RealTime IT News

Tipping the Red Hat

Red Hat, Inc. is bringing new Linux products to the market, just as the company gave a presentation indicating strong sales performance of its operating system and subscription model.

Red Hat is expanding its Enterprise Linux offerings with products for the mid-tier server and workstation market. The two new products are Red Hat Enterprise Linux ES and Red Hat Enterprise Linux WS and now give the company a suite of Linux products to sell to medium and smaller sized businesses.

On Wednesday, Michael Evans, vice president of channel sales and development for Red Hat, gave a presentation at Lehman Brothers Global Software and IT Services Conference, in Half Moon Bay, California.

Evans said sales of Red Hat's Advanced Server system are going better than expected, and that its focus is on the sales of its operating system, and to generate future revenues from recurring subscription contracts. Evans said Red Hat expects its customer to renew subscriptions at a rate of more than 70 percent.

Evans said he estimates Red hat currently holds market share of between 50-80 percent on the Linux operating system software market.

By offering a lower priced version of its Advanced Server software, Red Hat is trying to enter new markets by targeting different levels of the enterprise. Red Hat's Enterprise Linux are certified to work with computers from IBM , Dell Computer and Hewlett-Packard and software from several different vendors. Red Hat said it will be coming out with a new version 3.0 of its Linux-based operating system.

Red Hat has developed a subscription-based model with differing levels of service, but it emphasizes it's an operating system software company, not interested in developing Linux applications.

In a company press release the company said "Available now, Red Hat Enterprise Linux ES provides a complete operating system for a wide range of entry-level and departmental server applications. It is ideally suited for application-, network-, file-, print-, mail-, and Web-serving, as well as for running custom or packaged business applications."