Red Hat System z Partner Update

Introduction Shawn Wells swells@redhat.com W/W Lead, Linux on System z (+1) 443 534 0130 (US EST, GMT -5) ● Solutions Architect ● Based in Washington, D.C. ● Global responsibility for System z pre-sales efforts

Agenda ● Overview of Red Hat System z business ● Red Hat Partner Programs ● Customer Success Stories ● Open Discussion / Q&A

Red Hat / IBM Relationship ● ● Cross platform relationship founded in the late 90s when Red Hat incorporated System z relationship formalized & announced in 2007 (http://www-03.ibm.com/press/us/en/pressrelease/21513.wss) ● Exponential growth since ● Red Hat has dedicated staff to System z (we haven’t done this for any other H/W platform)

Red Hat System z Business Global IBM System z IFL Shipments IBM vs Red Hat 900 110%

IFLs Shipped

800 700 600 500 IBM Red Hat 39% 400 300 21% 32% 200 100 0 2005 2006 2007 August 2008 Calendar Year ● ● IBM data reflects number of IFLs in inventory Red Hat data reflects number of active RHEL for System z subscriptions YEAR % RHT Of New IFL Sales 2004 2005 2006 2007 Aug 2008 -% 32.30% 21.08% 38.62% 109.61%

Current Campaigns/Programs z10 BC Migration Offer Intended Target: Customers with new workload Promotion: 50% off MSRP Timing: Begins: Ends: 21-OCT 2008 30-JUNE 2009

Current Campaigns/Programs z10 BC Migration Offer RHEL Savings on IBM System z10 BC RHEL Savings on IBM System z10 BC 10-to-1 Consolidation Ratio 4-to-1 Consolidation Ratio $90,000.00 $500,000.00 $450,000.00 $80,000.00 3 YEAR SUBSCRIPTION S 1 YEAR SUBSCRIPTION S $400,000.00 3 YEAR SUBSCRIPTI ON S 1 YEAR SUBSCRIPTI ON S $70,000.00 $350,000.00 $60,000.00 $300,000.00 $ Saved $ Saved $50,000.00 $250,000.00 $200,000.00 $40,000.00 $30,000.00 $150,000.00 $20,000.00 $100,000.00 $50,000.00 $10,000.00 $0.00 $0.00 1 2 3 4 # IFLs 5 6 7 8 9 10 1 2 3 4 # IFLs 5 6 7 8 9 10

Solaris → Linux Migration (Project SUNdown) http://www.redhat.com/sundown http://www-03.ibm.com/systems/migratetoibm/sun/ – SUN announced EOL for UltraSPARC-IV and UltraSPARC-IV+ processors as of 8-JAN 2009. Translates into and end of life for all of their servers that have more than 4 sockets, including the venerable E25k. – Global program with Red Hat & IBM. ● Special focus on APAC, which contains immense SUN footholds. SUN financial reports @ http://www.sun.com/aboutsun/investor/earnings_releases/call_slides.jsp

Solaris → Linux Migration (Project SUNdown) Reference Customer: Story: Consolidated 131 SUN machines into 2x z10 EC’s @ 10x IFLs.

Current Campaigns/Programs Destination z & IBM Academic Programs – Joined Destination z – Free RHEL to IBM Academic Partners ● ● ● ● Marist College Binghamton NCCU San Diego State

Customer References ● City Government of Recife, Brazil http://www.redhat.com/about/news/prarchive/2007/emprel.html – Red Hat customer since 1998 – Mainframe RHEL since September, 2007 – DB2, Oracle, JBoss, WebSphere, Apache – 83% of Recife’s servers are RHEL on IBM System z hardware (50 of 60 servers) “With Red Hat Linux, Emprel was able to make its processing solutions available online, allowing the organization to take the municipal tax and urban planning systems to the city’s service centers. Then, the company updated and developed its tax, planning, health, education, budget, financial and shopping port software.”

Red Hat Partner Program Premier Advanced Partner Ready ISVs Resellers SIs

Appendix

Customer References ● Fratelli Carli [Italy] http://www.europe.redhat.com/solutions/info/casestudies/italian-olive-oil/index.php – Olive Oil Manufacturer – Standardized on RHEL5 – Mainframe RHEL since December, 2007 They currently maintain response times under one second, efficiently manage various databases with over 24 gigabytes of data and simplify communication among operating systems through use of XML within their Mainframe “Red Hat’s strong points? Definitely support, which was provided at any time necessary. The attitude of the company in gladly accepting our challenge was excellent as well,” said Gardini. “Red Hat Enterprise Linux offers versatility and standardization to a variety of users, as it sets no restrictions.”

Customer References ● Bank of New Zealand [New Zealand] – One of the top 50 largest banks in the world – Offices in 4 continents, 15 countries – First production z10 in Southern Hemisphere – Mainframe RHEL since September, 2008 ● ● ● SWIFT ($10B/day) PCBB ($4M/day) Teller Banking Applications

Customer References ● Bank of New Zealand (cont) – Goal to be carbon neutral by 2010 – Consolidated 131 SUN servers to RHEL on z10 ● Mix of small, medium, large: 280Rs, V440s, E10Ks SUN RHEL & z10 Power (kW/hr) 36 22 38% less Heat (kBTUs/hr) 110 74 33% less Space (Racks) 6.5 4.5 31% less Carbon Emissions 66 40 39% less

Upcoming Events ● SHARE Austin (March 1- 6th, 2009) – Session 9277: Fedora for System z: The Open Source Build Process Explained – Session 9290 - Managing Your Red Hat Enterprise Linux Guests with RHN Satellite – Session 9293 - What’s New in Red Hat Enterprise Linux 5

Upcoming Events ● ● WAVV Orlando (May 15th-19th, 2009) – Linux Audit Subsystem – SELinux Deep Dive – Managing RHEL VMs With Red Hat Network Satellite Suggestions welcome! swells@redhat.com