Red Hat CEO Sees Open Source Opportunities in Financial Crisis
Red Hat president and CEO Jim Whitehurst sees opportunities for open source firms that might be putting undue burden on their dwindling IT departments because of the current economic downturn.
Whitehurst offered his views in a press conference in Munich. His conclusion in the video interview that followed: "When people look at alternatives, often Open Source wins." At the press conference, Jim Whitehurst, who has been head of Red Hat since January 2008, compared the current financial crisis with that of the dot-coms in 2000. The pressure toward austerity was the same back then as
now for Linux and the open source community. It was the first time IT chiefs especially in banking and insurance sensed the need to count costs.
While the era during which the dot-com bubble burst was primarily about a migration from Windows to Linux, nowadays also other levels of the software stack are affected, said Whitehurst. Without naming them, he mentioned examples such as insurance companies and others that are "in the deep blue", and describes them as conservative, "not the early adopter kind." Firms started replacing their proprietary application servers with Red Hat's open source JBoss. "There's always a layer in the stack where there's value in using open source", he said. The savings potential on the hardware side is not even an issue anymore, because many IT departments were already migrating from costly UNIX machines to x86 hardware. Also license fees are an issue only in the beginning, according to Whitehurst: "Let's be serious: Getting something in production isn't free. It's not only about licenses, although fortunately we win that battle, too."
Whitehurst's comments were not without a plug for Red Hat, considered by some the only currently profitable open source developer. The reason for its success may not only be its features, but its business model. Whitehurst explained that Red Hat doesn't just sell open source functionality, "We make money by making the operating system enterprise class," as he said. The added value for customers, he said, are the stable Red Hat Enterprise Linux (RHEL) releases that create robust APIs and open standard components for the IT of the future.
As for what's coming in 2009, Whitehurst promised further management and migration functions for KVM virtualization, as well as a new version of the Enterprise IPA identity management system for Linux. Additionally, RHEL 6 should be out by the end of 2009.
Subscribe to our Linux Newsletters
Find Linux and Open Source Jobs
Subscribe to our ADMIN Newsletters
Support Our Work
Linux Magazine content is made possible with support from readers like you. Please consider contributing when you’ve found an article to be beneficial.
News
-
First Release Candidate for Linux Kernel 6.14 Now Available
Linus Torvalds has officially released the first release candidate for kernel 6.14 and it includes over 500,000 lines of modified code, making for a small release.
-
System76 Refreshes Meerkat Mini PC
If you're looking for a small form factor PC powered by Linux, System76 has exactly what you need in the Meerkat mini PC.
-
Gnome 48 Alpha Ready for Testing
The latest Gnome desktop alpha is now available with plenty of new features and improvements.
-
Wine 10 Includes Plenty to Excite Users
With its latest release, Wine has the usual crop of bug fixes and improvements, along with some exciting new features.
-
Linux Kernel 6.13 Offers Improvements for AMD/Apple Users
The latest Linux kernel is now available, and it includes plenty of improvements, especially for those who use AMD or Apple-based systems.
-
Gnome 48 Debuts New Audio Player
To date, the audio player found within the Gnome desktop has been meh at best, but with the upcoming release that all changes.
-
Plasma 6.3 Ready for Public Beta Testing
Plasma 6.3 will ship with KDE Gear 24.12.1 and KDE Frameworks 6.10, along with some new and exciting features.
-
Budgie 10.10 Scheduled for Q1 2025 with a Surprising Desktop Update
If Budgie is your desktop environment of choice, 2025 is going to be a great year for you.
-
Firefox 134 Offers Improvements for Linux Version
Fans of Linux and Firefox rejoice, as there's a new version available that includes some handy updates.
-
Serpent OS Arrives with a New Alpha Release
After months of silence, Ikey Doherty has released a new alpha for his Serpent OS.