strategy to grow market share: building an …/media/files/s/software-ag-ir/... · webmethods...

STRATEGY TO GROW MARKET SHARE:BUILDING AN IOT PARTNER ECO-SYSTEM

Karl-Heinz Streibich

CEO

Capital Market Day 2018

March 12, 2018

© 2018 Software AG. All rights reserved.

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SAFE HARBOR


This presentation includes forward-looking statements based on the beliefs of Software AG management.

Such statements reflect current views of Software AG with respect to future events and results and are

subject to risks and uncertainties. Actual results may vary materially from those projected here, due to factors including changes in general economic and business conditions, changes in currency exchange, the

introduction of competing products, lack of market acceptance of new products, services or technologies and

changes in business strategy. Software AG does not intend or assume any obligation to update these

forward-looking statements.

This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other way

securities of Software AG or any of the companies that are members of the Group at present or in the future,

nor does it form part of such an offer and it should not be understood as such. This presentation does not

constitute an offer of sale of securities in the United States of America. Securities may not be offered or sold

in the United States of America without registration or exemption from registration in accordance with the U.S. Securities‘ Act of 1933 in its currently valid form.

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DISRUPTION: DIGITAL CHALLENGERS DRAW A WEDGE BETWEEN COMPANIES AND THEIR CUSTOMERS


DIGITAL DISRUPTION

Any industry...RetailHotels Banks Insurance

DIGITAL DISRUPTION

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DIGITAL DILEMMA FOR ESTABLISHED COMPANIES:IN EVERY INDUSTRY


» Digital

business

models are

written in

software

» Challenge:

From IT

Supplier

relations to

Digital Eco-

Systems

» Think Digital

Architecture

First…

Middleware

Centricity

Current challenges

» Differentia-

ting use-

cases:

Artificial

Intelligence

(AI) and

Blockchain

Next big thing

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Systems of RecordsClassic IT

Business Logic

Enterprise

Applications

Digital innovations Data Logic &

AlgorithmInternet of Things (IoT) Platform

Integration centric micro services architecture Integration

Logic

Integration &

Enterprise Process Automation

MASTERING THE CHALLENGE OF DIGITAL TRANSFORMATION:FROM CLASSIC IT APPLICATIONS TO NEW DIGITAL PLATFORMS

… …



Note: RoW = rest of world; Source: IDC: Gartner: ABI; CMI; BCG IoT market model

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WIN MARKET SHARE WITH IOT ECO-SYSTEM PARTNERSHIPSKEY SUCCESS FACTORS


Industry Eco-Systems

Leading technologyReliable, scalable, functional

CollaborationSharing synergies

Awareness

Known for success

Neutrality

No lock-in

Vertical industry solutions

Standards

Low barrier to entryUse-based pricing


2007 2008 2009 2010 2011 2012 2013 2016 2017

€1.2B INVESTMENTS so far…

DEVICE CONNECTIVITY & MANAGEMENT

ENTERPRISE & CLOUD INTEGRATION

REAL-TIME ANALYTICS & VISUALIZATION

WORKFLOW AUTOMATION

Cumulocity IoT

SOLUTION ACCELERATORS

SOFTWARE AG’S SUCCESS IN THE DIGITAL WORLDLEADING TECHNOLOGY BUILT ON M&A INVESTMENTS


The Forrester Wave™: HYBRID INTEGRATION

(SAG WebMethods)

The Forrester Wave™: IN MEMORY DATA GRID

(SAG Terracotta)

IoT Solutions(SAG Cumulocity*)

The Forrester Wave™: STREAMING ANALYTICS

(SAG Apama)

*Cumulocity is the IoT solution portfolio of Software AG encompassing Hybrid

Integration, In-Memory Computing and

Streaming Analytics

MARKET AWARENESS OF LEADERSHIP IS BUILDING UPBEST IOT TECHNOLOGY PARTNER IN THE MARKET

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VERTICAL INDUSTRY SOLUTIONS AND STANDARDS


MACHINERY & TOOLING

�Machine

Learning

�Connected

Manufacturing

�Predicitive

Maintenance

PRODUCTION

� Individualized

production

�Digital Twins

RETAIL

�Consumer

centric supplychains

TELCOS

�Platform-as-a-

Service

�Device

connectivity

(Cities and

citizens)

MOBILITYMOBILITY

� Connected cars

� Autonomousdriving

� Mobility service

� Electric cars

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ADAMOS.COM


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IT AND OT: HEAVY IOT INVESTMENT BUT NO DOMINATION(YET!)


IT Vendors OT Vendors


IOT MARKET AWARENESS FOR SOFTWARE AG

Computerwoche

Handelsblatt

IT & Production

Big Data Insider

Stuttgarter NachrichtenHeise Online

Golem

European Business Review

Silicion.de

IS BUILDING UP

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DIGITAL PRIORITIES FOR EVERY INDUSTRY


4. Implement open IoT framework for new digital

business solutions

3. Extent IT architecture: From app-silos to middleware

centric architectures

1. CEOs and Business Divisions have to think

„Software First“, in every industry

2. Make your products smart for new data centric

digital business models

5. Rebuild your IT know-how: Beyond admin IT and

embedded product software….business IT

Cumulocity Edge Analytics…Portfolio

We are SOFTWARE!

Software AG contribution

WebMethods Middelware…Portfolio

Software AG’s leading Cumulocity IoT

framework…Portfolio

Software AG’s Global Consulting

Services…Portfolio

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…AND THE NEXT BIG THINGS!


Artificial Intelligence

based

applications

Blockchainbased

intercompany

processes

Innovative Public Sector Platforms

(e.g. Darmstadt

Digital City)

strategy to grow market share: building an …/media/files/s/software-ag-ir/... · webmethods...

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