Open standards and open sourceA view on the market trends

Open source Applications and Standards WorkshopETSI 16/12/04

Chandra De KeyserEU Business Development Director

Slide 2

Agenda

Software AG, the XML Company

Mixed revenue model

Services trends

Open standards versus Open Source

Testing Open Source

Slide 3

Agenda

Software AG, the XML Company

Mixed revenue model

Services trends

Open Standards versus Open Source

Testing Open Source

Slide 4

1979First Mainframe 4GL

35 Years History of Technological Leadership

1971 First Mainframe Database developed by Peter Schnell

1969 Company founded

1985 Established First Platform

Independent Language

1983TAPS (Trade Analysis & Process System) World’s Largest Clearing House System

1999IPO – Frankfurt Stock

Exchange MDAXGermany’s Top 50 Stock

1998Introduced First XML Server

1997First company to port DCOM to Mainframe

2000First Mobile Fleet Mgmt System

2002SCP Award

Outstanding service award received 6 years in a row

2002/2003“Company to Watch”Intelligent Enterprise

Magazine

1991Introduced First Service Broker

for Distributed Applications

2001First Database to Utilize IBM’s

New 64 bit Virtual Storage Architecture for Mainframe

2003 Winner of 14 Readers Choice Awards in the

XML / Web Services Journal

Q4/2003New strategic

focus

2001/2002Named Global Market

Leader for XML Servers, IDC

2003 CIO 100 - Honoree

CIO Magazine 2003

Slide 5

Computerworld – 2002 Innovative TechnologyWinner of six XML / Web Services Journal,

Readers’ Choice Awards 2003

Awards

TechnologyTamino XML Server.

EntireXXML / Web Services Journal, Readers’ Choice Awards 2003Winner of eight Reader’s Choice Awards

Intelligent Enterprise Magazine 2002/2003 “Company to Watch”

CIO Magazine 2003 - CIO 100: HONOREE

Company

Slide 6

Revenue & regional structure

Region North

Region South

Region Central/Asia

Approx.

39%Approx

.

27%

Approx.

34%

Slide 7

Agenda

Software AG, the XML Company

Mixed revenue model

Services trends

Open Standards versus Open Source

Testing Open Source

Slide 8

More than 3500 Customers across all Industries worldwide

Media & Telecommunications

Retail & Manufacturing

Government

Transport & Logistics

Finance

Slide 9

Revenue 2003

(in M€)

2003

Product Revenue License

Maintenance

295.5 104.3 191.2

70%

25%

45%

Services

124.3 30%

Other

2.4

TOTAL 422.2

Slide 10

Example of Clients deals

L&M: Delta: all core apps ADABAS/NATURAL FBI: core apps ADABAS/NATURAL Lufthansa, Deutsche Bahn, Crédit Lyonnais, Dexia

Services: Spain Taxes: 15 yrs / 750 man years:

NAT/ADA + DB2 + Java + XML + zOS + UNIX Spain Police: 12 yrs / 100+ man years

NAT/ADA + Informix + Java + XML + zOS EU OPOCE: 12 yrs – 18 M€

XML + Java + Jboss + Oracle + Solaris BE PCF: 20 man years– 2 M€

XML + Java + python + PostgreSQL + Linux

Slide 11

Agenda

Software AG, the XML Company

Mixed revenue model

Services trends

Open Standards versus Open Source

Testing Open Source

Slide 12

What Our Worldwide Customers Expect

“Protect mainframe investments”

“Integrate business processes”

“Cost savings”“Single Customer View”

“Integration for real-time information”

Slide 13

TransformationRouting

Messaging

StorageIndexing

Querying

Data Dictionary

Business TermsBusiness TermsUsers & Roles

Service Registry

Aggregation

Filters

Distribution

Other

CustomersCustomers SuppliersSuppliers PartnersPartners EmployeesEmployees UsersUsers

XML / Web Service Interfaces

Enterprise Communication

Today’s Customer Requirements Business view: Service Oriented Architecture (SOA)

ERP CRM SCM

B2B Communication

Mainframe

Legacy Integration Adapters

ProcessDesign

ProcessDocumentation

Business Process

Rules

ProcessFlow

ProcessMonitoring

Application Services

Information Services

Process Services

Custom

Metadata

Enterprise Services

Business Data

Business Functions

EAIEAI

EIIEII

BPMBPM

Slide 14

Service trend

People do not want a fragmented view of (customers/partners/suppliers) from different heterogeneous systems (ERP, CRM, B2B, B2C, SCM, Call Center…)

People want adaptable solutions to their business needs

People want customization and services to integrate components, commercial and open source (the best mix)

People can’t accept (anymore) to give it all to a sole IT vendor: budgets are tight, cost cutting, strategic independence, negotiating leverage, plus… it does not work with just 1 supplier !

Slide 15

Agenda

Software AG, the XML Company

Mixed revenue model

Services trends

Open standards versus Open Source

Testing Open Source

Slide 16

Open Standards versus Open Source

Distinguishing Open Standards and Open Source

People demand Open standards in order to: guarantee information perenity Interoperability avoid vendor lock in maintain low costs  

Open Standards: Formal bodies, international, industry consensus W3C, CEN, ETSI, ISO, IETF, IEEE, … Outcome : royalty – free consensus specifications, prototype

demonstration

Slide 17

Open Standards versus Open Source

Open Source: Informal initiatives. Sometimes solid industry backing. Main successes: Apache, Linux, Open Office, JBoss, MySQL, Eclipse… Business model (if any):

Give source, sell service Joint development saves R&D costs Generate goodwill/marketing image by contributing

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Benefits from Open Source

Overall Benefit to Industry Open Source complements Open Standards Network effect from rapid dissemination of new technology Build consensus on best practices Commodity infrastructure allows companies to focus on their

areas of real expertise and differentiation

Benefits to Software AG (Services) Build flexible & more competitive solutions Customers demand Lower cost of products -> increase sales of services

Benefits to Software AG (R&D) Benchmark our products vis à vis Open Source products Contribute -> get support from developers

Slide 19

Software AG involvement

Active Contribution to Open Source Projects SAXON XSLT/XQuery Processor (Michael Kay) Jakarta-Slide (4 people) WEBDAV API Software AG – Novell: SuSE + Tamino + Novell sw

Industry Standards Committees W3C XQuery (Walter Waterfeld, Thorsten Fiebig ) W3C XSLT (Michael Kay) W3C SOAP and WSDL (Dietmar Gaertner, Mike Champion) W3C Web Services Architecture (Mike Champion) JSR 170 Repository API (Juergen Pill) IETF WebDAV DASL (Martin Wallmer)

Slide 20

Agenda

Software AG, the XML Company

Mixed revenue model

Services trends

Open standards versus Open Source

Testing Open Source

Slide 21

Testing

Testing process, organization.

Standards - compliant products

Not just open source !

Also commercial products

Questions?

Comments?

Thank you !

chandra.de_keyser@softwareag.com+32 494 632300