IBM PartneringStrategy & Overview

Sal Causi, P. Eng.

IBM Life Sciences

NetGen VC / Incubator Mission

Develop strategic relationships with targeted VC and Incubator firms and portfolio companies resulting in:

Preference for IBM solutions and platforms Acquisition of new IBM clients New channel and business relationships Identification of new technologies of interest to IBM Significant revenue growth Increased IBM "mindshare" and marketshare

How IBM Selects a VC or Incubator

Alignment with IBM Objectives

Depth of Experience and Credibility

Business Innovation

Enabling Skills

Track Record of High Potential Companies

Relationships & Mind Share

What IBM Brings to the Table...

Global Technology Innovation

Best of BreedIPI/T Solutions

Sector Expertise

Opportunity for Business AlliancesServicesMarketingTechnology

Ultimately, to Speed Success and Profits

There Is Opportunity in Cooperation

Companies with prominent investment banks and venture capitalists backing them are no longer surefire successes.

Corporate sponsorship has almost become a prerequisite for startups to reach public markets.

Red Herring 12/19/00

For the VC / Incubator and their CompaniesFast Path Access to:

World Class IP Expertise: Sector / Services / Channels IBM's Global "Eco-Net" of Partners

Credibility of Portfolio Company Offerings Visibility of Technologies "into" IBM Lower Total Cost of Ownership for Shortened Path to Profitability

Bottom Line.....Increasing Economic Value of Investments

For IBMFast Path and Early Access to:

High Potential Early-Life Companies Insight into Emerging Markets & Technologies Opportunities to Fill Offering "White Spaces"

Development of New Partnerships / Channels / AlliancesMarket Visibility & Mind Share

Bottom Line..........Revenue...Near / Mid / Long Term

"Maximizing" for Mutual Benefit

Life Sciences Business Development Executives

– Geographical representation– Local representatives: Client Manager– Partner Channels– Partnerworld program

Coverage Model

VC Relationship Management

Partner/AllianceDevelopment

Global Financing Corp. Dev.

Server/StorageGroup

SoftwareGroup

IBM GlobalServices

TechnologyGroup

IBMResearch

VC RelationsEBOs

IBM Strategy

VC Firm Relationship

Manager

DeveloperRelations

IBM IndustrySolution Units

VC FirmPortfolio Company

We Play from Business Concept to Maturity

FirstRound

VC Angel/Garage

MezzanineRound

Public Maturity

Concept Pre-IPO Post-IPO

Initial Business& Technology

Decisions

Expansion and deployment

Developer Relations: Strategic Alliances

ISV selection criteria: Industry leadership in function, quality and

customer satisfaction Strategic fit with IBM industry, solution or

brand priority investment areas Commitment to open standards and IBM

platforms, technologies, and IBM e-business framework

IBM will go to market with selected application software firms to jointly deliver e-business solutions for customers

Relationship Building Relationship and

Technology Managers that know Startups

Guidance on First and Next Steps with IBM

Marketing Services Global Solutions Directory Incubator Series ASP Prime Hosting Advantage IBM Global Services

Financial Incentives SuccessLease QuickLaunch

Technical Assistance Guidance on IBM e-business

Software and Hardware

Developer Toolbox Value Packages Linux Community

Development System developerWorks alphaWorks 16 Solution Partnership

Centers Success Stories

350 new Relationships 33 new Advanced Partners 4 new Strategic Alliances

Startup Initiative for Developers

Extensions

Web Hosting Network ProcessorsPC Servers Web ServersDB/Content Management

Strategic Opportunities

Pervasive ComputingB2B Collaborative Commerce Linux Life SciencesStorage Networking Network Processing Server Appliances

Core Offerings

Extensions

Strategic Opportunities

Building on IBM Core StrengthsCore Offerings

Services Personal SystemsSoftware TechnologyServers FinancingStorage

Seizing the Opportunity

Largest Patent Portfolio in the World–3th Largest Life Sciences IP Portfolio

Technology Licensing–Mining of IBM's Technology Asset Portfolio

Patents–Licensing –Protection from 3rd party infringement actions–Strengthening through interlocking patents

Potential Linkages

IBM IP

IBM Microelectronics

World leader in advanced semiconductor technologies Copper, SiLK, SOI, SiGe, SiON, Embedded DRAM, MRAM... #1 ASIC/SOC (System On a Chip) provider

Foundry semiconductor provider

Current Portfolio Candidate Time Domain

SiGe Chip Fab Cash Burn Reduction for Equity