Red Hat president and CEO Jim Whitehurst has pointed to a "fundamental shift" towards cloud and virtualisation spending among business ICT buyers which is starting to benefit the open source solutions specialist.
Speaking as Red Hat unveiled its first quarter numbers for the three months to the end of May, Whitehurst said the firm was "well positioned to capitalise on this growing demand as enterprise customers look to [us] when upgrading and modernising their IT infrastructure."
According to Whitehurst, the firm is set to hit the $1bn revenue mark this year. Speaking to Bloomberg he said the market was now coming to Red Hat, claiming cloud developers increasingly favour Linux.
Total sales for the quarter were up 27 per cent year-on-year to $265m (£165.7m), with subscription sales accounting for $225.5m of the total.
GAAP operating income was $45.4m while net income was up 35 per cent to $32.5m as the firm continued to broaden its product portfolio towards cloud and infrastructure-as-a-service type products, besides enhancing its core Enterprise Linux lines.