Q3 fy12 company presentation_red hat

Version 2.1, 17 November 2011

COMPANY OVERVIEW

FIRSTNAME LASTNAME

Job Title, Red HatPresentation Date

The offering of Red Hat Enterprise Linux is fantastic, but what's more important is the company that stands behind it.—PARKER HARRIS, EVP Technology

CEO JIM WHITEHURST

OPENSOURCELEADER#1

1993

1999 2002 2006 200

8201

0201

1

FOUNDED

IPO FIRST RELEASE OF

ENTERPRISE

LINUX ACQUIRED JB

OSS

RED HAT ENTERPRISE

V

IRTUALIZATION

RELEASEDJBOSS EAP 4.3 RELEASED

MAKARA ACQUIRED

GLUSTER

A

CQUIRED

JOIN

S S&P 500

CLOUD FORMS & O

PENSHIFT

RELEASED

POISED TO ACHIEVE$1 BILLION REVENUE

WHAT WE DO

Red Hat Consulting’s local experience backed by Enlogit, a Czech Republic Red Hat PremierPartner, gave us peace of mind during roll out.—PAVEL BARTOS, Lead Analyst, GE Money Bank

We offer a range of mission-critical software and services covering:

HOW WE DO IT. THE BENEFITS.We develop everything usingan OPEN SOURCE model.

Shared development reducescosts & accelerates innovation.

Open collaboration offers products that genuinely meet customers' requirements.

Better price & performance

Better quality

Faster technology innovation

Alignment to your needs

Flexibility

CLOUD MIDDLEWARE OPERATING SYSTEM

VIRTUALIZATION STORAGE

By running tests and executing numerous examples for specific teams, we were able to prove […] not only would the solution work, but it will perform better & at a fraction of the costs.

—MICHAEL BLAKE, Director, Systems & Architecture

COMPANY REVENUEFY 2003 – FY 2012

INDIRECT60%

DIRECT40%

U.S.56%

OTHERCOUNTRIES

44%

BOOKINGS BY CHANNELFY2011 GLOBAL REVENUEFY2011

FY '04 FY '06 FY '08 FY '10 FY '12

0

50

100

150

200

250

30080%

MORE THAN

FORTUNE500COMPANIE

S

of

use

PRODUCTS &

SOLUTIONS.

WIDE-RANGING EXPERIENCE

Other

Financial

Government

Tech & Media

Telecom

Logistics &Transportation

Services

Energy

Healthcare

Retail

Manufacturing

BREADTHACROSS

MULTIPLEVERTICAL

SGLOBALL

Y.

STRENGTHIN

MAJORVERTICAL

SGLOBALL

Y.

Based on deals greater than $100k from Q2 CY2011.

…we needed a reliable, stable, supported version of Linux that we knew would be production-ready… we are very happy with our partnership with Red Hat. —TERRY TALLEY, CTO

12%

11%

9%

9%

INNOVATING & LEADING

With Red Hat Enterprise Linux and JBoss Enterprise Middleware, we are able to experience the benefits of open source combined with the support and uptime that we require.—BEVERLY JAMISON, Senior Director of IT

THE WORLD'S MOST INNOVATIVEGROWTH COMPANIES 2011

TOP TEN NEW AMERICA COMPANIES OCTOBER 2011

Forbes, Nov 2011 Investor's Business Daily, Oct 2011

1

2

3

4

5

6

7

8

910

1

2

3

4

5

6

7

8

910

Concur Technologies

Zardoya OtisCtrip.com

InternationalLG Household & Health Care

Cepheid

Seattle Genetics

Red Hat

Siemens (India)

ABB (India)Shandong Weigao

Group

Monotype ImagingPolaris

IndustriesCommVault Systems

LKQ Corp.

Under ArmourBuffalo Wild

WingsRed Hat

Jos. A. Bank Clothiers

Tractor Supply

Thoratec

Source URL: http://ur1.ca/5mzfj Source URL: http://ur1.ca/5mzf6

OUR CUSTOMERS

Over the years, we have seen time and again that Red Hat follows a more conscientious approach than others.—THOMAS VON STEIGER, Systems Engineer, Swisscom IT Services

The largest global exchange

on the planet.

The largest global distribution

system in the world.

International hotel group.

A leading enterprise cloud

computing vendor.

OUR CUSTOMERS

Red Hat and JBoss played a crucial role in helping us develop an innovative, reliable product that is recognized by industry experts, analysts, and above all, our customers.—ANUPAM SINGH, CTO

FINANCIAL SERVICES

ENTERTAINMENT & MEDIA

TELECOMMUNICATIONS

HEALTHCARE

GOVERNMENT

With Red Hat there's nocontest in terms of supportand the kinds of things youcan expect to have in thefuture.―Steve Rubinow,

CIO

Red Hat has impressed us with itsoutstanding engineering capabilitiesand commitment to our strategicalliance.―Lans Carstensen, Principal

Engineer

...the real impact on the business was the increased performance with the same applications running on Red Hat Enterprise Linux. ―Michael Blake, Director of Systems & Architecture Implementation

The scalability provided by Red Hat Cluster Suite, GFS, and the clustering feature of JBoss Enterprise Application Platform, along with the agility provided by the JBoss family of products has led our client to consider these products as their top-tier choice.

―Christopher Dale, Associate

We now have a new mantra within our organization: If it can go on Red Hat, then move it to Red Hat.

―Jeffrey Allred, Manager of Network Resources

OUR CUSTOMERS

Performance levels are excellent & the availability is 100% because the machines are no longer dependent on the uptime of the hardware. —HENNIE STAM, Sr. Systems Administrator, City of Rotterdam

NORTH AMERICA LATIN AMERICA

EUROPE / MIDDLE EAST / AFRICA ASIA-PACIFIC

We are pleased to offer supported enterprise-class Red Hat Enterprise Linux on demand for our customers.

Introducing Red Hat Enterprise Linux into the organization has breathed new enthusiasm and life into the business and the people behind it… working with Red Hat has opened our eyes to what's possible with open source.

Wherever you live, it is likely that several letters that youhave received have been read, coded, and processed for delivery by one of our systems using JBoss EnterpriseApplication Platform as the middleware foundation.

―Lyle Johnston, Infrastructure Architect, Bank of New Zealand

―Terry Wise, Director of Business Development

for Amazon Web Services

―Peter Schindler, Product Manager, Infrastructure Logistics, Postal Solutions

WHAT THE ANALYSTS SAY

We handle up to 32,000 transactions/second… Red Hat Linux is our standard… it gives us the stability that we're looking for, faster time to market and it gives us much more flexibility.—ROBERT WISEMAN, CTO

-5% 0% 5% 10% 15% 20% 25%

OTHER

UNIX

MAINFRAME

LINUX / OTHER OPEN SOURCE

WINDOWS

WORLDWIDE INFRASTRUCTURE SOFTWARE REVENUECOMPOUND ANNUAL GROWTH RATE, 2010-2015

-10% 0% 10% 20% 30%

WORLDWIDE APPLICATION SOFTWARE REVENUECOMPOUND ANNUAL GROWTH RATE, 2010-2015

OTHER

UNIX

MAINFRAME

LINUX / OTHER OPEN SOURCE

WINDOWSThrough 2014, at least

75%of well-managedopen source software

investments among mainstreamIT organizations will result in

positive ROI over alternatives...

By 2013,open source

technology85%

will beincluded

inof all modern, commercial software solutions.

What Every IT Practitioner Needs to Know About OSSOctober 2010, #G00207329

GartnerIDC Worldwide Software

2011-2015 Forecast SummaryJune 2011, #228658

ONLY TWO OPERATING SYSTEMS WILL REMAIN

I can't say anything greater for Red Hat other than they have impressed me with their support, their due diligence and their interest in my company.—RICHARD HOOD, Senior Manager, IT Operations

IDC 2010Worldwide Client and Server Operating Environments 2011-2015 Forecast: The Perfect Storm of DisruptionMay 2011, #228201

2000 2002 2004 2006 2008 2010 2012 2014

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Worldwide Paid & Non-Paid Server OS

LINUX

WINDOWS

UNIX

OTHER

PRODUCT PROCESS

Our focus on Linux is based on two things, one, the performance, reliability and cost basis and two, the community of talent that supports it.—SEAN MORIARTY, COO

We participate in & create upstreamprojects.

We build & support open communitiesaround integrated projects.

We enable software & hardware partners to participate at every stage of development.

We commercialize theseinnovations together with a richecosystem of services & certifications.

PARTICIPATE

INTEGRATE

STABILIZE

100,000+PROJECTS

PRODUCT PROCESS

We are in the process of building an entirely new trading platform for Deutsche Börse Group, based on Red Hat Enterprise Linux and MRG… —GERHARD LESSMANN, Executive Board

UPSTREAMOPEN

DEVELOPMENTCREATE

PRODUCTINTEGRATE& STABILIZE

TEST& TUNE MAINTAIN

CUSTOMERS

ACADEMIA

APACPARTNERS

RED HAT DEVELOPMENT POWERHOUSE

Our partnership with Red Hat has enabled us to offer a robust, scalable, high-performance, flexible, and cost-effective technology platform to our customers.—BRIJ MOHAN MAHENDRU, CTO

Source: The Linux FoundationLinux Kernel Development 2010December 2010(Pages 14-15)

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Corporate Contributions to LinuxKERNEL 2.6.30-2.6.35 (DEC 2010)

0%

2%

4%

6%

8%

10%

12%

PER

CEN

T O

F T

OTA

L C

OD

E C

HA

NG

ES

COMPANY / ORGANIZATION *

* the developers who are 'known to be doing this work on their own, with no financial contribution happening from any company' are not grouped together as 'None' and instead are considered part of the 'long tail,' as are contributors of academic or unknown sponsorship.

SUBSCRIPTION MODEL

We came to the decision that Red Hat would be better for our environment because the support we received from Red Hat was outstanding… —DAVE DIPIAZZA, Manager, Internet services

KNOWLEDGEBASE

OPTIONAL TRAINING CURRICULA AVAILABLE

HARDWARE & SOFTWARECERTIFICATION

SOFTWARE ASSURANCE

GLOBAL SUPPORT SERVICES

UNLIMITED

24/7

MULTI-LINGUAL

MISSION-CRITICAL

MULTI-VENDOR CASE OWNERSHIP

STABILITY WITH A 7+3 YEARPRODUCT LIFECYCLE

UPDATES, PATCHES & UPGRADES

SECURITY RESPONSE TEAM

CUSTOMER PORTAL & FORUMS

AWARD-WINNING SUPPORT

Vendor-centric certifications Comprehensive ISV & OEMCertifications.

Complex purchasing scenarios.

Predictable, flexible—no hidden fees

DOING BUSINESS WITH TODAY'S IT VENDORS

The [JBoss Enterprise Application] platform met all our needs perfectly and has proven to be an ideal solution for our developers.—KARIM BEN MUSTAPHA, Project Manager

PURCHASE PROCESS

COMPLEX, MULTI-FACETEDENGAGEMENT.

CONSISTENT, ALL-INCLUSIVESUBSCRIPTION MODEL.

COMPATIBLE SOFTWARE& HARDWARE

KEEPING THINGSRUNNING

Multi-layered support &maintenance portfolios

Unlimited multi-lingual technical support,

updates, upgrades, & maintenance

LICENSING

LEGAL ASSURANCE

Proprietary, closed

Indemnification; proprietary IP

GPL, open

Indemnification; open IP

ADOPTION STRATEGY High cost-of-entry,high cost-of-exit

Low cost-of-entry,portability with low-cost-of-exit

BUDGETINGPurchase: capital expense.

Sustaining: operational expense.

Subscriptions: operationalexpense only.

Basicsoftwareaccess &self-support

CHOOSING YOUR RED HAT RELATIONSHIP

Red Hat Enterprise Linux is the perfect fit for our infrastructure because it enables us to be agile & flexible enough to keep pace with our developers…—DAVID LUTZ, Linux team manager

Standard & premium subscriptionlevels

Access to technical advice &problem-solving.

Ability to influence productdirection.

Technical Account Manageradd-on.

Developers

Academia

Hosters

Cloud Suppliers

SystemIntegrators

Managed ServiceProviders

EmbeddedPrograms forApplianceBuilders

PROACTIVE ENGAGEMENT + PROBLEM RESOLUTION

SPECIALIZEDSPECIALIZEDSUBSCRIPTIONSSUBSCRIPTIONS

RED HATRED HATAS A TRUSTED ADVISORAS A TRUSTED ADVISOR

PROGRAMS FOR:PROGRAMS FOR:

ENTERPRISE LINUX MARKET SHARE

We use Red Hat Enterprise Linux-based servers for everything in our data center from basic testingand development services to QA & production.—KRIS GLOVER, VP of Software Development

Red Hat Continues to Dominate the Enterprise Linux Market

2007 2008 2009 2010

SHIPMENTS SHARE SHIPMENTS SHARE SHIPMENTS SHARE SHIPMENTS SHARE

Red Hat Enterprise Linux 976,000 62.4% 984,000 61.7% 974,000 61.5% 1,094,00 62.2%

Oracle Enterprise Linux 15,000 1.0% 16,000 1.0% 18,000 1.1% 26,000 1.5%

Source: IDC Linux Operating Environments Forecast 2011-2015Doc #227778April 2011

RED HAT: STRATEGIC IN THE ENTERPRISE

The Zimbra and Red Hat solution provides a cost-effective platform that allows for greater efficiency and a unified email and collaboration platform.—JAIME HONORES CORONADO, Managing Director

Red Hat

Solaris

AIX

HP-UX

SuSE

Oracle Linux

Other UNIX/Linux

No UNIX

0% 20% 40% 60% 80% 100% 120%

Which UNIX-based operating systems are strategically most important?

PERCENTAGE OF RESPONDENTS

“Strategic Unix Investment Takes a New Twist in 2011” 11 Feb 2011, #G00210334

Gartner

72.2%

19.6%

8.1%

THE CLOUD OPPORTUNITY

We are more than happy withJBoss Enterprise Application Platform. Our 60-strong development team are happy with the implementation…—PETER HANLON, Chief Technology Architect

By

will be

2014OF ALL IT

Agree

Disagree

Notsure

Source: IDC, “Lessons from IDC's Cloud Leadership Forum 2011: Future-Proofing The Cloud”July 2011, Doc #229249

⅓ORGANIZATIONS

PROVIDERSofCLOUDSERVICES

OF ONE TYPE OR ANOTHER TO

CUSTOMERSand / orBUSINESS

PARTNERS.

IT CONTINUUM

We’ve seen improvements in how we can provide on-demand resources to our artists by leveraging opensource and working with Red Hat.—LANS CARSTENSEN, Principal Engineer

TRADITIONAL VIRTUALIZED CLOUD

ApplicationInfrastructure

& Development

Management

Data & Storage

Base Platform

Application Middleware

Systems Management

SAN, NAS, Database

Operating System

Application Middleware,PaaS

Systems Management,Virtualization Management,

Private Cloud

SAN, NAS, Database+ Big Data, Cache

Operating System+ Hypervisor

PaaS

IaaS

Database, Big Data, Analytics

Guest OperatingSystem

Potential technology adoption over time:

RED HAT'S PLATFORM

I wouldn’t be in the SaaS business if it weren’t for Red Hat. If we’d had to make the capital investment in infrastructure that HP-UX or Solaris required, the margins for achieving profitability […] just wouldn’t be there.

—MARK TIRSCHWELL, CTO

IT A

DM

INS

SY

SA

DM

INS

DEV

ELO

PER

S

ManagementSystems

PaaS

IaaS

App Platforms / Messaging / Cache / Grid / SOA

Red Hat Enterprise Linux

PhysicalServers

Network & Storage Infrastructure

VirtualServers

CloudServers

Scale-Out, High-Performance Storage Software

RED HAT'S PLATFORM

The powerful combination of Red Hat Enterprise Linux & Red Hat Enterprise Virtualization made Red Hat theobvious solution to virtualize our key business-critical systems…—ROGER KEMMLER, IT manager

IT A

DM

INS

SY

SA

DM

INS

DEV

ELO

PER

S

.

ManagementSystems

PaaS

IaaS



PhysicalServers


VirtualServers

CloudServers


RED HAT'S PLATFORM

Among other things, [JBoss] SOA has greatly improved our ability to integrate commercial and government off-the-shelf (COTS/GOTS) products. —CHRISTOPHER DALE, Booz Allen Hamilton

IT A

DM

INS

SY

SA

DM

INS

DEV

ELO

PER

S

ManagementSystems

PaaS

IaaS


PhysicalServers


VirtualServers

CloudServers



RED HAT'S PLATFORM

The choice to invest in Red Hat was largely based on its commitment to the ongoing development of the platform & its strong support capabilities, particularly in reference to mainframe support.—LYLE JOHNSTON, Infrastructure Architect

IT A

DM

INS

SY

SA

DM

INS

DEV

ELO

PER

S

ManagementSystems

PaaS

IaaS


PhysicalServers


VirtualServers

CloudServers


RED HAT'S PLATFORM

We’re running a world-class hospital. We need a mainstream enterprise OS with enterprise support. Red Hat delivers that support with Red Hat Enterprise Linux.—CHRISTOPHER GRAY, Manager Server Technical Support

IT A

DM

INS

SY

SA

DM

INS

DEV

ELO

PER

S

ManagementSystems

PaaS

IaaS


PhysicalServers


VirtualServers

CloudServers



RED HAT'S PLATFORMIT

AD

MIN

S

SY

SA

DM

INS

DEV

ELO

PER

S

PaaS

IaaS

Management

Systems

With Red Hat Enterprise Virtualization, we can have a Windows build available in a matter of minutes. This accelerates the entire testing and development process…—DAN BATEMAN, Infrastructure Coordinator

.



PhysicalServers


VirtualServers

CloudServers


RED HATENTERPRISE VIRTUALIZATION

RED HAT NETWORK

SATELLITE

JBoss Operations Network

THE CIO'S ALTERNATIVE

Red Hat Enterprise Virtualization frees us of that time-consuming process, making deployment a snap. Few competitors can boast similar capabilities.—JUSTIN NEMMERS, COO, Salsa Labs

PaaS CloudInfrastructure

Application Server

Portal / WCM

Enterprise Service Bus(ESB)

Data Services

Business Rules

Messaging

IaaS Cloud Infrastructure

Operating System

Virtualization

Red Hat OpenShift

JBoss Site Publisher

JBoss Enterprise SOA Platform

JBoss Enterprise Data Services Platform

JBoss Enterprise BRMS

Red Hat Enterprise MRG-M

Red Hat CloudForms

Red Hat Enterprise Linux(with embedded KVM virtualization)

Red Hat Enterprise Virtualization

JBoss Enterprise Application Platform

VMware Cloud Foundry, Microsoft Azure, Google App Engine

IBM Websphere Portal Server, Liferay PortalOracle WebLogic Portal

IBM WebSphere ESB & Process Server, Oracle SOA Suite & ES, MuleSule ESB, Progress Sonic ESB. Tibco ActiveMatrix

IBM InfoSphere Federation Server, Progress DataXend SI, Oracle Data Integration Suite, Composite Information Server

IBM WebSphere ILOG Jrules, Oracle BPM SuitePegasystems Business Rules, FICO Blaze Advisor

IBM WebSphereMQ, Spring RabbitMQ,Oracle Enterprise Grid Messaging, Tibco EMS

VMware vCloud Director, Citrix/Cloud.com

Microsoft Windows (with Hyper-V virtualization),Oracle Solaris, IBM AIX, HP/UX

VMware vSphere, Citrix XenServer, Microsoft HyperV

IBM WebSphere Application Server, Spring tc Server, Oracle WebLogic Server

SERVICES PORTFOLIO

[The knowledge transfer] component added value to our consulting purchase and lasted long after the consultant had left.—FRANCOIS MOUNIER, Integration & Development Manager

MIDDLEWARE &APPLICATION SERVICES

INFRASTRUCTURESERVICES

ADVISORY SERVICES

IT Consolidation

Mission-Critical Solutions

Operational Efficiency

Cloud Readiness

Employees will gain skills, promoting IT success.

Large portfolio of courses.Over 100,000 Red Hat Certified

professionals.Over 60% of the Fortune 2000 have

sent students to a Red Hat Training class.

More than 1 million Red Hat Training customers.

Helping solve business and technical challenges with best practices, tailored to business priorities,

resources, and budget.

RED HATPATHWAYS

RED HATCONSULTING

RED HATTRAINING

A portfolio of engagements that involve working side-by-side with customers to maximize ROI.

INTELLECTUAL PROPERTY

Assurances for customers purchasing Red Hat subscription products Designed to allow customers to use their chosen solutions without interruption.

PROTECTING CUSTOMERS

OPEN SOURCEASSURANCE PROGRAM

Challenges to flaws in systemrelating to software patents

Support for patent law reform in Congress

U.S. Supreme Court briefs in Bilski,Global Tech, and i4i

OPEN SOURCELEADERSHIP

Commitment not to enforce patentswith respect to open source software.

RED HATPATENT PROMISE

Red Hat solutions enabled us to leverage IT in a strategic manner. They imparted higher business capabilities to handle aggressive business growth in a smooth manner…—SANJEEV SREEDHARAN, VP, Software Engineering

THANK YOU.RedHatVide

oson YouTube

youtube.com/RedHatVideos

Want to keep

In touch?Red Haton Facebook

facebook.com/RedHatInc

@RedHatNewson Twitter

twitter.com/RedHatNews

Red Haton LinkedIn

linkedin.com/company/3545