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Red Hat
and the Open Source Business Model




                     Dragos MANAC
                     dragos@sns.ro
                     http://redhat.sns.ro
History



ξ€Š   1993 – 2003 Red Hat Linux
ξ€Š   2003 – 2008 Red Hat Enterprise Linux




                                           2
Red Hat Technology




                     3
Red Hat Development Model
ξ€Š   Collaboration with partners and open source contributors to
    develop technology
ξ€Š   Deliver complete distributions in two stages for two users
     ●   First stage – Fedora Project
          ● Development vehicle
          ● New versions ~ twice each year
          ● Unsupported, possibly unstable
          ● Fast moving, latest technology
     ●   Second stage - RHEL
          ● Red Hat Enterprise Linux
          ● 18-24 months release cycle
          ● Supported and certified
          ● Stable, mature, commercially
            focused technologies


                                                                  4
Red Hat Enterprise Linux vs. Fedora
ξ€Š   Software selection model
    ●   Fedora may potentially contain unstable technology, no
        testing
    ●   RHEL includes _only_ mature technologies
ξ€Š   Release cycle
    ●   Fedora: new version - every 6 months; updated - ~ 1 year
    ●   RHEL: new versio – every 18-24 months; updated - ~ 7 years
ξ€Š   Update model
    ●   Fedora – incorporate new versions of software
    ●   RHEL – stick to the original one, backport bugfixes, providing
        a stable API




                                                                         5
Red Hat Enterprise Linux vs. Fedora -
cont'd
ξ€Š   Support model
    ●   Fedora: Internet forums. Volunteers, no guarantees.
    ●   RHEL: World biggest open-source software company
ξ€Š   ISV/IHV certifications
    ●   Fedora: none.
    ●   RHEL: Thousands of applications from major ISVs. Hundreds
        of certified HW systems from leading OEMs.
ξ€Š   Every product is good for a particular customer:
    ●   Fedora: IT-enthusiast, home users
    ●   RHEL: Corporate users.




                                                                    6
Certification Ecosystem
ξ€Š   The Red Hat Enterprise Linux OEM and ISV certification portfolio
    ●   The largest is the open source industry
    ●   Continues to grow rapidly
    ●   Is unique to Red Hat Enterprise Linux
        product family
    ●   Provides unmatched coverage
ξ€Š   Driven by
                                                   Thousands of certified applications
    ●   Customer demand
    ●   Platform consistency
    ●   Support longevity
    ●   Product qualities
         ● Performance
         ● Security
         ● Scalability
                                       Hundreds of certified systems
                                                                                         7
Technical Support – The Red Hat Way




                                      8
Value of the subscription
ξ€Š   Subscription – one price, all included
    ●   Product & documentation
    ●   Updates
    ●   Upgrades
    ●   Access to Red Hat Network
    ●   Ecosystem access
    ●   Technical Support


ξ€Š   Services, available
    ●   Training and Certification
         ● RHCE - #1 Hottest IT certification '06 (cetrcities.com)




                                                                     9
Success stories
City of Vienna


ξ€Š   Starting in 1994 with FreeBSD
ξ€Š   Switching to RedHat 7.0 on Compaq/HP Proliant in 2000
ξ€Š   Now: ca. 350 servers in production with RedHat EL 4.0
ξ€Š   Use:
     ●   Webserver                                     15
     ●   Firewall                                      25
     ●   Applicationsservers (Perl, C, Python, Java)   30
     ●   Fileserver (Samba)                            100
     ●   DB Server (Oracle, PostgreSQL)                20
     ●   VAX/VMS emulation on Linux                    50
     ●   Metadirectory                                 10


                                                             11
French Tax Agency


ξ€Š   Project Copernicus, full SOA implementation
ξ€Š   55M citizens + 3M companies
ξ€Š   100K employees
ξ€Š   4000 Linux servers
ξ€Š   Built & developed on Linux/FLOSS
ξ€Š   Lower TCP (75-90%)
ξ€Š   Built on JBoss




                                                  12
WiiFM & ACME


What's In In For Me? (WiiFM)
ξ€Š   Lower TCO
ξ€Š   Increased ROI (+ buzzword compliance)
ξ€Š   Freedom



American Company Manufacturing Everything (ACME)
ξ€Š   Brings in value
ξ€Š   Can be easily Integrated
ξ€Š   Standard compliant
ξ€Š   As expected


                                                   13
Mo' ney?


ξ€Š   Consultancy
ξ€Š   Implementation
ξ€Š   Customization
ξ€Š   Feature request
ξ€Š   Subscriptions
ξ€Š   Support
ξ€Š   Documentation
ξ€Š   Training



Think before you act!


                        14
Red Hat

ξ€Š   Visit http://redhat.sns.ro for information in Romanian and a
    biweekly newsletter
ξ€Š   Visit http://redhat.com for everything else ;-)




Dragos MANAC
dragos@sns.ro
                                                                   15

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"RedHat and the Open Source Business Model" by Dragos Manac @ eLiberatica 2008

  • 1. Red Hat and the Open Source Business Model Dragos MANAC dragos@sns.ro http://redhat.sns.ro
  • 2. History ξ€Š 1993 – 2003 Red Hat Linux ξ€Š 2003 – 2008 Red Hat Enterprise Linux 2
  • 4. Red Hat Development Model ξ€Š Collaboration with partners and open source contributors to develop technology ξ€Š Deliver complete distributions in two stages for two users ● First stage – Fedora Project ● Development vehicle ● New versions ~ twice each year ● Unsupported, possibly unstable ● Fast moving, latest technology ● Second stage - RHEL ● Red Hat Enterprise Linux ● 18-24 months release cycle ● Supported and certified ● Stable, mature, commercially focused technologies 4
  • 5. Red Hat Enterprise Linux vs. Fedora ξ€Š Software selection model ● Fedora may potentially contain unstable technology, no testing ● RHEL includes _only_ mature technologies ξ€Š Release cycle ● Fedora: new version - every 6 months; updated - ~ 1 year ● RHEL: new versio – every 18-24 months; updated - ~ 7 years ξ€Š Update model ● Fedora – incorporate new versions of software ● RHEL – stick to the original one, backport bugfixes, providing a stable API 5
  • 6. Red Hat Enterprise Linux vs. Fedora - cont'd ξ€Š Support model ● Fedora: Internet forums. Volunteers, no guarantees. ● RHEL: World biggest open-source software company ξ€Š ISV/IHV certifications ● Fedora: none. ● RHEL: Thousands of applications from major ISVs. Hundreds of certified HW systems from leading OEMs. ξ€Š Every product is good for a particular customer: ● Fedora: IT-enthusiast, home users ● RHEL: Corporate users. 6
  • 7. Certification Ecosystem ξ€Š The Red Hat Enterprise Linux OEM and ISV certification portfolio ● The largest is the open source industry ● Continues to grow rapidly ● Is unique to Red Hat Enterprise Linux product family ● Provides unmatched coverage ξ€Š Driven by Thousands of certified applications ● Customer demand ● Platform consistency ● Support longevity ● Product qualities ● Performance ● Security ● Scalability Hundreds of certified systems 7
  • 8. Technical Support – The Red Hat Way 8
  • 9. Value of the subscription ξ€Š Subscription – one price, all included ● Product & documentation ● Updates ● Upgrades ● Access to Red Hat Network ● Ecosystem access ● Technical Support ξ€Š Services, available ● Training and Certification ● RHCE - #1 Hottest IT certification '06 (cetrcities.com) 9
  • 11. City of Vienna ξ€Š Starting in 1994 with FreeBSD ξ€Š Switching to RedHat 7.0 on Compaq/HP Proliant in 2000 ξ€Š Now: ca. 350 servers in production with RedHat EL 4.0 ξ€Š Use: ● Webserver 15 ● Firewall 25 ● Applicationsservers (Perl, C, Python, Java) 30 ● Fileserver (Samba) 100 ● DB Server (Oracle, PostgreSQL) 20 ● VAX/VMS emulation on Linux 50 ● Metadirectory 10 11
  • 12. French Tax Agency ξ€Š Project Copernicus, full SOA implementation ξ€Š 55M citizens + 3M companies ξ€Š 100K employees ξ€Š 4000 Linux servers ξ€Š Built & developed on Linux/FLOSS ξ€Š Lower TCP (75-90%) ξ€Š Built on JBoss 12
  • 13. WiiFM & ACME What's In In For Me? (WiiFM) ξ€Š Lower TCO ξ€Š Increased ROI (+ buzzword compliance) ξ€Š Freedom American Company Manufacturing Everything (ACME) ξ€Š Brings in value ξ€Š Can be easily Integrated ξ€Š Standard compliant ξ€Š As expected 13
  • 14. Mo' ney? ξ€Š Consultancy ξ€Š Implementation ξ€Š Customization ξ€Š Feature request ξ€Š Subscriptions ξ€Š Support ξ€Š Documentation ξ€Š Training Think before you act! 14
  • 15. Red Hat ξ€Š Visit http://redhat.sns.ro for information in Romanian and a biweekly newsletter ξ€Š Visit http://redhat.com for everything else ;-) Dragos MANAC dragos@sns.ro 15