Redwood City, Calif., November 12, 2001 - More than one-third of senior IT executives recently surveyed by Informatica Corporation (NASDAQ: INFA) identified enterprise analytics-software applications that help companies better analyze, measure and improve their operational effectiveness through metrics-driven management-as their companies' most important IT investment in 2002. About one-third cited collaborative commerce as key, while between 10 and 20 percent point to infrastructure, business process optimization and other activities as top priorities for next year. The observations came from participants at Informatica World 2001 in San Francisco last month.

“In this challenging economy, every IT dollar must have a clear, positive impact on a company's bottom line,” said Gaurav Dhillon, CEO of Informatica. “Enterprise analytics-which help companies translate data into intelligence by measuring ROI, providing a total business view, and analyzing underlying relationships between customers, suppliers, distributors and customers-are becoming mission critical.

“As companies assess the ROI on their ERP, CRM, logistics and procurement applications, our customers see business metrics as essential to getting maximum value from those IT investments,” said Dhillon. “As collaborative commerce becomes central to companies' business models, the value proposition for data warehousing, analytics and business intelligence increases in kind.”

Business Metrics' Value Felt Across the Enterprise

The benefits of business metrics accrue most directly in the executive suite by supporting strategic decision-making, which is reflected by 27 percent of the Informatica survey respondents saying that CxOs need business metrics (15 percent as top priority). Not surprisingly, in-house business analysts and planners benefit from analytic tools as well. But most interestingly, the respondents cite line-of-business managers as needing business metrics, with 21 percent indicating this audience is a top priority.

“This data is significant because it underscores what will become one of the most important business trends for the future: the democratization of data,” Dhillon noted. “Business metrics take data and make it accessible and usable, but data's real power and potency comes when all employees can use it to achieve their individual and divisional business objectives. Arming line-of-business managers with business metrics gives them a sharper sword to battle the competition.”

The trend towards the democratization of data is being accelerated by the rise of mobile communications. Not only do more people within the enterprise need to analyze information, but they need to do so wirelessly, whether they're on the other side of their corporate campus or the other side of the globe. The “wireless imperative” is reflected among 68 percent of the survey respondents who point to the growing importance of wireless access to key business information over the next two years.

10 top findings from the Informatica World customer survey:

• 51% say the economy will improve in Q1 2002
• 45% project an increase in 2002 IT spending
• 62% will up security and 52% will increase disaster recovery spending in wake of September 11
• Nearly 40% cite business metrics as a top software project for 2002
• Line-of-business managers as well as senior executives and business analysts need and benefit from business metrics
• Two-thirds see wireless access to business information as growing more important
• ERP (44%) and CRM (33%) are top data warehousing applications
• 60% warehouse data from more than one application, demonstrating need for enterprise-wide data integration
• 59% use ROI processes prior to IT purchases, but only 23% look at ROI after purchase - and 23% use no ROI analysis at all
• Only 19% believe their current approach to ROI is effective, while 24% think their ROI approach is ineffective

About Informatica

Informatica provides enterprise analytic software that enables decision makers to transform business insight into competitive advantage. Informatica offers the industry's only integrated enterprise analytics suite, including a powerful data integration platform, cross value chain analytic applications, and real-time delivery of analytics via Web, wireless and voice. More than 1,370 customers worldwide, including 60 percent of the Fortune 100, rely on Informatica software to integrate, analyze, personalize and deliver critical information to managers, executives and other decision makers to optimize business performance.

Our list of global customers includes 3Com, AMD, American Airlines, BMW, Borders Group, Brocade, Brunswick, Chevron, Cisco, CNET, Deutsche Bank, eBay, General Electric, France Telecom, Hewlett-Packard, MetLife, Motorola, Nokia, Orbitz, Philips, Polo Ralph Lauren, Sprint, UBS, the U.S. Department of Justice, the U.S. Postal Service and Vizzavi. For more information, call 650.385.5000 (1.800.970.1179 in the U.S.), or visit the Informatica Web site at http://www.informatica.com/.

Note: Informatica is a trademark or registered trademarks of Informatica Corporation in the United States and jurisdictions throughout the world. All other product names are trademarks or registered trademarks of their respective companies.

Contact:

Samantha Moore
Informatica Corporation
650-385-5259
pr@informatica.com

Colleen Haikes
TSI Communications
415-808-9885
chaikes@tsicomm.com