Red Hat Brazil scores largest middleware deal in company history

Wednesday, February 2, 2011

The Brazilian division of US Linux operating systems provider Red Hat (NYSE: RHT) has notched the largest middleware contract in the history of the entire company, Red Hat's Latin American marketing manager, Martin D'Elia, told BNamericas.

The deal, which was recently signed with a public sector organization, comes as part of a fiscal year marked by exceptionally large transactions in Latin America, according to D'Elia.

"There have been projects in Mexico, Argentina and Brazil - which are our most important countries in terms of operations" in Latin America, he said. "The three have had middleware projects that stand out in comparison with years past. They are very big."

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"I think that this is due to market maturity, and also a greater understanding of the value of open source technologies."

Virtualization has also represented another top growth driver during the last 12 months, with demand being particularly strong among government and telecommunications sector players.

D'Elia was unable to provide concrete financial figures. Red Hat's fiscal year comes to a close February 28, and the company will report its financial results in March.

Still, planning is under way for FY12, and one of Red Hat's biggest bets will be on the Andean region.

D'Elia said the firm reshuffled its distribution set-up in Peru and Colombia, scrapping deals with Software Libre Andino in the former and Netix in the latter in favor of a relationship with Colombian software wholesaler Nexsys that spans both countries.

"We expect a significant growth increase there," he said.

Additional focus areas will include migrations from Unix to Linux, virtualization, middleware projects related to SOA and rules, and also cloud computing, which includes laying the groundwork for future public cloud adoption.

"Next year, we will begin to see the first, concrete public cloud offerings. Some clients will begin to consider having a mixed set-up, and will look to pass some of their infrastructure to a public cloud."

Globally, Red Hat's fiscal third quarter net profits increased 63% year-on-year to US$26mn, while revenues rose 21% to US$236mn.