Marketing
Forrester Consulting Total Economic Impact� (TEI) study assesses the partner opportunity for Red Hat Enterprise Linux
Å·²©ÌåÓýƽ̨ complex reality of hybrid cloud environments requires a stable and consistent foundation. Red Hat® Enterprise Linux® is the world’s leading paid Linux operating system¹ that provides a stable and flexible foundation to support hybrid cloud innovation. It enables customers to deploy applications and workloads faster with a consistent experience across datacenter, cloud, and edge environments.
A Forrester Consulting Total Economic Impactâ„� (TEI) study commissioned by Red Hat, Å·²©ÌåÓýƽ̨ Partner Opportunity For Red Hat Enterprise Linux², reports that for a composite partner organization representative of interviewed Red Hat partners, Red Hat Enterprise Linux created a revenue opportunity for partners of 3.5 times the subscription revenues through build, deployment, migration, and implementation services, as well as managed services. Å·²©ÌåÓýƽ̨se opportunities in turn helped increase the strategic value that Red Hat partners provided to their customers.
As part of the study, Forrester interviewed 11 decision makers, from 8 different Red Hat partners, about the business and financial value they have achieved with Red Hat Enterprise Linux.
Financial results for Red Hat partners
Å·²©ÌåÓýƽ̨re were three main revenue opportunities identified by the Red Hat partners who were interviewed:
- Å·²©ÌåÓýƽ̨ Forrester Consulting study reports Red Hat partnersâ€� average revenue opportunity is 10% gross margin on selling Red Hat Enterprise Linux subscriptions.
- Red Hat partners interviewed by Forrester reported an average of 30% gross margin from consulting services opportunities such as building, deploying, migrating, and integrating Red Hat Enterprise Linux environments.
- Red Hat partners, interviewed by Forrester, reported an average of 33% gross margin from managed services such as overseeing overall infrastructure health, patching, security and performance optimization, level 1 and 2 support, and scaling Red Hat Enterprise Linux to additional environments.
“ŷ²©ÌåÓýƽÌ� value that Red Hat brings to the table is huge. Å·²©ÌåÓýƽ̨y are taking all that open source innovation and turning RHEL into something that is supportable and not a project for IT.â€� - Practice director, North America
Business benefits for Red Hat partners
In addition to the financial benefits, Red Hat partners, who were interviewed, experienced other key benefits.
- Deepened customer relationships - Red Hat partners reported using Red Hat Enterprise Linux tools and services enabled them to provide more strategic value to their customers, which deepened those customer relationships.
- Enabled opportunities to sell additional Red Hat products and services - Red Hat partners felt a major value of Red Hat Enterprise Linux was that it allowed them to sell and provide services for additional Red Hat products, specifically Red Hat Ansible® Automation Platform and Red Hat OpenShift®.
- Ongoing training and certification - Red Hat partners felt the wide range of technical training and certification programs offered by Red Hat helped them win more services business. Å·²©ÌåÓýƽ̨ir customers want the reassurance of a fully certified staff to properly set up and maintain their environments.
“As a partner, Red Hat is an inroad for me. Å·²©ÌåÓýƽ̨y’re the fastest-growing part of my business and the most strategic partner my company has. Å·²©ÌåÓýƽ̨y allow me to be a lot more consultative with every customer interaction, and we can pull in whatever the customer needs â€� like RHEL, Ansible, and OpenShift. Because they are open solutions, I can have a relevant conversation regardless of if the customer is in the cloud or on-prem.â€� - Practice Director, North America
To learn more about the revenue opportunity partners could gain by offering a Red Hat Enterprise Linux practice, download the full study.
¹Source: Gartner, Marketshare: All Software Markets, Worldwide, 2020, April 2021.
²Source: Forrester Consulting Total Economic Impactâ„� Study commissioned by Red Hat, Å·²©ÌåÓýƽ̨ Partner Opportunity for Red Hat Enterprise Linux, June 2023.