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