October 27, 2005

1. Open Source & Open Source Based Application ServersLeverage the Benefits of Open Source with Trusted Support from IBM Today! October 27, 2005

2. Agenda • Open Source Application Server Market Momentum • IBM's Strategic Direction & Actions • Products, Support & Services Overview • Why WebSphere Application Server Community Edition and Apache Geronimo over JBoss • Target Customers • Partner Benefits • Call to Action • Contacts for More Information • Questions & Answers

3. Open Source Middleware and Your Market Opportunity Customers have begun to evaluate and deploy Supported Open Source Middleware for certain projects….but there are still significant revenue opportunities for you “Forrester has found that availability ofhigh-quality professional support is the major barrier to widespread adoption of open source projects…. “ Forrester (2004) “After a period of testing by early adopters, firms are beginning to use open source software …. in critical projects” – Forrester (2004) “New license revenue is no longer the singular measure of success and influence in the Enterprise Application Server market.” Gartner (2005) “Supported open source products provide a third choice between ‘freeware’ and more robust products” – IDC (2004) *NEW* Revenue Opportunities for You! - Address needs of new customers, drive new services revenue, drive new support revenue and increase upsell/cross-sell opportunities

4. A Growing Community of Partners and Customers “As part of a multi-faceted alliance, AMD and IBM are developing customer-centric solutions around IBM services-oriented architecture initiatives…AMD Opteron™ processors support WebSphere Application Server Community Edition by offering a compelling WebSphere solution which is designed to deliver enablement and scalability at the transaction level while delivering performance that addresses user expectations without increasing power and infrastructure costs.”-Joe Menard, Corporate Vice President, Software Strategy, AMD “…Backed by the continued leadership IBM provides in open source alternatives and open standards solutions, CrossLogic can now offer a robust portal and content management system to a broader SMB community. With Infinity Portal on WebSphere Community Edition, our customers will enjoy both the flexibility of Open Source and the security of IBM support.” - Russell A. Stinehour, President & CEO, CrossLogic Inc. "We have chosen to support Apache Geronimo and WebSphere Application Server Community Edition because it is a solid J2EE 1.4 open source server that is backed by IBM. This announcement continues our commitment to leverage open source and embrace open standards, adding value for our SMB customers and prospects with real support, that when combined with the power of eOneCommerce makes for an attractive On-Demand solution”,- Bob Noren, President, eOneGroup

5. A Growing Community of Partners and Customers “…We are delighted to support MarvelIT’s OpenReports Business Intelligence Suite on WebSphere Application Server Community Edition to give our customers a compelling way to benefit from the flexibility of open source with dependable support from IBM. WebSphere Application Server Community Edition enables our customers to tap into the low cost entry of open source technology to quickly develop and deploy business intelligence services.”-Stephen Greenlee, CTO, MarvelIT “… QS Labs’ Gluecode-powered solutions increase the reliability and visibility of quality process execution…[We look] forward to the improvements that arrive with…WebSphere Application Server Community Edition, bringing together the best of open source technology and enterprise expertise.”- Joe Lindsay, President of QS Labs, Inc. “…Supporting WebSphere Application Server Community Edition is a natural extension of Tacton's strategic collaboration with IBM and its WebSphere family of products, all the way from the application server to high end solutions such as WebSphere Commerce and WebSphere Product Center.” - Christer Wallberg, CEO, Tacton Systems AB

6. A Growing Community of Partners and Customers “By delivering solutions on an open, standards-based technology platform, we are helping customers avoid the long-term costs of proprietary technology. IBM WebSphere Community Edition gives our small, medium and large customers a greater set of deployment options while still leveraging the industry-leading WebSphere suite of technologies.” -Cory Eaves, Chief Technology Officer, SSA Global “Trifork is committed to providing our customers and partners with solutions that meet their growing business needs. We are delighted to support the Trifork performance management suite on WebSphere Application Server Community Edition to give our customers a compelling way to benefit from the flexibility of open source with reliable support from IBM.”- Joern Larsen, CEO, Trifork "Webify has long been a supporter of open source software such as Linux and Apache and has contributed to the open source community. We support Apache Geronimo and the WebSphere Application Server Community Edition to provide a robust J2EE 1.4 open source server capabilities to our customers along with IBM's value added components and services.“- Gopal Krishnan, VP Engineering, Webify Solutions “… We are pleased to see the expanded open source commitment by IBM with the release of WebSphere Application Server Community Edition and Apache Geronimo and think enterprise customers will be too”.- Pierre Violo – CEO, Xcalia

7. Open Source: Developer, Partner & Customer Momentum Developers OSS devotee but needs CIO/Manager buy-in Partners Customers OSS acceptance linked to project complexity, criticality, time-to-value requirements OSS = Increased margins & lower TCO OSS = Subscription based model for acquiring software

8. Partners are critical to IBM’s strategy: You can address new customers, drive new services and new cross-sell and upsell opportunities IBM’s Strategic Direction in the Open Source Application Server Market New developers, partners & customers who do not need more than supported Open Source; they seek a subscription-based model that represents revenue IBM was not previously able to address Address a new set of customers Leading to IBM Cross-sell & Upsell Opportunities in the Future Some new developers, partners & customers that will naturally grow across the IBM portfolio value proposition in the future

9. IBM Addresses Open Source Middleware Market Momentum Acquisition of Gluecode Software • Capitalize on the market shift, contribute to the energy and momentum IBM makes a major commitment to Apache Geronimo as the Open Source Application Server of the future • Announced worldwide IBM Support for Apache Geronimo offering • Contributed Plug-in & Management Console technology • Achieves major milestones & industry participation increasing IBM introduces WebSphere Application Server Community Edition • A lightweight J2EE application server built on Apache Geronimo technology • Announced worldwide IBM Support for WebSphere Application Server Community Edition offerings

10. A continuation of IBM’s Open Source strategy Working as a peer and collaborating within the open community … Customers – IBM will continue to aggressively embrace open standards throughout our platform including application servers, databases, and tools along with enterprise support Community – IBM wants to help strengthen the community so that Apache Geronimo becomes the Open Source application server of choice Partners and Competitors – IBM continues to encourage the industry to leverage Apache Geronimo technology in their solutions and to actively participate in the community and use the products to attract new customers and increase revenue opportunities

11. What is Apache Geronimo? Open source J2EE application server project developed by the Apache Software Foundation. Benefits from the efforts of collaborative development by anopen community of Java developers worldwide. • Apache-licensed open source application server • J2EE compliant • Highly customizable • Small footprint • Open Community-driven Brings together leading technologies from the broad open source community to support J2EE

12. Apache Geronimo: An open community driving market momentum Platforms System Integrators Linux Distributors Apache Geronimo Contributors ISVs + Many Independent Developers

13. Small Foot Print(~60MB download) J2EECompliant What is WebSphere Application Server Community Edition? A lightweight J2EE application server built on Apache Geronimo technology No UpfrontCosts World-class Support (optional,fee-based)

14. WebSphere Application Server Community Edition: Key Features • J2EE 1.4 Compliant • Leverages Apache Geronimo for support of J2EE specifications • Certified on the IBM 1.4.2 JDK • Database Support • Integrated IBM Cloudscape database supported for development and production • MySQL, MS SQL Server and Oracle • Full Eclipse web tools support • Eclipse plug-in for creating, deploying, and debugging applications • Runtime customization • Architecture enables runtime customization to save systems resources and improve performance • Centralized configuration and control • Easy-to-use administrative console technology preview for managing & monitoring the application server and related resources • Small Footprint: ~60MB download • Easy access - downloadable in minutes • Easily embeddable in customer or ISV application stack • Liberal product license • Free to use in development, testing, and deployment

15. IBM Endorsed Open Source & Open Source Based Application Server Products WebSphere Application Server Community Edition Apache Geronimo

16. Chose Based on Product Merits & Your Goals, IBM Support Both Paths

17. Development & Deployment Flexibility • Choice of Apache Geronimo and WebSphere Application Server Community Edition • IBM supports both: • Develop on one, deploy to the other • Develop and deploy on one • Develop on either, deploy to WebSphere Application Server WebSphere Application Server Community Edition: Commercial & related characteristics Apache Geronimo: Pure Open Source & related characteristics WebSphere Application Server

18. Help Picking Between Apache Geronimo & WAS Community Edition If you… • Favor open source • Are using/considering JBoss or Tomcat • Have access to deep Java skills • Constrained budget • Rapid time to value requirements Ask Yourself… Apache Geronimo WAS Community Edition

19. WebSphere Application Server Family Proven performance/ scalability, enterprise wide deployment, functional depth, robustness WebSphere Application Server for zOS WebSphere Extended Deployment WebSphere Application Server Network Deployment WebSphere Application Server Customer Needs New Services Revenue for you WebSphere Application Server - Express Reduced acquisition costs; Rapidly develop & deploy departmental apps, small footprint.. WebSphere Application Server Community Edition New Revenue from Delivering Support, Reselling Support & Influencing Support sales Built on a common codebase Built on open source technology High transaction volumes, High Availability, Advanced Web Services; Optimized resource utilization… Basic security, easy administration and deployment of single application, low transaction volumes Capabilities

20. Optional Fee-based IBM Support Offerings:

21. IBM Services Offerings for WebSphere Application Server Community Edition & Apache Geronimo Architecture and Design Review • Review current application/middleware architecture and make recommendations on enhancements Migration planning and implementation assistance • Provide migration assistance from planning to code manipulation to move applications from competitive platforms (JBoss, Tomcat, BEA) to WebSphere Application Server Community Edition or Apache Geronimo, or to migrate WAS Community Edition and Geronimo applications to the WebSphere platform Application Building engagement • Focused on building and deploying applications to solve specific customer problems

22. Rest Assured, Your IBM Platform Investment is Secure • Your investment in the WebSphere Portfolio is secure • IBM brand ensures a continuity path for technology and support • IBM will continue to contribute to the Apache Geronimo community • Over time, IBM will consume Geronimo technology into the WebSphere portfolio • IBM’s Support for Apache Geronimo & WAS Community Edition allow you to expand customer reach while knowing that your investments are future ready • Migration aids from/to Geronimo, WAS Community Edition, Gluecode & WebSphere Application Server • Developers are happy with frictionless access to leading edge technology • CIO is happy that developers that developers are happy, backed by trusted IBM Support • CFO is happy to that developers are happy without an upfront cost • CEO is happy to be able to address new customers and new needs

23. Why Choose WebSphere Application Community Edition and Apache Geronimo over JBoss? • IBM’s Strategic Commitment: to Open Source, Apache Geronimo and WebSphere Application Server Community Edition • True Open Community: of Apache Geronimo community with broad industry participation & IBM’s first mover advantage • Vendor Stability: of IBM & our Partners • Trusted Support and Service: from IBM & our Partners • Future Migration: to the IBM Software Portfolio as needs grow • WebSphere Application Server Market Share: Addresses customers seeking to align with their WebSphere investments • Cost: Trusted support from IBM & our Partners for less than competitors for comparable support offerings

24. Where to Find Customers Whose Needs Align with WebSphere Application Server Community Edition & Apache Geronimo Capabilities: Low-end SMB companies with access toDeep Java Skills, who need: • Quick, frictionless access to application server technology with no up-front costs • Opportunistic projects to show tangible results quickly so funding can be secured 1 ISVs & Systems Integrators serving the departmental market who want: • Easily embeddable offerings from a vendor whose technology is simple to access • To satisfy customer demands for rapidly deployable and faster time to value solutions 2 Departments/Lines of Business within large enterprises who want: • Quick, frictionless access to application server technology for opportunistic projects • The necessary set of features for the tactical project and not much more 3

25. Partner Benefits

26. Partner Call to Action: • Get Enablement: • WebSphere Application Server Community Edition v1 Technical Overview (Nov. 15th): • Leveraging Open Source in your Application Infrastructure (Nov. 16th): • Partner Experience: Using WebSphere & Open Source to Drive Growth Opportunities (Nov. 17th): • VIC Sales & Technical Enablement (Available Late November) • http://www.ibm.com/partnerworld/vic • Download Code, Access Documentation, Buy IBM Support • October 25th Announcement: • Landing Page: http://www.ibm.com/software/info1/websphere/index.jsp?tab=landings/was-ce • IBM Support for Apache Geronimo • Offering Page: http://www.ibm.com/software/webservers/appserv/geronimo/ • Related developerWorks Content: http://www.ibm.com/developerworks/opensource/top-projects/geronimo.html • WebSphere Application Server Community Edition • Offering Page (Live 11/15): http://www.ibm.com/software/webservers/appserv/community/ • Related developerWorks Content (Live 11/15): http://ww.ibm.com/developerworks/websphere/zones/was/ • Drive New Opportunities • Expand your portfolio with IBM Support for Apache Geronimo, IBM WebSphere Application Server Community Edition and IBM Support for WebSphere Application Server Community Edition to attract new customers and drive new revenue

27. Backup

28. ? WebSphere Application Server Community Edition Product Release Plan: 2007 and Beyond • Releases 2x a year maintains product currency • Improved NLS capabilities in product & docs • Web Session Failover • Enhanced migration aids & tools • Additional & easier to use documentation • Support for simplifying frameworks • Additional Platforms • Increased operability with leading Open Source projects • Selective download enhancements • Interoperability with other IBM Software • Translated docs targeting emerging geos • Oct. 6: Geronimo 1.0 Milestone 5 released and J2EE compliant • ??/??: Geronimo 1.0 2006 • May 6th: IBM Acquires Gluecode • Gluecode Standard Edition 1.1 (Optimized for web applications) DRAFT • J2EE compliant on IBM JDK • Selective download with/without JDK • JDKs Supported: IBM & Sun • Eclipse Plug-in • Admin Console • LDAP Authentication • Enhanced Install • Migration aids from Gluecode Standard Edition, Apache Geronimo and Tomcat • Samples • Supported Platforms: • Linux on Intel: RHEL, SLES, Red Flag • Win32: Win2K3, WinXP Pro (for dev only) • Supported DBs: • IBM Cloudscape • MySQL • Oracle • Microsoft SQL Server 2005 Product plans are subject to change without notice until the product is announced

29. WebSphere Application Server Family Feature Comparison           

30. WebSphere Application Server Family Feature Comparison (continued)  

31. WebSphere Application Server Family Feature Comparison Details

32. WebSphere Application Server Family Feature Comparison Details (cont’d)

33. Competition Feature Comparison

34. Competition Feature Comparison – cont’d