Executive Digest #3

EXECUTIVE DIGEST ISSUE 3 | 2012

KraKow Business run: Csr Beyond philanthropy

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NUMBERS TALK

145,1 H1 FY 2012 REVENUES $145.1M

24 24 NEW CLIENTS ADDED IN H1 FY 2012

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2 2 NEW LOCATIONS ESTABLISHED IN H1 FY 2012

5704 CURRENT HEADCOUNT: 5704

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COMPANY MAJOR INITIATIVES

Krakow Business run: Csr beyond philanthropy

przemeK Berendt VP Marketing Luxoft 04

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luxoft’s mission statement focuses on going beyond client expectations by bringing together technology, talent, innovation and highest quality standards.

we apply the ‘go beyond’ mantra to all aspects of our operations, believing that the competitiveness of our business and the health of the communities around us are interdependent. That’s why for many years we have been running educational, charity, and sport initiatives that help the societies we are a part of.

Corporate social responsibility has become an important pillar of our strategy and we believe it will have a longterm positive impact on our business.

over the past year, luxoft has run 15 different Csr initiatives spanning from educational programs to sport events to philanthropy. one that we are particularly proud of is the Krakow Business run 2012. antony roberts-york, Ceo of uBs poland service Centre, initiated this unique project. The idea was to bring together three different types of stakeholders: business, city authorities, and an ngo organization with the aim to raise money for the foundation of

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choice, integrate the local business community, promote healthy life styles, and increase awareness of Krakow as a good place to live. The Jasiek mela foundation, Beyond Horizons, that provides aid to amputees was selected as a partner. The initial project team consisted of uBs, radisson Blu Hotel, the City of Krakow, and Beyond Horizons foundation representatives. The work started in January, and the run date was scheduled on september 16, 2012.

“A charity initiative of this size and scope needed reliable and proactive partners. Together with Luxoft UBS has built a successful partnership in business, therefore I was certain we could achieve great results also for a good cause” - explains antony roBerts-yorK, Ceo of uBs poland serviCe Centre. initially, luxoft was invited by uBs to join the Krakow Business run as a sponsor. we soon realized that we could go beyond supporting the run financially by joining the organizers with luxoft resources, creativity, and experience. That’s why in march luxoft joined the project team as one of the organizers, providing the project with our skill and experience in the use of social media, building marketing strategy, and soliciting additional sponsors.

The run was open to teams of five, representing local companies, whose task was to complete a 5x3,8km relay around old town of Krakow. The initial goal was to attract 150 teams to the event. for those who wanted to prepare for this run, free training sessions were organized every day in different paces all over the city, so anyone who wanted to join could find a suitable time and place to practice under the supervision of professional trainers. when we launched the marketing

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plan, the buzz and interest in the run went viral. as a result, what seemed to be a stretch goal in the beginning was greatly exceeded. we attracted over 1000 runners on the start line, representing over 100 companies from Krakow. in addition, we raised the necessary monies to buy an artificial limb for Justyna topa, a beneficiary of the Beyond Horizons foundation.

The run also attracted the local community; over 4000 spectators watched it at the main market square and along the route. lastly, we achieved our goals of promoting a healthy lifestyle and increasing awareness of Krakow as a great place to live and work. The event got over 200 publications in the media including, tV, radio, press, and internet.

Justyna topa Commented on the event: “It is hard to express my profound gratitude towards anyone who got involved in the organization of this event, to anyone who supported it financially. But it is even harder to really and appropriately thank all the runners who are there right now.

Your effort, sacrifice, and generosity are something really precious, something for which I am immensely grateful, and something I will never ever forget. I wish I could stand in front of each of you and, looking straight into your eyes, say Thank You!” we are proud that luxoft could play an active role in organizing and supporting the Krakow Business run 2012. we look forward organizing the event in 2013, expanding it to other cities in poland, and pursuing other ambitious goals for the greater good of the community with the outstanding organizing teams from uBs, radisson, and the Beyond Horizons foundation.

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luxoft launches a new r&d center in Germany focused on human machine interface (hmi) development Luxoft is expanding its presence in Western europe by opening a second location in germany – a research and Development center in filderstadt. the new facility will specialize in high-level Human Machine interface (HMi) Design and Development for the automotive sector with further plans to leverage this expertise across other industry segments. the new filderstadt center will provide services, including development of platform technologies and user interfaces (uis), targeted to improve ergonomics and ease of use to reduce driver distraction, a growing concern in today’s automotive community. Luxoft will also build expertise in more unique areas, such as design and development of augmented reality, gesture, touch and 3-D interfaces. the filderstadt r&D facility currently employs a team of 35 experienced engineers with strong expertise in researching,

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defining, and developing next-generation ui and user experience (ux) for automotive HMi. Harman international industries, inc. and ford will be among the first Luxoft clients to benefit from the new location and enriched service offering.

Luxoft’s filderstadt office will be lead and managed by Dr. Simon Pinkenburg, who has over 25 years of combined experience in software development and the automotive industry. Prior to joining Luxoft, Dr. Pinkenburg worked at Harman international industries inc., leading a number of HMi initiatives.

With frankfurt already a long-established Luxoft location, germany is now a key market for our r&D and product engineering initiatives. the filderstad facility will be a Center of excellence for HMi development. “as device manufacturers and oeMs are fighting for an improved user experience, the importance of ui in embedded products is growing exponentially. We realize the need for highly interactive, user-friendly HMi solutions that will help our clients succeed in this competitive space. With the addition of the filderstadt center, we

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are now able to offer r&D and design services for automotive HMi across all classes of cars. We look forward to further growing this expertise outside of the automotive sector” - said Vasiliy Suvorov, VP technology Strategy Luxoft.

luxoft opens a new office in menlo park, California Luxoft is expanding its presence in the united States by opening its third location in Menlo Park, California.

Luxoft has been working with north american clients for over a decade. the Seattle office serves enterprise clients, including Boeing and Dell, while the new York office predominantly interacts with financial services companies. the new Menlo Park location will become Luxoft’s global frontier for building collaboration with major technology players in the united States.

Luxoft’s Menlo Park office will be lead and managed by Mikhail Minkevich, VP of technology Services, who has

more than 15 years of experience in the it industry and with the company-wide focus on technology verticals, in particular the automotive, energy & utilities, Semiconductors, and new Media verticals.

“Luxoft’s new office in the Menlo Corporate Center represents an important next step in our long term commitment to the united States client base and in building a significant presence in the Silicon Valley. We look forward to working closer with our long-established clients and partners and to becoming an active part of the vibrant community of innovative high-tech companies that have originated and now prosper in this important region”, said Mikhail Minkevich, VP technology Services Luxoft.

“Luxoft has been present in the u.S. since 2000 and that allowed us to gain a significant number of customers during the past twelve years in the region. We believe that the new location will strengthen Luxoft’s position in this part of the world and reaffirm our commitment to further grow our company within the north american market by serving our existing customers and building a solid new client base”, said Dmitry Loschinin, Ceo & President Luxoft.

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article in automotive industries: “ivilink free connectivity platform help bring apps to the car” Vasiliy Suvorov talks about the new, innovative car connectivity platform, iviLink, in an interview with automotive industries magazine. “iviLink has clear advantages for automakers, such as the secure, oeM-controlled two-way apps integration and multi-media content sharing that includes cloudbased content,” says Vasiliy Suvorov, VP technology Strategy Luxoft. “But iviLink also carries much broader appeal by offering opportunities to automotive suppliers as well as mobile app developers and mobile device manufacturers. iviLink offers them a competitive advantage by extending multimedia and connectivity functions to current and future iVi systems. additionally, iviLink provides a safe and easy way to seamlessly upgrade iVi software without critical impact or risks to the entire system.”

Please read the full article here.

telematics munich 2012: “Bringing apps into the Car: Challenges and solutions” Vasily Suvorov did a presentation on “Bringing apps into the Car: Challenges and Solutions” at telematics Munich on october 29. the automotive industry faces a rising demand for the apps integration. Drivers want to be able to use their favorite apps while in the car. What does it take to integrate apps safely into the car environment? During the presentation Vasily spoke about:

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 What automakers need in order to ensure safe integra-

tion of apps  in-vehicle connectivity technologies currently available in the market  How to create a thriving ecosystem of third-party app developers

luxoft highlighted in the forrester report “rightsource your agile-lean ecosystem” Luxoft was featured in the forrester's report “rightsource Your agile-Lean ecosystem” focusing on helping enterprises create good sourcing environment for their successful agile transformations. We were rated as a top 15 company-integrator and an emerging player in agile space, addressing some of the previously existing skill gaps in the area.

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CLIENTS SPEAK

“The MyFord Touch Guide is now being downloaded by many of our customers and dealers through the Apple App Store and the Android Market.” says paul masCarenas, Cto and Vp of r&D at ford.

“I have installed this on my iPhone and iPad and find it very useful for impromptu demonstrations of the systems capability.”

“Our success on the Hotwire Car Team is another example where the partnership has helped our business move to the next level in product development and delivery.” roman Kaplun, Director of engineering services at Hotwire

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LATEST ACCOLADES Luxoft Hr Program was awarded "skills development program of the year" at noa awards 2012. additionally Luxoft was shortlisted in the following categories: rising Star of the Year outsourcing Service Provider of the Year

Luxoft has been featured as a 2012 Global services 100 provider and has achieved leadership status in the following gS100 categories: Leading Mid-tier oPD Vendors Mid-tier Leaders - testing Services

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Luxoft has been featured in zinnov’s Global r&d service providers overall rating 2012. Zinnov recognized Luxoft as an emerging leader in the following categories: aerospace and Defense automotive Leading Software/iSV r&D Service Providers Leading Semiconductor r&D Service Providers Leading telecommunication r&D Service Providers

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Luxoft is ranked 186th in software magazine’s software 500 ranking of the world’s largest software and service providers. We moved up two positions in the ranking since last year.

Luxoft has been included in the 2012 fintech 100 ranking. this year our company improved 12 positions and is ranked 68th.Â

ivan gavrilyuk is named in the top 1000 russian managers for the second year. ivan is ranked second in the list of it industry managers.

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luxoft’s high performers Club project awarded "skills development program of the year" at noa awards 2012 the noa 2012 awards recognized Luxoft for its skills development program, the High Performers Club (HPC).

the participants of HPC are Luxoft team Leads and Project Managers, divided by groups. each group has its own supervisor. During this year’s session 12 supervisors from Luxoft’s top Management mentored 152 HPC members from russia (Moscow 36 people, SaintPetersburg - 12 people, omsk - 16 people), ukraine (kiev and Dnepropetrovsk - 48 people, odessa - 22 people) and romania (Bucharest 18 people).

why it is unique? what is hpC? in order to provide our clients with the best innovative thinking resources in the market, Luxoft launched the High Performers Club (HPC).

the main purpose of the program is to improve the quality of customer service through the dedicated development of middle management staff within the company. it also aims to build additional mechanisms for the development of managerial skills to provide the most active employees with a broader range of opportunities. this allows motivated employees to demonstrate their worth and assume active upper-level managerial positions. Last but not least, the program is meant to create an effective communication channel between Luxoft’s upper and middle management, which will lead to a clearer understanding of our values and the strategy across all levels of employees.

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1. identifies employees with outstanding management potential among the team leads and project managers 2. provides high performing employees with: targeted training and development opportunities (Luxoft additionally invites external providers with deep experience in soft skills and management training. Club members have already learned the following courses: “Leadership”, Presentation skills”, “Motivation”, “Building an effective team”, “Building a relationship with the Customer”, “Conflict Management” and etc.) individual mentorship activities, access to collaboration, knowledge sharing and handin-hand work with top-Management access to more complex and challenging general management tasks Wide recognition of the employees as key contributors (nonfinancial incentives)

additional benefits as a tool for staff retention facilitates movement up the career ladder

3. manages the internal talent pool of the company Maintain a visual matrix of people capable of supporting rapid company growth retain core employees Create an effective channel for sharing company Values and Principles to some extent, HPC program is unique for both supervisors and project participants. it was able to generate some impressive results in the short-term of its functioning. the new communication format between company employees and management was applied for the first time.

what were the tanGiBle results of the proGram? % We make Luxoft a better employer by unleashing high potential talents. % We built an effective communication channel between Luxoft’s top Management and Middle Management. it resulted in better understanding of Luxoft’s values and strategy on all levels within Luxoft. % We have improved Luxoft`s customer service quality through the development of Luxoft Middle-Management. % We discovered new talents and have a clearer picture of those employees who are

capable of supporting rapid company growth % our employees realized their value to Luxoft and have a clear path to move forward and exceed their own expectations through impressive professional growth % We provided the unique opportunity for individual recognition by top-Managers, which resulted in career growth for up to 20 participants % We improve team spirit and raise it to the next level

this is our first experience with such a project here at Luxoft, but we can report that all participants demonstrated their dedication to the project with unbridled enthusiasm and we are already seeing great results. the activity and interest rate is continuously high. our goal is to maintain that activity throughout the whole program and, most importantly, maintain the interest of present and future participants.

the HPC program is still an on-going initiative and we see it as the vital element behind success in customer service and growth of the company. We see HPC program participants as the future leaders of Luxoft and the industry.

We have high hopes for this program and will strive to expand it further in the next years.

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LUXOFT’S EVENTS DURING Q2 FY 2012, LUXOFT SPONSORED AND PARTICIPATED IN THE FOLLOWING EVENTS:

energy events:

automotive events:

autovation 2012, Sept. 30-

oct. 3, Long Beach, California Distributech 2012, January 2931, 2013; San Diego, California Metering europe, 9 – 11 october, amsterdam, netherlands

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telecom events: SDn & open flow World

telematics Munich 2012,

october 29– 30th geniVi Shanghai, october 10th

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Congress, 22-24th october, Darmstadt, germany

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LUXOFT’S EVENTS

Big data:

international Conferences:

events for it engineers:

international outsourcing

Java Developers Day Conference,

forum, 3rd-5th october 2012, Sopot (tri-City), Poland russian innovation Week 2012, Menlo Park, California Cee SeCr 2012 – agile Sponsor, november 1–2, Moscow, russia

25-26th oct, krakow, Poland Sponsoring the Java user group Meeting in odessa, october 11 testwarez Conference, 22-23rd october, Poznan, Poland top employers Job fair in october, october 26-27th, Bucharest, romania  organizers and general sponsors of Dou Hackaton event, July 28 — 29th, odessa, ukraine

iQPC, Corporate it exchange,

16-18 September 2012, frankfurt, germany

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human-machine interface (hmi) design and development services Luxoft’s r&D center in filderstadt, germany, focuses on advanced automotive HMi development. Luxoft engineers have a great experience in developing efficient, intelligent, reliable, non-distractive, rich, and user-friendly HMis for the world’s leading automakers. the hmi design and development offering includes: HMi story, design, specification Software engineering implementation of HMi frameworks integration of externally created HMi interfaces r&D We also created an hmi platform that provides easy implementation of the HMi framework, supports localization, variants and skinning, and enables performance optimization. the platform is designed with a focus on software architecture and development and supports relevant HMi technologies, such as flash, Qt, and HtML5. it provides critical HMi development capabilities, including: implementation tooling (creation and implementation of diverse editors) know-how in low-level graphics and graphic driver integration luxoft offers distinctive, advanced hmi services to our automotive industry clients, including: Screen design, user interface (ui) concept and HMi software from one source Short interaction loops for maximum customer satisfaction

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More than 10 years of experience in developing

automotive HMi for multiple customer projects industry-wide accepted source of HMi know-how for embedded systems faster time to market with Luxoft’s in-house design and human factors capacities Scalable, modular, efficient, and optimized HMi platform Perfectly aligned development tool chain Scalable and diversified engineering resources pool

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luxoft releases android/linux sdK for ivilink automotive Connectivity platform

Luxoft announced the release of the iviLink Software Development kit (SDk) for android and Linux at the telematics Munich 2012 Conference and exhibition. the iviLink SDk gives developers the tools to create applications that can be run on a mobile device and a car’s head unit, radio, or rear seat entertainment system. iviLink is an open source in-vehicle infotainment connectivity platform that enables seamless connectivity between mobile devices, such as smartphones and tablet PCs, and in-vehicle infotainment systems. the iviLink SDk is free to download at http://www.ivilink.net/sdk.

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With iviLink, oeM-controlled, two-way app integration and multi-media content sharing, including cloud-based content, can be accomplished quickly, cost-effectively, and securely for current and future iVi systems, and can even add new technology support for older head unit models. the iviLink SDk v.1.1.2 for android and Linux includes source code, quick-start documentation, and sample applications. the SDk provides insight into iviLink's symmetric architecture to help developers understand its working model, the wide range of usage models it supports, and the tools to design, test, and deploy solutions that enhance the vehicle’s mobile device capabilities, while minimizing human capital and financial investment. With iviLink, automotive oeMs can create a variety of their own car-centric apps, as well as an ecosystem of third-party app developers. to learn more about ivilink, visit the ivilink home page at www.ivilink.net.

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luxoft introduces twister for openflow and sdn

testing phases of product development.

"Software-defined networking, combined with Cloud technologies, opens a new world of innovation opportunities for telecommunication providers and commercial enterprises. SDn and openflow facilitate advanced services and Cloud applications that make Luxoft’s twister for openflow test automation framework a compelling product for immediate improvements in product development lifecycles, infrastructure costs, test planning and management, and system uptime," said Vasiliy Suvorov, Vice President of technology Strategy at Luxoft.

Luxoft’s twister test automation platform, launched earlier this year, is an open source test automation framework designed specifically for network infrastructure markets and it is now enhanced to support the openflow protocol for software-defined networking (SDn).

With Luxoft’s twister for openflow, manufacturers can immediately implement more efficient test processes and greatly extend the scope of their current test coverage. Mr. Suvorov added, “our professional development services can further accelerate the time-to-market for our clients’ products and improve their overall development efficiency.”

Luxoft’s twister for openflow framework gives vendors the ability to execute and control parallel testing scripts run on multiple platforms, which speeds up and standardizes the conformance and system

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please see the interview with vasily suvorov at interop show 2012 in las vegas introducing twister.

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a new version of luxoft’s demand management automation platform: dmfusion 2.0 non-technical losses in power distribution can reach over 10% of the total production, resulting in substantial revenue shortfall for utilities. We wanted to address these critical challenges by expanding the functionality of our smart grid software platform, DMfusion.

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DMfusion can garner significant savings for both utilities and smart grid solution vendors by streamlining and improving decision making in unforeseen and strategic events. the platform combines sophisticated data processing for real-time analysis with easy-to-use visualization features for key components of a grid, including assets and communications infrastructure. DMfusion comes with pre-designed workflows and built-in analytical modules that process big data streams in milliseconds, enabling more eďŹƒcient grid management.

the new version allows utilities and smart grid solution vendors to quickly identify problems within a grid and take corrective actions. We are using stateof-the-art technologies, such as parallel computing, to deliver a near real-time data analysis to support grid management decisions, while our easy-to-use visualization module further simplifies the process. all of this leads to a more eďŹƒcient and profitable power distribution network.

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in mobile development vasiliy suvorov Luxoft VP teCHnoLogY StrategY 22

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today’s increasingly mobile culture is quickly making its way into the modern working environment. its impact on business cannot be underestimated. according to a 2012 Cisco iBsg Horizons study of 600 it decision makers from 18 industries, there will be 3.3 connected devices per knowledge worker in 2014, up from 2.8 in 2012. The average share of it spending devoted to mobility initiatives will grow to 20% in 2014, up from 17% in 2012 and 12% in 2010.

The proliferation of mobile devices in business gives rise to new trends, such as the development of mobile workforces, telecommuting and “bring your own device” (ByoD). Cisco’s iBsg Horizons report cites that 88% of it leaders are seeing ByoD growth in their enterprise and 76% consider ByoD “somewhat or extremely positive” for their companies.

Having to keep up with these trends, companies are experiencing, an acute need to develop secure, flexible, and reliable mobile apps that support a myriad of devices and platforms. in this paper, we would like to discuss one technology that is gaining in popularity daily as it becomes an answer to cross-platform development and promises a better web experience: Html5. we will take a closer look at the key new features of this technology,

discuss the skills needed to master it, and compare Html5-based mobile applications to native ones.

This will help explain the reasons for its increasing adoption, and hopefully, help those who still might be “behind the eight ball” to start doing further homework.

Html5 is soon to be the no. 3 mobile platform after apple’s ios and google’s android. according to an appcelerator/iDC report, 79% of developers are planning to integrate this emerging web technology in their applications in 2012. while the Html5 technology stack has been used extensively in cutting-edge applications built by startups, its usage in the enterprise world has been limited.

Hence, many businesses must play catch-up in adopting the knowledge and building expertise.

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html5: new version or new ConCept? in theory, Html5 is the next version of Html. in practice, however, this term has grown to encompass not only changes to Html, but also new developments in Javascript, Css, as well as a growing number of apis that turn a web browser into a true applications platform. Thus, Html5 is a grouping of new technologies that make it easy to develop rich content directly in the web browser. as mentioned earlier, the Html5 technology stack has been used extensively by start-ups to build truly innovative apps, while its enterprise usage has been limited.

This was primarily caused by the popularity of adobe air and the preference for native sDKs, which offered much better capabilities and ease of development to inhouse software engineers up until the end of 2011. in november of 2011, adobe announced that it was discontinuing further development and support of its flash player technology for mobile devices in favor of advancing its Html5 tools. This development, combined with work done by companies like apple, google, opera, the mozilla foundation, and the webKit community, significantly propelled Html5 capabilities. we are now at a point where Javascript-based apps offer performance and features on par with native-based applications. furthermore, we are witnessing reduced complexity related to multi-platform support, shortened development cycles for new features, and greater cooperation between creative professionals and software engineers.

a preCise looK at the set of new html5 features undouBtedly plaCes it on the list of smarter, more roBust, effeCtive, and widely appliCaBle teChnoloGies. semantiCs set of new tags, such as <header>, <footer>, <nav>, and others make Html5 code more meaningful, enabling more data-driven web for both, users and programmers.

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offline and storaGe apis within Html5 facilitate the creation of working applications even in the absence of a connection to the browser. The application cache, localstorage, sessionstorage, indexedDB, file system, and online and offline events enable apps to work with or without an online regime. traveling without wi-fi, Bluetooth, or 3g, or having an intermittent signal will no longer be a problem as users can continue to be seamlessly connected and entertained on the go. Html5 allows users to store the content locally, so that the application works regardless of the physical location of the end user. apart from letting apps remain connected and holding data without a server, offline features also improve their performance by storing data in a cache or making it persistent between user sessions and page reloading. deviCe aCCess This is the most exciting innovation within the Html5 tool set. web apps can now become truly mobile without any phonegap-style wrapping. Device access includes the geolocation api, making applications locationaware and allowing them to access different sensors located on the device.

BaCK-end ConneCtivity The websocket api, a powerful new technology supported by Html5, provides real-time connectivity via a persistent connection between the client and the server. firefox, Chrome, the latest version of internet explorer, and most of major browsers now support websockets. previously used services, such as rest apis, web rpC, and soap-based web services, are making the way for websocket to provide real-time connectivity. applications that call for continuous content update, and hence require uninterrupted, constant communication from the mobile device or cloud, are now taking advantage of using this bi-directional, double-duplex technology. websockets is currently backing financial trading applications, real-time streaming quotation systems, system monitoring, chats, games, social networking, and navigation apps.

html5 inteGration plans for 2012 "Do you plan to integrate HtML5 as a component into the mobile apps you plan to build in 2012?"

79%

yes 21%

no Source: appcelerator / iDC - 01/2012

multimedia Html5-based apps are now able to incorporate audio & video directly into the browser without needing any plug-ins, such as flash, that is sometimes not compatible with all operating systems. using new Html5 apis (i.e. Canvas,webgl) now allows users/programmers to generate impressive visual effects and 3D graphic manipulations. performanCe & inteGration new technologies, such as web workers, allow users to achieve multithreading directly in the browser. They are the main drivers behind building faster, more robust Html5 apps.

Css3 while technically not a part of Html5 specifications, Css3, the latest standard used to control the style and layout of web pages, is often used in conjunction with Html5 technology to achieve incredible visual effects. The modifications can be done directly in Css3 and allow for separation of element styling from code and content. responsive Design is an emerging concept that leverages Css3 media query capability and grid-based layouts to adjust the user interface (ui) layout of an application automatically based on the amount of available screen space. This feature is especially useful for any portal-type application.

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These new features support the main three characteristics that make Html5 technology so promising: marKet aCCeptanCe & adoption The leading modern mobile platforms — ios and android — both use an Html5-compatible webKit open source web browser engine as their base. in fact, a modern, Html5-compliant web browser is a necessity for any contemporary mobile operating environment.

This means that in the near future developers can freely utilize all of the features of Html5 without any compatibility-related concerns with individual mobile devices.

This also means that the same Html5 code can be used for creating both desktop and mobile applications!

Cross-platform appliCaBility = easier development with the emergence of a more mobile workforce, telecommuting, and bring your own device (ByoD) trends, developers must consider developing applications in platform-agnostic ways to ensure universal compatibility. The Html5 standard brings developers closer to resolving this dilemma by allowing them to use the same technology stack across multiple devices. furthermore, an increasing number of cross-platform development tools like appcelerator Titanium and phonegap support Html5. This, in turn, helps developers target the largest range of devices with minimal rework efforts, thus allowing businesses to innovate with greater speed and efficiency. ease of testinG another way to address time-to-market constraints is by reducing the time and complexity of testing. testing native mobile applications requires more effort, since it calls for the use of an emulator, making the entire process lengthier and, at times, more complicated. automation of web user interface testing and the ability to conduct the entire process directly on the user’s desktop is another significant advantage of Html5 technology.

what does it mean for the future of native apps that are BeinG pushed out of the spotliGht? is the door ClosinG, leavinG Behind the features in whiCh the native apps still have an upper hand?

Choosing between native and Html5-based applications continues to be a burning topic among the mobile developers. while the gap between these two app types is swiftly closing, there are still a few differences, concerns and limitations to consider. more Cost-effeCtive and produCtive web apps run on common browsers and can be accessed on most web-enabled smartphones. Thus, device-specific customization is much simpler from a developer standpoint. according to a recent study by financial researchers Bernstein research, “Html5’s web-based apps are more cost-effective and less labor-intensive than building different native apps for ios, android, and windows phone.”

The complexity and time required to add features is reduced significantly in Html5-based applications. web applications are cheaper to run across multiple platforms and they’re easier to maintain and update.

ConCerns & limitations Complex graphics is one area where native apps continue to lead over Html5-based apps. animation and complex visualization are currently better implemented through native apps. However, this shortcoming of Html5 technology is rapidly diminishing with the latest developments in sVg standard, web gl, canvas apis and Css3 transitions, supported by hardware acceleration. native apps are also still ahead in quality and user experience thanks to native controls and widgets used in the applications. furthermore, the quality of development support may still be better for apps engineered on their native platforms. Thus, google and apple

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sDKs are the examples of professional products backed up by high quality support. at the same time, technology stacks for building web apps often tend to have a “community support” feel to them, requiring a high level of expertise by specialists developing these web apps and their commitment for a substantial amount of self-research. great offline storage capability of Html5-based apps may turn to a game of give and take. on one hand, it allows users to work regardless of their connection status, while on the other, it creates a slew of potential synchronization issues when users change the browsers or it hardware. for now, both types of apps have justified their right to exist and serve as the best tool for particular tasks. some apps are still best suited for native environments in order to reach their ultimate speed and performance; typically, the apps that require an unorthodox user experience (i.e. games, social networking, lifestyle and entertainment, technology and gadgets, travel and local category apps). on the other hand, applications where iterative design and user analytics carry more relevance (i.e. communications, financial services, retail and shopping apps) are better suited to the web approach. That said, it is important to be aware of the rapid narrowing of this differentiation gap.

to help enterprises prepare for the wider adoption of html5, aliGninG the internal needs with the required sKills (en masse!) is liKely to Be a Good strateGiC move. with the rising popularity of the Html5 technology stack, a number of companies are hiring increasing numbers of Html5 specialists to assist with conversion and development tasks. optimization of corporate websites to provide a better browsing experience, simplification of complex web graphics and videos, improvement of the overall website performance and

loading time, as well as the development of a web app that supports multiple devices and browsers are just a few reasons for engaging a team of Html5 professionals. in our opinion, detailed knowledge of Html and Javascript is essential for Html5 proficiency. not knowing what to look for in Javascript or how to best use developer tools in webKit-based browsers or fireBug in firefox can make troubleshooting a web application nearly impossible. other skills of increasing importance include Css3, various mVC frameworks, and knowledge of such Dom manipulation libraries as jQuery, Zepto, the google closure platform, and countless other Javascriptbased libraries and toolkits for making graphs and diagrams, working with databases, sound, and video, and in statistical processing. additionally, Html 5 requires programmers to acquire the ability to navigate the exploding landscape of various tool chains, frameworks, and methodologies, many of which come only with community support.

ConClusion Html5 technology is receiving strong backing from leading mobile and web players and enjoys a growing browser support. it is simple, media-friendly, and flexible. it has great potential for streamlining the coding language and changing the way software programs are developed and delivered, as well as improving the overall web experience. Hence, it is becoming an increasingly important tool for enterprises and a necessary skill set for software engineers in the age of escalating mobility. we believe that it organizations should pay very close attention to the development of Html5, soon to be the new standard in web development and web- and mobile-based apps. furthermore, organizations should invest in hiring Html5 professionals in-house or via a third party provider in order to advance their web presence and stay competitive in today’s dynamic business environment.

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leading online travel engine reorganizes it resources and taps long-Time outsourcing partner, luxoft to increase Capabilities of its Car rental Vertical.

in 2010, when global online travel aggregator Hotwire, inc. made the strategic decision to reorganize its it resources to align directly with its three major business verticals, Hotel, flight, and Car, they were confident that luxoft was the right software development partner to meet the needs and objectives of the Car vertical.

Hotwire first started working with luxoft in 2006 on a test automation project. after years of steady

collaboration, proving their expertise, commitment, financial stability and record of success, luxoft’s offshore team of talented software engineers collaborate to achieve even more of Hotwire’s project delivery objectives. This impressive pedigree, along with the fact that luxoft is the leading provider of agile software development services in eastern europe, made luxoft the logical partner for Hotwire’s Car team.

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online traffiC Jam: hotwire’s inCreasinG Car rental Business requires BiG ChanGes processing over 10,000 reservations daily, the Hotwire Car business delivers more than $600m annually in gross bookings1. unfortunately, the traditional waterfall software development project model was no longer able to support the real-time consumer demand. By leveraging luxoft’s experience in the agile methodology, Hotwire successfully made the transition to a lean development model that met and exceeded their business objectives:  expand Hotwire’s delivery capabilities to meet business need  increase revenues by improving car rental conversion rates  strengthen product and industry knowledge among the car team members  reduce development costs  increase the project speed-to-market while reducing business risk  perform continuous measurement and evaluation of critical success factors  fuel innovation with change management practices that deliver business impact

roadmap to suCCess: luxoft’s three-staGe implementation plan Beginning in november 2010, luxoft ensured a successful transformation from the waterfall model to the agile model by focusing on three main tasks to facilitate the adoption of the new development model: 1. estaBlish a dediCated team Beginning with a team of just three engineers, the current Car team headcount is eight professionals

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who cover different areas: back-end and front-end development, business analysis, quality assurance, and scrum coaching. as the project progressed, new roles were introduced to support the distributed team:  proxy product owner  onsite project coordinator  Dedicated technical vertical owner 2. transition from waterfall to aGile to help Hotwire adopt the scrum methodology in november 2011, luxoft developed a transition plan that allowed the team to realize its benefits without negatively affecting productivity or workflow. agile workshops for the client and vendors were conducted in november and a go/no-go decision deadline on the on-site transition was set for December. in the early months of 2012, luxoft’s agile coaches conducted the offshore transition and it is now successfully in operation.

3. delivery During the transition period, the luxoft team maintained its high level of service delivery to ensure there was never a negative impact to the business. always going above and beyond to deliver real innovation that exceeds client expectation, luxoft proactively made numerous profitability enhancements to the system, including:  redesigning the car rental site’s result page  adding pre-paid retail inventory and additional car types  optimizing requests to global Distribution systems, decreasing the cost of information by 30%  Consolidating the billing path By all accounts, Hotwire is delighted with luxoft as their partner in this important initiative. according to roman Kaplun, Director of engineering services at Hotwire, “luxoft constantly demonstrates a strong level of commitment and responsiveness, and close alignment to our strategy and goals.”

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Client: Launched in 2000, Hotwire.com is an award-winning discount travel site that negotiates deep discounts from its travel suppliers to help travelers book unsold airline seats, hotel rooms, and rental cars. Hotwire is an operating company of the world’s largest online travel agency: expedia, inc. (naSDaQ: exPe)

Summary: With business booming and online traffic increasing, Hotwire made the strategic decision to complete reorganize its it resources to align them directly with their business verticals: Hotel, Car, and flights. as part of that initiative, Hotwire also wanted to transform from the traditional Waterfall method of software development to agile for increased speed-to-market.

Challenge: Luxoft needed to deliver against six aggressive business goals while ensuring no disruption to the daily online activities of Hotwire’s business and customer experience.

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“our success on the Hotwire Car team is another example where the partnership has helped our business move to the next level in product Development and delivery,” he adds.

Best praCtiCes + innovation: Key faCtors to exCeedinG expeCtations a key factor in luxoft’s engagement with Hotwire was an unwavering focus on the transformation of processes and the development of industry best practices. using workshops, onsite visits, and with a commitment to managing personal development, luxoft and Hotwire realized the benefits, including: 1. produCt and Business KnowledGe ownership and manaGement within a dediCated team  Developed specialists and subject matter experts to collect and manage the business knowledge base  maintained a strong focus on soft skills and attitude to engage top talent and develop a selforganized team that is empowered to drive change  Created a respectful work environment, without the restrictions of hierarchy and bureaucracy, that promotes professional growth  Developed a shared product vision through workshops and sprint Zero  maintained a strong and open collaboration, based on mutual trust and high morale 2. sCrum aGile development methodoloGy in use  Time-to-market decreased dramatically  smoothly integrated scrum process into existing release schedule  all agile best practices were solidified with the supervision of luxoft’s scrum coach  Continuous improvement and immediate feedback from customers with regular sprint retrospective meetings

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3. efiCient CommuniCation Channels  streamlined communication and mitigated the time difference between the offshore and san francisco teams with the proxy business owner in place  onsite coordinator to facilitate cross-team collaboration 4. foCus on quality  Continuous integration  20% of time in each sprint is spent for “technical debt”  “stop & fix” approach  performance testing is done by a dedicated team beginning at the development phase  support of production and debugging of production incidents is done by luxoft’s team, reducing the effort and loss of productivity for Hotwire’s employees  executable requirements using Behavior-Driven Development (BDD) test automation tools (Cucumber, selenium) to encourage collaboration with non-technical stakeholders in addition to creating best practices, luxoft employed several innovative approaches to achieve the business objectives:  Created the role of proxy business owner in Kiev to bridge the communication gap in the time difference between teams  led concurrent team training in Kiev and san francisco, with a dedicated scrum coach for 6 months  World-renowned Scrum coach Jeff Patton was retained to give the teams his innovative scrum practices, story mapping methods, and product discovery techniques

please watch the latest video with the hotwire testimonial here. the video captures the history of the cooperation between Hotwire and Luxoft as well as speaks about the project that was recently awarded by the european outsourcing association.

Why Luxoft:  five years of ongoing, successful

collaboration with Hotwire agile and industry expertise Commitment to and alignment with business goals financial stability Proven track record

Project results: Decreased business need delivery

time by 300% (2012 vs. 2010) increased speed-to-market by 300% (2012 vs. 2010) increased car rental revenues by 15% by improving conversion rates Strengthened product and industry knowledge within car vertical team members

“our success on the hotwire Car team is another example where the partnership has helped our business move to the next level in product development and delivery.” roMan kaPLun, DireCtor of engineering SerViCeS at HotWire

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luxoft russia 10–3, 1–Volokolamsky proezd 123060 Moscow, russia tel: +7 (495) 967 8030 russia@luxoft.com luxoft usa 225 West 34th Street, Ste. 1707 new York, nY 10122 tel: + 1 (212) 964–9900 us–nyc@luxoft.com 4400 Bohannon Dr., Ste. 235 Menlo Park, Ca 94025 tel: +1 (650) 681-1128 +1 (855) 458-9638 / +1 (855) 4-luxoft luxoft uKraine 10/14 radishcheva Str., 03680 kiev, ukraine tel: +38 044 206 1808 ukraine@luxoft.com luxoft poland ul. krakowska 280 32–080 Zabierzów tel: +4812 445 8800 fax: +48 12 445 8801 luxoftPr@luxoft.com luxoft romania 167 Calea floreasca, Sector 1 Bucharest, romania 014459 tel: +40 21 203 6600 romania@luxoft.com luxoft uK 1 Liverpool Street, London, eC2M 7QD tel: +44 (0) 207 956 2840 hr.uk@luxoft.com marKetinG Przemyslaw Berendt PBerendt@luxoft.com alina Plaia aPlaia@luxoft.com for Career seeKers tel.: +7 (495) 967 8030 fax: +7 (495) 967 8034 hr@luxoft.com Site: www.luxoft.com follow us on facebook: www.facebook.com/Luxoft twitter: www.twitter.com/Luxoft_tweets

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