TECHNOLOGY PLATFORM STRATEGY

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1 TECHNOLOGY PLATFORM STRATEGY Dr. Wolfram Jost CTO and Member of the Executive Board UBS Technology One-on-One Conference 2018 March 7, 2018

2 SAFE-HARBOR-STATEMENT This presentation includes forward-looking statements based on the beliefs of Software AG management. Such statements reflect current views of Software AG with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially from those projected here, due to factors including changes in general economic and business conditions, changes in currency exchange, the introduction of competing products, lack of market acceptance of new products, services or technologies and changes in business strategy. Software AG does not intend or assume any obligation to update these forward-looking statements. This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other way securities of Software AG or any of the companies that are members of the Group at present or in the future, nor does it form part of such an offer and it should not be understood as such. This presentation does not constitute an offer of sale of securities in the United States of America. Securities may not be offered or sold in the United States of America without registration or exemption from registration in accordance with the U.S. Securities Act of 1933 in its currently valid form. 2

3 WHY ARE WE MORE RELEVANT THEN EVER? A Digital Business Technology Platform Is Fundamental To Scaling Digital Business Gartner, October

4 YOUR DIGITAL BUSINESS PLATFORM YOUR DIGITAL FUTURE WITHOUT COMPROMISE BUSINESS & IT TRANSFORMATION ANALYTICS & DECISIONS Streaming Analytics & Artificial Intelligence In-Memory Data powered by TERRACOTTA & APAMA Process Transformation & Management Governance, Risk & Compliance Portfolio Management Enterprise Architecture Management powered by ARIS & ALFABET PROCESS & APPLICATIONS Dynamic Process Automation Low-Code Applications INTEGRATION & API Hybrid Integration API Management DEVICES Device Connectivity Device Management powered by WEBMETHODS powered by WEBMETHODS powered by CUMULOCITY INTERNET OF THINGS CLOUD + HYBRID ON PREMISE 4

5 YOUR DIGITAL BUSINESS PLATFORM YOUR DIGITAL FUTURE WITHOUT COMPROMISE BUSINESS & IT TRANSFORMATION Process Transformation & Management Governance, Risk & Compliance Portfolio Management Enterprise Architecture Management powered by ARIS & ALFABET ANALYTICS & DECISIONS Streaming Analytics & Artificial Intelligence In-Memory Data Integrated PROCESS Set & APPLICATIONS of singlefunction PaaS Dynamic Process Automation Low-Code Applications INTEGRATION Reduced & API Complexity Hybrid Integration Economies of Scale API Continuous Management User Experience DEVICES Device Connectivity Device Management MegaPaas powered by TERRACOTTA & APAMA powered by WEBMETHODS powered by WEBMETHODS powered by CUMULOCITY INTERNET OF THINGS CLOUD + HYBRID ON PREMISE 5

6 PLATFORM VS PACKAGED APPLICATION Packaged Applications Digital Platform Applications Application User Interface Process logic Task logic Business Logic Decision logic Event logic Analytics logic Integration logic Innovation Built-in, interwoven types of logic: Process logic Analytics logic Task logic Event logic Decision logic Integration logic Process Engine Task Engine Rules Engine Scoring Engine UI Engine Analytics Engine Event Engine Integration Engine Device Engine Platform Container Agnostic, stable 6

7 DIGITAL BUSINESS PLATFORM PaaS PERSPECTIVE Predictive Asset Maintenance Digital Enterprise Twin Supply Chain Efficiency Portfolio management Customer Experience Management Digital Business Applications Process design & analysis Audit & Risk Management Alerts & actions Digital Workplace New Digital Applications Agile Flexible Innovative Differentiating Outcome oriented Low code app development Dashboards & Visual analytics Device management Application integration API portal & gateway Device connectivity Data Sources Process automation Task & work management In-Memory store & compute Predictive analytics Streaming analytics Cloud & Big Data integration ERP PaaS Existing IT Resources Stable Mature Complex Expensive Standardized Software AG. All rights reserved:

8 MEGAPaaS STRATEGY PREVENT UNNECESSARY LOCK-INS Oracle/Microsoft Amazon/Google SAP/Salesforce Software AG SaaS SaaS SaaS SaaS SaaS PaaS PaaS PaaS PaaS IaaS IaaS IaaS IaaS IaaS Full Lock-in No Multi-Cloud IaaS Lock-in SaaS focus SaaS Lock-in Independent No Lock-in 8

9 HOW TO DIFFERENTIATE FROM SINGLEPaaS PROVIDERS SOFTWARE AG AS MEGAPaaS VENDOR Mule, Appian, PTC, Boomi, Tactical Software AG Strategic (long term relationship) Singlefunction Paas Multifunction Paas MegaPaas bpmpaas ipaas ipaas apipaas apipaas apaas bpmpaas IoTPaaS bpopaas eampaas event processing PaaS 9

10 SOFTWARE AG PaaS MARKET RELEVANCE Giants Singlefunction Paas Independent MegaPaas Oracle SAP IBM Microsoft Appian Mule PTC Dell Boomi Full Lock-in modern mainframes Only tactical High Complexity Strategic Independent (SaaS, IaaS) 10

11 CLOUD STRATEGY 11

12 SOFTWARE AG CLOUD CURRENT & FUTURE STATE ARIS Cloud Alfabet Cloud Integration Cloud B2B Cloud 2018 Agile Apps Cloud 2013 API 2017 Cloud IoT Cloud CUMULOCITY 2017 Software AG Cloud ARIS Cloud Agile Apps Cloud Alfabet Cloud API Cloud Integration Cloud IoT Cloud CUMULOCITY B2B Cloud 2018 Aligned positioning Unified user experience Cross-product use-cases Unified hosting platforms and operations Hybrid/migration use-cases 12

13 FUTURE STATE SOFTWARE AG CLOUD Low-touch entry from microsites Applications > Integration Configure Platform apps Software AG solutions Partner solutions First name Last name Company Country Start free trial Integration Powered by webmethods + Add applications Accounts Users Roles Payment API Gateway Powered by webmethods IoT Cockpit Powered by Cumulocity IoT Devices Powered by Cumulocity LAND EXPAND LPWAN Connector Powered by SigFox Industrial IoT Package Powered by Adamos Explore, discover and add additional capabilities from Software AG and partners 13

14 CUMULOCITY IOT 14

15 CUMULOCITY IOT KEY CAPABILITIES BASED ON FUTUR PROOF TECHNOLOGY Digital Business Platform IoT BUSINESS & IT TRANSFORMATION Business strategy & planning Customer journeys Design & analysis Risk & compliance management Portfolio management Enterprise architecture Process analytics ANALYTICS & DECISIONS PROCESS & APPLICATIONS INTEGRATION & API DEVICES Visual analytics Low code app development API gateway Streaming analytics In-Memory store & compute Dynamic orchestration Mobile enablement Application integration API portal Device management Machine learning Distributed caching Process automation Task & work management Cloud & Big Data integration API & service catalog Device agents Predictive analytics Alerts & actions Case management Rules management Messaging Master data management Device connectivity Edge analytics Event routing & persistence Robotic process automation Content management Mainframe & data integration B2B & managed file transfer Edge services INTERNET OF THINGS SOLUTION ACCELERATORS PROCESS & APPLICATION INTEGRATION & API ANALYTICS & DECISIONS DEVICES Low Process Rules Mobile code app development automation management enablement Cloud API API Application & service Big Data Messaging gateway portal catalog integration Predictive Event Machine Edge Streaming Alerts Distributed In-Memory Visual & routing analytics & learning actions caching store persistence & compute Device Edge management connectivity services agents DEPLOYMENT MODELS CLOUD + HYBRID ON PREMISE all devices, all networks, all verticals, all use cases EDGE 15

16 Vehicle Tracking Industrial IoT Predictive Maintenance Condition Monitoring KEY PLATFORM CAPABILITIES Low-Code App Development Rules Management High-Control App Dev Workflow Automation App Hosting Case & Task Management DEPLOYMENT MODELS Master data management Messaging Visual Analytics Predictive Analytics API Management Application Integration Streaming Analytics Edge Analytics Cloud Integration Big Data Integration Smart Rules Data Storage SOLUTION ACCELERATORS PROCESS & APPLICATIONS INTEGRATION & API ANALYTICS & DECISIONS TRUE MULTI-TENANCY SCALABILITY & HIGH AVAILABILITY CLOUD + HYBRID ON- PREMISES Metering & Billing Device Management Device Agents DEVICES SECURITY Developer SDK & Open APIs Device Connectivity Edge Services all devices, all networks, all verticals, all use cases EDGE 16

17 Connected Applications & Things REAL TIME ANALYTICS APPLIES CONCEPT OF LAMBDA ARCHITECTURE Connect & Integrate Speed Layer ERP CRM Cust Universal Messaging Device, Cloud, Enterprise IT, Production IT Streaming Analytics Analytical storage Context Enrichment In-Memory Store Batch Layer Predictive Model Execution Continuous Learning Serving Layer Foresight Real-time Insight Alerts, Decisions, Actions Real Time Applications Stored Data Batch Analytics Machine Learning Hindsight 17

18 SOFTWARE AG RANKED AS A LEADER THE FORRESTER WAVE : STREAMING ANALYTICS, Q Please access the report via the hyperlink 18

19 DISTRIBUTED IIOT ARCHITECTURE ANALYTICS AT ANY LEVEL IoT Device (Agents) Thin Edge (On-Premises Gateway) Thick Edge (On-Premises Server) Private Cloud (Dedicated) Public Cloud (Shared) 19

20 USE OF MACHINE LEARNING Predictive Analytics Streaming Analytics uses machine learning to allow organizations build models that represent patterns of behavior. operationalizes these models to enable organizations to respond intelligently. 20

21 ADAMOS.COM 21

22 ADAMOS.COM 22 22

23 SOFTWARE SIEMENS MINDSPHERE HEADER OF RELATED PRESS RELEASE FROM NOVEMBER 23, 2017 SIEMENS STRENGTHENS ITS IOT OPERATING SYSTEM MINDSPHERE THROUGH TECHNOLOGY PARTNERSHIP WITH SOFTWARE AG Software AG (Frankfurt TecDAX: SOW) and Siemens AG today announced a partnership to strengthen the presence of the cloud-based open Internet of Things (IoT) operating system MindSphere across industries. MindSphere supports industrial companies in their digital transformation and offers a development platform to a broad customer base where companies can integrate their own applications and services to promote IoT innovations. Software AG brings the highly scalable components of its Digital Business Platform to MindSphere, which help customers to flexibly manage networks of millions of end devices. 23

24 IT AND OT: HEAVY IOT INVESTMENT BUT NO DOMINATION (YET!) IT Vendors OT Vendors 24

25 IT AND OT: HEAVY IOT INVESTMENT BUT NO DOMINATION (YET!) IT Vendors OT Vendors 25

26 ENTERPRISE DIGITAL TWIN 26

27 ENTERPRISE ENTERPRISE DIGITAL TWIN PREPARES YOU FOR THE MARKET BASED DIGITAL TRANSFORMATION Gain greater insight into how assets are contributing to business operations Simulate changes and evaluate the effects Predict, inform, and warn against incurring unnecessary costs or unwisely squandering resources 27

28 PRODUCTS CUSTOMER JOURNEYS ORGANISATION DESIGN YOUR DIGITAL ORGANIZATIONAL TWIN WITH ARIS ENTERPRISE REALITY ENTERPRISE REALITY PROCESSES IT SYSTEMS RISKS 28

29 HYBRID INTEGRATION & API 29

30 HYBRID INTEGRATION DRIVING PERVASIVE CONNECTIVITY SaaS/Cloud Services Things Subsidiaries Hybrid Integration Mobile Apps Business Partners EDW MDM Mart Business Process Networks On-Premises Applications and Data Sources Social Networks 30

31 HYBRID INTEGRATION BI-MODAL CAPABILITIES Citizen Integrators Needs maximum agility Needs option to expand to enterprise class Ad-hoc Developers Shadow IT (LOB IT) Agile execution of LOB projects Power users Bring your own code (Lift and Shift) Packaged as microservices Citizen Integrator Ad-hoc Developer IT Specialist HYBRID INTEGRATION HYBRID INTEGRATION Mode 2 Mode 1 31

32 INTRODUCING WEBMETHODS API CLOUD 32

33 WEBMETHODS API MANAGEMENT PLATFORM API Portal API Gateway API Catalog Define your APIs Manage API lifecycle API governance Impact analysis Promote APIs Document usage Enable registration Community and collaboration Testing Protect your APIs from unregistered usage Protect your backend systems from malicious attacks Monitor and track usage for monetization and product improvement API Consumption Consume SaaS / PaaS APIs Connectors to SaaS apps Runtime governance policies API consumption governance 33

34 SOFTWARE AG RANKED AS A LEADER THE FORRESTER WAVE : HYBRID INTEGRATION FOR ENTERPRISES, Q Please access the report via the hyperlink 34

35 Robotic Process Automation & Application Development

36 INTEGRATION ORCHESTRATION WORK DYNAMIC APPS INTEGRATED RPA, PROCESS AND CASE MANAGEMENT LOW-CODE DEVELOPMENT AND PROGRAMMING Virtual workforce Hybrid workforce Human workforce New WORK AUTOMATION AND COORDINATION DYNAMIC PROCESS ORCHESTRATION Start Task/Case Task/Case End PREDICTIVE, CLOSED-LOOP ANALYTICS MARKET LEADING INTEGRATION CAPABILITIES Service Service Service Service BACKENDS Adapter Adapter Adapter Adapter SAP CRM DATABASES WEB SHOP 36

37 37

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