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Market PerspectiveSector SpotlightM&A and Capital Raising ActivityPublic Market PerformanceCloud, Data, & Analytics – Q3 2019Sector LeadershipAlex JohnstonVice Presidentajohnston@clearsightadvisors.com 1 (703) 672-3115943986925950869881Dec. 2-6, 2019AWS re:InventLas Vegas, NVMar. 15-18, 2020Strata Data ConferenceSan Jose, CAMar. 22-27, 2020Enterprise Data WorldSan Diego, CAMar. 23-26, 2020Gartner Data & 150 Analytics SummitGrapevine, TX 200Global Tech/Telecom M&A11501050UpcomingConferencesAs summer turned to autumn, third quarter deal volumes trended upslightly but on lower total spend. Expectations suggest valuations arestable with more downside than upside over the next twelve months(by a ratio of 5.4:1 according to a recent 451 Research survey).Cautious sentiments clearly hit the large cap M&A market in a morematerial way as fewer “above the fold” tech deals were announced inthis past quarter. Information security remains hot and includes dealssuch as Broadcom’s 10.7bn deal for Symantec’s enterprise securitybusiness and VMware’s 2.1bn deal for Carbon Black. Within thebroader data and analytics ecosystem, Thoma Bravo printed a deal fordata analytics and consumer intelligence provider J.D. Power for areported 1.8bn. The partnership is expected to help J.D. Poweraccelerate new offerings and growth opportunities as it builds on itslegacy as a pioneer in consumer intelligence. Splunk meanwhile paid 1.1bn for SignalFx (see Sector Spotlight) and VMware reached adeal to acquire Pivotal for 2.7bn.931856 100850750 50 125 163 161 138 140 118 951Q182Q183Q184Q181Q192Q193Q19650 0Deal Value ( bn)VolumeGretchen Frary SeayCo-Founder &Managing Directorgseay@clearsightadvisors.com 1 (214) 302-9934Nonetheless, the drivers of today’s markets continue to be theavailability of capital and a race to modernize capabilities. Rapidinnovation and enterprise demand has made it clear that in a “buy vs.build” world, the obsolescence risk of building over time makes M&Athe clear strategy of choice. We at Clearsight continue to seeanecdotal evidence of aggressive behavior by both strategics andfinancial sponsors – suggestive that deal makers continue to be activeand that we may see a strong final quarter in the tech M&A markets.Apr. 6-8, 2020Google Cloud NextSan Francisco, CAMay 4-7, 2020IBM ThinkSan Francisco, CAWith warm regards,Sources: 451 Research, AxiosCLEARSIGHT MONITOR Cloud, Data, & Analytics Q3 20191

SECTORSPOTLIGHTCloud Transformation of IT Infrastructure Creates Opportunities (and Challenges) for Data Analytics IncumbentsRapid innovation and price competition by public cloud providers such as AWS and Azure has democratized the accessibility of core IT infrastructureand analytical models. A shifting landscape creates urgency to adapt existing products for cloud deployment and services modelsCloud “-aaS” Models Experience Rapid GrowthData and analytics deployments benefit from cloud-basedinfrastructure, and public cloud in particular given the rapidevolution of low-cost , pre-built offerings in AI / ML, etc.Consumption based “-aaS” models has become thepredominant IT strategy, a market expected to double and reach 70bn in annual revenue by 2023 – an implied annual growthrate of 15%. AWS continues to be the market leader for thelargest component of the market (IaaS) and seeminglyrepresents the default choice for companies constructing a datalake for analytics.Cloud Computing as a Service Total Revenue(estimated, in billions) 70.0 63.0 49.5 42.6 35.3 8.8 11.2 10.0 18.9 16.9 7.6 11.2 13.1 27.6 31.2 38.7 23.8 34.9 19.9201820192020202120222023 6.4 9.0IaaSEstablished Leaders Face Urgent RepositioningAmid a transformational shift in IT delivery models, not allcompanies have the privilege of being born in the cloud. Mostlarge, established technology leaders are repositioning theirmodels to support workloads both on premise and in the cloud.(Preferences from enterprise IT buyers indeed show areasonable balance, with 55% preferring on-premise as theprimary location for workload execution.) Urgency is often acatalyst for M&A and indeed the pace of cloud-enablingacquisitions has accelerated in 2019 – a trend which no doubthas several years of runway ahead. 12.4 56.1 14.9Infrastructure SaaSPaaSCloud-Enabling Technology Acquisitions(total count)1075243393218201420152016201720182019 (proj.)Case in Point: Splunk L3M AcquisitionsSplunk provides software solutions for real-timemonitoring and analysis of machine data. The firm aimsto empower organizations with operational intelligence.Its flagship product, Splunk Enterprise, can be deployedon-prem or in the cloud (public or private). The companyoffers a cloud services model, Splunk Cloud. In fiscal2019 cloud services contributed 9.5% of the company’stotal revenues. Over the past three months, Splunk hasdeployed over 1.1bn of capital to support the continueddevelopment of cloud capabilities for its core product.21-Aug-201904-Sep-201921-Oct-2019 1.05bn 90mmUndisclosedReal-time cloudmonitoring solutionsand data analyticssoftwareDistributed tracingsoftware formicroservicesapplication monitoringReal-time data streamprocessing andanalytics softwareSource: Public filings, 451 Research, Capital IQ, and company websitesCLEARSIGHT MONITOR Cloud, Data, & Analytics Q3 20192

SECTORSPOTLIGHTClearsight Client Intersys Acquired by ASGN’s Apex SystemsOn October 17, 2019, ASGN Incorporated (NYSE:ASGN) announced that its Apex Systems segment had acquired Intersys, an Austin, TX-basedtechnology consultancy providing cutting edge data analytics and digital products development services for U.S. based enterprise clientsTransaction SummaryMarket InsightsFounded in 2005 and headquartered in Austin,TX, Intersys combines cloud servicesexpertise with data analytics and digitalproduct development capabilities to ructure. The company offers a hybridmodel featuring onsite consulting deliverypaired with highly flexible nearshore delivery inGuadalajara, Mexico.ASGN Incorporated, based in Calabasas, CA,is one of the foremost providers of IT andprofessional services in the technology, digital,creative, healthcare technology, engineering,life sciences, and government sectors. Theacquisition of Intersys deepens and expandsASGN’s capabilities in digital innovation andenterprise solutions. Intersys will become partof ASGN’s Apex Systems division. The M&A market continues to be extremelycompetitive for high quality targets Professional services firms are seeing attractivevaluations and deal terms from traditional andnon-traditional buyers seeking an entry point A tight labor market for data engineering talentplaces a premium on targets offering wellcredentialed consultants who can deliver incomplexandcloud-basedenterpriseenvironments Certifications remain important and can helpvalidate and quantify employee capabilities Well-scaled, Latin American delivery centers aresought after as complementary to an onshoreconsulting model or as a standalone offering Strong and experienced leadership can drive bothmarket interest and transaction valueClearsight Advisors Leadership in Advising Cloud, Data, & Analytics CompaniesTargetAcquirerThemeCommentaryData analytics and digital products consultancy Intersyswas acquired by ASGN in a deal that strengthenedApex Systems’ position as a market leader in providinghigh end technology servicesData intelligence company Knowledgent was acquiredby Accenture to accelerate the data servicescapabilities of its Technology business unitNearshore software development and consultingservices firm Gorilla Logic became a platforminvestment for Sverica; the firm specialized inenterprise digital transformations and Agile / DevOpsBig Data and AI services and solutions companyKogentix was acquired by Accenture in a move tostrengthen its Applied Intelligence business unitEnterprise Data Management specialist DatasourceConsulting was acquired by EXL to create an earlierentry point for clients and broaden the opportunitiesset within its global Analytics services offeringTarget attributes include:CloudDataAnalyticsSource: Public filings, 451 Research, Capital IQ, and company websitesCLEARSIGHT MONITOR Cloud, Data, & Analytics Q3 20193

FEATUREDTRANSACTIONSQ3 2019 Select Cloud, Data, & Analytics Software M&A TransactionsAnnouncedTargetBuyer04-Sep-2019certain assets ofTarget Description / Deal Rationale Movere provides clients with data and insights needed to plan cloud migrations andoptimize, monitor, and analyze IT environments Microsoft will use Movere’s discovery and assessment capabilities to complement AzureMigrate in order to make cloud migration an easier process for customers Arcadia Data is a provider of cloud-native AI-powered business intelligence and real-timeanalytics With this acquisition, Cloudera will accelerate its time-to-insight for Cloudera l-201929-Jul-201922-Jul-2019 Omnition develops a tracing application for micro-service cloud-native applications This acquisition will allow Splunk to offer tracing and logs within one advanced ITmonitoring and analytics platform Genscape provides data analytics and software solutions to firms in the power, oil,natural gas, and biofuel industries As part of Verisk, Wood Mackenzie will use Genscape’s capabilities to expand its sectorintelligence in energy data and analytics Pivotal provides a cloud-native application platform, Pivotal Cloud Foundry, which allowscustomers to easily develop cloud-native applications With this acquisition, VMware will be able to deliver a comprehensive portfolio ofproducts necessary to build applications on Kubernetes, an open-source containerorchestration system for automating application deployment Carbon Black offers a predictive data and analytics platform which predicts and preventscyber-attacks This acquisition will allow VMware to launch a new Security Business unit within thecompany SignalFx provides cloud monitoring solutions to detect and pinpoint anomalies acrossinfrastructure, applications, and business SLAs Splunk will use SignalFx’s platform to enhance their presence in the IT monitoring andanalytics space BSSN Software is a lab informatics company that develops data management andintegration software that collects scientific data for analyzing, processing, and sharing Millipore Sigma had worked with BSSN Software since 2014 and decided to acquire it togrow its data management business Leverton is a developer of computational-linguistic software to process and managecontracts for clients in real estate and financial services sectors Through this acquisition, MRI Software will be able to use Leverton’s capabilities tostreamline their data collection and management, enhancing client experience Parity Computing is a provider of data mining, analytics, and decision-support softwaresolutions for publishers and enterprises in science and technology Elsevier will leverage Parity’s disambiguation technology to resolve ambiguities inentities and relationships that appear in publications BlueTalon develops data collaboration and data unification technology which allowsclients to access all of their data without customizing any of their pre-existing databases The acquisition of BlueTalon will allow Microsoft to empower enterprises acrossindustries to undergo digital transformation with Azure while ensuring right use of data OpenAI develops artificial intelligence applications Microsoft invested 1 billion into OpenAI to further extend Microsoft Azure’s capabilitiesin large-scale AI systemsSource: Public filings as of 30-Sep-2019, Capital IQ, PitchbookCLEARSIGHT MONITOR Cloud, Data, & Analytics Q3 20194