This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Red Hat CEO Jim Whitehurst: We're Ready to Dominate the Cloud

Stocks in this article: RHT HPQ CSCO IBM MSFRT ORCL VMW AMZN

In other words, by showing the confidence to work with competing platforms, Whitehurst is holding true to the very nature of an open environment. As he puts, Red Hat embraces the idea of "being a good steward" to the customer. He called it his duty. This is because as cloud platforms evolve he understands that management solutions like CloudForms is needed to ease the burden of cloud management experience.

The era of one vendor dominating enterprises by locking them in to a single platform is over. Gone will be the antiquated process of implementing cloud strategies and infrastructure builds that often take CIOs and enterprises hostage.

In a response to VMware's market position and prowess as a cloud company, Whitehurst explained that having a cluster of virtualized servers does not qualify as a legitimate cloud platform. In other words, OpenStack's relationship to the cloud and server virtualization are not the same thing.

That VMware is now developing its own OpenStack suite shows that company can no longer risk being excluded to a phenomenon the industry is beginning to embrace. Enterprises are showing by their capital spending that OpenStack is a legitimate alternative to what VMware currently offers.

In OpenStack, Whitehurst does not see a scenario where Red Hat won't emerge as a leader both in cloud development and infrastructure framework. His vision is to allow enterprises the freedom and flexibility needed to execute mission critical tasks.

Though still in the early stages, OpenStack, unlike Linux a decade ago, will emerge beyond just a niche platform. With total revenue for cloud growing at almost 10% annually ($41 billion in 2013), investors will have a tough decision to make.

Read More: Apple's Next iPhone: What We Think We Know

Today, many companies are already proclaiming themselves OpenStack experts, Red Hat included. Whitehurst believes his company has an added advantage given its long history of open source expertise. Do you want to bet against him?

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

Follow @Richard_WSPB

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

TheStreet Ratings team rates RED HAT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate RED HAT INC (RHT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. You can view the full analysis from the report here: RHT Ratings Report

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs