Feeds

Red Hat CEO deaf to VMware's giant sucking sound

They make how much money?

High performance access to file storage

Summit Red Hat's CEO Matt Szulik bombed us into a state of confusion today with some curious statements around the server virtualization market.

First off, Szulik admitted to keeping a not so watchful eye on server virtualization leader VMware. During an interview session with reporters, we pointed out that VMware brings in more money these days than Red Hat. For example, VMware reported $704m in revenue during its last fiscal year versus just $401m for Red Hat. VMware grew revenue at almost 100 per cent year-over-year, while Red Hat grew revenue 44 per cent.

"I have never heard that statistic before that they are making more money (than we are)," Szulik said.

Such a comment caught us by surprise since VMware has been making more money than Red Hat per quarter for quite some time and since the two companies have such close ties. After all, VMware makes most of its money by allowing customers to run more than one copy of Red Hat per physical server. Apparently, that's a much healthier business to be in that actually producing and servicing the Red Hat operating system.

Despite keeping only a wandering eye on VMware, Szulik felt secure enough to warn that Red Hat is very focused on the server virtualization market.

"We think it is very early in the game," he said.

The CEO pointed to figures which claim that only seven to eight per cent of companies have started using server virtualization software so far.

This leaves room for Red Hat to concentrate on customers who "want to move entire workloads" instead of mimicking VMware's "box-by-box" virtualization strategy. While not specific, Szulik seemed to hint that Red Hat will produce software for sending out and managing applications across large numbers of servers.

A number of start-ups do this today and, in fact, so does VMware to an extent. And we're still not clear if Red Hat plans to develop such software internally or if it will rely on partners like XenSource to do the dirty work. Heck, it might even acquire a smaller player, although Szulik dodged our question on that front.

Szulik, however, didn't shy from some database questions.

He delivered a flat "no" when asked if Red Hat and Oracle have discussed a possible acquisition in the last 6 months. Szulik instead suggested that reporters should spend less time worrying about Oracle's effect on Red Hat's business and more time wondering what Red Hat might do to Oracle's database business. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.