The last time journalist Ron Miller had a chat with Jim Whitehurst, CEO Red Hat Inc., Jim had just gone about setting up the most audacious target for his company, which was to achieve 5 billion USD in sales revenue.
It was in June 2016 when Jim made this announcement, which made the target look extremely farfetched. His company Red Hat Inc. had just become the first open source platform based firm to achieve two billion USD in sales revenue. In the same chat, Jim had also mentioned that the bigger the company is in size, the harder it would be to keep the growth trajectory up. Red Hat hasn’t yet experienced a slowdown, but this certainly would be an area of challenge the bosses would be keeping an eye out for.
Well, whatever it is that the top management at Red Hat is doing certainly seems to working for them at the moment, with the expansion on and sales revenue projected to touch three billion USD in a few quarters. Red Hat grabbed the spotlight with the release of its own Linux meant specifically for the enterprise. With changing times, Red Hat has gotten into the Cloud and Containers field as well but its primary revenue is from the former.
The company has been thriving and is on its way to cross the 3 Billion USD milestone soon; within the next two to three quarters even in the worst case scenario.
Cloud and containers both are built on Linux which is Red Hat’s forte. Capitalising on Red Hat’s forte, Whitehurst states that Red Hat’s legacy business, RHEL (Red Hat Enterprise Linux) is growing at en extremely healthy pace which is fourteen percent.
This growth of fourteen percent is not of primary concern though. The forty percent growth that the cloud and container business is what is pulling the headlines. This forty percent gangbuster growths what Whitehurst is banking to breach that give billion USD barrier that he’s set himself and the company. The most recent earnings report of the company state an extremely healthy consolidated twenty one percent revenue growth which equates to seven hundred and twenty three million USD for the quarter gone by. The revenue for the quarter gone by was finalized at 2.8 billion USD by the company. Investors are all smiles with the stock price going through the roof recording new highs. The share price has moved from a low of 68.71 USD from December 2016 to the levels of 121 USD per day at the present times. Quite a handsome return for even the venture capitalists.
Whitehurst believes that his early bet on Kubernetes is going to pay off handsomely in the future compared to the levels that it has already attained. Kubernetes is an open source container orchestration tool originally developed at Google. With more and more firms moving or taking the compartmentalization route Kubernetes is paying out massive dividends for Red Hat. Whitehurst often jokes that Red Hat should have included Kubernetes in the naming of OpenShift which would have made it even more famous than it is at the moment.