Strong performance for cloud and container products leads to a 14% increase over last year.
Red Hat has evolved beyond its original role as a Linux vendor and is now positioned as a cloud player that offers complete solutions to enterprise customers. The company has been expanding its product portfolio to help customers embark on their cloud native and digital transformation journey.
Red Hat’s aggressive repositioning is reflected in its revenue. The company earned the total revenue of $823 million, up 14% year-over-year, in the second quarter of the fiscal year 2019.
“The expansion of our technology portfolio has increased our strategic importance with customers, which is evidenced by the number of deals over five million dollars in the second quarter more than doubling year-over-year,” said Jim Whitehurst, President and Chief Executive Officer of Red Hat. “Customers continue to prioritize their digital transformation initiatives, and they are adopting Red Hat’s hybrid cloud enabling technologies to modernize their applications and drive greater efficiency and effectiveness in their business.”
Which technologies segments are growing within Red Hat is apparent from the breakout of the revenue. Subscription revenue remains the largest earnings at $527 million, but it registered a mere 8% in year-over-year growth. On the other hand, revenue from emerging technologies (read cloud and containers) was $196 million for over 31% year-over-year growth.
If Red Hat keeps up this pace, it might touch the $4 billion annual revenue mark in 2019.