LetterGen Achieves Substantial Performance Gains and Cost Savings with Red Hat Enterprise Virtualization

Raleigh

NC, Global, May 23, 2012

Migration from VMware to Red Hat Enterprise Virtualization and Red Hat Enterprise Linux puts company on path toward significant cost savings

Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions, today announced that LetterGen NV, a Belgian supplier of document management software, has migrated its virtualized systems from VMware to Red Hat Enterprise Virtualization. LetterGen expects migrating to Red Hat Enterprise Virtualization and Red Hat Enterprise Linux to help it reduce costs by over 60 percent, in addition to optimizing systems maintenance and improving services for its customers throughout Europe.

A fast-growing technology company, BTR Services, LetterGen's holding company, was recently ranked 292nd in Deloitte's Technology Fast500 EMEA list. Keen to maintain high growth rates along with its competitiveness, LetterGen required a scalable, stable IT infrastructure that could grow with the company without becoming too costly. The company had previously virtualized a large amount of its IT infrastructure using VMware, but experienced scalability issues and found the solutions hard to manage. Following a period of internal testing, LetterGen was convinced that Red Hat Enterprise Virtualization could satisfy its system requirements to achieve success.

“We made the strategic decision to migrate to Red Hat for a variety of reasons, but in particular, we were impressed by Red Hat’s subscription model that has no high upfront license fees and costs the same each year. We expect the virtualization guest rights included in the Red Hat Enterprise Linux subscription alone to lead to reduced IT-related costs by over 60 percent,” said Luc Vandergoten, CEO at LetterGen. “By using Red Hat Enterprise Virtualization’s Live Migration feature, the migration to our new infrastructure was swift and stress-free. Our IT team is now able to make efficient use of the virtualization cluster by moving virtual machines from one host to another without affecting performance. In addition, the maintenance management functions enable hosts to be upgraded and maintained while the virtual machines are running. The result has been much less downtime, and much higher availability.”

LetterGen used BTR Services, a Red Hat Advanced Business Partner specializing in Red Hat Enterprise Virtualization, to handle the migration. BTR Services was able to automatically convert machines from its existing format to the Red Hat Enterprise Virtualization format using Red Hat Enterprise Virtualization V2V tools. BTR Services virtualized 95 percent of LetterGen’s infrastructure, including its web servers, file servers based on Red Hat Enterprise Linux, Active Directory, database servers, JBoss Community projects, as well as the entire development and testing environment. A combination of Red Hat Enterprise Linux 5 and 6 is used on the virtual servers.

“The existing virtualized IT environment at LetterGen was simply not capable of meeting the company’s long-term scalability requirements,” said Vincent Van der Kussen, system engineer, Open Systems at BTR Services. “After an initial demonstration and various internal tests, we were able to demonstrate that all of the functions LetterGen required were available in one package by using Red Hat Enterprise Virtualization. It also helped that Red Hat Enterprise Virtualization offered this high level of functionality at a lower price than competitive solutions.”

To read the full LetterGen case study, visit http://www.redhat.com/resourcelibrary/case-studies/.

For more information about Red Hat Enterprise Virtualization, see www.redhat.com/rhev.

To download a free, 60-day evaluation of Red Hat Enterprise Virtualization, visit www.redhat.com/rhev3.

For more information about Red Hat, visit www.redhat.com. For more news, more often, visit www.press.redhat.com.

About LetterGen NV
LetterGen NV of Boom, Belgium was founded in October 2009 as a subsidiary of BTR Services, an IT service provider that was established in 2005. LetterGen Document Management Software is an ultramodern document generation system based on open standards. LetterGen offers interactive, direct, and high-volume batch generation of correspondence and forms, interactive documents that can be placed in a workflow for approval, collaboration, digital signatures, and delivery via e-mail, fax, printed matter, or web portals. The documents can be generated as an OpenDocument text file, Microsoft Word document, Portable Document Format, Tagged Image File Format, or a JPEG Compliant Image. The Deloitte Technology Fast 500 EMEA, a list of the top 500 fastest growing technology companies, ranked BTR Services, LetterGen's holding company, at place 292 in 2011.

About Red Hat, Inc.
Red Hat, the world's leading provider of open source solutions and an S&P 500 company, is headquartered in Raleigh, NC with more than 70 offices spanning the globe. Red Hat provides high-quality, affordable technology with its operating system platform, Red Hat Enterprise Linux, together with cloud, virtualization, management, storage and service-oriented architecture (SOA) solutions, including Red Hat Enterprise Virtualization and JBoss Enterprise Middleware. Red Hat also offers support, training and consulting services to its customers worldwide. Learn more: http://www.redhat.com.

Forward-Looking Statements
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; uncertainty and adverse results in litigation and related settlements; the integration of acquisitions and the ability to market successfully acquired technologies and products; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company's growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Annual Report on Form 10-K (copies of which may be accessed through the Securities and Exchange Commission's website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

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