Red Hat, Inc. The Revolution of Choice

Red Hat, Inc. Founded in 1995 –Bob Young, CEO - Co-founder –Marc Ewing, CTO - Co-founder Headquartered in Research Triangle Park, NC Products distributed in over 50 countries Users in almost every country worldwide Funded by –Venture Investors - Greylock and Benchmark Partners –Strategic Corporate Investors - Dell, Compaq, IBM, Intel, Novell, Oracle, SAP, Netscape

Background What is Open Source? –Worldwide community of software developers participating in continuous cycle of development, review and testing What is Linux? –A collection of software packages including the Linux kernel and many GNU packages which have been integrated to form a full-featured POSIX compliant operating system. What is Red Hat Linux? –The pre-eminent operating platform for Internet based computing... An OS integrated and tested with 600 additional software packages... From the the leading Linux software developer… An OS backed by the best developers and technology in the industry...

Three major paradigm shifts 1. New Software Development Model 2. Commoditization of Operating System 3. Control and Choice Delivered to: Individuals - developer, system administrator, user Operating Environment - web server, database server application server, file server, print server Corporate IT - with focus on solutions and remedies Conventional - Lengthy time-to-market - Gather requirements - Proprietary development - Develop prototype - Test & Ship - Problems fixed with later releases Real-time Product Development - Continuous user feedback - Worldwide development community - Continuous updating and testing via Internet - Problems fixed and fixes distributed immediately

Benefits Benefits of Linux in general –Control of the computing environment –Reduction in the total cost of ownership (*) –Reliability (*) –Speed of innovation –Internet readiness (*) Benefits of Red Hat Linux –Leading development talent and technology resources –Backed by strategic industry partnerships –Simplified installation and maintenance through RPM –A strong recognized brand name –A reference OS platform for mainstream enterprise applications (*) Datapro, 1998

TECHNOLOGY ENTHUSIASTS EARLY MAINSTREAM COMMERCIAL EARLY ADOPTERS IP Code Services Apache Samba Apache Samba Database ERP Tech Computing Aps Linux Marketplace Evolution

Market Opportunity and Growth Source: IDC Linux server shipments grew 212% in 1998, accounting for 17% of all server unit shipments Commercial Linux shipments are estimated to grow at a compound annual growth rate of 25% through 2003, compared with12% for all other operating systems combined. Worldwide Total Client and Server Shipments, (ooo)

Sample of Customer Applications I nternet –Web hosting –Mail server –Intranet/Extranet Core infrastructure services –File server –Print server –Application server –Database server Engineering –Software development –Electronic design automation Massively parallel scientific applications Thin client, server appliance, embedded applications

Upcoming Product Enhancements Improved SMP support Better scalability Full RAID Installation enhancements Robust user interface choices with GNOME and KDE Increased device support Clustering High availability Network management Products tailored to partners and specific customer sets Red Hat 6.0 Under development On Demand

Significant Awards InfoWorld Product of the Year 1996, 1997, 1998 PC Magazine Editor’s Choice Award, March 1999 PC Magazine Technical Innovation Award, 1998 Linux Journal Reader’s Choice Award 1998 Best of Show, Networld Interop, 1998 Best of VarVision, 1998 European Software Excellence Award, 1997 Software Development Magazine’s Productivity Award, 1997 Software Development Product Excellence Award, 1997