[kwlug-disc] How Canonical makes money ...

Shane shane.msg at gmail.com
Sat May 15 15:45:21 EDT 2010


I just love being creative and playing with theoretical possibilities. 

On the other hand, should you visit the Ubuntu Home Page and should you look in the lower right you will see under the heading "Get Support" the text "Make the most of our community support and free documentation, or buy Canonical professional support."

That might be a hint.  Amazing what research can accomplish, isn't it?
================
It's not the size of the dog in the fight, it's the size of the fight in the dog.

-----Original Message-----
From: John Van Ostrand <john at netdirect.ca>
Date: Sat, 15 May 2010 14:58:55 
To: KWLUG discussion<kwlug-disc at kwlug.org>
Subject: Re: [kwlug-disc] How Canonical makes money ...


----- "unsolicited" <unsolicited at swiz.ca> wrote:
> That's what Red Hat did, though, did they not? And they've been pretty
> successful? Profitable, even? Eventually?

Red Hat's financials say they have revenue of $541M for subscriptions, that means support, and $111M for training and services. Profit was $78M in 2009. And it looks like they've been profitable since 2005 (the last figures given in the report I'm reading.) It's pretty good that it sees 12% net profit.

I'm inferring from the text in the report that $45M was training and $66M for consulting and engineering services. They make money from OEMs (presumably IBM, HP, Dell, etc.) for engineering services and from large customers. Both want functional changes to the software.

-- 
John Van Ostrand 
CTO, co-CEO 
Net Direct Inc. 
564 Weber St. N. Unit 12, Waterloo, ON N2L 5C6 
Ph: 866-883-1172 x5102 
Fx: 519-883-8533 

Linux Solutions / IBM Hardware 


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