- According to study, the world’s leading enterprise Linux platform offers economic benefits of more than $1 trillion a year to customers with nearly $7 billion in IT savings

- By 2023, new ecosystem revenues forecast to net more than $135 billion by 2023 for Red Hat Enterprise Linux partners; Red Hat partner ecosystem to gain $21.74 for every dollar Red Hat makes

- Red Hat and its ecosystem of customers and partners expected to drive nearly 640,000 new jobs by 2023 - totaling more than 3.3 million people working in Red Hat related positions by 2023

Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced new research from IDC that examines the contributions of Red Hat Enterprise Linux to the global economy. According to the IDC study, commissioned by Red Hat, software and applications running on Red Hat Enterprise Linux are expected to contribute to more than $10 trillion worth of global business revenues in 2019, powering roughly 5% of the worldwide economy as a cross-industry technology foundation.

When deployed in support of business activities, Red Hat Enterprise Linux users are expected to see economic benefits of more than $1 trillion each year through 2023, thanks to both increased revenues or decreased expenses.

Red Hat Enterprise Linux can save billions and put millions to work

As the world’s leading enterprise Linux platform, Red Hat Enterprise Linux is widely trusted across industries and by customers around the world to provide a modern foundation that can support applications and environments where users need them. The research found that Red Hat Enterprise Linux is most frequently used for enterprise management and production (26%), IT infrastructure (20%) and customer relationship management (18%). IDC found that Red Hat Enterprise Linux offered business benefits in each workload – an increase in revenues from using Red Hat Enterprise Linux, a decrease in expenses, or an increase in employee productivity.

According to IDC’s research, IT organizations using Red Hat Enterprise Linux can expect to save $6.7 billion in 2019 alone. IT executives responding to the global survey point to Red Hat Enterprise Linux cited:

  • Reducing the annual cost of software by 52%
  • Reducing the amount of time IT staff spend doing standard IT tasks by 25%
  • Reducing costs associated with unplanned downtime by 5%

Red Hat Enterprise Linux helps drive these benefits by design, refining raw community innovation through security updates and hardened code. This helps the platform to withstand the rigors of enterprise workloads and to meet many of the strictest security standards in the world. This helps to mitigate unplanned downtime and improves business confidence in the underlying infrastructure.

The platform also embraces native automation and abstraction of complex subsystems, making it easier to manage, update and configure. Combined, these capabilities enable enterprises to keep IT infrastructure functioning properly while minimizing operational resources, including manpower. With Red Hat Enterprise Linux easing many of the complex routine tasks of the operating system, IT professionals are able to work on other projects that can drive new business opportunities and enhance value.

The report also indicates that Red Hat Enterprise Linux can serve as a global employment and local investment catalyst. By the end of 2019, IDC expects the Red Hat Enterprise Linux ecosystem to directly employ nearly 900,000 workers, with an additional 236,000 jobs added through 2023. Additionally, the community of Red Hat Enterprise Linux-focused IT professionals working within customer organizations - defined by IDC as IT professionals who work with the software, hardware, and services stacked on Red Hat Enterprise Linux - is estimated at 1.7 million worldwide currently and to grow to 2.1 million by the end of 2023. Combining these two groups, Red Hat-related positions may employ more than 3.3 million people by 2023.

Red Hat Enterprise Linux: An $80 billion dollar ecosystem

For ecosystem partners, Red Hat Enterprise Linux represents a flexible, scalable and more secure foundation for building the next-generation of hybrid cloud applications and services. But more than a technology platform, the IDC report shows that Red Hat Enterprise Linux is a revenue driver: By the end of 2019, IDC predicts that the Red Hat Enterprise Linux ecosystem of partners and resellers will generate more than $80 billion, gaining $21.74 for every dollar of revenue generated by Red Hat.

IDC expects this trend will continue, however, with net new ecosystem revenues from 2018 to 2023 adding up to more than $135 billion for Red Hat partners. While some of the firms in the Red Hat ecosystem are multinational organizations, most are not. According to IDC’s research, this means that fueled by the Red Hat Enterprise Linux ecosystem, these regional companies may invest more than $35 billion in local economies by 2023, providing an even more positive long-term economic impact.

Press webcast

Red Hat will host a press conference live from Red Hat Summit at 11 a.m. EDT on Wednesday, May 8. Following remarks, press and analysts are invited to participate in a live question and answer session.

To register for the press conference or view the replay after the event, visit https://onlinexperiences.com/Launch/QReg/ShowUUID=45D50AF9-7E2C-4F8C-8606-B85EBDA927AC

Supporting Quotes

Stefanie Chiras, vice president, Red Hat Enterprise Linux, Red Hat“Red Hat Enterprise Linux provides a flexible, stable and more secure foundation for IT organizations building applications and services that span the hybrid cloud. But as this report shows, Red Hat Enterprise Linux is more than just an operating system; it can serve as an economic engine that drives not only the success of our customers but also our partners and the broader global markets.”

Cushing Anderson, program vice president, Business Consulting and IT Education, IDC“The operating system is at the heart of every modern enterprise and powers a wide range of crucial business activities, from running globe-spanning ERP systems to forming the foundation of massive IT infrastructure. As the world’s leading enterprise Linux platform, Red Hat Enterprise Linux fuels these operations and more, touching trillions of dollars of global business revenue, creating hundreds of thousands of jobs and opening tens of billions of dollars in opportunities to ecosystem partners.”

Additional Resources

  • Read the full IDC study, sponsored by Red Hat, “The Economic Impact of Red Hat Enterprise Linux: Trillions -- Yes, Trillions of Dollars”
  • See an infographic detailing the key economic statistics driven by the world’s leading enterprise Linux platform
  • Learn more about Red Hat Enterprise Linux
  • Learn more about Red Hat Summit
  • Follow @RedHatSummit or via the hashtag #RHSummit on Twitter
  • Become a fan of Red Hat Summit on Facebook

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About Red Hat, Inc.

Red Hat is the world’s leading provider of enterprise open source software solutions, using a community-powered approach to deliver reliable and high-performing Linux, hybrid cloud, container, and Kubernetes technologies. Red Hat helps customers integrate new and existing IT applications, develop cloud-native applications, standardize on our industry-leading operating system, and automate, secure, and manage complex environments. Award-winning support, training, and consulting services make Red Hat a trusted adviser to the Fortune 500. As a strategic partner to cloud providers, system integrators, application vendors, customers, and open source communities, Red Hat can help organizations prepare for the digital future.

Forward-Looking Statements

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to our pending merger with International Business Machines Corporation, the ability of the Company to compete effectively; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; delays or reductions in information technology spending; the integration of acquisitions and the ability to market successfully acquired technologies and products; risks related to errors or defects in our offerings and third-party products upon which our offerings depend; risks related to the security of our offerings and other data security vulnerabilities; fluctuations in exchange rates; changes in and a dependence on key personnel; the effects of industry consolidation; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to meet financial and operational challenges encountered in our international operations; and ineffective management of, and control over, the Company's growth and international operations, as well as other factors contained in our most recent Annual Report on Form 10-K (copies of which may be accessed through the Securities and Exchange Commission's website at www.sec.gov), including those found therein under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

Red Hat and Red Hat Enterprise Linux are trademarks or registered trademarks of Red Hat, Inc. or its subsidiaries in the U.S. and other countries. Linux® is the registered trademark of Linus Torvalds in the U.S. and other countries.

John TerrillRed Hat, Inc.+1-571-421-8132jterrill@redhat.com

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