Enterprise Linux, Subscription Sales Power Strong Red Hat Quarter
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Red Hat&#39;s Enterprise Linux operating-system and software subscription sales soared over the past three months, leading the company to strong revenue growth and profits for its fiscal 2005 second quarter.
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(InfoWorld) - Red Hat has changed the pricing model for its SaaS-based system monitoring and added support for more software packages, the company said on Wednesday. The Red Hat Command Center service provides remote system monitoring for systems running operating systems including Solaris, Windows and, of course, Red Hat Enterprise Linux. VMware also is monitored. With the upgrade, Red Hat has changed to a price of $192 per server, annually, said Donald Fischer, Red Hat vice president of online services. Previously, pricing involved a complicated model based on usage after the fact and factoring in the number of services. "Now, it's just a basic annual subscription per server. We got a lot of feedback that that's just a simpler way to consume this kind of service," Fischer said. Also added to the service is basic system monitoring of all servers in a network when service is purchased for just a single server. Command Center will ping other servers just to make sure they are functioning. But additional capabilities, such as monitoring of FTP services and application servers, are restricted to the server monitored for the $192 price tag. Red Hat also has updated which software it can monitor, adding support for Red Hat Enterprise Linux 5, the JBoss 4 application server, the Oracle10g database and VMware ESX version 3. At IT outsourcer ITresources, the company is using Command Center as a network operations tool competitive to how it would use CA Unicenter, HP OpenView or Tivoli, said Chad Decatur, senior manager of IT infrastructure for ITresources. Command Center has been very affordable and reports for SLAs are easy to run, he said. "It doesn't seem to have a lot of latency," Decatur said. Also, it is easy to learn. "Somebody doesn't have to devote their career to learning the product," said Decatur.Â  Technology leveraged in Command Center was acquired from NOCpulse in 2002, Fischer said.
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Red Hat CEO Matthew Szulik, in a statement the company issued, said the assets have &quot;tremendous longterm strategic value for the open source industry&quot; and his company.
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Red Hat Wednesday made its Enterprise Linux OS available on demand by releasing it for the Amazon Elastic Compute Cloud (EC2) service that hosts business applications.
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Quarterly sales of servers running the Linux operating system topped $1 billionÂ for the first time during the third quarter of 2004, analyst company IDC reported Wednesday. With year-over-year revenue from Linux server sales up 42.6 percent, Linux accounted for more than 9 percent of the $11.5 billion in servers sold worldwide during the quarter, which ended Sept. 30, the research firm said.ADVERTISEMENTSolaris 10(TM) OS: Position your business ten moves ahead.Solaris 10 OS has arrived and provides even more reasons for the world's most demanding businesses to operate on this, the leading UNIX platform. Like the fact you can run Linux and Solaris applications side-by-side and run the same OS on SPARC(R), AMD Opteron(TM), and Intel processor-based systems. Discover more reasons and how Solaris 10 OS can move your business ahead today.
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FRANKFURT, Germany  - U.S.-based Red Hat Inc., the  world's top distributor of open-source Linux software, expects  its international business to increase to half its sales within  12 months, an executive said on Tuesday.
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Asian governments are pivotal to Red Hat&#39;s goal of earning 60 percent of its revenue from outside the U.S. by the end of 2009, said Matthew Szulik, the company&#39;s chairman, chief executive officer, and president, in a conference call on Thursday.Governments in the region are beginning to see open source as a boost for their economies and a way to increase technological innovation in the region, Szulik said. The governments of South Korea, Japan, Australia, and China have been &quot;positive spokespeople&quot; for the growing adoption of Linux and open source software in the region, he added.Most of the business for Red Hat in the region, as in the rest of the world, is in the transition from Unix and legacy systems to the Linux operating system. Customers are typically in the financial services, telecommunications, technology and the government sector, Szulik said.At the end of August, Red Hat&#39;s revenue for the first six months of its fiscal year was $246 million, up 34 percent from the previous year. About 85 percent of its revenue came from software subscriptions with the balance coming from services like consulting and training. The company does not break out revenue by regions.Red Hat also had $33 million in operating income for the six months period, up 48 percent from the same period in the previous year. The company has over $1.3 billion in cash on its balance sheet, said Charlie Peters, Red Hat&#39;s chief financial officer.Apart from continuing opportunities in the market for replacement of the Unix operating system with Linux, Red Hat is also seeing revenue coming in from middleware, Peters said. The company&#160;acquired JBoss, a vendor of open-source middleware, in June 2006.Red Hat plans to roll out new technologies in the coming months that will help customers build global virtualized computing infrastructure, Szulik said. The company introduced server, storage, and desktop virtualization as part of Red Hat Enterprise Linux 5 earlier this year.An increase in availability of third-party applications around Linux helped boost demand, as Linux has been expanding its share of servers&#160;based on Intel&#39;s x86 architecture and&#160;IBM&#39;s mainframe&#160;and server environments, Szulik said. In addition, there has been an increase of technically trained staff with Linux and open-source skills, he added.
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Red Hat Enterprise Linux 5 helped both revenue and profit, the company said.
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InfoWorld - At the annual LinuxWorld Conference &amp; Expo this week, top-tier vendors in the Linux space will roll out a raft of enterprise products, with a few vendors laying out road maps for pushing their open source strategies higher in the enterprise.
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Leading distributor of Linux open source solutions to the enterprise Red Hat, Inc has entered into a definitive asset purchase agreement with America Online, Inc to acquire certain assets of Netscape Security Solutions.
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Red Hat&#39;s new CEO plans to keep the company focused on its core Linux OS and middleware business while also improving the service it offers to customers, he said Thursday.&quot;It&#39;s a very exciting time for Red Hat, we have a very bright future in front of us. Our business model is strong and our growth remains very, very robust,&quot; said Jim Whitehurst, who was speaking in Tokyo during his third week in the job.Whitehurst came to Red Hat from Delta Air Lines&#160;where he served as chief operating officer for two years. During that time he gained experience of being a customer of major IT vendors and says he knows well what is expected of companies like Red Hat.&quot;From a user perspective an absolute focus on service is critical. Based on talking to customers so far, one observation I have is that we need to re-double our effort working with our various partners in service,&quot; he said.Because much of Red Hat&#39;s business is done through resellers and the channel, there can sometimes be disconnects in customer service. For example, Red Hat might end up telling a customer to contact the partner while the partner refers the customer back to Red Hat, he said.But is Whitehurst the right man to be talking about customer service? After all, he came to Red Hat from an industry that is the subject of frequent complaints from its customers.&quot;I think airlines only beat out cable TV operators in customer satisfaction surveys so I&#39;m certainly not going to defend the airline industry&#39;s record on customer service,&quot; he said. Experience at Delta taught him the need to pick a small number of things and do them well to improve overall satisfaction, he said.&quot;The Delta situation was the fastest major bankruptcy ever and during that situation our customer service numbers actually went up quite significantly. We did it by focusing on a couple of things. In the airline industry it&#39;s clean airplanes and on-time, those were the two things we focused on. I know those sound like two little things but they significantly impact the customer experience,&quot; said Whitehurst.For Red Hat he said he is still working on which areas will be the priorities that he focuses upon.&quot;I understand the importance from the customer&#39;s perspective of excellent customer service in IT,&quot; he said. &quot;As an industry, information technology is not known for excellence in serving our customers well and I have been adamant from day one that everything Red Hat does will be viewed through the eyes of the customer.&quot;
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The combined worldwide market for desktops, servers and packaged software running on Linux is forecast to grow at a 2003-2008 compound annual growth rate of 25.9 percent worldwide, reaching $35.7 billion by 2008.
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InfoWorld - Amid uncertainty about the greater economy, technology companies are looking good to investors.&#160;Strong earnings from Red Hat this week&#160;and Oracle last week, continued excitement over mergers and acquisitions, and solid forecasts for global component sales have been pushing shares of tech vendors up.
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DECEMBER 23, 2004  - Red Hat Inc. reported a 55% increase in third-quarter revenue on the strength of an 80% increase in software subscription revenue.
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(InfoWorld) - The introduction of a new version of its Linux distribution and new JBoss software helped Red Hat increase profit to $16.2 million, or $0.08 a share, on revenue of $118.9 million in its fiscal first quarter ended May 31, the company reported Wednesday. The report compares favorably to the year-ago quarter, in which Red Hat earned a profit of $13.75 million, or $0.07 a diluted share on revenue of $84 million. The company released Red Hat Enterprise Linux 5 in March and also introduced new developer class and enterprise class editions of JBoss Java-based software. Red Hat acquired JBoss in 2006. Red Hat also rolled out its SOA strategy in the quarter. Red Hat said that after excluding one-time charges and adjusting for stock compensation and tax expense, its adjusted net income for the quarter was $33.7 million, or $0.16 per diluted share Red Hat distributes open-source Linux software and charges companies a subscription to provide updates and other technical support. The company said $103 million of the total $118.9 million in quarterly revenue was subscription revenue. Charlie Peters, CFO of Red Hat, said the company forecasts revenue of between $124 million and $126 million in the current quarter, which ends Aug. 31. The company expects to earn $0.17 per share in the quarter, excluding one-time expenses and other charges, he said. This story was updated on June 27, 2007
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Quarterly sales of servers running Linux have topped US$1 billion for the first time. According to analyst company IDC, sales during the third quarter of 2004 hit $1.06
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Red HatÂ plans to launch a major upgrade to its flagship Red Hat Enterprise Linux operating system that will mark the first time the software has fully supported the Linux 2.6 kernel. The launch currently is scheduled to occur at an event that will coincide with the Linuxworld Conference & Expo in Boston next month, a spokeswoman for the company has confirmed.