Click here to close now.





















Welcome!

Server Monitoring Authors: Carmen Gonzalez, Elizabeth White, Yeshim Deniz, Liz McMillan, Jnan Dash

Related Topics: Server Monitoring, Open Source Cloud

Server Monitoring: Article

Red Hat Escapes Penny Ghetto

Red Hat Escapes Penny Ghetto

Red Hat's net income rose sharply to $4.1 million, or two cents a share, on revenues of $33.1 million in its third fiscal quarter ended November 30. It's the second time in a row its EPS has been more than a penny. It thinks it'll hit three cents this quarter.

Q3 revenues rose 15% sequentially and 36% year-over-year.

This time last year, Red Hat earned $214,000, breakeven per share, on revenues of $24.3 million.

The company said annual subscriptions of its Enterprise family increased sequentially by 7,000 subscriptions, or 27%, to about 33,000 subscriptions, equally divided between ES and WS.

Renewal rates are said to have been about 90% for the second consecutive quarter. Deferred revenue rose 40% sequentially to $42.3 million.

Red Hat said gross margins remained strong, with blended gross margins at 72%, and gross margins on Enterprise subscriptions remaining constant at 88%.

"The subscription revenue model has developed sufficient maturity to enable us to drive consistent sequential increases in quarterly revenue," said Red Hat CFO Kevin Thompson. International is contributing a larger piece of the pie, kicking in $10.7 million in Q3; retail only accounted for $3.7 million and embedded $500k in revenues. Indirect sales accounted for 69% across-the-board, close to Red Hat's 70% ideal.

The company ended the quarter with $329 million in the bank, up $22 million from the prior quarter and a year-over-year increase of $42 million.

It preens that it thinks it'll do 40,000 net new units this quarter and earning between $5.5 million and $5.7 million on revenues of $36.2 million-$35.7 million. It seems it's no longer dependent on making one big killing a quarter. It also looks like it's resigned to the client gaining in importance. It's blowing Novell, which is buying SUSE, off as "proprietary."

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
Disruption in the communications ecosystem is creating a market opportunity for Cloud Real-Time Communications (RTC) platforms. We expect this market to represent a $4.5 billion opportunity by 2018. Cloud RTC Platforms are cloud services that enable mobile and web developers to integrate communications into their applications with just a few lines of code. Via REST APIs and SDKs Cloud RTC Platforms enable developers to easily integrate voice, messaging and video calling into mobile and web applications supporting more contextual conversations. These tools have the potential to change in how we...
Contextual Analytics of various threat data provides a deeper understanding of a given threat and enables identification of unknown threat vectors. In his session at @ThingsExpo, David Dufour, Head of Security Architecture, IoT, Webroot, Inc., will discuss how through the use of Big Data analytics and deep data correlation across different threat types, it is possible to gain a better understanding of where, how and to what level of danger a malicious actor poses to an organization, and to determine the measures to implement to prevent future occurrences.
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
SYS-CON Events announced today that Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, will keynote at the 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. His keynote "How We Built and Scaled an IoT Platform and Business" will focus on building an IoT platform and company. He will provide a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Bsquare's Director of Products, Dave McCarthy, will deliver a presentation from the main stage of the fourth annual @ThingsExpo, addressing the audience of IoT and cloud executives, vendors, media and analysts on "The Business Case for IoT." Bsquare will also demonstrate how its business-oriented IoT platform, DataVTM, adds intelligence and connectivity to remote corporate assets, and then utilizes the data generated to improve business outcomes such as uptime, asset utilization, warranty and maintenance cost reduction, and business and regulatory compliance.
DevOps is a software development method that places emphasis on communications between Software Engineering, Quality Assurance and IT Operations (SEQAITO ) with the goal to produce software and services to improve, increase the operational performance for the Enterprise. Communications is key not only between the SEQAITO team members but also the communication between the applications and the SEQAITO team. How can an organization provide the human communication and the application communication to the SEQAITO team to ensure the successful development, deployment of the application?
SYS-CON Events announced today that Vitria will exhibit, conduct a demo theater presentation, and CTO Dale Skeen will deliver a technical session at @ThingsExpo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Vitria is a leading provider of advanced analytics platforms that enable businesses to transform their operations and boost revenue growth through Faster Analytics, Smarter Actions, and Better Outcomes Faster.
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace.
Join IBM Bluemix on November 4 at 17th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to jump start your IoT strategy with MobileFirst, cloud and cognitive computing. Transform everyday MobileFirst Cloud Apps into IoT solutions in 2.5 seconds! What happens when you combine a SmartPhone, a watch and a sassy robot with one MobileFirst Application? What happens when Watson does it - on Cloud!?! Join this session to see IOT in action! There are over nine billion Internet of Things devices in the world today, and the number is growing. Move your MobileFirst Appde...
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. O'Reilly spreads the knowledge of innovators through its technology books, online services, research, and tech conferences. An active participant in the technology community, O'Reilly has a long history of advocacy, meme-making, and evangelism.
In his session at @ThingsExpo, Ivan R. Judson, Senior Engineer at Microsoft, will explore AllJoyn, an application level protocol for the Internet of Things supported by Microsoft and other members of the AllSeen Alliance. He will present the Cordova plugin that enables Cordova-based applications to talk to AllJoyn-enabled devices and present open source clients for the Lifx light bulb, LG television, and a mobile chat application.
Internet ready devices are becoming increasingly common, yet architecturally they often still act like point-to-point networks. Meanwhile, containers are making rapid deployments across networks painless, but knowing where and when to deploy them to meet market demand is just as critical. In his session at 17th Cloud Expo, Matt Torrisi, Customer Success Operations at Dyn, will discuss what the public internet in the middle really looks like, and how operators can build their networks for better performance and security.
SYS-CON Events announced today that Sensorberg will exhibit at 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Since 2013, Sensorberg GmbH, based in Berlin, has provided a beacon-based, platform-independent, all-in-one proximity campaign solution. The Sensorberg cloud-based management platform is the company’s core and enables proximity campaigns to be planned, designed and managed. Sensorberg provides open source SDKs (software-development kits) that can be incorporated into any app, rendering it beacon-compatible, and su...
Those in the industry have been working hard to sweeten the deal again - efforts have been made to bring WebRTC into the mainstream and as a result the technology is experiencing a rebirth. Thanks to those who have remained dedicated to improving the situation for those around them, WebRTC is finally starting to fulfill the original expectations that were had of it. Both the technology and the support networks have been built up to make experimenting with it again a pleasure, not a pain. WebRTC has grown up.