The high demand for Linux software was underlined when Red Hat announced that it earned 12 cents a share for the quarter ending November 30, which was double the previous 12-month figure and a third higher than analysts’ expectations, reports Yahoo News.
Red Hat sales grew 44 percent to $73.1 million, which was 3 percent over estimates.
As the number-one seller of the Linux operating system, Red Hat is providing an increasingly viable option to Unix and Microsoft Windows. Research company International Data Corp. says sales of servers shipped with Linux grew 34 percent in the third quarter of 2005. Linux usage is growing faster than any other server operating system.
Red Hat packages Linux with its own software that makes the open source software easier to install and use, and it sells subscriptions for Linux support. Red Hat is also expanding into other types of open-source software, including application server software and a certificate system for managing user access.
Red Hat’s growth has not gone unnoticed. Novell, a distant number-two in Linux sales, recently restructured to focus on its Linux business.
By Edward Prewitt