Red Hat became the first open source company to cross the USD 2 billion mark in revenue in 2016. In 2021, the market addressability of Red Hat's products will be USD 73 billion, which is almost a tenfold increase from 2005, spanning across OS, middleware, cloud and infrastructure management, PaaS, virtualization, storage, NFV, SDN, etc.
The pervasiveness of Red Hat is indicated by the fact that 100 percent of airlines, telecoms, healthcare companies and commercial banks in the Fortune Global 500 rely on Red Hat. To talk more about the Rat Hat and the open source space, IDG Media had an exclusive interaction with Neeraj Bhatia, Director - Channel and Partner Alliances, Red Hat India and South Asia.
The open source wave
When it comes to IT innovation, open source is one of the most valuable tools available today. Across all the business verticals, IT managers are hunting down new approaches to leverage the power of open source technologies, particularly as more organizations are migrating to the cloud. With collaboration from millions of developers across the globe, open source platforms are expected to assume a huge role in the oncoming wave of development in the tech world, according to Neeraj Bhatia.
"Huge innovation is coming out of open source projects. There are thousands of projects out there that are funded by open source foundations. All the technology buzzwords today - microservices, cloud, IaaS, PaaS, data analytics, Hadoop, etc. are outcomes of the innovation happening in the open source world. This is creating the ability to transform organizations,” says Bhatia.
Red Hat’s role in enterprise open source
Enterprises are looking at how they can trust the open source technology and create rapid integration with latest innovation into their IT setups. But, there are certain risks associated with open source, which can make it difficult for enterprise adoption. This is where Red Hat comes in - to make open source usable in the enterprise, says Bhatia.
“The GoI was quite an early adopter of open source with various projects such as GSTN, myGov and Aadhaar running on Red Hat. We have worked with GoI as a partner and a supporter in their quest for driving agility in citizen services.”
“What we do as Red Hat is that we put all of this together, stabilize it and make it ready for enterprise deployment. On its own, open source technology of the web is probably not the best thing for an enterprise to put in their environment because it is not clean and trusted. We make it a usable form of enterprise technology. Our customers get the technology which is secure, stable and reliable,” adds Bhatia.
Driving open source in India's public sector
Apart from the open source adoption in the enterprise, Red Hat is also playing an important role in bringing digital transformation to the Indian public sector industries. As part of the Digital India initiative, public sector entities such as the Indian Railways, Aadhaar, National Stock Exchange (NSE), GSTN, among others have adopted the Red Hat Enterprise Linux, and hopped onto the open source bandwagon.
"The Digital India momentum is running on a lot of open source technologies. The GoI was quite an early adopter of open source with various projects such as GSTN, myGov and Aadhaar running on Red Hat. We have worked with GoI as a partner and a supporter in their quest for driving agility in citizen services," mentions Bhatia.
Red Hat's emphasis on its partner ecosystem
Partners play a critical role in the success of Red Hat. In fact, 72 percent of the business is partner-led globally and in India; over 90 percent of Red Hat's business is supported by its partners, which include OEMs, cloud service providers, ISVs and channel partners.
"Partners are very critical for our reach and the ability of our customers to use our technology. So, we are consistently expanding partners. There are four routes in which we engage for this. One is the OEM route for the hardware. The second is the cloud and cloud service providers, which is a high-growth area for us. The third is independent software vendors (ISVs), whom we help create solutions on top of our technology, jointly package it and take it to our customers. Finally, there is the traditional reselling channel partners. And we are actively scouting for channel partners in the offerings we have,” he points out.