Red Hat Overview

Industry

  • Faster innovation cycles
  • Increased security

Positives

  • Unique open source business model
  • Low cost technology
  • Anchor: Red Hat Enterprise Linux
  • Growth lever is OpenStack adoption + storage / middleware (JBoss) + PaaS (OpenShift)
  • Positioned to be leader of OpenStack movement
  • Positioned to deliver OpenStack across AWS and Azure
  • Increasing deal sizes
  • High renewal and fast growing renewal rates

Risks

  • Susceptible to decreased IT spend (in poor economic environment)
  • Ability to de-throne Microsoft
  • Growth is driven by non-RHEL products
  • Move to public cloud could make AWS linux more appealing
  • Most customers are from indirect sales channels
  • New products being adopted slower than expected

Updates

  • Increased headcount this year