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Major Software AG Customer Survey Reveals New Priorities for Legacy Systems

DARMSTADT, Germany, June 26 /PRNewswire/ -- Software AG (TecDAX, ISIN DE 0003304002 / SOW), a global leader in business infrastructure software, today announced results of a worldwide customer survey conducted during the final quarter of 2006. More than 180 customer organizations participated in the survey. The survey attempted to gauge customers' concerns about their legacy systems, as well as their future plans for those systems.

DARMSTADT, Germany, June 26 /PRNewswire/ — Software AG (TecDAX, ISIN DE 0003304002 / SOW), a global leader in business infrastructure software, today announced results of a worldwide customer survey conducted during the final quarter of 2006. More than 180 customer organizations participated in the survey. The survey attempted to gauge customers' concerns about their legacy systems, as well as their future plans for those systems.

The survey indicates that respondents have moved away from IT-centric considerations (such as cost savings and platform consolidation) as their primary focus for legacy systems, and are much more concerned with business- centric issues such as real-time access to legacy data, agility and flexibility to meet business demands.

In addition, according to the survey, respondents no longer look predominantly to rewriting, replacing or outsourcing as the primary strategies for dealing with legacy systems. Modernization is now the overwhelming preference. The full report entitled, "Customer Survey Report: Legacy Modernization" (June 2007) is available for free download at this URL: www.softwareag.com/Corporate/Images/SoftwareAG_SurveyReport_Jun07_tcm16- 30103.pdf (due to the length of this URL, you may need to copy and paste this link into your browser)

Specific results of the Survey include: — More than 60% of respondents analyzed were "very" or "extremely" concerned about "the flexibility of this [legacy] system to be quickly modified to meet changing business requirements." — Nearly 60% of respondents analyzed were "very" or "extremely" concerned about "real-time interaction between this [legacy] system and other systems to support business process automation."

"The results of our recent global customer survey clearly show that legacy systems are being positioned by IT organizations as significant players in the new enterprise," said Joe Gentry, CTO of Enterprise Transaction Systems, Software AG. "Customers are no longer asking, 'How do we get rid of these systems?' Instead they are asking, 'How do we take the business value that already resides in our legacy systems and bring this value into our new enterprise architecture to deliver business results?' I believe that the trend toward SOA has a lot to do with this shift in attitude."

Software AG's Answer to Customer Concerns

Software AG recommends a step-by-step process to successfully address organizations' concerns about their legacy systems, including the ability to support real-time access to operational data and the flexibility to meet changing business requirements. This process is based on Five Disciplines of Legacy Modernization:

— Application Understanding and Optimization — Enables analysis and enhancement of legacy code, leading to improved knowledge transfer and reduced maintenance efforts — Web Enablement — Provides new user experience through Web 2.0 and AJAX, extends the reach of legacy systems and improves service to customers and business partners — SOA Enablement — Facilitates reuse of legacy functionality within an SOA, supports automation of business processes (BPM), links legacy systems with SOA governance — Application and Data Integration — Improves performance and availability, yields data that is more current for reporting and data warehouse environments — Platform Optimization — Reduces operational costs and the risk of diminishing expertise by moving an application or database from one software or hardware platform to another

About Software AG's Legacy Modernization Solutions

Software AG's Legacy Modernization solutions use Web services and AJAX in the context of an SOA to build on the performance and reliability of an organization's core business systems in order to meet new business and IT challenges. Additional information about Software AG's Legacy Modernization Solutions is available at the following URL: http://www.softwareag.com/Corporate/Solutions/bus_sol/lm/default.asp

Software AG | Uhlandstrasse 12 | 64297 Darmstadt | Germany

Software technology to increase the value of enterprise IT systems

Software AG's 4,000 global customers achieve measurable business results by modernizing and automating their IT systems and rapidly building new systems to meet growing business demands. The company's industry-leading product portfolio includes best-in-class solutions for managing data, enabling service oriented architecture, and improving business processes. By combining proven technology with industry expertise and best practices, our customers improve and differentiate their businesses — faster.

Software AG has more than 35 years of global IT experience and 3,800 employees serving customers in 70 countries. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW). Software AG posted total revenues of 483 million euro in 2006. www.softwareag.com

SOURCE Software AG

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