1. Linux Desktops: Ready for the Enterprise Greg Mancusi-Ungaro Director of Marketing Novell Ximian Group

2. Session Road Map Linux trends Novell's Linux Strategy Real World Experience Questions and Answers

3. Linux is Rapidly Growing  Server installed base CAGR 21% 35% installed base share by ‘06  Desktop installed base CAGR 44% Linux desktop run rate exceeds Mac 10% new unit share by ’06 7% installed base share by ‘06 Source:IDC, July 2002. Installed base units include revenue and free units, but exclude “multiple deployments”, such as internal copying, mirrored web download sites, etc. 00010203 Year 0 = desktop = server 0405 2.3 4.4 6.4 9.5 13.9 19.7 3.2 3.7 4.3 5.1 6.7 8.3 40 06 27.8 9.9 10 20 30 Linux Installed Base (MM)

4. Linux Hype Cycle

5. Today's Adopters are Pioneers IDC expected to report that world wide Linux desktops have achieved 3% of installed desktop market share Windows 95% Macintosh/Other 2% Linux 3.2%

6. Linux Desktop Deployments Up to 1000000

7. Linux Desktop Early Activity City of Largo900 desktops – thin client City Of Munich Public policies. 14,183 seats IBMIncreasing Linux desktop deployments from 15,000 to 50,000 by 2004 HSBCMoving away from OS/2 clients for 50,000 seats Brazil Significant rollout in community computing resource centers Spain400,000 Linux desktops in Extramadura, Andalucia Thailand Government subsidized initiative to deploy 1 million Linux desktops in SMBs ChinaUp to 1 million seats per year

8. Who's Using Linux?

9. Novell’s Open Desktop Initiative (ODI) All employees moving to OpenOffice in 2004 All engineering running SUSE LINUX Initial user segment (~2,000 users) on Linux in 2004 Real-world input into –Novell’s Migration offerings to customers –OpenOffice development efforts –Novell Linux Desktop development efforts

10. Linux Success Leads to Heterogeneity Linux at 3% Penetration now, 7% in 2005 Linux must prove it can exist peacefully within Microsoft environments Document compatibility Printing Collaboration with Exchange Network Navigation Deployment, training, support and management costs must be minimized

11. Example: Linux Desktops in Movies ●Linux deployed on workstations and in the render farm ●Speed/Cost ●SGI stumbles ●Intel outperforms ●Unix conversion

12. City of Largo GNOME tablets

13. Linux Adoption is a Reality Greater Choice, Greater Control Freedom to choose from multiple vendors Flexibility and standards Strategic independence Leverage against Microsoft Reduced Cost of Ownership Lower capital investment Reduced maintenance and support cost Faster, cheaper, more flexible cross-platform application development

14. Linux Adoption: Driven from the Edge of the Enterprise

15. Current Uses of Linux Question: What applications does your company run on open source today? % of Respondents Using Email / Communication Servers Security Enterprise Apps None Other Base: 260 IT/corporate managers (multiple responses allowed) Survey Date: September 2002 Source: TheOpenEnterprise.com Desktop / Personal Productivity 28% 35% 23% 14% 35% 42%

16. Future Uses of Linux Question: What Apps will your company run on Open Source in the next 12 months? % of Respondents Using Email / Communication Servers Security Enterprise Apps None Other Base: 260 IT/corporate managers (multiple responses allowed) Survey Date: September 2002 Source: TheOpenEnterprise.com Desktop / Personal Productivity 39% 40% 21% 13% 42% 48%

17. Enterprise Concerns The List Of Enterprise Concerns “What are your biggest concerns in using Linux and open source software?” Lack of Support: Immaturity of Products: Lack of Applications: Unsecure: Lack of skills: None: Base: 50 $1 billion-plus companies (multiple responses accepted) Version Splintering/ Lack of standards: 16 10 8 18 32 46 Source: Forrester Research The Linux Tipping Point, March 2003 Ted Schadler

18. Emerging Trends in Adoption Not a Tidal Wave..... but a Tidal Effect Bottom-up deployments being replaced by Top- down initiatives Linux adoption creates heterogeneous environments Transition, Training, Support concerns dominate

19. Case studies

20. Case Study: Spain Extremadura, Andalucia in Spain – 80,000 machines being deployed now – Current target is education – 1 machine per 2 students – 320,000 machines in total deployment – Intend to use Ximian Desktop on Debian –http://www.gnome.org/press/releases/extremadura.html –www.linex.org

21. Case Study: Stadt München City of Munich – Municipal government – 14,183 Windows desktops, 15 departments – Eschewing MSFT for long-term strategic reasons – Phased multi-year deployment – Major challenge is application migration

22. Case Study: Largo  Deploy Ximian Evolution on Linux. Linux’s reduced hardware requirement and lower license costs achieve desired TCO savings.  Potential move to Groupwise in the future. Solution:  Powerful non-Windows application stack. Tight collaboration integration with Exchange 2000, including group scheduling. Future desire to eliminate Exchange 2000 Needs:  Microsoft’s punitive Software Assurance costs threatened to dramatically increase IT spending during a time when IT spending needed to be reduced by 50% Problem: Windows to Linux Desktop Migration

23. Novell's Linux Strategy

24. Novell Path to Linux Mar 13, 2000eDirectory for Linux Mar 27, 2000Messaging for Linux Sep 27, 2000Red Hat selects eDirectory deployment May 8, 2001Novell offer eDir free to developers Apr 19, 2001Cross-platform support for the desktop (NFAP) Apr 14, 2003Plans to offer NetWare services on Linux Apr 14, 2003GroupWise client for Linux May 13, 2003exteNd Application Server 5 for Linux Jun 24, 2003Nterprise Linux Services Jun 24, 2003IBM, Dell, HP Agreement to offer NNLS Aug 4, 2003Novell Announces Acquisition of Ximian Aug 4, 2003SUSE Support Agreement Nov 4, 2003Novell Agreement to Acquire SUSE

25. Linux and Open Source Leadership Greatest number of dedicated engineers working on Linux-related and open source projects #1 Contributor and maintainer of GNOME #1 Contributor and maintainer of KDE #1 Contributor and maintainer of Mono #1 Contributor and maintainer of Evolution #2 Contributor to Mozilla and OpenOffice Key contributors to Linux kernel

26. What Novell is Doing We are taking the next step in our open, cross-platform computing strategy by extending our entire ecosystem to Linux.

27. Novell and Linux: Choice You choose 1. Software 2. OS 3. Hardware Linux The platform is a commodity. Customers want multi-source solutions.

28. Novell has assembled the pieces to deliver results Industrial-Strength Linux Distribution SUSE Full-service Linux Desktop Ximian Mission-critical services on Linux distributions Nterprise Linux Services Linux distribution and services management Ximian Red Carpet/ZENworks

29. SUSE – Horizontal and Vertical Scalability SUSE Linux OS i-SeriesX8664-bit p-Series z-Series ItaniumOpteron32-bit

30. Ximian Desktop 2 Overview Complete desktop solution Breakthrough usability Interoperable and compatible Tightly integrated Lower cost of ownership

31. Resource management with ZENworks and Red Carpet Enterprise security recovery uptime productivity security cost cost productivity time Maintaining Resource Integrity Managing Mobility Simplifying OS Migration Novell Resource Management IT SERVICES IT COSTS

32. The Novell Linux Product Stack SUSE and Other Linux Distributions

33. providing cost-effective network services and software management on Linux

34. Technology Platforms Supported Desktop Server Value Added Services Collaboration / email File services Print services Application development toolkit Identity Management Directory Services Resource Management – Distribution Fixes – Software Image Management Sales & Support Sales & Distribution Consulting Training Technical Support Attributes of a Full-Service Linux Partner

35. Technology Platforms Supported Desktop Server Value Added Services Collaboration / email File services Print services Application development toolkit Identity Management Directory Services Resource Management –Distribution Fixes –Software Image Management Sales & Support Sales & Distribution Consulting Training Technical Support Novell Capability Attributes of a Full-Service Linux Partner

36. Q & A