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Corio and the Application Corio and the Application Server Provider MarketplaceServer Provider Marketplace

David K. NielsenDavid K. NielsenRegional Sales Vice PresidentRegional Sales Vice President

October 29October 29thth, 2003, 2003

** Corio Confidential Information**

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Agenda

The ASP Business Landscape

The Early Days

Sales and Marketing at Corio

Lesson Learned

** Corio Confidential Information**

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The CIO Dilemma

Reduce costsof current enterprise apps

Absorb required applications maintenance expenses

Deliver new applications fast, at low cost and low risk

Eliminate multi-year, multi-million, multi-consultants applications projects

ITOrganization

** Corio Confidential Information**

“Do more with less”Adapt to variable user demandsBudgets will not increaseResults required in months

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Enterprise Applications Management Architecture

We support an end-to-end scopefor our customer’s mission critical

enterprise applications

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Full Life Cycle Management of Enterprise Software Assets: Projects and Production

NewNewImplementationImplementation

Major Technical UpgradeMajor Technical UpgradeAugmented architectureAugmented architectureConsolidationConsolidationNew securityNew security

Major Functional UpgradeMajor Functional UpgradeNew modulesNew modulesNew business unitsNew business unitsNew geographiesNew geographiesNew major customizationNew major customization

PRODUCTIONPRODUCTIONMANAGEMENTMANAGEMENT

Updates/patchesBreak/fixFunctional supportMonitoringEnhancements

** Corio Confidential Information**

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Representative Clients

Financial Services

Communications, Content and Hospitality

Public/Non-Profit Sector

Consumer and Industrial Manufacturing

High Tech

** Corio Confidential Information**

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IDC Leadership Grid

175,000 Users Supported

1 Billion Transactions Processed

100,000 Service Requests Fulfilled

1,000 Projects Executed

1,000 IT Professionals Engaged

$100 Million Investment in Processes and Technology

“The competitive environment in this market is changing very rapidly, and leaders are beginning to emerge. According to our analysis, Corio is a leader in the enterprise ASP market today, and the company has a clear plan to retain that position in the future.”

Amy Mizoras, IDC

"Corio's success with top customers validates that the enterprise ASP model continues to gain traction in the Fortune 1000."

Bill Martorelli, Giga

“By Showing steady progress toward profitability and offering new usage-based pricing for services, Corio is in a good position to take advantage of the increasing interest in On Demand computing. It has struck a good balance between the original rigid ASP model and the “your mess for less” traditional outsourcing model.”

Lance Travis, AMR

Source: IDC Leadership Grid, 2002

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Leveraging Core Competencies

IT Technologies

SystemsIntegratorsSystems

Integrators

IT OutsourcersIT Outsourcers

Off-

Shor

e

ISVsISVs

Core Competency

AppsManagement

Projects

Functional S/W

Infrastructure

$/hour SoftwareLicenses

Asset Management EnterpriseApplication

Management

BPR

** Corio Confidential Information**

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Corio’s Annual Revenue Growth

15%15%--25% Revenue Growth Expected This Year25% Revenue Growth Expected This Year

44.949.6

56.1

65-70

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

$

Millions

2000 2001 2002 2003

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Corio iSRVCEA Technology Resource Management (TRM) Solution

Corio iSRVCE provides Corio customers with visibility and control over their hosted applications by tying Support, On Demand Services, Content Exchange,

SLAs, Billing and Knowledge into a cohesive IT management system.Support

–Track and manage service requests and incidents

–Reporting and analysis of service requests

On Demand–Learn about relevant On Demand Services, such as Corio Development, Delegated User Provisioning

–Place Orders–Track Provisioning Status–Manage Shopping Cart

Content Exchange–Upload/Download content from your applications

SLAs–SLA Metrics and reporting–Track contracts & addendums

Billing –Online bill presentment

Knowledge–Document version, collaborate, search and archive

–Contracts, project dashboards, billing, reporting, architecture diagrams etc.

** Corio Confidential Information**

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iSRVCE DEMO

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Agenda

The ASP Business Landscape

The Early Days

Sales and Marketing at Corio

Lesson Learned

** Corio Confidential Information**

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Corio History

HistoryJonathan Lee founded Corio in September 1998. With an intimate understanding of the complexities and challenges associated with fast growth, Jonathan transformed DSCI (a virtual "IT team for hire" that he also founded) into Corio.

Excite@Home signed on as Corio's first customer and was brought live by Corio’s PeopleSoft Professional Services in fewer than 60 days, becoming the ASP industry's first live-hosted customer.

This win provided “proof-of-concept” to an ASP market that analysts predict will exceed $20 billion by 2002 and helped to catapult Corio into its industry leading position.

Corio went from the initial 20 person founding team in September of 1998 to 580 employees and a successful IPO in July of 2000. (18 months)

After two strategic acquisitions, Corio now has approximately 120 customers and over 300 employees.

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Corio MilestonesKey Corio Milestones

September 1998

Corio Founded - Birth of FastLane™ Methodology

November 1998 First Corio Customer - Excite@Home (Live in 60 Days)

Feb – April 1999

Strategic Partnerships Established: PeopleSoft, Exodus, Sun Microsystems, Marimba

May 1999 Series B Financing

July 1999 Expansion to 11 Offices Nationwide

August 1999 Orion™ Integrated Application Platform Live; Senior Management Team on board

October 1999 Strategic Partnerships Established: Siebel Systems, XO

Nov 1999 Series C Financing; Corio™ Intelligent Enterprise Launched; Strategic Partnerships Established: BroadVision, Commerce One

Dec 1999 Corio hosts our first ever Siebel customer, Netratings, 30 users.

Dec 1999 Corio Express™ Financials Launched

Jan 2000 Microsoft Invests in Corio; Corio Offers hosted Microsoft Solutions

Feb – March 2000

Strategic Partnerships Established: SAP, Moai, Requisite Technology

April 2000 Corio Files for IPO; Strategic Partnership Established: Ernst & Young

May 2000 Corio hosts the first ever (first anywhere in the world), Siebel Enterprise 2000 customer, Extreme Networks. Over 650 users, International Deployment to 15 countries.

May 2000 Corio launches Corio eMarket™ solution for net market makers

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Corio MilestonesKey Corio Milestones

July 2000 Corio makes initial public offering, becoming a publicly traded company on the NASDAQ under the symbol 'CRIO'

October 2000 Corio's first Global Trading Exchange goes live; Corio announces financial results for third quarter of year 2000

November 2000 Corio announces a strategic partnership with (I) Structure; Corio launches the Siebel FastLane Upgrade Program

December 2000 Corio launches Corio Intelligent Infrastructure (CII); Corio launches Corio Security

January 2001 Corio announces recent customer wins: Coreon, Elemica, Forest Express, Hitachi; Corio announces fourth quarter financial results on Jan 30th 2001; Corio signs agreement with Yahoo! to offer Hosted Enterprise Portal Solution

February 2001 Strategic Partnership Established: Oracle; Another Corio Customer goes live: Enporion Marketsite

June 2001 Corio’s First PeopleSoft v8.0 Customer goes live: WebGain; Quadrem Selects Corio to Host Global Mining, Minerals and Metals eMarketplace: Leading Industry eMarketplaces Continue to Select Corio as Their ASP of Choice; Ingersoll-Rand Selects Corio: Enterprise Agreement for Shared Services Signed

July 2001 Corio’s Second PeopleSoft v8.0 Customer goes live: Terra Lycos

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Corio MilestonesKey Corio Milestones

August 2001 National Gypsum selects Corio for PeopleSoft 8.0 HR and Financials implementation and hosting; Corio Successfully Migrates and Upgrades Hitachi America to SAP R/3 Release 4.6: Corio Delivers Accelerated Upgrades and Applications Management for Customized SAP Solutions

September 2001

Carlson Companies – global leader in travel and hospitality industries. 188,000 employed under its brands. Brands operate in 140 countries $31 billion in annual system wide revenue Corio service – PeopleSoft HR and payroll solution is currently being implemented at Carlson.

June 2002 Corio announces Corio iSRVCE, a Technology Resource Management (TRM) Solution Application interface provides Corio's customers with a technology platform extending visibility and control of Corio managed applications. IDC Places Corio in the ASP Leaders’ Quadrant

September 2002

Corio completes purchase of QCS ASP assets. New customers include: Department of the Treasury, Toshiba, Sumco, American Express, ABN AMRO among many others

September 2003

Corio is selected by the United Nations to provide hosting and applications management services for it’s worldwide PeopleSoft deployment

October 2003 Corio announces the purchase if Nexus Technology, a leader in the hosting and applications management industry focused on SAP.

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First Wave of ASPs

Business Business Executions Executions ChallengedChallenged

Core Competence

Operational Efficiencies

Large, Up-Front Investments in Physical Assets

New Business New Business Models & Value Models & Value

PropositionsPropositions

Bundled Pricing

“All You Can Eat”

Rent, Resell, or Finance Software & Infrastructure

“Free” Consulting

Legacy Business Legacy Business BackgroundBackground

Data Center Co-Location

Telecommunications

Independent Software Vendors

Systems Integrators

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Market Mood Swings

Industry Evolution

Press Hype

Industry “Founded”

Many New Entrants

Early Adopters Buy In

Hype

Early Failures

More Failures

“Destroy the Hero”

Increased Awareness of

Challenges

Doom

Long-Term Leaders Established

Market Leaders Cross Chasm

Renewal

“Create a Hero to Destroy One”

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Initial Market Conclusions

Unique ModelUnique Model ScalabilityScalability

Creating a Scalable ASP Business Model is the Core Challenge Lying Ahead

The ASP Model is a Unique Model

Not a Consulting BusinessNot a Software BusinessNot an Outsourcing BusinessNot an Infrastructure Business

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Agenda

The ASP Business Landscape

The Early Days

Sales and Marketing at Corio

Lesson Learned

** Corio Confidential Information**

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Marketing Primary Responsibilities

Campaigns targeting New Prospects– Corio Applications on Demand Campaign– Corio / SI & ISV Partner Programs

Campaigns targeting Corio Customers– Corio Insights: Newsletter– Corio Enhancements web seminar

PR Schedule – Target weekly releasesIndustry Analyst RelationsEvents - PeopleSoft Users ConferenceWeb Site Product Re-freshes - Update collateral and support materialsOther

– Customer Advisory Board– Corio iSRVCE– Customer Reference Call in Program

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Motivating Events to Engage An ASP(Some of our Marketing Strategies are geared to Trigger Events)

Support New

BusinessesBusiness Continuity

Cost Reduction Initiatives

New Implementations

Upgrades

Trigger Events

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Demand ProcessFrom Generation, to Qualification, to Prospect

QualifyingGoal = Convert B/Cs to A leads

Campaigns

Events

Google

Emails to Corio

Inbound Calls

PR/Website Offers

Outbound Calling

Referrals

Telebusiness

Calls

Emails

SI Partners

ISV Partners

Technology Partners

Prospect IdentifiedGoal = Convert A lead into

Closed Deal

SalesIs Primary

Lead on these lead sources

Closed

GeneratingGoal = Identify opportunities B/Cs

A

Pipeline

Forecast

Lost / Off

{-------------M a r k e t i n g -----------}{-----------S a l e s------------}

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Agenda

The ASP Business Landscape

The Early Days

Sales and Marketing at Corio

Lesson Learned

** Corio Confidential Information**

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Lesson’s Learned from Silicon Valley Start Up

Be VERY clear on what pain you are out to solve

Stay VERY connected to your customer

Be Flexible

If you are VC backed… they will mostly likely be active in the early days.

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Questions???