Confidential
www.doubletake.com
Introduction to Double-Take Software
Company Overview
July 2009
WORLDWIDE SALES MEETING PUERTO RICO
Confidential
Safe Harbor Statement
Statements made in this presentation regarding Double-Take that are not historical
facts are forward-looking statements based on our current expectations,
assumptions, estimates and projections about Double-Take and our industry. These
forward-looking statements are subject to risks and uncertainties that could cause
actual future events or results to differ materially from such statements. These
forward-looking statements include, without limitation, statements about our market
opportunities, our strategy, our products and product developments, our
competition, our projected revenues, margins and expense levels and other
measures of financial performance and the adequacy of our available cash
resources. You should not place undue reliance on any of the forward-looking
statements made in this presentation. Our actual results could differ materially from
those expressed or implied by these forward-looking statements as a result of
various factors, including the various risks described in, or incorporated by
reference in, the documents and reports that we file with the Securities and
Exchange Commission, including in Item 1A. “Risk Factors” of our Form 10-K for the
year ended December 31, 2008, which we filed with the SEC on March 13, 2009. We
undertake no obligation to update publicly any forward-looking statements for any
reason, even if new information becomes available or other events occur in the
future.
facts are forward-looking statements based on our current expectations,
assumptions, estimates and projections about Double-Take and our industry. These
forward-looking statements are subject to risks and uncertainties that could cause
actual future events or results to differ materially from such statements. These
forward-looking statements include, without limitation, statements about our market
opportunities, our strategy, our products and product developments, our
competition, our projected revenues, margins and expense levels and other
measures of financial performance and the adequacy of our available cash
resources. You should not place undue reliance on any of the forward-looking
statements made in this presentation. Our actual results could differ materially from
those expressed or implied by these forward-looking statements as a result of
various factors, including the various risks described in, or incorporated by
reference in, the documents and reports that we file with the Securities and
Exchange Commission, including in Item 1A. “Risk Factors” of our Form 10-K for the
year ended December 31, 2008, which we filed with the SEC on March 13, 2009. We
undertake no obligation to update publicly any forward-looking statements for any
reason, even if new information becomes available or other events occur in the
future.
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WORLDWIDE SALES MEETING PUERTO RICO
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Highlights
• Physical and Virtual
• Strong Balance Sheet
• Over 19,000 Customers
• Market Expansion Potential
• Demonstrated Strong Margin Delivery
• Hardware and Application Independent
• Leader in Windows Host Based Recovery
•��Leveraged, Blue Chip & Broad Distribution
• Unique System State Continuous Replication
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Facts and Figures
• 383 People
• 40% International Sales
• $84 Million in “Cash,” No Debt
• 175,000 Licenses, 19,000 Customers
• $96 Million in Revenue in 2008, 16% Growth
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Windows Replication Software*
Addressing Large Infrastructure Market
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Total Replication Software*
Linux Replication Software*
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Market Growth
Impact of The Global Recession
Impact of The Global Recession
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(2) 2007 figure is from February 2009 IDC forecast update.
September ’08 Forecast
May ’09 Forecast
5 yr
CAGR
CAGR
20.4%
27%
5 yr
CAGR
CAGR
10.9%
10% (1)
(US$ in millions)
(US$ in millions)
Windows Storage Replication Software Market (IDC)
(2)
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Trends Driving Growth
• Growth in data creation and collection
• Pervasive industry and federal regulations
• Cost containment in data center
• Focus on protecting business-critical apps
• Heightened awareness of disasters
• Increasingly high cost of downtime
• Relative rapid growth of SMB IT spend
• Pulled by demand for virtualization protection
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What We Are Known For Today
Disaster Recovery & High Availability
Disaster Recovery & High Availability
Affordable, non-intrusive software to minimize downtime for business
critical systems based upon Microsoft and VMware server platforms
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High Availability
Provide LAN or WAN failover
Maximize user productivity and minimize data loss
Data Protection Options
Real-time asynchronous replication
Byte level bandwidth friendly data movement
Recovery Options
Automated monitoring / failover
Application Independent
Provide failover for ALL windows applications
Application specific module for Exchange, SQL,
Sharepoint, BES and File/Print servers.
Sharepoint, BES and File/Print servers.
Hardware Independent
Replicate and failover between dissimilar hardware
Replicate and failover between dissimilar storage
Cost Effective
ROI of under 6 months in most cases
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• How to shrink the recovery point and recovery time
The Problem We Solve
• Hours
• Days
• Weeks
• Hours
• Days
• Weeks
Recovery Point = Time of last data backup
Recovery Time = Time to re-deploy apps
• Minutes
• Seconds
Failure
Failure
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WAN
SQL
REMOTE
WORKERS
WORKERS
BRANCH OFFICES
DATA CENTRE - London
Move workloads any time, any place for any purpose.
Protect or migrate any workload, system state, applications,
or data, in real-time no matter what server, desktop, storage
or virtualization platform.
or data, in real-time no matter what server, desktop, storage
or virtualization platform.
LAN
LAN
LAN
LAN
REMOTE
WORKERS
WORKERS
LAN
Cloud
DATA CENTRE - Amazon
LAN
DATA CENTRE - New York
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What is a Workload?
• A workload is a physical or virtual server or desktop
machine, an application, or a set of data that provides
productivity to a workforce
machine, an application, or a set of data that provides
productivity to a workforce
– Machines - Desktop workstations, application servers, domain
controllers, file and print servers, web servers, server clusters, etc.
controllers, file and print servers, web servers, server clusters, etc.
– Applications - Messaging, database, finance, customer support,
sales, management, etc.
sales, management, etc.
– Data - Any data that users need to be productive
Server
Workstation
Application
Data
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Workload Management Challenges
• Complex
– Workload management tasks are labor intensive and may require
many different tools to complete
many different tools to complete
• Expensive
– Workload hardware and software technologies and the expertise and
labor required to manage them can become very expensive
labor required to manage them can become very expensive
• Inflexible
– Workloads are often bound directly to hardware or virtualization
platforms and moving workloads between systems can be very
difficult
platforms and moving workloads between systems can be very
difficult
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Workload Optimization
• Workload Management CAN be Optimized
– Portability - Quickly and efficiently move/migrate workloads
between dissimilar physical/virtual platforms
between dissimilar physical/virtual platforms
– Backup/Recovery - Backup workloads in real time across any
distance with minimal data loss and on-demand recovery
distance with minimal data loss and on-demand recovery
– Availability - Protect workloads with real-time replication and
failover to standby servers
failover to standby servers
– Flexibility - Manage and maintain workloads centrally providing fast
workload deployment for desktops/servers
workload deployment for desktops/servers
• Lower workload management costs by making tasks
and projects simpler and faster
and projects simpler and faster
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Current Product Lines
(’08 License Revenue)
(’08 License Revenue)
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Become Double-Take Product Suites
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Leverage Capabilities
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Expanded Market Opportunities
*2009 Forecast Data from various 2008 IDC Reports, Windows and Linux Market Segments.
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www.doubletake.com
Double-Take Differentiators
• Continuous replication of data, file, application and OS
– WAN-Optimized, crash-consistent, real-time replication across any distance
– Real-time replication/migration of data between dissimilar storage devices
• Across dissimilar hardware, storage, virtualization platforms
– Migration P2P, P2V, V2V or V2P, including across dissimilar virtualization platforms
– Failover of any Windows workload with only minutes of downtime and near-zero data loss
• Backup and recover individual files, emails or entire servers
– Real-time backup of multiple servers to a single repository with on-demand recovery
– Any point-in-time, granular recovery of data
• Centralized management of servers
– Boot-from-SAN using iSCSI optimized for multiple servers/desktops booting from a single image
Confidential
Go-to-Market - - An “Overlay” Approach
Full Year 2008
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Alternatives
(Competition and Partners)
(Competition and Partners)
• Direct Competition
– EMC, CA, small players
– Win on reputation, functionality, stability
• Hardware Based Solutions
– SAN’s
– Win on “non-disruptive” benefits, cost, failover,
• Operating System Vendors
– Microsoft, VMware
– Potential risks BUT, today, both are strong partners
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Business Model
• Revenue components
– Simple Model
– Perpetual licenses - Approximately 55% (1)
– Maintenance & Professional services - Approximately 45%
• Factors contributing to consistency
– Small deal size, ~$4,000 median sales price
– Traditionally short sales cycles
– Organization has monthly focus
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(1) Licenses / Maintenance & Professional Services revenue distribution for CY2008.
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www.doubletake.com
Revenue
Software
Maintenance & Service
$29.8
$40.7
$60.8
$82.8
$96.3
$88.1
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www.doubletake.com
GAAP and Non-GAAP Operating Margins
Non-GAAP operating income does not include stock-based comp.
Note: Reconciliation between GAAP and Non-GAAP - $0.4M (Q1‘06), $0.3M (Q2‘06), $0.5M (Q3‘06), $3.1M (Q4‘06), $0.3M (Q1‘07) , $0.5M (Q2’07),
$1.1M (Q3’07), and $0.7M (Q4’07), $0.9M (Q1’08), $1.0M (Q2’08), $1.0M (Q3’08), $1.0M (Q4’08), $1.1M (Q1’09), $1.1M (Q2’09).
$1.1M (Q3’07), and $0.7M (Q4’07), $0.9M (Q1’08), $1.0M (Q2’08), $1.0M (Q3’08), $1.0M (Q4’08), $1.1M (Q1’09), $1.1M (Q2’09).
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www.doubletake.com
Cash from Continuing Operations
Cash from Operations
Cash from Continuing Operations
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Management
• Dean Goodermote - CEO, Chairman
– Clinsoft, Process Software, MRO
• Craig Huke - CFO
– Apogee Networks, Bluestone Software, Metronet Communications
• Rob Beeler - VP Engineering
– Naval Air Warfare Center, National Field Service
• Dave Demlow - CTO
– Seagate, Enterprise Storage Management
• Dan Jones - VP Sales and Marketing
– Storage Networks, Net-tel Inc.
• Mike Lesh - VP of Services and Support
– Open Pages, EMC, Data General
• Jo Murciano - President, Double-Take EMEA
– Sunbelt, RMH Group
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Highlights
• Physical and Virtual
• Strong Balance Sheet
• Over 19,000 Customers
• Market Expansion Potential
• Demonstrated Strong Margin Delivery
• Hardware and Application Independent
• Leader in Windows Host Based Recovery
• Leveraged, Blue Chip & Broad Distribution
• Unique System State Continuous Replication
www.doubletake.com