Red Hat picks prime time to strengthen its telco value proposition

Red Hat is very active in the communications service provider (CSP), or telco, space, but it delivers its solutions somewhat under the radar by leveraging an extensive partner network.

Currently, all of the Fortune Global 500 telecom companies use Red Hat technology in some form. As more CSPs embrace open source solutions in their network and IT environments, the company is poised to make further inroads.

To fully capitalise on the burgeoning open source and network functions virtualisation (NFV) opportunity with CSPs, Red Hat is building out a telco services unit and sales force, investing in new competencies in the services space, and growing its partner network by adding incumbent network solutions providers to the fold.

Together, TBR believes these strategic shifts position Red Hat at the forefront of the open source software opportunity in telco, and ahead of competitors such as Mirantis and Canonical.

TBR believes Red Hat is increasing its focus on the telco vertical at an opportune moment in the industry.

CSPs are increasingly shifting capex spend from network hardware to software and related services, which will be a boon to software-primary companies such as Red Hat, which provides design and consulting services before delivering its OpenStack and Linux-based software to CSPs via a subscription model and then follows on with support and training services.