Red Hat Reports Fourth Quarter and Fiscal Year 2019 Results
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Red Hat reports fourth quarter and fiscal year 2019 results

Our subscriptions mostly pay for the salesmen and the ads. They sell ads first, IT second. So I’m not gonna cry for RedHat. The image of the poor developers working in a cave, struggling to make money is only in our mind. They had a perfectly functional model but decided to sabotage some of it to try to squeeze even more money.

Operating expense, in thousands (2019,2018):

Sales and marketing 1,378,278 1,195,286

Research and development 668,542 578,330

General and administrative 304,766 239,316

Total operating expense 2,351,586 2,012,932

Let’s stop talking about Fedora/redhat, we are literally doing their job for them, for free.

Oh, btw, their gross profit is mentioned here.

Gross profit (thousands) 2,863,818 2,488,664

Net income (thousands) 433,988 261,851

That’s why I had such bad support experience, because they chose to hire sales people instead of engineers. You have a better chance of being hired by redhat if you are a salesman. It’s as Steve Jobs said, when the sales people take the power in the company.

“If you were a ‘product person’ at IBM or Xerox: so you make a better copier or better computer. So what? When you have a monopoly market-share, the company’s not any more successful. So the people who make the company more successful are the sales and marketing people, and they end up running the companies. And the ‘product people’ get run out of the decision-making forums.”

The core of their business is made by the open source community. If they need our help for something, it’s from saving them from drowning into money.

We need to jump ship from redhat just like we did from reddit. This is also the perfect opportunity to think about technical solutions on how to use the fediverse to finance the developers of the open source community.

  • fr0g@kbin.social
    20·
    1 year ago

    RedHat is probably the biggest Linux contributor across the whole ecosystem (for the kernel alone, only companies like Intel, Google or Huawei are sometimes bigger) and the average Linux Desktop user/hobbyist isn’t even their target demographic, so what money to possibly not throw at them are you even talking about? Are you currently paying money for a RedHat subscription?

    Also spending money on marketing/ads isn’t the same as selling ads.

    • fr0g@kbin.social
      9·
      1 year ago

      Also, I’m not really sure what I’m supposed to take away from the whole 66/33 thing. Are SUSE or Canonical handling it notably differently? If they’ve concluded spending lots on PR will get them lots of costumers, making a shitton of money with 1/3 going to devs still might lead to more contributions than making a little ton of money with most going to devs.

      • PabloDiscobar@kbin.socialOP
        3·
        1 year ago

        making a shitton of money with 1/3 going to devs still might lead to more contributions than making a little ton of money with most going to devs.

        Well these contributions are now behind a paywall. The salary of the sales people devs are now safe.

        Also, I’m not really sure what I’m supposed to take away from the whole 66/33 thing.

        I told you, if you are fine that for each $4 only one goes to the devs then we have a fundamental disagreement. You are absolutely free to agree or disagree. All I do is to show the numbers and suggest that we spend our money elsewhere.

        Maybe the real “freeloaders” of this story are not the ones that were presented to us? Can we see it through this point of view?

        • fr0g@kbin.social
          5·
          1 year ago

          Well these contributions are now behind a paywall. The salary of the sales people devs are now safe.

          They factually are not. Any fixes to RHEL go also go to CentOS Stream. and their contributions to the Kernel, GNOME, etc are freely available to anyone as well.

    • PabloDiscobar@kbin.socialOP
      4·
      1 year ago

      RedHat is probably the biggest Linux contributor across the whole ecosystem

      They contribute more to the advertisement and sales industry than to the kernel. The point is the efficiency of the money spent on them for the open source ecosystem. If you think that on $4 given to redhat only $1 should go to the devs then we have a fundamental disagreement.

      I did pay money for their subscription, I already had to deal with them. I won’t do it anymore, I prefer to give my money to the people doing the hard work. But you’ve already said before that the “reactions are overblown” and they decision makes sense. So your opinion was already made anyway.

      • fr0g@kbin.social
        7·
        1 year ago

        The point is the efficiency of the money spent on them for the open source ecosystem

        Hence my question about SUSE and Canonical. I have exactly zero context for being able to determine that these expenses are excessive. They very well might, but “this number is bigger than the other one” without any industry context whatsoever just doesn’t strike me as a meaningful argument.

        That being said, if one’s primary goal is to support open source development, the best way to spend one’s money is obviously to donate to software projects directly. If one needs server support AND wants to spend money in a way that does most for development, the question still stands whether any direct competitors do any better.

        Edit: seems like the post from Celestial kinda settles the matter anyways
        https://kbin.social/m/linux/t/107420/Reminder-that-RedHat-makes-A-LOT-of-money-already-The#entry-comment-432567