New Research Expects Red Hat Enterprise Linux to Impact $10 Trillion of Global Business Revenues, Employ 900,000 IT Professionals in 2019

– 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

BOSTON — RED HAT SUMMIT 2019–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/RedHat?src=hash” target=”_blank”gt;#RedHatlt;/agt;–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

Connect with Red Hat

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
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the Company to compete effectively; the ability to deliver and stimulate
demand for new products and technological innovations on a timely basis;
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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
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Contacts

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

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