I N V E S T M E N T R E S E A R C HCLOUD- SPLOSI ON:A Software Industry Reference Guide Consisting Entirely of Proprietary Research A P R I L 2 0 1 4 Mark MurphySeniorResearchAnalystEnterprise Software415 616 1705mark.r.murphy@pjc.comPinjalim BoraResearchAnalystEnterprise Software415 616 1703pinjalim.x.bora@pjc.com Matt CossResearch AnalystEnterprise Software415 616 1706matthew.j.coss@pjc.com Piper Jaffray does and seeks to do business with companies coveredin its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decisions. This report should be read in conjunction with important disclosure information, including an attestation under Regulation Analyst certification, found at the end of this report or at the following site: http://www.piperjaffray.com/researchdisclosures.

Mark Murphy Senior Analyst Enterprise Software 415 616 1705 mark.r.murphy@pjc.com Pinjalim Bora Research Analyst Enterprise Software 415 616 1703 pinjalim.x.bora@pjc.com Matthew Coss Research Analyst Enterprise Software 415 616 1706 matthew.j.coss@pjc.com C L OUD- S P L OS I ON A Software Industry Reference Guide Consisting Entirely of Proprietary Research Cloud Compendium.This 1,000-page report is designed to infuse your brain with a deep understanding of the software industrys sudden Cloud-driven evolution into a landscape of Dinosaurs and Innovators.Through a proprietary lens straight from the mouths of the resellers and end-users, you can learn why companies including salesforce.com, Workday, VMware, ServiceNow, Box, Cornerstone OnDemand, Microsoft, Amazon, Splunk and Tableau have risen to the top of our rankings in the last two-plus years and how industry feedback has evolved in the last eight quarters. 100% Proprietary.This entire report is 100% proprietary across every single element.We did not copy-and-paste third party content to fill the pages.No charts in this report are sourced from IDC, Gartner or Forrester.All content in this report flows from our vast network of more than 1,000 industry contacts who contribute to our research: CIOs, CTOs, IT Directors, System Integrators, Resellers, Consultants, Outsourcers, HR Managers, Chief Marketing Officers, Database Administrators, Architects, Data Scientists, System Administrators, and of course the end-user customers of the Cloud/software vendors.All of the Surveys and Deep-Dive Interviews were conducted by Piper Jaffray; we did not use third-party survey firms for any content herein. Uncensored, Unfiltered, Unabridged.We present both sides of each argument including bullish and bearish views from partners, resellers and customers.We do not exclude inconvenient viewpoints. It is not just our opinion, but rather, a crowd-sourced view from a broad sample of industry experts, spanning well beyond the borders of our formal coverage list. Fresh Content and Content From the Last Two Years.We present our most recent, never-before-published work and our flow of proprietary work from the last two years.Our most recent work is exemplified by our latest CIO Survey including our deepest look at the impact of Amazon AWS on the software landscape and refreshed view of large-enterprise Cloud Computing plans for 2014 and our full, proprietary survey of 68 Workday customers. Searchability:The PDF version of this report provides the ability to search within a single document for topics of interest both within and beyond our coverage list.For example, OpenStack is mentioned nearly 100 times in this report; Amazon is mentioned >100 times; Mobility is mentioned >150 times; Big Data is mentioned >200 times; Hadoop is mentioned >225 times; Marketing is mentioned >325 times; and Cloud is mentioned >3,000 times. Risks:Economic fluctuations, historically high SaaS valuations, competition, geographic variances, vertical concentration. I N V E S T M E N T R E S E A R C HApril 2014 Piper Jaffray does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm mayhave a conflict of interestthat could affect the objectivity of this report. Investors should consider this report as only a single factor in making theirinvestment decisions. This report should be readin conjunction with important disclosure information, includingan attestation under Regulation Analystcertification, found on pages 1067 - 1070 of this report or at the following site: http://www.piperjaffray.com/researchdisclosures TABLEOFCONTENTS CIO Surveys and Sector Commentary .......................................................................... 3-265 Bazaarvoice, Inc. (BV) ............................................................................................. 267-310 Concur Technologies, Inc. (CNQR) ........................................................................ 311-313 salesforce.com (CRM) ............................................................................................ 314-468 Cornerstone OnDemand, Inc. (CSOD) .................................................................... 469-515 Informatica Corp. (INFA) ....................................................................................... 516-598 Kenexa (KNXA) ..................................................................................................... 599-614 Model N, Inc. (MODN) .......................................................................................... 615-634 NetSuite, Inc. (N) .................................................................................................... 635-673 Oracle Corporation (ORCL) ................................................................................... 674-788 Rally Software Development Corp. (RALY) ............................................................ 789-808 Red Hat, Inc. (RHT) ............................................................................................... 809-864 InContact, Inc. (SAAS) ............................................................................................ 865-893 TIBCO Software, Inc. (TIBX) ................................................................................. 894-931 Ultimate Software Group, Inc. (ULTI) ..................................................................... 932-951 VMware, Inc. (VMW)........................................................................................... 952-1021 Workday, Inc.(WDAY) ...................................................................................... 1022-1066 Important Research Disclosures ........................................................................... 1068-1070

Mark Murphy Senior Analyst Enterprise Software415 616-1705mark.r.murphy@pjc.com Matthew Coss Research Analyst Enterprise Software415 616-1706matthew.j.coss@pjc.com Pinjalim Bora Research Analyst Enterprise Software415 616-1703pinjalim.x.bora@pjc.com C I OS UR V E Y , 4 Q: 2 0 1 3 Legacy Vendor Pain is Cloud Vendor Gain We surveyed 150 CIOs of large and mid-sized organizations responsible for over $91B in annual IT spending to compile a forward-looking analysis of 2014 software spending, winning and losing software vendors, and a snapshot of attitudes toward emerging technology like big data and Amazon Web Services. Our survey filters through hype surrounding threats to established database vendors, examines cloud adoption plans and shows which server OS is taking share. Bottom line: IT spending is expected to increase among the largest organizations in 2014, a change from our prior five surveys, and a potential precursor to an opening spigot of IT spending. Its Raining Money on IT Vendors in 2014. The largest IT budgets are finally ramping into 2014, confirming hopes that capital spending will re-engage. For the first time since we've conducted our CIO survey, budgets of the largest organizations, those with IT budgets >$250M, have improved noticeably (+3.8% for 2014), versus +0.9% one year ago and +2.0% two years ago. Because these large budgets account for 95% of all IT dollars covered by this survey, it is a meaningful metric by which to judge the health of broad IT spending. Top software Vendors Continue Their Reign. In the Oscar Awards for best software vendors, CIOs named VMware, salesforce.com, ServiceNow and Workday (in that order) as the vendors that impress them most with their technology, vision and value add. The order shuffled slightly from the prior year, but reinforces our belief that cloud and cloud infrastructure providers remain among the best innovators and thought leaders in software. You use Amazon to Buy Books, CIOs use Amazon as an IT Infrastructure. We asked CIOs in this survey to tell us their plans for Amazon Web Services (AWS), and if their use of AWS will displace other technologies. Surprisingly, one-third of CIOs were either already using AWS in some capacity (19%), might use it in the future (12%) or are exploring its use (3%). Vendors most frequently displaced by AWS are IBM and HP. Cloud Computing Adoption Evolves Uninterrupted. Amazingly, 45% of CIOs are just starting to look into Cloud Computing, up from 40% last year, suggesting an expanding early-stage market with multi-year high growth potential. 10% of CIOs carry an anti-cloud attitude, flat as compared to last year. Risks: Economic fluctuations, competition, geographic variances, vertical concentration I N V E S T M E N T R E S E A R C HApril 2014 CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|3April2014 I TSPENDI NGI NTENTI ONSANDTRENDSFOR2014 We surveyed 150 CIOs of large and mid-sized organization responsible for more than $91B in annual IT spending to provide a unique and proprietary window into spending patterns for large multinational firms. The largest IT budgets are finally ramping into 2014, confirming hopes that capital spending will re-engage. For the first time since we've conducted our CIO survey, budgets of the largest organizations, those with IT budgets >$250M, have improved noticeably (+3.8% for 2014), versus +0.9% one year ago and +2.0% two years ago. Because these large budgets account for 95% of all IT dollars covered by this survey, it is a meaningful metric by which to judge the health of broad IT spending. Our CIO survey work has been highly predictive in the past; one year ago we called out the very lackluster IT spending plans for very large organizations, and a very disappointing first half ensued for the largest traditional IT vendors. In our midyear survey we noted a very subtle uptick. For our current survey, IT budgets greater than $50M (n=60) are set to grow 3.7% in 2014 - up from 2.8% in our survey one year ago. For IT budgets greater than $250M (n=36), budgets are set to grow 3.8% in 2014, up from 0.9% in our survey one year ago. To be clear, in a very good year or a recovery year, we think IT budget growth would reach a level closer to mid/high single digits. We are still a long way off from that level of exuberance, but strong progress has finally been made in our year-end CIO survey. IT Spending Aggressiveness remains highly consistent, if not slightly better than, prior surveys. Exhibit 1I TBUDGETOUTLOOK, FI LTEREDBYBUDGETSI ZE Q4:11 Q2:12 Q4:12 Q2:13 Q4:13All Respondents +3.1% +2.6% +4.0% +3.1% +4.2%Sample Size 109 105 135 141 150IT Budgets >$50M +3.0% +1.2% +2.8% +2.3% +3.7%Sample Size 38 42 52 56 60IT Budgets >$250M +2.0% +1.4% +0.9% +1.5% +3.8%Sample Size 21 27 30 36 36IT Spending Aggressiveness (1-10) 6.1 6.1 6.3 6.2 6.4Source: Piper Jaffray Research Key Takeaways from the Chart Above CIO Surveys 4|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 TOPSHAREGAI NERSANDLOSERSFOR2014 We asked 150 CIOs to consider 18 key software vendors and quantify their expected spending trend for each vendor in 2014. The percentage of CIOs already using these software vendors, or market penetration, is measured by the x-axis. Therefore, companies to the right are highly penetrated, and companies to the left are much less penetrated. Growth should be considered along with penetration: Workday (WDAY) enjoys low penetration and the strongest spending growth, while VMware (VMW) and Microsoft (MSFT) are deeply penetrated. Vendors with the strongest feedback (i.e., best mix of installed base spending increases and runway for penetration) include Workday (WDAY), ServiceNow (NOW), and salesforce.com (CRM). The weakest spending plans for 2014 include TIBCO (TIBX), Infor, and CA. Consistent with our prior surveys, the strongest spending increases are being directed to Cloud and Cloud infrastructure providers, underscoring the long-term attractiveness of high-quality investments in this space Exhibit 2PROJ ECTEDI NSTALLEDBASESPENDI NGGROWTHVS. MARKETPENETRATI ON WorkdayVMwaresalesforce.com ServiceNowMicrosoftNuance OracleCitrixSAPConcurRedHatInformaticaSymantecNetSuiteIBMSoftwareTibcoInforCATechnologies3.0%2.0%1.0%0.0%1.0%2.0%3.0%4.0%0.0% 20.0% 40.0% 60.0% 80.0% 100.0%ProjectedInstalledBaseSpendingGrowthMarketPenetrationWINNERSLOSERSSource: Piper Jaffray Research Key Takeaways from the Chart Above CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|5April2014 The chart above compares the projected installed base spending growth from our latest survey (December 2013) to our survey from June 2013. Vendors with the strongest planned installed base spending include Workday (WDAY), VMware (VMW), salesforce.com (CRM), and ServiceNow (NOW). The weakest spending plans include TIBCO (TIBX), Infor, and CA. Our latest survey results, as it relates to projected installed base spending growth, are consistent with our survey from six months and one year ago, in that spending is being disproportionately directed at cloud computing providers. Exhibit 3PROJ ECTEDI NSTALLEDBASESPENDI NGGROWTHCOMPARI SON( 201 4VS. 201 3 ) 2.6%1.9%1.1%0.8%0.7%0.4%0.2%0.2%0.5%1.2%1.4%1.4%1.9%2.9%3.2%3.3%3.4%3.6%1.4%0.7%0.0%0.8%0.8%0.2%1.8%1.4%0.1%0.8%1.6%1.4%0.7%1.9%5.0%3.1%3.4%4.0% 3.0% 2.0% 1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%CATechnologiesInforTibcoIBMSoftwareNetSuiteSymantecInformaticaRedHatConcurSAPCitrixOracleNuanceMicrosoftServiceNowsalesforce.comVMwareWorkdayProjected2H13InstalledbaseSpendingGrowth(June2013) Projected2014InstalledbaseSpendingGrowth(Dec2013) Source: Piper Jaffray Research Key Takeaways from the Chart Above CIO Surveys 6|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 This table provides our summary of the notable differences in the data between our December 2013 survey and our June 2013 survey. Workday (WDAY) is the least-penetrated vendor whose share is expected increase, and the opportunity for growth appears more impressive given its installed base spending is expected to increase the most. VMware (VMW) is expected to see a 3.4% increase in its installed based spending growth, an improvement from June. VMware is highly penetrated, however. salesforce.com (CRM) installed base spending growth has improved in each of our last two surveys, although less noticeably in our most recent survey. Conversely TIBCO (TIBX), Infor, and CA performed poorly. Overall, we believe the underlying message from the data is that SaaS, cloud and cloud infrastructure companies with exposure to key growth vectors are positioned to benefit from an increase in CIO mindshare and grow as a percentage of IT budgets. Exhibit 4OBSERVATI ONSONCHANGESFROMJ UNE201 3 CI OSURVEY VednorsMarket Penetrati onProj ected Instal l ed Base Spendi ng Growth Obervati ons on Chagnes Si nce June 2013 CIO SurveyWorkday 14% 3.6% Slight improvement from +3.4% six months agoVMware 96% 3.4% Slight improvement from +3.1% six months agosal esforce.com 46% 3.3% Slight improvement from +3.1% six months agoServi ceNow 26% 3.2% Down from +5.0% six months ago, but still robustMi crosoft 99% 2.9% Noti ceabl e i mprovement from +1.9% si x months agoNuance 21% 1.9% Noti ceabl e i mprovement from +0.7% si x months agoOracl e 80% 1.4% Consistent with +1.4% six months agoCi tri x 81% 1.4% Slight downtick from +1.6% six months agoSAP 47% 1.2% Improvement from +0.8% six months agoConcur 33% 0.5% Slight improvement from +0.1% six months agoRed Hat 52% 0.2% Down from +1.4% six months ago.Informati ca 21% -0.2% Noti ceabl e i mprovement from -1.8% si x months agoSymantec 69% -0.4% Downtick from +0.2% six months agoNetSui te 14% -0.7% Down from from +0.8% six months agoIBM Software 66% -0.8% Down from +0.8% si x months agoTi bco 9% -1.1% Down from 0.0% si x months agoInfor 14% -1.9% Down from -0.7% si x months agoCA Technol ogi es 38% -2.6% Down from -1.4% si x months agoSource: Piper Jaffray Research Key Takeaways from the Chart Above CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|7April2014 The chart above provides a rapid way to visually determine the direction of spending by CIOs on each of the vendors we asked the CIOs to evaluate. However the data is dissected, the message is clear IT spending is being disproportionately directed at cloud computing providers. Exhibit 5DI RECTI ONALSPENDI NGPLANSPERVENDOR( SAMPLESI ZEOFI NSTALLEDBASEI S DI FFERENTFOREACHVENDOR) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%InforCATechnologiesNetSuiteTibcoConcurIBMSoftwareSymantecInformaticaRedHatSAPOracleNuanceCitrixWorkdaysalesforce.comMicrosoftServiceNowVMwareIncreaseSpending MaintainSpending ReduceSpending Source: Piper Jaffray Research Key Takeaways from the Chart Above CIO Surveys 8|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 The chart above shows the raw data and methodology behind determining market penetration and projected installed base spending growth. Note that market penetration, and thus the installed-base sample size, varies widely from vendor to vendor. Exhibit 6PROJ ECTEDI NSTALLEDBASESPENDI NGGROWTH( RAWDATA) VendorsWe Do Not / Wi l lNot Use Thi s VendorREDUCE Spendi ng By >10%REDUCE Spendi ng By 0-10%MAINTAIN Consi stent Spendi ngINCREASE Spendi ng by 0-10%INCREASE Spendi ng by >10%Market Penetrati onInstal l ed Base (# of respondents)Proj ected Instal l ed Base Spendi ng GrowthWorkday 86% 0% 0% 8% 4% 2% 14.0% 21 3.6%VMware 4% 2% 3% 41% 37% 13% 96.0% 144 3.4%sal esforce.com 54% 1% 1% 24% 13% 7% 46.0% 69 3.3%Servi ceNow 74% 1% 1% 11% 10% 3% 26.0% 39 3.2%Mi crosoft 1% 3% 5% 48% 31% 13% 99.3% 149 2.9%Nuance 79% 1% 1% 13% 5% 2% 21.3% 32 1.9%Oracl e 20% 5% 5% 46% 15% 9% 80.0% 120 1.4%Ci tri x 19% 5% 5% 41% 25% 5% 80.7% 121 1.4%SAP 53% 3% 3% 28% 9% 5% 47.3% 71 1.2%Concur 67% 1% 4% 23% 3% 2% 33.3% 50 0.5%Red Hat 48% 2% 5% 33% 11% 1% 52.0% 78 0.2%Informati ca 79% 3% 3% 11% 2% 3% 20.7% 31 -0.2%Symantec 31% 5% 6% 47% 11% 1% 69.3% 104 -0.4%NetSui te 86% 1% 1% 9% 1% 1% 14.0% 21 -0.7%IBM Software 34% 5% 9% 41% 11% 1% 66.0% 99 -0.8%Ti bco 91% 1% 1% 6% 1% 0% 9.3% 14 -1.1%Infor 86% 2% 1% 10% 1% 0% 14.0% 21 -1.9%CA Technol ogi es 62% 5% 8% 21% 4% 0% 38.0% 57 -2.6% Source: Piper Jaffray Research Key Takeaways from the Chart Above CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|9April2014AMAZONWEBSERVI CES In this section of our CIO survey we attempted to decipher IT spending intentions on IaaS provider Amazon, through its Amazon Web Services (AWS) offering. We dont believe another source yet provides this level of granularity regarding CIO plans for AWS. We asked CIOs, In a few brief sentences, please answer the following:Is your organization increasingly using Amazon Web Services (AWS) and if so, which legacy vendors will lose share of your organization's IT budget as you deploy incremental workloads onto Amazon AWS? More than one-third of CIOs were already using AWS in some capacity (19%), might use it in the future (12%) or are exploring its use (3%). Exhibit 7CI OPLANSFORAMAZONWEBSERVI CES 63%19%12%3%3%0% 10% 20% 30% 40% 50% 60% 70%No/NotusingAWSandhavenoplansYesNotusingAWSbutmightuseinthefutureCurrentlyexploringAWSNoAnswersInafewbriefsentences,pleaseanswerthefollowing:IsyourorganizationincreasinglyusingAmazonWebServices(AWS)andifso,whichlegacyvendorswillloseshareofyourorganization'sITbudgetasyoudeployincrementalworkloadsontoAmazonAWS?Source: Piper Jaffray CIO Survey, December 2013 Key Takeaways from the Chart Above CIO Surveys 10|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 This chart looks at the vendors potentially most vulnerable to share losses if an organization chooses to use AWS. It is not surprising that IBM and HP are the vendors most vulnerable to shares losses. Both of these vendors performed poorly in another area of our CIO survey that asked CIOs which mega-vendor would be most critical to the future of their organization. The chart represents the frequency of vendor mentions when we asked CIOs which legacy vendors will lose share of your organization's IT budget as you deploy incremental workloads onto Amazon AWS? For example, nine CIOs mentioned that IBM would lose share to AWS, and 9/150 = 6%. Exhibit 8CI OPLANSFORAMAZONWEBSERVI CES 6%5%4%4%2%1%1%1%1%1%1%1%1%0% 1% 2% 3% 4% 5% 6% 7%IBMHPDellOracleMicrosoftCiscoVMwareCACSCEMCInfoUSARackspaceSavvisLegacyVendorsExpectedtoloseshareofITBudgettoAmazonAWS Source: Piper Jaffray CIO Survey, December 2013 Key Takeaways from the Chart Above CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|11April2014The next six pages contain the detailed response from CIOs about their plans concerning AWS. Exhibit 9NOTUSI NGAWSANDHAVENOPLANSTODOSO( N=95 ) We do not use Amazon WS No we are not using AWS We have not seriously considered AWS. Not sure it is a good fit for us. Not yet We are not using AWS. No, we are not using Amazon Web Services at all right now. No, we are not using AWS. No No Have not looked at AWS for services.More focused on complete cloud service offerings. We are not using AWS Not using amazon web services No since we plan to outsource the entire infrastructure to a single vendor vs. engage companies like AWS for piece parts of it. We do not use Amazon Web Services. Not using AWS No, they do not meet our security needs and the Fed cloud is too expensive. At this point we are not using AWS and do not currently have any plans to move in this direction. No we are not pursuing due to security and data protection compliance We are not using Amazon Web services (AWS) No Not using AWS or any other cloud development/jhosting. Not using AWS. No, we are hesitant to move to a prominent cloud vendor for security reasons.The cloud services we use are vetted for PCI-DSS and HIPAA compliance. We are not using AWS, and don't have any plans to. Not using AWS Do not use today or plan to use in the future We do not use AWS Not currently using AWS for services. No We are not using, and do not plan to use AWS. Source: Piper Jaffray CIO Survey, December 2013 CIO Surveys 12|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 10NOTUSI NGAWSANDHAVENOPLANSTODOSO, CONTI NUED No at this time We are using AWS for new initiatives around big data.infoUSA will be losing a share of our IT budget. No, we are not using AWS We are not currently using Amazon AWS service. Not really No.Since being company of [redacted], we always stick to either private cloud or captive solutions. We are not using Amazon No No Our organization has not reviewed nor has plans for using Amazon Web Services. We are not using AWS.We have deployed several external web services for our business partners; but we host them internally rather than AWS.We are not sold on the economics of AWS yet. We do not utilize Amazon Web Services today.There are no plans for this in the current forecast. No we are not Not actively using AWS today. We do not use AWS currently Does not apply. We are not increasing the use of AWS.If we were to move more to public services, IBM and Oracle would most likely lose share. No. We are not reviewing Amazon's Web Service at this time. We do not use. No, we are a government (military) hospital so we don't plan on using amazon web services No No. We have not thought about AWS yet Not yet Not using them at all. We do not use Amazon We are not increasing our Amazon Web Services use. We do not use Amazon Web Services No we are not looking to use AWS from Amazon. We are looking at Amazon for DNS services, but are not currently using AWS for any of our solutions. Not used today Not using We are not using AWS. We do not use Amazon Web Services. We are not increasingly using AWS Source: Piper Jaffray CIO Survey, December 2013 CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|13April2014 Exhibit 11NOTUSI NGAWSANDHAVENOPLANSTODOSO, CONTI NUED We are not currently using AWS. We are not using AWS. We do not. We house all data locally. We are not comfortable putting medical information in the cloud. No plans for Amazon web services No. We are not planning to use Amazon AWS in the near future. We are not.Again privacy and cyber threats. Not using AWS at this time. No. We are not using AWS. At this point in time, we can provide the same service at a more economical cost. We've dipped out toes in the water on one very small application that uses AWS...however, its more likely we will move that in-house than to incrementally deploy. We are not using Amazon web services - we need an "in-Canada" solution No We do not use AWS and have no plans to do so. We are not using Amazon Web Services and don't have plans to. No, not using AWS.We tried but their lack of flexibility on contractual language caused us to use competitors of AWS. N/A No, not at this time. Continuing to evaluate these types of services. A vendor that we use for online budgeting tools for our members uses AWS for their product.We rely on them to a certain extent, but we are unlikely to push anything to AWS in the near future. No We are not currently using AWS to replace any legacy vendors at this time. We do utilize some AWS services for development and testing of certain solutions No, plan to deploy our own cloud based platform. N/A No. We are yet to explore AWS We are not using AWS. No plans to use Amazon We do not use. No We will not be using Amazon Web Services. We currently do not use AWS. Have not, as yet, used AWS. Source: Piper Jaffray CIO Survey, December 2013 CIO Surveys 14|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 12YES, WEAREUSI NGAWS( N=29) Yes, increasing using Amazon Web Services. IBM & CA will lose share of its usage for the organization AWS is used by our companies and will continue to be used for surge and non-sensitive business applications. We are only using AWS in a small way. Going forward AWS will replace many of the in-house Oracle Unix systems in use. Yes but for new product development so no loss in current legacy vendor share. Yes! IBM, Cisco and Dell Yes. We are putting more collaborative project to the Amazon Cloud We are looking to potentially expand AWS for our web services and potentially interconnectivity of health information exchanges. We have migrated our hosted Internet web sites from GoDaddy to Amazon in the last few years.We are extremely pleased with Amazon and we will look to use Amazon first for any service which our company can move to the cloud. IBM will lose to Amazon, Rackspace and Google We are increasing our AWS foot-hold. Internal servers and storage will lose out. Yes for Amazon AWS, lost will be internal support in our datacenters. Yes, we are utilizing AWS more and more for our primary web site and micro-sites.Rackspace would potentially lose business from us, although they have been an excellent vendor and have similar offerings. Yes we are seeing more usage on AWS. Legacy vendors loosing share here would be IBM, Oracle, Dell. Our use of AWS will remain the same. Yes, AWS will host one of our new applications in 2014.Windows in our private cloud will lose share as a result. Very sparingly for client related activities Yes, but for new services. Yes, Oracle, IBM We are considering AWS for some of our servers -- vendors that would lose share would include HP and Cisco We are using AWS for some internal operations related to service of our products by our dealers. We dont anticipate moving away from other vendors, rather we will move services from internally manage to AWS. We are increasing our use of Amazon web services, but mostly for new initiatives.This is taking the place of purchases that would have gone to HP primarily, though also some IBM and Dell. AWS is used to supplement Verizon's Cloud-based solutions offered to our customers. The following orgs will lose their share as we rely more on AWS: Savvis, Dell Yes, as a replacement for infrastructure and storage. In-house capability will shift to AWS. We're heavily invested in AWS and plan to remain so. Yes-we currently use AWS for R&D work. Usage is growing at a decent pace.HP is losing share Yes, we are employing AWS in conjunction with our VMWare-based private cloud for bursty, resource intensive processing needs such as image rendering. Yes, increasing using Amazon Web Services. IBM & CA will lose share of its usage for the organization Source: Piper Jaffray CIO Survey, December 2013 CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|15April2014 Exhibit 13WEARENOTUSI NGAWSBUTMI GHTI NTHEFUTURE( N=1 8) We are looking to migrate some services to AWS, particularly on-premises web servers that are primarily used globally rather than internally. We have not used AWS yet. We would look at using it for corporate services. So it would displace some Microsoft and HP share of the budget. We are interested. We are not currently using this service from Amazon, however, as we get more systems into cloud models and technologies, we hope this will provide greater ability to leverage other cloud providers such as Amazon. We are not currently using these services, however in the future we will consider where appropriate. I do not think any vendor will lose a share of the budget as some core components will always stay in house.Hardware will not be eliminated although loads on the VMware platform will be alleviated. We do not use Amazon today but plan to in 2014. We are not currently using Amazon Web Services (AWS), however we have commissioned a small team for 2014 that will be looking into the potential to leverage Amazon's offerings.In particular, we're looking at these in relation to ecommerce and big data. We are not using it yet but are keeping an eye on it and test it (inside IT) We have not used AWS, but may in the future. We are learning about this now. We are not currently using AWS, but it is likely they will be adopted in the next fiscal year.IBM and Oracle will lose more of the budget as we make that transition. Not currently but we are taking a wait and see approach to follow larger intelligence community leaders into this trade space. If we can truly leverage commercial cloud services such as AWS, HP will be the big loser for us over time as they provide our SAN technology. We are currently not using AWS. However, we do plan to experiment with their service offerings in the future and compare them to other players in the market. Eventually our spend will shift away from traditional server hardware providers - HP, Dell. We are exploring this as a viable option for future expansion. We have not used AWS, but will explore in 2014 as we develop our DR Plan. No, we are not using AWS but this may be an option in the future. I don't believe we are using them yet, but have looked into it. We are not using AWS but should be investigating.At this time healthcare regulatory changes are our primary focus. We do not use Amazon Web services, but is part of the current evaluation. Source: Piper Jaffray CIO Survey, December 2013 Exhibit 14WEAREEXPLORI NGAWS( N=4) We have a pilot with AWS.EMC and CSC will lose share. We are testing with AWS, but no decision to move that direction yet.If we did, IBM/HP would lose share. Piloting today could take share from Microsoft, Oracle. Currently exploring AWS. Source: Piper Jaffray CIO Survey, December 2013 CIO Surveys 16|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 STANDOUTSOFTWAREVENDORS We asked each CIO to name two or three standout small or mid-sized software vendors that are impressing them with their technology, vision, and value-add to their organizations. We asked each CIO to name two or three standout small or mid-sized software vendors that are impressing them with their technology, vision, and value-add to their organizations. Rather than providing a predetermined list of companies, the question was open-ended, so that CIOs could mention any vendor that came to mind. In total, 354 vendors were mentioned: 42 vendors received multiple mentions, and 211 others received a single mention. In particular, nine companies scored particularly high marks Exhibit 15CI OSURVEY( 4Q201 3) STANDOUTSMALLORMI D- SI ZEDSOFTWAREVENDORS ( MENTI ONEDBYTWOORMORERESPONDENTS) 8.7%6.7%6.0%5.3%4.0%3.3%3.3%3.3%3.3%2.7%2.7%2.0%2.0%2.0%2.0%2.0%2.0%2.0%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%1.3%0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%VMwaresalesforce.comServiceNowWorkdayOracle(PeopleSoft,RightNow)AmazonBox,Inc.CitrixTableauDell(Boomi,AppAssure)IBM(MaaS360)AccellosAirwatchMobileIronNuanceRackspaceSplunkVeeamApptioBeyondTrustBroalaCiscoCloudVolumesEMCGFIGnetGroupGoodJDAJuniperLogRythmMendixMicrosoftMicroStrategyMimecastNasuniNexentaOktaPerceptiveSoftwareProgressSoftwareSitecoreTeklaWhiteHatSecurityPleasename2or3standoutSMALLorMIDsizedSOFTWAREVENDORSthatareimpressingyouwiththeirtechnology,vision,andvalueaddtoyourorganization.Source: Piper Jaffray Research Key Takeaways from the Chart Above CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|17April2014in the "Software Oscars": VMware, salesforce.com, ServiceNow, Workday, Oracle, Amazon, Box, Citrix, and Tableau. VMware, as the number one standout vendor, repeated this feat for the third time. Some shuffling of the other top vendors took place, with salesforce.com at #2, ServiceNow at #3 and Workday at #4. This compares to last year's survey which saw VMware in the top spot, followed by ServiceNow, Workday, AirWatch (acquired by VMware after this survey question was published), and salesforce.com. We believe cloud and cloud infrastructure providers remain among the best innovators and thought leaders in software. The results offer a proprietary, real-time window into the winds of change which we believe are transforming the tech industry into a landscape of innovators and dinosaurs. 1) The Cloud boom is evident in mentions for CRM, NOW, WDAY, AMZN, RALY, ServiceMax, SugarCRM, Xactly, ZenDesk, ULTI, RHT and others. 2) Big Data prioritization is visible in mentions for DATA, SPLK, MSTR, INFA, QLIK, MongoDB and Hadoop. 3) Mobility becomes tangible via mentions for Good, AirWatch, MobileIron, Mendix etc. 4) Security modernization is revealed by mentions for LogRhythm, Broala, BeyondTrust, Okta, ThreatMetrix, and AlienVault; 5) Next-Gen Storage is represented by mentions for EMC, Box, Dropbox, Nasuni, Nexenta and others. CIO Surveys 18|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 16STANDOUTSMALLORMI D- SI ZEDSOFTWAREVENDORS( MENTI ONEDBYTWOORMORE RESPONDENTS) Company#ofMentions %ofCIOswhoMentionedDescriptionVMware 13 8.7% LeaderinVirtualizationandcloudinfrastructuresalesforce.com 10 6.7% LeaderinCustomerRelationshipManagement(SaaS)ServiceNow 9 6.0% ITServicemanagement(SaaS)companyWorkday 8 5.3% HRInformationSystem&ERP(SaaS)companyOracle(PeopleSoft,RightNow) 6 4.0% AdatabaseandapplicationscompanyAmazon 5 3.3% World'sLargesteCommerceRetailer,AWSBox,Inc. 5 3.3% OnlinefilesharingandCloudcontentmanagementservicevendorCitrix 5 3.3% DesktopandservervirtualizationcompanyTableau 5 3.3% AwardwinningbusinessintelligencesoftwareDell(Boomi,AppAssure) 4 2.7% AcomputertechnologycompanyIBM(MaaS360) 4 2.7% AcomputertechnologyandconsultingcompanyAccellos 3 2.0% LeadingsupplychainexecutionsoftwarecompanyAirwatch3 2.0%MobilitySolutions(MobileDeviceManagement,MobileApplicationManagement,MobileContentManagement)vendorMobileIron3 2.0%Leaderinsecurityandmanagementformobileapps,documents,anddevicesNuance 3 2.0% SpeechrecognitionandimagingapplicationscompanyRackspace 3 2.0% IThostingproviderSplunk 3 2.0% OperationalintelligencesoftwarevendorVeeam 3 2.0% VirtualinfrastructuremanagementanddataprotectioncompanyApptio 2 1.3% Technologybusinessmanagement(SaaS)companyBeyondTrust 2 1.3% IdentityandvulnerabilitymanagementsolutionsBroala 2 1.3% PowerfulnetworkanalysisplatformCisco 2 1.3% WorldwideleaderinnetworkingsolutionsCloudVolumes 2 1.3% ManagementsolutionsforonandoffpremiseapplicationsEMC 2 1.3% LeaderinstoragesolutionsGFI 2 1.3%ITsoftwareandhostedsecurityservicesGnetGroup 2 1.3% ProjectbasedBIGood 2 1.3% EnterprisemobilityplatformJDA 2 1.3% Supplychainmanagement,merchandisingandpricingsolutionsJuniper 2 1.3% NetworkingequipmentproviderLogRythm 2 1.3% Securityinformationandeventmanagement(SIEM)ITplatformMendix 2 1.3% PlatformforbuildinganddeliveringmobileandwebappsMicrosoft 2 1.3% World'slargestsoftwarecompanyMicroStrategy 2 1.3% ABusinessIntelligence(BI)softwarevendorMimecast 2 1.3% Unifiedemailmanagement(SaaS)Nasuni 2 1.3% StorageInfrastructureasaService(IaaS)Nexenta 2 1.3% SoftwaredefinedstoragecompanyOkta 2 1.3% IdentitymanagementPerceptiveSoftware 2 1.3% EnterprisecontentandbusinessprocessmanagementProgressSoftware2 1.3%Simplifiesthedevelopment,deploymentandmanagementofbusinessapplicationsSitecore 2 1.3% CustomerexperiencemanagementplatformTekla2 1.3%Producesinformationmodelingsoftwareforconstruction,energyandinfrastructureindustries.WhiteHatSecurity 2 1.3% Websitesecurity Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|19April2014 Exhibit 17CI OSURVEY( 4Q201 2) STANDOUTSMALLORMI D- SI ZEDSOFTWAREVENDORS ( MENTI ONEDBYTWOORMORERESPONDENTS) 7.4%5.9%5.9%4.4%3.7%3.0%3.0%3.0%2.2%2.2%2.2%2.2%2.2%2.2%2.2%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%1.5%0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%VMwareServiceNowWorkdayAirWatchsalesforce.comBox/Box.comNuanceSymantecArubaDellEpicQlikViewSHISplunkVeeamAdobeAmazonAppleCACitrixGeodesicICCJiveLogRhythmMicroStrategyRuckusWirelessSocialTextSuSETableauZenprisePleasename2or3standoutSMALLorMIDsizedSOFTWAREVENDORSthatareimpressingyouwiththeirtechnology,vision,andvalueaddtoyourorganization. Source: Piper Jaffray Research CIO Surveys 20|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 18STANDOUTSOFTWAREVENDORSRECEI VI NGASI NGLEMENTI ON 1010data32Soft3Par4RSystemsAccountixAcellionActimizeActsoftAditiAdvizeXAkamaiAlienVaultAllscriptsAmCheckAppDynamicsAppleArcadiaArgoArubaNetworksAryakaAscentAssetWorksAtlassianAtomicLearningAtTaskAvatierAxosoftBallyTechnologiesBit9BlackBerryBlackboardBlueBeamSoftwareBluescapeBMCBottomLineCareTechnologyCertifyCertonaCideonClarionDoorCMICCognizantComplianceAssistCompuwareDarktraceDataVoxDropboxDruvaEarthlinkeBaoTechEdicoeGainEktronElumenEmCentrixEpicEPICInformationSolutionsEpicorEricssonEsrieVergeExagridSystemsExitCareFeithSystemsFireEyeFiservFormVerseGeezeoGlobalSCAPEGodelTechGoogleHadoopHCLHealthCatalystHealthOutcomeSciencesHeliocentricHybrisIdentityFinderiFactorImprivataInfologixInformaticaInformationBuildersInfosysInsightSoftwareInsightTechnologiesIntegrationPartnersInteractiveIntelligenceIntershopIntuitIonicSecurityJeffNetJiveJJKellerKendoLawsonLiaisonLIDPLiferayLogFireLogMeInLumentaM*ModalMetalogixMetierMindtreeMirabelTechnologiesMitelMongoDBMoogsoftMortgageFlexMuleSoftNCRNearbuySolutionsNetDocumentsNewRelicNewegg.comNewformaNexGenStorageNicusNimbleStorageNintexNorseNWNOpenbravoOpTierOptimizelyPalantirPaloAltoNetworksPanayaParagonPeopleNetPipelineSoftwarePivotLinkPlexOnlinePlixerPointAlliancePollEverywherePosidexSoftwareProtelPTCQADQlikTechRallySoftwareRedHatRedCloudRepliconRFEXCELRiverbedRiverMeadowRudderSalientSAPSASSavantSeapineSoftwareSecuniaSeeUnityServiceMaxSiemensSiSenseSkeltaSkyFoundrySkyhighNetworksSnapLogicSnapWorksSocrataSoftchoiceSoftwareAGSolsticeMobileSpigitSqrrlSugarCRMSugarSyncTechSmithThinkWiseThreatMetrixTIBCOTigerDirectTix.comTOATRACSYSTEMSTribalTricensionTripwireTriumfantTrouxUltimateSoftwareUnideskUnit4UplandUsablenetVaronisVCEVeracodeVericodeVerintVerionONEVidyoVMLVMTurboWescomResourcesGroupWhatsUpGoldWileyWolframResearchXactlyZebraZenDeskZertoZiftenZirmed Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|21April2014CLOUDADOPTI ONPLANS We asked 150 CIOs to describe how their organization's Cloud Computing approach will evolve during 2014. We also posed this question a year ago. Amazingly, 45% of CIOs are just starting to look into Cloud Computing up from 40% last year, suggesting an expanding early-stage market with multi-year high growth potential. 10% of CIOs carry an anti-cloud attitude, flat as compared to last year. For 2014, several shifts are emerging: 1) increasingly, companies are referring to a "Cloud First" approach to IT services; 2) CIOs mention more cloud replacement of legacy apps; 3) aggressiveness and intensity of Cloud efforts are on the upswing; and 4) companies refer to a higher number of private cloud initiatives as compared to last year. We believe the eight pages of proprietary feedback in this document clearly depict the rapid evolution of cloud computing as a secure, reliable, cost-effective IT delivery platform. See the next seven pages for detailed responses. CIO Surveys 22|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 19DETAI LEDCOMMENTS: DEVELOPI NGACLOUDCOMPUTI NGSTRATEGY/ PI LOTPHASE (68 Responses = 45% of Total) We will explore what are the new options and new opportunities to reduce spend and increase value for money through Cloud Computing. We are currently selecting a managed hosting provider so that we can move parts of our datacenter into the "cloud". We are getting closer to making our decision. We are also going with Office365 [and] Kronos Cloud based service. We are looking for other opportunities to move more stuff into the cloud. Price will dictate our pace. We plan to add Cloud services as an approved vendor selection with a few named Cloud providers vetted, contracted and offered to our BU's as certified global providers. Actively evaluating cloud solutions for Enterprise Applications, Storage, and VDI/MDM solutions. We are continually looking for opportunities to move from on-premise, legacy systems and take advantage of cloud resources. In 2014, we will be looking at a number of applications including Applicant Tracking, E-mail, and client backup. Working to cloud-enable legacy applications as well as move standard services like email to the cloud. Move to the cloud aggressively. We are moving to a strategy of always considering Cloud computing for any new initiative and must articulate why a cloud solution will not work in lieu of a non-cloud solution. 2014 will be about maintaining existing and planning for replacement of legacy applications. Maybe a little movement to cloud but more likely to see momentum in the 2015/2016 time frame. We are looking at the cloud but have not committed to going that way as of yet. We will start embracing Cloud Computing more in 2014. A number of solutions are now being offered in Cloud and we are looking to evaluate them more in 2014. We will be implementing some components of our core systems in a cloud environment.As we complete each phase and evaluate the performance and compliance capabilities we will be expanding the use of cloud services into some of the commodity platforms. Several pilot projects with an initiative to move to Office 365, initially for email perhaps the Office suite, TBD. Slowly, there is still a concern about security. We are moving our collaborative projects into the cloud. Cloud computing services are expanding to include integration components.Each opportunity for new solutions includes evaluation of SaaS offerings.Focus is to push services to cloud for low value services. Two pilots underway.Expect to implement significant Cloud strategy in 2014. We are considering use of the cloud and taking it slowly. Only test areas will be developed and used in 2014. Otherwise, use of the cloud outside the firm's firewalls is very limited. We will complete implementation of Office 365, outsource most infrastructure services and increase the use of cloud web, video and audio conferencing. We will continue evaluating external cloud solutions while maintaining internal cloud solutions (i.e. no growth on internal anticipated). Currently we do very little cloud computing. In 2014 we will be looking at the security and privacy concerns surrounding this area. We plan to make small incremental advances into the world of Cloud Computing once we better understand the risks. We are driving most storage and customer facing applications to the cloud. Will try to shift non critical services to public cloud to start with. In course of time others will be tried on private cloud. Based on the performance feedback, critical applications also will be hosted in private cloud ultimately. Cautious, only non-critical apps and typically utilizing encryption. Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|23April2014 Exhibit 20DETAI LEDCOMMENTS: DEVELOPI NGACLOUDCOMPUTI NGSTRATEGY/ PI LOTPHASE,CONT D.(68 Responses = 45% of Total) It is currently part of our strategic plan and has been written in to the 2014 plan to move more towards cloud computing. Testing cloud applications in preparation for mainstreaming. We will continue to explore cloud computing options in two areas:(1) collaboration with customers, vendors & subcontractors, and (2) enterprise storage. We expect to move to the cloud more aggressively than planned in 2014.We will look to move our corporate email to the cloud as well as explore cloud-based ecommerce solutions/hosting. Any new business initiatives will also be reviewed for possible cloud-based solutions versus in-house or home grown. Cloud Computing initiative is a major one for 2014. All services will be moving to Cloud in 2014 for us. Proposing office 365 to the organization as well as web site to azure. We are planning to move more non-core systems into the cloud (e.g. mail, expense software etc.). Because we are required to secure HIPAA, we will review our approach very carefully and only employ Cloud services where it makes sense and can provide the security our organization will require. We have no plans to implement any cloud services in 2014.However, we are open to cloud computing if we have a need to move in that direction. We are developing a private cloud architecture to support our client. We anticipate the design and the equipment to be put toward in 2014 and the services to be available 2015. We will be very carefully and sturdily exploring CLOUD to ensure business benefit at large. We will be phasing this to ensure journey stable. Exploring the DB level with Oracle 12C, pluggable DBs and elastic cloud for application level.DBaaS, using the Multi-tenant architecture to reduce the TCO & increase the ROI. Management of infra, DB & other software reduction by consolidating them on private cloud. Deploy private and public cloud. Move critical services to public cloud We will be using cloud based provider for email archival / storage. Only select departments are being targeted for using cloud computing services, primarily to support data exchange and data warehouse operations. Still reviewing cloud solutions, but we have already implemented a few storage-based solutions. Moderate cloud computing spend in 2014.Focus will be on SaaS over PaaS or IaaS.Cloud applications will not involve sensitive data. Cloud computing is being tested as a point solution for certain departments, but not widely planned for the entire organization. We are taking a very strong look at migrating to Microsoft Office 365 as we true-up our Enterprise Subscription Agreement with Microsoft in 2014. Still working on plan towards gradual transition to cloud platform in 2014. Will start to implement private cloud capabilities as well as look at selective opportunities for public cloud implementations.Many public cloud implementations will be in relation to application service capabilities that we intend to utilize as opposed to hosting internally developed applications on the public cloud. Backup replication & some colocation/relocation & MS Exchange hosting Will be enabling several cloud applications. Source: Piper Jaffray Research CIO Surveys 24|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 21DETAI LEDCOMMENTS: DEVELOPI NGACLOUDCOMPUTI NGSTRATEGY/ PI LOTPHASE,CONT D.(68 Responses = 45% of Total) Over 2014 we will continue to review our options of moving mission critical servers/services to the cloud to, at first, provide potential cold-standby systems, hot standby systems, and then full systems.We will have to grapple with the security (both perceived and actual) of our systems and data being outside our physical control. We have developed a "Cloud First" and "Mobile First" approach to IT services.Accordingly, we have identified three cloud platforms to provide the majority of our business services going forward. We did several pilots in 2013 that were successful.We will continue to expand those uses and initiative a few new ones.We may add a few additional SaaS applications as well.Wide-scale movement to the cloud is still 2+ years away. We are still actively investigating how the cloud services providers are adapting their environments to the needs of healthcare companies.As they certify their compliance with HIPAA, HITECH, and other healthcare requirements, we will look to implement shortly thereafter for some components of our portals. We will leverage more cloud resources in order to decommission legacy infrastructure. This will reduce costs while increasing the availability, capacity, and bandwidth. We will only invest in public cloud offerings that yield same or lower cost than premise solutions. After identifying additional use cases for using the cloud, will plan to expand our knowledge and expertise by performing pilot projects in new areas. We will utilize different tools and different providers to better understand which toolset, platform, etc. works best for our environment - both today and tomorrow. We will continue to virtualize heavily. Opportunistic approach. Go to the cloud where it makes sense. We continue to look for ways to leverage cloud services as a cost savings.Currently moving some of our email to the cloud.Beginning to work more with could-based CRM tools. We are exploring the options for expansion into the cloud within the regulatory envelope we are required to operate inside. Will be using FEDRAMP certified cloud providers as well as internal Department enterprise cloud services. We are assessing cloud solutions for each key system.In 2014 we will move Service Management to the cloud, begin Azure development in the cloud, and consider moving email and document management to the cloud. Will explore in 2014. We will continue to evaluate cloud based applications, infrastructure, and other offerings as rapid deploy, scalable enterprise solutions. As we're a healthcare organization, our adoption of cloud technology will be largely dependent on company's interest in supporting a cloud model. Will definitely move test, dev. and some limited applications to the cloud. The new "preference" is cloud hosted solutions.These should be considered as having an advantage over onsite hosted.The idea is - if enough moves to the cloud, we may start to see the savings in support costs. Currently, exploring cloud options for commodity services such as Messaging, Computing & Storage. A comprehensive approach is yet to evolve. Reviewing options. Expanded use of cloud storage, and pilot of cloud processing. Slowly adopting the cloud, but still have concerns about network impacts. Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|25April2014 Exhibit 22DETAI LEDCOMMENTS: ALREADYEMBRACI NGCLOUD (67 Responses = 45% of Total) We will offer more core services using web-based software that we deploy from our private cloud. We will continue to use some cloud computing software hosted by third parties for non-core activities, or those that do not directly touch our customers. We use SaaS for ERP, NaaS for network. We continue to push for cloud options to reduce costs and expand capability. This is critical to us. We will continue to expand our Cloud presence securely. We will continue to adopt cloud services where it makes either economic sense or provides a better service level than can be delivered through on premise solutions We are already using cloud CAAS and Salesforce and more applications and dev. /test environments will be moving to Cloud during 2014. Our innovation projects will be using cloud very actively. Hybrid Cloud that we currently utilize will remain in place.We continue to evaluate cloud offers for SharePoint & Exchange. We will expand it. We are doing a fair amount in the cloud today and will continue with everything we currently have in the cloud.While I don't see a significant increase in cloud computing in 2014, we will be evaluating the movement of our datacenter to the cloud for consideration in 2015. We are starting to move our data to cloud storage, as well pursuing VDI. Big part of our R&D will develop Cloud Apps for our customers. We continue to move applications to the cloud and hope to have email and our phone system in the cloud in 2014. We are setting up a private cloud and discontinuing our legacy client server storage.All documents within our organization will be moved to the private cloud which is integrated with our Oracle based ERP system. We have several SAAS applications running in the cloud and plan to explore options to locate near line storage requirements there in 2014. We are pushing as fast as possible to move applications to the cloud.As fast as our resource can test, etc.... We are actively embracing cloud solutions and will continue in 2014.Salesforce, Pivotlink are more corporate and global: Sugarsync and Evernote more user based tools. Will continue to grow using cloud and SaaS solutions. We continue to implement cloud-based solutions such as HR and payroll systems. Our Parent Company will provide cloud services. Move from public cloud to a private cloud hosted in our DCs. Our newer projects and applications are cloud based whenever possible. We will be looking for more opportunities to use the cloud for big data endeavors. We will be assessing opportunities to extend our current cloud presence. This will include determining if additional applications should be migrated to the cloud, as well as whether we should alter our mix of cloud-based vendors. We are seeing an ever increasing role of cloud computing both in our internal IT plans as well as plans of our customers. Cloud storage, cloud computing etc. are all trending upwards. We are seeing all our new projects having a cloud focus, in terms of deployment, research and other activities. There is an ongoing debate on alternatives to AWS, such as private clouds or hybrid clouds. We also see Microsoft as a strong alternative, especially as it related to email, and office products through office365 cloud offerings. We have created a separate entity to focus on cloud computing as a service. We already have a private cloud. We are implementing three new purchased applications that will be public cloud based in 2014. Source: Piper Jaffray Research CIO Surveys 26|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 23DETAI LEDCOMMENTS: ALREADYEMBRACI NGCLOUD, CONT D.(67 Responses = 45% of Total) Providing cloud computing services for group companies and dealers in PVT cloud set-up. Remain and enhance our private cloud. Minimal public cloud. Cloud computing is used as another tool in our tool box to support our business lines. Top uses will be taxation, transportation, EDI and procurement. Continuing to build a private cloud environment for my enterprise and sister institutions. We have an active-active internal cloud that we will be morphing into a hybrid cloud for DR and commodity technologies. We are moving our hosted email to the Google Cloud.We are still on the fence if this is the best part to go. We have moved a considerable amount to the cloud already. We will continue to move other services to private cloud services as well as creating our internal enterprise cloud. We have already joined a private cloud for our email, and there are plans to join another one for a SharePoint solution; no plans to implement our own private or public cloud except for a VDI implementation we plan on implementing this calendar year. We are already into cloud computing space from SaaS and IaaS perspective. In 2014, it will move into PaaS. Will continue to move workloads to the cloud. Just really as SAAS. No other cloud initiatives. Already using private cloud as an organization together with some third party cloud apps. We will be investigating further utilization of cloud technology as appropriate during 2014. We are moving more recovery systems to the cloud.More backup and storage.Offsite data storage is a big expense. The use of the Cloud will increase in 2014 in an attempt to minimize the need to purchase additional infrastructure. Currently we are utilizing some cloud services such as WebEx. We will continue to look at the Cloud for these type of services,but that will be the limit in 2014. We are aggressively driving a Cloud Computing Approach across multiple LOBs. Verizon also offers several Cloud Computing Solutions to our customers. The Portfolio of cloud-based solutions is definitely on the rise for 2014. Cloud or SaaS technology is at the cornerstone of our computing approach to enabling the organization. Technology is no longer about the plastic boxes but about business enablement thru technology services. We have virtualized more than 85% of our infrastructure to enable agile and rapid expansion of service delivery when required. 2014 will concentrate on remaining virtualization opportunities. Will continue to drive applications to cloud services wherever possible. We are planning how to implement a cloud-based disaster recovery/business continuity at a third party data center. We have virtualized all of our environments and are ready to implement cloud.Separately, we are offering cloud-based storage to our customers as a reseller/channel partner. Will use JDA Cloud Service for Workforce management, new contract for their services. Continue the use of ADP for payroll. Continue to develop private cloud and looking at a possible hybrid but still very closed.As a bank public cloud continues to give us heart burn. Also we do not trust the vendors with our info. We continue to push as much as we can to the cloud. This includes SaaS applications as well as infrastructure where it makes sense. Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|27April2014 Exhibit 24DETAI LEDCOMMENTS: ALREADYEMBRACI NGCLOUD, CONT D.(67 Responses = 45% of Total) Taking IT Config, Change, Release, Asset Mgmt. to Cloud. We are creating our Own Cloud Platform using Virtual Technology. (VMWare) We are a heavy user of "private cloud" technologies and are integrating "public cloud" resources into our infrastructure as well. More SaaS applications acquired and virtualizations deployed. Implementing one cloud solution. Evaluating prospective vendors, considering Office 365. Need "in-Canada" solution, which reduces field of prospects. We are in the process of migrating our ERP system to a managed services arrangement.More focus has been placed on Private rather than Public cloud.We plan to continue moving in this direction as the industry matures and we have experience. We will continue to expand our use of cloud based systems and technology for point solutions to business opportunities. We'll continue to monitor public cloud services, but won't plan to move more services and data into the cloud until security/privacy concerns are better addressed around liability assumption by 3rd parties and accountability. Much of what we do already exists in a cloud environment.We will continue to evaluate how we can move more of our critical information and infrastructure to the cloud to rely less on in-house staffing and equipment. We are aggressively adopting cloud computing services (ex: CAAS, Salesforce.com, PAAS, and infrastructure as a service) We will expand our use of cloud computing. We are currently moving any possible software to SaaS/Cloud, including our email and storage.We will continue to do so where it makes best sense from both a financial and strategic viewpoint.Our goal is to maximize service while minimizing costs and the cloud is one way to do that. We will continue to migrate certain aspects of our application and capacity infrastructure in a variety of cloud models.From private, to hybrid to pure public as we continue to rationalize our portfolio. We are currently using a private cloud and do not expect any significant changes in 2014. Expect to deliver internally developed cloud based payment processing solutions in 2014. ON-Going..... Not for mission critical applications. We are using Cloud Computing aggressively today and will expand further in 2014. No changes.We are only using Cloud for low risk applications Currently use cloud capabilities for warehousing applications.Investigating increased penetration for other applications. Source: Piper Jaffray Research CIO Surveys 28|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 25DETAI LEDCOMMENTS: ANTI - CLOUDVI EWPOI NT/ NONEAR- TERMADOPTI ONPLANS (15 Responses = 10% of Total) We will reduce the initial plans we had to move to the cloud; and consider on individual application-by-application basis.Where previously we had a full cloud strategy that was not proving its business case. We view cloud computing as just another application offering. It is simply running in a non-company data center. We don't do anything with Cloud computing beyond our email SPAM solution. We try to avoid using cloud solutions for anything because it requires Internet bandwidth to utilize. Internet bandwidth is a premium for us, and priority sales traffic to our website for business purposes. Not using cloud computing. No plans to move any apps to the cloud in 2014. There will be no change. Not sure. Cloud computing is still a new and untrusted domain for our execs. We are slowly being pushed into SAS offerings by our vendors so this may evolve over the next year or two. Very little evolution until we have a major change in our corporate office location. Due to the nature of our information and the legal requirements for Privacy and to meet HIPAA requirements very little Cloud Computing will happen, the risk of having protected information not under our control is too great. We will not expand cloud significantly. Our first focus is on addressing security concerns and balancing security (encryption, primarily) with performance. I hope it doesn't. We are finding that the application providers hold the data hostage in their systems if the business relationship concludes. No matter what is written in the contracts. It is cheaper and more efficient to not engage in cloud computing for the scenarios I am faced with. In 2014 we don't expect much change from 2013...we will continue to monitor the situation, but have enough scale and no peak periods to warrant using a cloud at this time.After 2014, we may investigate cloud computing for development and testing purposes (dip our toe in the water). Limited Cloud computing the coming fiscal year. We plan on not using any Cloud computing in the next 12 months. Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|29April2014SERVEROPERATI NGSYSTEMSSHAREGAI NS We asked 150 CIOs to indicate whether each of the four major Server operating systems (Linux, Windows, UNIX, Mainframe) would Gain, Lose or Maintain share of their organization's Server environment in 2014. We present the results on a "Net-Gainer" basis - meaning if 55% of CIOs indicate a certain OS will gain share of their server environment, and 45% indicate it will lose share, that would equate to a "Net-Gainer" score of +10%. On this basis, we find Linux leading the pack at +24%, Windows next at +23%, UNIX next at -22%, and Mainframe last at -56%. This compares to the expectations for 2013 as per our 4Q:2012 survey with +33% for Linux, +15% for Windows, -31% for UNIX and -46% for Mainframe in 4Q:2012. Exhibit 26SERVEROPERATI NGSYSTEMWI NNERSVSLOSERS( NET- GAI NERBASI S) Source: Piper Jaffray Research Key Takeaways from the Chart Above CIO Surveys 30|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 This table shows the actual responses by each operating system and the figures we use to derive each Net-Gainer score. Exhibit 27SERVEROPERATI NGSYSTEMSNET- GAI NER, 4Q: 201 3( RAWDATA) GainingNeither Gaining Nor LosingLosing Net-Gai nerLinux 35.3% 53.3% 11.3% 24.0%Windows 31.3% 60.0% 8.7% 22.7%UNIX 6.0% 66.0% 28.0% -22.0%Mainframe 0.7% 42.7% 56.7% -56.0% Source: Piper Jaffray Research Key Takeaways from the Table Above Exhibit 28SERVEROPERATI NGSYSTEMWI NNERSVS. LOSERS( NET- GAI NERBASI S, I TBUDGETS> $25 0M) Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|31April2014In our last five CIO surveys, the data have oscillated (sometimes Windows edges out Linux, sometimes vice-versa), but Linux has repeatedly edged out Windows amongst the largest IT budgets (those in excess of $250M annually). Examining only organizations with large IT budgets (>$250M in IT spending), spending intentions are even stronger for Linux at +31%, Windows at +17%, UNIX at -19%, Mainframe at -58%. This table shows the actual responses by each operating system and the figures we use to derive each Net-Gainer score. Key Takeaways from the Chart Above Exhibit 29SERVEROPERATI NGSYSTEMSNET- GAI NER, 4Q: 201 3( RAWDATA)Filetered by Organizations with > $250M in IT SpendGainingNeither Gaining Nor LosingLosing Net-Gai nerLinux 41.7% 47.2% 11.1% 30.6%Windows 25.0% 66.7% 8.3% 16.7%UNIX 8.3% 63.9% 27.8% -19.4%Mainframe 0.0% 41.7% 58.3% -58.3% Source: Piper Jaffray Research Key Takeaways from the Table Above CIO Surveys 32|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 BI GDATA We asked each CIO to name two or three vendors that they will rely on for their "Big Data" initiatives. Rather than providing a predetermined list of companies, the question was open-ended, so that CIOs could mention any vendor that came to mind. In total, 73 vendors were mentioned: 27 vendors received multiple mentions, and 46 others received a single mention. For our 2Q13 survey, 67 vendors were mentioned: 22 vendors received multiple mentions, and 45 others received a single mention. The feedback provides a proprietary real-time window into Big Data reality while stripping Exhibit 30CRI TI CALVENDORSFORBI GDATAPROJ ECTS, 4Q1 3 ( VENDORSWI THMULTI PLE MENTI ONS) 29%27%22%21%7%5%5%4%4%4%4%3%3%3%3%3%3%2%2%1%1%1%1%1%1%1%1%11%0% 5% 10% 15% 20% 25% 30%Oracle(Exadata)MicrosoftSAP(HANA)/BOIBM/Cognos/Netezza/SPSSEMCHPSplunkHadoopInformaticaTableauTeradataAmazon(AWS)DellAccentureCiscoGoogleVMwareMicroStrategyProprietary/inhouse1010DataEpicFiservHortonworksNetAppQlikTechsalesforce.comTCSNobigdataprojectsWhatarethetop2or3vendorsyourorganizationwillrelyonforits"BigData"initiatives?(PleaseremembertomentionanySMALLorMIDSIZEDsoftwarevendorsthatmayapply) Source: Piper Jaffray Research Key Takeaways from the Chart Above CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|33April2014out much of the Big Data hype - and due to our focus on Large-enterprise CIOs (150 CIOs who control $91B in IT spending), the survey results show where the real money will be spent. We interpret Oracle's No. 1 position, mentioned by 29% of CIOs, as evidence that near-term threats from big data technology and vendors have been overstated. Although technology like Hadoop was mentioned by 4% of CIOs, and vendors like Splunk and Tableau were mentioned by 5% and 4% of CIOs, respectively, Oracle still has more than double the combined CIO mentions across all three. This speaks to the strength of Oracle's database platform and its engineered systems including Exadata and Exalytics. While we believe Oracle faces real competitive challenges in its applications business, the CIO feedback reveals Oracle is very secure in its database business, and not just for old-school OLTP purposes but also for complex, modern, high-scale big data challenges. CIO Surveys 34|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 31VENDORSRECEI VI NGASI NGLEMENTI ON, 4Q1 3 Adobe Atlas Medical Software Avanade BigSQL Blackboard Bluestar Broadleaf Cloudera DataStage Ellucian Hadapt HCL Hyland Infosys JD Edwards JDA Juniper Leisure Trends Liferay Meditech Merkle Mirantis MySQL Newforma Nimble Storage Palantir PivotLink Plex QAD Rackspace Red Hat Redwood Analytics Riversand Salient SiSense Six3 Systems SugarSync SumoLogic Supermicro Thomson Elite Trimble Navigation VCE Veeam Verint Wescom Resources Group Workday Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|35April2014 Exhibit 32CRI TI CALVENDORSFORBI GDATAPROJ ECTS, 2Q1 3 ( VENDORSWI THMULTI PLE MENTI ONS) 25%20%18%16%8%6%5%4%4%4%3%3%2%2%2%2%1%1%1%1%1%1%19%0% 5% 10% 15% 20% 25%IBM/Cognos/SPSSOracleMicrosoft(Azure,SQLServer,Office365)SAP(HANA)/Sybase/BOEMCTeradata/AsterHadoopMongoDBHP/AutonomySASAmazon(AWS)DellGoogleInformaticaQlikTechsalesforce.comCDWClouderaNetAppRackspaceSplunkTableauNobigdataprojectsWhatarethetop2or3vendorsyourorganizationwillrelyonforits"BigData"initiatives?(PleaseremembertomentionanySMALLorMIDSIZEDsoftwarevendorsthatmayapply)Source: Piper Jaffray Research N = 141 CIO Surveys 36|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 33VENDORSRECEI VI NGASI NGLEMENTI ON, 2Q1 3 ACL Advisen Data Feeds AT&T Avande Blackboard BMC Cisco Concur CSAIL Datameer Datastax dbMotion Deltek Doondas Ellucain Epic EquiLogix Fiserv Greenplum Health Catalyst Hortonworks Humedica Insight Intel IST Host Leisure Trends MAIA Market Intelligence Microstrategy Nimble Pearson eCollege Perceptive Software Phytel PivotLink Palantir Platforma PwC Six3 Systems SkyFoundry Socrata Symantec Telus Think Smart Verint VMware Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|37April2014 Both IBM and Teradata are again among the worst share-losers in terms of their degradation from our midyear 2013 CIO survey to our year-end 2013 CIO survey. 25% of CIOs mentioned IBM in our midyear survey and this dropped to 21% in the current survey. Likewise, 6% of CIOs mentioned Teradata in our midyear survey and this dropped to 4% in our year-end survey. This kind of drop-off was unusual as Oracle surged 9 points from 20% to 29%, Microsoft leaped 8 points to 27%, Splunk Exhibit 34CHANGESUMMARY, 2Q1 3 TO4Q1 3 Vendor 2Q13 4Q13 DeltaOracle(Exadata) 20% 29% 9%Microsoft 18% 27% 8%SAP(HANA)/BO 16% 22% 6%Splunk 1% 5% 3%Accenture 0% 3% 3%Tableau 1% 4% 3%Proprietary/inhouse 0% 2% 2%Cisco 1% 3% 2%VMware 1% 3% 2%Informatica 2% 4% 2%1010Data 0% 1% 1%TCS 0% 1% 1%MicroStrategy 1% 2% 1%HP 4% 5% 1%Epic 1% 1% 1%Fiserv 1% 1% 1%Hortonworks 1% 1% 1%Google 2% 3% 1%Amazon(AWS) 3% 3% 0%Dell 3% 3% 0%NetApp 1% 1% 0%EMC 8% 7% 0%QlikTech 2% 1% 1%salesforce.com 2% 1% 1%Hadoop 5% 4% 1%Teradata 6% 4% 2%IBM/Cognos/Netezza/SPSS 25% 21% 4%Nobigdataprojects 19% 11% 8% Percentages may not add up due to rounding Source: Piper Jaffray Research Key Takeaways from the Table Above CIO Surveys 38|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 skyrocketed from 1% to 5%, Tableau ballooned from 1% to 4%, and Informatica doubled from 2% to 4%. Investors should consider whether the technology world is once again bifurcating itself into a landscape of innovators and dinosaurs as the volume, velocity and variety of data shift into overdrive CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|39April2014MOSTCRI TI CALMEGAVENDORS Exhibit 35 shows Microsoft as the clear leader, followed by Oracle. The material falloff for Microsoft is difficult to explain because Microsoft spending intentions remain very solid/improving. However, Microsoft selections for Most Critical Mega Vendor also surged unexpectedly in our Q4:13 CIO survey, from 33% to 45%, and has now simply returned to a more-normal level. HP continues to languish near the bottom of the traditional enterprise IT vendors, and although shares have appreciated recently, they have not seen the same up-and-to-the-right movements as Microsoft, Oracle or SAP over the last two years. Apple continues to maintain its place near the bottom, but this is not surprising given Apples focus on consumer. A movement to mid- to high-single digits would be a dramatic move for Apple. Exhibit 35CRI TI CALI TMEGAVENDOR 3%4%5%7%12%15%19%35%3%3%6%7%10%11%16%45%0% 10% 20% 30% 40% 50%AppleHewlettPackardEMCIBMCiscoSAPOracleMicrosoftWhichITMegaVendorWillBeMostCriticalandIndispensabletoyourOrganization'sITEnvironmentintheFuture?2013 2014Source: Piper Jaffray CIO Survey, December 2012 and December 2013 Key Takeaways from the Charts Above CIO Surveys 40|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 This chart shows that vendors with large IT budgets (>$50M) see Microsoft as their most critical mega vendor, followed by SAP, then Oracle. The next six pages contain detailed responses why each CIO chose their particular vendor.Exhibit 36YEAR- OVER- YEARCHANGE Vendor2013Share2014ShareY/YChangeSAP 11% 15% 4%Oracle 16% 19% 4%Cisco 10% 12% 2%HewlettPackard 3% 4% 1%Apple 3% 3% 0%IBM 7% 7% 0%EMC 6% 5% 1%Microsoft 45% 35% 10% Exhibit 37CRI TI CALI TMEGAVENDOR, FI LTEREDFORBUDGETS>$5 0M 28%25%18%12%8%5%3%0%0% 5% 10% 15% 20% 25% 30%MicrosoftSAPOracleCiscoIBMHewlettPackardEMCAppleWhichITMegaVendorWillBeMostCriticalandIndispensabletoyourOrganization'sITEnvironmentintheFuture?(FILTEREDforITBudgest>$50M)Source: Piper Jaffray CIO Survey, December 2013 Key Takeaways from the Charts Above CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|41April2014DETAI LEDCOMMENTSFROMSURVEYRESPONDENTS Exhibit 38MI CROSOFTSHOPS( 5 3RESPONSES=35 %OFTOTAL) Provide support of all major applications in use. MS is embedded and removing will be very difficult. We have invested heavily in SQL Server based systems. All applications we are currently running use this platform. Major cloud initiative. We are moving to VMware servers and will purchase more MS products. Our 50-100K desktops use Windows. Huge Office 365 project. All desktop, laptop and server operating systems are Microsoft. Most our technology environment is built on the Microsoft platform and is critical to our success. Oracle, Cisco, HP and EMC are also very critical but since I had to pick one, I think it is Microsoft. Pushing to cloud with Azure. Developing in .NET and migrating to MS/360. Use majority of infrastructure as Microsoft. Its the industry standard. Reliance on Microsoft-based applications for critical business functions. For email, office and cloud storage. Business Partner. Integrated in many applications. Overall server landscape and center of core infra. Server, desktop and remote access infrastructure along with software products. Foundation. PC and server is Microsoft. Our applications are based on Microsoft. Enhanced collaboration and remote worker capabilities. We are a Microsoft campus. We are primarily a Microsoft server and desktop environment. Shaping the end user front end usage and software as a service. Is our main infrastructure and operating system provider. We depend on the MS development stack. The majority of our workstations are Windows boxes. Still the foundation of most individual's work. MS is the core of our development environment and portals. Prefer not to say. Microsoft's product set is broad and well entrenched. There is additional value in their products that we will continue to deploy in the future. We are a Microsoft shop. Source: Piper Jaffray CIO Survey, December 2012 CIO Surveys 42|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 39MI CROSOFTSHOPS, CONTI NUED( 5 3 RESPONSES=35 %OFTOTAL) More in-house web deployed systems. We're a MS shop. We currently use the Microsoft suite of applications on both server and workstation platforms. Our infrastructure is built on Microsoft. MS is our primary network and we are expanding our relationship. Our ERP provider QAD was not listed. Windows OS and Office. SharePoint and integration with Office, Yammer. Stability and security of O/S and document systems is key, interested in their move to cloud and mobile. More employees moving to a mobile platform and Apple is the clear leader. Still the base of most of our solutions. Use of their business productivity software. All of our current applications run on MS software. The development of the products continues to be based on MS and is unlikely to change in the near future. Migration to Windows 7 and Email transformation. We have standardized on their software for office applications as well as a their software for development. Microsoft provides a complete solution for IT infrastructure. World runs on Windows. Our applications are being developed in .NET. Source: Piper Jaffray CIO Survey, December 2012 CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|43April2014 Exhibit 40ORACLESHOPS( 29RESPONSES=1 9%OFTOTAL) Their focus on logistics functionality. Moving to a new core system with Oracle COTS products. We have our ERP on Oracle. Growth. Future functionality and upgrade paths include Oracle products. Mission critical ERP/MES implemented on Oracle's e-Business Suite. Our database is on Oracle. New ERP initiative. It is our ERP system. Oracle is at the heart of our integrated ERP system, imaging, and document workflow solutions. They currently provide our back office ERP solution with their E-Business Suite of products. We are running ERP and PLM systems on Oracle, full steam ahead. Mobility in the hospital. Financial applications. We rely upon their ERP and database software. Since all our critical business apps are on engineered systems & 70% of all our DBs on Oracle. Business Intelligence. ERP. ERP suite of software and Database provider. We standardize many of our databases with Oracle and really like their Identity management solution. Runs all our global core applications platform, the replacement cost is too large, with little value. Their products, services and partnership. Our core systems run on Oracle. ERP is based on Oracle DB. Our electronic medical record uses this database. Oracle is the basis for our ERP - PeopleSoft. They permeate everything we do. Oracle is critical to our external technology delivery solutions for servicing our global customer base. Significant investment in place and expect more in the Exadata/Exalytics space. Moving all business operations to Oracle EBS. Source: Piper Jaffray CIO Survey, December 2012 CIO Surveys 44|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 41SAPSHOPS( 23 RESPONSES=1 5 %OFTOTAL) We are an SAP shop and they just bought Hybris which we are implementing. Large investment which we plan to leverage further. Both are integrated into our operations and further deployments are consistent with each others strategies. Cloud Transition. Used for majority of functions we do, including time keeping, property management, and financial tracking. We are committed to SAP's ERP platform as the basis for all of our business processes. Core ERP. Future core ERP. It is our core ERP. Wedded for reasonable future. Relevancy in market. Standardizing on SAP globally across 24 business units. Harmonized ERP landscape. Our core ERP. Large investment in this technology and will be used as the primary solution for software replacement initiatives. SaaS ERP solution provider. Scale of scope. Consolidating multiple ERP systems from acquisitions will be key. Large investment in SAP others are expendable. SAP is our gold standard for our compliant GMP operations. Focusing on consolidating ERP solutions across the globe with SAP. They are the backbone to our environment. Source: Piper Jaffray CIO Survey, December 2012 CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|45April2014 Exhibit 42CI SCOSHOPS( 1 8RESPONSES=1 2%OFTOTAL) Cisco is the lifeblood of our network. For a research laboratory, their reliability and ability to grow with our needs is critical. Internet connectivity. It is the core of my network. WAN and Remote access. Our network is critical to the reliability and availability of the healthcare system. The network is critical to all efforts. We are upgrading our NW Architecture to support PCI-DSS compliance and will be using their products to provide virtual separate nodes for security. All network services provided by Cisco hardware. Disaster recovery/ and Voice. Convergence - moving to Cisco for Networking, Servers and Phones. Foundation for our network and internal cloud. Proven reliability and performance for our infrastructure. Connectivity across platforms. The network has become the most important piece in our environment...and the need for ubiquitous access to our systems, along with the continued integration to mobile. Cisco is our network and communications company. Without either, we're dead in the water. Converged infrastructure capabilities. We use Hyperion, and intend to use other software for business value add. Undergoing a contact center transformation project. Source: Piper Jaffray CIO Survey, December 2012 Exhibit 43I BMSHOPS( 1 0RESPONSES=7%OFTOTAL) We are moving our full data centers to IBM, a reverse from HP. Preferred Strategic Partner. Core to our ERP global IT plans. Key servers and OS AIX. It is our corporate backbone for the past 30 years. Strong relationship and huge spending with them. Strong partnership both on hardware (iSeries platform) and services (implementing Fusion Middleware). Also looking at IBM for a potential JD Edwards EnterpriseOne implementation. Large Customer Service implementation being delivered in 2014. Continue to have largest installed footprint inside company. Key partner for CPI initiatives. Source: Piper Jaffray CIO Survey, December 2012 CIO Surveys 46|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 44EMCSHOPS( 7RESPONSES=5 %OFTOTAL) Increasing demands on storage and disaster recovery. Just purchased vBlock technology. Data centres are fully virtualised and so a reliable storage vendor is essential. We utilize their VM tools exclusively. VMWare. Between EMC and their VMWare subsidiary, our infrastructure is almost wholly dependent. Source: Piper Jaffray CIO Survey, December 2012 Exhibit 45HPSHOPS( 6RESPONSES=4%OFTOTAL) Key projects underway with HP. Major partner in hardware refresh / upgrade. HP hardware for private cloud build out. We have signed an enterprise data center infrastructure agreement with HP. Entered into enterprise data center management contract with HP. They are our current Infrastructure and Application outsource partner. Source: Piper Jaffray CIO Survey, December 2012 Exhibit 46APPLESHOPS( 4RESPONSES=3%OFTOTAL) Mobility adoption in sales areas. We're beginning to deploy iOS apps that are key to both our products and our internal IT. Much of our mobile strategy is based on iOS devices. Continued evolution of mobile devices. Source: Piper Jaffray CIO Survey, December 2012 CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|47April2014SURVEYDI FFERENTI ATI ONANDBACKGROUNDAND LI MI TATI ONS This survey was conducted primarily in December 2013. We believe our survey is unique due to its scale and its focus on larger organizations. Input from 150 CIOs distributed across 20 industry sectors is included. Dozens of very large household names participated in the survey, responsible for at least $91B in annual IT spending, or $607M on average (exhibit below). In our experience, many CIO surveys focus on smaller firms, because small-company CIOs are easier to reach. However, an IT budget of $1B moves the needle 100x more than an IT budget of $10M, and thus large company input is required to predict aggregate IT spending. We surveyed 150 CIOs with an emphasis on large and mid-sized organizations. The CIOs surveyed control at least $91B in annual IT spend, spanning at least 20 industry sectors. We believe the survey is useful due to its scale and focus on larger organizations, but we note at least one limitation: 1) the survey is more weighted toward North American organizations, with roughly 11% of respondents outside the Americas. Our CIO Surveys Differentiation Survey Background and Limitations Exhibit 47SI ZEOFI TBUDGET 2.7%4.7%13.3%9.3%30.0%16.0%12.7%2.7%4.0%2.0%2.7%0% 5% 10% 15% 20% 25% 30% 35%$8BillionWhatisthesizeofyourorganization'sAnnualITBudget,inUSDollars?Source: Piper Jaffray Research CIO Surveys 48|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 48GEOGRAPHI CLOCATI ON 89.3%4.7%6.0%0% 20% 40% 60% 80% 100%AmericasEurope/MiddleEast/AfricaAsiaPacificWheredoesyourorganizationreside?Source: Piper Jaffray Research Exhibit 49I NDUSTRYSECTORS 11%9%9%8%8%7%7%7%7%6%5%3%3%3%1%1%1%1%1%1%1%0% 2% 4% 6% 8% 10% 12%HealthSciences/HealthCareFinancialServicesRetailPublicSector/GovernmentOtherInsuranceHighTechnologyIndustrialManufacturingEducationandResearchTravelandTransportationRealEstate,Engineeringand/orConstructionAutomotiveAerospaceandDefenseMediaandEntertainmentOilandGasProfessionalServicesUtilitiesConsumerGoodsCommunicationsChemicalsNaturalResourcesInwhatIndustrySectordoesyourorganizationoperate?Source: Piper Jaffray Research CIO Surveys Piper Jaffray Investment Research Cloud-Splosion: A Software Industry Reference Guide|49April2014SURVEYDI FFERENTI ATI ONANDBACKGROUNDAND LI MI TATI ONS This survey was conducted primarily in December 2013. We believe our survey is unique due to its scale and its focus on larger organizations. Input from 150 CIOs distributed across 20 industry sectors is included. Dozens of very large household names participated in the survey, responsible for at least $91B in annual IT spending, or $607M on average (exhibit below). In our experience, many CIO surveys focus on smaller firms, because small-company CIOs are easier to reach. However, an IT budget of $1B moves the needle 100x more than an IT budget of $10M, and thus large company input is required to predict aggregate IT spending. We surveyed 150 CIOs with an emphasis on large and mid-sized organizations. The CIOs surveyed control at least $91B in annual IT spend, spanning at least 20 industry sectors. We believe the survey is useful due to its scale and focus on larger organizations, but we note at least one limitation: 1) the survey is more weighted toward North American organizations, with roughly 11% of respondents outside the Americas. Our CIO Surveys Differentiation Survey Background and Limitations Exhibit 47SI ZEOFI TBUDGET 2.7%4.7%13.3%9.3%30.0%16.0%12.7%2.7%4.0%2.0%2.7%0% 5% 10% 15% 20% 25% 30% 35%$8BillionWhatisthesizeofyourorganization'sAnnualITBudget,inUSDollars?Source: Piper Jaffray Research CIO Surveys 50|Cloud-Splosion: A Software Industry Reference GuidePiper Jaffray Investment ResearchApril2014 Exhibit 48GEOGRAPHI CLOCATI ON 89.3%4.7%6.0%0% 20% 40% 60% 80% 100%AmericasEurope/MiddleEast/AfricaAsiaPacificWheredoesyourorga