Red Hat India sets up Linux distribution network

MUMBAI: Red Hat India, a IT major in development, deployment and management

of Linux and open source solutions for Internet infrastructure, has unveiled its

marketing strategy for distribution of Red Hat Linux products. As part of its

strategy to gain deeper penetration in the Indian enterprise market, the firm

has adopted the traditional channel distribution route for marketing its

products.

In this context, Red Hat has appointed Sonata Software and Integra

Microsystems as its two nationwide distributors. In addition, the firm has also

built a channel network of 20 resellers and G T Enterprises as its master

reseller. The distribution network will enable Red Hat India to target a large

customer base in India.

Elaborating on the distribution strategy for India, Red Hat India (channels

head) Ajay Kapoor said, "The commercial market for Linux in India is

phenomenal, with more and more enterprises adopting Linux for its stability,

reliability and multi-tasking facilities. The initial set up will ensure smooth

distribution of the products and we will back it up with quality support,"

he added.

Red Hat India has identified enterprises as one of its key segment for

distribution of its products and will concentrate on establishing its market

leadership. To further push the usage of Linux, Red Hat India will be bundling

Linux OS with several original Equipment manufacturers (OEMs).

Sonata’s director and senior vice president Srikar Reddy said, "A

tie-up with Red Hat India, will be enable us to offer our customers the best

industry applications that will effectively address their business needs. We are

confident that Sonata's expertise in managing large distribution network,

credible positioning as a high-end IT consulting company and knowledge of the

domestic software market will open up more avenues for Red Hat to strategically

expand their business here."

Integra managing director Mahesh Jain says: "We are happy about our

tie-up with Red Hat India. Our national distribution network coupled with strong

expertise in system integration and solution-providing skill will help in the

marketing of Red Hat Linux products. And our core strength in developing

software solution on Unix, will only add value to our consultancy and support

services on Linux, which has a flair of Unix."

"Linux is commercially becoming popular in India and we intend to

capture 50 per cent of Linux market share in the first year of our

operations," said Red Hat India director Javed Tapia. According to IDC, the

revenues for Linux server market for the fourth quarter of 2000 grew by 79% over

the quarter of 1999. For the entire year 2000, Linux generated more than $1.7

billion for the server market, 132% more than in 1999.

For faster growth of Linux servers in India, Red Hat India is negotiating

with leading server vendors in India. "The fast adoption by large vendors

like IBM, Sun Microsystems, HP and Oracle among several others has helped push

growth of Linux. In India too such alliances will help in further growth of Red

Hat Linux servers," said Javed.

According to an IDC report, the total shipments topped 1.2 million in the

quarter, a growth of 16% in the fourth quarter in 1999. For the calendar year

2000, the worldwide server market topped $60.2 billion in factory revenue from

shipments of almost 4.4 million, translating into seven per cent annual revenue

growth and 17% unit growth.