SilkElite Monthly Webinar November 2, 2004

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SilkElite Monthly WebinarNovember 2, 2004
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Agenda SilkElite Webinar

• Sales Meeting Recap
• Announcements/Segue News
• Earnings Release
• Business Update
• Pricing Changes
• Phil Strange, Business Development Manager, EMEA
• QA

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Sales Meeting Recap October 12-13

• Segue Corporate Vision and Business Plan
• Presented by Segues senior management
• Update on Segues Marketing Plans
• Presented by Segues marketing team
• Branding Strategy
• Lead Generation Strategy
• Customer Advisory Council
• Segues Winning Product and Solution Update
• Presented by Segues product marketing team
• Congratulations to Klaus Genseke and the CUSS
  Team for being named Segues Partner of the Year!

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Q3 Earnings Release

• Segue Reports Continued Growth and Profitability!
• Net revenues were 8.4 million
• License revenue increased 25 over Q3, 2003
• Q3 Profit 703,000
• YTD results are also extremely positive - 24.5
  million
• YTD profit is 1.2 million
• Cash on hand at end of Q3 9.9 million
• Maintenance renewals are over 90

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Software Quality Optimization

• DefinedSoftware Quality Optimization (SQO)
  automates and manages the processes associated
  with defining, measuring, managing and
  maintaining application integrity and
  performance. It ensures that enterprises minimize
  costs, maximize the potential for business
  success and realize the full potential of their
  business application investments.
• Segue Optimizing Software Quality
• SilkCentral product strategy
• Branding project
• Webinars

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Announcements

• Business Update
• Announced new partnership with The Revere Group,
  focusing around performance optimization of
  PeopleSoft applications (11/2)
• Article authored internally was published in
  Byte.com about testing localized applications
  (10/6)
• Ashish Katrekar, Worldwide Manager of SQA, Varian
  Medical, was included in a Computerworld article
  about test automation (10/4)
• Segue is named Technology Partner of the Year by
  Borland Software at BorCon 2004 in San Jose
• Retail momentum press release issued and retail
  case study about Bluefly.com / Testware / Segue
  published in eWeek (9/22)
• http//www.segue.com/about-segue/newsroom/inde
  x.asp

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Announcements

• Upcoming Trade Shows
• StarWest 11/17 11/18, Anaheim
• EuroStar 12/1 12/3, Köln
• http//www.segue.com/about-segue/events.asp

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New Pricing for Term and Commercial Licenses

• Phil StrangeBusiness Development ManagerEMEA
  Region

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Agenda

• Understand Segues licensing and pricing models
  and terms of use
• Review standardized terminology used throughout
  pricing and licensing

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How does Segue License?

• By Site what is this?
• Address on the P.O. is used to define Site
• Ideally, a license should be associated with a
  particular group within an organization will
  strive to identify as precise a Licensee as
  possible
• All legal documents refer to a Licensee of our
  Product
• Product License Authorization Server (LAS)
  Programs Documentation
• Concurrent usage
• Any end users with access to the LAS have the
  right to use the Programs (SilkTest, etc.) in
  accordance with terms of use
• End Users can reside in 3rd party locations,
  though Licensee is obligated to ensure all use of
  Products comply with Standard License Agreement
  (SLA)

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What Licensing Models Does Segue Offer?

• NEW 7 Usage Types in Vantive
• 2 different terms of use (both covered in one SLA)

Usage Types
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More Details of Licensing Models

• Standard licensing perpetual
• Maintenance is an additional 18 per year
• Term licensing
• Weekly sold in x units, each one 7 days long
• Additional days sold in x units, can run
  nonconsecutive
• Monthly sold in x units, each one a month
  long
• Annually (i.e. Subscriptions) (1, 2, 3 year
  durations)
• Maintenance is included with all term licenses
  gt30 days for lt30 days, Technical Support is
  included
• Commercial licensing
• Can work on external projects/applications -
  Commercial Use terms of use apply as outlined in
  SLA
• Pricing is 150 of equivalent Internal Use
  pricing - Term-based only
• Chosen in Vantive via a checkbox on the
  opportunity screen

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Term license example

SilkPerformer 100 with SAM
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Topic Updates and Upgrades

• We have the X.Y.Z product release convention
• X release major new functionality
• Y release minor new functionality
• Z release only bug fixes (guideline)
• Updates Z releases and lower (Includes Service
  Packs, Hotfixes, Patches)
• Subsequent releases of a Product that contain
  only error corrections
• Do not include Upgrades
• Do not include separate Products
• Upgrades Y and X releases
• Subsequent releases of a Product containing new
  functionality, support of a new operating system,
  or support of a new application
• Do not include separate Products
• Maintenance INCLUDES the ability to obtain
  technical support, UPDATES, and UPGRADES

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Topic License Checkouts

• Licensee can temporarily move product licenses to
  a mobile platform and use it as a license
  server
• Can be done by licensee with no need to contact
  Segue
• Originally created to allow SilkTest users to
  write scripts while at home, offline from the
  company network
• Potential for abuse by people checking out
  licenses to perform for service load testing
• Continue to provide this capability but clearly
  identify terms of use internal use only, not to
  be used for Commercial service
• If Commercial Use is desired, must originally
  purchase a Commercial Use license

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Q A

• Questions?

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SilkElite Monthly Webinar

• Thanks for your attendance today!
• Next SilkElite Webinar
• December 7, 10am EST