Language Selection

English French German Italian Portuguese Spanish

How does Red Hat make money?

Filed under
Linux
Interviews

Editor’s note: Jim Whitehurst, chief executive officer of Raleigh-based Red Hat (NYSE: RHT), is one of the speakers at the eighth annual Fuqua School of Business and Coach K Leadership Conference this week in Durham. Whitehurst recently talked with Kate Catlin of MMI Public Relations about Red Hat, Red Hat’s Linux-based business, the challenges in changing from his former role as an executive at Delta Airlines to Red hat, and the leadership required to be successful in business today given the ongoing economic crisis.

This is the second of a two-part interview with the focus on Red Hat and its business model:

How does one make money selling free software?

Red Hat makes money, I often say, specifically by selling free software. But actually, Red Hat makes money by recognizing that some of the very things that make open source a very powerful development model make it a very difficult thing to implement in the enterprise. And what I mean by that is the power of open source is that thousands, or tens of thousands of people, are contributing to various components of the code. And that’s great as a development model because it leads to very fast iteration and with very, very modular components; which makes it a lean but very secure operating system.

The problem is for an enterprise, you don’t want that rapid level of change. So, for instance, Linux changes everyday. Right?

Rest Here




More in Tux Machines

Locally Integrated Menus Can Be Set to Always Show in Ubuntu 15.04

The development cycle for Ubuntu 15.04 still have a couple of months left and the guys and gals from Canonical are making good progress. An important improvement regarding the use of menus in the title bar has been implemented and it will be part of the stable edition that will launch in April. Read more

Build Your Own Open-Source SmartWatch

If you’re not up for spending your money on one of the less advanced smart watch models, you may want to check out maker Jonathan Cook’s DIY Open-Source SmartWatch, part of which is 3D printed, something the prognosticators of future tech surely didn’t forecast. Cook shared instructions for making his SmartWatch on the webzine “Make:” and also on his own website, DoNothingBox. You can download the STL files on the DNB site, too. For around $125 or less you can make your own smart phone and you can customize it, something that you wouldn’t be able to do with a store-bought version. Read more

LibreOffice 4.4 Is Coming Soon With New Features

The release plan puts the LibreOffice 4.4.0 as being just days away, but what features are in store for this open-source office suite? Let's take a brief look. Read more

Completely open source, high-end laptop gets closer to reality

If you've wanted a laptop where all the software is free and open source (FOSS), you've usually had to settle for mediocre hardware. Even FOSS champion Richard Stallman is making do with a ThinkPad that's several years old. At last, though, it looks like you won't have to compromise your ideology for the sake of keeping up with the Joneses. Purism has successfully crowdfunded the Librem 15, a portable PC that combines modern parts (such as a 3.4GHz Core i7 and an optional 4K display) with software that's accessible from head to toe. The operating system (a variant of Trisquel GNU/Linux), hardware drivers and included apps are all free and open -- Purism is even trying to loosen up the BIOS and firmware. Read more