CDC Software Announces its First Cloud Application to be Developed with the Windows Azure Platform

DELHI, INDIA - 27 May, 2010 - CDC Software Corporation (NASDAQ: CDCS), a global provider of hybrid enterprise software applications and services, announced today its CDC Respond complaint management system will be its first cloud software-as-a-service (SaaS) application developed with the Windows Azure platform.

The announcement of CDC Software's cloud solution for Respond is the latest move in the company's plans to expand its growing portfolio of cloud-based solutions and increase recurring SaaS revenue significantly during the next few years. Already, CDC Software had made several cloud-based acquisitions, as well as made investments in two SaaS application companies as part of its Strategic Cloud Investment Partner Program (SCIPP). Under SCIPP, CDC Software plans to make minority investments in, and form strategic reselling partnerships with, companies offering cloud-based or point solutions which complement its enterprise solutions portfolio.

CDC Software already has piloted CDC Respond on the Azure platform and plans to deliver the product by the end of the year. The Windows Azure platform is a set of cloud computing services that can be used together or independently that enable developers to develop cloud applications.

"CDC Software's commitment to developing cloud-based solutions using Windows Azure technology is a measure of the ecosystem's faith in Microsoft Cloud Services," said Moorthy Uppaluri, general manager D&PE, Microsoft Corporation. "We are confident of the impact this initiative will have and also look forward to a continued partnership with CDC Software and helping them deliver future cloud-based products."

"I am especially proud to announce our new cloud product based on Windows Azure while participating at Microsoft's press event with Steve Ballmer in Delhi today," said Peter Yip, CEO of CDC Software. "We are excited about developing this new product largely due to our successful partnership with Microsoft. Our CDC Respond cloud application is an excellent addition to our already strong SaaS product portfolio. This new product, along with our existing SaaS products, will help us further increase our recurring SaaS revenue and reach our goal of reaching 70 percent of revenue coming from maintenance and recurring SaaS revenue in the next few years. We also believe they further strengthen our position as a provider of hybrid enterprise solutions offering customers on-premise and cloud deployment options."

"This new cloud product illustrates our commitment to the Windows Azure cloud infrastructure," said Alan MacLamroc, chief product and technology officer for CDC Software. "We believe that by developing applications using Windows Azure and leveraging our Agile development methodology, we will be able to launch flexible, reliable and scalable cloud applications quickly to the market. Azure provides us the ability to develop SOA-based multi-tenant architectures with the tools we are already using, and deploy them to a robust platform with staged production, failure-resilience, elastic scalability and self-service provisioning. CDC Software shares a complementary vision in cloud computing with Microsoft, and as a result, we expect to partner with them again on future cloud products."

Since late last year, CDC Software has acquired four cloud-based companies including last week's acquisition of TradeBeam, a cloud-based supply chain execution software company, and has invested in eBizNET Solutions, a provider of SaaS supply chain execution solutions, and Marketbright, a SaaS marketing automation company.