Red Hat aims to further disrupt the traditional software space, this time attacking traditional licensing models. At the company’s recent Summit in Boston, executives pointed out the expenses incurred around a traditional license.
“Many companies sell you a license, and then they sell you a maintenance fee. Every year they sell you a maintenance fee. [If] you want to upgrade to another version, [they say], ‘Well, let’s go back to the licensing fee.’ That’s the business model that they have,” said Red Hat Vice President of Customer Experience and Engagement Marco Bill-Peter.
“Our business model is different. It’s open source, and it’s around a subscription,” he said.
Bill-Peter said the benefits of the subscription model include “mature open-source software,” global support, certified security, certifications and globalization.