Vignette John Tullis De Paul Instructor john d

Vignette John Tullis De. Paul Instructor john. d. tullis@us. arthurandersen. com Copyrighted material John Tullis

Summary n Vignette è is committed to a phased integration with MQSeries middleware è is driven by customer demand in support of their goal to expand customer base and capitalize on the growing e-Relationship market è Net. Commerce l GA scheduled for 11/99. l Represents greatest short term opportunity to Vignette and IBM è DB 2 UDB integration and AIX port l committed and will follow in early Q 1/2000 è Web. Sphere integration scheduled in two phases: l TCL to Java bridge - Q 2/2000 l "true" Web. Sphere integration - not yet designed Copyrighted material John Tullis

Vignette Company Overview n n n Vignette Corporation (Nasdaq: VIGN) è Key player in content management and personalization marketplace è Products and Services Allow Businesses to Use Web as New Channel for Customer Acquisition and Retention. l "Internet Relationship Management" Software (ERelationships). l building "2 nd generation" web sites Products: è Vignette Story. Server 4 è Vignette Syndication Server (VSS) Revenue: è Increased 364% to $24 M in 6 months ending 6/99 (from $5. 2 M in 6 months ending 6/98) attributed to growth in client base è 50/50 software and service Copyrighted material John Tullis

Vignette Company Overview n n Client Base è Grew from 108 in 2 Q 98 to 296 in 2 Q 99 è Combined with Increase in Avg SW Deal Size ($250 K) of New Customer Orders - moving to 3/1 services to software "deals" Key Markets è finance (plays well for Web. Sphere and DB 2 UDB) è. coms (plays well for Net. Commerce) Other Financial Info ä Despite significant revenue growth Vignette has incurred significant losses. ä Accumulated debt of $66. 7 Million as of June 30, 1999 Competition: Interwoven, Broadvision Copyrighted material John Tullis

What CM tools are being using today? Source: Forrester “ What tools are you using to manage your content? (multiple responses accepted) 1997 1999 Manual process 74% Informix 8% Netscape 8% Front. Page 8% Web. Analyzer 8% Oracle Site. Mill MS SQL All others 8% 6% 4% ” Manual process Vignette Story. Server Front. Page Allaire Home. Site Oracle Allaire Cold Fusion Microsoft Site Server Adobe Go. Live All others 10% Copyrighted material John Tullis 54% 8% 6% 4% 4% 4% 20%

Vignette Story. Server n Story. Server è Web. Sphere & Net. Commerce & MQSeries products are being integrated with Story. Server 4: a platform for building on-line business applications, decision support and enterprise integration services è Story. Server provides*: l Content Management Services l Lifecycle Personalization Services l Decision Support Services l Enterprise Integration Copyrighted material *details in Background Section at John the Tullis end of this presentation

Evolving Content Management Options Summary: Vignette vs Interwoven thoughts n Vignette è broader functionality è broader market appeal n Interwoven è narrower market space è more logical choice for brand management, direct sales Copyrighted material John Tullis

Story. Server Function Descriptions n n Content Management è provides production, delivery and management of content l Story. Server provides workflow, notification, and user management services for team -based production, delivery, and management of content. Team members can collaboratively build reusable content components that are then dynamically assembled and delivered via the Web server. Together with a high-performance, patented caching mechanism and support for major Web servers and relational databases, content management services ensure the rapid development, scalability, and performance of highly trafficked Web businesses. Life Cycle Personalization è allows you to personalize content presented to customers starting from their first visit (customized to their web browser) to the very specific content based on their behavior data and personal information they've provided. l Lifecycle personalization enables you to attract and engage customers by presenting content appropriate at each stage of the customer lifecycle: from initial visitor to long-term customer. It provides agents to help you automatically adapt your site to the user's environment, including operating system and browser configuration. Personalization services allow you to use behavior data to infer visitors' interests, and update navigation and content accordingly. Story. Server software also provides the ability to recommend content based on the choices of visitors with similar interests. As a result, you can personalize content to the evolving needs of your custom Copyrighted material John Tullis

Story. Server Function Descriptions n n Decision Support è provides reports on what content and web pages are accessed/how often/ by type of visitor so you can determine how effective your content is. l Decision support services provide a business-level analysis of customer behavior to help you gauge how effectively your content attracts and retains visitors. You can generate reports based on custom criteria to determine what content is accessed, how often, and by which type of visitors. Story. Server openly stores all visitor data in a relational database so you can use your choice of third-party reporting tools for business analysis. Enterprise Integration è integration with third-party products and legacy apps l Story. Server provides an extensible application environment to communicate with third-party products and legacy applications. You can also create extensions and adapters to integrate best-of-breed products, such as search engines, e-commerce servers, and application servers. Copyrighted material John Tullis

Content Management Definition äcombination of processes, supporting tools and architecture äto help contribute, collaborate on and control page elements l text, graphics, rich media and applets and the structure and style of websites. Adapted from: Forrester Research, 2/99 Content Management Passes Web Application Development In Importance Relative Importance 40 Enterprise integration Content management 30 Web application development Security 20 Site management Performance 10 Year-end 1997 Year-end 1999 Year-end 2001 Year-end 2003 Source: Gartner Group Copyrighted material John Tullis Content management rivals enterprise integration as a top need for application server environment

Importance of Content Management To Web Application Services & Merchant Servers n n Content management is an important driver of application server sales: è SIs are installing CM at 80%of their engagements (Razor. Fish) Competitiveness - WS competitors are offering CM solutions è Allaire, Broad. Vision, & Microsoft provide content management as part of their application server solutions Content management is a prerequisite for other important drivers of application server sales è Enterprise information portals è Personalization Content management is a strategic control point: l It is the middleware layer that links customer's legacy systems and e-business systems l By controlling the content management system, a consulting organization will have a higher likelihood of winning the presentation, application, & transaction systems (Net. Commerce, Web. Sphere, etc. ). l CM decision drives runtime decision, not vice versa l Switching costs for CM system are actually higher than for runtime Copyrighted material John Tullis

CM Market Characteristics Size: $561 M will be spent on web development life cycle management software in 2001, CAGR of 83% (Source IDC 1999) Major competitors: Broadvision, Vignette, Open Market (Future Tense), Allaire, Interwoven, Net. Objects, Microsoft Major trends: Commerce management and content management markets converge Major document management vendors enter the market Personalization, EIP and CRM initiatives drive demand for content management Analysts: Gartner Group: "By year-end 2003, tool suites and platform offerings from major vendors will have absorbed the low-to-mid range of formerly independent product categories, including Web-content management, load balancing and full-text search (0. 7 probability)" Channel: Content management is a need on a "significant" number of engagements for Bowne Internet l Razor. Fish reports that 80% of their engagements include content management requirements l Copyrighted material John Tullis