Wall Street wasn’t pleased with Red Hat’s second-quarter revenue miss on Wednesday, yet the software company’s outlook is actually much brighter than This kind of quarter made This kind of seem, Red Hat President along with CEO Jim Whitehurst told CNBC on Friday.
An open-source software provider in which helps enterprises get onto the cloud, Red Hat gets much of its business by its Enterprise Linux operating system, which helps run companies’ applications via private along with public clouds.
yet the Enterprise Linux division’s modest second-quarter growth of 8 percent didn’t mean business was slowing permanently, Whitehurst told Cramer in an exclusive interview.
“Two along that has a half years ago, we began down a path of trying to get our customers in three-year agreements. By getting them in three-year agreements on Linux, This kind of gives us time to go then sell them completely new products,” he said.
“The problem with in which is actually those three-year agreements are typically fixed, along with so they don’t go up in value every year, so the bulk of our Linux business along with these three-year deals isn’t growing at all,” Whitehurst continued.
As the three-year deals come closer to their renewal dates, however, the Linux business should turn up, the CEO said.
Watch along with read more about his full interview here.