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Interview with Red Hat's New CEO

Posted by ScuttleMonkey on Fri Jan 04, 2008 05:30 PM
from the impossible-growth-charts-impress-investors dept.
mjasay writes "Red Hat just got a new CEO, Jim Whitehurst, but based on a recent CNET interview with him, he's cut from the same cloth as Matthew Szulik, Red Hat's former CEO. He won't buy an iPod because it won't play Ogg Vorbis files. He refused other CEO roles because he 'must have a mission.' He suggests that taking proprietary shortcuts is a fundamentally wrong way to build a software business. And he believes Red Hat should be doing $5 billion, not $500 million. It's a question of operational excellence and on focusing on its core businesses, according to Whitehurst."
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  • by MrKaos (858439) on Friday January 04 2008, @05:37PM (#21916250) Journal
    iriver?

    • Re: (Score:2, Informative)

      • Re: (Score:3, Insightful)

        I bought my wife an iAudio mp3 player from Cowon for the very reason that it plays ogg files. It works beautifully.
    • and xclef. i have one of both. i had an iriver, and I lost it. the xclef x500 was cheaper, so I bought it. Then I found my iriver. £20 if anyone wants it :-D
    • by kbahey (102895) on Friday January 04 2008, @06:55PM (#21917008) Homepage
      Actually devices that you can put the alternative Rockbox firmware [rockbox.org] on them do support OGG. This includes Sansa, Archos, iRiver, Cowon and others.
      • Thanks for that, it's bothered me for a long time that all the music has to be mp3. I want to use ogg too because I want to do all I can to migrate away from solutions with patent restrictions. Iriver said they play ogg, but my H10 didn't.

        I'll be checking out rockbox, thanks again!!!!

          • For sure! I was bummed out by it, I have another iriver (ifp-795) which plays oggs but difficult to connect to under linux (*sigh*) and the H10 has a fiddly database that has to be updated by using easyh10 [sourceforge.net] - ok for me - but not my girlfriend. I tried the iriver x20 and it worked straight away under linux (i.e connecting to and transferring files to) but I haven't tried ogg on it yet.

      • by glwtta (532858) on Friday January 04 2008, @09:38PM (#21918550) Homepage
        This includes Sansa, Archos, iRiver, Cowon and others.

        All Cowon players support Ogg out of the box (as well as just about every single other audio and video format). They actually have a really nice line-up all around; some of the best sound quality you will find in portables, too.

        Now if only they hadn't crippled the A3 with that "you've-got-to-be-joking" battery life...
    • incidentally, the iriver H10 didn't support ogg. After claiming a microsoft "plays for sure!" license, they had to drop ogg support to get it. Then a microsoft lawyer versed in the antitrust judgement realised that this was contrarary to the ruling. The judgement wasn't entirely in vain. Later iriver models support ogg, due to the antitrust ruling. There is hope, and some thing did come good out of that ruling :-) I'm more scared of apple these days.
    • Actually, I modified my iPod Video with Rockbox to make it play OGGs.
    • Trekstor Vibez. It also plays FLAC and of course MP3, and WAV and WMA.

      http://www.trekstor.de/en/products/detail_mp3.php?pid=66 [trekstor.de]

      I spent a couple solid days researching the options, because I also refused to get a player that did not do non-proprietary lossless and lossy audio, and found this to be a decent solution. I thought about doing the RockBox route but wanted something I didn't have to hack right away to get to work. I've had one for a year and have had no problems. Only downside is disk space is lower
  • I like the guy. (Score:3, Interesting)

    by alexborges (313924) on Friday January 04 2008, @05:43PM (#21916338)
    I think this guy is a hands-on bussiness guy that "gets" open source. Im not sure I want to believe he is a "believer", but he plays it well enough to think that he "gets" what we, the community, want.

    He says that redhat should be making about 8 times more money than it does now. I agree with him. The spectacular growth linux as a plataform has enjoyed is spread out between many other distros, and thus the next step is convincing some in other linux platform that the redhat value proposition is a better way to go. If I was him, for example, id introduce a discount and some free consulting if you're migrating from competing platforms.

    Remember, subscription is a long term bussiness. You dont get your wealth of money until time passes and youre able to amortize the initial costs of getting your distro to the customer and deploying a sales network, so, as a bussiness model, I think redhat and suse can ONLY grow in revenue (I love this FOSS thingie, it will make many of us a decent living doing what we love).

    Now, i really know certain stuff that goes on inside redhat (im not directly related to them, but lets say they've been my clients at some point in time). This is a very cost-effective operation, totally commited to increasing revenue in every little single aspect of it. The last CEO was very effective in conveying a corporate philosophy that saves and saves and saves money and resources, and i think it has resulted in supperb products and services, from my POV, the best in the industry; and not in huge salaries for executives and the kind of corporate shit that kills good companies.

    I wish the best to redhat with this new guy they have, I think he should be focusing in providing a better and better positioning for the redhat brand in the IT support and services industry; and to leverage the potential of the Red Hat Exchange idea. If they hit it with that one, they'll grow fourfold in less than two years, mark my words.
      • Re: (Score:3, Interesting)

        "popular distros are Debian based"

        That's a rather debatable statement.

        "Apt just plain works better than rpm"

        To make a car analogy, that's like saying buses work much better than people.

        rpm (the file format) is comparable with .deb, rpm (the command) is comparable with dpkg, apt would be comparable with yum or up2date or something. rpm is a package format and its tool, apt is a highlevel package management system (which, iirc, can also handle rpms...).

        "A year or so ago, RH promised to fix rpm to make it as u
  • Great News! (Score:4, Insightful)

    by filbranden (1168407) on Friday January 04 2008, @05:49PM (#21916442)

    Great News! I hope this guy does as much as he speaks!

    Red Hat is a great company, has very good products, but still has to enhance its support. Also, with Ubuntu getting market share on desktops, and SuSE trying to grab some piece of the servers pie (although I don't think they will after the Microsoft deal), Red Hat needs someone like him to lead it so that it keeps its leadership.

    I wish well to Mr. Whitehurst and sincerelly hope he can make Red Hat grow as much as he plans to!

    • SuSE trying to grab some piece of the servers pie (although I don't think they will after the Microsoft deal)

      That's crazy talk. Novell, remember they own Suse, was the major networking infrastructure player before Microsoft got into the mix. To say that they don't want to return to their former glory is to ignore that they've bought a Linux company for dominance of both aspects of the overall corporate business software market ([directory and rights management] servers and desktops). Novell has made huge st
  • by mwilliamson (672411) on Friday January 04 2008, @05:50PM (#21916450) Homepage Journal
    Hey Jim, you can play ogg vorbis on an Ipod, so fear not. You just need to replace its built-in O/S with Linux first. Rockbox [rockbox.org] makes this possible, and easy to do. http://www.linuxjournal.com/node/1005957 [linuxjournal.com]
    • by Neil Hodges (960909) on Friday January 04 2008, @05:55PM (#21916522)
      Umm, RockBox isn't Linux. It does share some code with iPL, but it isn't a Linux derivative itself, though it does give the iPod the ability to play more formats than Apple does. Unfortunately, RockBox doesn't run on the 6G iPod Classic, 2G or later Nano, nor the iPod Touch. I got the 5G Video after the 6G was released, and on clearance from the somewhat-local Apple Store.
    • Re: (Score:2, Informative)

      Rockbox does play Ogg Vorbis(and Speex) but is not Linux. There is iPod Linux if you really want Linux on your iPod.
    • Wallet vote (Score:5, Insightful)

      by DrYak (748999) on Friday January 04 2008, @09:15PM (#21918382) Homepage
      His refusal to buy iPod has also to do with that stuff called "vote-with-your-wallet" that /.ers are often talking about.

      Yes, by buy an iPod and replacing the firmware with Rockbox he *could* get OGG/Vorbis to play on his iPod.
      *BUT*, by doing so, he would be giving money and thus encouraging a company that refuses to support OGG/Vorbis out of the box and that is known to actively discorage homebrew hacking of their hardware (see iPhone).

      He would be better giving his money to a company that does openly support OGG/Vorbis (Samsung or the countless no-name asian USB stick/media players) or at least a company that publicly encourage 3rd party developers and 3rd party media codecs. ...On the other hand, at least the iPod isn't some PlaysForSure crap...
    • I got an iPod nano 2nd generation when I bought my macbook, and I would really like to put rockbox on it because I have a lot of songs in vorbis format. Unfortunately Apple started encrypting their firmware in so that people can't easily replace them. I believe the same thing is true with most of the new iPods, not just the nanos, so be sure to check the rockbox site to make sure it's compatible before buying an iPod if you're counting on the vorbis compatibility.

  • by NerveGas (168686) on Friday January 04 2008, @05:51PM (#21916480)

        Isn't their core business providing SRPMS to CentOS?
  • by Ralph Spoilsport (673134) on Friday January 04 2008, @06:01PM (#21916612) Journal
    The software on Linux is good, but not as good as the stuff you pay for. What he should do is cozy up to Adobe and get them to port the Creative Suite over to Linux, and then sell Adobe CS(4 or 5 or whatever) on a dedicated box running RedHat Linux.

    They'd all make a fortune.

    And it would give Linux the software it so desperately needs to survive.

    RS

    • by alexborges (313924) on Friday January 04 2008, @07:32PM (#21917398)
      Gosh, what is it with people that think linux needs this or that to "survive". Linux is by far the most ported OS of all time, it works everywere in embeded devices, probably in your wifi router, probably in your home isdn/cable/ADSL router.

      It powers google, a good chunk of yahoo and im pretty sure some good part of the online infrastructure at microsoft, ibm, hp and many other non-it related companies.

      Linux is NEVER going to die, with or without adobe on board. Adobe is not porting due to they feeling its not worth it. But FOSS may very well give them a run for their money. Weve done it before, we will do it again and, when the time comes that Adobe sees a market for linux, they may very well end up being the underdog in our ecosystem due to them not starting to compete earlyer with equivalent foss solutions.

      Now. Is Linux going to Conquer The World? I dunno. I hope it does.
    • by burnin1965 (535071) on Friday January 04 2008, @09:13PM (#21918370) Homepage

      What he should do is cozy up to Adobe and get them to port the Creative Suite over to Linux, and then sell Adobe CS(4 or 5 or whatever) on a dedicated box running RedHat Linux
      I can understand not taking the time to read the article before posting, but did you even bother to read the summary your responding to?

      "He suggests that taking proprietary shortcuts is a fundamentally wrong way to build a software business."

      Its not likely that people are going to switch to linux because one popular proprietary application runs on linux, OSX, and Windows. They'll likely take the easiest route and stick with the status quo and purchase the Adobe software to run on their existing Windows/OSX box. Which means the effort required to get Adobe to port their apps to linux is pointless. If anything its a benefit to Adobe to port their apps if they want to sell them to people like me who are currently outside of their market possibilities because I refuse to run Windows or OSX, I use linux for my desktop.

      I take his stance to be that if the open source apps on linux are not good enough then the correct solution is to put effort into the linux alternative apps, not take a short cut and try to get a proprietary vendor to port their closed source proprietary apps.

      And given that the effort to do it the right way will be more difficult than giving in to short cuts, the pay offs would be bigger as well. If Red Hat can undercut the cost of a Windows/OSX system and Adobe apps for a development workstation by utilizing 100% non-proprietary open source applications then they will have a compelling reason for people to switch and consider Red Hat subscription services to support their platform choice.

      Undercutting the massive profit margins on proprietary software is far more compelling than giving in to the same.
      • I can understand not taking the time to read the article before posting, but did you even bother to read the summary your responding to?

        You must be new here.

  • by NoMaster (142776) on Friday January 04 2008, @06:23PM (#21916652) Homepage Journal
    "I believe what you believe ... blah blah blah ... trust me, I'm good, not evil ... blah blah blah ... again, I believe what you believe ... we're great, but we should be 10x better ... blah blah blah ... you need to work harder, focus more, and buy our stuff .. blah blah blah".

    If this is "News For Nerds" to you, then you've been living under a rock for the last 30+ years...

    • He doesn't have to say "I believe what you believe... blah, blah, blah"; this man walks the walk.
      from Can an airline exec run Red Hat? You'd be surprised [zdnet.com]

      Whitehurst has a geek streak. On last night's earnings conference call Szulik noted:

      As we went through the recruiting process, we did interview a number of people that I am sure are familiar to this audience listening from the technology industry and what we encountered, of course, was in many cases a lack of understanding of open source software development, a lack of understanding of our model. And as importantly for me, the open mindedness that would come to both the creation of new economic models and contemporary thinking as it relates to software development.

      In my first meeting with Jim Whitehurst, we discussed the four Linux distributions that he was running on his home personal network. He was running Fedora Core 6 and Fedora Core 7 at home. He was running Slackware at home and he was an experienced software developer up until the time that he was at BCG (Boston Consulting Group). So we are getting a technically savvy executive who happens to have strong operational, financial, and strategic skills and it was in my view that in comparison to his peers that were finalists for the job, that he stood head and shoulders above, in light of all of the qualities that we were looking for in my successor.

      Don't make assumptions about the suits the same way they make assumptions about us (the geeks).

  • by joeflies (529536) on Friday January 04 2008, @06:27PM (#21916700)
    "Red Hat should be doing $5 billion, not $500 million." - OK, sounds like he wants to grow the top line, which is an expansion of revenue. So how's he going to do it?

    "It's a question of operational excellence and on focusing on its core businesses" - whoops, looks like his corporate speak backing statement is talking about cutting costs, not top line growth. You can make a company more profitable with these tasks, but it doesn't outline how you're going to make more money.

    • by RotateLeftByte (797477) on Friday January 04 2008, @06:51PM (#21916940)
      There is no way in hell that you can get from $500M to $5B just by cutting costs unless of course, your cost base is totally messed up and by all accounts that is not true at RH.

      RH will have to grow and improve its support as well as enlarging their product portfolio. Generic Linux Service growth will IMHO not get them much beyond the $1B mark.

      I can only hope that the new CEO can fix the issues with JBOSS and that the lessons learned here can be taken forward so that future purchases don't suffer the same problems.

      The thing about(IMHO) RH is that they really don't do the self promotion thing very well especially when compared to others in the Linux business.

  • by Vellmont (569020) on Friday January 04 2008, @08:02PM (#21917718)
    I looked into buying the RH supported version of JBoss recently. The LOWEST priced supported version is $2000 per year! I'm not exactly sure what market RH is going for here, maybe the Fortune 500 and large institutions, but it sure as hell isn't me.

    I'll stick with the unsupported free version, thanks. I just can't see getting $2000/year value for just some extra support I'll likely never use anyway.
  • core business (Score:3, Interesting)

    by nurb432 (527695) on Friday January 04 2008, @08:15PM (#21917824) Homepage Journal
    And wanting to increase sales to 5b means no more fedora, or most anything else they cant charge for.
    • Re:core business (Score:4, Insightful)

      by Klaruz (734) on Friday January 04 2008, @09:29PM (#21918472)
      Which is downright idiotic. When it was free, Redhat was EVERYWHERE. Almost the instant they stopped putting isos out, that changed. Sure, you have fedora, but its such a moving target you can't really use it on sort of stable system. I hope that by focusing on their core business, which is distributing and supporting open source software, they'll see the light and start to ship a free enterprise level distro again. Yes, I use CentOS, but that doesn't really contribute to the Redhat name, or provide a path for them to provide support in exchange for money when its needed.
    • Are apt repos easier to maintain than yum repos?
      • Re: (Score:3, Informative)

        No, actually it's the other way around, that's why all 3rd party RedHat/Fedora repositories have already switched to the yum format years ago.
    • by Pros_n_Cons (535669) on Friday January 04 2008, @06:54PM (#21916980)
      I just wanted to know whether he'd switch Redhat to apt and .deb in the near future

      Why would he do that? RPM has many more features, more of an industry standard, etc and yum has just as many features as apt including some apt doesn't have. There is a yum is faster and uses cache just like apt and even has plugins like fast mirror. A yum update takes me 3 seconds across several different repositories. like adobe, livna, updates and kernel mods so the speed is not a problem either like 90% of other distro users still believe.
      I really hope that people get with the new decade and see RPM's are just fine since 10 years ago when you tried installing gimp.suse.rpm on a redhat box.
    • Re: (Score:3, Insightful)

      I just wanted to know whether he'd switch Redhat to apt and .deb in the near future, and whether he sees a significant role for KDE in Redhat's core business plans. In my opinion, Redhat should switch to apt and KDE.

      He probably will not do anything of the kind. CEO stands for Chief Executive Officer, not Choosing Engineering Officer. The sort of decisions you mention are technological decisions (yes, even the KDE one). He makes decisions like "aim our products at a more accessible market" then gets other people to come up with various ideas as to how to achieve that aim. CEO's are there to give a company direction not choose which technology to use to solve a particular problem.

      Not that this guy would be unable to, bu

      • Do you know that a fish starts rotting at the head? Or do you know that if Redhat adopted KDE, the CEO (the Chief Executive Officer) would be the first person to get the "heat" from inquisitive minds? Have you been under a rock or something?
      • by McDutchie (151611) on Saturday January 05 2008, @12:44AM (#21919750) Homepage

        In response to your comment about KDE there is a very good reason that RedHat use Gnome by default (IMHO): It is more like windows.

        The problem with KDE is that the people who design the interface refuse to acknowledge that Windows is what everyone is used to and you need to make the transition away from that as easy as possible. Gnome has certain key features (like cut and paste) that are as close to the windows functionality as possible.

        You have it exactly backwards. GNOME's user interface has become more and more like Mac OS X in several important ways, like the file chooser dialog, spatial file manager, program menu at the top of the screen, etc. etc. while KDE emulates Windows in just about every way (except it adds a bunch of features Windows doesn't have).

        And where on earth did you get the mistaken idea that KDE does not support Windows-style cut and paste? It always has.

        No, the real reason GNOME is dominant in business-oriented distributions is GTK's more liberal licensing: LGPL instead of Qt's GPL/commercial dual licensing. That means you can make a GTK/GNOME-based commercial, closed-source product without having to buy a license from the GUI toolkit's maker. With Qt and hence with KDE, that is not possible.

        • No, the real reason GNOME is dominant in business-oriented distributions is GTK's more liberal licensing: LGPL instead of Qt's GPL/commercial dual licensing. That means you can make a GTK/GNOME-based commercial, closed-source product without having to buy a license from the GUI toolkit's maker. With Qt and hence with KDE, that is not possible.

          That is correct. However it isn't just commercial licenses that have a problem, it is any non-approved FOSS license. Trolltech accept quite a lot of them, but not all (witness recent GPL3 issues with Samba). Whereas GNOME sees the desktop as a foundation, just like the Linux kernel - you can run whatever you want on it. Only if you change the foundation do you need to comply with its license.

          The other important reason is that GNOME has a regular, consistent release schedule - every 6 months. KDE, on the

    • by Skyshadow (508) * on Friday January 04 2008, @06:01PM (#21916610) Homepage
      I worked for SGI when I was an intern. This was back when they were realizing that nobody wanted to pay $20k for a workstation anymore.

      SGI had some pretty kick-ass server gear and had just purchased Cray, so naturally they responsed by coming up with a half-ass NT desktop that, likewise, nobody wanted. They played to their weakness rather than their strength, and the result was that they lost bigtime.

      This strikes me as being similar: They're playing to their weakness, trying to get to where everyone else is doing well and not realizing that (a) the space is already fairly saturated and (b) the competitors waiting for them there are better than they are at the sort of thing they do.

      And who gives a shit if he's a OSS zealot? The way to help out our common interest here is to succeed -- I don't care if the guy will only listen to 8-tracks, I want to hear his plan for turning the company around. This isn't like an airline where your ass can be bailed out by the cyclical nature of the business -- while people always need an airplane to get someplace, in the end they really don't need your distro. You can't just keep flying and charge $5 for snack boxes.
      • What exactly is it they need to *turn around*. You say that like they're a failing company... Last I checked, profits were up 12% last quarter. Hardly a sinking ship...
        • Re: (Score:3, Interesting)

          I guess it was a case of bad wording. However, Whitehurst said himself that JBoss can do much, much better. $500M is largely based on core product (RHEL subscriptions), while $5B might be achievable through sales of stuff that goes on top of the OS.

          I am also sure that they could do really well in a desktop market, if only they wanted to. That would bring a whole hip of complexity to the way Red Hat does business (and development) but I'm now certain that underlying technology is finally in a good shape to s
    • Ehem.... Contributions? Care to name a few of those?

      I love CentOS as much as the next guy, but lets face it, their job is to compile srpms giving a clone of RHEL. They do it well, but thats hardly a "contribution" to anything.
      • Agreed. Leaching is a one-way street.
      • Re:CentOS (Score:5, Insightful)

        by DamnStupidElf (649844) <Fingolfin@linuxmail.org> on Friday January 04 2008, @08:12PM (#21917792)
        I love CentOS as much as the next guy, but lets face it, their job is to compile srpms giving a clone of RHEL. They do it well, but thats hardly a "contribution" to anything.

        It's a contribution to Redhat. When people who've been using CentOS at home or for development want support at work, which distro do you think they'll buy support for? It's also a contribution to the community, because they explicitly make sure all the GPL code stays available and compilable. I wouldn't doubt if they find and report (and probably fix) bugs as well.
      • The CentOS people have added some RPM's in their centosplus repository with newer version of some of the popular software on it. For CentOS 4, they have PHP 5.1, PostgreSQL 8.1, MySQL 5, and some kernels with support for other file systems (like XFS/ReiserFS I think, though I've not used them). RHEL 4 comes with PHP and MySQL 4.something, and PostgreSQL 7. That makes it easier for people running CentOS (or RHEL - though RedHat obviously wouldn't support it) to run more modern versions of a few popular ap
    • It's called a "Business Decision". If all the half-baked servers now running CentOS had been running Red Hat, that could have a negative impact on their image, and thus, their sales. OTOH, if you're paying through the nose for your RH license, you're gonna make damned sure that that money isn't wasted.

      For most needs, CentOS or Fedora should be fine.