Red Hat Inc. is a very interesting company. Founded in 1993, it has become the l

Question

Red Hat Inc. is a very interesting company. Founded in 1993, it has become the leading provider of open source solutions and has been named the number one Enterprise Software Vendor for four consecutive years over companies like Citrix Systems, Adobe, and Microsoft. That is an amazing accomplishment for a young company. Visit their website at Red Hat (http://www.redhat.com/) and find information to answer the following questions. You can use other sources too.

Is the company sufficiently profitable to validate its business model and strategy?

Is its revenue stream from selling, training, consulting, and engineering services growing or declining as a percentage of total revenues?

Does your review of the company’s recent financial performance suggest that its business model and strategy are changing?

Explanation / Answer

1) Yes, it is free down loadable software business model, it is another option for window operating system. The company earning sufficiently increasing in august quarter 2015.

2)Red Hat Inc total revenue has raised from software selling and its subscriptions 70 to 78 %of their total revenue. Training, consulting, and engineering services revenue has only to 22 to 28% of their total revenue, but it seems to growing year to year, because earlier its contibutions 15 % now it rose up to 22 to 28%.

3)yes, business model has changed. In 2014, they have choose business model as cloud mobile. It is considered to be more useful for organization in future.

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