1. SUSE ® Linux Enterprise Point of Service Business Presentation

2. © Novell, Inc. All rights reserved. 2 Customers in Retail Face a Tough Competitive Environment Challenges: – Increased volume of transactions, lowered profit margins, competition – Buyers are demanding better service and more in-store touch points and kiosks – Mobile devices need to be integrated securely – Economic slowdown demands low-cost technology solutions – Outdated POS hardware, environment – Old POS software does not take – advantage of new customer services – Retailers must choose from.NET, – Java, proprietary and homegrown – POS apps

3. © Novell, Inc. All rights reserved. 3 Retain IT Flexibility To Drive Cost Out of the Store Ultimately Portable Application Stacks Automated Compliance Reduce Complexity and Longevity of Store IT Roll-outs Every Retailer Wants... This is often repeated as a promise in many solutions. Let's explore what makes this possible with Novell ® programs and technologies. POS Store Serve r Kios k Back Offic e

4. © Novell, Inc. All rights reserved. 4 Point of Sale Operating System Market Few choices for customers: – SCO = dead platform, but still in use – DOS = single threaded OS, significant technical issues – NT = large footprint, inflexible, hard to manage – WEPOS/POSReady 2009 = locked in to MS, expensive, inflexible, hard to manage – 4690 = Only for the top tier, expensive, locked in to IBM – Linux = stable, reliable, low TCO, but still perceived as minimal ISV/IHV support, and confusion about many different “Linux flavors”

5. © Novell, Inc. All rights reserved. 5 Retail Business Drivers Reduce and simplify licensing costs Increased in-store server performance and reliability Deploy store applications on a secure and compliant platform Centralized management and administration of POS server and image builds Ease the deployment of updates to the POS environment Freedom from vendor lock-in

6. © Novell, Inc. All rights reserved. 6 Retail's Environmental Constraints Retail is very cost conscious with IT spending Distributed store environments with poor bandwidth and connectivity – Pushing updates and images to stores is often a challenge – Stores POS systems must function during WAN outages Localization – Brands, language, timezones, etc. Multiple security and compliance issues – Payment Card Industry Data Security Standard (PCI DSS) – Security breaches are very public 3 rd Party hardware, application and driver support

7. © Novell, Inc. All rights reserved. 7 System Integration Services (BearingPoint, Retail Store Systems, etc.) Application (ISVs like SAP, Oracle, PCMS, etc.) Operating System (4690, WEPOS, POSReady 2009, SLEPOS, DOS, etc.,) POS Hardware (IBM, NCR, Wincor Nixdorf, etc.) Entry Point: Retailer looking to change POS app Entry Point: Retailer looking to upgrade POS HW Entry Point: Retailer looking to transform store experience 1 2 3 How are Retailers Buying POS Operating Systems?

8. © Novell, Inc. All rights reserved. 8 Perception of Linux Build Barriers to POS Adoption (1) Consumer grade Linux from all distributions change too frequently – Consumer Distros are released new ever 6-9 months – Constant churn costs money Consumer grade Linux from all distributions lack enterprise level support and support lifespan – Frequently 12 months or less of support from GA date – Shorter than a testing and rollout cycle in many case

9. © Novell, Inc. All rights reserved. 9 Perception of Linux Build Barriers to POS Adoption (2) Downloaded and customer assembled Linux lack support for the OS, the drivers, and the applications – No one can afford to support and debug many versions of Linux – ISV's are starting to push back, IHV's are close behind – Retail is 2 years behind other enterprises Confusion in market around which distribution is a strategic choice – Customers want someone they can count on … someone like Novell

10. © Novell, Inc. All rights reserved. 1010 Our Answer SUSE ® Linux Enterprise Point of Service SUSE Linux Enterprise Point of Service – A credible, stable, secure OS supported by leading IHVs and ISVs for a reasonable value – The leading enterprise-class Linux solution for point of service environments, and specifically tailored to the unique needs of the retail sector – Includes Linux for user touch points and in-store servers – Delivers the capabilities of a Linux Point of Service solution based on the SUSE Linux Enterprise platform, combining market-leading client and server technology to support multi-tier POS deployments. – Provides a secure, reliable platform that gives you a competitive advantage by improving quality of service while reducing total cost of ownership

11. © Novell, Inc. All rights reserved. 1 SUSE ® Linux Enterprise Point of Service Three Tier Architecture Solution SUSE ® Linux Enterprise Server Point of Service add-on tools > Image Creator (GUI to build terminal images), image templates > POS deployment and management framework consisting of admin and branch server configurations to manage, deploy, distribute and update terminal images Solution Components: Admin Server Image Building Server POS Images Branch Server POS Devices

12. © Novell, Inc. All rights reserved. 1212 SUSE ® Linux Enterprise Point of Service Branch Server Network boot and system management infrastructure for point of service terminals, as well as a generic system platform for in-store applications, like database systems and back-ends for the cash register applications. – Hosts DNS services for the local point of service network – Can optionally host DHCP to control the network boot process – Provides multi-cast boot infrastructure for point of service terminals – Manages distribution of images between the administration server and the point of service terminals – Provides system redundancy and fail-over options

13. © Novell, Inc. All rights reserved. 1313 SUSE ® Linux Enterprise Point of Service Administration Server Central administration point for SUSE Linux Enterprise Point of Service – Maintains master LDAP directory for branch server systems – Can host image build system for the enterprise system – Stores configuration parameters for branch server – Provides synchronization server to distribute images and software updates to branch server systems – Log consolidation for system log outputs from the branch servers (optional)

14. © Novell, Inc. All rights reserved. 1414 SUSE ® Linux Enterprise Point of Service Image Building for POS Clients Based on open source project Kiwi YaST interface, Image Creator, provides GUI front-end to Kiwi for easy image creation Includes pre-configured image templates for retail environments (Local) + Configuration List Application Packages Packages Tool Application Start cmd OS Image LDAP Info Branch Server POS Admin Server Image Server

15. © Novell, Inc. All rights reserved. 1515 SUSE ® Linux Enterprise Point of Service Features Version 11 and SP1 Admin/Build Server Branch ServerPoint of Service Improved GUI for Image Builder Delta images Central management of PoS terminal roles Integration with SMT, problem reporting tools More “security out of the box” (VPN etc.) Branch server can be centralized in the HQ “Ruggedized” for low bandwidth/unreliable connections Full “offline mode”: Register/reconfigure PoS terminals when admin server is offline Install from USB/CD Roll-back and role change even if offline from branch server Basic configuration (terminal ID, IP) directly on terminal Wired or Wireless LAN

16. © Novell, Inc. All rights reserved. 1616 SUSE ® Linux Enterprise Point of Service (SLEPOS) Lower TCO No licensing fees – subscription based OS – Pay only for devices in use running SLEPOS Upgrade protection – upgrade to new SLEPOS version without additional cost Strategic advantages of Linux as a cost reduction platform (skills consolidation) Hardware device independent (reuse old hardware, buy new hardware) Ideal platform to migrate from expensive UNIX systems Lower labor costs from remote, centralized software maintenance

17. © Novell, Inc. All rights reserved. 1717 SUSE ® Linux Enterprise Point of Service Flexibility, Reliability, Security Flexible alternative to WEPOS/POSReady 2009, not tied to device Customized Images Minimize downtime via: – Compatibility with the new High Availability Extension – Integrated high security – World-class support model Use current technology to gain competitive advantage No “timely deterioration” - it just works

18. © Novell, Inc. All rights reserved. 1818 SUSE ® Linux Enterprise Point of Service (SLEPOS) Fills the Gap of IBM's IRES Novell ® Linux Point of Service 9 (NLPOS9) reaching end-of- life Discontinuation of IRES2 (IBM Retail Environment for SUSE Linux) which is based on NLPOS9 SLEPOS11 is “logical successor” and upgrade path for IRES after discontinuation Tools to migrate LDAP settings and configuration from Novell Linux Point of Service 9 servers to SUSE Linux Enterprise Point of Service 11 servers included

19. © Novell, Inc. All rights reserved. 1919 Competition

20. © Novell, Inc. All rights reserved. 2020 SUSE ® Linux Enterprise Point of Service Value Proposition IT View – Minimize downtime via high availability configuration (High-availability extension included via “grandfathering” paragraph), high security, world-class support model – Use technology to gain competitive advantage via enhanced retail functionality Finance view – Low total cost of ownership from lower labor costs from remote and centralized software maintenance, no licensing fees, fewer recoveries to fewer security breaches Business view – Strategic advantages of Linux as a cost reduction platform due to skills consolidation and reduced hardware investment (reuse older hardware) – No dependency on single technology supplier (Microsoft)

21. Retail Solutions for Today and Tomorrow

22. © Novell, Inc. All rights reserved. 2 Novell ® : Charting a Path for the Future Making IT Work As One ™ Helping customers create their next generation IT strategy with intelligent workload management Delivering solutions today to reduce cost, complexity and risk on virtually any platform

23. © Novell, Inc. All rights reserved. 2323 Build Secure Manage Measure POS Application Server Component Database, Java Application Server SLES POS Application (UI) Java and JavaPOS, Drivers SLEPOS POS Terminals, Terminal Image Deploy from USB stick on dedicated hardware Deploy via PXE from branch server Centralize (use a Thin Client together with VDI) Branch Servers, e.g. Application Server Deploy from USB stick on dedicated hardware Deploy as a virtual machine in the store Decentralize (move virtual machine image to datacenter) Workload Management in Retail

24. © Novell, Inc. All rights reserved. 2424 The Three Physical Tiers of Retailing Web application servers Legacy application servers Data warehouse / data marts POS controllers Legacy ISPs Web application servers POS terminals Kiosks ISP app terminals Mobile devices Wired LAN Wireless LAN Internet VPNs Leased lines Tier 2 In-store Servers Tier 1 User Touchpoints Tier 3 Enterprise SLES SLEPOS

25. © Novell, Inc. All rights reserved. 2525 Intelligent Workload Management Can Help Retailers Tier 2 In-store Servers Tier 1 User Touchpoints Tier 3 Enterprise SLES SLEPOS Wired LAN Wireless LAN Internet VPNs Leased lines Web application servers Legacy application servers Data warehouse / data marts POS controllers Legacy ISPs Web application servers POS terminals Kiosks ISP app terminals Mobile devices Ensure Automated compliance Identity-based policies Network / app monitoring and remediation Ensure Cloud-ready infrastructure POS image customization Policy-based deployment User provisioning Ensure POS app portability OS monitoring and reporting Strong, multi-factor authentication support Simplified install Single sign-on

26. © Novell, Inc. All rights reserved. 2626 Novell ® Identity Manager PlateSpin ® Migrate Novell ® Roles Based Provisioning Module Novell ® Access Governance Suite Novell ® Privileged User Manager SUSE ® Linux Enterprise Point Of Service Novell ® ZENworks ® Configuration Management How Novell ® Delivers Intelligent Workload Management to Retail Tier 1 Tier 2Tier 3 Novell ® Sentinel ™ Agent Novell ® Identity Manager Agent SUSE ® Linux Enterprise Point Of Service SUSE ® Linux Enterprise JeOS Novell ® ZENworks ® Configuration Management Agent Novell ® SecureLogin Novell ® Access Manager ™ DAS Agent (fast user switching) SUSE ® Linux Enterprise Server Novell ® Sentinel ™ Novell ® Identity Manager PlateSpin ® Migrate PlateSpin ® Orchestrate Novell ® ZENworks ® Configuration Management

27. © Novell, Inc. All rights reserved. 2727 Novell Systems Management 2 Manage Human Resources within the stores. Manage access controls. Eliminate Generic IDs SUSE ® Linux Enterprise Security Components 4 SUSE Linux Enterprise Server based, open source security components for Proxy/Webcache, Intrusion Detection, Security Scans SUSE ® Linux Enterprise Server 1 Foundation, platform Management server OS Point of Sale registers, Virtualized Security Servers & Consolidation Platform Novell Identity Management Family 3 Manage Enterprise Linux Servers and Windows systems in the stores or corp office. Patching and Upgrades Policies defined within centralized store operations How it fitsWhat it delivers Policies and events from centralized store operations, integrated with existing enterprise solutions Virtualized Security Server and Consolidation platform Event Audit and Compliance 5 Capture and evaluate security events across systems and resources Physical and Logical access points with store based and centralized correlation 00 Note 1 – 5: Please refer to Appendix A for specific product information Novell ® Systems Management Manage human resources within the stores Manage access controls Eliminate generic IDs SUSE ® Linux Enterprise Security Components SUSE Linux Enterprise Server based, open source security components for proxy/Webcache, intrusion detection, security scans SUSE ® Linux Enterprise Server Foundation, platform management server OS Point of sale registers, virtualized security servers and consolidation platform Novell ® Identity Management Family Manage enterprise Linux servers and Windows systems in the stores or corp office Patching and upgrades Policies defined within centralized store operations How it fitsWhat it delivers Policies and events from centralized store operations, integrated with existing enterprise solutions Virtualized security server and consolidation platform Event Audit and Compliance Capture and evaluate security events across systems and resources Physical and logical access points with store based and centralized correlation 00 Note 1 – 5: Please refer to Appendix A for specific product information The Secure Store Solution Components

28. © Novell, Inc. All rights reserved. 2828 Point of Service (POS) in the Cloud Age Most POS software will run in a remote cloud Small shops will rent their POS (SaaS) Large shops will run their own POS service cloud Technology like HTML 5 will make it possible to do transactions in the unlikely case that the online connection is down POS devices will often be mobile or even virtual (i.e. the POS application frontend runs on a device that is only temporarily used as the POS terminal) Connectivity will often be wireless Cash money and external peripherals will be less relevant than today Self service will be everywhere Cloud Store Home Office Accounting, Data Mining Point of Service

29. ISV/IHV Support and Customer Successes

30. © Novell, Inc. All rights reserved. 3030 IHVs and ISVs Supporting SUSE ® Linux Enterprise Point Of Service

31. © Novell, Inc. All rights reserved. 3131 Casas Bahia Linux for Mainframes, Linux in Retail Innovative financing model to service the lower-income segment of Brazil’s population Network, e-mail, and Web applications 55,000 employees across 200 cities, and support rapid growth Unsupported OS/2 architecture Move to a platform with greater flexibility and scalability Provide real-time access to customer data in each of its 500 stores SUSE ® Linux Enterprise Server IBM System z Mainframe Avoided US$8 million cost of moving to a proprietary platform Completed seamless transition to Linux without any employee retraining Achieved 99.999 percent uptime Stores have real-time access to customer data with Linux POS system Can now set up stores in two days, rather than two weeks Workloads Business Issues Novell ® Solution Results

32. © Novell, Inc. All rights reserved. 3232 Karstadt Warenhaus AG Point of Service IT Infrastructure POS application: Vision Beanstore from PCMS 122 retail locations with 28,700 employees and 5,600 POS terminals Create modern, reliable, low-cost retail management infrastructure Establish platform independence to avoid vendor lock-in SUSE ® Linux Enterprise Server Novell Linux Point of Service IBM SurePOS 700 series Complete Linux platform for all Karstadt sales systems, including new information terminals for customers Stability and security at POS for rapid and reliable customer service Reduced hardware costs Open, hardware-independent solution capable of adapting to new requirements while giving room for growth Workloads Business Issues Novell ® Solution Results

33. © Novell, Inc. All rights reserved. 3 Sherwin Williams Point of Service More than 3,000 retail stores in 50 US states, Canada and Latin America Retail store multi-function desktop/registers and in-store servers Needed to replace current POS operating system Wanted a supported Linux operating system platform Looked for code compatibility across their relevant applications, desktops and servers. SUSE ® Linux Enterprise Point of Service SUSE Linux Enterprise Server Reduced total cost of ownership through flexible pricing model, centralized administration and deployment tools, small footprint images and support for heterogeneous IT environments A standardized platform, and a solution that works across the entire infrastructure from point of sale terminals to mainframe servers Better support Workloads Business Issues Novell ® Solution Results

34. © Novell, Inc. All rights reserved. 3434 National Vision Point of Service More than 500 retail locations in 44 states, including America’s Best Contacts and Eyeglasses and Vision Centers at select Wal-Mart stores 5,000 point-of-sale devices within its stores Performance issues with its existing UNIX-based point of service operating system Keeping in-store systems updated and running seamlessly Plans to continue to add at least 40 new stores per year Looked for a vendor that understands retail market and business SUSE ® Linux Enterprise Point of Service SUSE Linux Enterprise Server Anticipated a huge increase in system performance, stability and uptime by moving from UNIX to Linux With a more flexible and reliable Linux-based platform, they can better serve changing needs of business while providing customers with faster and better service Novell provided a terrific engineering and support team and deep understanding of retail business Workloads Business Issues Novell ® Solution Results

35. Summary

36. © Novell, Inc. All rights reserved. 3636 Key Reasons to Choose SUSE ® Linux Enterprise Point of Service Summary “Scales” from old to brand-new hardware Improved flexibility and vendor independence Effective security and reliability Great stability and uptime Customize to your needs Reduced total cost of ownership

37. © Novell, Inc. All rights reserved. 3737 Resources Where do I get more information? – Product information for SUSE ® Linux Enterprise Point of Service > http://www.novell.com/products/linuxpointofservice http://www.novell.com/products/linuxpointofservice – Cool Solutions articles > http://www.novell.com/communities/coolsolutions http://www.novell.com/communities/coolsolutions > Search for “SLEPOS” – Available support offerings > http://www.novell.com/linux http://www.novell.com/linux – Supported hardware and technical limits > http://developer.novell.com/yessearch/search.jsp http://developer.novell.com/yessearch/search.jsp > Search in category “Novell Product: SUSE Linux Enterprise Point of Service” – Supported packages > http://support.novell.com/products/server/supported_packages/ http://support.novell.com/products/server/supported_packages/ > Search for “SUSE Linux Enterprise Server 11 for x86”

38. © Novell, Inc. All rights reserved. 3838 Your Next Steps Learn more about SUSE ® Linux Enterprise Point of Service at the web site: – http://www.novell.com/products/linuxpointofservice/ Analyze your current point of service environment – Is it supported and secure? – Does it allow for new and modern customer services? – Is it still economic? Talk to us about a Linux point of service solution 800-529- 3400 http://www.novell.com/company/conacts-offices

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