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AGENDA Linux today Operating systems in the payments industry Why Linux? Future of open source

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CHINA MIGRATING TO UBUNTU KYLIN CANONICAL AND CHINESE STANDARDS BODY ANNOUNCE UBUNTU COLLABORATION London and Beijing, 21 March 2013: The China Software and Integrated Chip Promotions Centre (CSIP) today announced a new reference architecture for Chinese operating systems. CSIP, which is a part of the Chinese Ministry of Industry and Information Technology (MII), has selected Canonicals Ubuntu as the basis for that reference architecture in order to provide a flexible, open, widely-used and standardised operating system.

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UBUNTU MOST SECURE END-USER OS UK'S SECURITY BRANCH SAYS UBUNTU MOST SECURE END-USER OS December, 2013: The Communications-Electronics Security Group (CESG), the group within the UK Government Communications Headquarters (GCHQ) that assesses operating systems and software for security issues, has found that while no end-user operating system is as secure as they'd like it to be, Ubuntu 12.04 is the best of the lot.

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LINUX SUPPORTS NFC PAYMENTS LINUX KERNEL 3.13 OFFICIALLY RELEASED WITH SUPPORT FOR NFC PAYMENTS January 22, 2014: Linus Torvalds has proudly announced the immediate availability for download of the highly anticipated Linux kernel 3.13, which brings major improvements, numerous new and updated drivers, as well as integrated support for near-field communications (NFC) payments

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OPEN SOURCE: FREEDOM OF CHOICE Encourages modularity Linux as a building Runs on multiple platforms and devices Collaborative effort (Intel, IBM, even Microsoft contribute)

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WHO IS USING LINUX? Internet based companies Mobile device manufacturers Stock exchanges Governments Others

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OS MARKET SHARE BY USE CategorySourceLinux basedOther UnixIn-HouseWindowsOther Desktop, laptop, netbook Net Applications 1.60 % (Ubuntu, etc.) 7.68 % (OS X) 90.72 % (XP, 7, Vista, 8) Smartphone, tablet StatCounter Global Stats 44.95 % (Android) 33.7% (iOS) 1.79 % (WP8, RT) 19.46 % Server (web)W3Techs 34.62 % (Debian, CentOS, RHEL) 32.48 % (BSD, HP-UX, Aix, Solaris) 32.9 % (W2K3, W2K8) SupercomputerTOP500 96.4 % (Custom) 2.4 % (UNIX) 0.4 %0.8 % MainframeGartner 28 % (SLES, RHEL) 72 % (z/OS -IBM) Gaming consoleNintendo, Sony, Microsoft, Ouya 29.6 % (PS3) 40.9 % (Wii) 29.5 % (Xbox) EmbeddedUBM Electronics 29.4 % (Android, Other) 4.29 % (QNX) 13.5 %11.65 % (WCE 7) 41.1 % Real timeNewTechPress 19.3 % (Android) 20.1 %35.8 % (XPE, WCE) 24.8 %

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CHALLENGING PAYMENTS ENVIRONMENT New technologies: EMV, NFC, mobile payments High Security Requirements Growing credit card use; increasing TPS rates New types of companies involved in payment Short product delivery time frames Need for adaptable solutions

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PAYMENTS PROCESS PLAYERS

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OS BY PAYMENT DEVICE Source: IDC

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OS IN BACKEND SYSTEMS USAGE SHARE FOR BACK-END SYSTEMS: Source: W3Tech

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OS KEY REQUIREMENTS

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OPEN SOURCE ARCHITECTURE SECURITY ADVANTAGES Quick and transparent problem resolution Biodiversity defense Multi-user model Modular design = Modular security

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PRACTICAL ADVANTAGES OF LINUX Services run independently Reduced rebooting frequency Scalability (Supercomputers) Responsibility and control held by system administrator Easy monitoring and auditing

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POLICY REASONS Independence from mainstream vendors Ease of localization and customization Source code control Self-reliance

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FUTURE OF LINUX ON BACK-END SYSTEMS LINUX SHARE EXPECTED TO INCREASE TO 50% IN NEXT 3 YEARS! Gartner reported that 28 % of back-end systems used Linux. They now expect this to increase to over 50 % within the next 3 years! Source: Gartner

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WHERE ARE WE HEADING? Public cloud infrastructure Going mobile More shared development More new payments products; shorter development cycles Multi-platform support Increasing security requirements

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QUESTIONS Veronika BILKOVA CEO EFTlab Pty Ltd MULTI-PLATFORM PROCESSING AND TESTING SOLUTIONS FOR THE PAYMENTS INDUSTRY veronika.bilek@eftlab.com.au