Open Source Enterprise Solutions Must Help IBM in Cloud Fight Against Dell, Amazon, and Other Rivals
Founded in 1993 by Marc Ewing and Bob Young, Red Hat’s flagship product is the RedHat Enterprise Linux platform. It is an open source version of Linux, an alternative to Windows, with a focus on different companies and options for servers and desktops.
But sales of this system are not exactly your source of income. The company has its own storage, virtualization, and cloud computing solutions, which should help IBM to compete hard against Dell, Amazon and Alphabet. She also gains from training and support for customers who adopt her products, as well as offering advice. All of this is likely to add a welcome addition to IBM, as noted by Reuters – the company has seen its total revenue drop from $ 79.9 billion in 2016 to $ 79.14 billion in 2017 and needs to recover.
What is most curious about Red Hat, however, is its relationship with the community behind open source software. In 2017, the brand was the second largest contributor to changes in the Linux kernel, the base of the system. There were almost 6,000 changes made to the code, according to the Linux Kernel Development Report. Modifications corresponded to 7.2% of the total made by the community behind the system. Only Intel, a company considerably larger in headcount and revenue, surpassed that number.
Other than that, Red Hat still sponsors the Fedora project and is the biggest contributor to GNOME, a so-called “desktop environment” for Linux distributions. It is adopted by several variations of the system, such as Fedora itself, as well as Debian and Ubuntu. They all use it to get a closer look at popular operating systems like Windows or macOS. The company still has developers who are dedicated to LibreOffice, an open alternative to Microsoft’s Office.
This mix of open source contributions and solutions for enterprise customers has made Red Hat an open source company. It was even the first of its kind to hit $ 1 billion in revenue in 2012. And that number has almost tripled since then: In 2017, Red Hat ended the year with $ 2.9 billion. in the recipe.