Red Hat Value Proposition

Santiago MadrugaRegional Director, Spain & PortugalOctober 2010

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What we say we deliver

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Reliable – Stable

TECHNOLOGY

What we say we deliver

1

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Reliable – Stable

TECHNOLOGY

Better

SERVICES

What we say we deliver

1

2

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Reliable – Stable

TECHNOLOGY

Better

SERVICES

NO LICENCE FEES,

Lower Costs

What we say we deliver

1

2

3

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Reliable – Stable

TECHNOLOGY

Better

SERVICES

NO LICENCE FEES,

Lower Costs

NO VENDOR LOCK-IN,

More Freedom & Choice

Lower cost of ownership

What we say we deliver

1

2

3

4

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Reliable – Stable

TECHNOLOGY

Better

SERVICES

NO LICENCE FEES,

Lower Costs

NO VENDOR LOCK-IN,

More Freedom & Choice

Lower cost of ownership

What we say we deliver

Complete Certified

Ecosystem

1

2

3

4

5

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And, in case that was not enough...

Clear technology road-map

Easy ways for customers to influence direction

Easy ways for customers to collaborate and contribute

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But

-is it true ?

-what does the market say ?

Red Hat Enterprise Linux March 2010 10

Red Hat is deliveringValue

Google

Red Hat

WebEx (Cisco)

Citrix

Adobe

Microsoft

Salesforce.com

Novell

Oracle (including PeopleSoft)

SAP

CA

Rank2009

1

1

3

4

5

6

7

8

9-

10

11

Rank2008

1

2

-

3

4

7

6

5

8-

9

10

Rank2007

2

1

-

3

4

6

-

7

8-

5

9

Rank2006

-

1

-

2

-

4

-

3

6-

5

7

#1 VALUE

#1 RELIABILITY

92% LOYALTY

CIO Insight Vendor Value Study. www.Cioinsight-digital.com/cio/200910

“We needed to change the model and make compute services expand and contract automatically.”

“Red Hat gets it. In kernel virtualization, virtualization management, the application orchestration and cloud abstraction layers, Red Hat gets it. Red Hat is giving customers the opportunity to innovate [in different ways] and leverage them where it makes sense.”

- Derek Chen, Digital Operations, DreamWorks

RED HAT CLOUD CUSTOMERS

“Red Hat Enterprise Virtualization provides the high availability, reliability, security and scalability that we desired for the foundation of our new cloud offering.

We believe that Red Hat Enterprise Virtualization is the efficient virtualization technology to run the workloads that our enterprise customers will deploy on our cloud service today.”

- Masato Minamisawa, executive manager of IP Technology Department, Business Network Services Division

at NTT Communications

RED HAT CLOUD CUSTOMERS

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The customers are voting

2 006 2 007 2 008 2 009 2 01 0

0

1 00

2 00

300

400

500

600

7 00

800 Company valued at approx $8Bn, nearly double than 2 yrs ago

NYSE quoted

Part of S&P500

+ 3.900 employees

World-Wide Reach

Evolution of Turnover:

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- Red Hat does not charge license fees

then

- What does it sell ???

- How does it deliver it ???

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Red Hat sells “subscriptions”:

Everything a company many need to use open-source technology with all the

reliability, all the confidence and all the assurances it requires as a business

in a cost-efficient manner

INTERNAL ONLY | PRESENTER NAME16

+ 7 years (up to 10) support duration for each major release of Red Hat Enterprise Linux and at least 5 years for JBoss Enterprise Software.

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We kindly call this packetized technology “enterprise open source”

and we deliver it through annual subscriptions

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- Why Red Hat ???

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Red Hat spent over $130M last year in developing and improving Linux

More than 14% of the 2.6 Linux kernel software is written by Red Hat associates

Source: Linux foundation report, Aug 2009

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Linux Kernel Development

Who is reviewing the work?

Source: Linux foundation report, Aug 2009

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Red Hat Product Portfolio

INFRASTRUCTURERed Hat Enterprise Linux - Server- Client

Red Hat Enterprise MRG

Red Hat Enterprise Virtualization

MIDDLEWAREApplication Server

Integration Platform- SOA Platform- Data Federation Services- Business Process Management- Business Rules- Portal

SERVICESRed HatGlobal Professional Services

Red HatGlobal Support Services

Red Hat Global Learning Services

MANAGEMENTDeployment Management

Application Management

SecurityVirtual Desktop Infrastructure

Red Hat Enterprise Virtualization for Desktops

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1- Better TECHNOLOGY

2- Better SERVICE

3- NO LICENCE FEES, Lower Costs

4- More Freedom & Choice, NO VENDOR LOCK-IN

5- FULL Ecosystem, FULLY CERTIFIED

from the people who invest the most on itand know it best