© 2001 AltoWeb

AltoWeb, Inc.

The Scalable Platform for Extended Enterprise Deployment – SPEED©

July 11, 2001

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Company Overview AltoWeb Platform for the Extended Enterprise:

• Next Generation J2EE Application Platform• For D2D, D2E, E2E, E2C Solutions

Founded December 1998 Seasoned Management team led by Ali Kutay

• Former CEO of WebLogic, Inc.

Funding• Seed Investors: Ali Kutay, Frank Caufield, Regis

McKenna• First round: Intel 64 Fund• Second round: Norwest Venture Partners

Based in Palo Alto, CA; 80+ employees• Excellent Engineering Team (45+ employees)

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Board of Directors

Ali Kutay• Chairman, President and CEO, AltoWeb

Frank Caufield• General Partner, Kleiner, Perkins, Caufield and Byers

John Gilbert• CTO and Secretary, AltoWeb

Kevin Hall• General Partner, Norwest Venture Partners

Regis McKenna• Chairman, McKenna Group

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AltoWeb Org. Chart

A l t o W e b , I n c .

V . P .J o h n A k i n

V . P .E r h a n A k i n

D i r . S t u d i o D e v .S t e v e W i l k e s

D i r . I n t e g r a t i o nK e n H i t t l e m a n

A c t . M g r . Q u a l i t yB r e t K u m l e r

D i r . P r o d . D e v .J a g d e v D i l l o n

C h i e f A r c h i t e c tE l l i A l b e k

V . P . E n g . & C T OJ o h n G i l b e r t

D i r . P r o d . M k tR . M e y e r

V . P . M a r k e t i n gC h r i s J a m e s

D i r . W e b D e v .S a m i A k b a y

V . P . I n f . S y s t e m sH a k a n A k i n

V . P . S e r v i c e sD a n E l s e n

V . P . E a s t e r n S a l e sT o m L o o n e y

D i r . B u s . D e v .B i l l L u c k e r

V . P . B u s i n e s s D e v .T o d d Y a n c e y

M g r . H u m . R e s .M e g a n S t r e i f e l

V . P . & C F OC a r l M i l l s

P r e s . & C E OA l i K u t a y

Total Headcount = 79

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AltoWeb Value Proposition

Scalable Platform for Extended Enterprise Deployment - SPEED©:• D2D

• D2E• E2E• E2C

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Horizontal Applications

D

D

D D

D D

IT S

ervic

es

IT Services

Enterprise

C C C

E

E

E

…

…

…

…

Aggregation

Customers

Enterprises

Departments

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AltoWeb 10X SPEED© Improvement

1X 2X 3X 4X 5X

TIME TO MARKET IMPROVEMENT

COST REDUCED

BY

2X

AltoWeb

Platform

Current

Solutions

• Faster Time to Market

• Reduced Costs

For J2EE e-Business Solutions.

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Potential Market Size

Source: IDC

Available Market: $11BJ2EE App. Servers

Served Market: $4.5B

Available Market: $3B

2001 2004

e-Business Platforms

Served Market: $0.3B

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Market Opportunity

J2EE promises a unifying approach across the extended enterprise.• Defines a large number of standard services

• JSP, EJB, JMS, JCA, JTS, JTA, JDBC and JNDI

• Supports XML • These services provide system level interfaces

that are categorized as information logic, business logic and presentation logic

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Market Opportunity

The Challenges of J2EE• J2EE does not specify how to best build applications• J2EE does not directly support Web Services• J2EE does not specify appropriate architectures per

situation• Often, what one should NOT do is more important that what

one should do

• J2EE does not specify how best to manage the runtime environment

J2EE provides excellent capabilities, but an application platform is needed…

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The AltoWeb SPEED©

A structured server platform that automates architectural principles and leading practices

Components and processes are integrated to provide design, deployment, and management of eBusiness applications and Web Services• Incorporates XML superschema to store and

rapidly deploy applications• Supports UDDI and SOAP

Full use of open standards to maximize scalability, reusability and portability

Incorporates three levels of abstraction, and applies the model-view-controller paradigm

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E-BusinessE-Business PlatformPlatform

J2EE Application ServersJ2EE Application ServersJ2EE Application ServersJ2EE Application Servers

e-Business, Web Services, e-Commerce, Portals, KM e-Business, Web Services, e-Commerce, Portals, KM

J2EE J2EE ServicesServices

Application Life CycleApplication Life Cycle

Solutions Solutions

Company Overview

AltoWeb J2EE ServerAltoWeb J2EE ServerAltoWeb J2EE ServerAltoWeb J2EE Server

DeployDeployDevelopDevelop

AltoWeb Lowers the bar for J2EE ApplicationsAltoWeb Lowers the bar for J2EE Applications

RuntimeRuntime MonitorMonitor

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The AltoWeb Platform

All eBusiness applications, regardless of application type, require three integrated building blocks on top of an application server to complete an application:

• Information Logic: Input parameters, output parameters, reference data, or integration points

• Business Logic: Logical rules and application flow

• Presentation Logic: Views and interfaces for applications

AltoWeb’s Platform automates these three logic components

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The AltoWeb Framework

Information Logic

Meta Objects

App

Ser

verA

pp Serve r

BusinessLogic

PresentationLogic

SimultaneousUser Interfaces

App Server

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Web Server

Application Server

Client-side presentation

Internet services

Application, transaction and data access services

Back-end data

Complex Code:Java, SQL, HTML, Perl,

JSP, CGI, XML….

What’s the problem today?

public void ejbCreate(String accountId, double initialBalance,String type) {if (VERBOSE)System.out.println("ejbCreate( id = " + id() +", initial balance = $" + initialBalance +", type: " + type + ")");this.accountId = accountId;this.balance = initialBalance;this.type = type;}

public void startElement(String name, AttributeList attrs) throws SAXException { if (attrs != null) { int len = attrs.getLength(); for (int i = 0; i < len; i++) { trade.put(attrs.getName(i), attrs.getValue(i)); } } }

RDBMS WebServer

HTMLXMLServer

ERPFile

Server

Java JSP XML HTML Wireless PDA

BEA/WebLogicIBM/WebsphereJBoss

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Web Server

Application Server

Client-side presentation

Internet services

Application, transaction and data access services

Back-end data

What’s the Solution?

RDBMS WebServer

HTMLXMLServer

ERPFile

Server

AltoClient Java/JSP XML HTML Wireless PDA

BEA/WebLogicIBM/WebsphereJBoss

AltoStudio AltoServerAltoWeb eBusiness Platform

Information logic, business logic, presentation logic

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Java Pet Store – The 10X Story

THE Standard J2EE Application

• Basis for J2EE Blueprints book and white papers

• Basis for JavaOne Deployathon exercise to prove Application server portability

• Basis for J2EE server certification tests

• Demonstrated in Larry Ellison’s JavaOne 2001 keynote

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How much work with Standard J2EE?

Server Side• 63 handwritten Java classes• 21 handwritten Java interfaces• 8,297 handwritten lines of Java code

Client Side• ~200 lines of Java code embedded in 35 Java

Server Pages• Very difficult to deal with since it is embedded inside

presentation markup

• 2,277 total lines of presentation markup (JSP)

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How much work with AltoWeb J2EE?

Server Side• 9 database-mapped MetaObjects• 17 SQL query customizations• 14 visually documented process specifications• 15 lines of Java code

Client Side• Used existing JSP presentation• Removed client Java code, improving maintainability• Reduced overall markup quantity by 17%

Development Effort• 3 man-weeks for novice AltoWeb developer

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Productivity Increases Rapidly

Producing Java Pet Store Server and Presentation Code with IDEs Requires 211 Days or 10 Man-Months of Effort *

* One developer producing 50 lines of code a day, 10,574 lines of code

AltoWeb Requires 4 Man-Weeks, Including Training

Engineering Effort ComparisonJava Pet Store

0

40

80

120

160

200

Per Application

Man-Days

AltoWeb

IDE

10 X Productivity Improvement

Applications Created by Four Development Engineers

Per Year, Java Pet Store

05101520253035404550

1 2 3 4 5 6 7 8 9 10 11 12

Months

Number of Applications

AltoWeb

IDE

10 X Productivity Improvement

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Return on Solution Effort

AltoWeb Has An Immediate Payback

Savings Grow With Each Application

9101112

Development Cost ComparisonJava Pet Store

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

1st Project SubsequentApplications

000's

AltoWeb Cost

IDE Cost

Cumulative Cost ComparisonJava Pet Store

$0

$100

$200

$300

$400

$500

$600

$700

$800

1 2 3 4 5 6

Number of Applications

000's

AltoWeb Cost

IDE Cost

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“Best Practices” in a box

A standard way to build J2EE applications Separation of interfaces strictly enforced:

model, view and controller A standard, reusable library of enterprise

functionality Standard deployment, management,

monitoring across all J2EE applications Code reviews and audits are quicker, simpler

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Consider this JSP page…

<%@page … %><HTML><BODY><% try{ Integer userId = (Integer)session.getAttribute(“id”); Context ctx = new InitialContext(); MyEntityBeanHome home = (MyEntityBeanHome )ctx.lookup(“SomeJNDILookupString”); MyEntityBean ejb = (MyEntityBean)home.findByPrimaryKey(userId);%>Hello<% out.println(ejb.getUserName()); } catch(Exception e){%><!-- error -->Something is wrong:<% out.println(e.getMessage()); }%></BODY></HTML>

<%@page … %><HTML><BODY><% try{ Integer userId = (Integer)session.getAttribute(“id”); Context ctx = new InitialContext(); MyEntityBeanHome home = (MyEntityBeanHome )ctx.lookup(“SomeJNDILookupString”); MyEntityBean ejb = (MyEntityBean)home.findByPrimaryKey(userId);%>Hello<% out.println(ejb.getUserName()); } catch(Exception e){%><!-- error -->Something is wrong:<% out.println(e.getMessage()); }%></BODY></HTML>

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So, what’s wrong?

Independence of interfaces• Presentation, control flow and business logic are

intermingled

Reuse• Nothing can be separated out for reuse

Teamwork• The author needed to know the whole J2EE stack

Change• Change anywhere means change everywhere

Performance• Distributed object calls being made from the browser

…but it’s totally J2EE compliant!!!

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Changing applications today…

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Consider this JSP page…

<%@page … %><HTML><BODY><%try{Integer userId = (Integer)session.getAttribute(“id”);Context ctx = new InitialContext();MyEntityBeanHome home =

(MyEntityBeanHome )ctx.lookup(“SomeJNDILookupString”);MyEntityBean ejb = (MyEntityBean)home.findByPrimaryKey(userId);

%>Hello<%

out.println(ejb.getUserName());}catch(Exception e){

%><!-- error -->Something is wrong:<%

out.println(e.getMessage());}

%></BODY></HTML>

Steps to change the EJB support class without AltoWeb• Understand the application and related standards

• the application flow, since a series of pages are dependent on the previous one• the underlying J2EE Specifications and the application framework from the data

layer through to the presentation layer JDBC JNDI EJB Servlet …

• the application framework API and the data layer API • the deployment rules, including specified location, for this EJB• application error handling reflected on the page

• Implement your changes• Change the EJB source code• Compile the EJB• Deploy the application with vendor-specific tools• Shut down and restart the server• Test functionality and graphic design on the deployment server• Repeat the above steps if necessary• Release to production

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Changing applications with AltoWeb

Steps to change an AltoWeb application• Locate the component to be changed

• This is typically at the data access or business logic level• AltoWeb provides a visual model of the entire application

• Change the component using point and click configuration settings• Save the changes

• Component changes are reflected immediately across an application

• Test the application• Release to production

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“Organizational memory” in a box

Standard architecture helps new people understand applicationsVisual environment exposes application flowIncremental testing exposes application functionality at all levels

RuntimeRuntime PlatformPlatform

J2EE Application ServerJ2EE Application ServerJ2EE Application ServerJ2EE Application Server

AAllttoo

SSeerrvveerr

e-Business, Web Services, e-Commerce, Portals, KMe-Business, Web Services, e-Commerce, Portals, KM

J2EE J2EE ServicesServices

Reusable ComponentsReusable Components

Optional 3Optional 3rdrd Party Party ToolsTools

Solutions Solutions

AltoWeb® e-Business Platform: Raising J2EE to the Business Level

Developer- IDE

- Modeling

Developer- IDE

- Modeling

Web Designer- Authoring

Web Designer- Authoring

Business Analyst- Business Logic

(Assembly)

Business Analyst- Business Logic

(Assembly)

IT Administrator- Runtime Monitor

& Manager

IT Administrator- Runtime Monitor

& Manager

VersioningRepository MonitoringAdministration

Component, ClassManagement

RuntimeManagement

DeploymentAssembly,

Configuration

Core Runtime Services

Administration Services

Lifecycle Management Services

PresentationLogic

Information/AccessLogic

Business Logic

Core Application Components

Controller ConnectivityBusiness Process Flow

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AltoWeb’s Application Architecture

BrowsersJavaApps

WirelessApps

XML

Clients

Client InterfaceDynamic

DataActionsHTML

Data ConnectorsSQL File Web HTML XML Custom

Datasources

Process Management

AltoServer

Object Management

MetaObjects XML Queries

ProcessRepository

WorkflowPage

Assembly

AltoStudio

Servlets, JSP, HTML, XML

EJB, JDBC, JNDI, XML, UDDI, SOAP

A

PI

AP

I

A

PI

AltoStudio

AltoMonitor (2.5)

AltoDeploy

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Major Milestones• First Customer: Brocade Communications.

• Purchase order for 104K received.• SAN ROI Application developed by AltoWeb Professional

Services was completed and approved by Brocade June 7.

• Ford Motor Company was the first AltoWeb customer to deploy an application built with our platform

• Version 1.2 was our G.A. product.• Version 2.1 was released for JavaOne.

• New Website went live ahead of target date. • Product has been Downloadable since March 26.

• Over 370 download requests received so far.

• Early Adopter Program is complete. • Ford purchased, Witness should issue a PO in August

• First demo of Web Services at JavaOne in June.

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Technology Partners

• Intel • Early investor from Intel 64 Fund

• BEA Systems• WebLogic is the main Application Server for the AltoWeb Platform• We are licensed to embed WebLogic to our product

• IBM • In May we became one of three beta sites for the J2EE version of Websphere• We plan to have a relationship with IBM similar to the BEA relationship

• Sun • J2EE Certification

• HP • Solution and Alliance Partner

• JBOSS – Free Application Server for V 2.0• RosettaNet (Intel Sponsored Membership)• Accenture

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Company Overview

The AltoWeb platform was successfully implemented at all early adopter accounts• Ford Motor Company, Witness Systems (ISV),

Satyam (SI), Euclid (ASP) and Stanford University

• Product GA was released in 2Q01

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Company Overview

Software downloads are a key part of our market penetration strategy:• Qualified Downloads become very effective sales leads

• And result in efficient sales efforts

• Downloads maximize exposure within the JAVA development community

• 30 day Evaluation License Modeled after WebLogic

Sales are Generated through Multiple Channels:• Direct Sales to Enterprise IT Organizations• Systems Integrators• OEM/VARs• Software Companies (ISV) developing applications• ASP/MSPs

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Customer Roadmap

Previously• During our Early Adopter program we worked with

Enterprises, Independent Software Vendors, System Integrators and ASP/MSP’s to develop GA release 1.2

Currently• Installed GA 1.2 at five early adopter accounts• Brocade Communications was our first customer• Ford Motor Co. deployed the first AltoWeb Application

Plans for the balance of 2001• We manage sales forecasts through a sales pipeline report, and

we are actively working to grow the pipeline from $1.9M in early April to more than $4M by the end of July

• Current pipeline customers include Brocade Communications, Ford Motor Company, GM, ADP and Fannie Mae

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Sales Update / Pipeline

(Inserted in handouts)

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Product Roadmap

Component Development

Component Customization

•Key Components for Financial Services, Telecom and Retail

•First Components Assembled into Significant Business Functionality for Target Customers

•Support for Multiple Application Servers•Application Deployment•Server Manager•Downloadable

AltoWeb e-Business Platform 2.15/31

Web Services Enterprise-wide Monitoring/ReportingDirectory and Application ManagementTeam DevelopmentTransaction SupportVersion ControlJMS SupportData Connector API

AltoWeb e-Business Platform 2.5Q3

•Support IBM’s WebSphere

•Packaged Business Domain Functionality•Expanded Application Server and Infrastructure Functionality•Workflow Support•Component Repository•J2EE Connectors for EAI (JCA)•Content Management

AltoWeb e-Business Platform 3.0Q4

•Ports to Additional J2EE Application Servers and Operating Systems

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Potential Competitors

AltoWeb is uniquely positioned• Through the breadth of our Web Services solution

and our J2EE-based technology

Competitors with a similar message• Neuvis, Bowstreet, Versata

Application Server Companies are partners• BEA, IBM, iPlanet, HP, Oracle

Solution providers could become partners• Siebel, Vignette, Blue Martini, Vitria, Tibco, Sybase,

Broad Vision, Oracle, etc.

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Open Standards

Interoperability&

Legacy Integration

Advantages of J2EE… Without the Complexity, and On a Single Platform

BusinessLevel Focus

J2EE PlatformIndependent

PortableComponents

Leverages Investments

Scalable&

Extensible

Unified RuntimeEnvironment

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ENTERPRISE• Seamless Integration• Efficient resource utilization• Streamlined processes

SYSTEM INTEGRATORS• Rapid solution delivery•Reusability•Standard environment

EXCHANGES• Web Services• Reach into the enterprise• Multiple vendor / marketplace interaction

OEM/VAR• Partner with the customer•Advanced merchandising•Dynamic supply chain

SOFTWARE VENDOR• Efficient e-Business platform• Reduced time to market• Immediate access to new standards and technologies

Who benefits from AltoWeb

CUSTOMER• Increased control • Faster path to value• Greater confidence in vendor

© 2001 AltoWeb

AltoWeb

Product Demonstration

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Sales Models Software Licenses

• Standard Development License• Priced $2.5K per seat

• Enterprise Dev/Test License• Priced $50K for up to five developers• Includes server, deployment and runtime management• Entitles customer to 33% deployment discount for 90 days

• Deployment Licenses• Priced $60K per cpu deployed• Perhaps bundled with WebLogic or others

• ISV fee a percent of revenue• ASP fee a monthly license fee

Professional Services - T&M Maintenance and Support - 18% of List Price

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Market Opportunity The Gartner Group estimates that e-business

applications will consume 30% - 50% of organizations’ IT budgets over the next five years• 79% of the cost is based on people

E-Business applications are difficult to manage• Web enabled applications are complex

• Integration of legacy systems• Involve experts from several disciplines

• Web application requirements are subject to rapid change

• Customer requirements change quickly• Standards evolve at a rapid pace

• There is a lack of mature e-business methodologies

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Typical Roles in a e-Business Project

Design Develop Test Deploy Manage Change

Project Manager

e-Business Analyst

System Architect

Database Designer

Application Developer

Java Component Developer

GUI Designer

Database Administrator

System Administrator

QA/Test Engineer

Legend: Dark grey indicates100% involvement; lighter grey indicates 25-75% involvement

The team can now work on the same problem…using a common platform The team can now work on the same problem…using a common platform