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.

  • Celestial@kbin.social
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    1 year ago

    That’s already 23% of their revenue, which is decently high for their size.

    (Grabbing larger companies cause it’s easy data)
    Cloudflare: 18%
    Google: 15%
    Amazon: 11%
    Microsoft: 13%
    Apple: 7%
    Meta: 21%

    Sure they could definitely do better, but by no means are they spending “little”.

    High growth tech companies typically spend 26% of revenue on R&D, but these are primarily small-mid scale companies that are actively expanding.

    The fact remains that RedHat is still one of the top linux kernel contributors in the past years.

    • sadreality@kbin.social
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      1 year ago

      You’ve listed a bunch of monopolies while Red Hat is trying to act like a monopoly…

      FTC really needs to get to work on these clowns. Hopefully one day before most of us die off living this dystopian circus.