Red Hat grows enterprise subscriptions

Enterprise software

Red Hat grows enterprise subscriptions

Cliff Saran

Red Hat grew its subscription revenue by 18% year-on-year to $372 million for the first quarter ending 31 May 2014.

Its operating income for the quarter was $51 million, down 10% year-on-year.

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Jim Whitehurst, president and chief executive officer of Red Hat, said: "We now count 94% of the Fortune 500 and 90% of the Fortune Global 500 as customers. These are some of the most sophisticated IT organisations in the world, and many continue to increase their purchases from Red Hat to modernise their IT infrastructure with cloud-enabling technologies."

In a transcript of the earnings call posted on the Seeking Alpha financial website, Whitehurst said Red Hat had renewed subscriptions of its largest deals. "I am pleased to announce that we again successfully renewed all 25 of our top 25 deals up for renewal during the quarter," he said. "Moreover, we saw a number of customers buying multiple technologies from us, including some that purchased five to 10 different technology offerings."

Whitehurst discussed how the latest release of Red Hat Enterprise Linux (Rhel 7) was enabling businesses to support heterogeneous datacentre environments, such as Microsoft Active Directory. Red Hat has also boosted its relationship with SAP to support Hana. 

"This expanded relationship gives Red Hat even greater access to the SAP portfolio of solutions as well as SAP’s entire ecosystems, systems integrators, ISVs, OEMs and cloud providers," he said. "This enables a new space in revenue opportunity for Red Hat. We have also strengthened our position to deliver software-based storage solutions for big data and OpenStack with two recent acquisitions."

In April, Red Hat acquired Inktank, which specialises in block, object and file storage. And this week, the company announced it would be purchasing eNovance, a provider of open-source cloud computing services. Red Hat plans to integrate eNovance with its OpenStack technologies to expand its enterprise OpenStack consulting, design and deployment services.

eNovance offers technology for service providers and enterprises for building and deploying large-scale cloud infrastructures.


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