https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Open Source


$332 Million (Or More) Awaits Red Hat Partners

  • Written by The VAR Guy 1
  • July 9, 2008

So, how high will Red Hat’s partner sales climb this year? The VAR Guy spoke with Red Hat VP Mark Enzweiler on June 9, noted some facts and figures, and then did some quick math. Take a look at the results.

First, some background. Red Hat has stated that it expects to generate $665 million to $680 million in revenue this year. Also, Red Hat currently generates roughly 50 percent to 55 percent of its revenue from the channel. Enzweiler says he wants to push that figure closer to 60 percent. Now let’s do some quick math based on those variables.

  • Worst-case scenario:Partners will generate $332.5 million in Red Hat-centric sales this year (logic: $665 million x 50 percent of all Red Hat sales).
  • Middle-of-the-r0ad scenario: Partners will generate $368.5 million in Red Hat-centric sales this year (logic: $673.5 million x 55 percent of all Red Hat sales).
  • Best-case scenario: Partners will generate $408 million in Red Hat-centric sales this year (logic: $680 million x 60 percent of all Red Hat sales).

The key takeaway: Channel-related revenue continues to climb for VARs that focus on open source. And the dollar figures above only focus on Red Hat software and services. All those sales will surely require server hardware, databases, email systems, backup systems and a host of other add-ons.

Translation: Red Hat-driven solutions are likely a multi-billion channel opportunity now.

Don’t Forget JBoss

Enzweiler says Red Hat is signing up roughly 8 to 10 new Advanced Business Partners per quarter. But this is more than a Linux story, folks. Roughly 40 of Red Hat’s top Advanced Business Partners now sell JBoss middleware solutions, and 29 of those partners focus primarily on JBoss and have yet to take the Red Hat Linux plunge, Enzweiler estimates.

Another key stat: The recent Red Hat Summit in Boston attracted 3.5 to 4 times as many partners when compared to the 2007 summit.

So, overall things sound good at Red Hat. But The VAR Guy can’t close this blog without pointing out a a key challenge. Truly dominant companies (examples: Cisco Systems, Microsoft) generate 80 percent and even 90-plus percent of their revenue through partners. At a 50 percent to 60 percent range, Red Hat may never really shake its addiction to a direct sales force.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Open Source

Related


  • Reinvent
    Centreon Partners Get Access to Reinvented Partner Program
    Centreon is actively recruiting VARs and SIs in EMEA, the Americas and Asia Pacific.
  • cloud data
    Your Cloud Data Is Protected, But Is It Portable?
    Why flexibility and containerization are the new must-haves for cloud data.
  • Cloud security
    Rapid7 Acquires Kubernetes Security Provider Alcide to Increase Cloud Security
    This is Rapid7's second cloud security acquisition in the past nine months.
  • Risk level
    Wipro: Why an Open Source Software Risk Assessment Is Critical
    The Wipro service helps customers mitigate the security risks of open source software.

4 comments

  1. Avatar JP July 10, 2008 @ 5:31 pm
    Reply

    Math? RH has a limited direct sales force. The “channel” in this case is not VARs it’s the Dell’s (they generated 30% of RH revenue in the past few years) and the CDW’s. The traditional VAR resells a spitball amount compared to the nationals.

    The numbers are out there…re-do your math.

  2. Avatar The VAR Guy July 10, 2008 @ 9:43 pm
    Reply

    JP: So, I assume you’d offer the same math for MSFT, which generates a TON of its revenue thru PC preloads rather than true VARs?

  3. Avatar Scott July 11, 2008 @ 6:42 am
    Reply

    VAR guy, let me put you on the spot, if I may.

    What is your take on Red Hat’s new CEO, Jim Whitehurst?

    I read an article about him (I follow the slashdot links from time to time!) taking over with little interest. Yet another CEO swapping industries *yawn*. Until I got to the part where they mentioned he used to hack around with Slackware. “Now you’ve got my attention!”

    I watched Jim Whitehurst give his Keynote speech and I was amazed. His message was clear, given with confidence, and had very little “corporate speak”; I’m not only convinced that he knows what he’s talking about, but I really think he understands the ‘why’ of the Red Hat business model. Either that, or he’s a world class actor with an uncanny ability to use tech nouns and verbs correctly. But my vote is for the former rather than the latter.

    Your thoughts?

  4. Avatar The VAR Guy July 11, 2008 @ 1:18 pm
    Reply

    Scott: The VAR Guy doesn’t know Whitehurst. But he generally respects the Red Hat management team. Particularly Michael Tiemann, VP, open source affairs. Fantastic evangelist and public speaker.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • AWS Still Chasing JEDI, Blasts Trump Administration Again
  • Dell Technologies Expands PowerProtect Portfolio, Embraces Data Protection Priorities
  • Judge: AWS Does Not Have to Reinstate Parler
  • Cisco to Buy Banzai Cloud, Its Latest Overseas Acquisition

Galleries

View all

Threat Protection Vendors: Why MSSPs Have to Ramp Up Efforts Right Now

February 23, 2021

Industry Perspectives

View all

Three Ways MSPs Can Improve Supply Chain Security

February 24, 2021

SASE: The Key to Mitigating Business Transformation Risk

February 22, 2021

Public Sector IT Funding Outlook for 2021–and What It Means for Our Reseller Partners

February 18, 2021

Webinars

View all

XDR and Why it Matters to MSPs

March 24, 2021

Top Security Trends Impacting Technology Security Providers In 2021

March 25, 2021

In Case of Emergency: The Importance of Proactive Critical Event Management

February 23, 2021
  • 1

White Papers

View all

Kaspersky Endpoint Detection and Response Optimum

February 19, 2021

Product Brief: Kaseya VSA Integrated Workflows with BMS and IT Glue

January 26, 2021

Why Subscription Business Model

January 15, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

.@BlackBerry report shows rise in hacker-for-hire groups targeting #MSSPs. dlvr.it/RtQjD9 https://t.co/VYr5cEXCCm

February 25, 2021
ChannelFutures

.@PTsecurity_UK discovers #vulnerabilities in @VMware vCenter server. dlvr.it/RtQjD5 https://t.co/WQbn5SJdFL

February 25, 2021
ChannelFutures

Take #supplychainsecurity to the next level. @Sophos #MSP #MSSP #ransomware #cybersecurity #managedservice… twitter.com/i/web/status/1…

February 25, 2021
ChannelFutures

[email protected]_inc rolls out first partner program. #securityanalytics dlvr.it/RtQhlW https://t.co/c1Xhxaf3qr

February 25, 2021
ChannelFutures

.@AteraCloud receives $25 million investment to help more #MSPs, IT pros. dlvr.it/RtPbBG https://t.co/UxHqhrUKgx

February 24, 2021
ChannelFutures

.@Infoblox rolls out new #Cloud Specialization program to increase partners' #SaaS sales. dlvr.it/RtPb7f https://t.co/CmZTwYiv1u

February 24, 2021
ChannelFutures

RT @Channel_Expo: ⏱️ Time is ticking to save on your pass to #CPVirtual next week...View all pass options and secure your virtual seat by F…

February 24, 2021
ChannelFutures

The new @Commvault #EMEA channel exec will focus attention on alliances, cloud and simplifying and expanding partne… twitter.com/i/web/status/1…

February 24, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X