Red Hat continues steady march toward $5 billion revenue goal

Cloud-based and containers business provides Red Hat with a stable and swift 40 percent growth.

The last time I spoke to Red Hat CEO Jim Whitehurst, in June 2016, writes Ron Miller, he had set a pretty audacious goal for his company to achieve $5 billion in revenue. At the time, that seemed a bit far-fetched. After all, his company had just become the first open-source company to surpass $2 billion in revenue.

But the company has continued to thrive and is on track to pass $3 billion in revenue some time in the next couple of quarters. Red Hat is best known for creating a version of Linux designed specifically for the enterprise, but it has begun adapting to the changing world out there with cloud and containers — and as its RHEL (Red Hat Enterprise Linux) customers start to change the way they work (ever so slowly), they are continuing to use Red Hat for these new technologies.

The cloud and containers are built on Linux, and if there is one thing Red Hat knows, it’s Linux. Whitehurst points out the legacy RHEL business is still growing at a healthy 14 percent, but it’s the newer cloud and container business that’s growing like gangbusters at a robust 40 percent.

Source: Published by Ron Miller on techcrunch.com (13. October 2017)