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Red Hat Wins Big with OpenShift in 3Q17
Red Hat reported its third quarter fiscal 2017 revenue on December 21, showing growing strength in the company's OpenShift product line.
For the quarter, Red Hat reported revenue of $615 million, for an 18 percent year-over-year gain. Net income was reported at $68 million, up from the $47 million Red Hat reported for the third quarter of fiscal 2016.
Looking forward, Red Hat provided guidance for fourth quarter revenue to be in the range of $614 million to $622 million.
"We closed many large deals, including some of the largest deals in Red Hat’s history, with strong cross-selling and longer term commitments from our customers," Jim Whitehurst, Red Hat's CEO, said during his company's earnings call.
Whitehurst noted that of the top 25 customer renewals up for renewal in the third quarter, all 25 renewed. And the top 25 renewals did so at more than 120 percent of their prior annual commitment.
Cloud-Enabling Technologies Continue to Drive Growth
While Red Hat's core Linux platform business is the foundation of the company's portfolio, cloud technologies are now helping to lead the way forward.
"We continue to see momentum with customers and community around our cloud-enabling technologies, including OpenStack, OpenShift, CloudForms and related offerings that our customers are using to build hybrid clouds," Whitehurst said. "Within our top 30 deals, seven included Red Hat OpenStack platform, five included OpenShift and five included storage."
Whitehurst noted Red Hat added "hundreds" of customer wins across its hybrid cloud portfolio, including several OpenStack deals that were over $1 million.
"Of note, we closed our second OpenShift deal over $10 million and another OpenShift deal over $5 million," Whitehurst said.
OpenShift has undergone a dramatic shift over the last two years, moving from a platform-as-a-service (PaaS) approach to becoming a Kubernetes distribution that enables containers-as-a-service (CaaS), starting with the OpenShift 3.0 release in 2015.
"Significantly, we actually had over 50 OpenShift deals alone that were six or seven figures, so really strong traction," Whitehurst said. "And obviously, that many deals is going to cut across a lot of the sectors."
Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist
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