UPDATED 16:32 EDT / MAY 08 2017

APPS

‘Slow-burn’ growth model proves a successful strategy for Red Hat, analyst says

Red Hat Inc. has famously bucked the well-known Silicon Valley trend of tech companies that go from fast burn to fast burn-out.

“Linux is one of those slow-burn growth [areas],” said Stu Miniman (@stu) (pictured, center), explaining that Red Hat has seen measured, steady growth over the past 15 years, and it’s put it in a great position in the industry, with 50 consecutive quarters of revenue growth.

During Red Hat Summit last week in Boston, Massachusetts, Miniman, Dave Vellante (@dvellante) (pictured, left) and Rebecca Knight (@knightrm) (pictured, right), co-hosts of theCUBE, SiliconANGLE Media’s mobile live streaming studio, convened to discuss Red Hat’s business drivers and how the new AWS and Red Hat partnership will affect not only those companies, but the industry as a whole. (* Disclosure below.)

New tools, new capabilities

“Red Hat has a number of tailwinds, and one of them is a subscription business,” Vellante said. This is a trend that Red Hat has been following for years. Today, Oracle Corp. and IBM Corp. are in the process of shifting from upfront, perpetual licensing to a subscription model as well, he added.

The lift-and-shift movement has swung back to popularity, Miniman pointed out, adding that Red Hat has the tools — OpenShift, Ansible and JBoss — for organizations to take their legacy applications and move them into more modern and useful configurations.

The latest AWS/Red Hat partnership extends the power of the public cloud to hybrid and private clouds via OpenShift. It will open up many of AWS’ tools to allow developers to build container-based apps on-prem, as well as in AWS, theCUBE hosts pointed out. Additionally, organizations can use the OpenShift container platform to extend applications with many of AWS’ tools and services.

“I think this is the number one thing we’re going to be talking about leaving the show,” Miniman concluded.

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s independent editorial coverage of Red Hat Summit 2017. (* Disclosure: Red Hat Inc. sponsored this Red Hat Summit segment on SiliconANGLE Media’s theCUBE. Neither Red Hat nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE

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