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

John Van Ostrand john at netdirect.ca
Sat May 15 14:58:55 EDT 2010

----- "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 
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Net Direct Inc. 
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