Segue Software: Customer Advisory Council October 2729, 2004 San Francisco Marriott

1
Segue SoftwareCustomer Advisory
CouncilOctober 27-29, 2004San Francisco
Marriott
2
Welcome and Update

• Joseph K. KrivickasPresident and CEO

3
Our Journey

• On January 1, 2004
• Segue set out on a JOURNEY
• to transition
• from technology leadership to
• technology AND market
• leadership

4
How Is Our Journey Going?

• Our Listening
• Our Results
• Our Strategic Direction

5
Our Listening

• Customer Advisory Council Launched
• Quarterly Executive Checkpoint Meetings
• SVP of Customer Satisfaction Appointed
• Market Driven 2-Year Product Roadmap

6
Our Results

• 70 increase in stock price
• 21 increase in revenue
• 1.2M of net income in 2004(compared to 800K
  over the last 4 years combined)

7
Our Strategic Direction

• Segue is united around a clear corporate mission
  and strategy
• Segue is transitioning its Silk product family
  from technology leadership to technology and
  market leadership
• Segue has made the strategic decision to not
  compete with adjacent market software vendors

8
Our Journey
We think our Journey of transitioning to
technology and market leadership is off to a good
start

• Our Listening
• Our Results
• Our Strategic Direction

9
Introductions

• André Pino
• Chief Marketing Officer

10
WELCOME!
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Introductions Customers

• eBay
• Jay Hanson
• Nadir Hussain
• David Pride
• Jay Singonahalli
• First Data
• Christopher Reamer
• Guardian Life
• Tim Stoddard
• Hewlett-Packard
• Jean-Rene Branaa

• ACS State Healthcare
• Larry Fortune
• Larry Geisz
• Advent Software
• Chad Owens
• Mike Rayno
• Bank of America
• Fred Chavez
• Russell Davidson
• Bamba NGum
• BMC Software
• Edward Fenska

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Introductions Customers

• Thomson Financial
• Joanne Doscas
• Virgin Mobile/Cymbal
• Chris Brown
• webMethods
• Zia Quraishi
• Wells Fargo
• Byron Ackerman
• Jon Harader

• Macromedia
• Svetlana Kostokova
• PalmSource
• Fabrice Frachon
• PeopleSoft
• Edgar Vasquez
• Sybase
• Gopinath Chandra

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Executive Commitment

• Segue Senior Management
• Joseph Krivickas, President CEO
• André Pino, Chief Marketing Officer
• Joseph Friscia, EVP of Worldwide Sales
• Ernst Ambichl, CTO, Linz
• Peter Piela, VP of Development, Lexington
• Mike Sullivan, Senior VP of Finance

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Segue Personnel

• Product Development
• Ernst Ambichl, CTO
• Peter Piela, VP
• Mike Ruggiero
• Richard Sherrard
• Sales
• Joseph Friscia, EVP
• Rod OReilly
• Chuck Paglico
• Chris Brown
• Marc Hershorin
• Ian Oliner

• Product Marketing
• Chris Belthoff
• Klaus Fellner
• Claire Lima
• Gabriele Zijderveld
• Corporate Marketing
• André Pino, CMO
• Heidi Gilmore
• Suzanne Roy
• Customer Satisfaction
• Wendy Holman, SVP
• Finance
• Mike Sullivan, SVP

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CAC Overview

• Mission of the CAC
• An open and formal platform for mutual benefit
• Communicate information and exchange ideas
• To accelerate, grow and enhance the Segue product
  portfolio
• To do each of these in a spirit of partnership

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CAC Overview

• Significance of the CAC to Segue
• Segues business strategy encompasses
• Profitable revenue growth
• Market-driven product innovation
• Focus on selective partnerships and alliances
• Market-driven product innovation requires a real
  world understanding of our markets and customers

?
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CAC Overview

• Objectives of the CAC
• Discuss industry trends with focus on the most
  critical issues impacting software quality
• Discuss Best Practices for software quality
  optimization
• Identify key product requirements
• Provide a customer point of contact for
  development projects / topics, as appropriate
• Involvement at agreed-upon checkpoints in the
  development process

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CAC Overview

• Benefits CAC Members Receive
• Influence development of product functionality
• Have direct access to Segues senior management
• Advance knowledge of product development plans
• Obtain a preview of upcoming releases
• Share knowledge and experience with other CAC
  members

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CAC Overview

• Commitment from CAC Members
• Must be willing to commit to a term of 12-18
  months
• Participate in all relevant review meetings
• Participate in conference calls, when necessary
• Review development deliverables and provide
  feedback
• Hold all materials and design documents in strict
  confidence

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Agenda

• Thursday, October 28
• 900 am Welcome, Joseph Krivickas Sierra A
• 915 am Introductions, Andre Pino Sierra A
• 950 am Business Overview, Joe Friscia Sierra
  A
• 1000 am Judith Hurwitz, Hurwitz
  Associates Sierra A
• 1045 am Break
• 1100 am Trends in the ASQ Industry Sierra A
• 1145 am Product Road Map Lifecycle Sierra A
• 1245 am Lunch Sierra B

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Agenda

• Thursday, October 28 (cont)
• 200 pm Product Break-Out Sessions Sierra E,
  F
• 400 pm Break Sierra E, F
• 415 pm Customer Presentation Sierra A
  Chris Brown, Cymbal / Virgin
  Mobile
• 445 pm Wrap-Up Sierra A
• 530 pm Meet in Front Lobby/Dinner Cruise

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Housekeeping Notes

• FYI Fast Facts
• Suzanne Roy is Segues event manager
• Parking vouchers
• In-room beverage service
• High speed Internet access in rooms
• Wireless Internet access in Sierra F
• Executive One-on-Ones sign up sheet in Sierra A
  (Friday am)
• Hotel smoking policy
• Restroom locations
• Signed non-disclosures to Heidi Gilmore

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Business Overview
Joseph FrisciaExecutive VP of Sales
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Segue Software Is Committed To Its Customers

• Outstanding customer service
• Technological innovation
• Consistent profitability
• Value-add partnerships
• Excellent people

Wendy Holman appointed SVP of Customer
Satisfaction
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Our Market Focus
Application Monitoring
Automated Software Quality
Network Systems Management
Code-Level Diagnostics
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Our Company Vision
The Six Sigma quality standard will be pushed to
the Software Application Lifecycle (SAL)
Segue will be the Six Sigma quality
optimization solution for the software
application lifecycle (SAL)
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Segues Mission
Enable businesses to have defect-free
software We will accomplish this by being the
global leader in providing Software Quality
Optimization solutions that application
quality across the Software Application Lifecycle
(SAL)

• Define
• Measure
• Manage and
• Maintain

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What is Software Quality Optimization?

• Software Quality Optimization Includes
• Optimum test coverage
• Easy to maintain and update
• Maximum test executions
• Early detection of defects
• Rapid repair
• Application integrity

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Segues Three Prong Strategy

• PROTECT our technology leadership position by
  continuing to develop a strong family of
  best-in-breed tools that are tightly integrated

• EXPAND our presence in existing markets and enter
  new markets (e.g. packaged applications,
  application monitoring) through selective
  technology and business alliances

• INNOVATE our family of tools into a platform from
  which specialized QM solutions can be easily
  developed by ourselves, our customers, or our
  partners

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2004 A Very Good Year!
Customer Service New Names Renewal
Rate Revenue Profitability
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Summary

• Thank you for your business and continued
  support!
• From all of us at Segue

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Product Roadmap and Product Life CycleErnst
AmbichlCTO, Linz Development LabChristopher
BelthoffSenior Director, Product Marketing
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Regulation Fair Disclosure

• Confidential Information
• Information disseminated this week is privileged,
  Segue-confidential information and not for public
  disclosure
• Confidential information given to CAC members is
  provided under NDA
• Please be sure you have turned in your signed NDA

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Agenda

• Segues Corporate Strategy
• Problems of Traditional QA Approaches
• SilkCentral QOP a Lifecycle Approach to Quality
• Benefits of SilkCentral QOP
• SilkCentral Architecture
• Two Year Product Roadmap

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Segues Corporate Strategy

• PROTECT our technology leadership position by
  continuing to develop a strong family of
  best-in-breed tools that are tightly integrated

• INNOVATE our family of tools into a platform from
  which specialized QM solutions can be easily
  developed by ourselves, our customers, or our
  partners

• EXPAND our presence in existing markets and enter
  new markets through selective technology and
  business alliances

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Problems With Traditional QA Approaches

• No visibility into application status regarding
  quality
• No holistic overall view of application quality
• Divergent views across teams regarding
  application quality
• Isolated islands of QA data
• Quality data exists in multiple repositories and
  formats
• Unable to compare multiple application versions
  in terms of quality
• Unable to compare pre-deployment quality and
  post-deployment quality

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QOP Motivation

• Lifecycle approach to quality needed
• Not sufficient to treat quality as an
  intermediate step taken after development
• Ensure collaboration between the business line
  management, development, quality assurance and IT
  operations organizations

It is vital for AD and Operations to be working
together from the beginning to build quality and
performance into the applications early in the
life cycle. - Gartner
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Benefits of Segues Lifecycle Approach to Quality

• Holistic view on quality data understood by all
  stakeholders
• Business line management, development, quality
  assurance and IT operations organizations
• Measurement of quality across all phases of the
  lifecycle
• Closed-Loop Testing
• Supports heterogeneous environments
• There is no single repository/platform

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SilkCentral Quality Optimization Platform (QOP)

• A comprehensive suite of software applications on
  top of a common architecture
• Based on a common architecture (Silk Common
  Architecture SCA) that provides a robust and
  extensible framework
• Specifically designed to support mission-critical
  applications involving a variety of platforms and
  technologies in global computing environments

• SilkCentral enables SQO across the complete
  lifecycle by
• Defining key quality metrics
• Measuring and managing quality throughout the
  SAL
• Maintaining quality over time

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QOP Provides a Single Dashboard for Quality
Management
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QOP Provides a Single View for Quality Related
Data
Software Application Lifecycle
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Closed-Loop Testing Ensures Feedback of Quality
Information From All Phases of the Lifecycle

• Pre-production
• Unit tests
• Functional tests
• Load tests

• Production
• Active monitoring
• Passive monitoring

IT Mgmt
Covers the entire SoftwareApplication Lifecycle
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QOP Supports Heterogeneous Environments Through
its Open Architecture
QOP Supports Heterogeneous Environments
SilkCentral Quality Optimization Platform
Requirements Management
3rd Party Testing Tools
Change Management
Defect Tracking
NSM Platforms
Diagnostic Tools
IDEs/ Dev. Platforms
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SilkCentral QOP Architecture
SilkCentral Quality Optimization Platform
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Synergy Effects of SilkCentral QOP
Synergy
asdf
asdf
Pre-Deployment
Post-Deployment
Reduce Cost with script reuse Decrease Downtime
with faster fix and recovery speed Achieve
Quality Metricsthrough shared quality goals and
knowledge exchange Satisfy Customersvia end-user
perspective
Service LevelValidation Health
Assessment Failure Prediction Root-Cause Analysis
Test Automation Performance Optimization Service
Level Engineering Production Readiness Failure
Prevention
Software Quality Optimization
Application Development
Operations
Quality Assurance
Performance Assurance
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Wrap-Up Day One
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Joe Ks Survey Follow Up

• We are listening!
• 17 responses
• Three categories
• Roadmap and product strategy
• Product-specific information/interest
• Networking the interpersonal kind!
• Your goals meet the goals we set for the
  conference
• Please be sure to let us know how we are doing in
  mapping to your specific goals

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Housekeeping

• Evaluation Forms
• Included in your packets
• Be sure to fill out today, if you are not coming
  tomorrow
• Will help us to improve future meetings
• Will ensure an ongoing, valuable experience for
  CAC members
• Looking Ahead to Friday
• Starts with a presentation by Fabrice Frachon of
  PalmSource
• Executive one-on-ones still available

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Tonights Dinner Cruise

• BE IN THE FRONT LOBBY AT 530pm
• Guided trolley tour around San Francisco
• Bay cruise around Alcatraz, under the Golden
  Gate
• Dinner choice of swordfish or filet mignon
• Leaving from pier 9 at 600 pm, for anyone who
  wishes to drive and meet us there