There was a video explaining how to pronounce SUSE several years ago (both funny and a little worrying that such a video was necessary)[1]. It is pronounced strangely since it was a German name and so you have to put on your best German impression to get the "s" sound right.
All jokes aside, I think most folks would agree that SUSE's marketing really needs to be reworked very significantly.
[1]: https://www.youtube.com/watch?v=N4lFHP-UxTk