Red Hat - The Open Source Model

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  • Red Hat is the world’s leading and most trusted provider of open source solutions. We are experts in helping our enterprise customers derive value from the open source development model. Our unique business model delivers open source technology and enterprise-class services—sold by subscription. Our operating system platform, Red Hat Enterprise Linux, together with applications, management, and service-oriented architecture solutions, including the JBoss Enterprise Middleware Suite, deliver industry-leading value. And with 66 offices in 30 countries, and the track record of the open source leader, we have the global capability and expertise to help you get the most out of open source in your organization. The basics: Founded 1993 IPO 1999 Worldwide offices 66 offices in 30 countries Employees ~3,000 Headquarters Raleigh, NC President and CEO Jim Whitehurst Chairman of the Board Matthew J. Szulik Exec VP & CFO Charles E. Peters Market NYSE Ticker symbol RHT
  • As of February 2009, there are over 2,200 ISV Partners in the Software Catalog and over 3,400 certified Red Hat Enterprise Linux applications in the Software Catalog.** Customers want the largest choice of applications possible and ISVs want to be certified on the most popular platforms – combined, this creates success for the growth of Red Hat’s ecosystem. Red Hat boasts the ability to enable our ISV partners to certify their software only once for a single architecture because the Red Hat Enterprise Linux product family shares a common core. This works with Red Hat’s promise of certify once, deploy anywhere, making life more simple for our customers and partners.
  • The final part of our mission talks about the open source way. What is the open source way? It's how we develop our technology. And it has a wide range of characteristics and benefits. There are many reasons why our open source model of development solves problems for our customers. It's a better way to build technology. It provides a better environment for innovation and collaboration. It also allows us to build more transparent relationships wit our customers. We can deliver more performance and value, and in turn Red Hat delivers more accountability. It's our job at Red Hat to be a guide for enterprises in the open source community and help them take full advantage of these benefits.
  • To understand the fundamental differences in the Red Hat approach, you must first understand what makes our development model so fundamentally different. Here's the idea: More participation equals better technology for everyone. By encouraging customers, contributors, and partners to become part of the innovation process, they become participants in their own success. That doesn't mean every customer will want to contribute code, or even want to participate at all. And it may mean contributing ideas or feedback. We want to help foster an open source environment where anyone can contribute and the best ideas win. In other words, we create value by sharing—and allowing the ability to share. The more we share, and the more we help others share, the more value we create for our customers.
  • As of February 2009, there are over 2,200 ISV Partners in the Software Catalog and over 3,400 certified Red Hat Enterprise Linux applications in the Software Catalog.** Customers want the largest choice of applications possible and ISVs want to be certified on the most popular platforms – combined, this creates success for the growth of Red Hat’s ecosystem. Red Hat boasts the ability to enable our ISV partners to certify their software only once for a single architecture because the Red Hat Enterprise Linux product family shares a common core. This works with Red Hat’s promise of certify once, deploy anywhere, making life more simple for our customers and partners.
  • As of February 2009, there are over 2,200 ISV Partners in the Software Catalog and over 3,400 certified Red Hat Enterprise Linux applications in the Software Catalog.** Customers want the largest choice of applications possible and ISVs want to be certified on the most popular platforms – combined, this creates success for the growth of Red Hat’s ecosystem. Red Hat boasts the ability to enable our ISV partners to certify their software only once for a single architecture because the Red Hat Enterprise Linux product family shares a common core. This works with Red Hat’s promise of certify once, deploy anywhere, making life more simple for our customers and partners.
  • In today’s presentation we will talk about some of the business drivers for migrating from SUN Solaris to a Red Hat Linux environment, Transition tools offered by HP to customers and briefly look at top 5 issues (in no particular order of priority) we have come across in transitioning customers to a RH Linux environment HP Platforms in the past.
  • The subscription model is the best way for us to deliver the on-going value of Red Hat, and the continuous innovation of open source to our customers. The subscription is at the heart of our customer-friendly business model. Ultimately, the subscription model delivers peace of mind over the long-term. Predictable technology, predictable costs, predictable innovation, continuous value. Primary features of a Red Hat subscription include: - Access to the software product binaries and documentation (source code is available for free with or without a subscription)‏ - Regular product updates and version upgrades - Maintenance (bug fixes, security fixes, new hardware support and features)‏ - Support (phone and/or web, up to 24x7 with - 1 hour response)‏ - Ability to deploy on fully supported hardware and software from a large portfolio of certified ISV applications and OEM hardware certifications - Ability to work with Red Hat to influence future product directions - Stable application interfaces (API/ABI) for multiple years (up to 7) so long-term, secure, deployments are feasible A subscription is more than just the technology. More than just support. Only when these elements are combined do you have the full value of a Red Hat subscription.
  • The Red Hat open source solution stack delivers a wide range of viable alternatives to proprietary technologies. We deliver value through every application, every workload, and with every business requirement.
  • The Red Hat open source solution stack delivers a wide range of viable alternatives to proprietary technologies. We deliver value through every application, every workload, and with every business requirement.
  • But what can Red Hat do for you? What can we do for you now, today? Everyone knows the pressures of the current economic environment. Depending on your point of view, the economic crisis is either a complete catastrophe or a potential opportunity. You're going to be doing more with less. There's no getting around that. Here's another truth: Getting through any catastrophe requires that we see the opportunities it presents and act on them. If you are willing to embrace change, to look for better ways--then there is an upside to the downturn. This is the time to take a leap. To differentiate yourself as an innovator. Otherwise your job is just more hunkering down, budget cuts, staffing cuts, longer hours, and lowered expectations. The old safe is no longer safe. We can help you make the transition. We understand enterprises use a mix of open source and proprietary software. We make sure our technology is interoperable with a wide range of technologies. The result is a customer model that's built on rapid innovation, designed for value, and centered around you.
  • Red Hat - The Open Source Model

    1. 1. Open Source The Business Model (It's good for the community, supplier and customer!)‏ Red Hat
    2. 2. With a Lever Long Enough... “ Large ocean liners, tankers, aircraft carriers, and other massive vessels have equally massive rudders. However, even the sturdiest rudder axle would snap under the pressures of battling the inertia and water pressure resisting its attempt to change the direction of one of these behemoths. That is why, on the trailing edge of these giant rudders, there is a thin strip of steel called a trim tab. A relatively small motor turns the trim tab, which can withstand the relatively small water pressure against it. That pressure is translated to the massive rudder, which responds by turning in the opposite direction, and redirecting the entire ship.” -- David Galiel, A Lever Long Enough n.b. The open source model enables millions of tiny levers, loosely connected, to change even the most intransigent companies, industries, and paradigms . You can change an Industry.....
    3. 4. ~15 Million users of Red Hat Fedora The early release version of RHEL ~20 Million Downloads of JBOSS The Community Version of JBOSS ~3 Million Servers Running Supported Red Hat Linux ~2200 + ISV Partners ~3400+ Certified Red Hat Linux Applications ~7 Years Support per RHEL Version
    4. 7. Collaborative Innovation Framework Open Standards Enabling access to data Anytime, Anywhere, Anyhow access to knowledge Open Content Access to Knowledge (Creative Commons, Wikipedia) ‏ Open Standards Enabling access to data (ODF, Royalty Free Standards) ‏ Open Content Access to Knowledge (Creative Commons, Wikipedia) ‏ Open Standards Enabling access to data (ODF, Royalty Free Standards) ‏ Open Source Freedom to modify the code (Fedora, Software Patents Issue)‏‏
    5. 8. Some Open Source Facts
    6. 9. The Long Tail of Open Source <ul><li>OSS achieved first article sooner... </li></ul><ul><ul><li>With fewer bugs...
    7. 10. That were fixed sooner... </li></ul></ul><ul><li>The trend continues... </li></ul><ul><ul><li>Xen Virtualization
    8. 11. SE Linux
    9. 12. GRASS/R/PostgreSQL
    10. 13. MySQL
    11. 14. JBoss ecosystem
    12. 15. Eclipse
    13. 16. Blender, Inkscape, GIMP, Ardour, Audacity, etc. </li></ul></ul>Open source is a proven, high quality development methodology Source: http://opensource.mit.edu/papers/mockusapache.pdf
    14. 17. Customer Adoption:Open Source Changing Early adopter represents a fraction of the total IT spend Supported Open Source:- Typical Sweet spot Laggards-late to move Cost and risk sensitive Early Majority; Influenced by references “ Whole product” needed Vendor Confidence Paramount “ Main Street”- Commoditised, Value Led, Dominated by 2-3 licence vendors Open Source=High value alternative Supported Open Source:- Moving to Early Adopters (Virtualisation/Cloud)‏ Late majority:Conservative, Price driven Open Source is very attractive Support and reputation critical
    15. 18. Open Source for Commercial use? Customer need Licensed Software “ Open” Open Source High Quality Software Possibly Likely Stable and Robust for Enterprise use Possibly V.Unlikely Certified and Supported on Hardware Selected V.Unlikely Certified and Supported on Software Selected V.Unlikely SLA for assistance and “fixing” Yes No Revision management for 3-7 years Yes No Low cost of acquisition/operation unlikely Yes Availability of trained/training resources Likely Unlikely Consulting, Vendor and partner support Likely Unlikely API stability Possibly Yes Adherence to open standards Where necessary Likely Support “audit trails” for compliance V.Likely V.Unlikely Licence IPR cover Yes No Potential for Lock in High Low Thomke, Stefan and Eric von Hippel (2002) „Customers as Innovators: A New Way to Create Value“ Harvard Business Review, Vol 80 No. 4 April pp 74-81.
    16. 19. Open Source for Commercial use-Benefits No Licence Cost Capital is not spent on product that could be acquired “foc” Potential for customers saving “millions” Open Standards are the “de-facto norm” Interfacing to other technology simpler Potential for “lock in” low Innovation Levels “High” Community development, motivated, clever people Less restrictions due to “legacy” protection issues. Developers Favour Open Source Availability of Source code unlike Proprietary Ability to modify/re-develop to adapt to challenges
    17. 20. Open Source for Commercial use-Challenges Lack of Stability and controlled longevity Needed to maintain Datacentre Uptime Hardware Suppliers don't certify pure open source Hardware SLA cannot be supported by Vendor Software Vendors only support managed releases Commercial Software Suppliers do not support “open” Open Source versions No SLA from “Suppliers” to support Production Downtime costs money IP breach could be a risk for user legal and purchasing departments may avoid open source Support Workload-”Open” is “Unsupported” You are on your own.... No “Roadmap”....
    18. 21. MAKING OPEN SOURCE ENTERPRISE CONSUMABLE Development Direction Quality Control Release Management Certification ISV Programmes Phone Support Bug Fix Updates Professional Services
    19. 22. 2-3000 developers/ members From Red Hat in Linux community Linux Contribution of Community Members Red Hat Contribution to Linux
    20. 23. Beta Track Final Track R&D Spend FY2010: US$130M (+33%) 2 Year Major Release 7 Year Life Cycle Red Hat Development Management Managing The Enterprise “Hardening Process”
    21. 24. What's in a “Subscription”? What do you get?
    22. 25. The Scope and Options from OSS is growing
    23. 26. More and More Choice in the Open Source Market Pure Open Source... Commercial
    24. 27. Enterprise Adoption of Supported OSS: Key to OSS Industry Growth Enterprise Use Creates Large ROI for Users from Licence saving Major Potential Savings In Government IT Enterprise Use Creates “Industry Acceptance” of OSS Enterprise Use Funds Strategic Directions Enterprise Use Forces and ReInforces Open Standards Enterprises and Users Pay for Support if Needed Funding grows the Product Line and Code Base Supported Open Source Becomes Commercially “Normal” Smaller users gain from Enterprise Adoption 4-4.5M Paid Linux Subscriptions, 50M installs <ul><li>Enterprise Use Creates Large ROI for Users
    25. 28. Major Potential Savings In Government IT
    26. 29. Enterprise Use Creates “Industry Acceptance” of OSS
    27. 30. Enterprise Use Funds Strategic Directions
    28. 31. Enterprise Use Forces and ReInforces Open Standards
    29. 32. Enterprises and Users Pay for Support if Needed
    30. 33. Smaller users gain from Enterprise Adoption </li></ul> 4-4.5M Paid Linux Subscriptions, 50M installs It's a Win-Win-Win.....

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