How Red Hat delivers $7B in customer savings

This spring, Red Hat commissioned IDC to conduct a new study to analyze the contributions of Red Hat Enterprise Linux to the global business economy. While many of the findings were impressive, including immense opportunities for partners, we were especially excited to learn more about how our customers benefit from Red Hat Enterprise Linux. 

According to the study, the world’s leading enterprise Linux platform “touches” more than $10 trillion of business revenues worldwide each year and provides economic benefits of more than $1 trillion each year to customers. Nearly $7 billion of that number comes in the form of IT savings. Even more exciting? As hybrid cloud adoption grows, we expect customers to continue to benefit given the importance of a common, flexible and open operating system to IT deployments that span the many footprints of enterprise computing. 

Nearly $7 billion in savings
Customers looking to invest in Red Hat technologies and services to transform their infrastructure want to be certain they’re making a smart investment. Red Hat Enterprise Linux is an operating system that will, according to the IDC study, more than pay for itself in revenue and savings. The IT organizations using Red Hat Enterprise Linux can expect to save $6.8 billion in 2019 alone through decreased expenses and increased productivity. 

Red Hat Enterprise Linux fuels IT deployments that touch trillions of dollars of global business revenue. According to the IDC research, when deployed in support of business activities, Red Hat Enterprise Linux users can expect to see economic benefits of more than $1 trillion each year through 2023, thanks to a combination of increased revenues and/or decreased expenses.

Value of a Red Hat subscription
Once organizations start using Red Hat Enterprise Linux, benefits don’t end with software savings. Since 2002, our services and software have been available through a subscription model. This allows organizations to focus less on the pains of managing enterprise infrastructure software estates and more on moving their business forward, backed by Red Hat’s decades of open source expertise, leadership and award-winning support. Customers get production-ready code, lifecycle management, software interoperability and access to experts who can help them run their business IT more effectively. Features and benefits of a Red Hat subscription include: 

• Stable open source technology, organized and optimized for enterprise use. 
• Security resources and accountability from a trusted advisor. 
• Knowledge and influence in open source communities to pursue innovation and development. 
• Access to technical support, documentation and tools. 
• Longer lifecycles and flexibility to adopt the version of Red Hat Enterprise Linux that can best meet an organization’s specific needs. 
• Partnership with Red Hat from proof of concept (POC) to deployment and beyond. 
• Broad ecosystem of partners, including original equipment manufacturers (OEM), channel, hardware, software and cloud providers (CCSPs).

Customers can also use the Red Hat Customer Portal to access additional tools and resources. Through this subscription model, there’s a relationship with Red Hat that enables substantial business value and helps customers thrive. 

IT organizational benefits
Modern IT organizations are tasked with providing quality IT services that help businesses maintain success amidst evolving competitive and market pressures. While open source software often plays a strategic role in their enterprise technology mix, IT teams also need to trust that they’ll retain the stability and reliability necessary for production systems. 

To help them do so, Red Hat Enterprise Linux can provide a cost-effective, efficient and more reliable operating environment while helping to remove the burden of extensive overhead costs on IT teams. According to IDC’s research, IT organizations using Red Hat Enterprise Linux saw savings benefits through: 

• A 12% savings in IT staff productivity
• An 18% savings in the cost of servers
• A 70% savings in the cost of software. 

IT groups can also build upon their existing Linux expertise by using the Red Hat knowledgebase to find resources and extensive product documentation.

Where customers can take advantage of Red Hat Enterprise Linux
Red Hat customers are pioneers and problem solvers. They’re established enterprises and energetic newcomers that believe in the business value of open technology. Our customers can take advantage of the world’s leading enterprise Linux platform as the foundation from which they can scale existing apps and roll out emerging technologies across the hybrid cloud, from bare-metal servers and virtual machines to containerized applications and public and private cloud environments.

Curious about how RHEL impacts IT professionals and beyond? Stay tuned as we’ll be exploring those topics in upcoming posts on the economic impact of Red Hat Enterprise Linux. In the meantime, check out our previous post that covers how Red Hat Enterprise Linux amplifies partner revenue.