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Red Hat CEO James Whitehurst on how the company’s open source software and private clouds help its clients run critical operations at lower costs.
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Guys I do feel all.
I think we're gonna go with some colors here it'll be a green Christmas for James whitehurst.
And his company.
Red -- After the Linux software distributor.
Reported third quarter revenue that beat Wall Street's estimates.
Shares of Red Hat let's take a look they are moving higher by about four and a 3% on volume of about four point one million shares.
And it is the second biggest Gainer on the S&P 500 today what a great.
Christmas presents the Red Hat CEO James whitehurst is joining me now.
Live from Durham, North Carolina I look at this and what really jumped out at me James was that your subscription revenues.
Jumped 19%.
Year over year I'd love to know where the demand is coming from that is really pretty impressive.
Behind was here we have felt very good about the quarter.
On a constant currency basis is actually 2.2 percent from we saw strength across the board our strongest sector.
Believe -- or -- was financial services we had some very large financial services deals with some of the large global banks in.
You know as these industries look to save money looking at open source solutions is a way for IT departments to save money so actually down markets can be pretty good for -- What wait so so in essence your saying that the financial.
Institutions are actually finding some real religion they're being forced to cut costs that are going with you guys what you offer them -- That say for example the other guys do not the Microsoft's of the world the IBM's.
Well we offer.
01 -- open source software so simple way to put it is we offer.
Software to run mission critical applications that you would never run on something like windows where think -- which used to the blue screen of death.
I think we're -- New York Stock Exchange we Iran most bank trading platform so really mission critical applications.
But what we bring is we run those on Intel X 86 chips -- -- the sink ships that would be.
You and a PC or a -- a standard monetize server.
So it's dramatically lower cost hardware which were able to bring to mission critical applications so rather than running a mainframe.
Which is obviously very very expensive and relatively poor performance we can offer very high performance -- still the economics but low -- commodity hardware.
-- you beat by a enough of a comfortable margin on the revenue you matched on the EPS.
Again these numbers for subscription revenues looking very healthy you've made an acquisition for more than a hundred million dollars.
Things look very good and so let me ask you sort of a leadership CEO question.
Wind -- CEOs come on this business network court some of the others and say.
There's so much uncertainty we are not hiring we're not spending no capital expenditure right now we're paralyzed at the moment because of DC.
And then you -- seem to be just cooking along what do you say under your breath about.
Those leaders who who is it is -- a blaming technique for their inability to really that.
Run a business in good times and back as we know -- -- always gonna have sunshine and rainbows.
Well look I EIE it would be difficult for me adapted to sit here obviously we're very fortunate situation this business side.
Before this I was chief operating officer Delta Airlines did not read it through its bankruptcy restructuring so.
Look that bad situations.
Can happen to good companies.
It's -- certainly the fiscal cliff.
Is having an impact of course is -- CEO or any leader yeah we're we're paid to run businesses regardless of this of circumstances and make sure that we continue to perform.
So -- -- means everyone needs to dig a little deeper.
That's that I also think CEOs rightly so its leaders in the business community need to stand up and say we've got to fix the madness in Washington.
Now -- will we're waiting and watching were almost down to nine days starting tomorrow the private cloud.
Because -- going big with that that does just explain to people say for example Amazon has the public cloud.
What's different about the private cloud and who's paying you to make that happen for them.
Well atypical call large customer and enterprise customer -- they have thousands of servers themselves so vs going to an Amazon to buy thousands of servers they can have their own data senator.
The difference between a normal data -- -- cloud though is she treated as one big.
Mass of computing capacity.
So if -- marking department wants to run up program.
It doesn't have to do it on an individual server is just a pool of resources and that's really what cloud computing means is pooling those resources -- one generic -- Pay one of the largest public -- private clouds in the world would be a company like DreamWorks.
When they render those.
3-D.
Animated motion pictures it's millions of -- hours to render that.
DreamWorks as -- the largest clouds in the world.
Private clouds in the world and it fully runs on a Red Hat stack.
-- there are a good example we -- that around the world companies are ready to trust their data.
Public cloud like in the sun but they DC the power of the economics of running these private -- We have actually watched DreamWorks in Pasadena.
-- render those those movies I've been there watching it it's fascinating but yes it it takes a lot of space to really say -- all and it's fascinating to see that you -- the guy doesn't for them James whitehurst a Red Hat CEO.
Great numbers on the stock performing nicely today it's up 33% Europe for here see you next time happy holidays.
Thanks -- happy holidays thank you very much we --
