CHANGE CHALLENGE CHANCE 37 Enterprise Transaction Systems (ETS): robust and profitable We have played an important role in the IT landscapes of large companies and public agencies around the world for many years with our Enterprise Transaction Systems (ETS), or data man- agement. These are the roots of our Company. Many customers that began using our high- performance ADABAS database four decades ago still use our software today. The Natural de- velopment environment is a software that enables new programs to be written and existing ones to be modified. Natural is the basis for hundreds of thousands of software applications that form the technological backbone of these organizations’ core processes. Rather than starting from scratch, many of our customers choose to invest in modernizing their tried-and-tested applications and opening them to new platforms and technologies like the Internet. The database management, application development and application modernization business is essentially stable with strong profit margins. These are earnings that allow us to invest in new and innova- tive market segments as well as make bold decisions for the future. We anticipate a moderate yet steady one-digit decline in annual revenue in the future. The constant decline is due to the saturation of the database market. Because there are practically no new customers for Software AG in this area, the license business comes primarily from existing customers. We will reduce costs further in order to maintain the high profit margin in this business line. IDS Scheer Consulting (IDSC): opportunities through focus Consulting services are often sold as part of projects in both the BPE as well as ETS segments. We also offer consulting services through our IDS Scheer Consulting (IDSC) line, which is a tra- ditional project service business with a focus on the optimization of IT-based business processes. Our core competence is process consulting and integration of SAP solutions into the IT landscapes of our customers. As of the first quarter of 2013 the consulting services for all business lines will be pooled from an operational standpoint and reported on as a new segment called Con- sulting and Services. As a product-independent, vendor-neutral consulting partner, we aim to provide organizations with comprehensive support for their transformation projects. Our consultants enter the picture at the very latest when an existing IT landscape has gotten too big to control and the cost of maintaining the complex IT structures has gotten too high. This is when modernization is called for: IT systems must be harmonized and enhanced. The goal is to design IT infrastructures that are so flexible that they can be adapted at any time to reflect the changing business needs of our customers. As a technology pioneer with industry expertise, we know our customers’ processes and are the right choice when it comes to guiding and propelling the transformation to a digital enterprise.