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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!"

15 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.

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    2. 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
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  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.

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    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.

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    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.

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  4. 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.

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    1. 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.

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  5. 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.

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  6. 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.

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  7. 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.

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  8. 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$.

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  9. 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.

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  10. 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.