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Red Hat Nears $1 Billion In Revenues, Closing Door On Clones

darthcamaro writes "Red Hat is almost at its goal of being the first pure-play open source vendor to hit $1 billion in Revenues. Red Hat reported its fiscal 2011 revenues this week which hit $909 million. Going forward, Red Hat has already taken steps to protect its business by changing the way it packages the Red Hat Enterprise Linux 6 kernel, making it harder for Oracle to clone. 'We are the top commercial contributor to most of the components of the Linux kernel and we think we have a lot of value and we want to make sure that, that value is recognized,' Red Hat CEO Jim Whitehurst said. 'In terms of competition, I don't think we necessarily saw anything different from before but I'd say better to close the barn door before the horses leave than afterwards.'"

8 of 201 comments (clear)

  1. Clones around, it's "enhanced clones" with trouble by Anonymous Coward · · Score: 5, Informative

    CentOS and Scientific Linux are still workable, it's the "enhanced clones" like Oracle and Novell that are cherrypicking RHEL's best customers and not giving back to the open source community with development in open source filesystems, X, authentication, and genuine hardware support that are messing up the business.

    It's just too bad CentOS has lost its way with one of its developers, Johnny Hughes, telling people to not let the door hit them in the ass on the way out if they don't like how late everything is and then ignoring attempts to help. I just switched to Scientific Linux and and am quite happy.

  2. Re:What about CentOS? by MrClever · · Score: 5, Informative

    Under the GPL, my understanding is that RedHat need to make the source code available. This then allows CentOS to grab the source (RPMs) and re-badge/recompile it into a new distribution. So I don't think this distro is going away any time soon.

  3. Re:What about CentOS? by F.Ultra · · Score: 5, Informative

    It means exactly nothing for CentOS. CentOS clones the RH kernel 100% anyways and is not interested in the individual patches. This is only to stop Oracle from selling support contracts for Red Hat installations. So it has exactly nothing to do with cloning and everything to do with support (in order to support RH systems, Oracle would need to know which patches RH has and more importantly: why).

  4. Do not panic by stikves · · Score: 5, Insightful

    I believe they have no beef against CentOS, actually I've seen at least one Red Hat employee encouraging the use of CentOS, since Red Had is the "de facto upgrade path" (not the exact words, but something along this way). So you freely enlarge the customer base, which will go to Red Hat when they need higher level commercial support. And for the free ones, even Microsoft has recognized they cannot sell to students, and are giving away the software anyways.

    However Oracle is another deal. They just slap Oracle logo on Red Hat, do not acknowledge the source, and sell is as "unbreakable Linux". This would make a regular person ashamed of himself. They benefit a lot from open source but not giving back much in return. Do not start me with what they're doing to Solaris, Java, and OpenOffice...

    So I'm with Red Hat on this one, at least until they do something directly bad to CentOS.

  5. Re:Well that's ominous by h4rr4r · · Score: 5, Informative

    RedHat employs Kernel devs, their patches go directly into upstream. This is for patches that will never make it into upstream for that kernel. Basically all the stuff RedHat backports to the old crusty kernels they use.

  6. Re:Well that's ominous by Trufagus · · Score: 5, Insightful

    As far as I can tell RH does give back. They give back a lot. And it must get kind'of annoying for them that other companies - some of whom give back nothing - copy RH Linux and significantly undermine RH's ability to earn revenue from their distro.

    There are tons of companies out there that violate the GPL, give nothing back, or even actively undermine open source. I would suggest that your disapproval is better directed at them.

  7. Re:Well that's ominous by kmdrtako · · Score: 5, Informative

    ...fewer of their patches will be incorporated upstream, so they have to spend more work porting them into each new release; they'll have less community review and bugfixes in their patches; and they're going to alienate the community.

    I guess it's not well known, even though it's not a secret. Red Hat pushes their fixes upstream first. After, and only after, they are accepted upstream are they then incorporated into the RHEL kernel.

  8. Scientific Linux 6 by KainX · · Score: 5, Informative

    Scientific Linux 6 is already out. See http://ftp1.scientificlinux.org/linux/scientific/6.0/x86_64/os/sl-release-notes-6.0.html for their detailed release notes. If there was any doubt in your mind that the direct rebuild projects are unaffected by this move, there shouldn't be any longer.

    It's pretty clear they're trying very hard this time around to stay in lock-step with upstream (what they call TUV and what CentOS calls PNAELV) and add fewer packages into the mix directly. They're also funded to do this work full-time by the US government, and since many universities and national labs rely on SL, it's not going away any time soon.

    If you've never tried it before, I encourage you to do so. To quote the old tagline, it's already ready already.

    --
    Michael Jennings | HPC Systems Engineer, Lawrence Berkeley National Lab | Author, Eterm (eterm.org)