Red Hat is the Right Choice for Tomorrow's Business, TODAYPang Vern Chia - vpang@redhat.comSolutions Architect, Red Hat ASEAN

Adoption of Open Source Software (OSS) in ASEAN

• Countries with a GDP of less than US$10,000 and with at least 5% of the

population already online are among the highest adopters of OSS

– Indonesia, Malaysia, Philippines, Thailand & Vietnam

– Aggressively pursuing greater technology independence through

low-cost “leapfrog” technologies

• Several ASEAN countries have adopted government policies favoring

Open Source Software

– Increased security and sovereignty through independence and

software codes transparency

Source: Open Source Software Adoption in ASEAN Member Countries (40th Annual Anual Hawaii International Conference

on Systems Science HICSS 07) IEEE 2007

Red Hat

Enterprise Linux

MPIO

Global File SystemCluster Suite

VirtualizationHigh Availability

JBoss ApplicationPlatform

JBoss SOA

Platform

JBoss Portal, jBPM,Data Federation

Open Source: The Future is Wide OpenBy 2011, Gartner predicts that at least 80% of all commercial software solutions will

be based on open source

Gartner surveys show 49.7% of open source used for mission-critical applications

IGNORING OPEN SOURCE IS NO LONGER AN OPTION

“Open source is the biggest change in corporate IT since distributed computing. It is not

a niche, not a fad. Competing against open source i s like tilting at windmills."

- Gartner Open Source Summit, September 2007

IGNORING OPEN SOURCE IS NO LONGER AN OPTION

“Open source is the biggest change in corporate IT since distributed computing. It is not

a niche, not a fad. Competing against open source i s like tilting at windmills."

- Gartner Open Source Summit, September 2007

CIO Survey: #1 Again

Gartner Magic Quadrant: Application Infrastructure

New market for application infrastructure reflects convergence and overlap products that support application development (AD), deployment and execution. Includes the majority of runtime middleware, as well as AD and management tools that support the new generation of application styles based on service-oriented architecture (SOA), event-driven architecture and business process management (BPM) technology.Source: Gartner (May 2007)�

Gartner Magic Quadrant: Application Infrastructure

The Evolution of Innovation and Collaboration

Mainframe

Hardware

Mainframe

Operating

Systems

Centralized

Computing

Applications

UNIX

Servers

UNIX

Operating

Systems

Client Server

Applications

x86

Servers

WINDOWS

Operating

Systems

Java, .Net

SOA

Middleware

Mainframe

Servers

Mainframe

Operating

Systems

Centralized

Computing

Applications

x86UNIX

Mainframe

Servers

LINUX

Operating

Systems

Open Source

Java SOA

Middleware

Web

Applications

Web

Applications

• Dilemma: A problem involving a difficult choice; a predicament

• For the CIO: How to drive growth on a budget

• Action: Innovate.

• Solution: An architecture based on powerful open source software

Open source continues to improve IT capabilities while providing

increased value and extending limited IT budgets

Solving the CIO's DilemmaModernize Legacy

Application Infrastructure

Red Hat Helps Close the GAP

• Reduce CAPEX

• Reduce OPEX

• Open Standard

Leading edge innovation, and enterprise-class stability from the Open Source Leader

Enterprise-class Stability & PerformanceCommunity and Enterprise

Technology Strategy and Value

Customer Value Through Open Source Business Model

Companies License Cost

X X X X

SaaS Vendors X X X

X X X

1st Year

Support/Subscription

2nd Year

Support/Subscription

3rd Year

Support/Subscription

Any Proprietary

Software Vendor

Customer deriving Value from Utility Pricing (Red H at Subscription) �

Red Hat Vision: The Big Picture

Red Hat Enterprise Linux Includes:

Maximizing Utilization of 3-tied Web Apps

Database Availability• Maintaining Database HA

is an EXPENSIVE solution

• Red Hat enables HA for

databases with Integrated

Virtualization

• Supports:

– Oracle

– DB2

– MySQL

– PostgreSQL

Savings of USD200+K including hardware

Business Continuity for Windows Servers

• High Availability for

Windows Applications

on Windows Guest

Operating environments

Application For Masses running on Open Source Platform

• Business Need:– Integrate two front-end banking systems, due to merger of two

banks

– Achieve maximum reliability of ATM network at lowest cost to manage

– Minimize the number of updates for systems to run for ~15 years

– Reduce cost

– Gain flexibility and control with Open Standards

Bank of Tokyo consolidates with RHEL on z

� Solution

� RHEL on System Z – 274 IFL's, one of largest server consolidations in the world

� System Z because it is the most reliable server to run Linux

� RHEL to achieve Open Standards and decrease costs

� RHEL because bank's critical applications were certified on RHEL

� RHEL with its 7 years of Support vs. Window's 5 years of support – to minimize the number of upgrades during 15 year lifecycle of the application

Enterprise Application in Mission Critical Business (Middleware) �

Delivery

PlatformsMobile Local Search

Online Local Search

• What components are in an enterprise application:

– Presentation Layer

– Business Logic

– Data Access Layer

– Systems Services

• How do you achieve these capabilities ?

– JBoss Portal

– JBoss Rules / jBPM

– MySQL/PostgreSQL/Metamatrix

– RHEL OS

Technology behind the Business

Technology behind the Business

OPEN SOURCE

- All Servers run on RHEL- Clustering Services using GFS & Cluster Suite

- Apps Platform using JBoss Apps Platform

- Business Rules with JBoss Rules- Database on PostgreSQL & MySQL

• A case in Malaysia

– Listed Malaysian Manufacturing firm

– Problem

– Lots of documents and images (some are more than 10MB)�– Uphill task of cataloging & searching

– Manual work to send and notify personnel on latest document through email which are

prone to errors

• How do you solve – implementated by Technodex with Alfresco

– Centralized document management space where documents/images are stored in the systems

– Uploaded document with system generated version control

– Alert for new document send to defined users with workflow for approving authorities

• What is achieved

– Improve efficiency of searching, cataloging, fast retrieval

– Error minimize and lesser human intervention

Actual Implementation by partners

• A case in Malaysia

– Listed Malaysian Manufacturing firm

– Problem

– Lots of documents and images (some are more than 10MB)�– Uphill task of cataloging & searching

– Manual work to send and notify personnel on latest document through email which are

prone to errors

• How do you solve – implementated by Technodex with Alfresco

– Centralized document management space where documents/images are stored in the systems

– Uploaded document with system generated version control

– Alert for new document send to defined users with workflow for approving authorities

• What is achieved

– Improve efficiency of searching, cataloging, fast retrieval

– Error minimize and lesser human intervention

Actual Implementation by partners

Used by KLM, MIT US, American Stock Exchange,

The European Commission, Facebook!

Technology Framework

BPM modeling tool is used to define business process for opening a new deposit account.

Collect account information from customer

Validate customer exist in system

Perform blacklist check

Route to supervisor for approval

When approved, open new account and fund account

Print paperwork

In the business transaction layer (composite), a service exists for open_new_dda_account.

In the detail services layer, 3 messaging services exist.Blacklist checkOpen_new_ST_accountFunds_transferCustomer inquiry

Fidelity Information Services - Xpress Enterprise Se rvices

Fidelity Xpress Enterprise Services

(XES) �

Red Hat / JBoss ESB

Red Hat / JBoss jBPM and/or JRules

XES can be extended to cover more transactions

Fidelity Information Services - Xpress Enterprise Se rvices

Result - Cost Savings of 66% When Using Open Source Vs Proprietary

Middleware

COSTING ON OPEN SOURCE FOR YOUR BUSINESS

$$$$

Generic Projection:

“We saved our company well over $1 million by choosing JBoss instead of BEA WebLogic”

- Jamie Cash, SVP, World Travel Holdings

Real World Proof:

Significantly Lower TCO

Assumptions:� BEA WebLogic Premium license price = $17,000/CPU; includes 1 year support� 30% discount on license price� Annual support & maintenance = 21% of list license price� 24x7/ 1 hour SLA

JBoss Enterprise Application Platform vs. BEA WebLogic Premium

Small Organization: Internal Use

Proprietary Cost (USD) LAMP Cost (USD)

Servers $8,000.00 Servers $8,000.00

Proprietary Servers $2,800.00 Linux $450.00

Exchange $4,700.00 Mail $0.00

Intranet $0.00 Intranet $0.00

Office $25,000.00 Office $0.00

Other $2,600.00 Other $0.00

$57,000.00 Management $57,000.00

$100,100.00 $65,450.00

Manangement

Source: Open Source Software Implementation and Management by Paul Kavanagh

Large Company IT Costs

Functions Proprietary Cost (USD) Open Source Cost (US D)

Database Servers $750,000.00 $750,000.00

Other Servers $180,000.00 $180,000.00

Database Licenses $1,650,000.00 $15,000.00

File/Print Licenses $630,000.00 $450.00

Mail Licenses $1,055,000.00 $0.00

Office Licenses $3,750,000.00 $0.00

Development $285,000.00 $285,000.00

Sysadmin $1,200,000.00 $1,200,000.00

Total $9,500,000.00 $2,430,450.00

Source: Open Source Software by Paul Kavanagh

Who Is Red Hat?

Company Information

Headquarters in Raleigh, NC

Founded in 1993

Over 1800 employees, in 51 worldwide offices in 22 countries

Cash and investments: $1.1 billion

FY07 revenues: $400.6 million (an increase of 44% o ver FY06) �

IPO, 1999 (NYSE: RHT) �

Quarterly Revenue

In millions

2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

$11.4 $12.9 $12.1 $12.5 $14.7 $17.0 $15.2 $15.8 $18.1 $19.6

$54.3$60.2 $66.7 $71.5

$84.9$88.9 $95.9

$103.1$109.2

$115.7

$65.7$73.1

$78.7$84.0

$99.7$105.8

$111.1$118.9

$127.3$135.4Total Revenue

Subscription RevenueServices Revenue

Red Hat Global Support and Consulting• 24x7 production support

– Support centers on four continents

– Staffed entirely by Red Hat Certified Engineers

• Technical Account Management

• Developer support services

• Global Professional Services

– Unix-to-Linux migration

– Areas of expertise include

• Linux migration/porting, integration,

performance tuning, and security

• Clustering

FIVE IMMEDIATE OPEN SOURCE OPPORTUNITIES FOR YOUR BUSINESS

Picking the low hanging fruit from open source – those that are lowest in risk, highest in potential payoff

#1: Unleash the open source scientist in you

� What:

� Open an open source lab within your IT department

� Why:

� To communicate, discover, test and justify OS initiatives

� Most tangible way of seeding OS ideas within the organization

� Provide a single rallying point for all closet OS users

#1: Unleash the open source scientist in you

� How:

� Start small – a 2nd hand server and a few desktops

� Make it part of existing lab, if one exists

� Review existing OS work, identify evangelists/early adopters

� Train developers in OS languages

#2: Get your file and print servers to Samba� What:

� Use Samba to run your file and print servers

� Why:

� Will work with minimal effort

� Requires no change to existing Windows-based clients

� Zero client access licenses (CALs) to pay for – unlike Windows

� Postpone new licensing requirements, and use of Active Directory

Samba is an open Samba is an open source software source software that provides that provides seamless file and seamless file and print services to print services to SMB/CIFS clients, SMB/CIFS clients, allows for allows for interoperability interoperability between between Linux/Unix Linux/Unix servers and servers and WindowsWindows --based based clients.clients.

#2: Get your file and print servers to Samba

� How:

� A few options are possible:

� Continue to use existing servers, but running on Linux

� Consolidate via virtualization onto fewer, larger Linux servers

� A combination of above two options

� Don’t forget – train admins in Linux and Samba

#3: Release the OS genie in the LAMP� What:

� Build one or two simple apps using Linux and Apache, with MySQL and PHP – in short: LAMP

� Why:

� Allows you to build a pure OS system quickly

� Allows easy comparison against existing alternatives

� All LAMP components are reliable, proven, and inexpensive.

#3: Release the OS genie in the LAMP

� How:

� Likely opportunities for building the first LAMP application:

Building a new Web site or Web application

Adding new functionality to an existing site

Migrating an application using obsolete tools

Migrating Web development, such as ASP or JSP

Sites that are to be moved, either outsourced, or to be brought back inhouse

#4: One desktop per underserved individual� What:

� Make OSS available to users who don’t have or can’t afford a current licensed set of desktop software

� Why: � Client software costs can be

prohibitive, e.g. for remote offices or SMEs

� No licensing restrictions as use change occurs down the line

� Zero migration effort and costs

� A legitimate alternative to piracy

Open source Open source democratizedemocratize

s content, s content, unleashes unleashes innovation.innovation.

#4: One desktop per underserved individual

� How:

� Evaluate the underserved within your organization (e.g. franchises, remote branches, retail/hospitality workers, distribution/manufacturing workers, call centers)�

� Select applications that:

� Require no maintenance

� Can be managed remotely

� Easy to learn and use (e.g. Windows GUI equivalents)�

#5: Migrating for IT to businessalignment� What: � Migrate applications and databases to

open source

� Why: � Many apps and dbases have been

rendered obsolete by the Web

� Specific reasons to migrate appear:

� EoL or vendor ending support

� Too expensive to maintain/upgrade

� M&A or downsizing

� Unable to meet changing customer needs

#5: Migrating for IT to business alignment

� How:� Evaluate open source dbases like mySQL

� Replace small and old dbase apps with OS

� Migrate UNIX to Linux

� Evaluate and purchase app packages on Linux