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New CIO Survey Cites Lack of Visibility into Application Maintenance as Top Challenge

Waterloo, ON – May 24, 2006 – A new survey of CIOs conducted by IDG Research Services and MKS Inc. (MKS) (TSX: MKX) reveals that only 4 percent of IT managers have visibility into their application maintenance activities, even though half of the respondents believe measuring application development (AD) to be of critical or high priority and 89 percent of organizations consider measurement to be a priority.

Application Inventory and Rationalization are Key Priorities

Waterloo, ON – May 24, 2006 – A new survey of CIOs conducted by IDG Research Services and MKS Inc. (MKS) (TSX: MKX) reveals that only 4 percent of IT managers have visibility into their application maintenance activities, even though half of the respondents believe measuring application development (AD) to be of critical or high priority and 89 percent of organizations consider measurement to be a priority.

Timeliness, relevancy and sheer access to data are the biggest challenges faced by managers in measuring AD projects and activities. Spending on application maintenance outstrips spending on new projects by two to one. However, visibility into new projects is also poor, with only one third saying they had good visibility into new application development spending and less than one half of those surveyed claim to have good visibility at all.

According to industry analyst firm, Forrester Research, the split of spending on new development versus maintenance is headed in the wrong direction. Writes Phil Murphy in the July 2005 Forrester Research report entitled APM Tools Will Reach $500 Million To $700 Million By 2008, "Waning application knowledge and overly complex integration options drive higher IT maintenance costs while offshore development and geographically dispersed development teams add risk and complexity to development efforts." "With 76% of IT budgets earmarked to maintain existing applications, CIOs desperately need tools that show them what is happening in IT and enable corrective action. Increased application knowledge and information will increase staff productivity, and continuous monitoring of basic metrics will permit IT and business management to answer questions that support decision-making." "Armed with the ability to answer these questions, CIOs and IT management can plan, act, measure, assess, respond, and repeat, and improved management processes will maximize investments that provide competitive advantage while minimizing investments in commodity functionality. Data is too voluminous to collect manually, and — unless it is collected continually and from a factual basis — the integrity of the information is dubious."1

The IDG Research Survey demonstrates manual methods such as excel or word and project management tools persist as main methods for data measurement within IT. A whopping 63 percent of surveyed must pull data from multiple sources or collect information manually. None of these methods provide instant or real time access to lifecycle data.

"Having access to real-time data at all levels of the application lifecycle is critical. Developers, IT managers, and CIOs all need real-time access into every single application," said Philip Deck, MKS CEO. "Our CIO customers want to show their business counterparts what activities and projects drove costs and how spending matches up to the overall business goals. We're help them by providing a portfolio view of their applications. Now they can take an inventory of the applications and start to trend and rank based on size, cost and then start to consolidate those that aren't performing well."

As IT and business align, the need for better metrics and visibility will continue to increase. Ongoing application maintenance remains a blind spot for CIOs who are seeking to better understand, manage and account for total AD spending. Application Portfolio Management will provide the metrics to support CIO decisions about key projects, budget expenditure and demonstrating return on IT investment and value to the overall business.

About MKS

MKS is the premier provider of application lifecycle management solutions for the global 1000. MKS’s flagship ALM solution, MKS Integrity, is the most highly integrated ALM platform in the industry today, spanning all aspects of the software development lifecycle and supporting critical business transformations including SOA, application rationalization and outsourcing. MKS Integrity’s single architecture drives high levels of user productivity, facilitates rapid deployment and process standardization while delivering a complete view of application development activity through real time metrics, trends and reporting. MKS Integrity also provides essential support for IT operations through software deployment and issue management. Founded in 1984, MKS serves more than 10,000 customers in countries across the world. Whether through deployment of MKS’s solution strategically on an enterprise scale, or by leveraging individual components to solve project-level challenges, our customers can use MKS’s software to enable higher levels of process maturity, better manage global development activity and safeguard their most critical business applications and software assets. Under its widely known MKS Toolkit brand, MKS also provides UNIX-Windows co-existence and system administration that significantly cut development and administrative costs and reduce time to market, while enabling enhanced performance. More information about MKS can be found at http://www.mks.com or by calling 1-800-265-2797 (US & Canada), +49-711-351775-0 (Germany), +44-1483-733900 (United Kingdom) and 1-519-884-2251 (Rest of World).

Copyright © 2006 MKS Inc. and MKS Toolkit are trademarks or registered trademarks of MKS Inc. All other trademarks mentioned in this release are the property of their respective owners.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect the Company’s current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made including those factors detailed from time to time in filings made by the Company with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Although the Company believes the expectations represented by such forward looking statements are reasonable, there can be no assurance that those expectations will prove to be correct. The Company does not intend and does not assume any obligation to update these forward-looking statements.

US and Canada Media Contact:
Email: pr@mks.com

 


1APM Tools Will Reach $500 Million To $700 Million By 2008, Forrester Research, Inc., July 2005.

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