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

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

2 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.

# 1 OPEN SOURCE LEADER 1993 1999 2002 2006 2009 2011 2012 2013 2014 2015 MORE THAN 90% of the FORTUNE

* * Red Hat client data, 2014 ~8,300 EMPLOYEES 85 WORLDWIDE OFFICES 35 COUNTRIES AWARD-WINNING

3 # 1 OPEN SOURCE LEADER MORE THAN 90% of the FORTUNE 500 use PRODUCTS & SOLUTIONS. * * Red Hat client data, 2014 ~8,300 EMPLOYEES 85 WORLDWIDE OFFICES 35 COUNTRIES AWARD-WINNING SOLUTIONS S&P 500 COMPANY NYSE: RHT 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

on RHT 55+ Consecutive quarters of growth

4 Momentum for Growth Strong Advocacy Leadership Position Partnership Momentum 94% Fortune 500 Customers 68% Dominate market share in Linux OS 81% Buy rating on RHT 55+ Consecutive quarters of growth Glassdoor Best Places to work in TSR in 2015 Leader Ranked as Leader for Private Cloud Software by Forrester in 2016 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

OPERATING SYSTEM CLOUD VIRTUALIZATION STORAGE Flexibility Faster technology innovation Better quality

5 What do we do in a Nutshell? We offer a range of mission-critical software and services covering: MIDDLEWARE APP DEV MOBILE OPERATING SYSTEM CLOUD VIRTUALIZATION STORAGE Flexibility Faster technology innovation Better quality DIFFERENTIATORS Better security assurance Shared development: Accelerated innovation Better price/performance Long-term deployment Open collaboration: Products that meet customer needs

innovation Employment elance Workforce-as-a-Service Commerce

6 New Business Models based on IT Innovation 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

7 Conflicting IT Priorities 80% of IT budget used for maintenance and support of existing infrastructure Small budget for strategic business initiatives: LIMITED INNOVATION

8 Seismic Shift in Enterprise IT driven by IT Consumerization EXISTING Applications with predictable usage models Open source perceived as unknown and risky Compute-centric infrastructure Long innovation cycle IT as a cost center EMERGING 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

9 Companies are required to build a Bimodal IT Capability IT INDUSTRIALIZATION Cloud/Web-scale infrastructure Software-defined flexibility Diverse sourcing TRADITIONAL MODE Waterfall development Known vendors Strong governance Minimized risk Technology teams RENOVATE THE CORE OF I.T BUILD BIMODAL CAPABILITY DIGITALIZATION Dealing with uncertainty Exploratory, iterative style Multidisciplinary teams New risk/speed trade-offs NONLINEAR MODE Iterative development Small/innovative partners Optimized governance Managed risk Multidisciplinary teams When speed or innovation is needed, or there is a high degree of uncertainty Build bimodal IT Capability

10 We are entering the 4 th Era of Computing WE ARE HERE 1950 s MAINFRAME 1970 s MINICOMPUTERS & UNIX 1990 s CLIENT / SERVER and PCs MOBILE, CLOUD, BIG DATA

A Growing Market for Partners and Red Hat

thrive over the next decade - INVESTORS'

11 A Growing Market for Partners and Red Hat ADDRESSABLE MARKET 2005 $8.0 BILLION ADDRESSABLE MARKET 2017 $58.9 BILLION SERVER OS $8 Red Hat will thrive over the next decade - INVESTORS' MOSAIC, Seeking Alpha Source: Based on Red Hat and analyst estimates

12 Open Source the Enterprise Way ENTERPRISE VIRTUALIZATION STORAGE SATELLITE 1M+ projects* ENTERPRISE LINUX OPENSTACK PLATFORM ENTERPRISE LINUX CLOUDFORMS JBOSS MIDDLEWARE ENTERPRISE LINUX ATOMIC HOST MOBILE *

13 Doing Business with today s IT Vendors MICROSOFT, VMWARE, ORACLE COMPLEX, MULTI-FACETED MODEL ALL-INCLUSIVE SUBSCRIPTION MODEL PURCHASE PROCESS Complex purchasing scenarios Designed for flexibility and simplicity COMPATIBLE SOFTWARE & HARDWARE MAINTAINING Focus on vendor-only solutions Complicated support and maintenance products Comprehensive third-party ISV and OEM certifications Unlimited, fully inclusive support, updates, upgrades, and maintenance LICENSING Proprietary, closed GPL, open LEGAL ASSURANCE Indemnification, proprietary IP 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

Red Hat & Your Business: Subscription Model TECHNICAL SUPPORT

DELIVERY CUSTOMER PORTAL & FORUMS KNOWLEDGEBASE COMMITMENTS

MULTI-CHANNEL STABILITY WITH A PRODUCT LIFE CYCLE OF UP TO 10 YEARS

SOFTWARE CERTIFICATION CLOUD PROVIDER CERTIFICATION SOFTWARE

14 Red Hat & Your Business: Subscription Model TECHNICAL SUPPORT EXPERTISE 24 HOURS / 7 DAYS A WEEK UNLIMITED INCIDENTS ONGOING DELIVERY CUSTOMER PORTAL & FORUMS KNOWLEDGEBASE COMMITMENTS HARDWARE CERTIFICATION MULTI-LINGUAL MULTI-VENDOR CASE OWNERSHIP MULTI-CHANNEL STABILITY WITH A PRODUCT LIFE CYCLE OF UP TO 10 YEARS PATCHES UPDATES UPGRADES ACCESS LABS TRAINING CURRICULA (OPTIONAL) SOFTWARE CERTIFICATION CLOUD PROVIDER CERTIFICATION SOFTWARE ASSURANCE SECURITY RESPONSE TEAM AWARD-WINNING SUPPORT YEARS AWARDED:

15 Choose Your Relationship with Red Hat PRIMARY SUBSCRIPTIONS Embedded programs for appliance builders PROGRAMS FOR: Hosting Providers Cloud suppliers System Integrators Managed Service Providers ISVs 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 WORLD'S LARGEST OPEN SOURCE SUPPLIER SPECIALIZED SUBSCRIPTIONS Developers Academia Basic software access and self-support USED BY 90%+ OF THE FORTUNE 500

16 THANK YOU. Red Hat on on Twitter facebook.com/redhatinc twitter.com/redhatnews RedHatVideos Red Hat youtube.com/redhatvideos linkedin.com/company/3545 on YouTube on LinkedIn

The world's leading Provider of open source Enterprise IT products and services Rainer Liedtke

The world's leading Provider of open source Enterprise IT products and services Regional Director EMEA Sales, Country Manager Germany 1 Status Of Open Source Software Adoption 2 What Do These Numbers Represent?