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Red Hat Inc's Business Segments
Red Hat Inc's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Segment Data As of Q1 FY2020
Reportable Segments
-
Largest Segment
-
Total Revenue
$ 934
Regions Reported
3
Red Hat Inc does not report a distinct business-segment axis in its filings - its disaggregated revenue is disclosed by product and service category instead. See the Product & Service breakdown below.
Revenue Share by Region - Q1 FY2020
- Americas62.3%
- EMEA23.2%
- Asia Pacific14.4%
Revenue by Geographic Region - Q1 FY2020
| Region | Revenue (Millions) | % of Total |
|---|---|---|
| Americas | $ 582 | 62.3% |
| EMEA | $ 217 | 23.2% |
| Asia Pacific | $ 135 | 14.4% |
Revenue by Product & Service Category - Q1 FY2020
- License87.2%
- Infrastructure Related Subscriptions62.1%
- Applications Development Related and Other Emerging Technology Subscriptions25.1%
- Technology Service12.8%
- Consulting Services10%
- Training services2.8%
Revenue by Product & Service Category - Q1 FY2020
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| License | $ 815 | 87.2% |
| Infrastructure Related Subscriptions | $ 580 | 62.1% |
| Applications Development Related and Other Emerging Technology Subscriptions | $ 235 | 25.1% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
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Description of Red Hat Inc
Red Hat Inc. is a multinational software company founded in 1993 by Bob Young and Marc Ewing in Durham, North Carolina, United States. The company is a leading provider of open source solutions, including Linux operating systems, cloud infrastructure, middleware, management, and storage solutions. Red Hat's primary focus is on developing and distributing enterprise-grade software solutions that are built on open source technologies.
The company's flagship product is Red Hat Enterprise Linux (RHEL), which is one of the most widely used operating systems in the world, providing a secure, flexible, and stable platform for enterprise applications. The Red Hat OpenShift cloud computing platform is also a key product, which enables developers to create, deploy and manage applications in a hybrid cloud environment.
Red Hat is recognized as a leader in the open source community, contributing significant resources to the development of open source technologies. The company is also a member of numerous open source organizations and initiatives, including the Linux Foundation and the OpenStack Foundation. In addition, Red Hat regularly works alongside other tech giants such as Microsoft, Google, and Amazon, to help shape the direction of the industry.
Red Hat has a global presence with more than 12,000 employees spread across 35 countries. The company's revenue primarily comes from its subscription-based business model. This model focuses on providing services such as technical support, training, and consulting in addition to license sales, giving customers a comprehensive solution for their IT needs.
In October 2018, Red Hat announced that it would be acquired by IBM for $34 billion. This acquisition marked a significant milestone for both companies, with IBM looking to expand its cloud computing capabilities, and Red Hat benefiting from IBM's extensive resources and long-standing reputation in the industry.
Overall, Red Hat Inc. is a highly respected technology giant that has revolutionized how businesses operate using open source technologies, and continues to be at the forefront of the industry's technological advancements.
The company's flagship product is Red Hat Enterprise Linux (RHEL), which is one of the most widely used operating systems in the world, providing a secure, flexible, and stable platform for enterprise applications. The Red Hat OpenShift cloud computing platform is also a key product, which enables developers to create, deploy and manage applications in a hybrid cloud environment.
Red Hat is recognized as a leader in the open source community, contributing significant resources to the development of open source technologies. The company is also a member of numerous open source organizations and initiatives, including the Linux Foundation and the OpenStack Foundation. In addition, Red Hat regularly works alongside other tech giants such as Microsoft, Google, and Amazon, to help shape the direction of the industry.
Red Hat has a global presence with more than 12,000 employees spread across 35 countries. The company's revenue primarily comes from its subscription-based business model. This model focuses on providing services such as technical support, training, and consulting in addition to license sales, giving customers a comprehensive solution for their IT needs.
In October 2018, Red Hat announced that it would be acquired by IBM for $34 billion. This acquisition marked a significant milestone for both companies, with IBM looking to expand its cloud computing capabilities, and Red Hat benefiting from IBM's extensive resources and long-standing reputation in the industry.
Overall, Red Hat Inc. is a highly respected technology giant that has revolutionized how businesses operate using open source technologies, and continues to be at the forefront of the industry's technological advancements.
Segments
Red Hat Inc operates in multiple segments, each targeting specific areas of the IT landscape. These segments align with the companys emphasis on open-source solutions and the evolving needs of its customer base, which ranges from startups to large enterprises. The primary segments are:
1. Infrastructure-related Services:
- This segment focuses on providing foundational software and services essential for data storage, system management, and cloud infrastructure. It encompasses:
- Red Hat Enterprise Linux (RHEL): A leading Linux distribution known for its stability, scalability, and security. It caters to enterprises requiring a robust operating system for a variety of environments.
- Red Hat Virtualization: A comprehensive virtualization platform that enables businesses to efficiently manage their virtual environments, providing tools for management, deployment, and optimization of VMs.
- Red Hat OpenStack Platform: An open-source cloud platform that allows organizations to build and manage both public and private clouds, providing the flexibility to scale on-demand.
- Red Hat Storage (Gluster and Ceph): Offers software-defined storage solutions that allow customers to manage data in a scalable manner, integrating easily with cloud infrastructure.
2. Application Development and Deployment:
- This segment emphasizes tools and environments that support the development and deployment of innovative applications, focusing on agile methodologies and containerization:
- Red Hat OpenShift: A leading Kubernetes container platform that helps organizations automate the deployment, scaling, and management of containerized applications. It supports a variety of development paradigms.
- Red Hat JBoss Middleware: A suite of tools designed to facilitate application development, integration, and management. It includes application servers, messaging services, and business process management tools.
3. IT Automation and Management:
- This segment targets the automation of IT processes, facilitating efficient management of systems, applications, and infrastructure:
- Ansible by Red Hat: An open-source automation tool that allows for configuration management, application deployment, and task automation, streamlining operations across environments.
- CloudForms: A hybrid cloud management solution that provides visibility and control over clouds, both private and public, enabling users to manage resources more effectively.
- Red Hat Satellite: A systems management solution that helps organizations manage their systems and software life cycles, ensuring compliance and maximizing resource utilization.
Products
Red Hat offers a comprehensive suite of products tailored to various business needs, including:
1. Red Hat Enterprise Linux (RHEL):
- An industry-leading operating system designed for enterprise environments, providing enhanced security features, support for container technologies, and powerful performance optimization tools.
2. Red Hat Virtualization:
- A cost-effective virtualization platform that enables efficient management of both Windows and Linux workloads, allowing for robust infrastructure consolidation.
3. Red Hat OpenShift:
- A powerful platform that facilitates continuous integration and continuous deployment (CI/CD), streamlining the application lifecycle with integrated developer tools and built-in security.
4. Red Hat Storage:
- Offers a software-defined storage solution that is scalable and cost-effective, catering to the diverse needs of enterprises seeking to manage large volumes of unstructured data.
5. Red Hat JBoss Middleware:
- A suite of products that includes application servers, messaging solutions, and tools for microservices and cloud-native application architectures helping in swift application lifecycle management.
Services
Beyond products, Red Hat provides a range of professional services aimed at ensuring customer success:
1. Support Services:
- Comprehensive technical support that assists customers in troubleshooting, resolving issues quickly, and keeping their deployments running smoothly.
2. Consulting Services:
- Tailored consulting offerings that help organizations design and implement solutions that fit their specific needs, guiding them through best practices and optimal architectures.
3. Training Services:
- A wide array of training programs designed to advance the skills of IT professionals, covering topics from basic to advanced product use and open-source technologies.
4. Certification Services:
- Professional certification programs that validate the skills and knowledge of IT professionals who utilize Red Hat products, enhancing their credentials in the job market.
Through these diverse segments, an extensive suite of products, and dedicated services, Red Hat Inc positions itself as a leader in the open-source software landscape, driving innovation and efficiency across enterprises worldwide.
Red Hat Inc operates in multiple segments, each targeting specific areas of the IT landscape. These segments align with the companys emphasis on open-source solutions and the evolving needs of its customer base, which ranges from startups to large enterprises. The primary segments are:
1. Infrastructure-related Services:
- This segment focuses on providing foundational software and services essential for data storage, system management, and cloud infrastructure. It encompasses:
- Red Hat Enterprise Linux (RHEL): A leading Linux distribution known for its stability, scalability, and security. It caters to enterprises requiring a robust operating system for a variety of environments.
- Red Hat Virtualization: A comprehensive virtualization platform that enables businesses to efficiently manage their virtual environments, providing tools for management, deployment, and optimization of VMs.
- Red Hat OpenStack Platform: An open-source cloud platform that allows organizations to build and manage both public and private clouds, providing the flexibility to scale on-demand.
- Red Hat Storage (Gluster and Ceph): Offers software-defined storage solutions that allow customers to manage data in a scalable manner, integrating easily with cloud infrastructure.
2. Application Development and Deployment:
- This segment emphasizes tools and environments that support the development and deployment of innovative applications, focusing on agile methodologies and containerization:
- Red Hat OpenShift: A leading Kubernetes container platform that helps organizations automate the deployment, scaling, and management of containerized applications. It supports a variety of development paradigms.
- Red Hat JBoss Middleware: A suite of tools designed to facilitate application development, integration, and management. It includes application servers, messaging services, and business process management tools.
3. IT Automation and Management:
- This segment targets the automation of IT processes, facilitating efficient management of systems, applications, and infrastructure:
- Ansible by Red Hat: An open-source automation tool that allows for configuration management, application deployment, and task automation, streamlining operations across environments.
- CloudForms: A hybrid cloud management solution that provides visibility and control over clouds, both private and public, enabling users to manage resources more effectively.
- Red Hat Satellite: A systems management solution that helps organizations manage their systems and software life cycles, ensuring compliance and maximizing resource utilization.
Products
Red Hat offers a comprehensive suite of products tailored to various business needs, including:
1. Red Hat Enterprise Linux (RHEL):
- An industry-leading operating system designed for enterprise environments, providing enhanced security features, support for container technologies, and powerful performance optimization tools.
2. Red Hat Virtualization:
- A cost-effective virtualization platform that enables efficient management of both Windows and Linux workloads, allowing for robust infrastructure consolidation.
3. Red Hat OpenShift:
- A powerful platform that facilitates continuous integration and continuous deployment (CI/CD), streamlining the application lifecycle with integrated developer tools and built-in security.
4. Red Hat Storage:
- Offers a software-defined storage solution that is scalable and cost-effective, catering to the diverse needs of enterprises seeking to manage large volumes of unstructured data.
5. Red Hat JBoss Middleware:
- A suite of products that includes application servers, messaging solutions, and tools for microservices and cloud-native application architectures helping in swift application lifecycle management.
Services
Beyond products, Red Hat provides a range of professional services aimed at ensuring customer success:
1. Support Services:
- Comprehensive technical support that assists customers in troubleshooting, resolving issues quickly, and keeping their deployments running smoothly.
2. Consulting Services:
- Tailored consulting offerings that help organizations design and implement solutions that fit their specific needs, guiding them through best practices and optimal architectures.
3. Training Services:
- A wide array of training programs designed to advance the skills of IT professionals, covering topics from basic to advanced product use and open-source technologies.
4. Certification Services:
- Professional certification programs that validate the skills and knowledge of IT professionals who utilize Red Hat products, enhancing their credentials in the job market.
Through these diverse segments, an extensive suite of products, and dedicated services, Red Hat Inc positions itself as a leader in the open-source software landscape, driving innovation and efficiency across enterprises worldwide.