Red Hat fights in open source corner
Red Hat, which sells subscriptions to an open source server operating system based on Linux, posted positive results for the financial quarter ending 31st August 2009, with software subscription revenue up 15 per cent year on year to $156.3m (£94.4m), and net income totalling $28.9m (£17.5m) compared with $21.1m (£12.8m) in the same period.
Werner Knoblich, vice president and general manager of the company's Europe, Middle East and Africa region, tells Computing about successful open source subscription models, ongoing battles with proprietary vendors for a level playing field, and opportunities for open source software in cloud computing.
Computing: How has Red Hat managed to make money out of open source software when other companies have failed?
Knoblich: I don't think there is any secret ingredient; Red Hat was created as an open source company and it has remained true to this model. It re-invented itself as a 100 per cent enterprise company in 2002 with the first version of Red Hat Enterprise Linux (RHEL) on a subscription model and it has not changed that [model] in seven years.
C: What's the advantage of a Red Hat open source subscription for the customer?
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