marketing information is wealth: Business model

Wednesday, March 5, 2008

Business model

Red Hat operates on a professional open-source business model based on open code, community development, professional quality-assurance services, and subscription-based customer support.

Developers take the open source Linux kernel and adapt and improve it to fit certain needs. The code they write is open, so more programmers can make further adaptations and improvements. When a problem is found, an entire community of users can come together to find a solution. The whole development process is said by some[citation needed] to work at a faster pace and at a lower cost than that of a proprietary model where the code is not visible to users.

Red Hat sells subscriptions to the support, training, and integration services that help customers in using the open source software. Customers pay one set price for access to services such as Red Hat Network and up to 24x7 support, and they receive unlimited access to these services.

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