In the 1990s, Red Hat established itself as a leading proponent of the open source software movement and sought to carve out for itself a significant role in the open source marketplace. As of 2011, the company reported $177 million in non-GAAP operating income in FY2010, based on revenues of $748 million. Red Hat’s market capitalization was set at $8 billion as of January 25, 2011. It operated 65 offices worldwide, including 12 Global Support Service Centers, and employed 3,580 people. The Red Hat brand was most closely associated with Linux even though its stable of product offerings had grown to include a number of other noteworthy system software and middleware products, such as JBoss and Red Hat Enterprise Virtualization. As Red Hat’s Linux product line had come to be widely accepted as an enterprise software platform, the company had transformed its thinking about and delivery of customer support. This case study explores the innovative ways that Red Hat went about this transformation process.
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