How does Red Hat make money?

[nix]

If Linux is supposedly this free software thing that thousands of programmers have tweaked over the years, then how come Red Hat is regarded as a big time up and coming company? How does it make money then?

[Lab Works]

hi nix!

linux, the software is free. redhat the distributions company get their revenues by charging for the linux support they give the users ie. manuals, on-line support, help-desks etc.

[:Þ]

They make money using sophisticated InkJet Printers

[mamangbumbero]

Originally posted by nix
If Linux is supposedly this free software thing that thousands of programmers have tweaked over the years, then how come Red Hat is regarded as a big time up and coming company? How does it make money then?

Though the Linux kernel, and the GNU, and other Open Source tools are created, maintained, and futher developed by a loosely tight band of programmers, Redhat bundles them in what is called a distribution.

Now, how does RHAT make money? It's closer to what Lab Works stated, that belatboy's. or is it? :)

RHAT serves at the facade of the Linux/GNU tools to the big, do-not-know-what-to-with-money companies. That's why though RHAT gives them software for free, they charge for anything else -- certification, manuals, tech-support, consulting, etc. etc. Also, RHAT recently added a subscription-based service in the hope that they'll make more money.

Making money what every company in the new economy is hopeing for.. This is what investors are looking at these days, a far cry from the speculation-filled investment stragegies in the previous couple of years.

Let's face it, bigger companies like to rely on other companies so they can point a finger at them (whichever find you choose) when things go wrong.

[Pao|o]

They make money by hypeing Linux up, issuing an IPO and cashing in before anyone knows that you can't make a decent profit on open source software... :)

You can only look at how much value Linux-based companies stocks have dropped and how many people were laid-off to see my point.

When Redhat was a privately owned company they made a good amount of profit and released competent distros. Ever since Redhat became a publicly-owned company they've started releasing buggy software... Oh well...

[Ronnie23]

Well they do earn their money not by selling the distro, but for the services that come with it...

Red Hat has their training programs, for starters... It could cost you an arm and a leg just to avail of their training programs... not to mention the RHCE certification exams...