030 Hyland Software 86.93 0.127 1.46 0.003 3.11 0.020 91.50 0.072 Hyphen 15.06 0.022 0.31 0.001 – – 15.38 0.012 Hyphen Solutions 47.34 0.069 – – – – 47.34 0.037 i2 Technologies 81.12 0.119 28.39 0.065 25.69 0.165 135.20 0.106 IBM 1,147.69 1.681 985.23 2.253 360.19 2.310 2,493.12 1.954 IBM Application Solutions 1.08 0.002 3.96 0.009 59.89 0.384 64.93 0.051 IBS AB 6.68 0.010 58.54 0.134 7.41 0.048 72.63 0.057 ICG Commerce 14.25 0.021 0.75 0.002 – – 15.00 0.012 iCIMS 17.00 0.025 – – – – 17.00 0.013 Idiom Inc. 26.66 0.039 6.66 0.015 – – 33.32 0.026

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) IFS Industrial and Financial Systems AB 20.94 0.031 135.57 0.310 11.69 0.075 168.20 0.132 IHS Energy Group 5.61 0.008 0.62 0.001 – – 6.23 0.005 ILOG Inc. 3.44 0.005 0.15 0.000 0.11 0.001 3.70 0.003 iMany 9.50 0.014 0.40 0.001 0.10 0.001 10.00 0.008 Immersive Design Inc. 0.70 0.001 0.30 0.001 – – 1.00 0.001 Infogrames 14.97 0.022 49.88 0.114 6.41 0.041 71.26 0.056 Infor 904.79 1.326 735.04 1.681 128.32 0.823 1,768.14 1.386 Informatica 0.78 0.001 0.20 0.000 0.02 0.000 1.00 0.001 Inforsud – – 9.60 0.022 – – 9.60 0.008 InMarketing Group 3.85 0.006 – – – – 3.85 0.003 Innotas 6.00 0.009 – – – – 6.00 0.005 Innovation Asset Group 2.21 0.003 – – – – 2.21 0.002 Innovation Group 16.10 0.024 49.00 0.112 4.90 0.031 70.00 0.055 Inovis 43.74 0.064 0.31 0.001 0.31 0.002 44.36 0.035 Insightful Corp. 0.21 0.000 0.09 0.000 – – 0.30 0.000 INSTEC 2.09 0.003 – – – – 2.09 0.002 Integrated Decisions & Systems Inc.(IDeaS) 5.00 0.007 – – – – 5.00 0.004 Integrated Support Systems 3.88 0.006 3.95 0.009 1.95 0.013 9.78 0.008 Interactive Intelligence Inc. 75.24 0.110 15.84 0.036 7.92 0.051 99.00 0.078 InterCall 20.88 0.031 3.12 0.007 – – 24.00 0.019 Intershop Communications 8.03 0.012 13.25 0.030 0.21 0.001 21.50 0.017 InterSystems Corp. 6.15 0.009 7.96 0.018 3.98 0.026 18.10 0.014 Intervoice 109.50 0.160 33.00 0.075 7.50 0.048 150.00 0.118 Interwise (AT&T) 33.00 0.048 – – – – 33.00 0.026 Interwoven 124.90 0.183 45.81 0.105 19.39 0.124 190.10 0.149 Intime Solutions 13.04 0.019 1.53 0.004 0.77 0.005 15.34 0.012 IntraLearn Software Corp. 4.63 0.007 1.16 0.003 – – 5.79 0.005 IntraLinks 77.90 0.114 13.30 0.030 3.80 0.024 95.00 0.074 Intuit 1,524.41 2.233 42.45 0.097 14.15 0.091 1,581.00 1.239 Invensys 128.30 0.188 98.50 0.225 41.60 0.267 268.40 0.210 Investment Technology Group 12.50 0.018 – – – – 12.50 0.010 IPS of Boston 4.00 0.006 – – – – 4.00 0.003

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Ipswitch 3.90 0.006 0.40 0.001 0.49 0.003 4.80 0.004 IQ Navigator 20.00 0.029 – – – – 20.00 0.016 IRIS Group Ltd. 0.32 0.000 36.48 0.083 – – 36.80 0.029 IRIS Integrated Risk Management 2.60 0.004 16.88 0.039 6.49 0.042 25.97 0.020 IronCAD 2.54 0.004 0.30 0.001 0.15 0.001 2.99 0.002 Island Pacific Inc. 15.16 0.022 – – – – 15.16 0.012 iSoft PLC – – 127.80 0.292 14.20 0.091 142.00 0.111 ISU Ubcare – – – – 14.36 0.092 14.36 0.011 Itron Inc. 99.00 0.145 5.50 0.013 5.50 0.035 110.00 0.086 Jabber 7.46 0.011 0.74 0.002 – – 8.20 0.006 Jack Henry & Associates 260.77 0.382 2.63 0.006 – – 263.40 0.206 JDA Software Group Inc. 144.53 0.212 75.04 0.172 32.23 0.207 251.80 0.197 Jeeves Information Systems 0.17 0.000 16.01 0.037 0.33 0.002 16.50 0.013 Jenzabar 36.00 0.053 4.00 0.009 – – 40.00 0.031 Jeppesen 6.47 0.009 17.18 0.039 1.25 0.008 24.90 0.020 Jesta I.S. 39.08 0.057 9.73 0.022 – – 48.81 0.038 Jive Software 8.25 0.012 2.20 0.005 0.55 0.004 11.00 0.009 JP Morgan 73.06 0.107 28.23 0.065 15.39 0.099 116.68 0.091 Justsystem Corp. – – – – 68.80 0.441 68.80 0.054 Kaba Benzing 22.80 0.033 15.20 0.035 – – 38.00 0.030 Kamakura Corp. 3.24 0.005 3.24 0.007 6.48 0.042 12.95 0.010 Kana 38.63 0.057 9.31 0.021 1.06 0.007 49.00 0.038 Kenexa 136.55 0.200 10.89 0.025 1.56 0.010 149.00 0.117 Ketera 3.32 0.005 – – – – 3.32 0.003 Kewill Systems PLC 19.04 0.028 22.97 0.053 0.30 0.002 42.30 0.033 Kinaxis 20.95 0.031 1.15 0.003 6.60 0.042 28.70 0.022 Kingdee 4.14 0.006 – – 48.55 0.311 52.69 0.041 Kofax 75.84 0.111 46.33 0.106 12.23 0.078 134.40 0.105 Kronos Inc. 341.78 0.501 23.65 0.054 9.57 0.061 375.00 0.294 KSS 10.00 0.015 – – – – 10.00 0.008 Kubotek 2.70 0.004 – – – – 2.70 0.002 Kyriba 3.00 0.004 3.75 0.009 0.75 0.005 7.50 0.006

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Lagan 5.00 0.007 15.00 0.034 – – 20.00 0.016 Language Engineering Corp. 0.42 0.001 – – 3.75 0.024 4.17 0.003 Lanner Group Inc. 1.49 0.002 2.84 0.007 0.48 0.003 4.82 0.004 Lawson Software 221.32 0.324 142.29 0.325 23.69 0.152 387.30 0.304 LearnFrame 19.60 0.029 8.40 0.019 – – 28.00 0.022 Lefebvre Software – – 17.43 0.040 – – 17.43 0.014 Levi, Ray & Shoup Inc. 8.50 0.012 – – – – 8.50 0.007 LexisNexis Interface Software Inc. 20.17 0.030 3.65 0.008 0.24 0.002 24.07 0.019 LMS International 3.97 0.006 7.57 0.017 6.49 0.042 18.03 0.014 LogicTools Inc. 2.63 0.004 2.24 0.005 0.65 0.004 5.52 0.004 Logility Inc. 34.09 0.050 6.99 0.016 2.62 0.017 43.70 0.034 Lombard Risk Management 1.13 0.002 4.51 0.010 1.88 0.012 7.51 0.006 Maconomy A/S 2.36 0.003 20.14 0.046 – – 22.50 0.018 Macro 4 1.44 0.002 8.16 0.019 – – 9.60 0.008 Main Sequence 3.28 0.005 – – – – 3.28 0.003 MaintenanceNet 6.63 0.010 – – – – 6.63 0.005 Mamut ASA – – 42.50 0.097 – – 42.50 0.033 Management Controls Inc. 4.56 0.007 – – – – 4.56 0.004 Management Dynamics 14.83 0.022 1.36 0.003 0.85 0.005 17.04 0.013 Manhattan Associates 175.85 0.258 22.74 0.052 10.01 0.064 208.60 0.164 Maritz Incentives 15.08 0.022 2.20 0.005 – – 17.28 0.014 Matrikon 11.30 0.017 4.10 0.009 4.60 0.030 20.00 0.016 Maxager 5.00 0.007 – – – – 5.00 0.004 Maximizer Software Inc. 11.04 0.016 3.12 0.007 1.34 0.009 15.50 0.012 Maximus 133.00 0.195 – – – – 133.00 0.104 Maxwell Systems 14.00 0.021 – – – – 14.00 0.011 MCA Solutions 4.21 0.006 4.02 0.009 0.73 0.005 8.95 0.007 MCBA 33.79 0.049 6.21 0.014 – – 40.00 0.031 McKessonHBOC 1,046.64 1.533 102.09 0.233 – – 1,148.73 0.900 McLaren Software 7.33 0.011 1.72 0.004 – – 9.05 0.007 MCS 6.70 0.010 2.93 0.007 0.29 0.002 9.93 0.008 Mediasurface 1.48 0.002 17.02 0.039 – – 18.50 0.015

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Medical Information Technology 191.10 0.280 3.90 0.009 – – 195.00 0.153 Medidata Solutions 2.92 0.004 0.83 0.002 0.42 0.003 4.17 0.003 Mentor Graphics 316.63 0.464 172.08 0.394 199.62 1.280 688.33 0.540 Mercado Software Inc. 11.70 0.017 1.30 0.003 – – 13.00 0.010 Merced Systems 7.66 0.011 – – – – 7.66 0.006 Meridian Systems 20.72 0.030 0.50 0.001 0.57 0.004 21.78 0.017 MessageLabs 1.81 0.003 4.43 0.010 0.47 0.003 6.71 0.005 Meta4 9.54 0.014 20.26 0.046 – – 29.80 0.023 Metavante Corp. 202.45 0.297 44.70 0.102 17.75 0.114 264.90 0.208 Micros Systems 236.68 0.347 120.28 0.275 31.04 0.199 388.00 0.304 Microsoft 8,777.05 12.858 5,919.75 13.539 1,951.16 12.514 16,647.96 13.049 Midland HR & Payroll Solutions – – 18.30 0.042 – – 18.30 0.014 Mincom Ltd. 55.03 0.081 8.16 0.019 17.84 0.114 81.03 0.064 Mindjet Corp. 30.40 0.045 6.08 0.014 1.52 0.010 38.00 0.030 Mirapoint 10.80 0.016 10.80 0.025 5.40 0.035 27.00 0.021 Missler Software 1.28 0.002 27.20 0.062 3.52 0.023 32.00 0.025 Misys 457.26 0.670 247.68 0.566 57.16 0.367 762.10 0.597 MIVA 15.06 0.022 – – – – 15.06 0.012 Moai Technologies Inc. 12.43 0.018 3.11 0.007 – – 15.53 0.012 Model N 10.80 0.016 1.20 0.003 – – 12.00 0.009 Moldflow Corp. 11.25 0.016 10.32 0.024 10.29 0.066 31.86 0.025 Motive Communications 22.99 0.034 4.08 0.009 2.04 0.013 29.11 0.023 MSC Software 30.49 0.045 32.77 0.075 31.44 0.202 94.70 0.074 Multima Corp. 2.34 0.003 0.41 0.001 – – 2.76 0.002 Murex 1.08 0.002 5.95 0.014 3.79 0.024 10.82 0.008 MYOB Ltd. 0.96 0.001 19.95 0.046 109.09 0.700 130.00 0.102 NASDAQ OMX 17.37 0.025 26.06 0.060 14.47 0.093 57.90 0.045 NEC 3.88 0.006 7.59 0.017 166.79 1.070 178.26 0.140 Nedstat – – 17.78 0.041 – – 17.78 0.014 Nemetschek 13.05 0.019 155.83 0.356 17.52 0.112 186.40 0.146 NetRatings Inc. 0.93 0.001 6.86 0.016 7.80 0.050 15.60 0.012 NetSuite 78.16 0.115 14.65 0.034 4.87 0.031 97.69 0.077

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) NETtime Solutions 5.13 0.008 – – – – 5.13 0.004 NeuSoft – – – – 26.98 0.173 26.98 0.021 Newtron – – 4.28 0.010 – – 4.28 0.003 Nextrials 1.57 0.002 – – – – 1.57 0.001 NICE SYSTEMS 160.05 0.234 87.30 0.200 43.65 0.280 291.00 0.228 Nobscot 2.56 0.004 – – – – 2.56 0.002 Nortel Networks 352.60 0.517 147.03 0.336 92.14 0.591 591.76 0.464 Northgate Information Solutions PLC 2.10 0.003 206.15 0.471 1.26 0.008 209.50 0.164 Novell 51.50 0.075 40.15 0.092 8.95 0.057 100.60 0.079 NOW Solutions LLC 5.26 0.008 0.22 0.000 – – 5.47 0.004 Nstein 7.98 0.012 4.77 0.011 0.52 0.003 13.26 0.010 Nuance Communications Inc. 440.80 0.646 71.63 0.164 38.57 0.247 551.00 0.432 Nuview Systems Inc. 19.54 0.029 – – – – 19.54 0.015 OBIC Business Consultants Co. Ltd. – – – – 68.09 0.437 68.09 0.053 OBIC Co. Ltd. – – – – 49.50 0.317 49.50 0.039 Omniture 97.46 0.143 26.34 0.060 7.90 0.051 131.70 0.103 Omniware – – 5.94 0.014 – – 5.94 0.005 One Network 6.40 0.009 1.60 0.004 – – 8.00 0.006 Online Resources Corp. 121.00 0.177 – – – – 121.00 0.095 OnStream Media 11.66 0.017 0.17 0.000 0.17 0.001 12.00 0.009 Onventis – – 14.97 0.034 – – 14.97 0.012 Open Solutions Inc. 117.08 0.172 – – – – 117.08 0.092 Open Systems Holding Corp. 16.02 0.023 0.68 0.002 0.50 0.003 17.21 0.013 Open Text Corp. 205.15 0.301 210.14 0.481 22.51 0.144 437.80 0.343 OpenAir 7.28 0.011 0.48 0.001 0.24 0.002 8.00 0.006 Openwave Systems Inc. 30.54 0.045 21.61 0.049 22.35 0.143 74.50 0.058 Optiant Inc. 4.42 0.006 1.10 0.003 – – 5.52 0.004 Optio Software 10.72 0.016 2.85 0.007 0.71 0.005 14.28 0.011 Oracle 3,734.56 5.471 2,031.34 4.646 729.10 4.676 6,495.00 5.091 OSISoft 14.40 0.021 5.38 0.012 2.15 0.014 21.93 0.017 Outcome 4.50 0.007 0.50 0.001 – – 5.00 0.004 P2 Energy Solutions 8.82 0.013 – – – – 8.82 0.007

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) PartsRiver-Saqqara 13.03 0.019 1.45 0.003 – – 14.48 0.011 Paychex 57.00 0.084 – – – – 57.00 0.045 PDG Software Inc. 2.69 0.004 – – – – 2.69 0.002 PDS 4.50 0.007 – – – – 4.50 0.004 Pearson 12.50 0.018 3.13 0.007 – – 15.63 0.012 PenSoft 11.66 0.017 – – – – 11.66 0.009 Penta Technologies 4.70 0.007 – – – – 4.70 0.004 Peopleclick 31.54 0.046 2.45 0.006 1.05 0.007 35.04 0.027 PeopleNet 4.44 0.007 – – – – 4.44 0.003 Perceptive Software 37.98 0.056 2.42 0.006 – – 40.40 0.032 Percussion Software 16.20 0.024 1.80 0.004 – – 18.00 0.014 Perfect Commerce 18.20 0.027 7.00 0.016 2.80 0.018 28.00 0.022 Personal & Informatik AG – – 55.70 0.127 – – 55.70 0.044 Phase Forward 28.69 0.042 21.46 0.049 3.78 0.024 53.93 0.042 Pilat Technologies Intl. 0.74 0.001 3.66 0.008 – – 4.40 0.003 Pitney Bowes Distribution Solutions 77.57 0.114 7.23 0.017 2.80 0.018 87.60 0.069 Planisware 15.10 0.022 – – – – 15.10 0.012 Planview 34.49 0.051 14.71 0.034 – – 49.20 0.039 Plateau Systems Ltd. 12.00 0.018 3.00 0.007 – – 15.00 0.012 Plus Technologies 0.80 0.001 0.21 0.000 0.04 0.000 1.05 0.001 Poet Software Corp. 1.53 0.002 1.02 0.002 – – 2.56 0.002 Pointwise Inc. 9.49 0.014 – – – – 9.49 0.007 Portrait Software 1.58 0.002 6.33 0.014 – – 7.91 0.006 PowerPlan Corp. 3.77 0.006 0.71 0.002 0.24 0.002 4.71 0.004 Practique – – 6.12 0.014 – – 6.12 0.005 Premier Data Services 5.97 0.009 0.66 0.002 – – 6.63 0.005 Prescient Systems 7.41 0.011 0.39 0.001 – – 7.80 0.006 Previsor 10.94 0.016 – – – – 10.94 0.009 Primavera Systems Inc. 95.86 0.140 35.10 0.080 4.04 0.026 135.00 0.106 Princeton Financial Sys. Inc. 37.60 0.055 7.05 0.016 2.35 0.015 47.00 0.037 proALPHA Software AG 0.82 0.001 31.79 0.073 – – 32.60 0.026 Procurestaff 5.08 0.007 1.27 0.003 – – 6.35 0.005

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Prodacapo – – 3.27 0.007 – – 3.27 0.003 ProfitLine 4.64 0.007 – – – – 4.64 0.004 Progress Software Corp. 0.97 0.001 0.92 0.002 0.12 0.001 2.01 0.002 Promantek 3.28 0.005 – – – – 3.28 0.003 ProQuest 6.09 0.009 – – – – 6.09 0.005 PROS Pricing Solutions 19.35 0.028 17.20 0.039 6.45 0.041 43.01 0.034 ProVantage Software Inc. 3.43 0.005 – – – – 3.43 0.003 Psipenta Software Systems GmbH – – 40.54 0.093 0.86 0.006 41.40 0.032 PTC 272.68 0.399 259.98 0.595 171.34 1.099 704.00 0.552 PurchasingNet Inc. 23.00 0.034 – – – – 23.00 0.018 QAD Inc. 90.98 0.133 56.91 0.130 41.81 0.268 189.70 0.149 Quadramed 100.51 0.147 0.99 0.002 – – 101.50 0.080 Quadrem 22.00 0.032 10.00 0.023 8.00 0.051 40.00 0.031 QuickArrow 8.36 0.012 – – – – 8.36 0.007 RainMaker Software 2.61 0.004 – – – – 2.61 0.002 Ramco Systems 3.50 0.005 – – 1.38 0.009 4.88 0.004 Rapt 10.00 0.015 – – – – 10.00 0.008 ReadSoft 11.57 0.017 41.03 0.094 – – 52.60 0.041 Realization Technologies 11.50 0.017 4.11 0.009 0.82 0.005 16.43 0.013 Red Hat Inc. 2.09 0.003 0.77 0.002 – – 2.87 0.002 RedEye – – 2.96 0.007 – – 2.96 0.002 RedPrairie Corp. 24.92 0.037 3.78 0.009 – – 28.70 0.022 Refresh Software 3.94 0.006 0.21 0.000 – – 4.15 0.003 Replicon 8.77 0.013 1.42 0.003 0.77 0.005 10.96 0.009 Responsys 14.84 0.022 – – – – 14.84 0.012 Reval 11.00 0.016 – – – – 11.00 0.009 Revionics 9.00 0.013 – – – – 9.00 0.007 Reynolds & Reynolds 541.98 0.794 – – – – 541.98 0.425 RightNow Technologies Inc. 62.02 0.091 19.14 0.044 5.84 0.037 87.00 0.068 Roadmap Technologies Inc. 2.46 0.004 0.27 0.001 – – 2.73 0.002 Rocket Software 3.07 0.004 4.09 0.009 3.89 0.025 11.04 0.009 S1 61.08 0.089 15.03 0.034 1.69 0.011 77.80 0.061

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) SABA 54.74 0.080 15.07 0.034 5.08 0.033 74.90 0.059 Sage Group 951.81 1.394 1,167.06 2.669 52.64 0.338 2,171.50 1.702 Salesforce.com 448.40 0.657 110.90 0.254 56.80 0.364 616.10 0.483 SAP 3,248.04 4.758 5,084.80 11.629 1,170.56 7.508 9,503.41 7.449 Sapiens USA Inc. 0.29 0.000 0.71 0.002 0.12 0.001 1.13 0.001 SAS 213.83 0.313 247.13 0.565 28.35 0.182 489.30 0.384 ScheduleSoft 4.16 0.006 – – – – 4.16 0.003 SciQuest 6.63 0.010 – – – – 6.63 0.005 SDL International 42.48 0.062 34.31 0.078 4.90 0.031 81.70 0.064 SDL Tridion 9.45 0.014 21.42 0.049 0.63 0.004 31.50 0.025 Sedona Corp. 0.65 0.001 0.07 0.000 – – 0.72 0.001 Selectica Inc. 7.73 0.011 0.37 0.001 0.22 0.001 8.32 0.007 Selligent 0.27 0.000 13.43 0.031 – – 13.71 0.011 Sendmail 17.64 0.026 12.96 0.030 5.40 0.035 36.00 0.028 SERENA Software 13.65 0.020 0.58 0.001 0.28 0.002 14.51 0.011 ServiceBench 6.45 0.009 – – – – 6.45 0.005 Servigistics 11.15 0.016 3.23 0.007 1.78 0.011 16.16 0.013 SHL Group 4.84 0.007 33.00 0.075 6.16 0.040 44.00 0.034 Siemens 1,305.54 1.913 1,529.31 3.498 542.78 3.481 3,377.63 2.648 Silicon Graphics 3.59 0.005 1.18 0.003 0.66 0.004 5.43 0.004 SilkRoad 13.13 0.019 – – – – 13.13 0.010 Silver Net Computer Systems Ltd. – – 4.84 0.011 – – 4.84 0.004 Silvon Software 9.45 0.014 1.77 0.004 0.58 0.004 11.80 0.009 SimCorp 7.19 0.011 122.15 0.279 14.37 0.092 143.70 0.113 Sitescape 10.50 0.015 3.75 0.009 0.75 0.005 15.00 0.012 SkillSoft 100.20 0.147 15.60 0.036 4.20 0.027 120.00 0.094 Skywire 76.73 0.112 8.85 0.020 – – 85.58 0.067 SmartOps Corp. 4.42 0.006 3.42 0.008 1.06 0.007 8.89 0.007 SmartSignal Corp. 16.65 0.024 1.85 0.004 – – 18.50 0.015 SmartSoftware Inc. 3.22 0.005 – – – – 3.22 0.003 Smyth Systems 7.27 0.011 – – – – 7.27 0.006 Softbrain Co. Ltd. – – – – 20.65 0.132 20.65 0.016

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Softbrands 44.25 0.065 24.52 0.056 10.33 0.066 79.10 0.062 SofTech Inc. 1.60 0.002 1.56 0.004 0.84 0.005 4.00 0.003 SoftM Software und Beratung AG – – 28.20 0.064 – – 28.20 0.022 Soft-Power Corp. 6.42 0.009 – – 2.56 0.016 8.97 0.007 Softscape 11.19 0.016 4.84 0.011 0.67 0.004 16.70 0.013 Software Innovation ASA – – 24.20 0.055 – – 24.20 0.019 SonicRecruit 5.00 0.007 – – – – 5.00 0.004 Sopheon 4.81 0.007 3.39 0.008 0.01 0.000 8.20 0.006 Sophis 2.13 0.003 9.61 0.022 9.61 0.062 21.35 0.017 Spectrum 10.00 0.015 – – – – 10.00 0.008 SPSS 19.12 0.028 15.98 0.037 0.81 0.005 35.90 0.028 SS&C Technologies 116.03 0.170 28.86 0.066 3.11 0.020 148.00 0.116 STAR AG 0.45 0.001 4.31 0.010 0.90 0.006 5.66 0.004 StepStone 2.09 0.003 44.22 0.101 0.19 0.001 46.50 0.036 Sterling Commerce 79.37 0.116 12.81 0.029 3.72 0.024 95.90 0.075 StrataGen Systems Inc. 3.98 0.006 2.71 0.006 0.58 0.004 7.27 0.006 Successfactors 28.81 0.042 9.89 0.023 4.30 0.028 43.00 0.034 Sumisho Computer Systems Corp. 7.59 0.011 – – 35.02 0.225 42.60 0.033 SumTotal 70.30 0.103 9.90 0.023 2.33 0.015 82.54 0.065 Sun Microsystems 121.39 0.178 106.53 0.244 66.29 0.425 294.20 0.231 SunGard 1,081.03 1.584 235.34 0.538 90.04 0.577 1,406.41 1.102 SuperOffice ASA 0.64 0.001 41.86 0.096 0.30 0.002 42.80 0.034 Supplychain Connect 3.97 0.006 – – – – 3.97 0.003 SupplyOn 8.55 0.013 9.50 0.022 0.95 0.006 19.00 0.015 Sweda 9.32 0.014 – – – – 9.32 0.007 Swisslog 43.16 0.063 73.04 0.167 15.40 0.099 131.60 0.103 Sybase 13.86 0.020 6.93 0.016 3.11 0.020 23.90 0.019 Synopsys 615.88 0.902 179.69 0.411 357.43 2.292 1,153.00 0.904 Synygy 36.54 0.054 4.20 0.010 1.26 0.008 42.00 0.033 Syspro 5.90 0.009 10.62 0.024 7.08 0.045 23.60 0.018 Systran SA 5.83 0.009 4.87 0.011 – – 10.70 0.008 Tagetik – – 11.57 0.026 – – 11.57 0.009

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Take Solutions (ClearOrbit) 9.66 0.014 2.42 0.006 – – 12.08 0.009 Taleo 102.92 0.151 1.05 0.002 0.63 0.004 104.60 0.082 Tavant Technologies 12.36 0.018 – – – – 12.36 0.010 Tecsys Inc. 12.64 0.019 0.13 0.000 – – 12.77 0.010 TEDS 13.00 0.019 1.09 0.003 – – 14.10 0.011 TekSoft Inc. 2.61 0.004 1.32 0.003 0.12 0.001 4.05 0.003 Temenos 38.25 0.056 146.25 0.334 40.50 0.260 225.00 0.176 Tenrox 20.00 0.029 – – – – 20.00 0.016 Teradata 43.68 0.064 17.12 0.039 7.70 0.049 68.50 0.054 Think3 1.53 0.002 26.94 0.062 2.14 0.014 30.61 0.024 Thomson Reuters 159.05 0.233 21.12 0.048 1.67 0.011 181.83 0.143 TIBCO Inc. 6.19 0.009 5.31 0.012 0.91 0.006 12.40 0.010 Tibersoft 3.97 0.006 – – – – 3.97 0.003 Timecentre 18.00 0.026 – – – – 18.00 0.014 Tmax Soft 0.00 0.000 – – 0.12 0.001 0.12 0.000 Tomax Corp. 37.09 0.054 – – – – 37.09 0.029 ToolsGroup 5.00 0.007 4.09 0.009 – – 9.09 0.007 Top Image Systems 6.83 0.010 12.68 0.029 – – 19.50 0.015 Toshiba Solutions Corp. 2.11 0.003 – – 10.33 0.066 12.44 0.010 TOTVS 85.33 0.125 0.23 0.001 – – 85.57 0.067 Touchpaper Software 0.37 0.001 6.37 0.015 0.75 0.005 7.50 0.006 TOWER Software 5.49 0.008 14.06 0.032 14.75 0.095 34.30 0.027 Tradebeam 15.48 0.023 5.96 0.014 2.38 0.015 23.82 0.019 TRADEPAQ Corp. 8.42 0.012 – – – – 8.42 0.007 Transware 5.97 0.009 0.45 0.001 – – 6.41 0.005 Trintech Group PLC 8.14 0.012 7.63 0.017 0.83 0.005 16.60 0.013 Triple Point Technology 14.70 0.022 5.46 0.012 0.84 0.005 21.00 0.016 TSS 0.97 0.001 0.28 0.001 0.14 0.001 1.38 0.001 TXT e-Solutions 0.63 0.001 11.98 0.027 – – 12.61 0.010 Tyler Technologies 130.90 0.192 – – – – 130.90 0.103 UFIDA 2.17 0.003 – – 81.01 0.520 83.18 0.065 Ultimate Software 100.64 0.147 0.86 0.002 – – 101.50 0.080

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Unanet Technologies 2.97 0.004 – – – – 2.97 0.002 Unica Corp. 56.90 0.083 21.45 0.049 1.91 0.012 80.25 0.063 Unicorn HRO 13.00 0.019 – – – – 13.00 0.010 Unisys 72.42 0.106 38.92 0.089 11.43 0.073 122.76 0.096 Unit4 Agresso NV 8.12 0.012 262.68 0.601 – – 270.80 0.212 Unitime 6.41 0.009 – – – – 6.41 0.005 update software AG – – 29.50 0.067 – – 29.50 0.023 UPS Logistics Technologies 38.03 0.056 – – – – 38.03 0.030 Upsidesoft 9.28 0.014 1.64 0.004 – – 10.92 0.009 Vcampus 4.00 0.006 1.00 0.002 – – 5.00 0.004 VCG 5.84 0.009 0.39 0.001 0.33 0.002 6.57 0.005 Vendavo 5.00 0.007 5.00 0.011 – – 10.00 0.008 Ventyx 98.49 0.144 18.41 0.042 3.20 0.021 120.10 0.094 Verint Systems 247.32 0.362 174.04 0.398 36.64 0.235 458.00 0.359 Versata 47.94 0.070 25.12 0.057 4.77 0.031 77.83 0.061 Versys 2.70 0.004 0.19 0.000 – – 2.89 0.002 Vertex Inc. 10.00 0.015 – – – – 10.00 0.008 ViaPeople 2.19 0.003 – – – – 2.19 0.002 Viewpoint Construction Software 6.16 0.009 – – – – 6.16 0.005 Vignette 90.36 0.132 38.34 0.088 9.70 0.062 138.40 0.108 ViryaNet Ltd. 3.27 0.005 0.52 0.001 0.20 0.001 3.99 0.003 Visibility 3.71 0.005 1.43 0.003 0.57 0.004 5.70 0.004 Visiprise 2.46 0.004 1.06 0.002 – – 3.52 0.003 Visma ASA – – 198.20 0.453 – – 198.20 0.155 Visual Sciences 64.59 0.095 10.51 0.024 – – 75.10 0.059 Vivendi 554.97 0.813 474.04 1.084 127.18 0.816 1,156.19 0.906 Vivisimo 13.90 0.020 1.54 0.004 – – 15.44 0.012 Vurv Technology 16.00 0.023 2.40 0.005 1.60 0.010 20.00 0.016 Wall Street Systems 17.74 0.026 56.32 0.129 0.73 0.005 74.80 0.059 WebTrends 54.96 0.081 22.96 0.053 2.08 0.013 80.00 0.063 Win Estimator Inc. 10.00 0.015 – – – – 10.00 0.008 Wizart 0.92 0.001 3.22 0.007 0.46 0.003 4.60 0.004

Worldwide Application Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) WorkForce Software 10.39 0.015 – – – – 10.39 0.008 Works Applications Co. Ltd. 17.48 0.026 – – 73.01 0.468 90.48 0.071 Workscape 30.00 0.044 – – – – 30.00 0.024 Workstream 26.00 0.038 – – – – 26.00 0.020 xTuple 4.25 0.006 – – – – 4.25 0.003 Yahoo! (Zimbra) 71.25 0.104 3.75 0.009 – – 75.00 0.059 Yardi 40.99 0.060 10.51 0.024 1.05 0.007 52.55 0.041 Zilliant Inc. 5.51 0.008 – – – – 5.51 0.004 Zycus 6.09 0.009 – – – – 6.09 0.005 ZyLAB North America LLC 3.20 0.005 11.20 0.026 1.60 0.010 16.00 0.013 Subtotal 52,478.60 76.881 33,182.21 75.889 11,873.29 76.151 97,534.10 76.452 Other 15,781.19 23.119 10,542.46 24.111 3,718.42 23.849 30,042.07 23.548 Total 68,259.78 100.000 43,724.67 100.000 15,591.71 100.000 127,576.17 100.000

Source: IDC, 2008

TABLE 11

Worldwide System Infrastructure Software Revenue by Top 50 Vendors, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Microsoft 16,575 16,925 22,702 34.1 30.30 1 IBM 7,655 7,774 8,015 3.1 10.70 2 Symantec 5,160 5,128 5,448 6.3 7.27 3 HP 3,479 3,484 3,597 3.2 4.80 4 EMC 3,040 3,134 3,371 7.6 4.50 5 CA 2,019 2,100 2,303 9.7 3.07 6 Citrix 797 1,029 1,339 30.1 1.79 7 VMware Inc. 363 684 1,283 87.5 1.71 8 Sun Microsystems 1,099 1,177 1,197 1.7 1.60 9 McAfee 952 1,065 1,183 11.1 1.58 10 BMC 986 1,064 1,161 9.2 1.55 11 Network Appliance 501 747 992 32.9 1.32 12 Fujitsu 905 906 927 2.3 1.24 13 Trend Micro 622 713 826 15.9 1.10 14 Hitachi 756 763 818 7.2 1.09 15 NEC 554 595 664 11.7 0.89 16 Check Point Software Technologies 493 522 591 13.2 0.79 17 Novell 593 544 589 8.3 0.79 18 Cisco 450 532 588 10.4 0.78 19 Apple 412 388 561 44.8 0.75 20 Attachmate 344 370 406 9.8 0.54 21 Red Hat Inc. 216 304 386 27.0 0.52 22 Websense 249 294 312 6.3 0.42 23 Quest Software 226 268 300 12.0 0.40 24 HDS 304 273 294 7.8 0.39 25 VeriSign Inc. 217 244 260 6.4 0.35 26 Siemens 220 209 239 14.0 0.32 27 Unisys 262 225 219 -2.5 0.29 28 Compuware 174 190 201 5.8 0.27 29 SafeNet Inc. 185 167 197 18.3 0.26 30 Research In Motion 176 176 184 4.9 0.25 31 Adobe 132 162 184 13.4 0.25 32 ASG 151 164 181 10.9 0.24 33 Sophos 121 140 181 29.6 0.24 34 Oracle 43 98 161 64.4 0.22 35 Alcatel Lucent 129 140 150 7.7 0.20 36 Panda Security 130 131 149 13.6 0.20 37 Autonomy 81 107 143 33.2 0.19 38 Iron Mountain Inc. 73 104 139 33.7 0.19 39 F-Secure Corp. 77 102 132 29.2 0.18 40 CommVault Systems Inc. 73 100 129 29.3 0.17 41 Bull SAS 122 120 127 6.0 0.17 42 Kaspersky Lab 40 67 124 84.3 0.16 43 Webroot 70 96 110 14.3 0.15 44 MessageLabs 76 96 109 13.4 0.15 45 Aladdin Knowledge Systems 82 89 105 18.5 0.14 46

Worldwide System Infrastructure Software Revenue by Top 50 Vendors, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Acronis 20 51 92 82.0 0.12 47 Avocent 84 93 91 -1.6 0.12 48 Parallels 47 69 90 30.9 0.12 49 Lumension Security 39 63 86 36.2 0.11 50 Subtotal 51,574 53,984 63,639 17.9 84.94 Other 8,806 10,147 11,279 11.2 15.06 Total 60,380 64,131 74,918 16.8 100.00

Source: IDC, 2008

TABLE 12

Worldwide System Infrastructure Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank ABC Systems 6 7 7 8.9 0.010 187 Acronis 20 51 92 82.0 0.123 47 ActivIdentity 45 50 52 3.5 0.069 83 Adobe 132 162 184 13.4 0.246 32 Ahnlab Inc. 37 44 48 8.5 0.064 86 Aladdin Knowledge Systems 82 89 105 18.5 0.141 46 AlarmPoint 2 2 2 6.2 0.003 226 Alcatel Lucent 129 140 150 7.7 0.201 36 Alloy Software 1 1 2 42.9 0.003 228 Allume Systems 6 6 6 4.1 0.008 196 AlmavivA 1 1 1 15.7 0.002 232 Apple 412 388 561 44.8 0.749 20 Applied Innovation Management 4 4 4 8.9 0.006 210 ArcSight 42 54 81 50.0 0.108 54 ASG 151 164 181 10.9 0.242 33 Atempo 30 31 41 32.3 0.055 96 Attachmate 344 370 406 9.8 0.542 21 Attest 3 3 4 8.7 0.005 215 Autonomy 81 107 143 33.2 0.191 38 AVG Technologies (Former Grisoft) 29 38 42 13.0 0.057 93 Avocent 84 93 91 -1.6 0.122 48 B & L Associates 11 11 12 5.9 0.016 159 Backweb 7 8 7 -9.1 0.010 189 BakBone Software 43 51 56 8.8 0.074 75 BEA 6 7 8 23.9 0.011 176 Beta Systems Software AG 53 45 52 14.7 0.069 84 BEZ Systems Inc. 3 3 3 6.1 0.005 216 BigFix Inc. 18 28 42 45.6 0.055 94 Birdstep Technology 3 5 13 170.8 0.017 156

Worldwide System Infrastructure Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Bladelogic 18 37 71 91.0 0.094 60 BMC 986 1,064 1,161 9.2 1.550 11 Bottomline Technologies 14 14 20 39.6 0.027 134 Bradmark Technologies Inc. 1 1 2 34.9 0.003 229 BSP 28 30 32 3.8 0.042 109 Bull SAS 122 120 127 6.0 0.169 42 CA 2,019 2,100 2,303 9.7 3.074 6 CalAmp 5 5 6 6.1 0.007 200 Captaris Inc. 51 57 55 -3.8 0.073 78 Cassatt 2 2 2 7.6 0.003 227 Centennial Software 11 14 19 35.7 0.025 141 Certicom Corp. 10 13 17 35.4 0.023 147 Check Point Software Technologies 493 522 591 13.2 0.789 17 Cisco 450 532 588 10.4 0.785 19 Citrix 797 1,029 1,339 30.1 1.787 7 Clearswift Corp. 44 50 57 14.3 0.076 74 Coastal Technologies 3 3 4 9.0 0.005 214 CommuniGate Systems 5 13 17 30.8 0.023 146 CommVault Systems Inc. 73 100 129 29.3 0.172 41 Compuware 174 190 201 5.8 0.268 29 Courion Corp. 16 17 19 9.6 0.025 143 Criston Software 7 7 8 8.6 0.010 185 Critical Path 12 8 9 4.8 0.012 172 Danware Data A/S 15 16 19 15.0 0.025 142 DataCore Software 24 27 30 13.6 0.041 114 DataSynapse Inc. 12 20 35 72.8 0.047 101 Datawatch Corp. 5 5 7 43.5 0.009 194 Diligent Technologies – 22 22 2.8 0.030 130 Diskeeper Corp. 32 28 24 -15.6 0.032 124 Double-Take Software 42 58 71 24.1 0.095 59 Ecora Software 11 9 10 11.8 0.014 164 eIQ Networks Inc. 6 12 19 58.3 0.025 140 Embarcadero Technologies 10 10 9 -10.6 0.012 171 EMC 3,040 3,134 3,371 7.6 4.499 5 Empirix 14 17 17 -2.0 0.023 148 ENEA 32 35 44 25.5 0.059 90 Enterasys Networks Inc. 56 65 76 17.3 0.102 56 Entrust Inc. 84 81 77 -6.0 0.102 55 ESET 20 44 55 26.0 0.073 79 Esker Software 24 26 29 15.0 0.039 115 Eurosoft (UK) 4 4 4 7.2 0.006 209 EVault 27 33 35 3.4 0.046 104 FaceTime Communications Inc. 8 11 13 18.2 0.017 157 Falconstor Software Inc. 37 51 72 41.5 0.096 58 Fenestrae BV 7 7 8 4.1 0.010 186 FrontRange Solutions Inc. 41 45 65 42.6 0.086 67 F-Secure Corp. 77 102 132 29.2 0.177 40

Worldwide System Infrastructure Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Fujitsu 905 906 927 2.3 1.237 13 Gemalto 38 42 62 47.1 0.082 69 Gensym 3 3 3 -2.8 0.004 222 Google Inc. 46 66 69 4.6 0.092 62 Green Hills Software 22 23 25 6.3 0.033 123 GT Software – 1 1 4.7 0.001 233 Guidance 31 49 65 33.6 0.087 66 Hauri Inc. 11 13 8 -39.9 0.010 183 HDS 304 273 294 7.8 0.393 25 Heroix Corp. 5 7 7 4.9 0.010 188 Hitachi 756 763 818 7.2 1.091 15 HP 3,479 3,484 3,597 3.2 4.801 4 IBM 7,655 7,774 8,015 3.1 10.699 2 ICS 2 2 3 8.4 0.003 223 Igloo Security – – 9 NA 0.012 170 I-Net Software 2 2 2 8.2 0.003 230 InfoTel Corp. 4 4 4 6.2 0.005 212 InfoVista 26 30 44 47.2 0.059 91 Infra Corp. 11 12 13 11.0 0.018 154 Initech – – 11 NA 0.014 163 Integrated Research 25 27 30 11.8 0.041 113 Intellitactics 14 14 15 10.9 0.020 153 iPass 5 5 6 8.7 0.008 198 Ipswitch 16 25 31 22.3 0.041 111 Iron Mountain Inc. 73 104 139 33.7 0.186 39 Juniper Networks 20 20 23 14.7 0.031 129 Kaspersky Lab 40 67 124 84.3 0.165 43 Keynote Systems Inc. 24 43 53 24.2 0.071 81 Keyware 6 4 3 -30.1 0.004 221 Kofax 29 31 32 5.2 0.043 108 Laplink Software Inc. 8 9 8 -2.6 0.011 174 Layer 7 Technologies – 3 4 21.9 0.005 213 Lefthand Networks – 10 12 14.9 0.016 160 Levi, Ray & Shoup Inc. 73 78 84 7.3 0.112 52 LogMeIn Inc. 17 24 24 -2.2 0.031 126 Lumension Security 39 63 86 36.2 0.115 50 Macro 4 19 19 20 2.7 0.026 136 Macrovision 24 27 31 18.5 0.042 110 Managed Objects 24 26 27 6.2 0.036 117 ManageSoft 6 6 7 9.0 0.009 195 Mandriva 5 4 3 -31.6 0.004 220 Matrix42 7 7 8 8.1 0.010 184 McAfee 952 1,065 1,183 11.1 1.579 10 Mentor Graphics 27 30 33 9.8 0.045 106 MessageLabs 76 96 109 13.4 0.145 45 Metron Technology Ltd. AG 5 5 5 6.4 0.007 202 Microsoft 16,575 16,925 22,702 34.1 30.302 1

Worldwide System Infrastructure Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Mincom Ltd. 2 3 7 169.2 0.009 193 Motive Communications 34 36 35 -4.4 0.047 102 MQSoftware 14 15 16 6.3 0.021 151 M-Tech Information Technology Inc. 17 20 20 0.0 0.027 135 Multima Corp. 3 3 3 8.4 0.004 218 mValent 2 5 5 8.5 0.007 201 nCircle 9 12 17 42.5 0.023 145 NEC 554 595 664 11.7 0.887 16 netForensics 30 30 34 13.3 0.045 105 NetManage Inc. 21 22 22 -0.8 0.029 131 NetSupport Inc. 32 35 33 -5.9 0.044 107 Network Appliance 501 747 992 32.9 1.325 12 Nokia Corp. 53 63 66 3.8 0.087 64 Nomura Research Institute Ltd. 41 49 60 21.6 0.079 72 Norman ASA 31 39 46 17.0 0.061 88 Nortel Networks 77 79 75 -5.3 0.100 57 NovaStor 4 7 8 12.5 0.011 179 Novell 593 544 589 8.3 0.786 18 NOWCOM (Winstechnet) 4 5 6 13.7 0.007 199 NuBridges – – 3 NA 0.004 217 Numara Software 50 60 65 8.4 0.087 65 Omtool Ltd. 13 13 16 21.5 0.022 149 Opalis Software 6 9 10 8.9 0.013 165 Open Systems Management Ltd. 8 9 10 8.5 0.013 167 Open Text Corp. 79 67 70 3.7 0.093 61 Openwave Systems Inc. 133 132 85 -35.6 0.113 51 Oracle 43 98 161 64.4 0.215 35 ORSYP SA 22 23 25 6.3 0.033 122 Oullim Information Technology 5 5 5 0.3 0.006 207 Panda Security 130 131 149 13.6 0.199 37 Parallels 47 69 90 30.9 0.120 49 PassGo 19 21 23 10.8 0.031 127 Passlogix 20 22 25 15.3 0.033 121 Penta Security Systems 6 6 4 -28.4 0.006 208 PGP Corp. 35 50 61 22.0 0.081 70 Platform Computing 52 56 63 10.9 0.084 68 Plus Technologies 10 11 11 6.2 0.015 162 Progress Software Corp. 9 12 13 7.4 0.017 158 PSSOFT 7 8 8 7.9 0.011 178 Qlusters 6 8 8 5.6 0.011 177 Quality Corp. 23 25 27 6.8 0.036 118 Qualys 19 28 39 40.2 0.053 97 Quantum 49 57 67 18.1 0.090 63 Quest Software 226 268 300 12.0 0.401 24 RadiSys Corp. 6 6 6 -3.2 0.008 197 Raxco 4 4 7 94.2 0.009 191 RealNetworks Inc. 69 77 81 5.1 0.108 53

Worldwide System Infrastructure Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Red Flag Software Co. Ltd. 3 4 4 9.7 0.006 211 Red Hat Inc. 216 304 386 27.0 0.516 22 Redwood 13 14 35 154.7 0.046 103 Research In Motion 176 176 184 4.9 0.246 31 Resonate Inc. 6 7 7 6.4 0.010 190 Rocket Software 8 10 12 20.0 0.016 161 SafeNet Inc. 185 167 197 18.3 0.263 30 SAP 1 1 2 72.7 0.003 231 SAS 33 36 36 0.0 0.048 100 Secure Computing Corp. 28 58 60 3.4 0.080 71 Sendmail 5 8 5 -37.5 0.007 204 Sentillion 16 18 19 8.9 0.026 139 SEVEN Networks Inc. 16 21 21 4.0 0.028 133 Shavlik 29 33 38 15.2 0.051 98 Siemens 220 209 239 14.0 0.319 27 Sightline Systems 7 7 8 6.6 0.010 182 Silicon Graphics 32 23 26 12.7 0.035 119 Skybox Security 8 9 9 5.6 0.013 169 Skywire 7 9 10 6.2 0.013 168 SOA Software Inc. 21 21 28 33.0 0.037 116 SoftRun – – 10 NA 0.013 166 Software Eng. of America 56 58 59 2.0 0.079 73 Solipsis 5 5 5 5.4 0.007 203 Sophos 121 140 181 29.6 0.242 34 SpringSource 1 1 1 4.7 0.001 234 SSH Communications Security 12 14 19 42.7 0.026 138 SteelEye Technology Inc. (SIOS) 5 7 9 28.4 0.011 173 StoneSoft Corp. 8 9 8 -12.9 0.010 181 StreamServe Inc. 37 41 44 8.4 0.059 92 SumTotal 2 4 5 19.1 0.006 206 Sun Microsystems 1,099 1,177 1,197 1.7 1.598 9 SupportSoft 62 45 48 6.2 0.064 85 Sybase 40 45 46 2.0 0.061 89 Symantec 5,160 5,128 5,448 6.3 7.272 3 Syncsort 41 44 47 6.8 0.063 87 Sysload Software 5 5 7 34.0 0.009 192 Systar SA 20 22 23 6.4 0.031 128 Tealeaf Technology 3 3 5 47.6 0.007 205 Teamquest Corp. 22 18 20 6.1 0.026 137 Teradata 34 36 37 3.6 0.049 99 The SCO Group Inc. 29 23 16 -30.0 0.021 150 TIBCO Inc. 8 8 8 6.6 0.011 180 Tidal Software Inc. 27 29 31 6.4 0.041 112 Tmax Soft 0 0 1 20.8 0.001 235 Touchpaper Software 12 14 16 7.2 0.021 152 Touchstone Software 2 2 2 39.1 0.003 225 Trend Micro 622 713 826 15.9 1.103 14

Worldwide System Infrastructure Software Revenue by Vendor, 2005–2007 ($M)

2006–2007 2007 Share 2005 2006 2007 Growth (%) (%) 2007 Rank Tripwire Inc. 32 37 41 12.8 0.055 95 Tumbleweed Communication Inc. 50 55 55 0.0 0.073 77 Turbolinux Inc. 8 8 8 4.4 0.011 175 UC4 47 52 55 5.4 0.073 80 Unisys 262 225 219 -2.5 0.293 28 Utimaco Safeware AG 27 46 55 19.1 0.074 76 Vasco 7 9 25 175.5 0.034 120 Vector Networks Ltd. 3 3 3 -6.0 0.004 219 VeriSign Inc. 217 244 260 6.4 0.347 26 Vision Solutions Inc. 31 48 53 10.1 0.071 82 Visto 14 23 24 4.4 0.032 125 VMware Inc. 363 684 1,283 87.5 1.713 8 WatchGuard 11 13 18 34.8 0.023 144 Wavelink Corp. 19 21 22 6.0 0.029 132 Webroot 70 96 110 14.3 0.146 44 Websense 249 294 312 6.3 0.417 23 Webspy 2 2 2 14.7 0.003 224 Yosemite Technologies 11 12 13 12.0 0.017 155 Subtotal 55,160 58,127 68,331 17.6 91.207 Other 5,220 6,004 6,588 9.7 8.793 Total 60,380 64,131 74,918 16.8 100.000

Source: IDC, 2008

TABLE 13

Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) ABC Systems 4.76 0.013 1.76 0.007 0.81 0.006 7.33 0.010 Acronis 40.06 0.110 40.80 0.165 11.24 0.081 92.10 0.123 ActivIdentity 26.75 0.073 21.79 0.088 3.21 0.023 51.75 0.069 Adobe 88.32 0.243 60.72 0.246 34.96 0.253 184.00 0.246 Ahnlab Inc. 11.10 0.030 – – 36.60 0.265 47.70 0.064 Aladdin Knowledge Systems 26.30 0.072 65.89 0.267 13.31 0.096 105.50 0.141 AlarmPoint 1.82 0.005 0.21 0.001 0.11 0.001 2.15 0.003 Alcatel Lucent 89.65 0.246 43.62 0.177 17.15 0.124 150.43 0.201 Alloy Software 1.70 0.005 0.30 0.001 – – 2.00 0.003 Allume Systems 5.73 0.016 0.25 0.001 0.31 0.002 6.30 0.008 AlmavivA – – 1.16 0.005 – – 1.16 0.002 Apple 322.22 0.885 124.62 0.505 114.52 0.828 561.36 0.749 Applied Innovation Management 3.87 0.011 0.17 0.001 0.26 0.002 4.30 0.006 ArcSight 45.32 0.124 24.30 0.098 11.38 0.082 81.00 0.108 ASG 138.09 0.379 38.18 0.155 5.04 0.036 181.32 0.242 Atempo 2.87 0.008 35.67 0.145 2.46 0.018 41.00 0.055 Attachmate 249.85 0.686 129.13 0.523 27.29 0.197 406.27 0.542 Attest 2.86 0.008 0.54 0.002 0.18 0.001 3.58 0.005 Autonomy 92.95 0.255 50.05 0.203 – – 143.00 0.191 AVG Technologies (Former Grisoft) 6.37 0.017 36.08 0.146 – – 42.45 0.057 Avocent 38.37 0.105 29.25 0.119 23.78 0.172 91.40 0.122 B & L Associates 10.25 0.028 1.83 0.007 – – 12.08 0.016 Backweb 5.99 0.016 1.24 0.005 0.07 0.001 7.30 0.010 BakBone Software 16.26 0.045 13.95 0.057 25.59 0.185 55.80 0.074 BEA 4.09 0.011 2.87 0.012 1.34 0.010 8.30 0.011 Beta Systems Software AG 6.96 0.019 44.37 0.180 0.26 0.002 51.59 0.069 BEZ Systems Inc. 3.40 0.009 – – – – 3.40 0.005 BigFix Inc. 34.03 0.093 6.23 0.025 1.25 0.009 41.50 0.055 Birdstep Technology 0.63 0.002 12.37 0.050 – – 13.00 0.017 Bladelogic 70.66 0.194 – – – – 70.66 0.094 BMC 657.65 1.806 402.89 1.633 100.97 0.730 1,161.50 1.550 Bottomline Technologies 11.10 0.030 8.78 0.036 0.30 0.002 20.19 0.027

Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Bradmark Technologies Inc. 1.73 0.005 0.25 0.001 0.02 0.000 2.00 0.003 BSP 6.18 0.017 – – 25.42 0.184 31.60 0.042 Bull SAS 11.41 0.031 107.79 0.437 7.61 0.055 126.81 0.169 CA 1,363.65 3.745 664.12 2.692 274.93 1.988 2,302.70 3.074 CalAmp 5.50 0.015 – – – – 5.50 0.007 Captaris Inc. 49.01 0.135 4.95 0.020 1.04 0.008 55.00 0.073 Cassatt 2.11 0.006 – – – – 2.11 0.003 Centennial Software 7.60 0.021 11.40 0.046 – – 19.00 0.025 Certicom Corp. 15.27 0.042 1.16 0.005 0.58 0.004 17.00 0.023 Check Point Software Technologies 275.06 0.755 219.25 0.889 96.59 0.698 590.90 0.789 Cisco 342.38 0.940 194.60 0.789 50.76 0.367 587.74 0.785 Citrix 656.67 1.803 553.75 2.245 128.11 0.926 1,338.54 1.787 Clearswift Corp. 6.41 0.018 35.42 0.144 15.30 0.111 57.13 0.076 Coastal Technologies 3.58 0.010 – – – – 3.58 0.005 CommuniGate Systems 5.95 0.016 7.65 0.031 3.40 0.025 17.00 0.023 CommVault Systems Inc. 89.66 0.246 27.62 0.112 11.51 0.083 128.80 0.172 Compuware 95.46 0.262 88.37 0.358 17.07 0.123 200.90 0.268 Courion Corp. 16.39 0.045 2.24 0.009 – – 18.63 0.025 Criston Software 1.23 0.003 3.24 0.013 3.24 0.023 7.71 0.010 Critical Path 4.58 0.013 3.96 0.016 0.26 0.002 8.80 0.012 Danware Data A/S 5.67 0.016 12.85 0.052 0.38 0.003 18.90 0.025 DataCore Software 9.58 0.026 15.50 0.063 5.31 0.038 30.39 0.041 DataSynapse Inc. 18.66 0.051 16.19 0.066 0.35 0.003 35.20 0.047 Datawatch Corp. 4.76 0.013 1.84 0.007 – – 6.60 0.009 Diligent Technologies 22.49 0.062 – – – – 22.49 0.030 Diskeeper Corp. 15.66 0.043 7.87 0.032 0.44 0.003 23.96 0.032 Double-Take Software 50.16 0.138 18.79 0.076 2.50 0.018 71.46 0.095 Ecora Software 8.13 0.022 1.75 0.007 0.41 0.003 10.29 0.014 eIQ Networks Inc. 13.30 0.037 5.70 0.023 – – 19.00 0.025 Embarcadero Technologies 7.29 0.020 0.86 0.003 1.08 0.008 9.22 0.012 EMC 2,018.52 5.543 994.76 4.032 357.44 2.584 3,370.72 4.499 Empirix 12.43 0.034 2.31 0.009 2.22 0.016 16.95 0.023

Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) ENEA 8.64 0.024 34.58 0.140 1.11 0.008 44.33 0.059 Enterasys Networks Inc. 57.04 0.157 19.02 0.077 – – 76.06 0.102 Entrust Inc. 49.17 0.135 19.52 0.079 7.81 0.056 76.50 0.102 ESET 46.75 0.128 8.25 0.033 – – 55.00 0.073 Esker Software 15.85 0.044 12.03 0.049 1.46 0.011 29.35 0.039 Eurosoft (UK) 1.32 0.004 2.85 0.012 0.22 0.002 4.39 0.006 EVault 29.43 0.081 5.19 0.021 – – 34.63 0.046 FaceTime Communications Inc. 11.12 0.031 1.63 0.007 0.26 0.002 13.00 0.017 Falconstor Software Inc. 43.24 0.119 11.50 0.047 17.15 0.124 71.89 0.096 Fenestrae BV 3.04 0.008 4.18 0.017 0.38 0.003 7.60 0.010 FrontRange Solutions Inc. 16.33 0.045 45.15 0.183 3.12 0.023 64.59 0.086 F-Secure Corp. 21.87 0.060 108.50 0.440 1.95 0.014 132.32 0.177 Fujitsu 60.62 0.166 67.31 0.273 798.75 5.775 926.68 1.237 Gemalto 18.53 0.051 42.01 0.170 1.24 0.009 61.78 0.082 Gensym 1.37 0.004 1.37 0.006 – – 2.74 0.004 Google Inc. 58.96 0.162 7.29 0.030 2.75 0.020 69.00 0.092 Green Hills Software 19.63 0.054 3.93 0.016 0.98 0.007 24.54 0.033 GT Software 0.94 0.003 0.10 0.000 – – 1.05 0.001 Guidance 42.17 0.116 22.71 0.092 – – 64.88 0.087 Hauri Inc. 1.17 0.003 – – 6.63 0.048 7.80 0.010 HDS 105.08 0.289 131.25 0.532 57.93 0.419 294.26 0.393 Heroix Corp. 4.62 0.013 2.71 0.011 – – 7.32 0.010 Hitachi 31.68 0.087 5.48 0.022 780.53 5.644 817.69 1.091 HP 1,522.97 4.182 1,527.37 6.191 546.21 3.949 3,596.55 4.801 IBM 3,934.15 10.803 3,093.81 12.540 987.22 7.138 8,015.18 10.699 ICS 2.20 0.006 0.18 0.001 0.12 0.001 2.51 0.003 Igloo Security 0.04 0.000 – – 9.26 0.067 9.30 0.012 I-Net Software 1.34 0.004 0.57 0.002 – – 1.91 0.003 InfoTel Corp. 1.93 0.005 2.12 0.009 – – 4.05 0.005 InfoVista 20.38 0.056 18.61 0.075 5.32 0.038 44.30 0.059 Infra Corp. 5.33 0.015 2.66 0.011 5.33 0.039 13.32 0.018 Initech 0.00 0.000 – – 10.60 0.077 10.60 0.014

Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Integrated Research 18.85 0.052 8.51 0.035 3.04 0.022 30.40 0.041 Intellitactics 11.40 0.031 3.80 0.015 – – 15.20 0.020 iPass 4.61 0.013 0.86 0.003 0.29 0.002 5.76 0.008 Ipswitch 23.30 0.064 5.59 0.023 2.01 0.015 30.90 0.041 Iron Mountain Inc. 107.59 0.295 28.77 0.117 2.64 0.019 139.00 0.186 Juniper Networks 9.33 0.026 7.35 0.030 6.26 0.045 22.94 0.031 Kaspersky Lab 18.52 0.051 72.25 0.293 32.74 0.237 123.50 0.165 Keynote Systems Inc. 43.15 0.118 9.17 0.037 1.08 0.008 53.40 0.071 Keyware – – 2.90 0.012 – – 2.90 0.004 Kofax 5.80 0.016 25.76 0.104 0.64 0.005 32.20 0.043 Laplink Software Inc. 5.95 0.016 2.12 0.009 0.42 0.003 8.50 0.011 Layer 7 Technologies 3.29 0.009 0.37 0.001 – – 3.66 0.005 Lefthand Networks 12.05 0.033 – – – – 12.05 0.016 Levi, Ray & Shoup Inc. 64.35 0.177 18.03 0.073 1.42 0.010 83.80 0.112 LogMeIn Inc. 16.47 0.045 7.06 0.029 – – 23.52 0.031 Lumension Security 57.47 0.158 26.30 0.107 2.23 0.016 86.00 0.115 Macro 4 10.80 0.030 8.92 0.036 0.10 0.001 19.82 0.026 Macrovision 25.16 0.069 5.34 0.022 0.94 0.007 31.45 0.042 Managed Objects 17.35 0.048 9.76 0.040 – – 27.10 0.036 ManageSoft 4.61 0.013 1.32 0.005 0.66 0.005 6.58 0.009 Mandriva 1.28 0.004 1.51 0.006 0.12 0.001 2.90 0.004 Matrix42 3.11 0.009 4.66 0.019 – – 7.77 0.010 McAfee 751.47 2.064 284.17 1.152 147.57 1.067 1,183.21 1.579 Mentor Graphics 16.03 0.044 7.68 0.031 9.69 0.070 33.40 0.045 MessageLabs 10.89 0.030 95.88 0.389 2.17 0.016 108.94 0.145 Metron Technology Ltd. AG 1.07 0.003 3.20 0.013 1.07 0.008 5.34 0.007 Microsoft 10,084.03 27.690 7,497.39 30.389 5,120.10 37.021 22,701.52 30.302 Mincom Ltd. 1.89 0.005 0.84 0.003 4.27 0.031 7.00 0.009 Motive Communications 27.57 0.076 4.89 0.020 2.44 0.018 34.89 0.047 MQSoftware 11.82 0.032 3.62 0.015 0.31 0.002 15.75 0.021 M-Tech Information Technology Inc. 17.00 0.047 3.00 0.012 – – 20.00 0.027 Multima Corp. 2.81 0.008 0.49 0.002 – – 3.30 0.004

Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) mValent 5.15 0.014 0.27 0.001 – – 5.42 0.007 nCircle 13.34 0.037 2.05 0.008 1.71 0.012 17.10 0.023 NEC 21.26 0.058 18.52 0.075 624.58 4.516 664.37 0.887 netForensics 23.80 0.065 10.20 0.041 – – 34.00 0.045 NetManage Inc. 17.27 0.047 3.45 0.014 1.38 0.010 22.10 0.029 NetSupport Inc. 11.60 0.032 18.89 0.077 2.65 0.019 33.14 0.044 Network Appliance 638.50 1.753 293.14 1.188 60.84 0.440 992.49 1.325 Nokia Corp. 43.97 0.121 11.80 0.048 9.74 0.070 65.50 0.087 Nomura Research Institute Ltd. – – – – 59.52 0.430 59.52 0.079 Norman ASA 2.76 0.008 43.31 0.176 – – 46.07 0.061 Nortel Networks 39.54 0.109 26.31 0.107 9.29 0.067 75.14 0.100 NovaStor 3.40 0.009 4.05 0.016 0.65 0.005 8.10 0.011 Novell 272.74 0.749 265.30 1.075 50.97 0.369 589.00 0.786 NOWCOM (Winstechnet) – – – – 5.56 0.040 5.56 0.007 NuBridges 3.04 0.008 0.17 0.001 0.10 0.001 3.30 0.004 Numara Software 52.03 0.143 13.01 0.053 – – 65.04 0.087 Omtool Ltd. 14.45 0.040 1.62 0.007 0.33 0.002 16.40 0.022 Opalis Software 5.94 0.016 2.97 0.012 0.99 0.007 9.91 0.013 Open Systems Management Ltd. 2.97 0.008 6.53 0.026 0.09 0.001 9.59 0.013 Open Text Corp. 32.11 0.088 33.50 0.136 4.19 0.030 69.80 0.093 Openwave Systems Inc. 28.90 0.079 44.20 0.179 11.90 0.086 85.00 0.113 Oracle 86.86 0.239 66.49 0.270 8.05 0.058 161.40 0.215 ORSYP SA 6.66 0.018 17.28 0.070 0.74 0.005 24.68 0.033 Oullim Information Technology 3.36 0.009 – – 1.21 0.009 4.57 0.006 Panda Security 42.43 0.117 104.41 0.423 2.32 0.017 149.15 0.199 Parallels 61.32 0.168 18.82 0.076 9.90 0.072 90.04 0.120 PassGo 17.38 0.048 5.40 0.022 0.70 0.005 23.49 0.031 Passlogix 19.88 0.055 2.98 0.012 1.99 0.014 24.85 0.033 Penta Security Systems 0.00 0.000 – – 4.40 0.032 4.40 0.006 PGP Corp. 42.03 0.115 16.47 0.067 2.50 0.018 61.00 0.081 Platform Computing 37.81 0.104 13.65 0.055 11.14 0.081 62.60 0.084 Plus Technologies 8.60 0.024 2.26 0.009 0.45 0.003 11.31 0.015

Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Progress Software Corp. 10.28 0.028 – – 2.55 0.018 12.83 0.017 PSSOFT 0.81 0.002 6.94 0.028 0.41 0.003 8.16 0.011 Qlusters 5.77 0.016 2.47 0.010 – – 8.24 0.011 Quality Corp. 11.59 0.032 – – 15.31 0.111 26.91 0.036 Qualys 25.61 0.070 13.79 0.056 – – 39.40 0.053 Quantum 45.16 0.124 20.78 0.084 1.11 0.008 67.06 0.090 Quest Software 229.65 0.631 65.14 0.264 5.69 0.041 300.47 0.401 RadiSys Corp. 2.68 0.007 1.53 0.006 1.89 0.014 6.10 0.008 Raxco 5.05 0.014 1.56 0.006 0.49 0.004 7.10 0.009 RealNetworks Inc. 60.80 0.167 20.26 0.082 – – 81.06 0.108 Red Flag Software Co. Ltd. – – – – 4.25 0.031 4.25 0.006 Red Hat Inc. 220.24 0.605 104.33 0.423 61.82 0.447 386.39 0.516 Redwood 20.20 0.055 13.92 0.056 0.67 0.005 34.80 0.046 Research In Motion 142.01 0.390 34.44 0.140 7.74 0.056 184.18 0.246 Resonate Inc. 6.59 0.018 0.43 0.002 0.22 0.002 7.24 0.010 Rocket Software 7.93 0.022 2.76 0.011 1.32 0.010 12.01 0.016 SafeNet Inc. 143.15 0.393 43.99 0.178 9.84 0.071 196.98 0.263 SAP 0.64 0.002 1.02 0.004 0.25 0.002 1.90 0.003 SAS 13.57 0.037 21.39 0.087 1.14 0.008 36.10 0.048 Secure Computing Corp. 34.81 0.096 13.19 0.053 11.95 0.086 59.95 0.080 Sendmail 2.45 0.007 1.80 0.007 0.75 0.005 5.00 0.007 Sentillion 18.78 0.052 0.38 0.002 – – 19.17 0.026 SEVEN Networks Inc. 4.89 0.013 9.48 0.038 6.98 0.050 21.35 0.028 Shavlik 24.70 0.068 13.30 0.054 – – 38.00 0.051 Siemens 99.81 0.274 102.85 0.417 36.11 0.261 238.77 0.319 Sightline Systems 4.30 0.012 3.36 0.014 0.15 0.001 7.81 0.010 Silicon Graphics 17.15 0.047 5.63 0.023 3.17 0.023 25.95 0.035 Skybox Security 4.28 0.012 4.28 0.017 0.95 0.007 9.50 0.013 Skywire 8.99 0.025 0.48 0.002 0.09 0.001 9.56 0.013 SOA Software Inc. 22.34 0.061 4.19 0.017 1.40 0.010 27.93 0.037 SoftRun 0.02 0.000 – – 9.68 0.070 9.70 0.013 Software Eng. of America 40.19 0.110 15.32 0.062 3.36 0.024 58.87 0.079

Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Solipsis 0.85 0.002 4.20 0.017 0.05 0.000 5.10 0.007 Sophos 54.21 0.149 97.82 0.396 29.12 0.211 181.15 0.242 SpringSource 0.57 0.002 0.06 0.000 – – 0.63 0.001 SSH Communications Security 14.36 0.039 3.69 0.015 1.36 0.010 19.40 0.026 SteelEye Technology Inc. (SIOS) 3.01 0.008 2.58 0.010 3.01 0.022 8.60 0.011 StoneSoft Corp. 1.25 0.003 6.03 0.024 0.55 0.004 7.84 0.010 StreamServe Inc. 8.80 0.024 35.20 0.143 – – 44.00 0.059 SumTotal 4.00 0.011 0.57 0.002 0.19 0.001 4.77 0.006 Sun Microsystems 560.76 1.540 474.26 1.922 162.30 1.174 1,197.32 1.598 SupportSoft 42.54 0.117 5.26 0.021 – – 47.80 0.064 Sybase 26.50 0.073 18.19 0.074 1.11 0.008 45.80 0.061 Symantec 3,100.79 8.515 1,551.03 6.287 796.32 5.758 5,448.14 7.272 Syncsort 37.59 0.103 7.67 0.031 2.10 0.015 47.36 0.063 Sysload Software 0.16 0.000 6.92 0.028 0.03 0.000 7.10 0.009 Systar SA 6.26 0.017 16.92 0.069 – – 23.17 0.031 Tealeaf Technology 5.00 0.014 – – – – 5.00 0.007 Teamquest Corp. 16.31 0.045 2.54 0.010 0.78 0.006 19.63 0.026 Teradata 20.95 0.058 9.25 0.037 6.81 0.049 37.00 0.049 The SCO Group Inc. 8.46 0.023 5.75 0.023 1.76 0.013 15.97 0.021 TIBCO Inc. 4.04 0.011 3.47 0.014 0.59 0.004 8.10 0.011 Tidal Software Inc. 26.85 0.074 3.05 0.012 0.61 0.004 30.52 0.041 Tmax Soft – – – – 0.57 0.004 0.57 0.001 Touchpaper Software 1.24 0.003 13.21 0.054 1.09 0.008 15.54 0.021 Touchstone Software 2.40 0.007 – – – – 2.40 0.003 Trend Micro 234.40 0.644 206.10 0.835 385.50 2.787 826.00 1.103 Tripwire Inc. 34.69 0.095 2.89 0.012 3.72 0.027 41.30 0.055 Tumbleweed Communication Inc. 51.43 0.141 2.64 0.011 0.93 0.007 55.00 0.073 Turbolinux Inc. 0.25 0.001 0.08 0.000 8.03 0.058 8.36 0.011 UC4 26.06 0.072 28.58 0.116 0.26 0.002 54.90 0.073 Unisys 110.58 0.304 93.46 0.379 15.34 0.111 219.37 0.293 Utimaco Safeware AG 11.06 0.030 41.46 0.168 2.76 0.020 55.28 0.074 Vasco 7.54 0.021 15.07 0.061 2.51 0.018 25.12 0.034

Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007

Americas EMEA Asia/Pacific Worldwide Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Revenue ($M) Share (%) Vector Networks Ltd. 1.36 0.004 1.84 0.007 0.05 0.000 3.25 0.004 VeriSign Inc. 163.89 0.450 62.60 0.254 33.51 0.242 260.00 0.347 Vision Solutions Inc. 26.94 0.074 18.49 0.075 7.40 0.053 52.83 0.071 Visto 22.92 0.063 0.47 0.002 0.47 0.003 23.87 0.032 VMware Inc. 770.01 2.114 346.50 1.404 166.83 1.206 1,283.35 1.713 WatchGuard 12.25 0.034 5.25 0.021 – – 17.50 0.023 Wavelink Corp. 13.50 0.037 7.40 0.030 0.87 0.006 21.76 0.029 Webroot 92.18 0.253 17.56 0.071 – – 109.73 0.146 Websense 196.51 0.540 80.23 0.325 35.39 0.256 312.13 0.417 Webspy 1.22 0.003 – – 1.25 0.009 2.46 0.003 Yosemite Technologies 12.31 0.034 0.14 0.001 0.59 0.004 13.04 0.017 Subtotal 33,221.90 91.227 22,331.06 90.514 12,777.81 92.391 68,330.77 91.207 Other 3,195.03 8.773 2,340.42 9.486 1,052.27 7.609 6,587.73 8.793 Total 36,416.93 100.000 24,671.48 100.000 13,830.09 100.000 74,918.50 100.000

Source: IDC, 2008

TABLE 14

Worldwide Packaged Software Revenue by Top 50 Vendors and Operating Environment, 2007 ($M)

Linux/ Other Open Windows 32 Mainframe Unix Source and 64 Other Total Rank Microsoft – 134.34 3.87 44,449.44 1,503.00 46,090.66 1 IBM 9,692.78 4,704.11 1,109.88 4,771.12 1,545.81 21,823.70 2 Oracle 284.61 7,695.52 1,976.43 6,510.17 661.26 17,128.00 3 SAP 99.95 3,868.57 353.52 5,654.92 210.64 10,187.60 4 Symantec – 1,407.71 175.12 3,471.59 393.72 5,448.14 5 HP 3.27 2,438.48 92.18 1,596.51 481.07 4,611.51 6 EMC 218.95 1,682.39 57.97 1,263.18 715.42 3,937.91 7 CA 2,051.32 744.84 34.40 789.06 205.38 3,825.00 8 Siemens 451.67 1,311.89 58.46 1,285.64 699.92 3,807.57 9 Adobe – 33.62 14.06 2,302.81 742.41 3,092.90 10 Fujitsu 779.01 804.59 92.14 551.98 42.57 2,270.29 11 Sage Group – 43.43 86.86 1,997.78 43.43 2,171.50 12 Autodesk – 76.90 – 1,553.57 429.15 2,059.62 13 SAS 532.33 407.19 37.95 926.39 53.15 1,957.00 14 Sun Microsystems 184.23 1,390.89 60.51 159.17 4.68 1,799.48 15 Infor 67.76 270.01 33.88 1,104.49 304.92 1,781.06 16 Cisco – 457.44 21.33 1,222.35 60.60 1,761.72 17 Intuit – 146.20 1.66 1,126.45 306.69 1,581.00 18 BMC 663.00 531.89 – 364.23 17.98 1,577.10 19 Dassault Systemes 104.03 386.40 – 995.73 – 1,486.17 20 Cadence Design Systems – 1,390.15 52.90 26.45 – 1,469.50 21 SunGard 191.08 582.11 – 360.75 318.47 1,452.41 22 Hitachi 582.80 442.91 31.53 371.96 – 1,429.21 23 Citrix – 26.95 12.12 1,352.87 – 1,391.94 24 BEA 7.28 925.39 225.10 159.50 7.73 1,325.01 25 Business Objects – 151.45 22.96 1,124.39 – 1,298.80 26 VMware Inc. – 25.67 192.50 1,052.34 12.83 1,283.35 27 McAfee – 117.19 55.18 926.99 83.84 1,183.21 28 Vivendi – – – 809.34 346.85 1,156.19 29 Synopsys – 691.80 403.55 57.65 – 1,153.00 30 McKessonHBOC 4.17 751.55 – 236.03 156.98 1,148.73 31 Network Appliance – 130.17 8.74 275.91 577.66 992.49 32 Avaya Inc. 41.52 201.84 – 688.53 41.52 973.40 33 NEC 198.73 383.90 46.62 337.29 – 966.53 34 Cognos – 67.81 – 811.43 52.06 931.30 35 Sybase – 444.14 71.01 386.99 9.56 911.70 36 Apple – 756.31 – 75.20 78.46 909.97 37 Fiserv 267.96 – – 267.96 357.27 893.20 38 Trend Micro – 49.56 33.04 726.88 16.52 826.00 39 Misys – 310.33 – 282.13 169.64 762.10 40 Mentor Graphics – 577.07 0.25 131.77 37.92 747.00 41 Compuware 493.01 89.19 – 150.94 4.47 737.60 42 Teradata – 667.90 – 67.60 – 735.50 43 PTC – 134.35 – 569.65 – 704.00 44 Software AG 289.33 204.49 40.45 165.06 1.27 700.60 45 Cerner – 175.00 – – 525.00 700.00 46 Novell 3.56 6.11 194.34 67.64 420.45 692.10 47 Nortel Networks – 352.24 4.36 310.29 0.01 666.90 48

Worldwide Packaged Software Revenue by Top 50 Vendors and Operating Environment, 2007 ($M)

Linux/ Other Open Windows 32 Mainframe Unix Source and 64 Other Total Rank Fair Isaac 307.91 211.79 3.79 50.80 90.21 664.50 49 Quest Software – 524.49 5.42 99.56 1.51 630.98 50 Subtotal 17,520.27 38,928.30 5,614.09 94,040.46 11,732.03 167,835.15 Other 6,973.27 27,870.83 3,738.05 41,727.34 14,585.96 94,895.45 Total 24,493.54 66,799.13 9,352.14 135,767.80 26,317.99 262,730.60

Source: IDC, 2008

FUTURE OUTLOOK

Forecast and Assumptions

Assumptions

Table 15 summarizes the general underlying assumptions used to develop the market forecasts.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Top 3

assumptions

Economy IDC assumes that worldwide High. The economy is now a economic growth will be slow in net inhibitor on IT spending. 2008 and marginally better in 2009. All regions are expected to see a drop in GDP growth from 2007. IDC expects the economic forecasts it uses as inputs to decline during the year and is thus assuming GDP growth of one-half of one ↓ standard deviation lower than in ↓ the Consensus Economics May 2008 poll: United States = 1.1%, eurozone = 1.5%, Japan = 1.2%, and worldwide = 2.7%. 2009 will be slightly better worldwide as developed economies pick up but emerging economies drop in delayed reaction to the developed world.

Software industry The software industry is going High. The new software transformation through a major transformation, creation and delivery models including basic architecture should allow for a quantum (service-oriented architecture increase in the ability to deliver [SOA]), the way software is and integrate new software written (composite applications), functionality to ICT systems. and the way software is This should increase overall delivered (SaaS) and even spending, even as it lowers ↑ funded (advertising based). IDC costs. assumes that this transformation will take a decade but that it will, when done, allow for much faster and more dynamic delivery of software functionality.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Convergence Convergence is a complex High. Convergence will drive phenomenon working at many new competitive dynamics, levels — convergence of the offer new applications and telephone network and the functions to customers, and Internet; communications and IT strain the legal and regulatory technologies; consumer and systems. It will also drive enterprise technologies; and increased ICT spending. even storage, routing, and processing in the datacenter. Of these, perhaps the most overarching is the convergence ↑ of voice, video, and data ↑ communications. IDC assumes that this convergence is a permanent phenomenon and that it will pick up pace as the decade wears on. One measure is that IDC expects 1.9 billon users on the Internet and 3 billion users of the phone network by 2011. The overlap will be significant.

Macroeconomics

Profits Consensus Economics Moderate. Company profits estimates that U.S. profit growth will not be enough to fund ICT will be negative in 2008. IDC's initiatives; new projects will assumption for U.S. profit require cost cutting, quick ↓ growth is -3% for 2008 and 4% paybacks, and short for 2009. This is a far cry from implementation times. 20%+ profit growth in 2006.

Inflation Inflation remains under control. Low. Low inflation keeps Consensus Economics' January interest rates low and leads to 2008 poll forecasts that more capital spending, ↔ consumer prices worldwide will including on ICT. rise about 3%.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

U.S. housing The U.S. housing market Moderate. Consumer demand remains in trouble, with spending is over two-thirds of inventories building up, average the U.S. economy and a major prices flat or falling, and loans driver of exports in other harder to get. The worst of the countries. A falloff of consumer ↓ subprime loan debacle is over, spending would affect ITC ↓ but declining equity and higher markets not only directly but mortgage rates are hurting also indirectly as enterprise demand. This will continue into customers cut back because 2009. their customers have cut back.

Exchange rates Through 2007, the dollar Moderate. A stable dollar steadily fell against major makes it easier for vendors to currencies (except the yen). manage supply lines and Against a market basket of stabilizes the prices of imports currencies representing the IT and exports. spending market, the dollar fell about 6%. Given the current budget and trade deficits, over the long term, all indications are that the dollar will continue to lose value against most ↔ currencies. For the purpose of IT forecasts, IDC assumes no major impact on the economy. There may be impacts on regional or country economies (e.g., Canada), and it will become difficult to separate true global demand for IT products and services from exchange rate–driven revenue changes.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

IT governance and Compliance is still driving some Moderate. Compliance and regulatory IT spending, including governance will have a positive compliance Sarbanes-Oxley, Basel II, and impact on spending on HIPAA. We don't expect infrastructure software that compliance spending to crowd aids in the archiving, out other IT initiatives; in fact, protection, and recovery of compliance record-keeping data. Compliance spending could spur initiatives in other seems to be funding itself ↑ areas as companies clean up through better run business their act. Increased attention to operations. sound IT governance policies and compliance with regulatory requirements will drive an increased focus on storage and data management.

Internet policy While there has been much Low. Legislation allowing recent news about Internet carriers to offer different pricing security, privacy, and overseas and service to different sets of censorship, the policy initiative customers would enhance the with the most potential impact is position of large, entrenched the carrier move in the United customers and the carriers States to be allowed to charge themselves while inhibiting differential pricing for Internet innovation among start-ups ↓ access and the use of the new and competitors. The Internet higher-speed circuits being would bifurcate. installed. At the moment, all current telecom bills and net- neutrality legislation seem deadlocked. Expect new ones in 2008.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Technology/ service developments

Application market Several applications markets Moderate. In essence, buyers convergence are converging, such as PLM will get more "bang for their and PPM, content management, buck" from the convergence collaboration and portals, and trend, putting pressure on analytic applications with classic pricing, and resulting in more transaction applications across high-value bundling. In the enterprise applications addition, convergence will board. create new competition between heretofore noncompeting vendors, which will likewise result in pricing ↔ pressures. However, convergence will also create opportunities for selling converged solutions that deliver new areas of functionality to end users who did not previously have access to standalone solutions and who may become more productive as a result.

Dynamic IT IDC has identified the next style Moderate. Dynamic IT, by of computing — dynamic IT for adding coherence to the dynamic enterprises — as a enterprise usage of IT, seems style that dramatically increases to be spurring the market; the the effectiveness of IT. Within migration to virtualization and dynamic IT are a number of datacenter consolidation will important subtrends — allow companies to deploy new virtualization in the datacenter, applications faster. ↑ data federation, software as a service, and composite and rule-based applications. IDC assumes the transition to dynamic IT will be slow and labored, but will proceed nonetheless.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Digital marketplace The impact of the new digital High. Look for faster marketplace can be felt in the development of the SaaS concept of online or streaming model, more development of applications, new forms of composite applications, and databases, Web-delivered more directly competitive desktop software, integration of products (e.g., desktop Internet and enterprise search search). Also look for rapid and other functionality, content growth of Internet advertising delivery, and wireless revenue in emerging communications. The digital geographies. ↑ marketplace will affect content delivery, commerce, datacenter architectures, advertising, marketing, telecommunications, and social interactions. It may also accelerate the consumption of ICT in emerging geographies, where more and more online populations reside.

Service industry The rise of offshore IT services, Moderate. These trends transformation the increased integration of IT portend new competitive services inside business dynamics in the industry — services, and the advent of new software and online services service delivery models have competing with traditional IT created a new dynamic for IT services — as well as new services firms. Most firms have thresholds for delivery. Online developed a multishoring delivery models and capability and blended pricing operational standardization, model and are now working on from new technologies to ↑ ways to standardize on remote infrastructure services, ↑ technologies and will allow faster and more methodologies, deliver services efficient translation of service online or in new form factors, labor to client deliverable. invest in datacenters, and expand into business services. Despite the race to automate service creation and delivery, there is a looming talent shortage.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

The changing IT The IT domain that was once Moderate. This migration will domain the care and feeding of generate new staffing mainframes has evolved over demands (and shortages) but the years to include the create more ultimate demand management of enterprise for ICT. applications, deployment of software and applications to the workforce, and desktop automation. Now it is evolving again to take on responsibility for the phones, building automation, sensors and RFID, and sometimes even physical ↑ security as proprietary systems ↑ migrate to TCP/IP networks. Other new applications, such as Web 2.0 and real-time business analytics, are driving IT-based applications to the point of customer or employee contact and are becoming mission critical along the way. This could increase the need for IT to be so close to the business units as to be part of them rather than merely service organizations.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Pervasive This term refers to the High. The addition of billions of computing proliferation of client devices devices to the network edge and end-user or end-use will drive the need for more devices at the network edge. enterprise systems to deploy, IDC expects that by 2011, five manage, and make use of times as many non-PC devices them. It will also shift the will be connected to networks as prevailing traffic from the PCs — including Internet- center of the network outward enabled cell phones, networked to edge inward, which will entertainment and gaming affect computing and devices, automobiles, building communications architectures. ↑ automation systems, and ↑ industrial controllers. This doesn't even count RFID tags and sensors. IDC assumes that communicating client devices will proliferate at 5–10 times the rate of PCs installed. Devices will both converge (cells phones with more functionality) and diverge (single-use devices, such as RFID readers).

Green IT This is a term referring to a Moderate. The adoption of basket of technologies and green IT products and practices designed to minimize practices should increase power costs, carbon output, and demand for new IT products hazardous waste. IDC's and services. coverage of green IT can be found in numerous documents. The major impact of green IT will be seen in technology choices based on low power, more attention to asset disposal, ↑ and some change in vendor ↑ selection. Depending on the country, voluntary adherence to green IT principles could become law. IDC research reveals that that power and cooling expenses are growing four times as fast as new server spend, from half of the value of spending on new servers to nearly three-quarters by 2011.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Demographics The aging of the workforce in Moderate. We expect the the developed world and the continued rise of offshore IT growth of the workforce in services and business services lower-cost geographies will suppliers, the diversification of affect both the supply of and the services supply points to demand for IT. These may be blended models, and both long-term trends, but they are increased diversification of the already manifest in the entire ICT supply chain and globalization of the workforce risks from potential political or and the slow ICT market growth economic disruption. in places like Western Europe. IDC assumes that the center of ICT supply will migrate toward ↔ Asia and Eastern Europe and, in general, will diversify. IDC also expects renewed foreign direct investment (FDI) and venture capital (VC) funding for emerging markets such as China and India. ICT consumption will migrate to large population geographies as the center of gravity for IT shifts from the PC to the mobile phone.

Modular IT/ Many firms remain cautious with Moderate. Overall demand will risk aversion regard to major IT still fluctuate in the face of investment/project macroeconomic implementation and have shifted drivers/inhibitors, but the ↔ to a more modular approach market should be less volatile. ↔ with longer periods of testing Large firms are taking a more and slower rates of decision- long-term approach to IT than making implementation. in previous years.

RFID/sensors/ The near-term effect of RFID, Moderate. The addition of embedded systems sensors, and embedded billions of devices to the systems will be negligible when network edge will drive the ↑ it comes to IT forecasts, but the need for more enterprise ↑ long-term (5- to 10-year) impact systems to deploy, manage, could be profound. and make use of them.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Storage Storage management functions Moderate. More intelligent and management such as virtualization, migration, automated ways to manage policy-based classification, and data resident on storage helps data movement will continue to to mitigate the problem of a ↑ evolve to aid in managing fixed quantity of human ↑ increasing amounts of data. resources and allows users to leverage tiered storage more effectively.

Security Software is becoming more High. The ability to bury rather than less vulnerable. malware within other software Hackers and others continue to will become a dangerous trend find ways to misuse other that will lead to improved people's software. Initially this spyware software and increase was done by exploiting a the need for software and vulnerability, but hackers are application security tools at now finding ways to just software development and misappropriate software without deployment. It will also a vulnerability. In parallel, the increase the need for intrusion attack vectors will move to focus prevention software that on two new areas: application enforces application execution. software and, of even greater Although great for the security concern, the hypervisor layer. market, it could have a ↑ Security software is more likely dampening impact on software ↑ to be delivered as a service in general. It will become more and/or a security appliance than difficult to segment what is it will be bought as shrink- pure security software, what is wrapped products. inherent in a security appliance, and what is delivered as a software service. This has considerable impact on licensing and maintenance and may shift some traditional operating system revenue over to pure software appliance form factors.

Shift to enterprise Corporate and commercial Moderate. Linux revenue will Linux distributions users will be drawn toward see continued growth, but with enterprise Linux distributions low ASPs compared with other because of their long life cycle, server operating environments. ISV support, and feature/API Free Linux alternatives create ↓ stability. However, the single a competitive environment that largest competitor for enterprise limits upward scalability of Linux distributions will continue enterprise Linux distribution to be free Linux distributions. pricing.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Launch of Windows Windows Vista's launch in Moderate. Over the longer Vista and Windows January 2007 caused term, it will be "business as Server 2008 consumers to begin purchasing usual" for the Windows product Windows Vista on new PCs — shipments. Windows Vista since that is what OEMs now caused no significant long-term sell. As expected, we are seeing acceleration, and we expect no corporate adoption following the significant "bump" of tradition of moving slowly at first, acquisitions or deployment as application compatibility immediately following the testing, compliance testing, IT launch of Windows Server ↔ and end-user training, and 2008. ↔ having a critical mass of Windows Vista–ready machines installed are addressed. Windows Server 2008, expected during the first half of 2008, will be adopted on a timeline established by corporate IT practices and won't likely gain full speed until 2009.

Adoption of 64-bit We believe that 64-bit High. Over the longer term, client and server computing will remain largely most systems will move to 64- operating systems untapped among client devices, bit operating systems and on x86 hardware despite a dramatic transition applications, but this is a very over to 64-bit hardware over the long-term transition that will next two years. Application likely be absorbed as part of compatibility will be the largest other migrations, impediment, although for the replacements, or minority of applications that consolidations that take place need memory, disk access, or over the next 5–8 years. large database access, 64-bit will bring benefit. On servers, customers will begin to adopt ↑ 64-bit versions of Windows and ↑ Linux where workloads and applications are compatible, but only when the customers are convinced that supporting both 32-bit and 64-bit versions of the same operating systems creates no significant new overhead. Windows Server 2008 (expected 1H08) will be an important catalyst to move Microsoft server users over to 64-bit operating systems.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Software Advances in standards and High. Complexity will work to complexity application infrastructure (such the advantage of a vendor that as SOA), while making it easier provides an application or tools to build high-quality software, designed to reduce complexity. will add considerably to the However, indiscriminant and complexity of resultant uncoordinated development of applications. standards can also have the ↓ opposite effect. Complexity will ↓ also work to the advantage of large vendors that provide a single "integrated" software stack and is one of the key forces driving industry consolidation.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Service-oriented SOA is an evolving software Moderate. Many enterprises architecture and systems architectural style and vendors are focusing their that takes advantage of next generation of systems to distributed, networked, and be built following SOA modularized capabilities that constructs and are actively can be more discretely and building out the infrastructure flexibly applied to specific and fundamental cadre of requirements. In the long term, services to support its use. such capabilities will pave the However, for most way for new and innovative organizations, it will take years solutions to emerge. to develop and hone these environments. Leading-edge institutions and those with IT- centric models have been first out of the gate to take advantage of SOA, while the mainstream will slowly adopt certain elements and applications that are founded ↑ on SOA as these are packaged and introduced to market in more of a solution orientation. In the short- to midterm, organizations are and will be replacing aging systems with newer SOA-based solutions, thus driving some increases in spending for specific markets; meanwhile, in the mid- to long term, the effects of consolidation of core capabilities and the flexibility in which to source specific elements incrementally will potentially depress overall IT spending in this particular market.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Standards Standards provide recognition High. Standards have the and approval of specifications potential to affect a high regarding data and/or process. degree of industry change. Standards will accelerate the While standards curtail use of technology. competition pertaining directly to the standard, they also foster competition in areas ↑ derivative to the standard. ↑ While standards are largely perceived to be a good thing, the indiscriminant creation of standards could lead to inconsistency, thereby undermining vendor credibility.

Consolidation Consolidation will focus power Moderate. Consolidation is in the hands of a small number inevitable, but it is unclear if of very large vendors. consolidation is good or bad. Consolidation is good because it encourages broad-based vertical or horizontal integration, which tends to reduce perceived developer or end-user complexity. However, consolidation also can serve to ↔ reduce competition and ↔ therefore slow the pace of evolutionary market change. Consolidation is a relatively new phenomenon in the software industry, so while its effects are not yet well understood, industry change appears to be accelerating and innovation continues.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Application Applications will increasingly be High. Although RDBMS infrastructure based on runtime engines were the first clear infrastructures. This application example of application infrastructure will expand to infrastructure, application embrace all aspects of servers cemented this trend. application development, Application infrastructure now operations, and support. exists at almost every level of the "software stack" and is increasingly finding its way into ↑ hardware. While the existence ↑ of application infrastructure simplifies development, it also affords vendors another technique to facilitate lock-in. However, the benefits of application infrastructure far outweigh any risks associated with adoption.

Global adoption of The rapid rise of technology High. An entire new range of applications adoption in developing nations buyers are entering the is proceeding at a rate far applications markets, and this quicker than most anticipated. will fuel growth throughout the Prices, while not what have forecast period. Vendors that historically been paid in can excel at localization, developed nations, have support on-demand versions of increased as the developing their applications and even nations become more cognizant hybrid solutions (integration ↑ of the need to protect against on-demand and on-premise), piracy and as corporate financial plus can update their software results in those countries to include regional/country improve. options regarding culture and regulatory/compliance features (beyond basic localization) will see an increase in sales volumes.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Enterprise Portal, collaboration and content High. The enterprise workplace technologies will be applied in workplace will offer a quick creative new ways to render route to composite "composite" applications, but applications, which will be more oriented toward specific viewed by buyers as superior user or user role needs rather solution alternatives to old- than as a prepackaged set of fashioned "module" business processes. applications. The flexibility of "business integration on the glass" will drive buyers to ↑ switch budgets toward these types of efforts. Though underlying module prices may decrease (since users are only using pieces of those modules), the overall spend should increase and drive interest in this new class of offerings.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Market

characteristics

Hardware Hardware spending, about 40% Moderate. The availability of upgrades of total IT spending, will drive Microsoft Vista and Office spending as well in software 2007 will start driving and services. consumers to take advantage of many new features, including richer user interfaces, search, and security. However, corporate demand for upgrades will be tempered by normal conservative adoption ↔ curves typical for new Microsoft products, and by the decision to not include in Vista long-awaited features such as the WinFS file system/unified datastore for all application data and metadata that was intended to make it easier to search for and use information.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Internet Internet adoption is still going Moderate. The upside is more strong, especially in emerging likely than the downside economies. In the next four because the conventional years, 700 million new users will wisdom is that the Internet come online and commerce will revolution is over. On the double. By the end of 2012, contrary, less than 5% of total 80% of Internet users will commerce is conducted online. access the Internet using mobile Analysts and pundits may devices at least some of the underestimate the impact of time, and 27% of all households the Internet because the will have broadband access to "buzz" is gone. It will be an the Internet. As people spend enabler for new markets, more time online actively business models, and unified participating in Web 2.0 user interfaces for accessing technologies such as rich user applications and information. ↑ interfaces based on Ajax and Flash, social networking and tagging, blogs and wikis, Web mashups, and on-demand services in general, information workers will start expecting Enterprise 2.0 applications in the workplace that focus on providing easy-to-use and many-to-many personalized online experiences for creating, publishing, locating, and sharing information with colleagues, customers, and partners.

Commodity, Users will obtain, through Moderate. Pricing pressure volume-based volume channels, tools that offer and margin opportunity will solutions commodity, platform-specific, increase; the required and system management functionality for system ↑ functionality at no or very low management products will rise ↑ cost. and potentially demand more R&D budget from system management–centric vendors.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Vertical Many large applications vendors Moderate. This will raise the specialization by that play in the "horizontal" table stakes for industry- large vendors markets have begun to add specific best-of-breed vendors industry-specific offerings, to differentiate themselves. In through organic development addition, larger vendors can and/or acquisition, to their put pricing pressure on small product lines. vendors by offering deals involving horizontal ↓ applications, industry-specific ↓ applications, and infrastructure. This should shift revenue to larger vendors, albeit at lower prices, and augment overall large vendor market share but slow overall market growth.

Open source OSS is software that is provided Moderate. OSS today is software (OSS) with its source code. Although having its biggest impact on terms of use vary depending on mature markets where there is the type of license in effect, little product differentiation and OSS is now beginning to impact product innovation has slowed many software markets. significantly or ceased. OSS is an accelerator of technology use but inhibitor to price. OSS creates a downward pressure on prices where competing products are not well ↑ differentiated. The largest ↑ vendors are seeking to cast OSS as "starter kits" with limited functionality that primarily serve as "on ramps" into their high-priced products. OSS today provides an important glimpse into how software vendors will build value more around relationship and less around product.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

On-demand The software industry is going Moderate. On-demand applications through a major transformation, application specialists will force from basic architecture license-only suppliers to (software as a service) and the rethink their product delivery way software is written and licensing strategies and (composite applications) to the change their delivery to include way software is delivered on-demand and offer new (software as services) and even licensing options. Most funded (advertising based). IDC application providers already assumes that this offer "hosted" choices, so that transformation will take a is not a major impact. Though decade but that it will, when overall, on demand may ↑ done, allow for much faster and decrease prices at the outset ↑ more dynamic delivery of of a new application sale, over software functionality. Vendors the long run, it is not clear that offering infrastructureless vendors will recognize lower applications, aka "on demand," revenue, and the on-demand will continue to garner share trends will reach new buyer from license-only-oriented audiences that could not afford vendors, and this phenomena classic license applications. will spread to other applications beyond, for example, Web conferencing and sales automation.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Consumption

Saturation The concept of saturation is a Moderate. There will be a tricky one in the context of ICT. general increase in the amount Markets that seem saturated of research and marketing can be "unsaturated" by new devoted to segmentation; there price thresholds or new will also be potential functionalities that spur faster organizational disruption as replacement or bring new users vendors realign to better into the market. Thus IDC approach these segments. assumes that while all markets have a fixed number of potential adopters (people or companies), there is usually a price, feature, or solution that can drive additional spending. Also, with ↑ IT generally less than 3% of an enterprise's expenses (or a country's GDP), there is tremendous opportunity to turn internal spending on staff or business processes into external spending on ICT products and services. IDC assumes that market saturation will be a moving target that varies by submarket but, in almost all cases, can be countered.

Buyer sentiment ICT buyers have switched from Moderate. ICT buyer optimistic to pessimistic, as pessimism could affect evidenced by IDC's 2007 spending many markets. FutureScan Surveys. There seems to be no irrational ↓ sentiment against ICT, as there was several years ago, but buyers are adjusting to economic reality.

Key Forecast Assumptions for the Worldwide Software Market, 2008–2012

Accelerator/ Inhibitor/ Certainty of Market Force IDC Assumption Impact Neutral Assumption

Market ecosystem

Channels There will be no major changes Moderate. Vendors will need affecting IT spending; however, to examine traditional supplier we expect to see the importance channel relationships and of the ecosystem increasing. become more scientific about This is the result of the ecosystem decisions. IDC increasing need of customers assumes many will delay for solutions that integrate point action until more drastic products and services across rethinking is called for. The ↔ vendors, as well as the need for result in the near term could ↔ more vertical-specific solutions. slow market spending for some Additional impetus will come customer segments (e.g., from customer peer enterprise) while boosting relationships in growing others (e.g., SMB). communities and microvertical channels (e.g., salesforce.com's AppExchange).

Legend: very low, low, moderate, high, very high Source: IDC, June 2008

Forecast for the Worldwide Software Market

Table 16 presents IDC's projections for growth in the worldwide software market for 2008–2012 by primary market and geographic region. As shown in Figure 5, IDC expects steady growth in each of the primary markets throughout the forecast period, with a 2007–2012 CAGR of 7.7%. Figure 6 shows that IDC expects all three geographic regions will contribute to the growth of worldwide software market revenue.

Tables 17–19 highlight shifts in the revenue distribution by operating environment over the forecast period in each of the three primary markets. For packaged software as a whole, 32-bit and 64-bit Windows will continue as the leading operating environment, with a CAGR of 10.0% from 2007 to 2012, and reach $218.5 billion in revenue and a 57.3% market share by the end of the forecast period. Unix growth will continue to slow, with a CAGR of 4.7%, but will still remain solidly in second place, with a 22.1% market share in 2012 (down from 25.4% in 2007). Mainframe revenue is projected to continue to slowly decline over the forecast period (CAGR of -1.3%), and market share will decline to 6.0% by 2012 from 9.3% in 2007. Linux and other open source will continue to experience the largest growth, with a CAGR of 29.4%. By 2012, open source operating environments will attain a 8.9% market share (up from 3.6% in 2007).

Worldwide Packaged Software Revenue by Primary Market and Region, 2007–2012 ($M)

2007–2012 2007 2008 2009 2010 2011 2012 CAGR (%) Application development and deployment Americas 29,987 32,454 34,983 38,248 41,802 45,810 8.8 EMEA 21,754 23,833 26,107 28,620 31,228 34,037 9.4 Asia/Pacific 8,494 9,108 9,783 10,542 11,376 12,288 7.7 Subtotal 60,236 65,395 70,872 77,411 84,406 92,135 8.9 Applications Americas 68,260 72,222 76,286 80,888 86,537 92,673 6.3 EMEA 43,725 46,739 50,021 53,490 57,184 60,962 6.9 Asia/Pacific 15,592 16,786 18,175 19,659 21,363 23,242 8.3 Subtotal 127,576 135,746 144,481 154,037 165,084 176,877 6.8 System infrastructure software Americas 36,417 39,345 42,406 45,667 49,401 53,438 8.0 EMEA 24,671 27,175 29,684 32,186 34,698 37,325 8.6 Asia/Pacific 13,830 15,403 16,949 18,378 19,835 21,390 9.1 Subtotal 74,918 81,924 89,039 96,230 103,934 112,153 8.4 Total Americas 134,664 144,022 153,675 164,804 177,740 191,921 7.3 EMEA 90,150 97,746 105,811 114,296 123,111 132,324 8.0 Asia/Pacific 37,916 41,297 44,907 48,579 52,574 56,920 8.5 Total 262,731 283,065 304,393 327,678 353,424 381,164 7.7 Note: See Table 15 for key forecast assumptions. Source: IDC, 2008

Worldwide Packaged Software Revenue by Primary Market, 2007–2012

200 180 160 140 120 100 ($B) 80 60 40 20 0 2007 2008 2009 2010 2011 2012 Application development and deployment Applications

System infrastructure software

Source: IDC, 2008

FIGURE 6

Worldwide Packaged Software Revenue by Region, 2007–2012

250

200

150

($B) 100

0 2007 2008 2009 2010 2011 2012 Americas EMEA Asia/Pacific

Source: IDC, 2008

Worldwide Application Development and Deployment Software Revenue by Operating Environment, 2007–2012 ($M)

2007–2012 2007 2008 2009 2010 2011 2012 CAGR (%) Mainframe 9,367 9,790 9,794 9,787 9,701 9,549 0.4 Unix 17,652 18,169 18,818 19,708 20,365 21,245 3.8 Linux/other open source 4,216 5,712 7,242 9,119 11,213 13,561 26.3 Windows 32 and 64 25,534 28,426 31,699 35,462 39,613 44,117 11.6 Other 3,466 3,298 3,320 3,334 3,515 3,663 1.1 Total 60,236 65,395 70,872 77,411 84,406 92,135 8.9 Growth (%) NA 8.6 8.4 9.2 9.0 9.2 Note: See Table 15 for key forecast assumptions. Source: IDC, 2008

TABLE 18

Worldwide Application Software Revenue by Operating Environment, 2007–2012 ($M)

2007–2012 2007 2008 2009 2010 2011 2012 CAGR (%) Mainframe 6,181 5,531 5,370 5,206 5,026 4,825 -4.8 Unix 33,454 35,322 37,306 39,109 40,783 42,005 4.7 Linux/other open source 2,808 3,548 4,839 6,788 9,351 12,689 35.2 Windows 32 and 64 67,856 75,591 82,535 89,664 97,641 105,971 9.3 Other 17,277 15,755 14,432 13,270 12,282 11,386 -8.0 Total 127,576 135,746 144,481 154,037 165,084 176,877 6.8 Growth (%) NA 6.4 6.4 6.6 7.2 7.1 Note: See Table 15 for key forecast assumptions. Source: IDC, 2008

TABLE 19

Worldwide System Infrastructure Software Revenue by Operating Environment, 2007–2012 ($M)

2007–2012 2007 2008 2009 2010 2011 2012 CAGR (%) Mainframe 8,945 8,918 8,861 8,765 8,670 8,570 -0.9 Unix 15,693 16,842 17,907 18,906 19,953 20,960 6.0 Linux/other open source 2,328 3,275 4,207 5,221 6,335 7,632 26.8 Windows 32 and 64 42,378 47,110 52,143 57,250 62,680 68,445 10.1 Other 5,575 5,779 5,921 6,089 6,295 6,545 3.3 Total 74,918 81,924 89,039 96,230 103,934 112,153 8.4 Growth (%) NA 9.4 8.7 8.1 8.0 7.9 Note: See Table 15 for key forecast assumptions. Source: IDC, 2008

Market Context

A five-year forecast (2007–2011) was last published for the worldwide packaged software market in Worldwide Software 2007–2011 Forecast Summary (IDC #207829, July 2007). Table 20 compares the forecast published in that document with the current forecast in terms of regional and worldwide revenue and worldwide annual growth rates. Figure 7 displays the same data in graphical form.

Overall, 2007 turned out to be a better year (measured in U.S. dollars) than we projected a year ago, in part due to currency exchange rates. This is particularly evident in EMEA because of the strength of the euro versus the U.S. dollar.

TABLE 20

Worldwide Packaged Software Revenue, 2005–2012: Comparison of June 2007 and June 2008 Forecasts ($M)

2005 2006 2007 2008 2009 2010 2011 2012 June 2008 forecast Americas 111,318 121,498 134,664 144,022 153,675 164,804 177,740 191,921 EMEA 71,301 77,157 90,150 97,746 105,811 114,296 123,111 132,324 Asia/Pacific 29,879 32,451 37,916 41,297 44,907 48,579 52,574 56,920 Total 212,498 231,106 262,731 283,065 304,393 327,678 353,424 381,164 Growth (%) NA 8.8 13.7 7.7 7.5 7.6 7.9 7.8 June 2007 forecast Americas 111,540 121,363 132,084 143,382 155,544 168,120 181,085 EMEA 71,138 76,299 82,299 88,649 95,355 102,284 109,322 Asia/Pacific 29,637 32,759 35,698 38,718 41,883 45,135 48,731 Total 212,315 230,421 250,081 270,750 292,782 315,540 339,138 Growth (%) NA 8.5 8.5 8.3 8.1 7.8 7.5 Notes: See Worldwide Software 2007–2011 Forecast Summary (IDC #207829, July 2007) for prior forecast. Historical market values presented here are as published in prior IDC documents based on the market taxonomies and current U.S. dollar exchange rates existing at the time the data was originally published. For more details, see the Methodology section. Source: IDC, 2008

Worldwide Packaged Software Revenue, 2005–2012: Comparison of June 2007 and June 2008 Forecasts

250,000

200,000

150,000

($M) 100,000

50,000

0 2005 2006 2007 2008 2009 2010 2011 2012

Americas June 2008 forecast Americas June 2007 forecast EMEA June 2008 forecast EMEA June 2007 forecast Asia/Pacific June 2008 forecast Asia/Pacific June 2007 forecast

Source: IDC, 2008

ESSENTIAL GUIDANCE

The IDC predictions highlighted in the Worldwide Software Market Drivers, 2008– 2012 section of this study point to areas vendors should be considering for future success in light of the very volatile and uncertain economic climate. How your organization adapts to the challenges (and opportunities) presented by such market drivers as vitualization, hypergrowth emerging markets, software appliances, and SOA will in large part determine future success in the ever-changing software marketplace.

LEARN MORE

Related Research

Forecast and Competitive Analysis Documents

Worldwide Software On-Demand 2008–2012 Forecast and 2007 Vendor Shares: Moving Toward an On-Demand World (IDC #213197, forthcoming)

Worldwide Enterprise Portal Software 2008–2012 Forecast Update and 2007 Vendor Shares: A New Landscape (IDC #213165, July 2008)

Worldwide Storage Replication Software 2008–2012 Forecast: Steady Growth Throughout the Segment (IDC #213162, July 2008)

Worldwide CRM Applications 2008 Vendor Shares: Oracle and SAP Dominate the Top (IDC #213081, July 2008)

Worldwide Enterprise Applications 2008–2012 Forecast Update and 2007 Vendor Shares (IDC #213063, July 2008)

Worldwide Customer Service Applications 2008 Vendor Shares: Economic Uncertainty Will Drive Service Applications (IDC #213028, July 2008)

Worldwide Marketing Automation 2008 Vendor Shares: It's Always Been About Marketing, Hasn't it? (IDC #212993, July 2008)

Worldwide Business Intelligence Tools 2007 Vendor Shares: Query, Reporting, and Analysis, and Advanced Analytics Markets Stable in the Face of Economic Turmoil (IDC #212921, June 2008)

Worldwide Relational Database Management Systems 2007 Vendor Shares (IDC #212840, June 2008)

Worldwide Collaborative Applications 2007 Vendor Shares: A Look at Revenue by Submarket (IDC #212737, June 2008)

Worldwide Treasury and Risk Management Applications 2008–2012 Forecast and 2007 Vendor Shares (IDC #212523, June 2008)

Worldwide Application Development Software 2008–2012 Forecast (IDC #212432, May 2008)

Worldwide Application Deployment Software 2008–2012 Forecast (IDC #212358, May 2008)

Worldwide Small and Medium-Sized Business Enterprise Applications 2008– 2012 Forecast (IDC #212353, May 2008)

Worldwide CRM Applications 2008–2012 Forecast: First Look (IDC #212324, May 2008)

Worldwide Software Configuration Management 2008–2012 Forecast: Straddling Change in a Challenging Global Climate (IDC #212315, May 2008)

Worldwide Database Development and Management Tools 2008–2012 Forecast (IDC #212291, May 2008)

Worldwide Enterprise Portal Software 2008–2012 Forecast (IDC #212255, May 2008)

Worldwide Application Development and Deployment 2008–2012 Forecast (IDC #212232, May 2008)

Worldwide Archiving Software 2008–2012 Forecast (IDC #212216, May 2008)

Worldwide Data Protection and Recovery Software 2008–2012 Forecast (IDC #212213, May 2008)

Worldwide and Americas Software Channel 2008–2012 Forecast: A Preliminary View (IDC #212191, May 2008)

Worldwide Storage Software 2008–2012 Forecast (IDC #212187, May 2008)

Worldwide Virtual Machine Software 2008–2012 Forecast (IDC #212142, May 2008)

Worldwide Software Maintenance 2008–2012 Forecast: A Preliminary View (IDC #212033, May 2008)

Worldwide Email Archiving Applications 2008–2012 Forecast (IDC #212017, May 2008)

U.S. Social Networking Application 2008–2012 Forecast: Enterprise Social Networking Takes Hold (IDC #211945, May 2008)

Worldwide Data Integration and Access Software 2008–2012 Forecast (IDC #211636, April 2008)

Worldwide Search and Discovery Software 2008–2012 Forecast: Preliminary Overview (IDC #211602, April 2008)

Worldwide Unix Operating Environments 2008–2012 Forecast: Tearing a Page from the Linux Ecosystem (IDC #211565, April 2008)

Worldwide Client and Server Operating Environments 2008–2012 Forecast: The Era of Hypervisor-Induced Transitions (IDC #211564, April 2008)

Worldwide Linux Operating Environments 2008–2012 Forecast: Taking Linux to the Next Level (IDC #211562, April 2008)

Worldwide Financial Performance and Strategy Management 2008–2012 Software Forecast: Preliminary 2007 Results (IDC #211445, March 2008)

Worldwide Consumer Security 2008–2012 Forecast and Analysis: Looking Sweet for Suites (IDC #211432, March 2008)

Worldwide System Operations Software 2008–2012 Forecast (IDC #211380, March 2008)

Worldwide Performance and Availability Management Software 2008–2012 Forecast (IDC #211376, March 2008)

Worldwide Content Management Software 2008–2012 Forecast: Continued Steady Growth (IDC #211346, March 2008)

Worldwide Collaborative Applications 2008–2012 Forecast: A First Look at the Numbers (IDC #211335, March 2008)

Worldwide Problem Management Software 2008–2012 Forecast (IDC #211331, March 2008)

Worldwide Business Intelligence Tools 2008–2012 Forecast: Limited Impact of Short-Term Economic Uncertainty (IDC #211327, March 2008)

Worldwide Business Analytics Services 2008–2012 Forecast: Slight Reduction in Expected Growth as Economy Falters (IDC #211324, March 2008)

Worldwide Mobile Security 2008–2012 Forecast and Analysis (IDC #211312, March 2008)

Americas Secure Content and Threat Management 2008–2012 Forecast (IDC #211309, March 2008)

Worldwide Enterprise Applications 2008–2012 Forecast (IDC #211287, March 2008)

Worldwide Collaborative Product Development Applications 2008–2012 Forecast: A First Look (IDC #211282, March 2008)

Worldwide Federated Identity and Access Management Software 2008–2012 Forecast (IDC #211232, March 2008)

Worldwide Windows Client Operating Environments 2008–2012 Forecast: Windows Vista Momentum Picks Up Steam (IDC #211087, March 2008)

Worldwide Windows Server Operating Environments 2008–2012 Forecast: The Era of 64-Bit, Hypervisors, and Windows Server 2008 Begins (IDC #211067, March 2008)

IDC Predictions Documents

Worldwide Application Development and Deployment 2008 Top 10 Predictions (IDC #211118, February 2008)

Worldwide SMB 2008 Top 10 Predictions: Next-Generation Technology to Gain Traction Despite Economic Slowdown (IDC #210535, January 2008)

Worldwide Applications 2008 Top 10 Predictions (IDC #210514, January 2008)

Worldwide Security 2008 Top 10 Predictions: Security's Troublesome Twins, Crime and Compliance, Ride the Web to Drive 2008 Trends (IDC #210400, January 2008)

Worldwide PLM Applications 2008 Top 10 Predictions (IDC #210364, January 2008)

Information Access and Analysis Predictions for 2008: Consolidation, Specialization, Eureka 2.0 and the Wisdom of Crowds (IDC #210362, January 2008)

Worldwide Human Capital Management 2008 Top 10 Predictions (IDC #210339, January 2008)

Worldwide Software Business Strategies 2008 Top 10 Predictions (IDC #210334, January 2008)

Worldwide Storage 2008 Top 10 Predictions: New Paradigms (IDC #209796, December 2007)

IDC Predictions 2008: The Post-Disruption Marketplace Takes Shape (IDC #209776, December 2007)

Worldwide System Infrastructure Software 2008 Top 10 Predictions (IDC #209633, December 2007)

Other Related Research

IDC's Software Taxonomy, 2008 (IDC #210828, February 2008)

Worldwide Software 2007–2011 Forecast Summary (IDC #207829, July 2007)

Appendix A: Worldwide Software Market Sizing and Forecast Methodology

The IDC software market sizing and forecasts are presented in terms of packaged software revenue. IDC uses the term packaged software to distinguish commercially available software from custom software, not to imply that the software must be shrink-wrapped or otherwise provided via physical media. Packaged software is programs or codesets of any type commercially available through sale, lease, rental, or as a service. Packaged software revenue typically includes fees for initial and continued right-to-use packaged software licenses. These fees may include, as part of the license contract, access to product support and/or other services that are inseparable from the right-to-use license fee structure, or this support may be priced separately. Upgrades may be included in the continuing right of use or may be priced separately. All of the above are counted by IDC as packaged software revenue.

Packaged software revenue excludes service revenue derived from training, consulting, and system integration that is separate (or unbundled) from the right-to- use license but does include the implicit value of software included in a service that offers software functionality by a different pricing scheme. It is the total packaged software revenue that is further allocated to markets, geographic areas, and operating environments.

The market forecast and analysis methodology incorporates information from five different but interrelated sources, as follows:

Reported and observed trends and financial activity. This study incorporates reported and observed trends and financial activity in 2007 as of the end of April 2008, including reported revenue data for public companies trading on North American stock exchanges (full-calendar-year 2007 data in nearly all cases).

IDC's Software Census interviews. IDC interviews all significant market participants to determine product revenue, revenue demographics, pricing, and other relevant information.

Product briefings, press releases, and other publicly available information. IDC's software analysts around the world meet with hundreds of software vendors each year. These briefings provide an opportunity to review current and future business and product strategies, revenue, shipments, customer bases, target markets, and other key product and competitive information.

Vendor financial statements and related filings. Although many software vendors are privately held and choose to limit financial disclosures, information from publicly held companies provides a significant benchmark for assessing informal market estimates from private companies. IDC also builds detailed information related to private companies through in-depth analyst relationships and maintains an extensive library of financial and corporate information focused on the IT industry. We further maintain detailed revenue by product area models on more than 1,000 worldwide vendors.

168 #213259 ©2008 IDC IDC demand-side research. This includes thousands of interviews with business users of software solutions annually and provides a powerful fifth perspective for assessing competitive performance and market dynamics. IDC's user strategy databases offer a compelling and consistent time-series view of industry trends and developments. Direct conversations with technology buyers provide an invaluable complement to the broader survey-based results.

Ultimately, the data presented in this study represents IDC's best estimates based on the above data sources as well as reported and observed activity by vendors and further modeling of data that we believe to be true to fill in any information gaps.

The data in this study is derived from all the above sources and entered into the Software Market Forecaster (SMF) database, which is then updated on a continuous basis as new information regarding software vendor revenues becomes available. For this reason, the reader should note carefully the "as of" date in the Methodology discussion within the "In This Study" section, near the beginning of this study, whenever making comparisons between the data in this study and the data in any other software revenue study.

Historical Market Values

Historical market values presented here are based on the market taxonomies and current U.S. dollar exchange rates existing at the time the data was originally published. For markets other than the United States, these as-published values are based on current dollar exchange rates (i.e., a different rate for each year). This means that historical market growth includes fluctuations in exchange rates, which can be significant.

Because many individual countries contribute to the regional totals, it is difficult to give precise differences between current and constant currency growth in this study. However, the scale of the difference can be understood from the movement of the U.S. dollar against major regional currencies. Customers should consider multiplying regional historical market values for each year in this study by the change in value of the U.S. dollar against representative currencies in each region (e.g., the euro in EMEA and the Japanese yen in Asia/Pacific; see Table 21). This will provide a better approximation of local market growth in each region. For instance, the value in U.S. dollars of a market in 2006 in EMEA could be adjusted upward by 9% (reducing the 2006–2007 growth), while that in Asia/Pacific could be lowered by 1% (increasing the 2006–2007 growth).

Please refer to IDC's regional research studies containing historical forecast information for multiple countries for more accurate regional market growth in local currency constant values. Note that this discussion applies only to historical market values, not forecast values, which are always presented in constant dollars, because we do not forecast exchange rates.

Exchange Rates, 2003–2007 (%)

2003 2004 2005 2006 2007 EMEA Euro 121 110 110 109 100 Asia/Pacific Japanese yen 98 92 93 99 100 Latin America Mexican peso 99 103 100 100 100 Brazilian real 160 150 125 112 100 Canadian dollar 130 121 113 106 100 Note: To restate prior-year U.S. dollars in 2007 U.S. dollars, multiply historical market values by the percentage indicated in the table. Source: IDC, January 2008

Appendix B: Worldwide Software Market Forecast Summary Glossary

IDC's software research programs maintain a centralized database that includes worldwide total packaged software revenue for more than 1,000 software vendors. We do not contend that this is an exhaustive list of software providers; in fact, we believe there are more than 10,000 such suppliers. However, our database is designed to support very precise forecasting, and the suppliers in the database represent a majority of the software market's revenue overall and a majority of the revenue in each of the various segmentations it supports. The revenue is allocated to functional market segments, geographic areas, revenue types, industries, channels, and operating environments. The functional software markets defined by the taxonomy represent a collectively exhaustive and mutually exclusive view of the worldwide software marketplace.

IDC's software market taxonomy is the basis for the relational multidimensional schema of the IDC Software Market Forecaster research database. The information from this continually updated database is used by IDC's software Continuous Intelligence Services (CISs) (i.e., our subscription research services) to generate consistent packaged software market sizing and forecasts. In addition, the Worldwide Software Market Forecaster pivot table subscription products offer a comprehensive view of information included in the research database.

Total packaged software revenue is defined as license revenue plus maintenance revenue plus subscription and other software revenue. It is primarily the total packaged software revenue that is further allocated to markets, geographic areas, and operating environments. In addition to total packaged software revenue, IDC collects software license revenue, software maintenance revenue, subscription- and other software-related revenue, and total company revenue:

170 #213259 ©2008 IDC License revenue includes revenue collected for software licenses, either limited term (lease) or perpetual, that include licenses for new installations of a software product, licenses for additional software options, changes to existing licenses permitting more users or more computer system resources to be used by the licensed software (based, of course, on the original license agreement); such changes are often necessitated by server upgrades or staff increases or conversions of licenses that result in incremental additional revenue such as conversions from a fixed number of users or processors to a site or enterprise license.

License revenue does not include license maintenance revenue, which typically includes fees covering version upgrades, the automatic delivery of bug fixes and patches, and basic telephone support, all of which are normally delivered during a fixed, renewable term of service.

Maintenance revenue consists of fees charged for continuous improvement of the software by repairing known faults and errors and/or enhancing and updating the product, as well as for technical support.

Subscription/other software revenue consists of fees to use software products and to receive maintenance and support for those software products for a limited period of time. Subscriptions consist of bundled software and services where the fair value of the license fee is not separately determinable from maintenance/support. This category also includes software lease or rental revenue (often, but not exclusively, applied to mainframe software).

What Is Packaged Software?

How does IDC identify the companies it measures and the resulting value of the markets? Our objective is to define companies and markets that are relevant for market research purposes — not for legal or accounting purposes nor simply for publishing historic lists. Clearly, many companies have software and other types of business units; this taxonomy is not about deciding on the relative strengths of these business units and applying a single label to the entire company.

The question therefore is, When does a company market and deploy software that should be counted as such for market research purposes?

IDC uses the term packaged software to distinguish commercially available software from custom software, not to imply that the software must be shrink-wrapped or otherwise provided via physical media. Packaged software is programs or codesets of any type commercially available through sale, lease, or rental, or as a service. Packaged software revenue typically includes fees for initial and continued right-to- use packaged software licenses. These fees may include, as part of the license contract, access to product support and/or other services that are inseparable from the right-to-use license fee structure, or this support may be priced separately. Upgrades may be included in the continuing right of use or may be priced separately. All of the above are counted by IDC as packaged software revenue.

©2008 IDC #213259 171 Packaged software revenue excludes service revenue derived from training, consulting, and systems integration that is separate (or unbundled) from the right-to- use license but does include the implicit value of software included in a service that offers software functionality by a different pricing scheme (as described directly below in more detail).

Increasingly, packaged software is also being marketed and deployed on a subscription and transaction basis, as well as via other arrangements (e.g., for "free" with the packaged software's "owner" taking a percentage of the revenue enabled by the software as implicit "product" revenue), some of which do not involve a license. Software has also long been available for lease or rent, typically on mainframes. Furthermore, we must not be limited by accounting directives (such as those released by AICPA and FASB) because this would neglect to count large segments of software markets in a way that accurately reflects market dynamics and future opportunity.

IDC's Software Market Forecaster research database includes revenue from a company if the company competes in a packaged software market defined in the taxonomy. From the market research standpoint, this is the most important question. Software revenue is defined in terms of two types of offerings from the viewpoint of the customer:

The market for software code of a given functionality sold as such, typically via a perpetual license

The market for software code bundled and marketed in another way (e.g., an application service) that competes with perpetually licensed software products

To be classified as packaged software revenue attributed to a company in the Software Market Forecaster research database, all of the following have to be true:

Ownership of intellectual property. Application service providers (ASPs) that do not own the software code are not software vendors but channels for software vendors. However, some vendors own the code and also provide an ASP offering. In this case, IDC estimates a value for the software provided in that manner. However, in the case of packaged open source software (where there is no "owner" of the intellectual property), revenue is attributed to the distributor.

Product is replicated. Software companies assemble a package of code from components and "sell" multiple copies in a one-to-many business model. The software product is replicated to support that model. Even though it may be customized as it is being installed, when the customization capability is an attribute built into the code, it is still considered replicated. Value-added resellers (VARs) do customization to packaged software, often on a one-to-one basis. In this case, VARs are a channel for the software. When a company takes code and adds its own changes and sells the resulting package substantially as changed to many customers, it is — in turn — an ISV that resells or OEMs components and adds value. (In these cases, IDC estimates the pass-through revenue and deducts it from the reseller and attributes it to the original owner of the intellectual property so as not to double count revenue and artificially inflate the size of the software market.)

172 #213259 ©2008 IDC Competitive domain includes packaged software companies that license intellectual property rights to functionally similar software code. There are companies that offer to their customers packaged software functionality not via a right-to-use license but as a "service" that is wholly or partially based on software functionality. In this case, the question becomes, Does the company compete with packaged software companies that provide the same functionality? If so, a significant part of the basis of competition is the functionality of the software. Thus, there is a software component of the service company's revenue stream, and the value of the software must be "implicitly derived" or "attributed" and subtracted from the commingled revenue stream. Counting becomes difficult if the commingled product never has had a history of standalone software sales, and thus there is no requirement (from accounting rules) for calling out the revenue on the income statement. This accounting rule does not change the market dynamics — as far as the customer is concerned, services with the same functionality are available as substitutes for licensed software products, and IDC must account for this in our estimate of the size of the software market. This procedure has been used by IDC in the operating system market for many years when operating system revenue is bundled with hardware platforms. The operating system is an important part of the value of the competitive hardware offering. Software vendors sometimes do not offer the same functionality in standalone form.

General Functional Market Definitions

The worldwide software market includes all packaged software revenue across all functional markets or market aggregations.

Primary software markets are the aggregation of the functional markets for applications, AD&D, and system infrastructure. The three primary markets together make up the worldwide software market.

Secondary software markets are 19 important aggregations that make up IDC's packaged software market taxonomy. These secondary markets are consumer applications, collaborative applications, content applications, enterprise resource management (ERM) applications, supply chain management (SCM) applications, operations and manufacturing applications, engineering applications, customer relationship management (CRM) applications, information and data management software, application development software, quality and life-cycle tools, application server middleware, integration and process automation middleware, other development tools, data access, analysis and delivery software, system and network management software, security, storage software, and system software. These markets map into the three primary markets and collectively equate to the worldwide software market.

Functional markets are the focal point of IDC's analysis. IDC defines 81 individual functional markets for which it analyzes revenue by vendor, geography, and operating environment. Functional markets also provide the foundation and revenue base for the generation of competitive markets.

©2008 IDC #213259 173 Submarkets describe one or more discrete functional areas within a specific market. Although submarket-level data may be reported in selected IDC studies, this level of detail is not recorded in the Software Market Forecaster database.

Applications Market Definitions

Packaged application software includes consumer, commercial, industrial, and technical programs and codesets designed to automate specific sets of business processes in an industry or business function, to make groups or individuals in organizations more productive, or to support entertainment, education, or data processing in personal activity. The packaged application market includes the consumer, collaboration, content, and enterprise applications subsegments; the enterprise applications market, in turn, is made up of the enterprise resource management, supply chain management, operations and manufacturing, engineering, and CRM applications markets.

Consumer Applications

Consumer applications are software products for recreation, education, and/or personal productivity enhancement.

Consumer Software

The consumer software market includes home education/edutainment products sold to homes for specific educational purposes (for either adults or children) or reference (e.g., dictionaries and encyclopedias); games and entertainment (sports, adventure/role playing, arcade/action, strategy, and family entertainment applications); and home productivity that covers the software categories of home creativity, including all help, how-to, and lifestyle applications (e.g., cookbooks); personal productivity products, including resume writers, standalone calendars, expense records, will makers, and family-tree makers; and personal finance and tax preparation programs.

Note: IDC does not provide detailed functional analysis of the consumer applications market but tracks related revenue to provide a holistic view of the industry because some software providers market consumer, collaboration, content, and enterprise applications as well as other types of software.

Collaborative Applications

Collaborative applications enable groups of users to work together by sharing information and processes. Definitions of collaborative applications markets are presented in the following sections.

Integrated Collaborative Environments

Integrated collaborative environments (ICEs) provide a framework for electronic collaboration, typically within an organization, based on shared directory and messaging platforms. The core integrated-functionality areas are email, group calendaring and scheduling, shared folders/databases, threaded discussions, and custom application development. Administration and customization are generally performed by centralized IT staff.

Messaging applications consist of the following submarkets:

Standalone email applications provide a platform based on a message store, a message transfer agent (MTA), a directory, and access protocols for use by enterprises or service providers to host email users over a local or wide area network, the Internet, or a dial-up connection.

Instant messaging applications provide instantaneous text messaging between users who are online. Instant messaging management products are deployed in conjunction with an EIM application server or service to provide enhanced management, mobility, security, connectivity, or regulatory compliance.

Unified messaging applications provide a single mailbox for email, fax, and voice messages accessible by PC, Web browser, and telephone.

Team Collaborative Applications

Team collaborative applications (TCAs) provide an integrated set of Web-based tools for collaboration among team members from one or more organizations. The core integrated functionality areas are shared work spaces for managing and sharing files, assigning and coordinating tasks, and maintaining other project and team information. User and workspace administration, configuration, and customization are generally performed by individual users. Although all work asynchronously, several have added real-time collaborative tools.

Collaborative applications designed for a particular vertical market such as manufactured product design or life-cycle development (product data management [PDM] and product life-cycle management [PLM]) are not included here.

Conferencing Applications

Conferencing applications provide a real-time connection for the exchange, creation, and viewing of information by two or more users during scheduled or spontaneous online meetings or events.

Other Collaborative Applications

Other collaborative applications include group calendaring and scheduling applications as well as those designed specifically for collaborative applications to provide enhanced capabilities such as workflow and imaging. (General-purpose applications are not included here.)

Content Applications

Content applications include content management software, authoring and publishing software, search and discovery software (including translation and globalization software), and enterprise portals. The specific market definitions are presented in the following sections.

Content management software builds, organizes, manages, and stores collections of digital works in any medium or format. The software in this market includes document management, Web content management, capture and image management, digital asset management, and records management. Content management forms the foundation or the infrastructure for knowledge management.

Applications in this market include one or more of the following functions:

Gathering and feeding documents and other media into collections via crawlers or other automated and/or manual means and performing metadata capture/enrichment, formatting, transformations, and/or conversion operations.

Organizing and maintaining information, including some or all of the following:

Indexing, cataloging, and/or categorizing information in the content management system

Building directories

Defining workflows for tracking documents and changes and sending alerts when action is required

Record keeping, auditing, and logging

Updating and purging content

Searching for information in the content management system (embedded tools may be provided)

Ensuring document security by managing rights and permissions to create, edit, post, or delete materials; managing user access; and protecting intellectual property.

Authoring and Publishing Software

Authoring and publishing software is defined as software used to create, author, edit, and publish content, including text documents, spreadsheets, presentations, images, audio, video, and XML-structured documents. It does not include the software used to design Web sites. Authoring and publishing software is further segmented into seven categories:

Office suites includes word processors, spreadsheets, and presentation software.

Graphic design and layout includes image editing software and layout and design software .

Compound document authoring and publishing includes manual XML authoring software as well as software for the automated and semiautomated generation of paginated, structured electronic documents from content components.

176 #213259 ©2008 IDC Forms design and input software includes software to design forms, render the forms for display, and enter data into the forms but not to route, manage, or process the forms beyond form-level validation or actions.

Audio/video (AV) authoring software lets professionals and advanced consumers edit, manipulate, and assemble audio and video content, including the creation of custom professional CDs and DVDs.

Information diagramming applications provide for the diagramming and visual representation of information.

Other authoring tools include tools for creating elearning content, online help, and other types of content.

Search and Discovery

Search and discovery applications create access to unstructured information. They also provide alternative access to structured data. This group of software applications analyzes, tags, and searches text, often in multiple languages, and rich media such as audio files, video, and image files. This market also includes extended search platforms, search engines, question-answering applications, categorization/metadata tagging tools, categorizers and clustering engines, visualization tools for information navigation and analysis, filtering and alerting tools text analytics and, beginning in 2007, translation and globalization software (which was formerly covered as a separate functional market). The following are the major submarkets for the search and discovery market:

Search engines, platforms, and applications

Text mining and text analytics

Browsing and guided navigation

Categorizers and clustering engines

Question answering

Language analyzers

Rich media search

Translation and globalization software

Enterprise Portals

Enterprise portals integrate access to information and applications and present it to the business user in a useful format. This software is used by business users but includes IT administration tools and natively has some level of the following functionality:

Role-based or rule-based administration

Collaboration functionality

Access to structured data such as end-user query and reporting

Enterprise Resource Management Applications

Enterprise resource management applications are designed to automate and optimize business processes related to resources required to meet business or organizational objectives but are not customer or prospect facing or specialized to various types of engineering. The resources automated include people, finances, capital, materials, and facilities. The resulting applications forecast, track, route, analyze, and report on these resources. The market includes software that is specific to certain industries as well as software that can handle requirements for multiple industries.

Definitions of the relevant functional application segments are presented in the following sections.

Financial Accounting Applications

Financial applications are designed to support accounting, financial, and treasury and risk management functions. The financial applications market consists of the following submarkets:

Accounting software supports general financial management business processes such as accounts payable, accounts receivable, general ledger, and fixed asset accounting, as well as more specialized functions such as credit and collections management and automation, dispute resolution, enterprise spend management, project accounting and costing, tax and revenue management and reporting, nonprofit fund accounting, point of sale, invoicing, electronic bill presentment and payment, and transactional financial reporting and business intelligence embedded into accounting applications.

Treasury and risk management applications support corporate treasury operations (including the treasuries of financial services enterprises) with the corresponding financial institution functionality and optimize related cash management, deal management, and risk management functions as follows:

Cash management automation includes several treasury processes involving electronic payment authorization, bank relationship management, cash forecasting, and others.

Deal management automation includes processes for the implementation of trading controls, the creation of new instruments, market data interface from manual or third-party sources, and others.

Risk management automation includes performance analysis, Financial Accounting Standard (FAS) 133 compliance, calculation of various metrics used in fixed-income portfolio analysis, market-to-market valuations, and others.

Human capital management (HCM) applications software automates business processes that cover the entire span of an employee's relationship with the corporation (as opposed to the department or group to which the employee belongs) as well as management of other human resources used by the enterprise (e.g., contingent labor, contractors, and consultants), including — increasingly — human resources employed by suppliers and customers. The center of the HCM applications suite is designed for core HR functions such as personnel records, benefits administration, and compensation. Increasingly, these functions are being delivered as employee self-service or manager self-service in order to automate record keeping and updating as well as consolidated reporting.

Globalization, flexible work rules, job mobility, and the strategic importance of people assets have forced organizations to transform their human resources systems into a more real-time, personalized, and operational intelligence business function that goes beyond the traditional view of aggregating personnel data. Core HR functions are being supplemented by extensions that form the basis of a new generation of HCM applications framework. The extensions are categorized in four major segments or submarkets: erecruiting, incentive management, performance management, and workforce management. Increasingly, core HR applications are also adding selective and functional-equivalent features of these HCM extensions to meet changing customer requirements. The following describe the functional aspects of these HCM extensions.

eRecruiting applications are designed to automate the recruitment process through better tracking of applicants, screening and skills assessment, profiling and resume processing, and identifying talents inside or outside the organization. Key features include:

Managing skills inventories

Creating and managing job requisitions

Identifying appropriate employment candidates

Coordinating team collaboration within hiring processes

Facilitating resource planning

Deploying workers to appropriate jobs, projects, or teams

Incentive management applications are designed to automate the process of providing cash and noncash incentives to employees, partners, and external users through advanced modeling, reporting, and built-in interfacing to payroll accounting systems. Key features include:

Quota and territory management

Calculation and distribution of commissions, spiffs, royalties, incentives to employees, and channel and business partners

Linking incentives — cash and noncash — to business objectives

Payroll and payment engine interfaces

Account payables integration

HR performance management applications are designed to automate the aggregation and delivery of information pertinent to the linking of job roles and the mission and goals of the organization. More specifically, the system allows users to automate the performance review process by using mechanisms such as training and key performance indicators (KPIs) to constantly track and monitor the progress of an individual employee, work team, and division. Key features include:

Assessment of individual and organizational skills gaps that impede performance and job advancement, as in ability testing

Continuous reviews and establishing milestones

360-degree evaluation and real-time feedback

Performance appraisal automation

Competency assessment and management

Goal setting and tracking

Employee surveys

Alignment of human assets to corporate objectives

Learning development and career improvement programs

Fast tracks for top performers

Delivering training based on certification requirements

Succession planning

Workforce management applications are designed to automate the deployment of the workforce through workload planning, scheduling, time and attendance tracking, resource management, and rules and compliance management. Increasingly, workforce management applications are being integrated into customer relationship management applications in a contact center environment. Through extensive use of workforce management applications, organizations are also able to develop training guidelines, career advancement plans, and incentive compensation programs to improve, motivate, and sustain the quality of their employees.

Skills and certification tracking

Shift/vacation bidding

Workload planning, forecasting, and scheduling

Scheduling optimization

Customer wait-time forecasts

Coverage management

Absence management

Labor activity tracking

Rationalization of revenue per full-time equivalent

Cost of sales activities

Sales resource planning based on local and regional opportunities

Payroll Accounting

The functionality involves payroll accounting and other labor-related payments, including tracking of stock-option compensation and other variable and nonvariable payments.

Procurement

Procurement applications automate business processes relating to purchasing material (whether direct or indirect; raw, in process, or finished; as a result of or flowing into a product supply chain–specific business process; or in support of performing a service) and services (business or professional). With the advent of the Internet, the procurement function is being expanded to cover Web-based sourcing, procurement, transaction processing, and payment support, all of which are connected to create a single view of the spending levels at a company. As a result, purchasing activities are integrated into a supplier community that can be easily tracked, benchmarked, and analyzed by both buyers and suppliers.

Existing and upcoming features of these procurement modules include:

eProcurement

Self-service requisitioning

Order entry (PO email)

Approvals, workflow

Transaction processing, EDI, EDI-INT

Global agreements, time-phased pricing, mass update price

eSourcing

Strategic sourcing

Dynamic pricing

eRFX

Product design management

Commodity strategy, spot buying

Contract compliance

Contract library

Contract management, tracking, enforcement

Content management

Standardization, function equivalent

Consolidated buy/group purchasing organizations

Data synchronization and management

Item master cleansing

Category management for commodity buying

Catalog aggregation, syndication

Supplier performance management

Supplier enablement, portal

Vendor-managed inventory support

Supplier performance tracking

Supplier consolidation

Supplier satisfaction metrics

Machine-to-machine connection such as EDI exchanges

Electronic invoice presentment and payment/dispute resolution

Volume discount discovery

Invoice, PO, multiple document matching

Standard applications templates for exceptions handling

Procurement analytics

Integrated analytics

Order Management

Order management applications are designed to automate sales order processing from capture to invoice and settlement as well as built-in features to handle order planning and demand management capabilities. Item lookup and order placement are the prerequisites of order management applications, followed by issuance of receipts and advance shipping notices as well as payment processing functions. Increasingly, Web-based order management applications are replacing legacy systems for faster and more accurate order processing. Order and product configurations, as well as pricing options, freight calculation, and credit checking, are being combined to form an integrated order management application, regardless of the sales channels.

Other features include view price history, profit management, multiple order types (including quotes and credit orders), blanket and release orders, direct ship and transfer orders, kit processing, and product returns processing.

Financial Performance and Strategy Management Applications

The financial performance and strategy management applications market consists of cross-industry applications whose main purpose is to measure, analyze, and optimize financial performance management processes using prepackaged applications that include the following:

Budgeting and planning includes applications to support operational budgeting processes, corporate budget consolidation and adjustment processes, and planning and forecasting processes.

Financial consolidation includes applications that support both statutory and management financial consolidation, reporting, and adjustment processes across multiple entities and divisions.

Profitability management and activity-based costing applications include packaged applications to support detailed cost and profitability measurement and reporting processes.

Strategy management applications include those that support a closed-loop performance management strategy such as the balanced scorecard. Strategy management applications incorporate domain expertise across a range of business processes, such as finance, human resources, operations, and CRM, but enable strategic management processes rather than performance management reporting processes of these functions.

Project and portfolio management (PPM) applications are used for automating and optimizing the initiating, planning/scheduling, allocation, monitoring, and measuring of activities and resources required to complete projects. In addition, the portfolio management capabilities enable the tracking of an aggregation of project, products, programs, and/or initiatives to oversee resource allocation, for making ongoing investment and prioritization decisions, and to track risks — as part of an overall portfolio. Ultimately, PPM applications help organizations to manage the scope, time, and cost of discrete sets of related people processes (projects) on an individual and portfolio basis. IDC uses a wide definition of PPM to include the breadth of solutions that use PPM features at their core, such as construction/architectural/engineering management (AEC), asset/capital management (A/C), IT project portfolio management (ITPPM), new product development/introduction management (NPDI), professional service automation (PSA), and other industry-oriented solutions developed around the primary premise of successful "project" completion as the main business purpose.

Enterprise Asset Management

Enterprise asset management application software automates the many aspects of asset management and maintenance, repair, and overhaul (MRO) operations (e.g., machinery and equipment, buildings, or grounds). The software generally includes functionality for planning, organizing, and implementing maintenance activities, whether they are performed by employees of the enterprise or by a contractor. Typical features include equipment-history record management, descriptions of items maintained, scheduling, preventive and predictive maintenance on the assets, work order management, labor tracking (if integrated within the maintenance management applications), spare parts management, and maintenance reporting.

Supply Chain Management Applications

Supply chain management application software automates supply- and demand-side business processes that bring a product or service to market, including multisite organizations involved in a complex supply chain process, including raw materials suppliers, contract manufacturers, 3PL and 4PL providers, and individual transportation and warehousing organizations. Definitions of the relevant functional application markets are presented in the following sections.

Logistics

Logistics application software automates activities relating to moving inventory or materials of any type. Examples include software that automates distribution resource planning, warehouse management, and transportation planning business processes that are not specific to an industry. (Logistics applications specific to the transportation industry are included in the services operations management applications market.).

Production planning (PP) applications software automates activities related to the collaborative forecast and continuous optimization of manufacturing processes. PP applications span supply planning, demand planning, and production planning within organizations. These applications identify demand signals, aggregate historical data that informs short- and long-term demand expectations, and provide supplier capabilities across multiple manufacturing sites. Production planning application software is key to any supply chain management initiative because supply and demand planning dictates the rest of the supply chain activities.

Inventory Management

Inventory management application software automates activities relating to managing physical inventory, whether direct or indirect; raw, in process, or finished; as a result of or flowing into a product supply chain–specific business process; or in support of performing a service. This includes inventory control/materials management business processes in any industry, not just in manufacturing.

Operations and Manufacturing Applications

Operations and manufacturing applications are enterprise applications that automate and optimize processes related to planning and execution of services operations and manufacturing activities, as well as other back-office activities. The resources automated include people, capital, materials, and facilities. The applications track, route, analyze, and report on these resources. The market includes software that is specific to services, manufacturing, and other industries. Definitions of the relevant functional application segments are presented in the following sections.

Services Operations Management

Services operations management applications support the services supply chain and are unique to particular industries. These industry-specific applications cover a broad range of activities such as automating claim processes (as applied to insurance functions), automating admissions/discharges and transfers of patients (as applied to healthcare functions), or automating energy trading (as applied to energy and utility functions). Other examples of industry-specific applications are those that enable the automation of real estate, business, legal services, banking and finance, education, government, social services, and transportation.

Manufacturing

Functional applications in manufacturing include material and capacity requirements planning (MRP), bills of materials (BOMs), recipe management, manufacturing process planning and simulation, work order generation and reporting, shop floor control, quality control and tolerance analysis, and other functions specific to manufacturing execution (MES). The category does not include computer-aided manufacturing (CAM) applications for NC and CMM machine programming. (Advanced planning and scheduling applications are included in the supply chain planning functional market.)

Other back-office applications include various types of application automating functions not otherwise covered previously, such as computer-based training, elearning applications, speech and natural language, and environmental health and safety applications. These applications also cover a wide range of point solutions for product-related applications other than services operations management and manufacturing. These applications have at their core a product orientation focused on efficiencies related to item maintenance, replenishment, and site management. Among them are retail-specific and wholesale-specific applications.

Engineering Applications

Engineering applications automate all of the business processes and data management activities specific to ideas management, concept planning, and design and the handoff of a design to execution (manufacturing, construction, or other). The markets include mechanical computer-aided design (MCAD), CAM, computer-aided engineering (CAE), product information management (PIM), and other engineering applications, which include those for electronic design automation (EDA) and architecture/engineering/construction (AEC). Definitions of the engineering application segments are presented in the following sections.

Mechanical Computer-Aided Design

MCAD software is utilized for tasks typically performed by designers and drafters. Specifically, this category includes computer-assisted designing, drafting, and modeling (wire frame, surface, and solid). MCAD also includes conceptual design and/or industrial design, animation and visualization, and assembly design. (Light geometry visualization is included in PIM.)

Mechanical Computer-Aided Engineering

Mechanical CAE applications address tasks such as structural/stress analysis, kinematics, fluid dynamics, thermal analysis, and test data analysis.

Mechanical Computer-Aided Manufacturing

Mechanical CAM applications prepare data for actual production on the shop floor (e.g., NC tape generation and data for CNC machines).

Product Information Management

PIM applications provide engineering groups, but also increasingly cross-disciplinary teams across the enterprise as well as outside of its four walls, with software tools to electronically coordinate, manage, and share product data throughout the product life cycle. The major subsegments of this market are product data vaulting, document management, light geometry with view/markup capabilities, change management, and parts libraries. Ideas management and product-focused environmental compliance management are now emerging as additional application subsegments.

Note: The aggregation of MCAD, CAE, CAM, and PIM applications is termed the collaborative product development applications market by IDC.

Other engineering applications support electronic design automation, architectural/engineering/construction, and other engineering functions. AEC applications software automates drawing/design of building- and civil engineering– related projects. (AEC project and portfolio planning and facilities management are part of the project and portfolio management functional market.)

EDA application software includes applications for component and board/systems design. Functions include simulation, design creation, synthesis, layout, design verification, and analysis. (IDC does not provide detailed functional analysis of the EDA applications market.)

Customer Relationship Management Applications

CRM enterprise applications automate the customer-facing business processes within an organization irrespective of industry specificity (i.e., sales, marketing, customer support, and contact center). Collectively, these applications serve to manage the entire life cycle of a customer — including the conversion of a prospect to a customer — and help an organization build and maintain successful relationships. The CRM applications classified as collaborative provide functionality to enable two or more individuals to share content to achieve a common goal. Definitions of CRM application segments are presented in the following sections.

Sales

Sales automation applications include both sales management applications and sales force automation applications. Functionality includes the following:

Account/contact management

Lead tracking

List management

Mobile sales

Opportunity management

Partner relationship management (PRM)

Sales analysis and planning tools

Sales configuration tools

Sales history

Team selling

Telemarketing and telesales scripting

Territory management

Marketing applications software automates a wide range of individual and collaborative activities associated with the various dimensions of the marketing process. These dimensions include the following:

Ad management/placement

Brand management

Campaign execution

Campaign planning and management

Collateral management/distribution

Database marketing

Direct marketing

Electronic catalog

Event/trade show management

Focus groups/media testing

Fulfillment status linkage

Lead qualification/distribution

List management

Marketing resource management

Media and analyst relations

Personalization

Primary research

Reactivation

Surveying

Upsell and cross-sell programs

Web activity analysis

Web advertising

Customer service applications provide customer/client (e.g., patient and student) information management (CIM). Each application is designed to enhance the management of relationships with existing customers. Customer service software is used to support customers who are external to an organization.

Defining characteristics of the customer service category include problem tracking, customer history, and incoming contact management. Functionality includes:

Case assignment and management

Self-service

Web chat

Live collaboration

Conferencing

Cobrowsing

Automated assistants

Email response management

Field service

IT help desk applications are covered under "problem management" in the system management software category and are thus excluded from this market.

Contact Center

Contact center applications automate functions relating to the operations of the CRM installation. These applications, although enabling in function, do not have a desktop end-user focus. Products included in this category are ACD, predictive dialing, telephony integration, and universal queuing.

Finally, within the analytic applications market, CRM-specific analytic applications have evolved. These analytic applications are included in the marketing segment of CRM because most of the applications are specifically targeted at marketing automation processes.

Application Development and Deployment Market Definitions

Information and Data Management Software

Information and data management software includes products that manage a common set of defined data that is kept in one or more databases (structures of managed data shared by multiple application programs) and is driven by data definitions and rules, whether this involves single databases accessed directly by applications or distributed databases accessed by multiple applications in multiple locations. The distinguishing characteristic of all information and data management

©2008 IDC #213259 189 software products is that they use definitions of data structure and behavior along with rules governing their integrity, validity, security and, in some cases, alternative formats to manage the storage, movement, and manipulation of data kept in databases.

Relational Database Management Systems

The relational database management system (RDBMS) market includes multiuser DBMSs that are primarily organized according to the relational paradigm and that use SQL as the foundational language for data definition and access. Also included are RDBMSs that have been extended to support embedded tables or other nonrelational enhancements or to include extended attribute types (such as graphical, geospatial, and audio), object-oriented formalisms (such as data encapsulation), or direct support for XML data.

Nonrelational Database Management Systems

Nonrelational database management systems (NDBMS) are those are not based on the relational paradigm. They use a variety of other approaches to the organization, management, storage, and retrieval of data. Types of nonrelational DBMSs are as follows:

The pre- and postrelational DBMS market includes multiuser DBMSs that are accessed using explicit navigation of the structure by the problem program and are typically organized using either the CODASYL or a proprietary structure. List- oriented, hierarchical, b-tree indexed, network, and inverted list are examples of organizations included in this category.

Object-oriented DBMSs are designed to provide data storage and support services using an object-oriented architecture. Object DBMSs support the basic features of object-oriented development, including inheritance, polymorphism, encapsulation, and state.

The XML database management systems market includes native XML database management systems, which decompose XML documents into data structures based on their tag structures and store them in an internal data storage facility that has been optimized for XML tag-based retrieval. Such facilities typically include the capability to convert XML documents into XML documents of other types, driven by XSL or other mapping specifications. This market also includes XML data search and retrieval facilities that are driven by XML schemas. It does not include XML-based end-user query tools, access integration middleware, or analytic applications that may happen to use XML- based access protocols. This market does not include software that simply serves as a relay or remote connection facility between programs and XML files. It also does not include software that has as its sole or principal purpose the ability to provide online XML content services for end users.

190 #213259 ©2008 IDC End-user DBMSs are single-user, database-centric solutions that reside on desktop operating environments for use by knowledge workers. These tools typically include a DBMS engine tightly integrated with a scripting language and report writer, which provides a localized environment for data management and analysis.

Database Development and Management Tools

Database development and management tools are used to develop, load, reload, reorganize, recover, or otherwise manage and optimize databases, and to maintain replica databases for either recovery, performance, or availability purposes. This category also includes database-specific accelerators, SQL optimization tools, and other database utilities. Types of database development and management tools include:

Database tuning and monitoring tools. Software used by DBAs to monitor the performance of databases, detect problems in database operations, perform routine change operations to the database, and improve database operation by reallocating storage, reindexing the database, and so on. (Note that when database monitoring software is incorporated in general system monitoring products, its revenue is reported under performance management software.)

SQL authoring tools. Software used by DBAs and developers to build efficient SQL calls to access and manipulate data from within programs and reports

SQL optimization and analysis tools. Software used by DBAs and developers to correct defects in SQL and to improve SQL performance

Database replication software. Software used for maintaining an exact copy of a live database, typically for recoverability, high-availability, or nonstop maintenance purposes

Database archiving software. Software used to build and maintain archives of databases, often allowing transparent access to archived data, preserving original schema information about archived data and intelligence for selecting referentially complete subsets of data for archiving (Such products also can be used to create referentially complete subsets of databases for populating subset or test databases as well.)

Data Integration and Access Software

Data integration and access software brings together data sets for use by other software or for presentation to end users and also enables access of applications to databases without requiring a direct API connection. The purpose of data integration is to ensure the consistency of information where there is a logical overlap of the information contents of two or more discrete systems. To achieve a total solution, data integration software employs a wide range of technologies, including, but not limited to, data profiling; data quality; extract, transform, and load (ETL); semantic mediation; and associated metadata management. Data access is enabled by data connectivity software (which includes data connectors and connectivity drivers, and also federated data access software).

©2008 IDC #213259 191 Data integration software may be used in a wide variety of functions. The most common is data warehousing, but other uses include enterprise information integration, data replication, data movement, and data synchronization, to name a few. Data integration may be deployed and executed as batch processes, typical for data warehouses, or in near-real-time modes for data synchronization or dedicated operational data stores. More challenging applications are integrating data from disparate, distributed data sources, including flat files, relational databases, XML files, and legacy applications, and the proprietary data sources associated with packaged applications from vendors such as SAP and Oracle.

The data integration and access software market includes the following submarkets:

Data movement software comprises two subgroups: ETL and database synchronization (or real-time data movement) software. ETL software selectively draws data from source databases, transforms it into a common format, merges it according to rules governing possible collisions, and loads it into a target. This software normally runs in batch but may also be invoked dynamically in what vendors refer to as "real time" functionality. Such software actively moves data among correspondent databases driven by metadata that defines interrelationships among the data managed by those databases. The software performs transformations, routes the data to the target, and inserts the data. It normally either features a runtime environment or operates by generating the program code that does the extracting, transforming, routing of the data, and updating of the target.

Data quality, profiling, and cleansing software includes products used to identify errors or inconsistencies in data, to normalize data formats, to infer update rules from changes in data, to match data entries with known values, and for other activities involved in ensuring the validity and consistency of data on the one hand, or schematic details of data not incorporated in the database catalog on the other. Such activities are normally associated with data integration tasks such as data merges and federated joins, but may also be used to monitor the quality of data in the database.

Data connectivity software is used to establish connections between users or applications and databases without requiring an API or hard-coded database interface. It includes ODBC and JDBC drivers and database adapters.

Federated database software permits the access of multiple databases as if they were one database. Most are read only, but some provide update capabilities. Virtual database products are similar, but offer full schema management coordinated with the source database schemas to create a complete database environment that sits atop multiple physical databases.

Data integration suites blend functionality from several of the submarkets listed above and are offered as singly priced products or product suites. They generally include data quality, data movement, transformation (a subset of ETL), and some federated data access capability, along with design and management tools.

192 #213259 ©2008 IDC Metadata definition and management software products are specifically designed to model, capture, and maintain IT metadata that is associated with application development or deployment. Standalone products in this category have, as their main feature, the definition or management of metadata, which may include graphical modeling capabilities, categorization and ontological relationship mapping, search, metadata extraction from database catalogs or other such sources, and code generation capability.

Application Development Software

The application development software markets include software, tools, and development environments used by developers, business analysts, and other professionals to create both Web-based and traditional applications. Third-generation languages (3GLs), unified development environments, business rules engines, model-driven development software, and Web site design and development tools are included. Application development software also encompasses markets pertaining to component-based development and includes the specific markets discussed in the following sections.

Unified Development Environments

The unified development environment (UDE) market represents the convergence and integration of interactive development environments with visual interfaces as well as rapid application development tools and environments, higher-level languages (including 4GLs), and component-based development (CBD). It also includes the tools that help automate various aspects of developing applications from components and within component framework environments.

The unified development environment market does not include tools whose primary function is to support formalized modeling and business rules methodologies that assist in generating application requirements, data definitions, and programming specifications.

Unified development environments are those environments and/or tools that explicitly use, integrate, or combine the abstract benefits of technologies and features from 4GL, RAD, CBD, and visual interfaces as part of the development environment. This functional market includes:

4GL/RAD tools. 4GL/RAD tools are nonprocedural, higher-level language-based tools used by professional programmers to build applications. To be considered a 4GL, a tool must provide a higher level of abstraction than a 3GL, afford dictionary-based application development, and perform semantic consistency checking.

Legacy 4GL tools. Legacy 4GLs are defined as early abstracted development environments that were marketed before the advent of visual programming interfaces. Despite the antiquated nature of these environments, many remain in use primarily to address mission-critical business functions.

©2008 IDC #213259 193 Component-based development tools, including component construction and assembly tools. Component-based development, construction, and assembly tools are primarily used for the construction of software components and/or the assembly of software components into larger components, services, or applications.

Component frameworks. Some companies package components in the form of an open architecture component technology, often referred to as frameworks.

Composite development and assembly platforms. Composite development and assembly platforms include technologies that facilitate the construction of composite services or composite applications that are highly standards compliant. These technologies are characterized by a contextual configuration- based approach to development. Some of the tools designed to address mashup configurations are included in this category.

Third-Generation Language Tools

The 3GL tools market includes both emerging and traditional programming languages, such as Java, C++, COBOL, and FORTRAN. 3GL products include all third-generation (object oriented and nonobject) procedural language tools, such as edit, compile, and debug tools, that are used in the context of an integrated 3GL development environment. C++, Java, and COBOL continue to be the primary 3GL languages that developers use to produce business technology solutions.

Software Construction Components

Software construction components are functionally specific software subassemblies and libraries sold apart from a programming development environment that may or may not be designed for use with a specific programming development environment. Examples include class libraries, frameworks, ActiveX controls, Java applets, JavaBeans, Enterprise JavaBeans (EJBs), DLLs, and other forms of API-specific libraries. Software components that fall into this category are intended to be used by developers to assemble applications as opposed to fully functional applications that are intended to run on their own.

Business Rules Management Systems

Business rules management systems (BRMSs) are defined as discrete systems that define, manage, and execute conditional logic in concert with other IT processes and actions. BRMSs are well known for their ability to automatically recognize the interrule relationships that evolve as rules are added or changed, thereby eliminating the need for the careful and complex rule sequencing and conflict resolution that would otherwise be necessary.

Model-Driven Development Software

Model-driven development (MDD) software is an abstract software development process that supports the understanding and definition of objects and relationships rendered as a specification. MDD is centered around five design principles: abstraction, model centricity, implementation independence, round-trip engineering, and the automation of selected IT application and system artifacts. Model-driven

194 #213259 ©2008 IDC development software encompasses four categories of modeling tools: data modeling, process modeling (typically UML based), business process modeling (often BPMN based), and simulation.

Web Site Design/Development Tools

Web site design and development tools provide Web site and Web page layout and design, object integration for site and page development, and the tools needed to create Web-based applications. Although HTML editing is often provided, tools in this category typically offer visual abstraction away from HTML through WYSIWYG page editors, animation and other rich media, JavaScript and/or VBScript features, Asynchronous JavaScript and XML (AJAX), simple data integration, and deployment scenarios.

Quality and Life-Cycle Tools

Quality and life-cycle tools support the process of software development and deployment. This category includes the specific markets discussed in the following sections.

Automated Software Quality Tools

Automated software quality (ASQ) tools support software unit testing, system testing, or both; they also support software quality assurance. Functions such as test specification, generation, execution, results analysis, and "bug tracking," as well as test and QA management, are included in this category.

Software Configuration Management Tools

Software configuration management (SCM) tools are used by application development organizations to provide software revision control and versioning capabilities. More sophisticated functions such as process management, change request tracking, requirements management, and distributed team development support may also be included.

Application Server Middleware

Application server middleware is the foundation of modern applications, whether custom developed or packaged. It is also the foundation for many types of software infrastructure, such as portals, content management systems, or enterprise service buses (ESBs).

This middleware executes application logic, mediates access to data sources, and provides quality of service (QoS) to offer scalability, performance, reliability, and security to applications. Applications built on modern application server middleware are used over TCP/IP networks and are built using standard frameworks, such as Java Enterprise Edition (JEE), .NET, and Spring. Older legacy application server middleware is deployed on mainframes.

This class of middleware also offers ancillary capabilities associated with tooling for Web application configuration as well as synchronizing content for Web applications.

Application server software platforms (ASSPs) are middleware that host application logic and provide common services that allow the application to operate effectively. Application servers provide a common programming model, such as JEE, .NET, Spring, CICS, or CORBA, that developers use to build their application.

By using an application server, developers gain access to extensions that include connectivity between the presentation layer, network, operating system, and database as well as with other application servers as part of a distributed system. In addition, the application server offers QoS for such things as transaction processing reliability, throughput, scalability, security, and management.

ASSPs are the foundation of modern applications, whether custom developed or packaged. They are also the foundation for many types of software infrastructure, such as a portal, content management system, or certain brands of ESB.

ASSP revenue is not counted in the revenue model when it is embedded in other software. For example, when a portal is built on an application server but sold as a portal, the application server software portion is not counted in this market. However, when an ERP is purchased separately from the application server required to make it run, the ASSP revenue is counted.

Where ASSP is part of a multipurpose product, such as Microsoft Windows Server 2003, and we can determine what portion of the software is used as an ASSP, we will include that portion in ASSP revenue.

Note on virtual application server appliances: ASSPs have included the type of virtualization associated with clustering for several years, where several application servers are managed as if they were one. In addition, the opposite type of virtualization is also emerging, where one server can run multiple instances of an application server. This is similar to the virtual server paradigm popularized by VMware. A variety of Linux-Apache-MySQL-PHP (LAMP) stack software appliances run on top of VMware's hypervisor. In addition, BEA offers its WebLogic Virtual Edition and Liquid VM as a virtual application server appliance.

Transaction Processing Monitors

Transaction processing monitors (TPMs) mediate and optimize transaction processing between clients and a mainframe database. TPMs have evolved to the point where they currently can act as application servers for legacy mainframe and client-server applications.

Other Application Server Middleware

Other application server middleware includes application server middleware categories not yet large enough to be considered a standalone market.

Extreme transaction processing (XTP) is an emerging software category that improves the performance of clusters of application servers through the use of virtualization, in-memory caching, transaction shaping, service-level monitoring, and provisioning.

The integration and process automation middleware markets include tools used by developers, business analysts, and administrators to automate processes, create and deploy process-centric applications, integrate applications, exchange data between enterprises, and monitor the business and process performance of these applications and automated processes.

This middleware is deployed on premise as software implemented on servers, in appliances, and as hosted offerings fitting into the software-as-a-service (SaaS) model.

In the IDC taxonomy, there are four specific types of integration and process automation middleware, along with an "other" category that includes legacy software and integration-related middleware not yet large enough to be categorized in a standalone market:

Business-to-business (B2B) middleware

Enterprise service bus and connectivity middleware

Event-driven middleware

Process automation middleware

Other integration and process automation middleware

Business-to-Business Middleware

B2B middleware consists of software and services used to receive, route, and convert standards-based structured inter-enterprise files and messages related to transactions. In more detail:

B2B gateway middleware is software deployed on premise used to automate and monitor the inter-enterprise exchange of data. At the heart of these platforms are conversion, translation, and data exchange–related orchestration capabilities. Additional features include:

More generalized process automation

Receipt and delivery of messages

Connectivity software

Business activity monitoring

Reporting

Development environment

There are strong similarities between B2B gateway platforms and other types of integration middleware. However, the strength of these platforms is in the embedded support of common standard industry models for electronic message

©2008 IDC #213259 197 exchange, such as electronic data interchange (EDI). In addition, they are optimized to operate at the edge between two or more enterprises, including the ability to send acknowledgements to senders once a message is received.

EDI/VANs and B2B services are secure, private networks that receive, store, and forward structured inter-enterprise messages related to transactions. These services include customizable hosted solutions and SaaS offerings. Many of the vendors in this category also offer end-to-end managed services.

Although EDI/VANs predominantly support industries and message standards associated with the supply chain and EDI standards, B2B services include value chains in general, in particular the financial value chain using SWIFT standards.

Beyond reliable, secure delivery of messages, features include protocol conversion, message and file translation, monitoring, exception reporting, paper- to-digital conversion, and partner self-service, including Web forms for submitting transactions and documents and self-testing capabilities.

Enterprise Service Bus and Connectivity Middleware

Enterprise service bus (ESB) and connectivity middleware are server software or appliances installed on premise inside a datacenter to integrate applications:

Enterprise service bus middleware was created to support application integration for applications built on a standards-based service-oriented architecture (SOA). It operates in request-response and event-driven paradigms. Under the more common request-response model, ESBs receive service consumption requests, route the requests to the correct service provider, transform the requests to a format compatible with the service provider, wait for the results, and deliver them back to the service consumer.

In an event-driven model, ESBs receive an event, transform it, and forward it based on routing instructions managed within the ESB.

There are many types of ESBs in the market, with orientations based on the preexisting middleware that was used as the basis for the ESB. In addition, there are some ESBs that were built from the ground up to provide services-oriented routing and transformation capabilities.

Connectivity middleware is installed on end systems to send and receive data and instructions directly from other systems and via middleware. Depending on how they are deployed, connectivity middleware — adapters and sensors — can perform transformations prior to delivering the data back to the targeted system or can transfer as is.

There are different deployment paradigms for the adapters. They can fetch or deliver data on request. They can be set up to look for new data on a scheduled basis. They also can support an event model in which a data change is automatically captured by an adapter, which generates a message that is published to message-oriented middleware (MOM).

198 #213259 ©2008 IDC Most deployment platform vendors have their own collection of standard or common adapters. They tend to be bundled into the price of platform software and, therefore, are not counted in this category. This category includes the standalone purchase of connectivity middleware.

Event-Driven Middleware

Event-driven middleware is used to detect events and automatically pass them to applications, systems, and people. An event is a data or application change of state. The technologies that make up event-driven middleware are key components of an event-driven infrastructure, which is implemented to:

Predict and detect problems or opportunities at the earliest possible moment they are identifiable

Support automated processes to reduce cycle times and remove waste, errors, and redundancy from an enterprise's operations

Improve the scalability and processing speeds of applications and application infrastructure.

Event-driven middleware consists of the following three types of software: message- oriented middleware (MOM), complex event processing (CEP) software, and business activity monitoring (BAM).

In essence, MOM can be considered the nervous system that listens for stimuli and informs the brain. CEP is the brain, which contains the short-term memory and executive decision-making ability to send instructions through the nervous system to the appropriate parts of the body. BAM is the eyes of an event-driven infrastructure. In more detail:

Business activity monitoring informs users about the current status of areas in which they are interested and notifies them when thresholds are crossed that warrant attention. BAM typically is deployed as a continuously updated dashboard of key performance indicators (KPIs) that describe the metrics that are important to an individual user. There are a variety of graphical displays in which the KPIs are embedded, including standard graphs, heat maps, and process model views. There are also graphical indicators of current performance.

While BAM dashboards are typically presented in a portal, notification of out-of- bounds performance is sent out via email. In some cases, vendors are taking KPIs and their associated graphical representations and making them available as gadgets that can be displayed in a mashup.

BAM is implemented in many scenarios. In this case, we count BAM products sold as a standalone offering, which excludes the embedded BAM sold as part of a BPM suite.

©2008 IDC #213259 199 Complex event processing middleware manages descriptions of conditions and their state, correlates new events to the conditions, and tests for matches. Once matched, a new event is created and fired off to other systems listening for the event. CEP is used primarily as infrastructure for temporal (time) and spatial (location) applications.

A condition describes the relationship of two or more events to each other. These can be simple, such as calculating the impact of a change in stock price over a set time window to see whether it meets a certain threshold, or complicated, such as calculating the impact of a flight delay on all of the systems affected by that delay.

CEP products are based on different technologies, with the three most common being:

Continuous query software that automatically runs SQL or SQL-like queries upon the receipt of new data

Rules engines that apply new data to all the rules and rule relationships

Software that allows users to model the condition

When a relevant event occurs, message-oriented middleware creates a structured message containing the data of the event, the time the event was created, and metadata about the event. MOM delivers the message in the following paradigms:

Point to point, where one sending system publishes a message directly to a receiving system for processing

To a queue, where the message can be picked up for processing by any authorized system

Publish and subscribe, which broadcasts messages without concern for whether the event is actually received by any system

In the latter two paradigms, each message includes metadata that describes the topic or subject of the message. Subscribers listening for that topic receive all messages that are broadcast out. When a system picks messages off of a queue, it also looks for specific message types, based on the metadata.

MOM is also capable of transforming a message to a structure that is compatible with the receiving system. Whether transformation is handled within MOM or by other integration middleware, such as an ESB, is an architectural decision made by the enterprise during system design.

Although many vendors offer commodity MOM based on the Java Message Service (JMS) standard, the standalone offerings differentiate and compete on low latency, reliability, and high throughput.

A process is the series of activities that accomplish work in a routine way. Process automation middleware is used to define a process, model it, and automate the movement of transactions through all of the necessary activities that make up the process. Process automation middleware also manages the state of work being performed within the process and identifies transactions that are not able to advance through the process' workflow. These exceptions are then handled separately, either through another structured process or through custom or nonautomated activities.

This middleware supports straight-through processing (STP), which is a method to move transactions automatically from one system to the next without manual involvement, rekeying, or input from people. STP examples include automated payment processing or trade settlements.

Process automation middleware also automates people-oriented activities that require manual steps or human decision making, such as loan approvals or bringing new employees on board. In more detail:

A business process management suite (BPMS) includes both a model-centric development environment and a runtime server that include the following capabilities:

Process modeling is a graphical environment to describe and document an existing process or a new process. Although not all BPMSs support standard process modeling, the emerging graphical standard to represent the process is the Business Process Modeling Notation (BPMN).

In a BPMS, process modeling is central to the development environment. Increasingly, the individual activities described in the process model have presentation components, such as forms, and other properties associated to them, and one activity is wired to another within the process modeling environment.

Rules or decision services are used when there is a need to determine where the transaction needs to go next for processing.

Process execution is runtime server software that executes the process described in the model and maintains the state of the transaction as it advances through the process' workflow. There are differences in how BPMS products move from a model to the execution of a process as well as differences in standards supported. Some interpret; others compile. Some store a model in XML Process Definition Language (XPDL), while others store as Business Process Execution Language (BPEL). Others do neither.

Process monitoring maintains and displays performance statistics about how the process is running. The KPIs are automatically generated within the system.

©2008 IDC #213259 201 Simulation uses production data, test data, or metrics embedded in the model to run simulations to see how a process or change in process impacts process, business, and system performance. Initially, the simulation may run from assumptions built in the documentation of the model. Once a process is put into production, there is the ability to test changes using production data. Many vendors require the use of simulation to test a change made to a process before it is put into production, particularly where authorized business users make changes to the process.

Additional BPMS capabilities include:

Task management features that either automatically or manually assign work

Forms, including wizards and offline and online capabilities

Search, including the ability to find anything about work within a process as well as identify experts

Content management capabilities, including storage and retrieval of documents

Portal and collaboration features

Standalone process servers have a development environment that describes an orchestration or workflow as well as a process execution environment. However, they do not have the full set of features offered by a BPMS vendor.

Specialty straight-through-processing middleware includes many of the components of a system-centric BPMS with embedded logic tied to specific processes. It tends to be an event-driven, high-performance system created for niche areas, such as financial payment systems.

Other Integration and Process Automation Middleware

This category contains includes software products and markets not yet large enough to be covered in a standalone category. In addition, it includes some integration categories that cross multiple markets. In more detail:

Managed file transfer software provides secure, guaranteed high-speed delivery of a file over a network. The file transfer can be from one enterprise to another or within an enterprise, across datacenters or systems. This software includes the free software that delivers files over file transfer protocol (FTP) and commercial software that offers better security, reliability, and speeds.

Other Development Tools

Other Programmer Development Tools and Utilities

The other programmer development tools and utilities market includes standalone edit, compile, and debug utilities; libraries; repositories; software reengineering and transformation tools; standalone GUI builders; report writers used mainly by

202 #213259 ©2008 IDC developers; AI and expert system builders; software development kits; code browsers; graphics toolkits and data/file conversion aids; and program memory and disk management. Additionally, this category includes remote procedure call (RPC) middleware, which is built for an application-to-application interoperability model. Applications make requests by shipping a direct call for the execution. (IDC does not provide detailed functional analysis of this market.)

IDC does not analyze the other programmer development tools and utilities collection of miscellaneous products as a separate market but does include the revenue from this "market" in the overall revenue total for completeness of application development and deployment market coverage.

Data Access, Analysis, and Delivery Software

Data access, analysis, and delivery products are end user–oriented tools for ad hoc data access, analysis, and reporting as well as production reporting. Products in this category are most commonly used by information consumers or power users rather than by professional programmers. Examples include query, reporting, multidimensional analysis, and data mining and statistics tools. The data access, analysis, and delivery markets are defined in the following sections.

End-User Query, Reporting, and Analysis

Query, reporting, and analysis software includes ad hoc query and multidimensional analysis tools as well as dashboards and production reporting tools. Query and reporting tools are designed specifically to support ad hoc data access and report building by either IT or business users. This category does not include other application development tools that may be used for building reports but are not specifically designed for that purpose. Multidimensional analysis tools include both online analytical processing (OLAP) servers and client-side analysis tools that provide a data management environment used for modeling business problems and analyzing business data. Packaged data marts, which are preconfigured software combining data transformation, management, and access in a single package, usually with business models, are also included in this functional market.

Advanced Analytics Software

Advanced analytics software includes data mining and statistical software (previously called technical data analysis). It uses technologies such as neural networks, rule induction, and clustering, among others, to discover relationships in data and make predictions that are hidden, not apparent, or too complex to be extracted using query, reporting, and multidimensional analysis software. This market also includes technical, econometric, and other mathematics-specific software that provide libraries of statistical algorithms and tests for analyzing data. Although statistics products vary in sophistication, most provide base-level functions such as frequencies, cross- tabulation, and chi square. This market also includes a specialized form of statistical software focused on functional areas such as the industrial design of experiments, clinical trial testing, exploratory data analysis, and high-volume and real-time statistical analysis.

Spatial information management software (also called geographic information system [GIS]) includes tools for data entry/conversion (surveying/COGO, aerial photo rectification, remote sensing, GPS, and others), mapping/spatial query, and business analysis.

System Infrastructure Software Market Definitions

System infrastructure software is divided into four primary categories: system and network management software, security, storage software, and system software. These categories are discussed in the following sections.

System and Network Management Software

System and network management software is used to manage all the computing resources for the end user, small business, workgroup, or enterprise, including systems, applications, and the network infrastructure. This market does not include storage management and other storage software. System and network management software is further segmented into the categories discussed in the following sections.

Event Automation Tools

Event automation tools automate the response of the systems to nonscheduled system and application events. Included are console automation products, global event management applications, and event-action engines. This category does not include automation of scheduled events.

Job Scheduling Tools

Job scheduling tools manage the flow of work on systems. This category includes batch job schedulers and workload balancing applications working at the application (rather than system) level. It does not include workload balancing applications that work at the system level (e.g., high-availability software).

Output Management Tools

Output management tools automate the production, distribution, and management of computer-generated information. Included are printer spoolers, fax servers, output management tools, and applications to manage the dissemination of output. The term output includes not only hardcopy devices such as printers and fax machines but also other destinations such as pagers, email, and Web pages. This category does not include workflow applications or packaged online viewing applications for specific vertical industries.

Performance Management Software

Performance management software is used for capacity planning, performance data collection, performance tracking, and simulation software, as well as service level- management software when applied to systems and applications. It also includes resource accounting software for resource utilization tracking and reporting and IS- specific financial management and planning.

Change and configuration management software provides management of system and peripheral hardware and software assets but not network devices. Software for planning, tracking, and applying system hardware and software changes is also included, as is software distribution, hardware and software discovery and inventory, license management, settings and state management and auditing.

Problem Management Software

Problem management software tracks, records, and manages problems related to the IT infrastructure and operations. This category includes IT help desk applications and related problem determination and resolution applications. To the extent that IT Infrastructure Library (ITIL) and IT service management–based solutions help in the resolutions of problems, those functions are included here as well.

Network Management Software

Network management software includes solutions for managing the network components of enterprise infrastructures. It includes the two submarkets of network availability and network configuration. Further granularity on the enterprise network management market is available in the IDC Network and Service Management CIS. Continuing coverage of network service provider infrastructure management solutions, including OSS/BSS, is available in the IDC Next-Generation OSS and Billing CIS.

The products within network management often and increasingly will integrate with cross-domain infrastructure management tools such as service desks, application management, systems management, and business dashboards across multiple platforms and topologies, including data, voice, video, traditional networks, and wireless networks. Network management includes solutions that manage network availability by collecting and correlating events, service levels, alarms, response times, and performance. It also includes network configuration management products that manage, control, and audit changes to the network infrastructure. However, solutions solely for network service providers are excluded.

Security

The security market includes a wide range of technologies used to improve the security of computers, information systems, Internet communications, networks, and transactions. It is used for confidentiality, integrity, privacy, and assurance. Through the use of security applications, organizations can provide security management, access control, authentication, virus protection, encryption, intrusion detection and prevention, vulnerability assessment, and perimeter defense. All these tools are designed to improve the security of an organization's networking infrastructure and help advance value-added services and capabilities.

Identity and Access Management

Identity and access management is a comprehensive set of solutions used to identify users in a system (employees, customers, contractors, and so on) and control their access to resources within that system by associating user rights and restrictions with the established identity. Subcategories of the IAM market include Web single sign-on

©2008 IDC #213259 205 (WSSO) and federated single sign-on (FSSO); host/enterprise SSO; user provisioning, including granular authorization and policy rights; risk and entitlement management; advanced authentication software (e.g., PKI); and legacy authorization, such as RACF and ACF-2. Software licensing and authentication tokens (SLATs) are now classified as a separate subcategory within IAM. These are parallel/serial port tokens or USB keys that authorize the use of software on a particular device.

Secure Content and Threat Management

The secure content and threat management (SCTM) market highlights the increasing unity between previously dissimilar security disciplines. SCTM products defend against viruses, spyware, spam, hackers, intrusions, and the unauthorized use or disclosure of confidential information. SCTM includes four specific product areas, as follows:

Network security includes enterprise firewall/VPN products, network intrusion detection and prevention products, network antivirus products, unified threat management products, IPSec/SSL VPN products, and network access control products.

Endpoint security includes client antivirus products, file/storage server antivirus, client antispyware products, personal firewall products, host intrusion prevention products, file/disk encryption, and endpoint information protection and control products (IPC).

Messaging security includes antispam products, mail server antivirus, content filtering, and messaging information protection and control products.

Web security includes Web filtering products, Web intrusion prevention products, Web antivirus products, and Web antispyware products.

Security and Vulnerability Management Software

Security and vulnerability management is a comprehensive set of solutions that focus on allowing organizations to determine, interpret, and improve their risk posture. Products in this market include those that create, monitor, and enforce security policy; determine the configuration, structure, and attributes for a given device; perform assessments and vulnerability scanning; provide vulnerability remediation and patch management; aggregate and correlate security logs; and provide management of various security technologies from a single point of control.

Other Security Software

Other security software covers emerging security functions that do not fit well into an existing category. It also includes some of the underlying security functions, such as encryption tools and algorithms, that are the basis for many security functions found in other software and hardware products. Also included in this category are products that fit a specific need but have yet to become established in the marketplace. Products currently in this category will either grow into their own categories or eventually be incorporated into the other market segments.

206 #213259 ©2008 IDC For 2008, areas covered by other security software include, but are not restricted to, encryption toolkits, file encryption products, database security, storage security, standalone VPN and VPN clients, wireless security, Web services security, and secure operating systems. Note that the products covered here (especially for wireless and Web services) are only those that do not qualify for one of the more established categories.

Storage Software

Storage software manages and assures the accessibility, availability, and performance of information stored on physical storage media. This category does not include operating systems or subsystems. The storage software secondary market is broken down into eight functional software markets, as described in the following sections.

Data Protection and Recovery Software

Data protection and recovery software is focused on protection, restoration, and recovery of data in the event of physical or logical errors. Included within the data protection and recovery market are data protection, continuous data protection (CDP), bare metal restore, virtual tape library (VTL), and backup/recovery reporting products:

Data protection software and add-on modules schedule a point-in-time copy of a defined data set to tape, disk, or optical devices and are used to recover part or all of the data set if needed because of logical or physical error or site disaster. Included are library and tape media management tools. Although tape is the most common backup medium, many products support backup to disk, and some take full advantage of the increased recovery performance associated with direct- access disk storage. Backup is often used in conjunction with snapshot and data replication software to improve data protection performance. If using traditional tape backup products, recovering data from a backup set generally requires the initiation of a separate process.

Continuous data protection (CDP) software, also referred to as continuous backup, pertains to products that track and save data to disk so that information can be recovered from any point in time, even minutes ago. CDP uses technology to continuously capture updates to data in real time or near real time, offering data recovery in a matter of seconds. CDP systems may be block, file, or application based and can provide fine granularities of restorable objects to highly variable recovery points.

Bare metal restore software makes a system-level host image from the operating system up to the file system configuration on tape or disk, which is used for system-level recovery of the entire host if needed because of a physical hardware error. Backup products that have a bare metal restore module will be included under the data protection software submarket.

Virtual tape library software presents a virtualized view of physical tape drives and media to a host, thus emulating traditional tape devices and tape formats and acting like a tape library with the performance of modern disk drives. During

©2008 IDC #213259 207 a VTL process, data is deposited onto disk drives just as it would be deposited onto a tape library, only faster. A virtual tape library generally consists of a virtual tape appliance or server and VTL software that emulates traditional tape devices and formats.

Backup and recovery reporting software is designed for heterogeneous, standalone backup reporting and management across different backup applications, configurations, and locations. Reports are generated on backup environment parameters such as backup job status, tape media capacity, backup performance, and so on.

Storage Replication Software

Storage replication software includes software designed to create image copies of volumes or files via techniques such as clones, mirrors, and snapshots. Replication may be storage system, server, fabric, or appliance based and may occur locally or between remote sites, potentially separated by long distances. Replication and snapshot software is often used in conjunction with backup software to improve data protection performance. This market does not include database replication software that operates at the database, table, or record level. In more detail:

Host replication software typically resides at the file system or logical volume level within the operating system and makes a point-in-time copy or snapshot of a data set to disk used for disaster recovery, testing, application development, or reporting. In recovery, replication eliminates the intermediary step of a restore process.

System and data migration software is block-based or file-based migration software used to migrate data from one platform to another for system upgrades and technology refreshes, moving the data to a new platform.

Fabric and appliance-based replication software makes use of intelligent switches and heterogeneous array products to provide block-level replication within the SAN. The intelligent switches have technologies that perform the volume management and replication process and eliminate the overhead on the host while providing any-to-any replication. It also includes a software component to appliance-based replication.

Array-based replication software makes a block-based point-in-time block copy or snapshot of storage to disk used for disaster recovery, testing, application development, reporting, and other uses.

Replication management software is used to control, monitor, and/or schedule the point-in-time copies made by the replication product. It may automate various replication tasks, such as sync, split, mount, and so on.

Archiving Software

The archiving software market includes software that provides policy-based controls for copying, moving, purging (delete from primary storage), retaining (in read-only fashion for a defined period), and deleting (delete from secondary storage) data. Some tools provide for more sophisticated functions such as content-based data

208 #213259 ©2008 IDC management, indexing, and search/retrieval. Email and unstructured file archiving products are included in this market. Not included are products that perform database archiving. In more detail:

File archiving software automates, based upon a defined policy, the migration of data to a different tier of storage and media and automatically recalls files back to primary storage when required for application or user access. File archiving software creates, based upon a defined policy, a copy of a data set or a group of files that are transported to an alternate location or committed to long- or intermediate-term storage. Original copies of the data set may be deleted when the archive is created to free primary storage space, or they may be left in place if frequent access is expected.

Email archiving software includes specialized email archive software products that integrate with collaborative email systems through APIs to migrate email, based on policy, to a secondary archive. Included in email archiving software are functions for email retention and searching.

File System Software

File system software provides the organization and structure for storing and retrieving data as files, folders, and directories. Software covered in this market segment includes standalone, distributed file systems that are platform independent and the primary purpose of which is to provide access to storage. These file systems support sophisticated intersystem record and file locking capabilities. Products include clustered file systems, wide area file systems, and file virtualization.

Storage Management Software

SRM and heterogeneous SAN management software is designed for heterogeneous, end-to-end discovery, topology mapping, capacity, utilization, and performance reporting, planning, monitoring, and management. It includes software modules for advanced functions such as storage provisioning, host-level reporting, file-level analytics, application and file system integration, and event management. To qualify as a storage management product, the product must provide for the management of a diverse set of storage systems, storage switches, servers, and applications. Device management tools that provide discovery and configuration of a single device type or asset are not included.

SRM and SAN management software for homogeneous environments is designed for homogeneous, end-to-end discovery, topology mapping, capacity utilization, and performance reporting, planning, monitoring, and management. It includes software modules for advanced functions such as storage provisioning, host-level reporting, file-level analytics, application and file system integration, and event management.

Other storage management software applications provide standalone storage management functionality such as predictive change management, performance management, problem management, capacity planning, forecasting, or SLA management.

Storage infrastructure software includes virtualization and volume management and storage access and path management software:

Virtualization and volume management software enables device and network- independent management of storage or data. It isolates and abstracts the internal details of storage systems and services and simplifies storage management by masking physical complexities from servers, applications, and other network resources. Such software is frequently used for pooling or aggregating storage, or to add new capabilities to available storage resources. Virtualization and volume management may be storage system, server, fabric, or appliance based, and frequently can occur simultaneously in more than one of these locations. Only software sold as a separate software product or option is included in this market.

Access and path management software provides for storage path and access configuration, management, load balancing, and failover on path failure. Only software sold as a separate software product or option is included in the revenue for this market.

Storage Device Management Software

Storage device management software performs a specific set of functions for a specific, homogeneous brand or class of storage device. Device management software utilities capture basic information on the storage device and tend to support only that device or device family (not a heterogeneous management tool). The functions provided by device management software include storage device discovery, configuration, and management, with basic levels of reporting. It includes software used to control the configuration and management of disk devices, storage arrays, and networks as well as the associated utilities, element managers, and agents. This market also includes utilities for low-level disk device functions such as optimization, defragmentation, and compression.

Other Storage Software

Other storage software covers storage software functions that do not fit well into an existing category. Also included in this category are products that fit a specific need but have yet to become established in the marketplace. Products currently in this category will either grow into their own categories or eventually be incorporated into the other market segments.

System Software

System software is the foundation of software products that collectively operate the hardware on which business applications are built. Market definitions are discussed in the following sections.

Operating Systems and Subsystems

Operating system and subsystem software includes the machine-level instructions and general-purpose functions that control the operation and use of CPU resources (both centralized and networked). These operating systems quite often also include

210 #213259 ©2008 IDC network services such as Dynamic Host Configuration Protocol (DHCP) for IP address assignment, distributed naming services (DNS) software (which provides a shared database of system resources and access control information), and directory service software (such as Microsoft's Active Directory), as well as other integrated network facilities such as print and file services.

Availability and Clustering Software

Availability and clustering software virtualizes the system services of multiple systems so that they appear in some sense as a single computing resource. This market includes cluster managers and compute farm managers, as well as load balancing software and application virtualization software that stands between the user request and the processors or systems that are supporting applications or services. This software determines which processor or system has the most available capacity and routes the workload to that computing resource.

Virtual User Interface Software

Virtual user interface (VUI) software runs on servers and creates a virtual user interface within the operating system that can be delivered to a remote device via protocols such as RDP and ICA.

Virtual Machine Software

Virtual machine software either uses low-level capabilities offered by certain hardware environments or installs a complete hardware emulation layer using software to support multiple operating environments and the related stacks of applications, application development and deployment software, and system infrastructure software. Each of the client or server operating environments is allowed to believe that it controls the entire machine, but resources are actually allocated on the basis of rules established either at the time of configuration or dynamically by related management software. Thus, operating system software and applications that were previously incompatible can share the same machine.

Other System Software

Other system software is infrastructure software for systems and applications (but not storage) that is not otherwise categorized. Such software is used mainly by system programmers and administrators to perform housekeeping functions and to add functions to operating systems that are not otherwise supplied. Examples include file- conversion utilities, screen drivers and fonts, remote control software, and sort utilities. This category also includes enterprise connectivity software that enables devices to exchange, modify, and/or present host-based network data.

Geographic Area Definitions

Worldwide revenue is divided by geographic area. Areas defined are Americas, Europe/Middle East/Africa (EMEA), and Asia/Pacific (AP):

Americas includes the United States and all of its political subdivisions, Canada, and Latin America (Brazil, Venezuela, Argentina, Chile, Colombia, and Mexico).

©2008 IDC #213259 211 EMEA includes Austria, Belgium/Luxembourg, Denmark, France, Finland, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom, Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, Russia, Slovakia, Slovenia, Egypt, Israel, Saudi Arabia, Turkey, United Arab Emirates, and South Africa.

AP includes Australia, China (PRC), Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Vietnam, and Thailand.

Operating Environment Definitions

All software revenue is allocated on the basis of the underlying operating environment. The preferred method is to allocate revenue to operating environments based on where the license revenue is derived (for platform-specific licenses). An alternative method is to allocate revenue based on where the product is run (i.e., based on the percentage of executables on various platforms). Revenue may originate from traditional perpetual licensing purchases or through annual subscription or maintenance licensing. Note that operating systems producing no revenue may still be used for deployment of revenue- producing layered software that is subsequently captured in IDC's market forecasts. Operating system revenue from the emerging software appliance market is tracked as other operating systems are, with software appliance revenue allocated between the operating system and the layered software product markets (if applicable) on a proportional basis. Operating environments include the following:

Mainframe environments include IBM's z/OS, OS/390, VSE, VM, and z/VM that run on IBM System z and zSeries hardware and other single-vendor mainframe operating systems such as those from Unisys, Amdahl, Fujitsu, and Hitachi. Single-vendor, non-Unix supercomputer, and massively parallel processor environments are also included in the mainframe category.

i5 and OS/400 include i5, OS/400, and predecessors that operate aboard IBM 3X, AS/400, iSeries, and System i family of machines.

Unix includes all operating systems software that is based on Unix System V, OSF/1, or Berkeley Software Distribution (BSD). This category would include products such as AIX, HP-UX, Irix, Mac OS X, SCO Open Server, SCO UnixWare, Solaris, Tru64 Unix, NetBSD, OpenBSD, and other operating systems used primarily aboard RISC-based and Intel architecture–based servers, workstations, minicomputers, and clients that are designed to run the Unix operating system. Unix-based supercomputer and massively parallel processor environments are also included in this category. Operating systems that are based on other kernels are not included, even if they have passed the Unix certification test from the Open Group. Note that non-revenue-producing versions of Unix, including Solaris 10 for x86, OpenSolaris, FreeBSD, and other nonpaid Unix derivatives, are classified as Unix operating systems for the purpose of allocating revenue-producing layered software by underlying operating system.

Linux and other open source environments include all operating systems deployed aboard servers, workstations, minicomputers, and clients that are based on Linux or other Unix-like open source operating environments. Typically, this software is available both commercially with associated support and

212 #213259 ©2008 IDC maintenance costs and at little or no cost in source code form. Software of this type is usually licensed under the Free Software Foundation's general-purpose license (GPL) or other licensing that encourages free access to the source code to these operating environments. Note that non-revenue-producing versions of Linux are still classified as Linux operating systems for the purpose of allocating revenue-producing layered software by underlying operating system.

Other host/server environments include all other operating systems that are used as either host or server environments aboard server hardware systems. Some examples of operating systems in this category are HP OpenVMS and Novell NetWare, as well as residual revenue associated with discontinued operating systems, such as HP MPE/iX and IBM OS/2.

Windows 32 and 64 include all operating systems that support the Win32 APIs and Win64 APIs, including Microsoft's Windows 9x, Windows Me, Windows NT Workstation, all versions of Windows NT Server, Windows 2000 Professional, all versions of Windows 2000 Server, Windows XP Home, Windows XP Tablet PC Edition, Windows XP Media Center Edition, Windows XP Professional, Windows XP 64-Bit Edition, all versions of Windows Vista, and all editions of Windows Server 2003, including the release 2 (R2) versions.

Embedded operating environments and related subsystems include commercially available products that incorporate the machine-level instructions and general-purpose functions that control the operation and use of CPU resources in smart, embedded, and limited-function devices. Embedded operating environments may either offer some form of a user interface (graphical, text, voice, or other) or include the required services or APIs to allow developers to build their own interface if so required. These environments generally include defined and documented APIs that can be used by application software, which in turn is created by related application development tools. Embedded operating environment products may include both source code and executable/runtime code, or just executable/runtime code, and may offer either real-time or non-real- time operational characteristics. Real time is defined as the ability for the system to respond in a predetermined time to scheduled or interrupt-driven events. Non– real time is defined as the ability for the system to respond rapidly enough to respond in less than a second to network or user input. Embedded operating environments tracked by IDC might be specialized versions of general-purpose operating systems (such as Linux and Windows XP Embedded), but must be commercially available. Embedded operating environments tracked by IDC include Windows CE, Linux, Palm OS, EPOC, LynxOS, VxWorks, QNX, and Nucleus. Special-purpose embedded operating environments that are not commercially available but are integrated into a commercially available hardware product (e.g., Nintendo Game Boys, industrial control systems, certain automotive control systems, and so forth) are specifically excluded because the operating system is not available exclusive of the underlying hardware product.

Other single-user operating environments include all other operating systems that are used as client or standalone environments. Some examples of operating systems in this category are 16-bit Windows and DOS (including MS-DOS, PC- DOS, and DR-DOS), OS/2, and non-Unix versions of Mac OS (generally Mac OS 9.x and earlier).

©2008 IDC #213259 213 Hardware appliances consist of hardware with an integrated, hardened operating system; a limited applications set; and no user software installation. Appliances differ from pure embedded operating systems in that the operating system used in an appliance is typically a hardware-specific, special-purpose operating system that is not commercially available on a standalone basis from the appliance vendor. However, in some cases, an appliance may be constructed utilizing an embedded operating system that is commercially available from another vendor. Examples of such a configuration include a storage server built using Windows Storage Server 2003, a firewall appliance built upon an embedded version of Windows Server 2003, or a security or networking device built using an embedded version of Linux from (for example) Montavista Software or Red Hat. In most cases, appliance devices integrate operating system application software together with application functionality, security management, policy management, quality of service, load balancing, high availability, and bandwidth management. Like the operating system itself, this layered software is in most cases unique and specific to the appliance — and not commercially available independent from the appliance itself. However, in certain cases, the layered software may be commercially available from the firm that produced the software. For instance, a security or storage appliance based on an embedded version of the Windows operating system may also incorporate certain layered commercial software products from Microsoft. In this context, commercially available operating systems (embedded or general purpose) and commercially available layered software products that are integrated in appliance devices will continue to be tracked in IDC's pure software market segments in addition to being tracked as part of the appliance device. This tracking methodology does not lead to double counting because appliance revenue cannot be combined with pure software revenue due to the differing taxonomical definitions describing these market segments.

Appendix C: Competitive Market Map Methodology

The Competitive Market Map is an IDC tool for evaluating the competitive position of software vendors in an increasingly complex market. The goal of the Competitive Market Map is to present a quantitative software vendor comparison tool based on IDC's rigorous software taxonomy and the depth and breath of software market data collected and analyzed by IDC. The Competitive Market Map is a tool that permits quantitative competitive analysis based on four variables: vendor revenue, momentum, reliance, and diversity. The metrics used are defined as follows.

Vendor revenue. The size of the bubble is determined by the size of the vendor's revenue in the selected market(s) relative to all the other vendors included in the selection for the selected year. All bubbles are normalized in a particular graph.

Momentum. On the y-axis, momentum is calculated as the product of the vendor's growth rate and the vendor's annual revenue in the selected market in the selected year relative to the previous year.

Momentum = (growth rate from year 1 to year 2) x (revenue in year 2)

214 #213259 ©2008 IDC Reliance. This is the ratio of a vendor's revenue in the selected market to that vendor's total revenue in the domain in the selected year. The color of the bubble shows the range of the ratio with:

White: 0% < reliance <= 25%

Yellow: 25% < reliance <= 50%

Orange: 50% < reliance <= 75%

Red: 75% < reliance <=100%

Diversity. Diversity (on the x-axis) is a measure of the breadth and depth of product offerings within a single market dimension. Diversity is weighted by the importance of each individual market segment among all segments along the selected dimension. Given a market dimension:

Σ share(k,j) Diversityk = market segments j Wj * (1 - (1/10 ) ), for all vendors, k

Where:

Share(k,j) is the share of vendor k in market segment j

Wj is the share of market segment j among all segments along the selected dimension

Thus, a company with a given share in all segments will have a greater diversity than a vendor with the same share in fewer segments. A company with a minimal share in all market segments along a dimension will have less diversity than a vendor with greater shares in all the segments. Also, vendors with a given share in a large market segment will have a larger diversity that a vendor with the same share in a smaller market segment. Diversity is thus proportional to:

The number of market segments in which a vendor participates

The vendor's share in each of the segment

The relative size of each of the segments in which the vendor participates

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