Positioning Microsofts Exit from PM Market February 26, 2009

After a Short Run, Microsoft Exits PM Market

Summary
On J anuary 23, 2009, Microsoft announced that it would no longer compete in the Performance Management
(PM) market by discontinuing PerformancePoint Server (PPS). Launched in September 2007, PPS was
Microsofts entry into planning, budgeting, forecasting and consolidation. Designed as a collection of tools,
PPS required heavy customization by partners and was based on a set of products acquired from ProClarity
in 2006. PPS was designated as the replacement for Microsoft FRX, a financial reporting tool that is being
decommissioned.

Microsofts move is great news for Infor PM 10. Here are the key Infor takeaways from Microsofts decision:

Keep replacing FRx in our customer base with PM 10. Infor is dedicated to helping companies with
PM, while Microsoft is not.
Go back to any prospect or customer that has PPS. They will need another solution going forward,
and Infor is that solution.
Revisit any conversation you had with a customer or prospect where they mentioned that PPS was
part of their PM evaluation. Make sure they are aware of Microsofts decision and how Infor can meet
their needs.

Microsoft Position
Microsoft is positioning this move as an updated Business Intelligence (BI) strategy. The monitoring and
analytic functionality in PPS will move into Microsoft Office SharePoint Server in an effort to bring BI to the
masses. The planning, budgeting, forecasting and consolidation capabilities will be discontinued, with any
future development of this functionality being managed by the Microsoft Dynamics business unit.

Microsoft provided the following publicly available materials on the decision to discontinue PPS:

Video of announcement
Press release
Microsoft blog

Microsofts decision was also covered in the media:

Computerworld Microsoft folds PerformancePoint Server into SharePoint
Intelligent Enterprise Microsoft Boosts BI, Backs Away from Performance Management
Information Week Microsoft Makes Sweeping Changes To BI Software Strategy
BPM Magazine What Does PerformancePoints Failure Say About BPM?

Infor Assessment
The news about Microsoft exiting the PM market was not surprising. Microsoft was struggling to gain traction
in this market. Microsoft was ill-equipped to compete as they did not have the sales force or channel in place
and were forced to build this out. The result was an extremely high cost of sale. And, PPS had limited
functionality making it difficult to compete against well established vendors like Infor. In fact, Microsoft was
unable to complete a proof-of-concept in a head-to-head financial consolidation deal against Infor recently.

Before discontinuing PPS, Microsoft had announced that it was discontinuing FRx, a financial reporting tool,
and moving this functionality to PPS. Microsoft has made no announcements to reverse its earlier decision to
discontinue FRx. Furthermore, we do not expect a reversal of this decision as FRx is considered to be old
technology that has not kept up with market demands for financial reporting. Infor has undertaken an effort to
replace FRx in our customer base with PM 10. There is no change in our strategy to replace FRx keep
moving forward with PM 10 as the FRx replacement.

The discontinuation of PPS reinforces the fact that Microsoft is not dedicated to performance management.
The only way to ensure that our customers PM needs are taken care of is to provide them Infors own PM
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Positioning Microsofts Exit from PM Market February 26, 2009
offerings. These award-winning PM solutions are backed by over 3,100 customers, 30 years of experience
and 15 years average tenure in support.

Supporting Documents on Sales Portal
Microsoft Discontinues FRx Customer and Prospect Template Letters
Microsoft FRx Discontinued Internal Messaging

Internal webinar on replacing FRx with PM 10
Presentation: https://infor.icentera.com/exLink.asp?19522976OB75A62I61782784
Recording: https://infor.icentera.com/exLink.asp?19533339OS47P28I61777632

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