Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Richard Davis – Needham
Richard Davis – Needham
With regard to the OpenEdge one of the questions that I get a lot of times from investors is I understand it’s a really sticky product but also understand that there’s a customer mix shift in terms of the way your customers are recognizing revenues and so therefore that’s reflected in your numbers. Do you have a sense as to what percentage of OpenEdge is subscription and is that affecting your reported growth even if notional bookings are probably half way decent?
Bud Robertson
Software Services has been growing very rapidly within the OpenEdge community. As a matter of fact I think we’ve quoted it being 25% growth. However, the number is still a small number so it’s not really; it might have a minor impact but not major at this point in time. If they continue over time obviously which we think is a good model it could impact it going forward.
The other thing is we’re finding that when we talk to our partners that the software services revenue they wouldn’t have normally received at the lower end so it’s not like its cannibalizing their business. They’re finding right now they’re getting additional revenue. They expect in the future that it’ll become a larger part of their business but they’re not seeing that yet.
Richard Davis – Needham
Could you comment, what’s fascinating to me as a student of your space and of industry is just the sharply variable rates of growth you see in infrastructure software. You look five or ten miles away from you guys and you see guys at Pegasystems growing something like 30% a year and other sectors of this space are shrinking or down. How do you, now that you’re CEO, how do you position Progress to anticipate those kind of growth areas or is it more a portfolio strategy where you just figure look we’ve got eight products and hopefully three will be working at any given time?
Rick Reidy
Certainly in the case of Pega where you’re largely focused on one particular high growth segment and you happen to time that right and in their particular case have heavy duty focus in a particular vertical, you can hit a right vein which they seem to have done. I think overall in the application infrastructure business, particularly for portfolio players, at this time, with this economy it’s a mixed bag. Customers are delaying decisions when they can and will purchase when they see immediate ROI or reduced risk or something that brings immediate business value.
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