Friday, 21 June 2019 10:42

Red Hat records another good quarter, could reach US$4b for year

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Red Hat records another good quarter, could reach US$4b for year Image by stuart_roger_miles from Pixabay

Open source company Red Hat has recorded an increase of 15% in its revenue year-on-year for the first quarter of the 2020 fiscal year which ended on 31 May.

The company said in a statement that it had pulled in US$934 million, which included application development-related and other emerging tech subscription revenue of US$235 million, up 24% year-on-year.

Last October, Red Hat was acquired by IBM for about US$34 billion, a deal that is expected to close in the second half of the year.

Revenue from training and services for the quarter came in at US$119 million, an increase of 17% year-on-year.

Red Hat reported profit of US$141 million for the three months, compared to US$113 million for the corresponding quarter a year ago.

"We continue to unlock the potential of developers and enterprises, enabling our customers to succeed in building next generation IT infrastructure and applications," said Jim Whitehurst, president and chief executive.

"Customer interest in Red Hat technologies is robust, evidenced by a record attendance of nearly 9000 attendees at Red Hat Summit, our marquee user event.

"At the event, we announced the general availability of Red Hat Enterprise Linux 8 and OpenShift 4, building on our track record of delivering innovation that creates business value for our customers. Customer excitement was evident at the event and further reflected in the quarter, where we added more than 90 new OpenShift customers."

Eric Shander, executive vice-president and chief financial officer, said: "Our large deal momentum remained strong, as we doubled the number of deals over US$5 million and saw 15% growth in the number of deals over US$1 million from the year-ago quarter.

"Many of these deals contained emerging technologies, including an OpenStack deal for over $5 million and our largest ever storage and hyper-converged deal for over $15 million. The breadth of our success demonstrates that customers can realise significant value across our product portfolio."

Red Hat has been in business since 1993 and has expanded its offerings from Linux to a number of open source middleware products.

In its early days, the company enjoyed the advantage of being used extensively by the US military as the Department of Defence has certified its Red Hat Enterprise Linux product for use.

This provided the company with a large, stable customer during the early days of its expansion and 10 years ago the US Army had the largest installed base of Red Hat Linux.

The NSA uses Red Hat Linux for the most part to run its XKEYSCORE program – an application that The Intercept, the website run by journalist Glenn Greenwald, describes as NSA's Google for private communications.

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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