The Red Hat Way

Lee Miles General Manager, Red Hat Middle East, Turkey & Africa

Connecting People is the best way to create Technology

Community Builder

Open source communities can innovate far more effectively than traditional R&D labs. So we bring customers, partners, and developers into communities of purpose to solve shared problems together.

Contributor Red Hat also contributes a lot of code. We pay our engineers and developers to work in open technology communities on behalf of our customers, contributing work to the project like everyone else.

Curator

When useful open source technology emerges, we test it, harden it, and make it secure and reliable. Then we gather, package, and support it as enterprise products.

OPEN SOURCE LEADER

#1

* Red Hat client data, 2014

1993 1999 2002 2006 2011 2012 2009 2013 2014

90%

MORE THAN

FORTUNE

500

of the

use

PRODUCTS & SOLUTIONS. *

RED HAT

85 WORLDWIDE OFFICES

35 COUNTRIES

SOLUTIONS AWARD-WINNING

500

S&P

COMPANY

RHT

NYSE:

~8,300 EMPLOYEES

2015

In META

•  Doing business in 40+ countries •  15/16’ was the most successful year

ever in META with very high double digit growth

•  300+ active partners

Momentum for Growth

94%

81%

Note: Market share data based on Gartner Linux OS market, 94% of Fortune 500 data point from 2014 article in The Edge Singapore Source: Gartner, The Edge Singapore (2014), CapIQ, Bain analysis Source: Forrester Wave 1Q2016 for Private Cloud Software Suites

Strong Advocacy

Fortune 500 Customers

Buy rating on RHT

Glassdoor Best Places to work in 2015

Leadership Position

Dominate market share in Linux OS

Consecutive quarters of growth

TSR in 2015

68%

55+

31+

Leader Ranked as Leader for Private Cloud Software by Forrester in 2016

Partnership Momentum

What do we do in a Nutshell?

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

DIFFERENTIATORS

Open collaboration: Products that meet customer needs

Shared development: Accelerated innovation

Better security—assurance

CLOUD

MIDDLEWARE APP DEV – MOBILE OPERATING SYSTEM

VIRTUALIZATION STORAGE

Better price/performance

Better quality

Faster technology innovation

Flexibility

Long-term deployment

Manufacturing MakerBot

3D Prototyping / Printing R&D Quirky

Crowdsource innovation

Employment eLance

Workforce-as-a-Service

Commerce Zaarly

Proximity-based market platform

Transportation Uber

On-demand car service

New Business Models based on IT Innovation

80% of IT budget used for

maintenance and support of existing infrastructure

Small budget for strategic business initiatives: LIMITED INNOVATION

Conflicting IT Priorities

•  Applications with predictable usage models

•  Open source perceived as unknown and risky

•  Compute-centric infrastructure •  Long innovation cycle •  IT as a cost center

•  Dynamic applications that scale to meet demand

•  Open source is well understood and widely adopted

•  Software-defined infrastructure across compute, networking and storage

•  Compressed innovation cycle •  IT as a competitive advantage

EXISTING EMERGING

Seismic Shift in Enterprise IT driven by IT Consumerization

Build bimodal IT Capability

IT INDUSTRIALIZATION Cloud/Web-scale infrastructure

Software-defined flexibility Diverse sourcing

DIGITALIZATION Dealing with uncertainty Exploratory, iterative style Multidisciplinary teams New risk/speed trade-offs

TRADITIONAL MODE •  Waterfall development •  Known vendors •  Strong governance •  Minimized risk •  Technology teams

NONLINEAR MODE •  Iterative development •  Small/innovative partners •  Optimized governance •  Managed risk •  Multidisciplinary teams

RENOVATE THE CORE OF I.T

BUILD BIMODAL

CAPABILITY When speed or innovation is needed, or there is a high degree of uncertainty

Companies are required to build a Bimodal IT Capability

1950´s MAINFRAME

1970´s MINICOMPUTERS

& UNIX

1990´s CLIENT / SERVER

and PCs

WE ARE HERE

MOBILE, CLOUD, BIG DATA

We are entering the 4th Era of Computing

Source: Based on Red Hat and analyst estimates

“Red Hat will thrive over the next decade”

SERVER OS $8

- INVESTORS' MOSAIC, Seeking Alpha

RED HAT ADDRESSABLE MARKET 2017

$58.9 BILLION $8.0 BILLION

RED HAT ADDRESSABLE MARKET 2005

A Growing Market for Partners and Red Hat

RED HAT JBOSS MIDDLEWARE

RED HAT STORAGE

RED HAT ENTERPRISE LINUX

RED HAT ENTERPRISE LINUX OPENSTACK PLATFORM

RED HAT ENTERPRISE VIRTUALIZATION

RED HAT SATELLITE

RED HAT CLOUDFORMS

1M+ projects*

* www.blackducksoftware.com/oss-logistics/choose

RED HAT ENTERPRISE LINUX ATOMIC HOST RED HAT MOBILE

Open Source the “Enterprise Way”

Focus on vendor-only solutions Comprehensive third-party ISV and OEM certifications

Complex purchasing scenarios Designed for flexibility and simplicity PURCHASE PROCESS

COMPLEX, MULTI-FACETED MODEL

ALL-INCLUSIVE SUBSCRIPTION MODEL

COMPATIBLE SOFTWARE & HARDWARE

MAINTAINING Complicated support and maintenance products

Unlimited, fully inclusive support, updates, upgrades, and maintenance

LICENSING

LEGAL ASSURANCE

Proprietary, closed

Indemnification, proprietary IP

GPL, open

Indemnification, open IP

ADOPTION STRATEGY High cost-of-entry, high cost-of-exit (lock-in)

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

BUDGETING Purchase: Capital expense Sustaining: Operational expense

Subscriptions: Operational expense only

MICROSOFT, VMWARE, ORACLE RED HAT

Doing Business with today’s IT Vendors

MULTI-LINGUAL

24 HOURS / 7 DAYS A WEEK

UNLIMITED INCIDENTS

MULTI-CHANNEL

MULTI-VENDOR CASE OWNERSHIP

CUSTOMER PORTAL & FORUMS KNOWLEDGEBASE

HARDWARE CERTIFICATION

SOFTWARE CERTIFICATION

TRAINING CURRICULA (OPTIONAL)

STABILITY WITH A PRODUCT LIFE CYCLE OF UP TO 10 YEARS

SOFTWARE ASSURANCE

SECURITY RESPONSE TEAM

UPDATES

PATCHES

UPGRADES

CLOUD PROVIDER CERTIFICATION

COMMITMENTS

ACCESS LABS

EXPERTISE

ONGOING DELIVERY

TECHNICAL SUPPORT

AWARD-WINNING SUPPORT

YEARS AWARDED:

2011 2012

2013 2014

2015

Red Hat & Your Business: Subscription Model

Basic software access and self-support

•  Developers •  Academia

SPECIALIZED SUBSCRIPTIONS

•  Hosting Providers

•  Cloud suppliers •  System

Integrators •  Managed

Service Providers

•  ISVs

Embedded programs for appliance builders

PROGRAMS FOR:

l Standard and premium subscription levels l Technical advice and problem-solving l Ability to influence product direction l Proactive engagement and problem l resolution l Technical Account Manager (TAM) add-on

PRIMARY SUBSCRIPTIONS

WORLD'S LARGEST OPEN SOURCE SUPPLIER

USED BY 90%+ OF THE FORTUNE 500

Choose Your Relationship with Red Hat

THANK YOU.

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