Red Hat to focus on govt for growth in India; add jobs

Written By Unknown on Jumat, 31 Oktober 2014 | 21.43

MUMBAI: Open source software company Red Hat expects big business in India as the government kick-starts its investment in IT and number of startups in the country grows and also expects to grow its shared-services base in India.

Open-source software is freely available, so Red Hat's business model depends on customers paying for the support and service it offers and not on licence fees, making the company's offerings typically cheaper than proprietary software.

"The government has an interest in keeping costs low and next generation companies are built on open-source architecture. So, open source is where the future is moving," James Whitehurst, global CEO of Red Hat, told ET.

He added the company expects to do better in India helped by the Narendra Modi government's focus on IT and technology. Red Hat-supported software is already being used by the Indian government's biometric programme — Aadhaar.

Revenue in Asia-Pacific, which includes India, Australia, China, Japan, Singapore and South Korea, grew close to 20% in the past quarter. Red Hat does not break out geography specific details.

Further, growth will also come as Red Hat educates larger corporates about the benefits of open source.

"It's a process. Large companies have already typically invested in proprietary software, so for them it has to be change. As they say, nobody ever got fired for buying HP. So for us, we have to get them to switch," Whitehurst said. The company has already seen large government and public sector organisations such as the Centre for Railway Information Systems, the Life Insurance Corporation of India and SBI Insurance. While India is a large market for Red Hat, it is also a large support and shared services base.

"We're looking to expand the shared services centre here. Any new opening in the shared services division will be in India. We'd like to never need to hire a finance & accounting in another country. We'd also like to hire developers to build more products out of here," Whitehurst said.

http://timesofindia.indiatimes.com/followceleb.cms?alias=Red Hat,Open source government,Open Source Software,Centre for Railway Information Systems

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