Vince Vasquez Director, Business Development – SaaS Sun Microsystems Solaris On-Demand, Assisting Your Service Transition to a Software-as-a-Service

Agenda Mission Statement Trends in SaaS Solaris 10 Virtualization as a Trend Sun’s Processor Strategy Sun Storage Portfolio Sun Services

Mission Statement

Trends in SaaS

Solaris 10

Virtualization as a Trend

Sun’s Processor Strategy

Sun Storage Portfolio

Sun Services

Callidus On-Demand Mission Statement To deliver Callidus Software’s leading-edge Sales Performance Management solutions over the web. … and… To deliver those solutions without any customer concern about technical infrastructure - allowing our customers to focus on their own business objectives.

To deliver Callidus Software’s leading-edge Sales Performance Management solutions over the web.

… and…

To deliver those solutions without any customer concern about technical infrastructure - allowing our customers to focus on their own business objectives.

Trend towards Software-as-a-Service Customer Drivers Faster Deployments Fewer internal IT resources required (lower TCO) Less complexity for IT -- don’t manage Callidus application and environment Availability guarantees Enterprise functionality down market Lower upfront cost point to entry (trade-off: multi-year guarantee required) Enhanced flexibility to change commitments as business needs change both on-premise and on-demand solutions available Reduced customer cost and risk when acquiring new software Improves financial predictability, simplifies budgeting; OpEx vs. CapEx

Customer Drivers

Faster Deployments

Fewer internal IT resources required (lower TCO)

Less complexity for IT -- don’t manage Callidus application and environment

Availability guarantees

Enterprise functionality down market

Lower upfront cost point to entry (trade-off: multi-year guarantee required)

Enhanced flexibility to change commitments as business needs change

both on-premise and on-demand solutions available

Reduced customer cost and risk when acquiring new software

Improves financial predictability, simplifies budgeting; OpEx vs. CapEx

ISV Challenge “ What I don’t like about SaaS….is the aaS part. We simply want to be a great software company, AND We want to offer on-demand software to our customers, BUT We don’t want to be in the services business, AND We don’t want to deal with issues like backup, recovery, security, and service level agreements, AND We don’t want to have to re-architect our application for On-Demand Multi-tenancy.”

SaaS Infrastructure Responsibility Shift Traditional On-Premise License and Deployment Model Customer buys license For ISV Software Customer pays yearly Support contract Emerging On-Demand License and Deployment Model Customer buys monthly per user fee for access to ISV software Support contract pricing built into monthly user fee Customer buys any additional ISV software required (e.g., db) Customer responsible for deployment Customer responsible for customization Customer responsible for systems mgmt & monitoring Customer responsible for upgrades ISV buys any additional ISV Software required ISV responsible for Deployment Customer configures application. No customization available ISV responsible for systems mgmt & monitoring with SLA ISV responsible for upgrades ISV’s responsibilities increase with SaaS: hosting or choosing hosting provider selecting servers and storage selecting middleware deployment configuration standing up infrastructure security dealing with data privacy rules reliability through SLA application performance application upgrades changes in sales comp plans changes in revenue recognition cannibalization of license revenue integration required organizational changes

hosting or choosing hosting provider

selecting servers and storage

selecting middleware

deployment configuration

standing up infrastructure

security

dealing with data privacy rules

reliability through SLA

application performance

application upgrades

changes in sales comp plans

changes in revenue recognition

cannibalization of license revenue

integration

required organizational changes

Callidus On-Demand runs on Solaris On-Demand Enterprise Customers SMB & Enterprise Customers Callidus On-Demand Infrastructure Provider Solaris On-Demand Components HW, SW, Storage, Networking Leased Pricing Support Managed Operations (ITIL) Client Solutions (architecture/design) Hosting Partner Ping, Power, Pipe On-site managed services Back-up and Disaster Recovery services Managed Operations (ITIL) Infrastructure ISVs Oracle, BEA, Informatica, Actuate MONTHLY PER-USER PRICING SLA SLA Application Management Callidus Manages Application Deployment Architecture Sun and Callidus work together in partnership to define deployment architecture -- leveraging each party’s core competencies

Over 150 World Performance Records Runs On More than 900 Platforms Free and Open Source Guaranteed Source and Binary Compatibility Security Built-in Solaris 10 Dtrace: Winner of the Wall Street Journal's 2006 Technology Innovation award Dtrace (Dynamic Tracing) Enables real-time application debugging and optimization Predictive Self Healing Automatic diagnosis and recovery from failures Containers, Logical Domains, Xen Consolidate, isolate and protect thousands of apps on a single server ZFS (zettabyte file system) Enables virtually unlimited scalability Enhanced Security Solaris 10: World’s Most Innovative Operating Environment

Over 150 World Performance Records

Runs On More than 900 Platforms

Free and Open Source

Guaranteed Source and Binary Compatibility

Security Built-in

Dtrace (Dynamic Tracing)

Enables real-time application debugging and optimization

Predictive Self Healing

Automatic diagnosis and recovery from failures

Containers, Logical Domains, Xen

Consolidate, isolate and protect thousands of apps on a single server

ZFS (zettabyte file system)

Enables virtually unlimited scalability

Enhanced Security

Solaris Containers Containers are virtualized application environments Thousands of containers can be installed on a system Each acts like a separate operating system, while each is in fact running on the same kernel Container Cloning Container Migration Instant restart

The Datacenter Today Datacenter Management Server OS Application Service Storage Client Developer NETWORK Database Database App Server Mail Server App Server Average server utilization between 5 to 15 % Server sprawl is hard to manage Single application per server Multiple storage islands

Industry Trend: Virtualize Everywhere! Developer Datacenter Management Server OS Application Service Storage Client ERP EMAIL CRM ERP Network Phase 1: Maximize System Resources Across Entire Datacenter Phase 2: Agility through encapsulation Database Database App Server Mail Server Web App Server

Callidus On-Demand: Callidus Virtualized! Callidus Sun Managed Services Server OS Application Service Storage Client Callidus Network Multiple Customer Worldwide Access Virtualization through Solaris 10 Containers App Server Web Server Average Server Utilization Reaches 75 % Web Server Callidus Callidus Callidus Callidus Database Database Each customer runs in its own set of secure containers

Solaris 10: Predictive Self-Healing Self-diagnosis in milliseconds Fine-grained recovery Zero source code changes required Close relationship with AMD, Intel, SPARC engineers Solaris Fault Manager Solaris Service Manager Stops Problems Before They Happen

Solaris 10 Security Digital Certificates Everywhere IP Filter Firewall Secure Execution User Rights and Process Rights Management Cryptographic Infrastructure Secure by Default Networking Solaris Trusted Extensions Build and sustain trust

Digital Certificates Everywhere

IP Filter Firewall

Secure Execution

User Rights and Process Rights Management

Cryptographic Infrastructure

Secure by Default Networking

Solaris Trusted Extensions

Sun’s Processor Strategy x86 / x64 With Chip Multi-Threading The Innovation of Solaris on All of Them Teams With Teams With Coming Q4'07: 64 Threads / 8 Cores Integrated Networking & Security 128 Threads / 16 Cores in development SPARC64 - VI Single Thread Mission Critical Processors

x86 / x64

With Chip Multi-Threading

The Innovation of

Solaris on All of Them

Teams With

Teams With

Coming Q4'07: 64 Threads / 8 Cores Integrated Networking & Security

128 Threads / 16 Cores in development

SPARC64 - VI

Single Thread Mission Critical Processors

Comprehensive Portfolio: Industry’s Fastest, Most Scalable, Most Energy Efficient Systems Expanded Sun Fire & Netra UltraSPARC Servers Breakthrough Sun Fire & Netra x64 Servers Sun Fire & Netra CoolThreads M Servers Powerful Sun SPARC Enterprise Servers Enhanced

The Sun StorageTek Portfolio Disk-Based Solutions Services Software Portfolio Recovery and Archiving Solutions Virtualization Systems Backup and Recovery Data Services File Systems Architectural and Consulting Services Implementation and Learning Services Support Services Managed Operations Services Enterprise Storage Management Software Identity Management

Sun Fire X4500 Breaking the $2/GB barrier Integrated server and massive storage array Up to 24 terabytes of storage in 4RU Running Solaris with ZFS 2 GB/s throughput With general purpose components 6 storage solutions in the works Sun Fire X4500 (a.k.a. Thumper) “ The World’s First Hybrid Data Server”

Breaking the $2/GB barrier

Integrated server and massive storage array

Up to 24 terabytes of storage in 4RU

Running Solaris with ZFS

2 GB/s throughput

With general purpose components

6 storage solutions in the works

Sun Fire X4500 (a.k.a. Thumper)

“ The World’s First Hybrid Data Server”

Sun’s Services Power Technology Design and implement scalable IT infrastructures Build Support Achieve service levels and tap into the full value of Sun technologies Transform Optimize, manage and adapt infrastructures to meet today’s business demands Sun Services

Design and implement scalable IT infrastructures

Build

Support

Achieve service levels and tap into the full value of Sun technologies

Transform

Optimize, manage and adapt infrastructures to meet today’s business demands

Lifecycle of Infrastructure Services Build Support Transform Managed Services Professional Services Support Services Learning Services Connected and Integrated Innovation through Technology, Knowledge, Process and Partnerships

Build

Support

Transform

Connected and Integrated

Sun Managed Services HETEROGENOUS MANAGEMENT 24x7 MONITORING ENHANCED MANAGEMENT Sun Managed Operations Delivery Platform ITIL-based Operational Processes – Incident, Change Management and Inventory Management Network Devices Security Devices Storage Devices Database Applications Applications Web Servers Operating System Delivering Trust through Reliability, Security and Performance Responsible for keeping Callidus On-Demand online and secure!

Summary Your choice to run Callidus On-Demand or On-Premise Callidus On-Demand allows your to focus on your core competencies, while allowing Callidus and Sun to focus on ours. Callidus On-Demand runs on a proven set of components: Sun Architects and Specialists Solaris Operating Environment Sparc, Opteron and Intel based systems Sun Storage Sun Managed Services Callidus On-Demand has proven reliability and security Callidus On-Demand is available now and has been in production for over a year … give it a try! Sun can be your trusted partner for delivering SaaS

Your choice to run Callidus On-Demand or On-Premise

Callidus On-Demand allows your to focus on your core competencies, while allowing Callidus and Sun to focus on ours.

Callidus On-Demand runs on a proven set of components:

Sun Architects and Specialists

Solaris Operating Environment

Sparc, Opteron and Intel based systems

Sun Storage

Sun Managed Services

Callidus On-Demand has proven reliability and security

Callidus On-Demand is available now and has been in production for over a year … give it a try!