Brandon Butler sums up the “old” (Linux) vs “new” (middleware and cloud) revenue stream for Red Hat
The company gets about 80% of its $1.3 billion in revenues from a category that’s headlined by RHEL, and those subscriptions aren’t likely going away any time soon, says Joel Fishbein, who tracks Red Hat’s stock closely as an analyst at BMO Capital Markets.
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The enterprise transition from Unix to Linux is fairly mature, with revenue from the RHEL-focused main part of the business growing 13% last year, Fishbein says. The company’s other, newer products grew at a much faster 38% growth rate, but they’re a much smaller portion of the business.
Indeed, CFO Charlie Peters went over those and other financial numbers indepth yesterday during the Red Hat Summit analyst day.
I have an overview report in the hopper that’ll likely be up next week, but here’s a few highlights in this vein:
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The OpenStack market is very new, at least as Red Hat is seeing it. As Butler’s piece notes, sales people get comp’ed not on deal size, but transitioning to production.
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Red Hat said it had “several dozens” of PoCs, with a handful of named customers running on production.
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The company had just closed it’s first $1m+ OpenStack deal.
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Even more early is the company’s PaaS offering, OpenShift in those deals, as CEO Jim Whitehurst said, “you’re literally sitting down and crafting the value proposition [and, thus, pricing] with the customer.”
I’ll, of course, post the 451 report once it’s up.