RealTime IT News

Red Hat CEO Optimistic about OpenStack

Red Hat reported its full year fiscal 2013 results this week, showing growth and a way forward.

For the full year, Red Hat reported revenue of $1.33 billion, which is a 17 percent year-over-year gain. The full year revenue was fueled by a strong fourth quarter in which Red Hat pulled in $348 million in revenue, also a 17 percent year-over-year gain. Net Income for the full year was reported at $150 million or $0.77 per share, which is a marginal gain over the $147 million reported for fiscal 2012.

Moving forward, Red Hat provided guidance for its fiscal 2014 for total revenue in the range of $1.51 billion to $1.54 billion for fiscal 2014, which would be a 16 percent annual growth rate.

One of the ways that Red Hat is looking to land and expand in the coming years is by way of the open source OpenStack cloud platform.

"We're working with a lot of early adopter customers on OpenStack, and there's a lot of interest in it," Jim Whitehurst, Red Hat CEO  said. "But until those things go into production, there just won't be big dollars."

Whitehurst is optimistic, however, that there are in fact big dollars on the table in the OpenStack market, eventually.

"So I think if you look out, if you put a horizon 4 or 5 years, it could be much, much larger than the Linux market for sure," Whitehurst said. "But if you ask me over the next 12 months, I can't imagine there'll be material revenue, not just for us but for anyone."

Read the full story at Datamation:
Red Hat Grows Business to $1.3 Billion as OpenStack Cloud Opportunity Looms Large

Sean Michael Kerner is a senior editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals Follow him on Twitter @TechJournalist.