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Red Hat
and the Open Source Business Model




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



   1993 – 2003 Red Hat Linux
   2003 – 2008 Red Hat Enterprise Linux




                                           2
Red Hat Technology




                     3
Red Hat Development Model
   Collaboration with partners and open source contributors to
    develop technology
   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
   Software selection model
    ●   Fedora may potentially contain unstable technology, no
        testing
    ●   RHEL includes _only_ mature technologies
   Release cycle
    ●   Fedora: new version - every 6 months; updated - ~ 1 year
    ●   RHEL: new versio – every 18-24 months; updated - ~ 7 years
   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
   Support model
    ●   Fedora: Internet forums. Volunteers, no guarantees.
    ●   RHEL: World biggest open-source software company
   ISV/IHV certifications
    ●   Fedora: none.
    ●   RHEL: Thousands of applications from major ISVs. Hundreds
        of certified HW systems from leading OEMs.
   Every product is good for a particular customer:
    ●   Fedora: IT-enthusiast, home users
    ●   RHEL: Corporate users.




                                                                    6
Certification Ecosystem
   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
   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
   Subscription – one price, all included
    ●   Product & documentation
    ●   Updates
    ●   Upgrades
    ●   Access to Red Hat Network
    ●   Ecosystem access
    ●   Technical Support


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




                                                                     9
Success stories
City of Vienna


   Starting in 1994 with FreeBSD
   Switching to RedHat 7.0 on Compaq/HP Proliant in 2000
   Now: ca. 350 servers in production with RedHat EL 4.0
   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


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




                                                  12
WiiFM & ACME


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



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


                                                   13
Mo' ney?


   Consultancy
   Implementation
   Customization
   Feature request
   Subscriptions
   Support
   Documentation
   Training



Think before you act!


                        14
Red Hat

   Visit http://redhat.sns.ro for information in Romanian and a
    biweekly newsletter
   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  1993 – 2003 Red Hat Linux  2003 – 2008 Red Hat Enterprise Linux 2
  • 4. Red Hat Development Model  Collaboration with partners and open source contributors to develop technology  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  Software selection model ● Fedora may potentially contain unstable technology, no testing ● RHEL includes _only_ mature technologies  Release cycle ● Fedora: new version - every 6 months; updated - ~ 1 year ● RHEL: new versio – every 18-24 months; updated - ~ 7 years  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  Support model ● Fedora: Internet forums. Volunteers, no guarantees. ● RHEL: World biggest open-source software company  ISV/IHV certifications ● Fedora: none. ● RHEL: Thousands of applications from major ISVs. Hundreds of certified HW systems from leading OEMs.  Every product is good for a particular customer: ● Fedora: IT-enthusiast, home users ● RHEL: Corporate users. 6
  • 7. Certification Ecosystem  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  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  Subscription – one price, all included ● Product & documentation ● Updates ● Upgrades ● Access to Red Hat Network ● Ecosystem access ● Technical Support  Services, available ● Training and Certification ● RHCE - #1 Hottest IT certification '06 (cetrcities.com) 9
  • 11. City of Vienna  Starting in 1994 with FreeBSD  Switching to RedHat 7.0 on Compaq/HP Proliant in 2000  Now: ca. 350 servers in production with RedHat EL 4.0  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  Project Copernicus, full SOA implementation  55M citizens + 3M companies  100K employees  4000 Linux servers  Built & developed on Linux/FLOSS  Lower TCP (75-90%)  Built on JBoss 12
  • 13. WiiFM & ACME What's In In For Me? (WiiFM)  Lower TCO  Increased ROI (+ buzzword compliance)  Freedom American Company Manufacturing Everything (ACME)  Brings in value  Can be easily Integrated  Standard compliant  As expected 13
  • 14. Mo' ney?  Consultancy  Implementation  Customization  Feature request  Subscriptions  Support  Documentation  Training Think before you act! 14
  • 15. Red Hat  Visit http://redhat.sns.ro for information in Romanian and a biweekly newsletter  Visit http://redhat.com for everything else ;-) Dragos MANAC dragos@sns.ro 15