Overview of the ProductivityNet, Inc. business & strategy in 2002. This was the last deck we authored on the business before ProductivityNet closed its doors.

1. Controlling the engines of
business…
Business Plan Overview
June 13th, 2002
™

2. Page 2
ProductivityNet Products
 Software product to improve the reliability and
performance of computers within a business
 Improves performance by:
 Monitoring a system and alerting technicians to errors
and anomalies
 Provides a sophisticated tool to automatically fix
problems
 The best means to manage the computers in an
organization
 It pays for itself very quickly by enabling IT to:
 Prevent downtime of critical systems
 Keeping employee’s computers up and running
 Keeping employees productive

3. Page 3
Downtime costs
 500 Person firm in North Greenbush
 Mail Server goes down
 200 employees stop work and call the help desk
 200 x $50 per hr. x 10 mins. X 12 time a year = $20,000
 Cost of ProductivityNet Software for Mail Server = $2750
 Payback 1.65 months= $20,000/ $2,750
 Other Situations:
 Web server goes down
 Voice Mail system
 Sales force system
 Other systems issues through out the organization
 We have become highly dependent on systems to run the
business
 Need to provide IT with critical tools to maintain systems

4. Page 4
Management Team
 John C. Cavalier – Chairman
 Chairman MapInfo, 40 Yrs Senior Management in IT
 Vincent J. Pasceri – Founder & CEO
 Founder, won numerous business awards, First
company to be funded while a student at RPI
 Steven I. Talbot – Chief Marketing Officer
 20 years experience in software and marketing, Corp
Strategy & Development MapInfo.
 P. Michael McCutcheon – Chief Technology Officer
 Founder, Chief Architect, Product Developer, Graduate of
RPI

5. Page 5
ProductivityNet Business
System
Control-
Web &
Wireless
Process
Control
Application
Systems
Network
Systems
Network
Admin.
System
Admin.
System
Admin.
Process
Mgr.
Remote
Sys. Mgmt.
MSP,
xSP, etc.
Oper. Sys.
Expertise
NOS
Expertise
Applic. Specific
Expertise
Process Control
Expertise
Underlying Assumptions:
Downtime is costly
Downtime slows/ stops revenue
QoS needs to be maximized
Operating
Systems

6. Page 6
Features & Benefits
 Monitor & Manage
 Faster response to systems anomalies, reducing
downtime
 Automated Fix
 Prevent system errors through alerts
 Web & Wireless
 Access systems anytime, anywhere
 Secure
 Safely access from anywhere
 Deployable
 Fast to implement, fast to benefits
 Payback
 Quick payback, faster than competitors

7. Page 7
IT Manager Needs
Quickly
address
system
problems
Fix the
system
before
it is a
problem
Fix from
wherever
you are
Address the
remote user,
system,&
server
Track
trends
in services
& Inventory
Environ.
Continuous Quality of Service
Improvement
Maximized
Uptime
Faster
Response to Users
Proactive
Improvement & Actions

8. Page 8
Product Family
Clients ActiveManage
Host
Agents
Web, Palm
& Pocket PC
Windows,
Linux, Solaris,
& SNMP
Windows 2000
Futures:
• Routers & NOS
• Web Server
• Mail Server
• DB Server
• Applications

9. Page 9
Key Features
 Alert engine
 Rule Based
Responses
 Role-based
Administration
 Reporting & Inventory
 Track Trends
 Inventory software
 Web & Wireless
Console
 Heterogeneous &
Distributed System
Control
 Remote KVM
(Keyboard Video
Mouse)
 Secure and Encrypted
 Fast & Flexible
 Deployment &
Configuration

10. Page 10
Competitive Matrix
Factors of Competition
ActiveManagev2.0
RemoteKVM
Solutions
(Software)
EnterpriseManagement
Solutions
MonitoringApplicationsWirelessApplications
SystemsManagement
Applications
Monitor   + +  
Manage   +   +
Secure      
Fix +     
Access +   + + 
Deploy + +    
Value +     
Overall Score 29 23 21 21 21 19
Key Scale
+ Excellent 5

Meets
Needs 3
 Minimal 1

11. Page 11
Competitive Landscape
Upstart/ Point
Products
Focused
Products
Legacy
Complete
Expert Players
(Delivering Key Value)
Functionality
Value
CA
HP
BMC
Opalis
Sonic Mobility
MOM
LanDesk
ProductivityNet
PC
Anywhere

12. Page 12
Market Validation
 Jeb Bolding, Product Analyst, EMA
 “ActiveManage has the fastest deployment time out of any systems
management product I have tested.”
 Sue Cooper, Editor, Windows & .Net Magazine
 “I almost can't believe how many features you've covered here.
Sounds like something that could give the bigger guys, the HP’s, a run
for their money.”
 Mike Gunderloy, Product Editor, Microsoft Certified Professional
Magazine
 “ActiveManage works well, and has an impressive feature set ... The
result is a management tool that moves smoothly from browser to
handheld to automated response system without a hitch.”

13. Page 13
Rapidly growing markets
CY 2000 2001 2002 2003 2004 2005
Windows M$ $694 $1,016 $1,341 $1,709 $2,106 $2,401
UNIX M$ $964 $1,165 $1,372 $1,486 $1,623 $1,813
Source: IDC Doc# 22995.
Performance management market is a large & rapidly growing market
System
Management
Software
$9.6B
(2000)
Performance
Management
Software
$2.7B
(2002)

14. Page 14
Industry Trends
 Systems have become cheap & powerful
 Capabilities are accelerating
 Prices are under $1,000
 System environments have diversified
 Deployment strategies to max. performance & availability
 Proliferation of services – mail, DB, Application services, etc.
 System environments are more specialized & sophisticated
 Routers have become specialized systems
 DB Servers, Shared services, ASP
 Businesses have become distributed
 Remote offices to be supported
 Coop Business Nets
 The heterogeneous system environment has reached critical
mass
 Service issues are critical to company revenues and productivity

15. Page 15
Barrier to Entry
 Technology
 Component bases agents – for rapid deployment
 Wireless and web platform – anytime, anywhere system
control
 Rules based host engine – Monitor and fix key system
issues
 Business Model
 Value – high functionality, relative low cost to deploy
relative to competition
 Lock-in effect of users – creation of customized
knowledge bases and rules by customers
 Natural upgrade path – as systems are added to the
network

16. Page 16
Business Model Strategy
 Low cost adoption at department level
 Avg. Selling Price $5,000
 Proof of benefits
 Viral Spread to other departments
 Low cost adoption and ease of deployment
 Avg. Selling Price $4,000 per Dept.
 Natural Upgrade Path
 As servers and PCs are added to network
 Web based sales and upgrades
 Download of product on web site, license key controlled
 Add-ons and upgrades through web based sales
 VARs
 Multi-tiered program based on volume
 Low barrier to start, incentives to achieve volume sales

17. Page 17
Sales Strategy
Sale to a single enterprise organization -250 People
Year 1 - Direct Channel Channel Partners: Characteristics:
Pilot (2 to 3 Months): Revenue IT Service Providers 20 to 100 Customers
Sales to a single Department Hosted Services Each Customer 50 to 100 Servers
AM Host 749$ MSPs/ ASPs/ xSP 100 to 700 Users
4 Servers 2,000$ Network Services
50 PCs 1,399$
Maint 1,037$
Total Pilot Sales 5,185$
Proof (3 Months) Revenue
Sales to 2 other Departments
10 Servers 3,999$
100 PCs 2,699$
Maint 1,675$
Total Proof Sale 8,373$
Enterprise Rollout ( 6 months) Revenue
30 Servers 13,598$ Year 1 # of Cust Discount Revenue
100 PCs 2,699$ Customers in Pilot Projects 6 20% 24,888$
Maint 4,074$ Customers in Proof State 2 20% 13,396$
Total Rollout Sale 20,371$ Customers in Rollout 1 20% 16,297$
Year 1 Sales 33,929$ Total Revenue 54,581$
Year 2 - Direct Channel Revenue Year 2 # of Cust Discount Revenue
Maintenance & Services 8,482$ Customers in Pilot Projects 12 25% 46,665$
20% New Machines & Upgrades 6,786$ Customers in Proof State 5 25% 31,397$
Year 2 Sales 15,268$ Customers in Rollout 2 25% 30,557$
New Sales Revenue 108,619$
20% Upgrade Revenue 21,724$
Total VAR Revenue Year 2 130,343$
Direct Sales Strategy Channel Sales Strategy

18. Page 18
Forecast & Financials
2002 2003 2004 2005 2006
Revenue
ActiveManage Direct $126,000 $1,834,500 $2,798,500 $4,606,000 $6,937,500
AM VAR Channel $86,800 $1,000,300 $2,075,000 $3,805,000 $5,197,500
AM NG $0 $76,000 $3,648,000 $4,560,000 $5,616,000
Services $45,500 $515,500 $2,125,000 $3,600,000 $5,487,500
Total Revenue $258,300 $3,426,300 $10,646,500 $16,571,000 $23,238,500
Cost of Goods Sold $13,894 $293,771 $855,667 $1,497,671 $2,046,567
Gross Margin $244,406 $3,132,529 $9,790,833 $15,073,329 $21,191,933
% of Revenue 95% 91% 92% 91% 91%
Operating Expenses
Engineering $210,159 $1,375,278 $2,484,769 $3,120,261 $4,008,731
% of Revenue 81% 40% 23% 19% 17%
Marketing/Sales $693,742 $1,774,479 $4,147,381 $6,380,787 $8,915,580
% of Revenue 269% 52% 39% 39% 38%
Administration $142,958 $760,805 $1,267,471 $1,868,826 $2,559,687
% of Revenue 55% 22% 12% 11% 11%
Total Operating Expenses $1,046,859 $3,910,562 $7,899,621 $11,369,874 $15,483,997
% of Revenue 405% 114% 74% 69% 67%
Income Before Int & Taxes ($802,453) ($778,033) $1,891,212 $3,703,456 $5,707,936
% of Revenue -311% -23% 18% 22% 25%

19. Page 19
Summary / Investment Thesis
 The Product: System Control using Web and
Wireless
 Quick payback for the customer
 Experienced management and operating team
 Highly differentiated product
 Strong and fast growing market
 Expansive business model
 Positioned well in competitive landscape –
externally validated