Red Hat Nearing $1 Billion in Revenue

It looks like Red Hat will reach revenue of $1 billion dollars in 2011. This number is based Red Hat’s recent quarter. In any case, it will be a remarkable achievement, considering Red Hat’s business is based on open-source software. Only a handful of software companies can claim the $1 billion dollar mark.

This goes to show you, the impact of open-source software to businesses today. Even though it’s hard to track down and quantify open-source use, businesses rely on open-source software more than it’s realized. Redhat’s source of revenue comes mainly from their server side of the business, in terms of subscriptions, training and other services.

Microsoft Sees Linux Threat

Finally, Microsoft is acknowledging that Red Hat and Canonical, the company behind Ubuntu, are a threat to its client business. Microsoft mentioned both Redhat and Canonical in its annual filing to the Securities and Exchange Commission. The Canonical threat is due to the popularity of netbooks powered by Linux.

To those of us who have been using Linux, it’s a well known fact that Microsoft has been attacking Linux for years as attested by the now infamous Halloween documents. The Halloween documents are a series of leaked Microsoft confidential memos pertaining to free software, open-source software and Linux.

Interesting enough, Microsoft does not mention Google Chrome OS which is still a year away from fruition. I imagine, the next time around, Microsoft will shift its focus away from Redhat and Canonical, and towards Google, a much bigger threat with lots of cash and brand to boot.

Red Hat Joins S&P 500

Red Hat is set to join the Standard & Poor’s 500 this coming Friday, July 24, 2009. Red Hat joined Nasdaq in 1999 and then moved over to the NYSE in 2006. As a testament of Red Hat increasing role in business servers, the NYSE started using Red Hat servers themselves in 2008 for their trading operations. Despite the global economic crisis, Red Hat continues to impress posting revenue of $174 million this past year. Red Hat recent quarter netted $18 million net income.