NEW YORK (TheStreet) -- Enterprise software and cloud services giant Red Hat (RHT) will report first-quarter fiscal 2016 earnings on Thursday after the closing bell. The Raleigh, N.C.-based Linux specialist is looking to extend its streak of consecutive quarterly earnings beats to 10, and I wouldn't bet my own money against its success.
Whether on public or private clouds, businesses today are growing more willing to make their data more accessible to employees and customers. Aside from the convenience and improved service quality, using the cloud also helps businesses save time and money, which -- in turn -- helps boost their profits and their stock prices. Few companies have capitalized as well as Red Hat on servicing these needs.
Led by CEO Jim Whitehurst, Red Hat has emerged as the world's largest provider of open-source solutions. Aside from the company's dominant Enterprise Linux business or RHEL, Red Hat is driving innovation in open-source platforms like OpenStack and OpenShift. Red Hat has placed a huge bet on OpenStack. And while it's a much younger part of its business than the Linux segment, OpenStack is now growing at a steady rate.
Matt Hedberg, an analyst at RBC Capital Markets, recently issued a report to investors, noting that his channel checks reveal that beyond RHEL, Red Hat customers are most interested in OpenStack, followed by Red Hat's Virtualization services and OpenShift. The latter is Red Hat's cloud computing platform-as-a-Service (PaaS) -- one that allows developers to build applications and collaborate on testing before they are deployed.