© 2013 Terracotta Inc. |

Capital Markets Day

February 26, 2013

Data Management 2.0 From BigMemory to Real-Time BI

Robin Gilthorpe

CEO Terracotta

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2 © 2013 Terracotta Inc. |

Big Data Landscape Did you say HELLABYTES?

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DATA is Expanding Exponentially

A confluence of interconnected forces

is generating and utilizing

VAST AMOUNTS OF DATA

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Data Expansion is Outpacing IT Spend

40%

PROJECTED

GROWTH

IN GLOBAL

DATA CREATED

PER YEAR

5%

PROJECTED

GROWTH

IN GLOBAL

IT SPENDING

PER YEAR

Source | Big Data: The Next Frontier for Innovation, Competition and Productivity – McKinsey Global Institute Report

101010101010

1010101010101010

101010 1010

10101 $

5 Source | Mastercard Company truaxis: http://i.imgur.com/cJRzk.jpg

For the average

Fortune 1000 company a 10% increase in DATA ACCESSIBILITY leads to an extra $65,670,000 in net income EACH YEAR

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The Road Ahead…

Big Data is pervasive

1.

2.

3.

But if you can’t extract value,

Big Data is just a problem to be managed

Value relies on Big Data being fast

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7 © 2013 Terracotta Inc. |

Why In-Memory?

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Big Data Pressures for Enterprises

Source: Aberdeen Group, Enabling Real –Time Access to Big Data Presentation with Terracotta, Jan 2013

0% 50% 100%

Poor data quality is impactingdecisions

Not getting info fast enough

Volume of data growing toorapidly

Laggards

Best-In-ClassTop 20% of

Companies Surveyed

Bottom 30% of

Companies Surveyed

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Addressing Big Data Requires A New Approach:

In-Memory

90% of Data

in Memory

MODERNIZE Database

90% of Data in

Database

Memory

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App Response Time

Milliseconds

App Response Time

Microseconds

10 © 2013 Terracotta Inc. 10

In-Memory is Key to Big Data Value

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Big Fast Data Creates Big Value for Enterprises

BIG FAST DATA Opportunities

Making Better Informed Decisions

Discovering Hidden Insights

Automating Business Processes

Generate New

Revenues

Strategies,

Recommendations

Forensics, Patterns,

Trends

Complex Events,

Translation

Know What Your

Customers Want

and When

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12 © 2013 Terracotta Inc. |

Terracotta Market Position

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How Does Terracotta Fit Into the Landscape? E

ase o

f U

se

Predictable, Low Latency at Scale

DIRECT COMPETITORS Specifically designed for

low-latency at scale

DISTANT ALTERNATIVES

CAN’T

SCALE

CLASSIC

IN-MEMORY

DATA GRIDS

Coherence

GemFire

NO APP

SERVER

RAM USE

IN-MEMORY

DATABASES

HANA

TimesTen

NOT

ENTERPRISE

GRADE

NoSQL

DATABASES

MongoDB

Cassandra TOO SLOW

(BATCH)

MAP-

REDUCE

Hadoop

NOT

ENTERPRISE

GRADE

OPEN

SOURCE

CACHES

Memcached

14 14 © 2013 Terracotta Inc. |

Terracotta Positioning

The 1st Choice Platform

For High-value, High-velocity Data

For Businesses with High-value Big Data Challenges

BIG DATA FOR

FAST BUSINESS

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Terracotta Commercial Products

Distributed caching for the enterprise

Enterprise-grade job scheduler for Java

Plugin for enterprise-grade web session

management

Bundle of Enterprise Ehcache, Quartz

Scheduler, Web Sessions and more

In-memory Data Management

platform for enterprise Big Data

DM2 Offering

(coming soon) In-memory platform for enterprise

intelligence from Big Data

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BigMemory In-Memory Data Management for the Enterprise

Speed | Scale | Simplicity

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BigMemory is Everywhere: You Already Use It!

See real-time

traffic info

Reserve a hotel

Book a flight

Place a bet

Pay for an

online purchase

Get billing &

account info

Track a package

Participate in

an auction

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DM2 – Upcoming Platform for

Enterprise Intelligence from Big Data

A new approach to

value from BIG DATA

• Using In-Memory speed to enable:

− Faster, better decisions

− Proactive risk identification & response

− Ability to seize momentary opportunities

to anticipate and fulfill customer needs

Uniquely possible

from Software AG

Combines a select set

of the most innovative

technologies in our

portfolio

Powered by the speed,

scale, simplicity and

ubiquity of Terracotta

BigMemory

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How We’re Different

Born In-memory

Our platforms are born-in-memory

and designed from the ground up

to leverage all the benefits of our

unique tiered in-memory store

including scalability, low

overhead and ultra-fast speeds

1

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How We’re Different

BigMemory

Our platforms are powered by

BigMemory, the in-memory

solution of choice for

high-value data among

progressive enterprises

No one can touch our predictable

performance and high availability

at Big Data scale

2

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How We’re Different

DM2

In-Memory

Intelligence Platform The industry‘s first scalable

in-memory actionable

intelligence platform

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Gather

Store

Pattern

Analyze

Share

Act

Filter

Use

(coming

soon)

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How We’re Different

Making The

Imaginable Possible

Our in-memory platforms

accelerate existing apps and

infrastructure and make next

generation applications and

business models possible

4

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23 © 2013 Terracotta Inc. |

Value of Our Big Data Platforms

for Customers

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Use Cases

Customer Experience

Management

Real-time coupons

Retail Manufacturing

Supply Chain

Analytics &

Optimization

Track & Trace

Fraud Detection

Risk Mitigation

Personalized

Contextual Marketing

Banking

Energy / Utilities

Demand Management

Smart Grids

Sensor Data Analysis

Life Sciences/ Healthcare

Patient Logistics

Patient Monitoring

Traffic Management

Counter Terrorism

Government

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SUCCESS STORY: Increasing Customer Satisfaction

and Renewals With Faster Access

Before BigMemory

• Before BigMemory took as long

as 20 seconds to retrieve crucial

market research

• 50% of report queries timed out

• Customers were complaining

SPEED

LEADING AD TRACKING AND MARKET RESEARCH FIRM

AFTER BigMemory

Faster - Data access times decreased from

20 seconds to 20 milliseconds (99.99%

reduction)

Better - Increased customer confidence

resulted in longer-term contracts

Bigger - Plans to increase in-memory store data to several terabytes

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SUCCESS STORY: Faster e-Commerce Improving

Online Experience

Before BigMemory

• Product catalog and shopping

cart data pulled (slowly) from

multiple disk-bound databases

• Huge spike in customer traffic

(Cyber Monday, Black Friday)

jeopardized stability

SCALE

FORTUNE 150 ATHLETIC BRAND

AFTER BigMemory

Simpler - Backend services load slashed

by 40%

Faster - 90% of product requests served

instantly, page load time reduced by 16%,

search time reduced by 30%

Better - Improved online shopping

experience without big investment in

new servers

More Profitable – Grew e-Commerce

by nearly 7,500 products and $340 million

in sales

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SUCCESS STORY: Telecommunications Leader Dials

Up Profits with BigMemory

Before BigMemory

• Retrieving customer data took

as long as 30 seconds

• Inadequate performance meant

company could not promote e-

service

• Competitor products were

rejected due to cost and

performance concerns at

terabyte scale

SCALE

$26 BILLION TELECOM COMPANY

AFTER BigMemory

Bigger - Supports more than 10,000 customer

interactions daily, ready to scale to 10x

Faster - Slashed access times to only 200

milliseconds with 100% data availability

More Profitable - Tens of millions of dollars

saved in support costs

Better - Ability to support launch of new

online applications

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SUCCESS STORY: Radically Improved Profitability,

Expansion & Reduced Costs

Before BigMemory

• With current competitor product,

failed to meet 800ms SLA ~ 10%

of time

• Lost 30¢ on every $100 to fraud

• Limited to 50 rules, though each

new rule generated $12M profit

PROFITABILITY

FORTUNE 500 ONLINE PAYMENTS PROCESSOR

AFTER BigMemory

More Profitable - $10M’s saved from missed

SLAs & fraudulent charges

Cheaper - $1 million annually in reduced

database licenses

Faster - Meeting stricter 650-millisecond SLA

99% of time

Bigger - From 4TB to 150TB for new

applications & to achieve 250ms SLA

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29 © 2013 Terracotta Inc. |

Terracotta Business

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Terracotta Is Well Positioned

Big Data

Management

Business

Analytics

In-Memory

Computing

Real-Time

Applications

Digital

Transformation

BIG DATA

FOR FAST

BUSINESS

at the CENTER

of today’s

hottest big

data

TRENDS

Permission to Play

in Big Data Innovative products +

Track record with

customers

Opportunity to

Dominate People + Strategy +

Investments

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Terracotta is the Leader in BIG FAST DATA

Over 2.5 million deployments

Used by the majority of Global 2000

Used by 2.1 million developers

Over 5 Petabytes of in-memory data

Born in-memory platforms

Ultra-fast access to 100s of TBs of data

Instant insight and action from any data

source to any device type

Boost current system performance

Enable next generation data

applications

Drive value from enterprise data

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Terracotta in 2013: Innovating & Expanding

On the right trajectory and investing accordingly

− Staffing will double again in 2013

− Investing in growth levers across the organization

We are disrupting traditional data management

− Offering a simple, elegant alternative to the complex, expensive, and limited competitor offerings

− Looking at innovative embedded markets

Customers are making big bets on in-memory

− Implementing in-memory as a service across infrastructure

− Using in-memory for multiple apps

− Gaining competitive advantages with fast, predictable access to their data

− Tapping new revenue streams by speeding up their businesses

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Strategies to Meet our Objective

objective

To be the first choice platform for

high-value, high-velocity data

strategies

1. Focus

2. Leverage

3. Marketing

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Strategy 1: Focus on Fast Growing In-Memory Markets

IMDG

− Win share to expand our position from competition and DIY

− Drive 90% of 2013 revenues from our current data access & management products

− Current In-Memory Data Management platform

In-Memory Intelligence

− Establish presence in key adjacent market like in-memory intelligence

− Drive 10% of 2013 revenues from upcoming insights products

− New platform available in Q4

0

400

800

1200

1600

2000

2012 2015

CAGR of 13%

through 2016

In-Memory Analytics Market

€1.6B by 2015

0

100

200

300

400

500

600

2012 2015

IMDG Market

€550M by 2015

CAGR of 30%

through 2015

€M

€M

90%

10%

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Strategy 2:

Leverage the Software AG Channel & Network

• Focus Terracotta reps in hub cities where Software AG has a

significant presence

• Apply complementary sales coverage

− Terracotta: Geographic alignment with ‘affinities’ for verticals with

demonstrated need and success

− Software AG: Named account alignment with key verticals

• Integrate sales teams and their revenue focus

• Build an ecosystem that will generate revenues in 2013 and

beyond

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Strategy 3:

Apply a Marketing Heavy – Sales Light Approach

• Marketing to strategically drive demand and awareness

• Focus on content creation and leverage from Terracotta HQ

(manufacturing)

• Focus on customer intimacy and use of assets in regions

(distribution)

• Make it easier to buy from us, not just easier for us to sell

• Experiment with low-touch and no-touch sales

575 Florida Street, Suite 100 San Francisco, CA 94110 | 1-888-30-TERRA or 1-415-738-4000

© 2013 Terracotta Inc. |

www.terracotta.org