Red Hat Nearly Doubles Its Partner Channel

More proof open source is infiltrating (and redefining) the IT channel: Red Hat’s partner network now exceeds 1,300 companies — up 84 percent from 713 companies in January 2008, according to The VAR Guy’s Open Source 50 report. Of course, “more partners” doesn’t always mean “better partners.” But Red Hat’s ability to recruit channel partners to back Linux and now JBoss middleware proves the company has learned a few key lessons from Microsoft.

Skeptical? Flash back to the 1990s. What made Microsoft so successful? Let’s put aside your conspiracy theories for a minute and stick with two facts.

First, Windows was preinstalled on nearly all PCs, creating a cash cow for Microsoft. But second — and perhaps more importantly — Microsoft focused on two core sets of customers: ISVs (independent software vendors) and channel partners. End-customers (the people who actually used Microsoft’s software within business) were not the company’s primary concern. Feed the partners, Microsoft knew, and the company could develop a revenue system where all roads led to Redmond.

Red Hat: A Mini Microsoft?

Red Hat is now taking similar steps. Having built an ISV network around Red Hat Enterprise Linux, the company is now touting JBoss middleware to channel partners. But Red Hat won’t end there.

Remember: Red Hat recently invested in JasperSoft, the open source business intelligence company. Smart move. JasperSoft’s revenues were up more than 75% in 2008 vs. 2007, according to a company spokeswoman. And 60 percent of JasperSoft’s revenue now comes from partners, up from 50% in 2007, according to The Open Source 50.

No doubt, Red Hat will continue to add ISV and channel partners — either through investments or continued reseller training.

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