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Red Hat Listed Among 50 Top Tech Companies

Kelvin Ekston writes " Red Hat is listed among ZDNet Asia's 50 Top Tech companies 2006. It is also one of the fastest growing companies with 210.4% year on year income growth over 4 years. While almost all Linux companies grapple with the perennial question of how they can make money through software subscriptions and services rather than selling packaged boxes, Red Hat finally managed to improve credibly and match the hype with substance and show the way to do business with Linux. That's the way to go!"

43 of 169 comments (clear)

  1. What a suprise..... by wpiman · · Score: 5, Informative

    The ad sponsors for the link are IBM, EMC and Redhat. Can you guess which three companies are on the list?

    1. Re:What a suprise..... by FortKnox · · Score: 5, Interesting

      Beat me to the punch.
      Its the same as when people complain that surveys done that show Windows is better than Linux is funded by Microsoft. This should be taken with a large grain (hell, a pinch) of salt.

      --
      Good quote, too many chars. Seriously, the slashdot 120 char limit sucks!
    2. Re:What a suprise..... by jamesgomez · · Score: 2, Funny

      The ad sponsors for the link are IBM, EMC and Redhat.

      Ads? You need http://adblock.mozdev.org/ my friend.

    3. Re:What a suprise..... by timeOday · · Score: 5, Interesting
      Microsft is on the list too.

      Besides, RedHat's 36% annual revenue growth for 4 years is impressive. Sure it's easier for smaller company to score big growth numbers, but $200M in revenue and 36% annual growth seems like a pretty nice place to be.

      The nice thing is RedHat's success actually means something to Linux users, even if they're not RedHat customers, because RedHat is quite active in developing OSS.

  2. And to see the fruits of their labor... by TheLevelHeadedOne · · Score: 5, Informative
    --

    Twin or more? ITA
    Apache/Spring/La
  3. No surprise by AceyMan · · Score: 5, Insightful

    Redhat, everyone should agree, is one of the biggest players in a space we all know is growing nicely, and already has a pretty solid presence in the business space.

    Cracking the top 50 isn't surprising, or terribly newsworthy.

    That said, it's more proof that Linux® is on the radar screen, which is nice.

    --
    -- Experience is a wonderful thing. It enables you to recognize a mistake when you make it again.
    1. Re:No surprise by DogDude · · Score: 5, Interesting

      and already has a pretty solid presence in the business space.

      Yeah. 2 years of profits. That's solid.

      That might be considered "solid" in the Open Source industry, but as a business in general, they're still considered a relatively unproven start-up. I want to see at least a solid 5-10 years of profitability before I'd consider investing a dime, personally.

      --
      I don't respond to AC's.
    2. Re:No surprise by Bogtha · · Score: 5, Informative

      I want to see at least a solid 5-10 years of profitability before I'd consider investing a dime, personally.

      Redhat merged with Cygnus, didn't they? Cygnus have been profitable using an open-source business model since the late 80s/early 90s. And Redhat as a whole have been doing business for 12 years too - although they haven't always been in the black, they have still managed to pay the bills, pay wages, and put out products that people buy for well over a decade. Redhat aren't as unproven as you make out.

      --
      Bogtha Bogtha Bogtha
    3. Re:No surprise by Glock27 · · Score: 3, Interesting
      I want to see at least a solid 5-10 years of profitability before I'd consider investing a dime, personally.

      At which point you'll be investing in a mature, proven company...with a lot less growth potential, and hence much lower stock appreciation prospects.

      The way to make big money in the stock market is to find small, great companies and ride their coattails to wealth. More risk, but far greater rewards.

      --
      Galileo: "The Earth revolves around the Sun!"
      Score: -1 100% Flamebait
    4. Re:No surprise by 31415926535897 · · Score: 3, Insightful

      I want to see at least a solid 5-10 years of profitability before I'd consider investing a dime, personally.

      It all depends on your investment goals, naturally, but doing this as you say is a great way to see your money stagnate. You need to find a company that has a great idea that is undervalued in your opinion. For instance, Microsoft has had many, many years of profitability, but their stock has done nothing interesting in the last year+. I would bet there are a lot of geeks on this board who feel that RedHat is undervalued because the business market doesn't yet understand the power of Linux (especially as a server), and RedHat stands to profit a lot from any growth in that segment. If you were to buy RedHat now, and they became that solid, proven profit-making machine you're looking for in the next 5-10 years, you'll easily double your money. The only way to make money is if you take some risk.

      Again, I want to stress that all of this is based on personal opinion (as you said at the end of your post, 'personally'), and I have no idea if RedHat's stock is going to go up or down. To everybody that reads this--do not make any investment or trading decisions based on this post; if you do you're foolish. This is not an offer to buy or sell any security, and you should obviously talk to any investment professional before you make any trading decisions (yada, yada).

    5. Re:No surprise by nine-times · · Score: 2, Insightful
      I want to see at least a solid 5-10 years of profitability before I'd consider investing a dime, personally.

      Except that a tech company with 10 years of profitability could just as easily be on their way out. There are no guarantees either way, but some people might rather invest in an up-and-commer then a tech company gone stale.

  4. Easy task by DogDude · · Score: 2, Funny

    It's a relatively easy feat to increase profits from Zero just two years ago.

    --
    I don't respond to AC's.
  5. redhat schmedhat by Xargle · · Score: 3, Interesting

    Sure they grow their income, but by that's flogging training, support and having an underpaid skeletal staff and not actually doing that much?

    Ever *used* RH support in a corporate environment? If your query is beyond RTFM it's a constant battle to get anywhere. Plus their QA is terrible given they're competing on the corporate level - we've had hanging kernels (on pretty stock hardware) and endless dodgy packages we've had to replace.

    There's this endless love in on messageboards because they're FOSS promoters and actually comply to the GPL, but when it comes to working with them if you're corporate and you don't have a sizeable contract with them (ie. govt or multinational) their product in terms of service is no where near close to what you'd expect from other vendors in the market.

  6. And I was going to say ... by DikSeaCup · · Score: 3, Insightful
    It seems to me that, as far as Linux distros are concerned, Redhat tends to be the whipping boy of the Linux enthusiasts on Slashdot.

    Some days it seems like some folks put them just a step above Microsoft.

    1. Re:And I was going to say ... by talksinmaths · · Score: 5, Insightful

      Redhat tends to be the whipping boy of the Linux enthusiasts on Slashdot

      I agree, but one must keep in mind that this says far more about the character and maturity of Linux enthusiasts on Slashdot than it does about the RedHat distro.

      --
      Don't you have someone you'd die for?
    2. Re:And I was going to say ... by drsmithy · · Score: 2, Insightful
      It seems to me that, as far as Linux distros are concerned, Redhat tends to be the whipping boy of the Linux enthusiasts on Slashdot.

      This is because Redhat are trying to run a business, not a charity.

    3. Re:And I was going to say ... by scotch · · Score: 3, Interesting

      How is RPM fundamentally more flawed than deb, pkg, or other common package formats? Please keep it technical, thank you.

      --
      XML causes global warming.
  7. Is Red Hat Linux? by FishandChips · · Score: 5, Interesting

    It's interesting to see that they've managed this with less than 1000 employees. Only two others in the list are comparable in this respect. Plenty of other companies on the list have thousands or tens or thousands of employees.

    Red Hat's stock is on an astronomical PE ratio, higher even than Google's. It's pretty instructive comparing the PE ratio to, say, Novell's which is about a tenth as high.

    So, I guess it's clear the financial market is very much buying the line that "Red Hat is Linux", perhaps much more than was the case a year or two ago. Nice news if you're Red Hat. Not so nice for anyone else.

    --
    Las qué passoun
    tournoun pas maï
    1. Re:Is Red Hat Linux? by Otter · · Score: 2, Interesting
      It's interesting to see that they've managed this with less than 1000 employees. Only two others in the list are comparable in this respect. Plenty of other companies on the list have thousands or tens or thousands of employees.

      OK, but only two others in the list have lower revenues! If you look at revenues/employee, Red Hat is ...lessee... 30th of 50, with Hitachi so far in number 1 (36 times that of #2 Dell) I'm thinking there must be a mistake.

      Who was it who was linked here last week saying that table display widgets should be full-featured spreadsheets? I'm all for it!

    2. Re:Is Red Hat Linux? by GigsVT · · Score: 4, Informative

      One thing that killed their PE was constant dilution via secondary offerings, convertible debentures, and compensation stock options.

      If you invested in Red Hat, you really invested in them.. Your money went straight into the companies asset sheet through their extreme dilution.

      Red Hat is making good on it now for us long-term investors finally at least. They are buying back the convertible debentures and some of the stock. This should bring their PE down even if the P part stays constant.

      It's going to take a while though, Red Hat effectively borrowed billions of dollars from their stockholders and they aren't going to pay it back overnight.

      --
      I've had enough abrasive sigs. Kittens are cute and fuzzy.
    3. Re:Is Red Hat Linux? by KiviPall · · Score: 2, Informative

      ... and as you can read form Red Hat Shares Fall on Analyst Downgrade

      Red Hat Shares Fall on Analyst Downgrade
      Tuesday November 15, 12:01 pm ET
      Red Hat Shares Fall 5.5 Percent After Analyst Downgrades Stock on Lacking Near-Term Upside

      NEW YORK (AP) -- Shares of Red Hat Inc. dropped 5.5 percent trading Tuesday after an analyst cut his rating on the stock, citing concern that he doesn't anticipate any events that can move the stock price up in the near future.

      Shares were down $1.34, to $23.02 in midday trading on the Nasdaq.

      and so on ...

    4. Re:Is Red Hat Linux? by fugspit · · Score: 2, Informative

      The P/E ratio is calculated by dividing the share price by the earnings PER SHARE number. As such, it is not affected by stock splits.

      For a company earning $10 that has 10 shares out standing and a share price of $10
      P/E = share price / (earnings / shares outstanding)
      P/E = $10 / ( $10 / 10 ) = 10
      after a 2 for 1 split they will still earn $10 but now they have 20 shares trading at $5 each
      P/E = $5 / ( $10 / 20 ) = 10

      Tada! the same number.

      There are reasons not to rely solely on P/E ratios as a company measure but fluctuations due to stock splits is not one of them.

  8. Ethics by NumberOneFan · · Score: 2, Insightful

    Good on Red Hat. How many times has this "business model" failed, continues to fail, or barely makes it? This way of doing business really relies on the scruples of the company. Financially, it isn't in their best interest to keep packages up to date. The longer they drag their feet, the more money they keep making in their subscriptions. It's like Code Sourcery. They port the GNU tool-chain for use on embedded platforms like ARM. They also give out their changes and such like they have to. What's to say what they give out doesn't have a few bugs that were fixed a long time ago but haven't quite made it to the free public version. If you pay them for support maybe you get a less buggy version.

    I'm not skeptical of when a person does this for free and just relases the source. That's cool. When a company has to generate money by basically, fixing bugs and/or some customization, I think you need to be skeptical.

    Just my paranoid thoughts on it I guess.

    1. Re:Ethics by diegocgteleline.es · · Score: 2, Insightful

      If you pay them for support maybe you get a less buggy version

      Red Hat releases .rpms and .srpms for all their software. So they can't hide "special fixes". But sometimes mainstream developers doesn't want those fixes (and there's no reason why a OSS developer shouldn't be looking at the .srpms and check the patches to see if there's something interesting), or the fixes are not ready to be upstream. For example, redhat backported lots of 2.6 things to 2.4. 2.4 was not going to include those never, the same goes for the fixes for those extra features.

      When a company has to generate money by basically, fixing bugs and/or some customization, I think you need to be skeptical

      Red Hat generates money by being "red hat", having support, etc. It's not the quality of the software what matters for support, what matters is the fact that if you find a bug redhat will fix it. Once redhat has fixed it, they've no interest in keeping the fix only for them. From what I've seen, they're not interested in having to maintain thousand of extra patches and they try to avoid it as hard as possible.

      Redhat also sells because of their customization:

  9. So why stock down by yapplejax · · Score: 2, Interesting

    If that's the case, then why is RedHat dipping following analyst downgrades?

    1. Re:So why stock down by GigsVT · · Score: 2, Insightful

      If you still listen to analysts after the very public events of the last 5 years, you deserve what's coming to you.

      --
      I've had enough abrasive sigs. Kittens are cute and fuzzy.
  10. Re:Good stuff -- by meisenst · · Score: 2, Interesting

    Oh, I have nearly 15 years of proven skill. I think what I'm getting at here is, there is a sizeable amount of demand for RH services and/or support -- yet people who are certified with their products seem to find less demand than, say, MCSE.

    --
    Green's Law of Debate: Anything is possible if you don't know what you're talking about.
  11. Re:Apple is the future, though. RHAT remains niche by einhverfr · · Score: 4, Insightful

    You have a lot more faith in Apple's business ability than I do. Apple has always managed to survive but has seemed to be the future of the OS for the last twenty years. Apple has never been willing to allow their vertical integration to be broken (even with the move to Intel chips), and thus is always a niche market. For better or worse I don't see this changing.

    Now, I have used Linux as my primary desktop at home for six years. In that time, it has improved more than any other desktop solution in terms of look and feel, but it was adequate from a productivity perspective even in 1999. Both Gnome and KDE have similarly improved.

    What holds back Linux on the desktop is simply fear of change and fear of a lack of interoperability with MS products. These issues are being delt with quickly and I expect that within a short time both issues will be mitigated sufficiently to allow larger corporations to move quickly to Linux with only a bit more effort than upgrading Windows. With any luck we will be close to that before Vista really starts to become commonplace.

    --

    LedgerSMB: Open source Accounting/ERP
  12. Re:Apple is the future, though. RHAT remains niche by tpgp · · Score: 4, Insightful

    Let's face it, Red Hat's amaturish "desktop" offerings and lame marketing can't and won't overthrow Micrsoft.

    Troll.

    Red hat do not compete in the desktop space. Nice try.

    As the future of Unix, Apple is also making strong claims on the server and super computer markets. Apples success with the Virginia Tech supercomputer is proof that Apple is opening up a lead in the top-end of the market.

    Troll

    You mean the way Linux "rules" Supercomputers with an estimated 60% of the top 500?

    There seems to be an emerging consensus in Slashdot land that Apple and OS X is the future of Unix and the sole legitmate claimaint to the king of the desktop.

    *sighs* Troll... modded up to +3 by apple fanboys - how predictable.

    --
    My pics.
  13. Re:Red Hat who? by robpoe · · Score: 2, Informative

    That's a "Microsoft Answer"(TM).

    Sure, you *can* download a RHEL. It's just called Centos. Or WhiteBox.

    But you're right .. RedHat won't recognize you then.

    --
    = Grow a brain...
  14. % increase in profit should be taken with a grain by carlcmc · · Score: 2, Informative

    ... of salt.

    going from barely making anything to making just a bit more can be a dramatic % growth but still not necessarily reflect a thriving business model which will generate year over year growth.

  15. Perhaps a dime or three wouldn't hurt. by Vengeance · · Score: 4, Interesting

    I personally put some money into RedHat last summer. Not enough to bankrupt me or to get rich, you understand, but I'm currently sitting on about 41% equity growth.

    --
    It was a joke! When you give me that look it was a joke.
    1. Re:Perhaps a dime or three wouldn't hurt. by DogDude · · Score: 2, Informative

      And you'll probably see that kind of growth for a while longer, too. What you're talking about (the span of a year or so) isn't investing... it's speculation. And while I don't deny that Red Hat has had decent returns recently, and may continue to in the near future, the parent said that Red Hat is a "solid" company. My main point of contention is that two years of profit doesn't define a "solid" company in the financial sense, regardless of industry. The dot-coms all had tremendous growth as far as market capitalization goes (stock price), but very few of them had "solid" financials, hence the dot-bomb. New businesses can't even APPLY for most bank loans until they've been open and profitable for at least 3 years (this is coming from a business owner).

      --
      I don't respond to AC's.
  16. Interesting that Google is missing... by CptTripps · · Score: 4, Interesting

    I thought it odd that F5 Networks was there, but Google wasn't...

    I DID like that RH made the list with 800 employees...compared to 11,000 for Apple, or 56,000 for M$.

    --


    My .sig can beat up your honor student.
  17. Re:Good stuff -- by mottie · · Score: 2, Insightful

    Every tech I've ever met that has moved to Vancouver from Ottawa has talked about how far behind in technology the average infrastructure in Ottawa is. They blame it on the fact that Ottawa has a lot of goverment jobs. Based on that (and only that, I've never worked or been to Ottawa) I'd guess that an RHCE wouldn't be as valuable as an MCSE, as the Canadian Gov't hasn't embraced linux yet.

  18. Re:Any non-independent study by jd · · Score: 2, Funny

    That should be sodium chloride. Though if you want to use sodium fluoride on bullshit (or indeed food), I won't stop you. I'll just not eat in the same restraunts.

    --
    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
  19. Re:Apple is the future, though. RHAT remains niche by e40 · · Score: 2, Interesting
    As the future of Unix, Apple is also making strong claims on the server and super computer markets.
    I call bullshit. We run almost every flavor of UNIX available (AIX, Solaris, FreeBSD, various Linux distros, Tru64, HP-UX, Mac OS X, yada, yada, yada), and I can tell you without a doubt: Mac OS X is the least stable and the most difficult OS to deal with.

    Look at something like AMD (the automounter, not the chip) and NFS. Wanna lock up your Mac OS X box? Merely access the automount point (/net for us). The finder and AMD don't mix. WTF? It's been this way from 10.0, 10.1, 10.2, 10.3 and now 10.4. Yes, 10.4 is better. Waaaaay better than just a couple of revs ago. Mature it is not. In 10 years it might have a chance, though remote, of being as stable as Linux and Solaris are today.

    In general, when I have some opensource package I need to compile and install on all the UNIX boxes here, what system will make me spend 90% of the time on it? That's right, Mac OS X. Yes, 10.4 is better, but I could waste whole days trying to get crap to compile on 10.3 and before.

  20. Many, many RHEL rebuilds out there by jd · · Score: 2, Interesting
    Scientific Linux is another. They're good for stability, but I wouldn't rate them much for performance (the builds are all pretty safe and have no obvious speedups anywhere), extensibility (very few RPM sites provide RHEL RPMs) or progressiveness (you can't update Enterprise-level software that rapidly, but RHEL is getting positively ancient in places).


    I'm hoping someone'll put together a "best of" compilation, using what's stable (and what can be made stable) from the RPM repositories - including Fedora - but optimized much more aggressively. I would, but I don't have the bandwidth or the disk space to carry a distro. If someone was interested in hosting, that would be another matter. I'd certainly be willing to compile the code and upload it to a host site.

    --
    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
  21. Re:The updates aren't that impressive by Lumpy · · Score: 3, Informative

    really? what you point to is still on RHEL 4.1 while centos is already at 4.2 and I have never had a problem like you described.

    Maybe back in the 3.x series they were lagging, but they have a crapload of people working on it now as well as their own yum update repository instead of pointing at redhat's.

    --
    Do not look at laser with remaining good eye.
  22. Re:Red Hat cosponsored the survey... by Anonymous Coward · · Score: 4, Informative

    You're so obviously retarded, I need to work through this one point at a time.

    > BAH!!! REDCRAP is the WORST piece of shit I've ever used. We just bought a bunch of
    > RHEL 4 AS licenses, and it has been a freaking nightmare. Support sucks, and takes
    > it own sweet time if it's not something easily found. And they'll ask you to test things
    > out for things that they've confirmed to be issues - WTF? If you FSCKING know it's an
    > issue, you can FSCKING TEST IT OUT YOURSELF, damned lazy bastards.

    Lazy? Have you any idea how long it could take to *accurately* reproduce a problematic
    environment for this kind of work? It may not even be possible. By asking you to help out,
    they are helping *YOU* out - FOSS is all about co-operation btw.

    > I also like the way they push things off to others. Oh, disk druid is broken? Use fdisk.
    > Umm, excuse me, but where's fdisk when I'm trying to install? And why aren't you putting
    > in a ticket to engineering to get it fixed?

    It's on virtual console 2 (Alt-F2, or Ctrl-Alt-F2 if you're using graphical). Learn to use
    the tools in your hands before criticising the help offered by others. Or find out what a
    kickstart %pre script is good for.

    > And I especially love the way everything is bundled together. So, now, my choice is waste
    > 1G of disk space on win2k, or waste 1G of disk space on REDCRAP, when all I'm trying to
    > do is run a freaking web server?!

    You installed your webserver with a pre-defined package profile? What are you? Fscking crazy?

    Learn to do a kickstart like everyone else and have *only* the packages you select.
    Oh, wait, you probably don't even know what packages you want or need.

    *sharpens the clue-by-four*

    > Oh, oh, lets not even mention the fact that RHEL4 can't even run, out of the box, on
    > platforms that they advertize for!!!! Yeah, go perform a default install of RHEL4 on a
    > dual core opteron, reboot, and watch it hang. Why the fsck do you put in the smp kernel,
    > if it doesn't fucking work?

    You mean the dual core opterons that weren't even available as engineering samples at the
    time RHEL4 was being cut? Ahh, of course, Red Hat should have just used their magic crystal
    ball. In the mean time, install update 2 like the rest of the sane world.

    Oh, and RHEL doesn't even come in a box. It's a *subscription*. But you knew that right?

    > And of course, the support and registration sites going up and down, and taking more than
    > 24 hours to get my damned registration in.

    Works for me. Perhaps you need to use a working web browser? Or maybe the fault is between
    chair and keyboard?

    > And lets not talk about how much fun it was doing an up2date to go from RHEL 4 to RHEL 4
    > U1 and U2. Freaking dependency failures, and killing the box so bad that it can't reboot,
    > and needing a re-install.

    OK, now I just don't believe you. Oh, wait, you didn't kill an up2date/RPM process did you?
    Or reboot? Bwaahahahahahaaaha HALOF!

    > 2. ftp and http both support resumption of downloads, so if REDCRAP's servers can't
    > support this, this is a REDCRAP issue, isn't it?

    RHN downloads use wget or curl by preference. Please consult the manual pages.

    Also, please investigate the carriage return key on your keyboard - it's very useful.

  23. So what? by flyinwhitey · · Score: 2, Interesting

    Mod me down if you want, but a few years ago, pets.com could have been listed there too.

    This may be an indication of great things to come, or it could be the start of the much speculated upon Linux bubble.

    Don't jump to conclusions.

    --
    How pathetic are you that you follow me from topic to topic and waste all your mod points at once modding me down?
  24. Re:Redhat Did a lot to screw Linux credability too by RunzWithScissors · · Score: 2, Insightful

    LMFAO Of course RHEL 2.1 AS has no LVM support, it was created four friggin years ago! And lets face it LVM on Linux back then was not what you would call, um, stable or reliable. But lets also look at what Red Hat has done with RHEL 2.1 AS. They've published updated and bug fixes over the last four years, and another 3 years into the future. It's still a reliable platform, even if it is no longer a modern one. And seriously, holding Red Hat accountable for what Oracle or some SAN provider is doing is ludacris. Like they have any control over the Oracle sourcecode or QA at another corporation, or licensing agreements offered by other companies on unrelated add-on products. There's a reason Oracle installs itself in /opt. I mean, That's like saying that Fedora sucks because your Nvidia graphics card doesn't work right, *mutters* with the binary drivers I downloaded from Nvidia and have nothing to do with Red Hat nor included in any part with the Red Hat distribution... You want to talk about hinky agreements, how about the fact that SUN sales reps got kickbacks from Oracle based on the number of per CPU Oracle licenses they sold! Like that didn't encourage the sales people to tell the customer they need an extra 2 CPUs to really do the Oracle operations they wanted. I'm sure Red Hat has problems, like every other company, but dinging them because of crap that other companies do is silly. -Runz

  25. Re:you know redhat has made it by pembo13 · · Score: 2, Interesting

    Critizing is one thing, but have you read some of the brain dead comments comming out? What exactly is the point of your post?

    --
    "Thanks for all the money you paid to us. We've used it to buy off ISO among other things" -Microsoft