Frost & Sullivan North American Mobile Crm Analyst Briefing

North American Mobile CRM Market: Investment Themes Driving the Mobile CRM Space Swarna Pasupathi, Research Analyst Business and Financial Services Information and Communication Technology September 30, 2008

Focus Points Introduction Market Overview Investment Analysis Scorecards Question and Answers 2

Introduction • Frost & Sullivan’s Financial Research team has recently completed an extensive review of investment opportunities in the North American Mobile CRM market. • The study highlights the growth segments in the North American Mobile CRM market, and identifies specific investment themes and opportunities within the market. • It includes a comprehensive overview and in-depth financial analysis of the North American Mobile CRM universe covered by Frost & Sullivan. 3

Focus Points Introduction Market Overview Market Segmentation Industry Economics Investment Analysis Investment Themes Growth Monitor Scorecards Sector Scorecard Mergers & Acquisitions Analysis Venture Capital Score Card Venture Opportunity Score Card Question and Answers 4

Market Overview - Segmentation Segments Focussed • Mobile Sales Force Automation (SFA) • Mobile Field Service Management (FSM) Major Industry Participants • COGNOS • Oracle (PeopleSoft and Siebel) • Salesforce.com • SAP AG • Maximizer Software • Vettro • Dexterra • SAGE • Sybase – iAnywhere Solutions 5

Market Overview Market Overview Market Segmentation Industry Economics • Enterprise inclination towards mobility platform is on the rise. • Growth: CRM spending is growing at 11.8% CAGR • Opportunity: Mid-market is still under-penetrated; only 20% of SMBs use mobile CRM and the rest of firms are in decision-making cycle to adopt mobile platform during the period 2008-2012. Despite an economic slowdown SMB’s will continue to invest in mobile solutions : • Competitive Advantage • Increases Productivity with less staff • Increases Customer Satisfaction 6

Industry Economics Increases Productivity and ROI Lack of justifying the total cost of ownership (TCO) The concept of mobile-commuting in the workforce offers flexibility thereby E increasing the overall productivity of the Non-Acceptance of Technology N I team. H N A The is an increase in the number of H Security and Integration issues on N vendors offering of Mobile-CRM I C integration applications. mobile devices stunt growth in the B E SMB segment I R Steady tariff plans from Mobile T S Network Service Provider O Increase in Number of Vendors R Subsidized mobile device S prices have reduced the deployment cost for organizations. Information Lag Availability of varieties of high powered mobile devices has created Slow rollout and adoption of next a robust platform for mobile application. generation networks 7

Investment Framework Investment Analysis Investment Themes Growth Monitor 1. Standardization of Mobile Network Operator’s Tariff Plans 2. Decrease in the Mobile Device Price 3. Immense Increase in Smartphone Shipment Worldwide 8

Investment Framework Investment Analysis Investment Themes Growth Monitor 1. Standardization of Mobile Network Operators Tariff Plans 120 Network Service Cost ($) 100 80 60 40 20 0 300 600 900 1500 Anytime Minutes Verizon T mobile AT & T Sprint Source: Frost & Sullivan 9

Investment Framework Investment Analysis Investment Themes Growth Monitor 2. Decrease in the Mobile Device Price Mobile Device Price ($) 700 600 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 Years Windows Mobile Palm Treo Blackberry Apple Source: Frost & Sullivan 10

Investment Framework Investment Analysis Investment Themes Growth Monitor 3. Increase in Smart Phone Shipment Worldwide Units Shipped (Million) 120 100 80 60 40 20 0 2004 2005 2006 2007 Year Shipment in Smartphone Devices Worldwide Source: Frost & Sullivan 11

Investment Framework Investment Analysis Investment Themes Growth Monitor Company Company’s Total NA NA Mobile CRM Growth MSFA FSM Revenues in 2007 Revenues in 2007 Rank (%) (%) ($ Million) ($ Million) (%) Segment CAGR (2007-2012) 20.6 15.0 ASTEA 20.4 1.3 20.0-25.0 0 100 ORACLE 9,460.0 47.0 15.0-20.0 65.0 35.0 Salesforce.com 557.9 43.0 15.0-20.0 80.0 20.0 SAP AG 4,064.0 24.4 15.0-20.0 60.0 40.0 Source: Frost & Sullivan 12

Focus Points Introduction Market Overview Market Segmentation Industry Economics Investment Analysis Investment Themes Growth Monitor Scorecards Sector Scorecard Mergers & Acquisitions Analysis Venture Capital Scorecard Venture Opportunity Scorecard Question and Answers 13

Segment Opportunity Scorecard Sector Score Card Mergers & Acquisitions Venture Capital Venture Opportunity CAGR Attractiveness Average Number of Revenues % Sector to Venture Sector Company Companies ($ Million) (2007 – Consolidation Capital Size 2012) Partners Small < 15 25.3 Low-Medium High MSFA 15.0 Medium < 10 46.8 Medium–High Medium Large <5 132.9 High Low Small < 30 19.8 Low–Medium High MFSM 20.6 Medium <10 56.9 Medium Medium Large <5 210.9 High Low Small < 10 19.0 Low High MSFA and 15.0 – MFSM Medium <10 42.6 17.5 Medium–High Medium Large <5 160.2 High Low Source: Frost & Sullivan 14

Segment Growth – SFA & FSM Sector Score Card Mergers & Acquisitions Venture Capital Venture Opportunity 1000.0 Growth $ Million 800.0 600.0 400.0 200.0 0.0 2007 2008 2009 2010 2011 2012 Years SFA FSM Source: Frost & Sullivan 15

Mergers and Acquisition Analysis Sector Scorecard Mergers & Acquisitions Venture Capital Venture Opportunity Deal % Target Date Acquiring Target Business Size Revenue Owned Revenue Announced Company Company Acquired ($ Multiple After ($ Million) Million) Transaction Business Enterprise 7-Oct-07 SAP AG Objects 6,780.0 1,250.0 5.4 100 Software SA Omniture Visual Business 25-Oct-07 394.0 78.8 5.0 100 Inc Sciences Analytics Business 12-Nov-07 IBM COGNOS 5,000.0 949.0 5.3 100 Intelligence Source: Frost & Sullivan 16

Venture Capital Scorecard Financial Analysis Segment Opportunity Mergers & Acquisitions Venture Capital Venture Opportunity Relevant Experience Funded Date of Venture Year of Field of Funding Company Segment of Amount ($ Funding Partners Establishment Investment Round Management Million) Team Battery 1983 IT Experienced Since Ventures Onyx CRM 0 N/A 2003 Thoma 1998 Diversified Experienced Cressey 01-Aug- Draper 04 and IT and Fisher 1978 Experienced 2.0 + 5.75 A and B 01-Feb- Healthcare Jurvetson 05 Sugar CRM CRM 17-Oct- New IT, Biotech, 05, 07- Enterprise 1985 and Clean Experienced 14.0 + 5.5 C and D Feb-08 Associates Energy Source: Frost & Sullivan 17

Venture Opportunity Scorecard Financial Analysis Segment Opportunity Mergers & Acquisitions Venture Capital Venture Opportunity Company’s Application Funding Till Catering to Technology Clients and Overall Company Segment Date Mobile Innovation Reputation Attractiveness ($ Million) Devices MSFA Metrix & 50 Medium Medium Medium Medium MFSM MSFA Antenna & 45.5 High Medium High Medium-High Software MFSM MSFA Dexterra & 86.5 High Medium Medium Medium-High MFSM Source: Frost & Sullivan 18

Future Roadmap • Increased adoption to mobility platform by SMB segment • The roll out of Apple iPhone and Goggle Android phone • Emerging Platforms and possible alliances in the future • Mobile Applications vs. Mobile Network Service Providers vs. Mobile Device Manufacturers vs. Internet Community vs. Customers • Innovative, patentable and interoperable mobile application will attract future investments. 19

Your Feedback is Important to Us What would you like to see from Frost & Sullivan? Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by taking our survey. 20

For Additional Information • To leave a comment, ask the analyst a question, or receive the free audio segment that accompanies this presentation, please contact Stephanie Ochoa, Social Media Manager at (210) 247- 2421, via email, analystbriefings@frost.com, or on Twitter at http://twitter.com/stephanieochoa. 21

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Frost & Sullivan North American Mobile Crm Analyst Briefing

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