Red Hat Earnings Call Insights: Cloud Service Producers and Sheet Billings

Red Hat (NYSE:RHT) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.

Cloud Service Producers

Raimo Lenschow – Barclays: Quick question, you mentioned the cloud service providers as one of the strong guys for this quarter. (Pick the base) with investors about how those guys were playing out in terms of will they long-term take the support from you guys on that, what are you seeing in your discussions with them, especially after the event last week?

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Charlie Peters – EVP and CFO: Yeah. So, we’ve got a good business with the public cloud providers. We provide infrastructure to many of the public cloud providers and we also sell instances of Red Hat in the public cloud that are consumed by their customers and we get a recurring revenue stream. We believe that the technologies that we are offering are the technologies that are needed for the public cloud, and we think it’s a good business for us. And just to recap, as I said and as you mentioned Raimo, the public cloud providers, two of them were in the top 30 deals this quarter and that vertical was one of the top two verticals for the quarter, the second one being the financial services.

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