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The power of paying it forward: Red Hat in Malaysia

AvantiKumar | May 14, 2014
Red Hat scores another excellent fiscal year of growth of more than 15% YoY globally, said Red Hat's Damien Wong and David Yap.

Red Hat Media Briefing -mod 

Photo - (From left ) Damien Wong, Senior Director and General Manager, ASEAN, Red Hat and David Yap, Country Manager for Red Hat Malaysia at Red Hat's 2014 Business Update Media Briefing in Kuala Lumpur. 

 

The open source philosophy of collaboration - of 'paying it forward' - is one of the main contributors to Red Hat's continued global and Malaysian financial growth, according to the US headquartered open source solutions giant.

Speaking in Kuala Lumpur, Red Hat ASEAN's senior director & general manager, Damien Wong said, "The company saw another year of excellent growth during the last fiscal year [FY14] ending 28 February 2014, and we have reinforced our position is the world leader in open source solutions and open standards development."

"In addition, we saw many significant product milestones during the last fiscal year," said Wong, which includes:

- Red Hat Enterprise Linux Beta (RHEL)
- Red Hat Enterprise Linux OpenStack Platform 4.0
- Red Hat JBoss Data Grid 6.2
- Red Hat JBoss Enterprise Application Platform 6.2
- Red Hat Enterprise Virtualisation 3.3
- Red Hat Cloud Infrastructure
 
"All these moves are driven by open source philosophy, which has helped us to push the envelope," he said. "The company has no debts and the year end revenue of US$1.53 billion is up 15 percent year-on-year, and builds on a record consecutive growth over 44 quarters [11 years]."

In addition, Red Hat recorded a Q4 net income of US$45 million, or 24 cents per share). Those results are better than estimates not to mention earnings during the year-ago quarter, said Wong.

"Subscription figures were also growing by 16 percent annually across the board," he said. "Final subscription revenue total o $351 million for the fourth quarter and then US$1.34 billion for the year."

"The numbers tell the story of a robust demand for Red Hat solutions by organisations across different sectors in Malaysia, Asia and around the world," he said.

"Red Hat is also the number one contributor to last two OpenStack releases Grizzly, Havana," said Wong, as well as being heavily involved in the latest release in development, IceHouse. "Open Stack now has more than 2,000 members with more than 3,000 downloads per day."

"We are trying to help customers achieve open hybrid clouds," said Wong. "In this region, our customers include YTL in Malaysia, Hungama in India, and Amatil in Indonesia, along with RCBC Bank in the Philippines and Thailand telecom True Corp."

 Without the stranglehold of IP

Red Hat Malaysia country manager David Yap said customers in all segments are drawn by the innovation of open source solutions by the company. "There is an increasing adoption of open hybrid cloud architecture in Malaysia and indeed in the region. Companies are going to increase spending by 10.2 percent in Malaysia, according to IDC."

"Forward-thinking companies are also attracted by the value that Red Hat brings by commoditizing certain areas, which help reduce costs for data centres and networks without the lock-in presented by many vendors," said Yap. "For instance, more than 3,500 people attended the 2013 OpenStack summit held in Hong Kong and showed interest in Red Hat's OpenStack Cloud infrastructure, which is the largest OpenStack ecosystem in the world. Incidentally, the Red Hat summit held recently in San Francisco saw 4,000 attendees."

"In the new fiscal year [FY15], Red Hat will also be looking to deepen its engagement with partners and ISVs [independent software vendors]," he said, adding that there were about 200 partners in Malaysia across different categories.

Red Hat's Wong said the trend in Malaysia and Asia is best illustrated by IDC's study of servers shipped that shows Windows and Linux powered servers are at parity.

"All industry verticals, especially larger organisations in the telecommunications, government and public sectors, are adopting open source solutions, with the sharing of best practices and talent without the stranglehold of intellectual property [IP] that is the hallmark of a different, purely commercial approach," he said.

"The open source approach is attractive because of its innovation, driven by the open sharing of ideas," said Wong. "Open source innovation is driven by the philosophy of sharing, of the willingness of contributing without immediate reward - of 'paying it forward.' Our daily lives have been changed by this approach and this is finding increased acceptance by the enterprise community."

"The Internet of Things [IoT], which includes wearable technology and the communication between machines, is one of the upcoming major technologies," he said. "Open source solutions will be enabling this trend with such solutions as light operating systems capable of being used in devices."

"In dealing with security issues, such as Heartbleed, the nature of open source is to be transparent, and this allows a faster rallying by the global community in coming up with solutions. Security issues are mostly resolved within 24 hours 97 percent of the time in a transparent way, said Wong, adding that Red Hat technologies are certified to the highest level of military grade security.

 

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