Transcript Document
FrontRange Corporate Overview
Michael McCloskey Customer Webinar June 14, 2005 1
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FrontRange: The SME Market Leader FrontRange Solutions is the leading independent provider of service management and CRM applications designed specifically for the SME and distributed enterprise markets.
Creating the Next Generation FrontRange is creating the next generation Business Application supplier by providing service management, CRM, and voice applications on an integrated platform which provides our customers with: Enterprise Class Functionality Fast Implementation and Fast Time-to Benefit Low Total Cost of Ownership High Ease-of-Use Affordability
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FrontRange- Business Update Key Strategies and Initiatives
Michael McCloskey Customer Webinar June 14, 2005 4
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Review of Strategic Decisions
Created a Market Leadership Strategy Targeted Customer Retention and Growth Markets Aligned Our Product Strategy to Optimize: – Our Installed Base – Large High Growth Markets – Multiple Application Strategy on a Single Platform Strengthened Team – Added New Senior Management Team-Now together almost Two Years – Added More than 200 New Employees Over Last Two Years – Great Combination of New and Existing Employees – Created a “Winning” Culture
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Review of Strategic Decisions
Strengthened Development – Created Bay Area Development Center – More Than 75 are New/added in last Two Years – Focused on Platform…..then Applications Executed New Sales Strategy – Built Hybrid/High Touch Sales Model – Created a Geographically Dispersed Sales Force – Added 39 New Sales Representatives in Last Two Years – Added Enterprise Capability to Augment Channel Strengthened Marketing – Strengthened Product Management/Product Marketing – Added 16 Marketing Employees in Pleasanton – Strong Combination of New and Existing
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Review of Strategic Decisions
Created a “Market Leader” Mentality – Winning Culture – Maniacal Focus on Execution – Strong Belief in Our Strategy Created a Global Capability – Strong Cross-Pollination Across Geographies – Released 9 Languages plus English to Fuel Expansion – Strengthened Global Customer Support Strengthened PSO – Added Significant “Enterprise” Resources – Building Pleasanton Solution Center Strengthened Financial Performance – Strong Results compared to the Industry
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FY 2005 Performance Positions FrontRange for the Future
Seven Consecutive Quarters of Sequential Growth – Licenses Up Over 110% – Revenues up Over 45% – Losses to over 10% Operating Profits Re-Built and Re-Architected FrontRange – Built New Development Capability – Built Global Sales Capability Aligned Towards High Growth Markets New Products Emerging Well Positioned for Success
FrontRange Strategic Summary
Michael McCloskey Customer Webinar June 14, 2005 9
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FrontRange Strategic Summary
We are the market leader and a global company FrontRange is designed from the ground up for the SME and distributed enterprise markets FrontRange product strategy provides customers with industry-leading products and a roadmap for the future FrontRange is creating a complete ecosystem around our offerings, as well as New Best Practices Applications of our Solutions We have the right strategy and management team for success We have a powerful financial model with leverage That Provides our Customers Confidence for the Future
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FrontRange: Leader in the SME and Distributed Enterprise Markets FrontRange Is the Market Leader
Global presence, partners in 49 countries, customers in 47 countries, etc.
Over 1.7M customers, over 130,000 companies, Strong brands: Goldmine and Heat FrontRange architected for the distributed enterprise
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FrontRange: Leader in the SME and Distributed Enterprise Markets FrontRange Is the Market Leader
Global presence, partners in 49 countries, customers in 47 countries, etc.
Over 1.7M customers, over 130,000 companies, Strong brands: Goldmine and Heat FrontRange architected for the distributed enterprise
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FrontRange: Leader in the SME and Distributed Enterprise Markets Proven Products/Exciting Roadmap
100,000’s successful implementations Prolific product plan/vision worthy of leadership
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FrontRange: Leader in the SME and Distributed Enterprise Markets Proven Products/Exciting Roadmap
100,000’s successful implementations Prolific product plan/vision worthy of leadership
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FrontRange: A Global Market Leader
of Fortune 100 of Fortune 500 of FTSE 100 brands vertical markets Partners/ Distributors in countries
FrontRange Has Produced Industry Leading Products Over Many Years
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Award-Winning Products
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Award-Winning Products
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Award Success 2004
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Award Success 2005
Over 140,000 Companies Chose FrontRange Because We Deliver Proven Products and Have a Product Vision for the SME and Distributed Enterprise Markets
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HEAT Is Used in More than 70 Industries Furniture, Home Furnish & Equipment (70)
Bell & Howell CompuWare Linens 'N Things Nintendo of America, Inc. Pioneer Electronics
Engineering/ Management (124)
Bechtel Corp Colorado Division of Wildlife Draper Laboratories New Line Cinema Corporation Raytheon E Systems
Banking (54)
BankFirst Commerce Bank Federal Reserve Bank of Cleveland Fleet Services Corp Virginia Credit Union
Membership Organizations (43)
American Federation of Teachers AARP Chicago Mercantile Exchange Focus on the Family National Association of Home Builders
Health Services (215)
Blue Cross & Blue Shield HealthNet, Inc. Johns Hopkins University Of Chicago
Education (315)
Boston College Columbia Business School Harvard Business School Loyola University Pepperdine University
Printing/Publishing (43)
Bertelsmann Services, Inc. Harcourt John Wiley & Sons, Inc.
McGraw Hill Companies R.L. Polk & Company
Retail (35)
Galyans Trading Company Nikon, Inc. Publishers Clearing House Smithsonian Zale Corporation
Government (106)
Arizona Dep’t. of Transportation City of Des Moines/Action Center City Of Fort Worth Florida Department of State New York City HRA
Food (29)
Birds Eye Foods Campbell Soup Co.
Coca-Cola Company Atlanta ConAgra Coors Brewing Company Dreyers Grand Ice Cream Land O'Lakes, Inc.
Communications (28)
Avaya, Inc.
Bell Mobility Cingular Time Warner Cable The Weather Channel
Insurance Carriers (46)
Blue Cross & Blue Shield CIGNA/Tel-Drug Systems HealthNet Investors Title Insurance Company Liberty Life Corp. 22
GoldMine Is Used in More Than 70 Industries Durable Goods (230)
Steinway & Sons Yamaha Corp. of America Michigan First Aid & Safety Co.
Mallory Company GroupComm Systems, Inc.
Banking/Credit (94)
Bank of America First Federal Bank of California First National Bank of Colorado First National Bank of Omaha
Retail (49)
Office Depot, Inc Men's Warehouse Saks Fifth Avenue
Engineering/ Management (124)
Avid Technologies, Inc.
Applied Control Engineering, Inc.
Centerbeam, Inc.
Digitek Solutions Belden, Inc. Banta Book Group Chicago Tribune John Wiley & Sons, Inc.
Telecommunications (51)
AT&T Broadband Digital World Services Sprint PCS
Personal Services (12) Publishing and Printing (51) Computers/Periph/Software & Related Services (802)
Bell & Howell Compaq Computer PC Magazine Ingram Micro Lockheed Martin
Civic/Social/Membership Organizations (51) Automotive (10)
BMW Paarlberg Motors (Pty) Ltd.
Car Mart Mexico eNissan.com Mack Trucks Wesco Manufacturing Volvo Cars Of North America, LLC
Management Consulting Services (157)
American Institute of Management BeNow, Inc.
Innovative Technology Application, Inc.
iMedia Pro Synchronicity Monster.com
Business Services (500)
Administaff All Temps Personnel Kelly Services American Lung Association Of Illinois American Red Cross Girl Scouts of the USA American Health Care Partnership, Inc.
CHSI of Nevada Data Max IDG World Expo SSI Group 23
FrontRange Has a Powerful Global Partner Network
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A Global Partner Network 203 Certified GoldMine Partners in 40+ 308
AND
Certified HEAT Partners in 24 countries countries
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FrontRange Offices GoldMine Partners HEAT Partners GM/HEAT Partners
FrontRange Recognizes That Markets Are Converging and Creating the Next Big Opportunity
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Market Convergence Is Creating New Needs
New technology is enabling new solutions
Enterprise class
application functionality with: fast time-to-benefit; high productivity and ease-of-use; aggressively priced/strong ROI; low TCO New business models (ASP)
Market Discontinuity
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New Technology Enterprise Class Applications New Models
FrontRange Solutions Meets Market Needs IT Service Management Infrastructure Management Customer Service Contact Center FrontRange Technology Platform Sales, Marketing & Relationship Management
Market Opportunity
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New Technology Enterprise Class Applications New Models
FrontRange Solutions Meets Market Needs IT Service Management Infrastructure Management Customer Service Contact Center FrontRange Technology Platform IT Service Management Infrastructure Management Customer Service Contact Center
Market Opportunity
FrontRange Technology Platform Sales, Marketing & Relationship Management Sales, Marketing & Relationship Management
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New Technology Enterprise Class Applications New Models
FrontRange Solutions Meets Market Needs Incident Change Problem Release HEAT HPD Discovery Asset Mgt.
Software Compliance IT Service Management Infrastructure Management Modular Approach Customer Service IP Contact Center Interaction Mgt.
Contact Center Campaign Mgt.
GoldMine CE Sales, Marketing & Relationship Management FrontRange Technology Platform
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New Technology Enterprise Class Applications New Models
FrontRange Target Markets
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FrontRange Market Focus IT Service Management Sales, Marketing, and Relationship Management Infrastructure Management Contact Center Customer Service
FrontRange Product Strategy
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Product Strategy
Deliver new modules to existing GoldMine and HEAT customers with complementary capability Broaden technology platform footprint to enable FrontRange to focus on new large/growth markets Enhance existing products with adjacent market functionality Implement quarterly product release cycle to improve product momentum Deliver Enterprise Class Functionality, with: – Low License Costs – Fast implementation and Time to Benefit – High Ease of Use – Low IT Costs – Customer service
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HEAT Product Strategy
Heat is a Core Product and FrontRange has made a long term commitment to HEAT Ongoing HEAT improvements protect customer investments ITSM Modules complement and extend HEAT capabilities New synergies provided by: – Contact Center – Infrastructure Management
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HEAT Product Roadmap HPK 8.0.3
HEAT 8.0.3
Polish French
HEAT 8.3.6
508 Compliance ITSM Integr.
5.0.4
Knowledge Mgmt.
HAT 8.3
Scanner Update
HEAT/ GM 7.0
compatibility
iHEAT 8.3
5.0.5 KM
Russian German Polish, Spanish, Port., Italian, French
HEAT 8.5
ATG as a Service, Web Client
Advanced Self Service HEAT 8.3.6
German, Russian, Italian, Spanish, French, Polish
6.1.0 Field Svc HEAT anywhere HEAT 8.5
German, Russian, French, Spanish, Polish, Italilan
HEAT 9.0
Variable Tier; Full data migration
FY06
Q1 Q2 Q3 Q4
FY07
Q1
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ITSM: Designed for HEAT Customers
ITSM modules complement and extend existing HEAT capabilities ITSM modules are optional for HEAT customers HEAT customers can add ITSM modules to their existing HEAT system in any combination and at their own pace New modules are compatible with HEAT 8.3
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ITSM Product Roadmap 5.0.3
Outlook, IM, IPCC, KM Lotus Notes, integration;
5.0.4
Advanced Self Service; KM BP Improvements: Improved Query Support, Quick Action
5.0.2
Polish, French Chinese
5.1.0
GMEE Int.
Queue Mgr, Scheduling
5.1
Spanish Port, Italian Japanese
5.0.5 KM
Russian German Polish (beginning of qtr) Spanish, Port., Italian, French (end of qtr.)
6.0
Failover, DiscoverNET Integration
6.0
French, German Russian, Polish Chinese
6.1.0
Field Svc PDA Support;
6.2
Analytics; Disconnected client
FY06
Q1 Q2 Q3 Q4
FY07
Q1
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GoldMine Product Strategy
GoldMine is a “Core” Product and FrontRange has made a long term commitment to GoldMine Ongoing GoldMine improvements protect customer investments New SMRM Modules complement and extend GoldMine capabilities New synergies provided by: – Contact Center – Customer Service
GoldMine Roadmap Product
GoldMine Localized (FY06)
7.0
No BDE Firebird DB Exchange Link, QuickBooks, 6.7
Chinese, Italian, French
7.1
Service Pack, Customer issue tracking 7.0 Portuguese
8.0
New UI, GoldMine Mobile 2.0
8.1
IMAP 4 Recalibration util Vertical Templates XML Profiles Report Engine 8.0 Italian, French, German, Polish, Russian, Spanish, Japanese, Chinese
8.2
Addtl DB
Support MS Small Business Server integration 8.0
Portuguese
FY06
Q1 Q2 Q3 Q4
FY07
Q1
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GoldMine Enterprise Edition Product
GMEE Localized (FY06) Internal Beta SFA
5.1.0
Lead Mgmt Oppty Mgmt Forecasting Dashboards Quoting ITSM, CE Integration
6.0
Campaign Mgmt Email Marketing Customer Service
6.1
Service Pack Enhanced Integration to IPCC 5.1.0
Ger, Spa, Fre, Ita, 5.1.0
Jap, Chi, Por, Pol, Rus
6.x
Native disconnected client Advanced analytics
FY06
Q1 Q2 Q3 Q4
FY07
Q1
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Hosted Solutions Product
MSP Platform Dependencies
MSP Lab
Architecture and Hardware Topology
Org Readiness Launch Plan
Move in to the Data Center
Beta Test
Security Audit SLA/White Paper Org Readiness Multi-tenancy Failover Load Balancing
ITSM 5.1 MSP
Billing & Provisioning Partner Access Localized ITSM MSP
SMRM 6.0 MSP
ITSM MSP Service pack MSP Dashboard SMRM 6.0 MSP Live
ITSM 6.0 MSP
SMRM MSP ServicePak
FY06
Q1 Q2 Q3 Q4
FY07
Q1
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FrontRange Foundation
Great technology now combined with great applications Differentiates vs old and closed architectures from Siebel, BMC, CA, Oracle, Best, Peregrine The right tools for partners: – Web based – .NET
– XML and Web Services – BPML – Open Database
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Summary
Customer investments in HEAT and GoldMine are protected HEAT and GoldMine Roadmaps provide new releases through 2006 and beyond New ITSM modules are available to current HEAT customers New Infrastructure Management and Communication Management modules complement HEAT New SMRM modules will be available to GoldMine customers in October Hosted solutions coming in late 2005/early 2006
Product Strategy & Roadmap
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FrontRange Product Families
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FrontRange Solution Families IT Service Management Infrastructure Management
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Incident Change Problem Release Availability Configuration SLM HEAT & HPD SM ASP Network Patc h Inventory Asset Software Compliance Lease/Contract PM IM ASP Customer Service Contact Management Entitlement Workflow Incident Knowledge Content Voice SS Web SS CS ASP Contact Center Sales and Marketing Relationship Management IP Contact Center Interaction Management Self Service Historical and RT Reporting Contact Management Analytics Knowledge FCC ASP Lead Management Quoting Campaign Management Sales Management Forecasting Analytics GoldMine CE GoldMine Enterprise GoldMine ASP
Product Strategy Summary
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Solution Architecture Apps Solution Set Platform Incident Change Problem Release Availability Configuration SLM HEAT & HPD SM ASP IT Service Management Network Patch Inventory Asset Software Compliance Lease/Contract PM IM ASP Infrastructure Management Contact Mgt Entitlement Workflow Incident Knowledge Content Voice SS Web SS CS ASP Customer Service IP Contact Center Interaction Mgt Self Service Reporting Contact Mgt Analytics Knowledge FCC ASP Contact Center Lead Mgt Quoting Campaign Mgt Sales Mgt Forecasting Analytics GoldMine CE GoldMine Enterprise GoldMine ASP Sales & Marketing — Relationship Management Application Services Outlook Integration | Business Object | Security | Dashboards & Reporting | Web UI/Mobile/ASP | Windows UI Common Services Dashboard | Reporting | Business Rules | Security | Multi-tenancy | Customization | Licensing Data Liaison LDAP | CIM | SNMP | SOAP | HTTP | TCP/IP Products
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FrontRange Retains Your Investment by Providing Add-on Modules
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Product Family Roadmap Summary
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Products FrontRange Application Integration Platform Platform IT Service Management Incident Change Problem Release Availability Configuration SLM HEAT & HPD SM ASP Infrastructure Management Contact Center IP Contact Center Interaction Mgmt Self Service Reporting Contact Mgmt Analytics Knowledge FCC ASP Customer Service Sales & Marketing — Relationship Management Solution Set Lead Mgmt Quoting Campaign Mgmt Sales Mgmt Forecasting Analytics GoldMine CE GoldMineEnterprise GoldMine ASP Apps Network Patch Inventory Asset Software Compliance Lease/Contract PM Contact Mgmt Entitlement Workflow Incident Knowledge Content Voice SS Web SS CS ASP
Financial Strategy
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License Revenue Growth $5,972K $6,963K $7,554K $8,457K $8,680K $9,005K $9,300K
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35% Q1 38.1% 39.9% Q2 FY 04 Q3 42.6% Q4 43.0% Q2 43.5% Q3 FY 05 44.0% Q4 est.
Total Revenue Growth $M $16.8M
$18.3M
$18.9M
$19.9M
$20.2M
$20.7M
$21.5M
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Q1 Q2 FY 04 Q3 Q4 Q2 Q3 FY 05 Q4 est.
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Operating Income $1,520K $1,803K $2,058K $2,144K $2,281K $2,400K 8.3% 9.5% 10.4% 10.6% 11% 11.5% -4.7% Q1 Q2 FY 04 Q3 Q4 Q2 Q3 FY 05 Q4 est.
Geographic Revenue
APAC
7
% EMEA
31
% North America
62
% APAC
7
% EMEA
32
% North America
61
% APAC
7
% EMEA
35
% North America
56
%
FY 2004 FY 2005 Q4 FY 2005
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Product Mix
GoldMine
33
% HEAT
67
% IPCC
1
% GoldMine
31
% HEAT
68
% IPCC
3
% GoldMine
32
% HEAT
65
% ITSM
10
% IPCC
3
% GoldMine
30
% HEAT
57
%
Q4 FY04 Q2 FY05 Q3 FY05 Current Quarter
ITSM Customer Traction - 38
58 21 12 2
South Africa
9
APAC EMEA North America
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New ITSM Customers for Q4
CSG Systems Brinks PA State Credit Union Ministry of Foreign Affairs Daimler Chrysler Bank of England OpenText Sitel American Medical Association Fujitsu Queensland Rail The Warehouse Softlabs Essex Police Network Dynamics Avanade
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Strong Mix of Partner vs. Direct Total Revenue
Partner
64
% Direct
36
% Partner
68
% Direct
32
%
FY 2004 FY 2005
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FrontRange Performance is Among Strongest in the Industry
The Positives: – We have a Strategy to Create a Market Leader – We Possess Strong Leadership and a Committed Team – We Address Markets that Are Large and Growing – We have a Great Blend of Strong Existing and New Products – We Are in the Early Stages of a New Technology Cycle – We Have Strong Financial Performance and Momentum
FrontRange FY 2005 Strategic Summary
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FrontRange Strategic Summary
FrontRange used FY 2004/2005 to prepare for FY 2006 FrontRange is designed to Be the Market Leading Multiple Application Provider on a Single Platform Entering early phases of prolific new product introduction cycle Growth drivers are strong markets, significant new products, geographic expansion, and channel expansion We have the right strategy and management team for success We Are Focused on the Customer
Creating the Next Generation FrontRange is creating the next generation Business Application supplier by providing service management, CRM, and voice applications on an integrated platform which provides our customers with: Enterprise Class Functionality Fast Implementation and Fast Time-to Benefit Low Total Cost of Ownership High Ease-of-Use Affordability
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FrontRange Strategic Evolution To deploy “Enterprise Class” applications with the positive attributes of our core HEAT and GoldMine business
Fast time-to-benefit Low TCO High ease-of-use Low cost
On a common integrated platform for the service management, CRM, and Communications markets
And Incorporate Into Expanded Product Strategy Apps Solution Set Strategy and Tactics Incident Change Problem Release Availability Configuration SLM HEAT & HPD SM ASP IT Service Management Network Patch Inventory Asset Software Compliance Lease/Contract PM IM ASP Infrastructure Management Contact Mgt Entitlement Workflow Incident Knowledge Content Voice SS Web SS CS ASP Customer Service IP Contact Center Interaction Mgt Self Service Reporting Contact Mgt Analytics Knowledge FCC ASP Communication Management Lead Mgt Quoting Campaign Mgt Sales Mgt Forecasting Analytics GoldMine CE GoldMine Enterprise GoldMine ASP Sales & Marketing — Relationship Management Application Services Outlook Integration | Business Object | Security | Dashboards & Reporting | Web UI/Mobile/ASP | Windows UI Common Services Dashboard | Reporting | Business Rules | Security | Multi-tenancy | Customization | Licensing Data Liaison LDAP | CIM | SNMP | SOAP | HTTP | TCP/IP Products
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We Have Now Taken Two Families HEAT ® GoldMine ® ITSM I/M IPCC
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And Put Them Together… Technologically HEAT ® GoldMine ® ITSM I/M IPCC
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Creating a Strategic Bridge
Core Products 90% of Revenue 140,000 Customers Primary Focus
New Products
Add Modules to “Core” “New” Applications New Technology Capability Interoperability Investment Retention
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FrontRange Summary
Strong Product Plans for Heat and GoldMine – Enhanced/New User Interface – New Web Capability Many New Modules and Product Applications Strong Emphasis in R & D Enabling New Products Focused on Investment Protection for Heat and GoldMine
Thank You For Attending
Michael McCloskey Customer Webinar June 14, 2005 71