Red Hat Sees Half of Sales Outside U.S. in a Year
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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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SAN FRANCISCO (CBS.MW) -- Red Hat reported a 2005 third-quarter profit Wednesday of $10.8 million as the Linux and open-source software developer&#39;s important subscription revenue nearly doubled over the year-ago period.
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Dell Inc. plans to sell computers with preinstalled Linux outside the U.S. as well as offer the Ubuntu Linux distribution to small business customers.
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( in paragraph nine group sales in North America has been  corrected to "slipped 0.5 percent to 530,630." In paragraph 10  the year has been corrected to 2009)
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Global semiconductor sales next year are expected to total $215.3 billion, up just 1.2% from this year, according to a forecast released this week by an industry group that tracks global chip sales.
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Microsoft invited to improve Red Hat turned in a healthy first quarter amid signs it's evolving into a multifaceted operation, thanks to growing sales of JBoss and use of channel partners.â¦
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VoIP will reach about 400,000 US households by the end of this year, a number that will grow to 12.1 million, or 10 percent of all homes in the US, by 2009, according to a forecast by New-York-based research firm JupiterResearch.
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InfoWorld - Red Hat has set up an engineering and support center in Pune, India, to provide support for its customers in India and in English-speaking markets worldwide. Red Hat already has three support centers in North America, the U.K., and Australia which provide support in their respective regions. The center in India will enable the company to offer around-the-clock support to customers worldwide, Red Hat said. The center will also have a test lab for hardware and software certification, and will house a team that will work on localization of Red Hat Enterprise Linux in Indian languages. Open source vendors like Red Hat and proprietary software vendors like Microsoft are vying for a number of federal and state e-government projects in India, as well as a number of large private-sector deals.
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TechWeb - HP may not be able to count on overseas sales to insulate it from a U.S. slowdown, according to analysts.
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Global sales of microchips are expected to rise about 10 percent to $273.8 billion this year after increasing 8.9 percent to $247.7 billion in 2006, an industry group said on Friday.
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International Data Corp. said growth in demand for Linux servers in Europe is expected to almost double by 2008. Microsoft is fighting back by cutting prices and through publicity campaigns
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(InfoWorld) - Worldwide mobile phone sales grew 21.5 percent year on year to 251 million units in the third quarter, with India and China driving growth, according to research from Gartner Inc. Gartner predicts that sales for the year will fall just shy of one billion phones. Sales should reach 986 million units by the end of the year, the research group said. Europe, one of the most mature mobile phone markets in the world, showed just 1.9 percent growth over the same quarter last year. Asia Pacific experienced the most dramatic gains, with sales of 80.8 million units during the third quarter, an increase of 54.7 percent over the same period last year. That significant growth happened despite a decline in sales of 4.7 percent in Japan compared to the third quarter in 2005. An increase in retail outlets and better distribution channels in emerging markets such as Indonesia, Philippines, and India significantly offset that loss though, driving growth in the region. Other regions of the world also reported solid growth. In Eastern Europe, the Middle East and Africa, sales grew 19 percent compared to last year, to 48 million phones. North American sales reached 40.8 million units, up 12 percent. Sales in Latin America grew 13.7 percent over the same time last year, to 29.8 million phones. Gartner reported that the smaller phone makers will increasingly struggle to compete against the giants. In the third quarter, Nokia, Motorola, and Samsung Electronics together accounted for 68 percent of phone sales. Among those three, competition is fierce. While Motorola increased its market share during the quarter, it lost its number one position in Latin America, to Nokia, and also lost its number two spot in Western Europe, to Samsung. Nokia has the largest market share worldwide, but failed to grow its market share in North America during the quarter. Nokia's worldwide market share was 35.1 percent, up from 32.5 percent in the same quarter last year. Motorola had 20.6 percent, compared to 18.7 percent during the third quarter in 2005. No. 3 vendor Samsung had 12.2 percent market share, just slightly down from 12.5 percent last year.
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(InfoWorld) - The next Linux distribution that IBM throws its weight behind is likely to be China's Red Flag Linux, suggesting that for businesses elsewhere in the world the Linux market will remain a two-horse race for the time being. Support from vendors like IBM and Oracle makes a big difference for the adoption of a Linux distribution. It gives big businesses the confidence that the software will be around and supported for several years to come. IBM wants to give its customers as much choice with Linux as it can, but the cost of porting and testing applications for more than the two leading distributions -- from Red Hat and NovellÂ -- makes it impractical to widely support a third option, said Adam Jollans, IBM's worldwide marketing and strategy manager for open source. The next distribution that IBM supports widely is likely to be one for the Chinese market, where the leading contender right now is Red Flag Linux, from Red Flag Software, Jollans said. "We're watching China very closely to see what happens there," he said. IBM has around 300 software products. Supporting both Red Hat and Suse Linux effectively doubles the number for which it has to do testing. Adding support for its three main hardware platforms -- x86, and IBM's Power and zSeries -- means IBM has to test 1,800 software products. Adding broad support for a third Linux OS, such as Debian, would take that number to 2,700. "We're not ready yet to go to another multiple," Jollans said, during a discussion with reporters in Paris on Thursday. The company will support other distributions today, but typically only for large customers or large installations. Jollans also addressed a question about why IBM did not release its own Linux distribution several years ago. "We thought that if IBM was in the market as an 800-pound gorilla, it would have a negative effect on the Linux market. We won't do something that sets us against the community," he said.
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International markets account for more than half of the conglomerate?s sales.
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(InfoWorld) - Red Hat Inc.'s woes this week raise the issue of whether IT investors are turning sour on open source. A somewhat disappointing forecast for the next quarter has investors fleeing, just as they have from the company's open-source rival, Novell Inc. A close analysis of the situation, however, may give savvy investors -- and open-source advocates -- courage. Red Hat's problems are probably more short-lived than Novell's. Red Hat investors are rattled: Company shares (RHAT) have lost almost US$5 in value over the last week, closing Thursday at $20.59, down $0.38 for the day. On Tuesday, Red Hat reported solid second-quarter earnings per share of $0.11, on revenue of $99.7 million. This beat expectations of analysts polled by Thomson First Call, of EPS of $0.10 on sales of $97.5 million. The problem was the company's forecast for next quarter: revenue of $103.5 million to $105.0 million, compared with the consensus estimate of $106 million. Even before these numbers came out, analysts were questioning the company's ability to execute a smooth merger with Jboss. Up until recently, investors bought into Red Hat's strategy to move up the software stack. The Jboss acquisition gives it an application server. But disappointing cash flow suggest problems with executing this strategy, and even perhaps some push-back from customers. Four different brokerages in the past month have downgraded their advice on Red Hat stock, with Soleil Securities Group Inc. recommending a "sell." But not all analysts are dour. Banc of America and UBS analysts, for example, have issued reports saying that Red Hat's problems are probably temporary, and that the company's strategy could still pay off with increased sales in the next few quarters. Novell could face more long-term problems. The company has had trouble articulating a coherent strategy. And even though Novell sold its stake in Celerant Consulting to focus on core open-source software, stand-alone Linux sales for the company hover around just $10 million. But it's hard to analyze Novell's business using up-to-date figures, since the company postponed its quarterly report earlier this month, as it completes a voluntary internal review around the granting of stock options to employees. Novell may have to restate earnings. The delay in its earnings report caused the Nasdaq to issue a delisting notice. So far, Novell has been able to stay listed, by protesting the notice and requesting a review process. The next few months should clarify issues around the two companies. Novell needs to get its internal review done, come out with earnings statements that analysts can rely on, and of course eventually show growth in new-software licenses. Red Hat has fewer hurdles to jump. An uptick in cash flow should offer assurances that its strategy to offer a broader portfolio of tools and server software is on track. REFERENCES: Novell faces delisting from Nasdaq, Sep. 21, 2006ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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SAN FRANCISCO (CBS.MW) -- Global semiconductor sales are expected to be flat in 2005, below previous forecasts, and growth won&#39;t reach double digits again until 2007, a trade group said late Wednesday.
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Indiaâs business providing software and services to companies outside its borders will grow a healthy 26 to 29 percent this year, the country's main trade association for that sector said Monday.