PRIVATE AND CONFIDENTIAL TECHNOLOGY FOCUS. BROAD REACH. OPTIMAL RESULTS.

Business Intelligence: Analytics Platforms

Peter Falvey

Managing Director

peter.falvey@falveypartners.com

P. 1.617.598.0437

Jason Myler

Managing Director

jason.myler@falveypartners.com

P. 1.617.598.0438

Jeffrey Cook

Vice President

jeffrey.cook@falveypartners.com

P. 1.617.598.0439

2

Overview

Market evolving: Enterprises are moving away from legacy solutions and towards a growing

crop of disruptive vendors (e.g. Tableau, GoodData) addressing a new set of BI needs like

mobile, BigData, cloud and social

BI remains a top priority for IT: Having neglected BI spending over the past few years,

enterprises are refocusing on growth initiatives and upgrading to more robust BI solutions will

remain a key priority for IT spending

- New cloud-based solutions touting ease-of-use will also extend the appeal of BI solutions to

the mid-market, who will play a major role in overall market growth

• Next-gen solutions are being funded: Disruptive vendors that are gaining traction are receiving

significant funding from VCs to take advantage of the opportunity

Legacy players need to catch up: Larger legacy players (SAP, Oracle, IBM, etc.) will look to

acquire more nimble independent vendors in an effort to keep pace with the rapid evolution of the

BI analytics market

The BI analytics market is quickly moving to the “2.0” phase of its lifecycle which we

believe will usher in a wave of investment and consolidation activity

3

Market Evolution

The shift to next-generation BI platforms is underway, displacing many legacy

solutions vendors who are scrambling to catch up to vendors like Tableau

MARKET EVOLUTION

2000 - 2006 2011+

BI 1.0 BI 2.0

2007 - 2011

Rise of BI 1.0 Tools Consolidation Shift to BI 2.0 Tools

BI becomes mainstream and

widely adopted at enterprise level

Industry fragmented, with many

independent vendors of scale

Systems are on-premise and

complex; core functionality

revolves around reporting and

OLAP, some predictive analytics

Widespread consolidation in 2007

- BusinessObjects (SAP)

- Hyperion (Oracle)

- Cognos (IBM)

Many BI 2.0 companies founded

By 2012, many of the legacy

vendors miss targets,

acknowledging a widespread shift

to next-generation solutions

Major demand for next-generation

solutions targeting the business user,

offer predictive analytics, embrace

BigData, cloud and mobile

Numerous anecdotes of enterprises

upgrading legacy systems like SAP

and IBM

Tableau goes public, others receive

funding

Legacy vendors enter rapid

development to play “catch up”

4

Market Size

The BI analytics market is anticipated to grow at 10% annually as BI continues to be a

top spending priority for IT and as legacy solutions are upgraded

MARKET SHARE, TOP 10 VENDORS MARKET SIZE

Source: IDC, Gartner

9.3% CAGR

10.7% CAGR

5

Trends Shaping BI 2.0: Front-End

The end-user of analytics in the enterprise has changed drastically, with businesses

demanding more robust functionality for more users E

RP

CR

M

Un

str

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ture

d

SC

M

…

Data Warehouse / Marts

Users

STACK

Rise of Business User: Analytics increasingly used

by business users demanding robust visualization and

presentation tools; increasing use at departmental

level

Self-service: Users are demanding the ability to run

analysis without intervention from IT

Cloud: Organizations, particularly at SMB level, are

looking to cloud-based tools

Mobile: Expectation that analytics can be accessed

via desktop and mobile /tablet

Social: Ability to collaborate now a necessity

Analytics Packages

FRONT-END TRENDS

6

Trends Shaping BI 2.0: Back-End

The explosion of data and advent of the real-time nature of analytics is also forcing

analytics vendors to adapt to a more complex data environment E

RP

CR

M

Un

str

uc

ture

d

SC

M

…

Data Warehouse / Marts

Users

STACK

BigData: Growing adoption of technologies like

Hadoop are driving the ability to use vast amounts of

unstructured data (e.g. website clicks) as a key input

in analysis

Real-time analytics: Technological advancements

such as in-memory databases are enabling real-time,

next-generation capabilities such as predictive

analytics and event processing

Proliferation of data sources: The growing number

of enterprise applications is providing a wealth of data

that complements analysis of legacy data sets

Analytics Packages

BACK-END TRENDS

7

Market Map

Scale based on company funding and revenue, where available

Scale

L

arg

er

Sm

alle

r

Functionality BI 1.0 BI 2.0

<$25M

$25M - $100M

$100M - $500M

$500M+

8

How We See the Market Playing Out

The BI market will undergo a paradigm shift over the next few years as BI 2.0 solutions

gain hold and larger players look to play catch-up

Continued

Acceleration of BI 2.0

Players

Legacy Vendors Will

Maintain a Foothold

Solutions More

Widely Adopted at the

SMB Level

Next Wave of

Consolidation Starts

Legacy players (SAP, Oracle, IBM, etc.) acquire established platforms

and smaller vendors to upgrade platforms

Growing next-generation vendors (TIBCO, Qlik, etc.) acquire rising

technologies to extend their lead

Well-funded, disruptive independent vendors (Tableau, GoodData)

continue to take share from legacy solutions and move up-market

Vendors see use at the departmental level as a complement to

enterprises ‘standard BI infrastructure

Established vendors with existing footprints continue to control the

“plumbing” and basic reporting function of BI

Vendors will look to maintain foothold by upgrading product offering

through both in-house innovation and acquisition

SaaS-based, easy-to-use solutions extend the appeal and value to the

mid-market, who will increasingly drive growth of the overall market

BI 2.0 vendors will control the majority of the share in these markets

given their value proposition

9

M&A Interest Comes from Several Angles

DATA & INFRASTRUCTURE APPLICATION VENDORS

• Vendors controlling the data and infrastructure layer

• Focused on platform acquisitions to move up the technology

stack towards the application layer

• Enterprise application vendors

• Will look to acquire front-end solutions to broaden product

offering; pursue select vertical acquisitions

DIVERSIFIED TECHNOLOGY / FULL-STACK BI PURE-PLAY BI VENDORS

• Diversified technology vendors offering solutions across the BI

stack, from hardware to applications

• Will look to do technology tuck-ins as well as acquire platforms

• Independent BI vendors of scale looking to build BI product

offering across the technology stack

• More focused on tuck-in technology / functionality acquisitions

10

Recent Acquisition Activity

Target Acquirer Date Solution

June 2013 Visual analytics and BI

June 2013 Custom analytics

June 2013 Streaming analytics software

May 2013 Advanced visualization for data

March 2013 BI and analytics software

February 2013 Process automation for BI software

October2012 Big data search and analytics

September 2012 Personalized SaaS BI

August 2012 Big data analytics

June 2012 Metadata management

May 2012 Real-time network data analytics

April 2012 Big data predictive analytics

April 2012 Data management and BI for security

October 2011 Unstructured data and BI for web commerce

September 2011 Data analytics for financial organizations

August 2011 Intelligence analysis for investigations

11

Recent Investment Activity

Target Date Amt. / Total Raised Investors

Jul 2013 $4.1M / $5.2M Columbus Nova Technology Ventures, Razor’s Edge, CIT

Jun 2013 $22M / $74M TOTSV Ventures, Adreessen Horowitz, General Catalyst

Jun 2013 $8M / $13.5M Draper Fisher Jurvetson, Atlas Venture

May 2013 $45M / $96.3M Bessemer, Norwest Ventures Partners, ONSET Ventures

May 2013 $12M / $18M Toba Capital, SAP Ventures

May 2013 $6.5M / $7.7M Trinity Ventures, SoftTech VC

May 2013 $254M (IPO) New Enterprise Associates was the seller

Apr 2013 $39M / $86.5M Investor Growth Capital, QuestMark Partners, Intel Capital

Apr 2013 $10M / $23.5M Battery Ventures, Opus Capital, Genesis Partners

Mar 2013 $2.5M / $10.6M Undisclosed

Feb 2013 $1M / $1M (Debt) Intel Capital, JMI Equity, Others

Dec 2012 $9.2M / $12.4M Sequoia Capital, IDG Ventures India

Nov 2012 $20M / $27.2M Battery Ventures, Sutter Hill Ventures, Andreessen Horowitz

Oct 2012 $23M / $60M New Enterprise Associates, Benchmark Capital, Others

Oct 2012 $4.4M / $5.6M TCV Capital, Analytics Ventures

May 2012 $26M / %53.3M Sequoia Capital, Hummer Winblad, DAG Ventures

12

Falvey Partners Overview

FOCUS SELECT TRANSACTION EXPERIENCE

December 2011

Has acquired

July 2012

Has been

acquired by

September 2011

Series D

Convertible

Preferred Stock

Led by

September 2012

Has been

acquired by

A portfolio company of

July 2011

Has been acquired

by a portfolio

company of

April 2011

Has been

acquired by

July 2011

Has been

acquired by

February 2011

Growth equity

investment from

July 2011

Has been

acquired by

March 2011

Has divested

its diagnostic

solutions unit

November 2010

Has received an

investment from

A portfolio company of

October 2010

PGI Notify and Send

platforms acquired by

August 2010

Two divisions have been

acquired by a portfolio

company of

April 2010

Has been

acquired by

August 2010

Series C

Convertible

Preferred Stock

Led by

SERVICES

Sell-side or buy-side M&A

Growth capital raising

Board and corporate advisory

SECTOR

Software / SaaS

Tech-enabled business services

IT services

Internet / digital media

COMPANY TYPE

$50M - $250M in enterprise value

Growing, with established scale

Profitable or near-term path to profitability

Falvey Partners is a leading advisory firm serving

mid-market clients across technology sectors

Founded in 2012 by Peter Falvey and key members of the Morgan Keegan / Revolution Partners team

Falvey Partners professionals have closed dozens of software transactions representing billions of

dollars in transaction value