What is Red Hat's Business Model?

Red Hat is the single-most trusted Linux provider to the enterprise.

Our mission is simple: To extend our position as the most trusted Linux and open source provider to the enterprise. We intend to grow the market for Linux through a complete range of enterprise Red Hat Linux software, a powerful Internet management platform, and associated support and services.

Through Red Hat, enterprise hardware and software vendors have a standard platform on which to certify their products. We assure the necessary scalability and security of open source software. We make mission-critical Linux deployments possible.

And together with our partners, we will bring the vast benefits of open source computing into an enterprise environment where cost-effective performance is absolutely at its most critical.

Open source software does not mean free as in without cost—but open source does mean that the software is free (as in freedom), meaning no one company can fully own and conceal it. Software lock-in is impossible.

But as a result, the open source model often builds better, more secure, more easily integrated software. And it does it at a vastly accelerated pace compared to proprietary models. Even more compelling, it allows customers to take advantage of the substantial cost savings of standards-based Intel hardware over proprietary Unix® hardware.

Linux is not nameless, faceless, and it's not charity. Nor is it solely a community effort. What you see today is a technology revolution driven ever forward by market demand.

The open source model is built not on the power to lock-in customers, but consistently serving them through extraordinary value, flexibility, and ease of integration and management. Will it be as financially lucrative as a software monopoly? No. Will customers more appreciate and realize its value, and therefore become better customers? Absolutely.

It's a fundamental change and it's working. We are profitable, have $328 million in the bank, and have close, productive partnerships with the top names in our industry, Dell, HP, IBM, Intel, Oracle. Our business is solid and self-sufficient.

Enterprises simply can't afford software that doesn't come with full assurance of reliability and performance, and a 24x7 support infrastructure they can trust. They require comprehensive technology integration. All the pieces need to fit.

Proprietary operating platforms, however, are often difficult to integrate and support--except perhaps directly through the software vendor. While this may be convenient, it can also be costly. Then the entire infrastructure will be subject to the vendor's upgrade schedules, licenses, standards, and rules--no matter how expensive or how bad the software is. Can any large organization afford this risk?

When enterprises build their infrastructure on Red Hat's open source platform, integration is easy. The code is open. There are no secrets. However, it takes the highest levels of expertise to get the most from open source software.

That's where Red Hat comes in. We deploy, integrate, update, manage, train, support. Just as we do for companies like Amazon.com, British Petroleum, Credit Suisse First Boston, DreamWorks, Reuters, Lehman Brothers, among many others. When companies look to Linux, they look to us. And they find that while it was the Red Hat Linux operating system that made Red Hat legendary, it's only the beginning.

  • Red Hat Enterprise Linux. The single standard for Linux in the enterprise, certified by top hardware and software vendors like IBM and Oracle. Sold by subscription, Red Hat Enterprise Linux products feature enhanced enterprise performance and an extended release cycle. It is the rock-solid foundation for the open source enterprise.

  • Content Management. Extending Red Hat's open source expertise, and our proficiency with the market-leading open source Apache web server, Red Hat offers a range of content management services.

  • Red Hat Network. The Internet mechanism for delivery of Red Hat's services. Provides constant updates and complete systems management. Red Hat Network subscriptions are included with the purchase of Red Hat Enterprise Linux.

  • Training. RHCE, Red Hat Certified Engineer, is the gold standard for IT certification--the single Linux certification enterprises trust most, as proven by recent studies from CertCities.com and Certification Magazine. Now individuals have another certification option: RHCT, or Red Hat Certified Technician. We offer training at more than 50 locations worldwide, and train at all skill levels.

  • Support. Global, 24x7, delivered in seven languages.

  • Consulting. We staff many of the world's top consultants in Linux and open source technology.

  • Custom engineering. We design full open source infrastructures from the foundation up.

Together, these services create a comprehensive solution that allows enterprises to take full advantage of Linux and open source software--including all of its cost and performance advantages.

Balance

Balance means building a successful company without sacrificing customer trust. And creating shareholder value without severing our ties to the open source community.

The sharing inherent in open source allows Red Hat to not only provide a level of flexibility that proprietary software never allows, but also lets us return innovation to the community of open source users and developers. The cycle of creation is continuous.

Extending this commitment, we also believe strongly that open source can provide cost-effective technology to educational institutions. Many schools, society's poorest in particular, can take advantage of open source software to allow students to participate in an Internet-connected world.

The open source model is built on the premise of allowing the best technology to win in an open, competitive environment. This is why we're vigilant in matters of intellectual property and consumer rights. Because we've found that an open environment is not only the best way to build technology, but the best way to spur innovation across our industry.

UNIX is a registered trademark of The Open Group in the U.S. and any other countries.