A good future for open source Healthcare: Open Source’s First $1 Billion Baby is born

Red Hat Becomes Open Source’s First $1 Billion Baby


This bodes well for the open-source healthcare platform, OSEHRA,  and a new business model for Healthcare IT.   OSEHRA has the potential to save U.S.  government and private hospitals billions of dollars in IT costs, provided it stays true to its mission:  assuring the entiriety of its codebase remains open source and available for the community to develop - just as Red Hat has done. 

The 17-year-old Raleigh, North Carolina software vendor, Red Hat,  is set to release its fiscal 2012 earnings numbers on Wednesday, and if things go as planned, it should bump past $1 billion in annual revenue.

That would mark the first time that any open-source company has cracked the $1 billion barrier — something that must have seemed pretty close to impossible back in 1993 when Red Hat’s first CEO, Bob Young, decided to make a go of AAC Corporation, as Red Hat was originally called. At the time, the company was as much a bookseller as a Linux company.

Other companies have made big money selling Linux — Intel, IBM, Dell, and others have used it as a way to sell hardware and support services — but Red Hat has managed the tricky business of building a software platform that big businesses will pay for. Corporate types like Red Hat Linux because it’s certified to run a lot of the business applications that they use. That means that when they call up Oracle or SAP for tech support, they don’t get the run-around.

There are countless open source software projects under development. Few of them are hits, and even fewer are commercial successes, says Walter Pritchard, a financial analyst with Citigroup. “You kind of have to be in the right place at the right time.”

Because Red Hat sells annual subscriptions to its Linux products and then books that revenue gradually over the course of the year, its earnings tend to be pretty predictable. Pritchard expects Red Hat to report $1 billion in annual revenue on Wednesday when it announces earnings after the close of the market. But he’s hard-pressed to think of other open source companies that come even close. So are we.


Full story:   http://www.wired.com/wiredenterprise/2012/03/red-hat/





Ubuntu Is Spanking Red Hat, Says Ubuntu Founder

Mark Shuttleworth says his Ubuntu Linux distro has now overtaken arch rival Red Hat when it comes to running the all-important “enterprise workloads” — i.e., the heavy software lifting done by big businesses.


With a blog post on Wednesday, the founder of Ubuntu and its commercial steward, Canonical, cited numbers from web market research firm W3Techs indicating that Ubuntu is now more widely used than Red Hat Enterprise Linux to serve up public web services, and he argues that the same thing must be going on in servers hidden from the public. “The trend is even starker if you look at what we know of new-style services, like clouds and big data, but since most of that happens behind the firewall its all anecdata, while web services are a public affair,” he says.

Also published on Wednesday, W3Tech’s data shows that Ubuntu passed RHEL in June of 2011 on public web sites and hasn’t really looked back. According to the data, Ubuntu is now used by 18.4 percent of public web services while RHEL is used by 12.2 percent.

Full story: