New Red Hat cloud offering poses high barrier to adoption

Red Hat's new cloud support for RHEL unlikely to help stem Ubuntu cloud usage

1 2 Page 2
Page 2 of 2

I'm assuming that customers have to pay the full cost of Premium support per year even if the Amazon EC2 instance is not running 24/7/365. If it were otherwise, one would expect Red Hat's marketing page to point out this nice feature. Additionally, once a customer elects to move an unused RHEL subscription to the Amazon EC2, the subscription must remain there for a minimum of six months, according to current eligibility guidelines.

These requirements seem at odds with the low cost of entry, ease of trial, selection and disposal, and pay per usage of software and hardware on public cloud infrastructure.

The other alternative is to use the beta of Red Hat Enterprise Linux on Amazon EC2 for a Basic EC2 server. This hourly beta offering provides unlimited email support with a two business-day response time at a cost of 21 cents per hour. This is a much easier way for customers new to RHEL to try it out in a cloud environment. If a customer decided to deploy cloud workload on RHEL requiring 24/7 support, they would, however, be faced with the $33,774 price of entry calculated above.

I wouldn't be surprised if Red Hat and, frankly, other software vendors try several different pricing models before finding the approach that balances the vendor revenue potential from licenses deployed in customer's data centers with the flexibility and freedom of pay-by-usage pricing in the cloud.

Follow me on Twitter at: SavioRodrigues. I should state: "The postings on this site are my own and don't necessarily represent IBM's positions, strategies, or opinions."

This article, "New Red Hat cloud offering poses high barrier to adoption," was originally published at Read more of Rodrigues et al.'s Open Sources blog and follow the latest developments in open source and mobile computing at


Copyright © 2010 IDG Communications, Inc.

1 2 Page 2
Page 2 of 2
How to choose a low-code development platform