(Photo: Red Hat CEO Jim Whitehurst)
Today, there are many startups supported by venture capital investors have begun to look to the open source software market, such as Cloudera, MongoDB and Docker, etc., have claimed that their market value reached 1 billion US dollars. However, they all feel pressure on the same issue: How do you make profits through free and open source software?
In fact, there are some answers to how to make money here, such as selling open-source code, providing paid services, and so on. Now, the answer to this question has finally been confirmed. The “first crab†company proved through practical actions that it is possible to make money through free open source software. That's right, this is Red Hat, North Carolina, USA, the world's most famous open source company. In the 2016 fiscal year, Red Hat’s revenue exceeded US$2 billion for the first time, and it has been maintaining growth for 16 consecutive years.
Founded in 1993, Red Hat is an open source solutions provider that provides mission-critical software and services for operating systems, storage, middleware, virtualization, and cloud computing. In simple terms, it is the productization of projects in the open source community that will make it easier for ordinary corporate customers to consume open source innovations. The free Linux operating system it provides has become the most widely used type of UNIX operating system in the world today, and the number of users is still growing rapidly.
Big data, cloud computingTo say why Red Hat is so successful, it must start with its business model. Since its inception, Red Hat has adopted an open source model to provide companies with expertise and services. Red Hat shares the system source code with qualified users, and these users can use it for free and customize Red Hat's products, but they need to pay a certain service fee.
Red Hat calls its charging model "subscription model". Regardless of whether or not new and old customers can enjoy these services for free during the subscription period, users do not need to purchase upgrades again. They can be updated at any time according to the needs of users. Charges are also relatively transparent and fair.
In addition, with the development of cloud technology and big data, Red Hat, which has open source software as its core business, sees new opportunities. For Red Hat, the most important profit secret lies in how to compile Linux code and record detailed log data. The index is created based on the raw log data, and the original log content is also saved while saving the index. In the era of big data, a wide variety of logs can quickly analyze and find what you need. In this way, each company can download Red Hat's code and then customize it according to their own needs.
As an open source software vendor, Red Hat originally had nothing to do with storage. After all, storage has always been a matter of hardware. However, with the advent of software-defined era, this situation has fundamentally changed. Whitehurst said at the Red Hat Summit last week that Red Hat's storage is distributed enterprise storage and has undergone extensive verification. Users can perform expansion services such as object storage and file storage according to their own needs. Based on the rise of Ceph technology architecture, Ceph can make the technical architecture more transparent and make all possible technical problems more transparent. Ceph can manage and monitor the data center in a visual way.
Red Hat mode can be copiedThe success of Red Hat proves that "open source is a good deal." The pattern of commercial open source software is not difficult to understand. It is to screen, integrate, and optimize open source code, and then it will be engineered, systemized, serviced, and commercialized.
Although Red Hat CEO Jim Whitehurst has proved that he can make money through free open source software, he is skeptical that Red Hat's model can be copied. For businesses, products using open source Linux need to look at themselves. If you plan to use open source Linux, you need to consider your own technical capabilities from the beginning. If you are confident in your own technology, you can use it with confidence. This will not involve legal issues. And if you can't settle on open source Linux, then at the very beginning, you'll still pay for it, so you don't need to spend on advanced operations personnel, and you also indirectly support open source Linux developers.
“People always choose the free ones for things that cost money and things that don’t need to be spent. And you have to admit that companies that can adapt to this market rule at the earliest and can provide free services in the early stages are At the front of the market, they are working hard for you."
Whitehurst said that when you provide free services, you have already got this group of users. If you want to take money from their pocket later, this is not so difficult; and those who have not yet occupied it in the beginning The first enterprise has already lost this group of users.
Of course, Whitehurst is not pessimistic about the development of all start-up open source companies. Like MongoDB, Whitehurst agrees with its business model, although he admits that MongoDB needs to do a better job of separating paid versions from free versions.
How to make "hard" profits made through "soft" technology become the mainstream of the market, this is the key to the problem, and the Linux desktop still does not get the essence of it. Whitehurst admits that building a lasting business model around consumer Linux desktops is still difficult.
Frankly speaking, the Linux desktop is not our core business. As a company, profitability should be the top priority. As far as the consumption of Linux desktops is concerned, its market development is much more difficult than that of servers.
In the age of internet big data, the way to create value is changing. The innovation that information technology brings to production cannot be underestimated, and this information technology innovation should be open rather than closed, because the value of information technology lies in openness and sharing. This is where the value of open source software lies. It is a “crowdfunding†of group wisdom. Openness, sharing, collaboration and ecology are the core spirit of open source and are in line with the spirit of the Internet.
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