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

An open source Christmas with Kano

So this season, what every open sourc-erer wants might just be Kano, a computer kit that comes will all the functions needed to build it and learn to code afterwards. Read more

Particulate sensor developed using open source approach

A New York based start up company has used an open source approach, as well as funding from Kickstarter, to develop AirBeam – a handheld sensor which determines the concentration of particles in the air measuring 2.5µm or less. [...] The AirCasting app and website code is available on GitHub as open source, along with the AirBeam firmware and electronic schematics. The STL files for 3D printing the AirBeam and LiteBeam enclosures can be downloaded from www.shapeways.com. Read more

Brocade relying on open source and 'natural tension' for growth

In line with this prediction, Brocade has been working towards changing its business tactics from being known as a hardware enterprise storage provider to also becoming an additional player in the software-defined network market — one in which rival Cisco has also been dipping its toes. Read more

Hey, here's some face-tracking tech from Samsung you probably won't find creepy at all

Samsung says it'll release the source code to software that allows physically disabled people to move a mouse pointer with their eyes. Read more