Version 2.5, 2012

Open Source Platform for Mission-Critical ComputingSPEAKER NAME

Speaker Title, Organization

Presentation Date

I.T. INFRASTRUCTURE IS AT A BREAKING POINT

“CIOs envision a shift in focus from cost efficiency and compliance to value creation and innovation... the days of merely improving efficiency seem to be behind us. These days, IT contributes directly to realizing the business strategy...”

–KPMG International: From Cost to Value: 2010 global survey on the CIO Agenda

67%Of IT budget spent maintaining legacy infrastructure, not delivering new capabilities

Of IT budgets slashed

70%

Of CIOs say they're understaffed50%Of IT executives say meeting SLAs “more or much more” difficult and costly

46%

Organizations plan to spend 80% of IT budgets

maintaining existing infrastructure

in 2012*

* White paper: The Evolution of the Datacenter and the Need for a Converged Infrastructure, IDC, June 2011

% of IT Spend0

20

40

60

80

100

INNOVATE

MAINTAIN

What if you could take on your next

challenges, instead of maintaining

the status quo?

*Research Report: 2012 Spending Intentions Survey, Enterprise Strategy Group http://www.esg-global.com/research-reports/research-report-2012-it-spending-intentions-survey/

% of IT Spend0

20

40

60

80

100

INNOVATE

MAINTAIN

ONLY TWO OPERATING SYSTEMS WILL REMAIN

2007 2008 2009 2010 2011 2012 2013 2014 2015 20160

2,000

4,000

6,000

8,000

10,000

12,000

14,000

LinuxUnixMainframe

OtherWindows

Source: Worldwide Client and Server Operating Environments Market Analysis and 2012-2016 Forecast and 2011 Vendor Shares: The Changing Dynamics and Demographics (IDC #236428, August 2012).

WO

RLD

WID

E PA

ID &

NO

N-P

AID

SER

VER

OS

SHIP

MEN

TS, S

UB

SCR

IPTI

ON

S &

DEP

LOY

MEN

TS (0

00

)

WORLDWIDE PAID & NON-PAID SERVER OPERATING SYSTEMS

Source: IDC Worldwide Linux Client & Server Operating Environments 2012–2016 Forecast and 2011 Vendor Shares.July 2012 Doc #236064

RED HAT LEADS THE MARKET

2007 2008 2009 2010 2011SHIPMENTS SHARE 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% 1,289 62.9%

SuSE Linux Enterprise Server 429,000 27.5% 453,000 28.4% 422,000 26.6% 452,000 25.7% 482 23.5%

Canonical Ubuntu 56,000 3.6% 58,000 3.6% 71,000 4.5% 90,000 5.1% 131 6.4%

Oracle Linux 15,000 1.0% 16,000 1.0% 18,000 1.1% 26,000 1.5% 57 2.8%

2007 2008 2009 2010 2011REVENUE SHARE REVENUE SHARE REVENUE SHARE REVENUE SHARE REVENUE SHARE

Red Hat Enterprise Linux 319.50 69.4% 413.70 68.0% 463.40 66.7% 556.40 68.9% 692.20 72.6%

SuSE Linux Enterprise Server 112.60 24.4% 167.20 27.5% 198.20 28.5% 214.60 26.6% 221.30 23.2%

Oracle Linux - - 5.00 0.7% 9.90 1.2% 12.10 1.3%

Worldwide Linux Server Operating Environment New License Paid Shipments/Subscriptions by Vendor

Worldwide Linux Operating Systems New License Shipment/Subscription & Upgrade/Maintenance Revenue (USD $M)

The 451 Group: “Oracle and Red Hat: A Tale of Two Vendors” TIP Insight — 10/10/2011

RED HAT IS BECOMING MORE STRATEGIC FOR CUSTOMERS

RED HAT

CISCO

HP

BMC

DELL

VMWARE

MICROSOFT

IBM

ORACLE

PERCENTAGE OF CHANGE IN SPENDING

+90%+50%+10%–10%–50%–90%

> 50% more

25%-50% more

11%-24% more

1-10% more

1-10% less

11%-24% less

25%-50% less

> 50% less

Research

“Compared to 2010, approximately how much will your spending with this vendor change in 2011?”

1.INFRASTRUCTURE MODERNIZATION

2.OPERATIONAL EFFICIENCY

3.NEXT-GENERATIONSOLUTIONS

RISC / UNIX migration

Compelling TCO

Industry-standard infrastructure

Standard operating environment

Staffing efficiencies

Uptime and reliability

Cloud

Big Data

Social Business

Hyperscale

THREE REASONS WHY COMPANIES CHOOSE RED HAT

INFRASTRUCTURE MODERNIZATION:MIGRATE APPS WITH CONFIDENCE1.

Companies that migrated from RISC systems to RHEL experienced a TCO savings of 61% over 3 years.1

Migrating from RISC systems to RHEL on x86 provides an average ROI of 350%.1

Over 9,000 applications from 1,500 ISVs are supported, and 3,000 hardware platforms are certified on RHEL.

RHEL DELIVERS THE RELIABILITY AND SCALABILITY FOR MISSION-CRITICAL APPLICATIONS

1 Migrate to Red Hat Enterprise Linux: Lower the Total Cost of Ownership, Alinean, December 2011

WHAT THE ANALYSTS SAY

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

OTHER

UNIX

MAINFRAME

LINUX / OTHER OPEN SOURCE

WINDOWS

WORLDWIDE INFRASTRUCTURE SOFTWARE REVENUECOMPOUND ANNUAL GROWTH RATE, 2011-2016

-10% 0% 10% 20% 30%

WORLDWIDE APPLICATION SOFTWARE REVENUECOMPOUND ANNUAL GROWTH RATE, 2011-2016

OTHER

UNIX

MAINFRAME

LINUX / OTHER OPEN SOURCE

WINDOWS

Source: IDC Worldwide Software 2012-2016 Forecast Summary, June 2012, #235326

“By 2017, 65% of applications running on proprietary versions of UNIX in 2012 will have been migrated to x86 (primarily on Linux), making IT planning essential... When planning a UNIX migration exit strategy, make Linux a priority.”

GARTNERSource: The future of UNIX: Hazy and Overcast, So Reach for the Umbrella — April 2012 #G00232079

“As we run very complex infrastructurelandscapes with hundreds of instances, Red Hat

was an ideal partner, and we began standardising on Red Hat Enterprise Linux in the course of our

regular replacement cycle.” – Bardo Werum, Vice president, Data Center Lufthansa Systems

OPERATIONAL EFFICIENCY:STANDARDS DRIVE COST SAVINGS2.Organizations that standardize on RHEL over non-paid

Linux lower their TCO through substantial productivity gains

79% more servers per admin18% more users per admin52% less time to deploy

a new application

92% fewer helpdesk hours per year per user

80% fewer downtime hours per year per user

The result: 49% lower IT staffing costs

OPERATIONAL EFFICIENCY:STANDARDS DRIVE COST SAVINGS2.

Organizations that standardize on Red Hat Enterprise Linux over non-paid Linux realize lower infrastructure costs

The result: 52% lower infrastructure costs

Organizations were able to adopt a more standardized hardware environment

Standardization leads to longer IT infrastructure life cycles

Comprehensive Red Hat tools created dramatically lower management software costs

“By standardising on Red Hat Enterprise Linux, Transport for London benefits from increased flexibility and performance, ultimately allowing us to respond with agility to the changing dynamics of our business environment. By reducing the total cost of ownership of our infrastructure estate, we have the

assurance that we are truly achieving efficiency gains, without compromising on technical superiority or future

potential.” – Daniel Demonakis Wintel and UNIX platform manager Transport for London

NEXT GENERATION SOLUTIONS:LINUX FOR STRATEGIC INITIATIVES3.

8 out of 10 clouds are built on Linux.

Nearly 3 out of every 4 (72%) enterprises choose Linux to support big data.1

80% are growing their Linux install base, while only 22% are growing their Windows Server footprint.1

1 Linux Adoption Trends 2012: A Survey of Enterprise End Users, Linux Foundation, January 18, 2012

RED HAT ENTERPRISE LINUX PROVIDES THE FOUNDATION TO SUPPORT THE NEXT GENERATION MOVE FROM PHYSICAL TO VIRTUAL TO CLOUD

“The certified and supported solutions stack from Red Hat – from virtualization technology to operating system and

application engine – is the foundation of the Ixonos Elastic Cloud service. It provides the scalability, robustness, and

security that is required by demanding and globally deployed online services and applications.”

– Jari Kekkonen, Business Development Director Ixonos

RED HAT PRODUCT PORTFOLIO

VALUE OF SUBSCRIPTION

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 PRODUCT LIFECYCLEOF UP TO 10 YEARS

UPDATES, PATCHES & UPGRADES

SECURITY RESPONSE TEAM

CUSTOMER PORTAL & FORUMS

AWARD-WINNING SUPPORT

100,000+PROJECTS

HOW WE DO IT: COMMUNITY PROCESS

TOP KERNEL CORPORATE CONTRIBUTORS IN 2012

Source: The Linux Foundation, Linux Kernel Development; How Fast it is Going, Who is Doing It, What They are Doing, and Who is Sponsoring It, March 2012, p. 10

RED

HA

T

INTE

L

NO

VEL

L

IBM

TEX

AS

INST

RU

MEN

TS

CO

NSU

LTA

NTS

BR

OA

DC

OM

NO

KIA

SAM

SUN

G

OR

AC

LE

GO

OG

LE

WO

LFSO

N M

ICR

OEL

ECTR

ON

ICS

AM

D

FUJI

TSU

PEN

GU

TRO

NIX

ATH

ERO

S C

OM

MU

NIC

ATI

ON

S

FREE

SCA

LE

MIC

RO

SOFT

ST E

RIC

SSO

N

WIN

D R

IVER

MIT

AC

SFR

AN

ALO

G D

EVIC

ES

TGLX

PIT

A

LIN

AR

O

QLO

GIC

MA

RV

ELL

Changes since Kernel 2.6.36

* 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.

'LONG TAIL'OF CONTRIBUTORS

HOW WE DO IT: BROAD ECOSYSTEM

HOW WE DO IT: WORKING TOGETHER

Red Hat Enterprise Linux is the world’s leading enterprise platform

providing IT leaders the kind of stability that frees you to take on your biggest challenges now,

the flexibility to do what’s most important in the future, and an ecosystem of solutions and support

that will be at your side, no matter what.

THANK YOU.RedHatVideoson YouTube

youtube.com/RedHatVideos

Want to keepIn touch?

Red Haton Facebook

facebook.com/RedHatInc

@RedHatNewson Twitter

twitter.com/RedHatNews

Red Haton LinkedIn

linkedin.com/company/3545

Version 2.5, 2012

Open Source Platform for Mission-Critical ComputingSPEAKER NAME

Speaker Title, Organization

Presentation Date

RED HAT IS:A high-growth, billion dollar, S&P 500 index company....

The world's leading developer & supplier of open source software for Enterprise IT...

...offering a comprehensive portfolio of products and services.

CLOUD

MIDDLEWARE

OPERATING SYSTEM

VIRTUALIZATION

STORAGE

CONSULTING

TRAINING

INDIRECT

DIRECTU.S.

OTHE RCOUNTRIES

...globally active in all major vertical markets, with strongchannel & direct delivery models.

Financial

Government

Tech & Media

Telecom

Logistics &Transportation

Services

Energy

Healthcare

Retail

Manufacturing

...

DELIVERING:● Exceptional Price/Performance● Operational Flexibility

● Open Source Quality & Innovation ● Alignment with Customer Requirements

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 via community-powered innovation.

Shared development reduces costs & 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