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Financial Analyst / Investor Track SUSECON 2017 Nils Brauckmann CEO, SUSE [email protected]

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Page 1: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

Financial Analyst / Investor TrackSUSECON 2017

Nils BrauckmannCEO, [email protected]

Page 2: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

Agenda� Business Overview and Introduction

Nils Brauckmann, CEO – SUSE� Market Growth & SUSE Products

Thomas di Giacomo, CTO – SUSE� SUSE Partners & Alliances

Michael Miller, President Strategy, Alliances & Marketing - SUSE� Go-To-Market and Customer Overview

Ronald de Jong, President Global Sales – SUSE� Recap and Q&A

Page 3: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

3

SUSE at a Glance1st

Enterprise OpenStack Distribution1st

Enterprise Linux & Open Stack Distribution

25+Years of Open Source Innovationfor Enterprises

PositiveBrand

Reputation

5000+Global

Partners

Large Customer Base

2/3 of the Fortune Global 100 use SUSE Linux Enterprise

20,000+Certifications

Global ReachEnterprise

Grade

Page 4: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

4

SUSE in Micro Focus International

North America International(EMEA, LATAM)

APJ

Corporate Operations

Finance IT HR

Product Development

Legal Business Operations & PMO

Field Marketing

Product Management

Go To Market

Product Development

NA, EMEA, APJ, LATAM

Renewal Sales

Services

Product Management

Field Marketing

Customer CareShared Marketing Services, Sales Operations

Channel, Systems Integrators & OEM Channel, Systems Integrators & Independent Software Vendors

Product Group

Go To Market

Micro Focus is one company with two product portfolios balancing focus with leverage of scale.

Micro Focus International CEO & Board

Page 5: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

5

SUSE Charter Within Micro Focus International PLC (Group)

• Achieve sustainable, profitable revenue growth

• Operate with the mindset of an independent business within the group in alignment and in support of group strategies, policies, processes and systems.

• Deviation from group standards in areas where it is required to effectively fulfil on our charter to grow revenue.

• Leverage Group scale, strength and capabilities

Page 6: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

6

The SUSE Executive Team

Sri RasiahVice President ofFinance

Ronald de JongPresident ofSales

Ralf FlaxaPresident of Engineering

Steve GilliverVice President ofHR

Nils BrauckmannChief Executive Officer

Michael MillerPresident of Strategy, Alliances & Marketing

Thomas Di GiacomoChief Technology Officer

Page 7: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

77

Why Open Source?

Page 8: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

8

Open Source Business Model

• It’s not about selling intellectual property• Source code is freely available • Technology is developed by the community• Open source vendors:

— Participate and contribute to community— Influence and create upstream innovation— Turn “upstream” technologies into reliable

solutions• Provide enterprise services and support

Page 9: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

9

Open Source Advantages

• Mass collaboration of developers within open, diverse communities leads to rapid innovation

• Reduced time-to-market and cost-to-market• Full transparency of development efforts• Source code freely available to be utilized• Interoperability, flexibility and choice• Reduced vendor lock in

Faster access to the latest innovations with the safety and freedom of open standards

Page 10: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

10

Subscription Business Model

• A packaging and pricing model

• Can apply to open source or proprietary products

• Subscriptions include:

• Access to installable binaries• Security patches and upgrades• Product fixes and technical support

• Commercial implications:• Revenue is recognised over subscription lifetime• Renewal transaction is the same as initial purchase• Different metrics: TCV, ACV, ACD

Page 11: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

1111

Market Landscape

Page 12: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

12

COMPETITIONInnovating

Faster

Customers Expectations

MORE DATA, LARGER DATA,

Growing Faster

STORAGE NEEDSExploding

SECURITYwith

Availability

APPPortability

Market Pressures

&CustomerDemands

SERVICESMust be

AvailableEverywhere

IoT

IT AGILITYRequired

MOBILEAccess

Page 13: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

13

Public Cloud

Software Defined Everything

Application Delivery

Storage NetworkingVirtualization

Operating System

Platform as a Service (PaaS)

Enterprise Private Cloud (IaaS)Management

Physical Infrastructure: Server, Switches, Storage

Containers & Orchestration (CaaS)Ops, Monitor & Patch

Deployment

CROWBARSALT

OrchestrationHEAT

Open Source Infrastructure TechnologiesFor Digital Transformation

Page 14: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

1414

Why SUSE?

Page 15: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

15

MissionTo provide and support enterprise-grade open source solutions, from software-defined infrastructure to application platforms, with exceptional service, value and flexibility.

StrategyWith partners and communities, we innovate, adapt and deliver secure open source technologies to create solutions for mixed enterprise IT environments.

SUSE Mission and Strategy

SUSE solutions are hardened and resilient — suitable for the most demanding, mission-critical, high-performance situations.

Page 16: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

Open Source

Community

Results

How SUSE Adds Value

16

• Increased agility through rapid innovation

• Affordable mission-criticalperformance reduces cost

• Open, optimized for mixed IT ÎReduced Risk

• Expertise in creating open source innovation upstream

• Hardening open source innovation into enterprise-grade technology and products

• High-quality support and services with ecosystem of partners

SUSE is ideally positioned to help Enterprise IT to master the challenges of digital transformation by increasing the agility and adaptability of IT infrastructure and business application delivery from a foundation of 25+ years in open source, positive brand reputation, established customer base and adjacent technology experience.

Page 17: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

17

SUSE – The Open, OpenSource Vendor

• Collaboration and partnership beyondimproving time and cost-to-market

• Open to support wish for choices and enterprise IT realities

• Optimized and open for mixed-IT, heterogeneous environments and embracing proprietary products

• Open to build best-of-breed solution stacks – including competitive products

Page 18: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

18

WhereSUSE Leads

Linux in Automotive10 of the largest global automobile mfgs. are active SUSE customers

x10

Linux in Retail7 out of 10 of the largest retailers in theU.S. are active SUSE customers

7/10Linux in Telecom10 of the largest telecommunications carriers rely on SUSE

x10Linux in Pharma7 out of 10 of the largest pharmaceuticalcompanies use SUSE Linux Enterprise

7/10

Linux in Aerospace9 out of 10 of the largest aerospacecompanies rely on SUSE

9/10SAP on Linux70% of all SAP applications runningon Linux run on SUSE

70%

Linux in HPCHalf of the world’s 20 largest supercomputers run on SUSE

50%

Linux in Large EnterpriseOver 80% of the Fortune Global 50 areactive SUSE Customers

80%

Mainframe LinuxOver 15 years of mainframe Linuxmarket share leadership

15+

Linux in Manufacturing7 out of 10 world’s largest manufacturersuse SUSE Linux Enterprise

7/10

Linux in Finance4 out of 5 of the world’s largestbanks use SUSE Linux Enterprise

4/5

Page 19: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

1919

Market Growth & SUSE Products

Thomas Di GiacomoCTO, SUSE

Michael MillerPresident of Strategy, Alliances & Marketing, SUSE

Page 20: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

20

Public Cloud

Software Defined Everything

Application Delivery

Storage NetworkingVirtualization

Operating System

Platform as a Service (PaaS)

Enterprise Private Cloud (IaaS)Management

Physical Infrastructure: Server, Switches, Storage

Containers & Orchestration (CaaS)Ops, Monitor & Patch

Deployment

CROWBARSALT

OrchestrationHEAT

Open Source Infrastructure TechnologiesFor Digital Transformation

Page 21: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

21

Public Cloud

Software Defined Everything

Application Delivery

Storage NetworkingVirtualization

Operating System

Platform as a Service (PaaS)

Enterprise Private Cloud (IaaS)Management

Physical Infrastructure: Server, Switches, Storage

Containers & Orchestration (CaaS)Ops, Monitor & Patch

Deployment

CROWBARSALT

OrchestrationHEAT

SUSE Multi-Purpose Operating System

Physical Infrastructure: Server, Switches, Storage

Operating SystemSUSE Linux Enterprise Server

Page 22: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

22

Public Cloud

Application Delivery

Storage NetworkingVirtualization

Operating System

Platform as a Service (PaaS)

Enterprise Private Cloud (IaaS)Management

Physical Infrastructure: Server, Switches, Storage

Containers & Orchestration (CaaS)Ops, Monitor & Patch

Deployment

CROWBARSALT

OrchestrationHEAT

SUSE Infrastructure as a Service and Storage

Physical Infrastructure: Server, Switches, Storage

Operating SystemSUSE Linux Enterprise Server

Software Defined InfrastructureStorageSUSE Enterprise Storage

NetworkingSDN and NFV

VirtualizationKVM, Xen, VMware, Hyper-V and z/VM

Private Cloud / IaaSSUSE OpenStack Cloud

Page 23: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

23

Public Cloud

Application Delivery

Storage NetworkingVirtualization

Operating System

Enterprise Private Cloud (IaaS)Management

Physical Infrastructure: Server, Switches, Storage

Ops, Monitor & Patch

Deployment

CROWBARSALT

OrchestrationHEAT

SUSE Application Delivery and Containers

Physical Infrastructure: Server, Switches, Storage

Operating SystemSUSE Linux Enterprise Server

Software Defined InfrastructureStorageSUSE Enterprise Storage

NetworkingSDN and NFV

VirtualizationKVM, Xen, VMware, Hyper-V and z/VM

Private Cloud / IaaSSUSE OpenStack Cloud

Container ManagementSUSE CaaS Platform

Platform as a ServiceSUSE Cloud Application Platform

Page 24: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

24

Application Delivery

Storage NetworkingVirtualization

Operating System

Enterprise Private Cloud (IaaS)Management

Physical Infrastructure: Server, Switches, Storage

SUSE Management and Public CloudAn Open, Flexible Infrastructure Approach

Physical Infrastructure: Server, Switches, Storage

Operating SystemSUSE Linux Enterprise Server

Software Defined InfrastructureStorageSUSE Enterprise Storage

NetworkingSDN and NFV

VirtualizationKVM, Xen, VMware, Hyper-V and z/VM

Private Cloud / IaaSSUSE OpenStack Cloud

Container ManagementSUSE CaaS Platform

Platform as a ServiceSUSE Cloud Application Platform

Public CloudSUSE Cloud Service Provider Program

Operations, Monitor and Patch • SUSE Manager• SUSE OpenStack

Cloud Monitoring• openATTIC

Cluster Deployment• Crowbar• Salt

Orchestration• Heat• Kubernetes

Management

Page 25: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

25

SUSE Software-Defined Infrastructure An Open, Flexible Infrastructure Approach

Application Delivery

Physical Infrastructure: Server, Switches, Storage

Public CloudSUSE Cloud Service Provider Program

Container ManagementSUSE CaaS Platform

Software Defined InfrastructureStorageSUSE Enterprise Storage

NetworkingSDN and NFV

VirtualizationKVM, Xen, VMware, Hyper-V and z/VM

Operating SystemSUSE Linux Enterprise Server

Platform as a ServiceSUSE Cloud Application Platform

Private Cloud / IaaSSUSE OpenStack Cloud

Operations, Monitor and Patch • SUSE Manager• SUSE OpenStack

Cloud Monitoring• openATTIC

Cluster Deployment• Crowbar• Salt

Orchestration• Heat• Kubernetes

Management

Page 26: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

26Source: Gillen, A. Bespoke Data. IDC, April 2016

Market Opportunity: Enterprise Linux OS

The Paid Linux server OS market is expected to grow from $1.97B in 2016 to $2.88B by 2019, at an estimated CAGR of 13.5%

13.9%13.6%

13.1%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2016 2017 2018 2019

Worldwide Linux Server Operating System – Paid Subscriptions Revenue $M 2016-2019 (with YoY Growth)

Page 27: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

27

SUSE Linux Enterprise ServerPower your physical, virtual and cloud-based, mission-critical workloads with a world-class, high performance, secure open source server OS.

www.suse.com/products/server

• Enterprise-grade OS for the most data and compute intensive workloads across all industries

• Broadest support for multi-architectures, multi-hypervisors, IHVs and ISVs

• Innovative OS with HA for SAP HANA, live patching, optimized for containers

• Foundational for software-defined infrastructure and application delivery platform

99.999% Mission-critical

Availability

80% Savings in Server

Management

80% Cost

Reduction

Differentiation

Page 28: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

28Source: Sadowski A. 451 Research, October 2016

Market Opportunity: OpenStack Cloud

The SUSE addressable OpenStack Cloud market opportunity is expected to grow from $325M in 2016 to $1.09B by 2020, at an estimated CAGR of 35.4%.

53.2%

29.7%

25.1%

35.1%

0

200

400

600

800

1,000

1,200

2016 2017 2018 2019 2020

SUSE Addressable Market Opportunity for OpenStack Cloud Revenue $M 2016-2020 (with YoY Growth)

Page 29: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

29

SUSE OpenStack CloudDeliver the agility, faster time-to-market and the innovation needed to quickly respond to today’s ever-changing business-critical demands.

www.suse.com/products/suse-cloud

• Enterprise-grade innovative IaaS/SDI (HA, scalability, containers) for both private clouds and service providers.

• Industry leading ease of installation, rolling upgrades and automated management

• Unmatched range of hyper-visor support, guest OS agnostic for best-of breed mixed-IT environments

• Strong and growing ISV and IHV ecosystems for hybrid clouds, NFV, appliances, etc.

Fast / EasyBuild Entire Clouds

in Hours. Deploy Servers in Minutes

100%Software-defined

infrastructure (SDI)

72%Choose

OpenStack Cloud for Cost Savings

Differentiation

Page 30: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

30

Market Opportunity: Software-defined Storage

30

• The SDS market opportunity is expected to grow from $859M in 2016 to $1.39B by 2019, at an estimated CAGR of 17.5%.

• SUSE Addressable Market: Gartner predicts open-source storage will account for 20% market share in 2018 (up from <1% in 2013)

Source: see note

19.8%

16.1%

16.7%

-

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018 2019

Market Opportunity for Software Defined Storage Revenue $M 2016-2019 (with YoY Growth)

Hyperconverged

File Storage

Block Storage

Object Storage

Page 31: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

31

SUSE Enterprise StorageEnable IT to deliver highly scalable and resilient storage designed to scale from terabytes to petabytes.

www.suse.com/products/suse-enterprise-storage

• Enterprise-grade visualization and manageability with openATTIC technology + easy integration with OpenStack

• Uniquely provides unified object, block and file storage with distributed, self-distributing and healing architecture

• Ideal replacement for expensive proprietary/traditional storage (for tier 3 and 4 needs: archiving and back up)

• Consistently first to market with key customer-driven innovations (e.g. performance, multi-OS clients)

ReduceCapital

expenditures

CutOperational expenditures

AdaptQuickly to changing market conditions

Differentiation

Page 32: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

32• Source: 451 Research, Market Monitor – Overview Review: Cloud Enabling Technologies Containers

Market Highlights, March 2017

Market Opportunity: Containers

• The Container Market is expected to grow from $759M in 2016 to $3.4B by 2021, at an estimated CAGR of 35.3% over the period

45.8%

39.0%

34.4%

31.2%

27.0%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2016 2017 2018 2019 2020 2021

Worldwide Market Opportunity for Container Revenue $M 2016-2021 (with YoY Growth)

Page 33: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

33

SUSE CaaS PlatformEnable IT and DevOps professionals to more easily deploy, manage, and scale container-based applications and services.

https://www.suse.com/products/caas-platform/

• Light weight scaling platform, on premise or public cloud, for quick implementation of enterprise-grade Dev/Ops• Unique combination of the orchestration power of Kubernetes with SUSE Linux OS optimized for containers• Integration of secured and enterprise grade container lifecycle within SUSE Manager and Build capabilities• Rapid semi-continuous release cycle for development of incremental differentiation

1Complete package for faster time to

market

3Public clouds offer pre-

defined deployment configurations

71%Enterprise running or

planning to run container workloads in the next

year

Differentiation

Page 34: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

34

Market Opportunity: Private PaaS

Source: 451 Research, Market Monitor – Overview Review: Cloud Enabling Technologies –Private PaaS Highlights p.48, March 2017

The Private PaaS Market is expected to grow from $691.7M in 2016 to $2.4B by 2021, at an estimated CAGR of 28.8% over the period

35.5%

30.8%

28.5%

26.0%

23.5%

-

500

1,000

1,500

2,000

2,500

3,000

2016 2017 2018 2019 2020 2021

Worldwide Market Opportunity for Private PaaS Revenue $M 2016-2021 (with YoY Growth)

Page 35: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

35

SUSE Cloud Application PlatformSpeed delivery and streamline lifecycle management of traditional and cloud-native applications with a modern application delivery platform.

www.suse.com/products/suse-cloud-application-platform

• Enterprise hardened and supported distribution of the industry leading Cloud Foundry PaaS technology• Delivers lower cost of ownership and higher flexibility than traditional application platforms (independent of

services)• Comprehensive user interface for management and orchestration• Deployable on SUSE CaaS Platform or other Kubernetes including Public Clouds (for existing and new projects)

100%Open Source and enterprise-ready

1Platform that brings

together Cloud Foundry and Kubernetes

ReduceInstallation and management

complexity with containerized distribution

Differentiation

Page 36: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

3636

SUSE Partners & Alliances

Michael MillerPresident of Strategy, Alliances & Marketing, SUSE

Page 37: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

37

Partner Ecosystem

Hardware Vendors

Software Vendors

Resellers

Distributors

System Integrators

Cloud Services Providers

SUSE

Page 38: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

38

A Broad Ecosystem

13,500+CertifiedHardwareConfigurations

7000+CertifiedApplications

3200SolutionProviders& SystemIntegrators

1800TechnologyPartners

600TrainingPartners

5000+PartnerEcosystemmembers

Page 39: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

39

Independent Software Examples

Page 40: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

40

ISV Alliance Examples

• SUSE OpenStack Cloud as preferred Infrastructure as a Service layer

• Bundles SUSE technologies in integrated systems offering

• Provids joint customers with a hybrid cloud management solution

• Certified on SUSE Linux Enterprise Server

• SUSE CaaS Platform integrates with MapR persistent data services

• Optimized with SUSE OS to provide best in class performance amongst Hadoop vendors

• SUSE OpenStack and Storage powering SAP Cloud Platform

• Industry‘s perferred OS for SAP Applications

• Upstream collaboration on OpenStack and Cloud Foundry

Page 41: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

41

Cloud Service Provider Examples

Page 42: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

42

Cloud Service Provider Examples

• Leading optimized Linux platform for SAP HANA

• Multiple consumption models (on-demand, BYOS, reserved instances)

• New customer case studies: Fitch Ratings and Pacific Drilling

• SUSE Linux Enterprise Server for SAP Applications on Microsoft Azure

• SQL Server 2017 and Microsoft Azure Stack powered by SLES

• Multiple SUSE offerings for Microsoft WSL available in the Windows Store

• OpenStack Infrastructure for SAP Cloud Platform

• Software-defined storage for SAP Cloud Platform

• Upstream collaboration on OpenStack and Cloud Foundry

• SUSE Linux Enterprise Server for SAP Applications Available on Google Cloud Platform

Page 43: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

43

Independent Hardware Vendor Examples

Page 44: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

44

• Acquisition of OpenStack and Cloud Foundry talent and technology assets from HPE

• SUSE Linux Enterprise certified and supported on entire HPE server and storage line

• #1 partner for SAP HANA sales

• IBM z14 avalable with certified SUSE Linux Enterprise Server 12

• First and leading Linux on Power platform for SAP HANA

• Expansion of HW partnership into Cloud with Bluemix

• 25 years of engineering excellence enabling enterprise data centers

• Seamless one stop shop supports for Intel HPC Orchestrator and SLES for HPC

• Support of Intel Cloud Builders, Intel Fabric Builders and Intel Storage Builders

• Preferred OS platform for KunLun

• Continued collaboration as exclusive OS for teclo appliances

• Preferred OS platform for SAP HANA

IHV Alliances Examples

Page 45: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

45

• SUSE Linux Enterprise Server is a Dell Tier 1 operating system

• Embedded use of SUSE technologies across multiple Dell platforms

• Virtustream Enterprise Cloud supports SLES for mission-critical applications

• Lenovo delivers broad support for SUSE’s Linux, OpenStack, Storage and HPC offerings

• Lenovo Storage Solution for SAP HANA powered by SUSE Enterprise Storage

• Lenovo Converged Analytics Platform for SAP Vora with MapR and SUSE

• Introduction of unique “Mission Critical SAP HANA“ offering (UCS + SUSE)

• Deep integration with Cisco ACI for software-defined networking with SUSE OpenStack Cloud as a preferred configuration

• SUSE-powered ‘Business Critical Linux’ support service tailored for Japanese Market

• Joint collaboration for new SUSE OpenStack Cloud Monitoring product

• Lauched PrimeFLEX for SUSE OpenStack Cloud offering

IHV Alliances Examples

Page 46: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

4646

Go-to-Market and Customer Overview

Ronald de JongPresident of Sales, SUSE

Page 47: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

47

Sales Go-to-Market Strategy

• Scale direct sales organization with growth • Maintain continuous focus on core business while diversifying portfolio• Maximize opportunities to cross-sell new products to existing account base• Invest to attract and win new logo accounts• Leverage major alliances with differentiated joint offerings • Align direct sales organization with channel/alliance partners• Development and growth of new products

- Develop customer base for private cloud infrastructure - Enter neighboring storage market related to data-center

and cloud infrastructure- Capitalize on growing enterprise use of public cloud- Engage in emerging container, orchestration and microservice markets

Globally aligned strategy and organization with consistent execution in support of SUSE’s business objectives and growth plan.

Page 48: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

48

PurchasingPrograms

VLA

IHV

Embedded

MLAVLA Direct

Cloud

Education

Shop (Online)

Distribution

Distribution

Distribution

PartnerPrograms

Resellers

SI

IHVs

Embedded

CSP

EducationResellers

EndUsers

SUSE

Routes to Market

Page 49: Financial Analyst / Investor Track - Micro Focus · 2017-10-12 · 3 SUSE at a Glance 1st Enterprise Open 1st Stack Distribution Enterprise Linux & Open Stack Distribution 25+ Years

49

Sales OrganizationStructure is designed to support and to maximize the revenue potential of the various inter-connected routes to market

Region Description

North America

� Two sales regions America and Canada

� Roles: — Partner and Alliance Sales Executives— Direct Representatives— ISRs— Sales Engineers

- Consultants- Premium Support Engineers

EMEA

� Country based organization

� Roles:— ISRs— Partner and Alliance Sales Executives— Direct Representatives— Sales Engineers

- Consultants- Premium Support Engineers

AsiaPac � Country based organization� Direct Representatives, partner executives, sales engineers, consultants and premium support engineers

Latin America � Largely an emerging territory for SUSE

Global

� Global Alliance & OEM sales team � Global Web shop Manager� Embedded team� Support engineers� Renewal team

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50

SUSE Customers by Geo

4,250

7,951

2,031

805

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

NA EMEA APJ LATAM

Total # of Unique CustomersOver a 3-year Period (FY15-FY17)

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Bookings Breakdown by Industry

Confidential Information: Provided Under Non-Disclosure

31%

17%16%

11%

8%

7%4%

3% 3% Manufacturing

Retail

Finance

High Tech

Government

Transportation

Academic

Healthcare

Other

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Customer Case Studies

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• Running 2 Petabytes of customer critical data on enterprise-grade Ceph storage solution from SUSE

• Need for Enterprise Support 24/7, patches, updates

• Migration to SUSE Enterprise Storage done with without any downtime for the users

Economically scalable storage solution for continuously growing business critical data

SUSE Enterprise Storage Example

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• Enabled migration of 1,200 info terminals within 14 weeks

• Provided a faster, more reliable platform for Java and web apps

• Increased standardization by running SUSE Linux Enterprise on both servers and info terminals in the shops

Reducing costs by standardizing and optimizing technology across data-center and point of sales devices

SUSE Enterprise Linux Server Example

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• Optimized for cloud native development, automated installation and configuration

• Demand for continuous integration for dynamic in-car applications and big data analytics.

• Simplifies management and maintenance of infrastructure resources, reducing maintenance effort and costs.

Self-service IaaS simplifies management and speeds development and deployment of cloud-native applications

SUSE OpenStack Cloud Example

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Recap and Q&A

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SUSE Key Messages

• SUSE is well established and ideally positioned to bethe open source partner for Enterprises - 25 years of relevant open source experience- Positive brand reputation, established enterprise customer

base and adjacent, relevant technology experience• Backed by the capabilities and strength of Micro Focus

International, the 7th largest software company in the world

• SUSE has a clear vision and strategy aligned with Enterprise IT requirements for agile and adaptable software defined infrastructure to master the challenges of digital transformation

• SUSE operates in innovative growth market segments that require continuous investment

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Q & A

58

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Appendix

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Open SourceEngagement

YaST

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Reference Examples by Industry

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ManufacturingCustomers

And more…

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FinancialCustomers

And more…

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GovernmentCustomers

And more…

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EducationCustomers

And more…

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TechnologyCustomers

And more…

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Reference Examples by Solution

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EnterpriseLinux

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Enterprise Linux

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EnterpriseLinux

72

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OpenStackCloud

73

I Layer

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