Red Hat

Even as the recession continues to cool CIO appetites for software purchases, Linux is bucking the trend, according to a new IDC report.

IDC is projecting Linux revenue to expand at a compound annual growth rate of 16.9 percent from 2008 to 2013, topping $1.2 billion in 2013.

As IDC notes, this growth will comprise just 4 percent of total software market revenue by 2013, up from 2.2 percent in 2008. However, for the second time, IDC has also examined nonpaid deployments of Linux, revealing some troubling data.

I've always assumed Red Hat's primary Linux … Read more

Ten years ago today, on August 11, 1999, Red Hat saw its shares triple in an initial public offering that ushered in a new era of commercial open-source prosperity.

Iain Gray, then a Sun employee and now Red Hat's vice president of Global Support, writes nostalgically: "I remember sitting in the Sun office in UK watching the stock skyrocket, thinking the world had gone mad."

Indeed it had. Soon Red Hat's stock was to plummet to earth but not before the company learned a valuable lesson: there must be more than hype to make open source … Read more

I've been writing a lot lately about SpringSource, largely because it has demonstrated a big vision (nothing less than the redefinition of the application server and an end-to-end application story), and so I wasn't terribly surprised today to see VMware buy SpringSource for $420 million. On roughly $20 million in sales, much of that services, it's a rich valuation, but one that is absolutely deserved given SpringSource's potential.

In fact, it's almost certain that SpringSource sold too early, at least as measured the size of potential exits it could have had given a bit more … Read more

Red Hat has announced its 2009 Innovation Awards, with some impressive finalists making the list. From Whole Foods to Harvard Business School Publishing, major organizations are doing impressive things with Red Hat technology. Interestingly, however, the real "innovation" revealed by these awards is just how much more money Red Hat makes in its JBoss deals than in its Red Hat Enterprise Linux (RHEL) deals.

I reported earlier this year that Red Hat's JBoss business is growing at twice the rate of its RHEL business. This isn't surprising: JBoss is still relatively small change compared to RHEL, … Read more

Given the momentum behind open source, and how it has grown through the economic downturn, it's not surprising that more and more vendors are getting involved to commercialize open-source projects. What is perhaps surprising, however, is how early in the open-source project lifecycle that commercialization is emerging, as Gartner indicates in a December 2008 report ("Predicts 2009: The Evolving Open-Source Software Model").

Gartner suggests that by 2012, "50% of direct commercial revenue attributed to open-source products or services will come from projects under a single vendor's patronage." What this means, however, is open to … Read more

For years, Microsoft had it easy. The two busiest groups within the software behemoth were the accountants, adding up all the billions in profits, and the CD/DVD burning team, which simply had to burn more copies of Windows and Office to keep up with demand.

Today, life is a little less rosy for Microsoft, as it calls out in its recent 10-K filing with the Securities and Exchange Commission. As TechFlash highlights, Google Android is now called out by Microsoft as a competitor, as are Apple, Opera, and Google in browsers, whereas only Mozilla was deemed worthy of Microsoft'… Read more

Whenever Microsoft starts to look like a company that is ready to play fair with open source, along comes its CEO, Steve Ballmer, to ruin all the goodwill the rest of the company has created.

Linux. It's all about Linux. We've been competing with Linux for a number of years. I want to describe our value proposition. We are a high-volume player. We do not, like Apple, believe in low volume, very high prices. Apple's a great company, … Read more

Some argue that open-source software can't innovate. In fact, one of the industry's former executives, Peter Yared, recently argued that "the only successful open-source companies sell commodities."

Yared clearly hasn't heard of SpringSource, an open-source application platform provider that is redefining the J2EE application server and, quite possibly, the future of open source.

Yared isn't alone in his beliefs. A friend recently wrote me to suggest that open source is at its best when disrupting big, profitable markets:

Commercial open source is a (commodity) replacement market. When it is not (i.e., people are … Read more

Matthew Szulik, Red Hat's former CEO and current chairman, has been in semi-retirement for the past two years, but you'd never know it from listening to his interview with the BBC's Peter Day. Szulik, ever the revolutionary, talks up open source's opportunity to disrupt conventional software and promote social reform.

As he does so, however, he inadvertently describes Red Hat's winning open-source business model as directly parallel to the Web 2.0 business models deployed by Google and others. While this isn't surprising (I've written about it before), it was the first time … Read more