Flexera Software is hosting their annual SoftSummit conference from October 11-13, 2010 in San Jose, CA. The agenda includes a business update from Flexera's CEO, a discussion of trends driving application usage management, and how Flexera's solutions address software producers' and enterprises' challenges in monetizing applications and optimizing license usage in today's changing technology landscape.

1. Welcome to
SoftSummit 2010!
October 11 – 13, 2010
Hilton San Jose
San Jose, CA

2. Flexera Software
Overview and Vision
Mark Bishof
President and Chief Executive Officer
Flexera Software

3. Agenda
• Flexera Software Business Update
• The World is Changing
• Flexera Software’s Role

4. Flexera Software
Business Update

5. Flexera Software Summary
Application Usage Management
Industry Leadership Leading supplier of solutions enabling software producers to
optimize revenues and enterprises to maximize value
Strong Management Seasoned, experienced management team
• $140m in revenue
Strong Financial Profile • $50m in EBIDTA
• Strong run-rate revenue profile
• Software Entitlement Management Solutions
Broad Growth
• Installation & Packaging Solutions
Opportunities • Enterprise License Optimization
Blue Chip Customers

6. Forces Driving Application Usage Management
Applications Have Turned Strategic
Producers of Consumers of
Applications Applications
• Drive revenue & • Avoid surprises
protect assets • Step beyond
• Mature discounts
monetization • Globalize usage
• Position for • Rationalization
usage-based Tipping of supply
future Point

7. Application Usage Management “System”
Producers of Consumers of
Applications Applications
• Drive revenue
Strategic • Avoid surprises
& protect Solutions for • Step beyond
assets Application discounts
• Mature Usage • Globalize
monetization Management usage
• Position for • Rationalization
usage-based of supply
future

8. Applications Have Turned Strategic
Software & Hardware Producers Enterprises & Government
Entitlement & Compliance Enterprise License
Management Optimization
• Entitlement management • Application discovery
licensing • Inventory
• Electronic software delivery • Entitlement management
• Compliance • Usage collection/aggregation
• Analytics • Reconciliation
• Optimization
Flexera
Software
Solutions
Flexera
Installation Software Application Readiness
• Windows installation • Application discovery and
development Solutions identification
• Cross-platform installation • Compatibility testing
development • Planning
• Fixing & Packaging
• Deployment

9. Market Leading Brands in Each Segment
#1 Market share #1 Market share
Entitlement & Compliance Management Enterprise License Optimization
• 3,000+ ISVs and Device Manufacturers • 8 of top 10 Aerospace & Defense
• 200,000,000 PC’s Receiving Software • 6 of top 12 Semiconductor
Downloads and Updates • 5 of top 10 Oil and Gas
• 250,000,000 Installations Licensed • Over 500 Enterprise Customers
#1 Market share #1 Market share
Software Installation Application Packaging
• 30,000+ Enterprises • Over 1 million applications reliably and rapidly
• 30,000+ ISVs packaged
• 500,000,000 Installations • Distributed by 3 of the top 4 PC Life Cycle
Configuration Management Vendors
• 10,000+ Enterprises

10. The World is Changing

11. Source: IBM

12. Source: IBM

13. Source: IBM

14. Source: IBM

15. Source: IBM

16. What Does This Mean to You (and Us)?
• Implications on applications
• Applications everywhere—the cloud, virtual
environments, on-premises
• Smarter applications that connect with and
obtain more timely and complete
information from other apps, sensors, etc.
• Customer expectations for greater
flexibility—subscription, pay-per-use, etc.
• Strategic enablers
• Protection of intellectual property
• Flexibility to quickly adapt business models
and deployment methods
• Greater insights into who owns what—
promote cross-/up-sell, maintenance
• Help customers achieve
continuous compliance

17. Software Vendor
Market Trends & Business Challenges
• Market Trends
• Mergers & acquisitions on the rise
• New license revenues declining leading to
increase in audits
• Compliance concerns
• Don’t know who their customers are and
what they are entitled to
• Customers increasingly interested in
usage-based models
• Business Challenges
• Maximizing revenues
• Ensuring compliance across increasingly
global customer base
• Delivering a consistent experience to
customers
• Managing operating costs

18. High-Tech Manufacturers
Market Trends & Business Challenges
Millions of Communicating Devices WW*
18,000
• Market Trends
16,000 • Hardware commoditization
14,000 • Value migrating to applications
Mobile Devices, Consumer Electronics,
Automobile,
12,000 • Devices becoming internet connected
Industrial Machines, Appliances, Toys,
and Other
10,000
• Functional convergence –
Embedded Equipment
8,000
multi-function devices
6,000
• Configure-to-order postponement
4,000
strategies
2,000
• Business Challenges
Traditional Computers & Communications Equipment
0
2008 2010 2012 2014
• Monetizing applications and protecting
Source: IDC Device Base Model, 2009 * Excludes voice- and SMS-only phones
intellectual property
• Managing a software business in a
manufacturing company
• Delivering customers an excellent
experience

19. Enterprises & Governments
Market Trends & Business Challenges
Market Trends
• Don’t know what apps are owned/used
• Software audits are increasing
• No controls over software spend—ad
hoc contracts and purchases
• Compliance risk—made worse by M&A
• Reduced headcount and budgets
• SaaS, virtualization, cloud
Business Challenges
• Buy what you need, use what you have
• Continuous compliance
• Optimize applications at usage level
• Maximize value

20. Flexera Software’s Role

21. Applications Have Turned Strategic
Software & Hardware Producers Enterprises & Government
Entitlement & Compliance Enterprise License
Management Optimization
• Entitlement management • Application discovery
licensing • Inventory
• Electronic software delivery • Entitlement management
• Compliance • Usage collection/aggregation
• Analytics • Reconciliation
• Optimization
Flexera
Software
Solutions
Flexera
Installation Software Application Readiness
• Windows installation • Application discovery and
development Solutions identification
• Cross-platform installation • Compatibility testing
development • Planning
• Fixing & Packaging
• Deployment

22. Continuous Compliance & Optimization Platform
Contracts & Entitlements
Producers of Continuous Consumers of
Applications Compliance & Applications
Portal Optimization Portal
Portal
Inventory & Usage

23. SaaS Business Challenges and Strategies
CHALLENGES STRATEGIES
Many pure-play SaaS companies have Package and price offerings to match
“one-size fits all” packaging resulting in what customers want to buy WITHOUT
missed revenues. SaaS business models involving engineering
need to change on a dime to address an
evolving market.
Example: NetSuite has only two options:
NetSuite and NetSuite CRM+
SaaS providers are losing 40-60% of Protect service against revenue leakage
potential revenues to credential sharing to credential sharing
abuse
SaaS providers have a “one size fits all” License (e.g. annual, concurrent use etc)
approach to licensing, leaving potential service according to how customers want
customers and revenues out to pay for access
Example: ESRI offers a day-pass
for some products

24. Announcing: Flexera Software Solutions for SaaS
Growing SaaS Revenues
• Define service bundles based on features
• Create entitlements for service bundles
SaaS
• Provision SaaS users based on entitlements
Services
• Automate subscription management, up-
/cross-sells
• Gain customer insights on products and version
• Define and enforce license models (e.g.,
concurrent use, annual, trials) and usage policies
Sue Jan
• Augment user credentials with machine
identities to formulate license usage policies
• Available today via market leading and proven
FlexNet Publisher (licensing) and FlexNet
Operations (entitlement and subscription
management) solutions

25. High-Tech Mfr Business Challenges & Strategies
CHALLENGES STRATEGIES
Device manufacturers face eroding Push hardware costs to end customers
margins on hardware products by making device capabilities available as
pure software
Enable up- and cross-sell revenues by
delivering capabilities as software add-ons
or on a trial basis
Service providers need to provision capacity Allow service providers to dial up/dial
to meet peak demand which leads to down capacity on-demand without
unused capacity during off-peak periods deploying hardware, eliminating unused
hardware
Service providers and branch office Consolidate many capabilities into one
locations need to reduce power device
consumption, space and administrative
costs

26. Announcing: Flexera Software Solutions for Virtual Appliances
Protect Margins, Enable Cross-/Up-sells and Flexible Capacity Models
• Protect intellectual property
• Automate capacity and capability
provisioning and de-provisioning
• Enable field-upgrade of capacity and
capabilities for virtual appliances
• Report deployment of virtual appliances
provisioned to FlexNet Operations
• Automate cross-/up-sells of capabilities
• Compare capacity and capabilities owned
versus deployed by an end customer
• Available today via market leading and proven
FlexNet Embedded (licensing) and FlexNet
Operations (entitlement management) solutions

27. Taking on the Cloud!
For more information on our
cloud/SaaS offerings
Tuesday, October 12th
Technical Track – Licensing
11:30 am – 12:30 pm

28. Thank You for Coming!
Please welcome…
Tom Reilly
Chief Executive Officer
ArcSight