Red Hat worth 7.8 Billion now

I was searching for a Linux install of Revolution’s latest enterprise version, but it seems version 4 will be available on Red Hat Enterprise Linux only by Decemebr 2010. Also even though Revolution once opted for co branding with Canonical’s Karmic Koala, they seem to have ignored Ubuntu from the Enterprise version of Revolution R.

http://www.revolutionanalytics.com/why-revolution-r/which-r-is-right-for-me.php

Base R Revolution R Community Revolution R Enterprise
Buy Now
Target Use Open Source Product Evaluation & Simple Prototyping Business, Research & Academics
Software
100% Compatible with R language X X X
Certified for Stability X X
Command-Line Programming X X X
Getting Started Guide X X
Performance & Scalability
Analyze larger data sets with 64-bit RAM X X
Optimized for Multi-processor workstations X X
Multi-threaded Math libraries X X
Parallel Programming (Single Workstation) X X
Out-of-the-Box Cluster-Ready X
“Big Data” Analysis
Terabyte-Class File Structures X
Specialized “Big Data” Algorithms X
Integrated Web Services
Scalable Web Services Platform X*
User Interface
Visual IDE X
Comprehensive Data Analysis GUI X*
Technical Support
Discussion Forums X X X
Online Support Mailing List Forum X
Email Support X
Phone Support X
Support for Base & Recommended R Packages X X X
Authorized Training & Consulting X
Platforms
Single User X X X
Multi-User Server X X
32-bit Windows X X X
64-bit Windows X X
Mac OS X X X
Ubuntu Linux X X
Red Hat Enterprise Linux X
Cloud-Ready X

and though the page on RED HAT’s Partner page for Revolution seems old/not so updated

https://www.redhat.com/wapps/partnerlocator/web/home.html;#productId=188

, I was still curious to see what the buzz about Red Hat is all about.

And one of the answers is Red Hat is now a 7.8 Billion Dollar Company.

http://www.redhat.com/about/news/prarchive/2010/Q2_2011.html

Red Hat Reports Second Quarter Results

  • Revenue of $220 million, up 20% from the prior year
  • GAAP operating income up 24%, non-GAAP operating income up 25% from the prior year
  • Deferred revenue of $650 million, up 12% from the prior year

RALEIGH, NC – Sept 22, 2010 – Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions, today announced financial results for its fiscal year 2011 second quarter ended August 31, 2010.

Total revenue for the quarter was $219.8 million, an increase of 20% from the year ago quarter. Subscription revenue for the quarter was $186.2 million, up 19% year-over-year.

and the stock goes zoom 48 % up for the year

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1285505944359&chddm=98141&chls=IntervalBasedLine&cmpto=INDEXDJX:.DJI;NASDAQ:ORCL;NASDAQ:MSFT;NYSE:IBM&cmptdms=0;0;0;0&q=NYSE:RHT&ntsp=0

(Note to Google- please put the URL shortener on Google Finance as well)

The software is also reasonably priced starting from 80$ onwards.

https://www.redhat.com/apps/store/desktop/

Basic Subscription

Web support, 2 business day response, unlimited incidents
1 Year
$80
Multi-OS with Basic SubscriptionWeb support, 2 business day response, unlimited incidents
1 Year
$120
Workstation with Basic Subscription
Web support, 2 business day response, unlimited incidents
1 Year
$179
Workstation and Multi-OS with Basic Subscription
Web support, 2 business day response, unlimited incidents
1 Year
$219
Workstation with Standard Subscription
Business Hours phone support, web support, unlimited incidents
1 Year
$299
Workstation and Multi-OS with Standard Subscription
Business Hours phone support, web support, unlimited incidents
1 Year
$339
——————————————————————————————
That should be a good enough case for open source as a business model.




Making NeW R

Tal G in his excellent blog piece talks of “Why R Developers  should not be paid” http://www.r-statistics.com/2010/09/open-source-and-money-why-r-developers-shouldnt-be-paid/

His argument of love is not very original though it was first made by these four guys

I am going to argue that “some” R developers should be paid, while the main focus should be volunteers code. These R developers should be paid as per usage of their packages.

Let me expand.

Imagine the following conversation between Ross Ihaka, Norman Nie and Peter Dalgaard.

Norman- Hey Guys, Can you give me some code- I got this new startup.

Ross Ihaka and Peter Dalgaard- Sure dude. Here is 100,000 lines of code, 2000 packages and 2 decades of effort.

Norman- Thanks guys.

Ross Ihaka- Hey, What you gonna do with this code.

Norman- I will better it. Sell it. Finally beat Jim Goodnight and his **** Proc GLM and **** Proc Reg.

Ross- Okay, but what will you give us? Will you give us some code back of what you improve?

Norman – Uh, let me explain this open core …

Peter D- Well how about some royalty?

Norman- Sure, we will throw parties at all conferences, snacks you know at user groups.

Ross – Hmm. That does not sound fair. (walks away in a huff muttering)-He takes our code, sells it and wont share the code

Peter D- Doesnt sound fair. I am back to reading Hamlet, the great Dane, and writing the next edition of my book. I am glad I wrote a book- Ross didnt even write that.

Norman-Uh Oh. (picks his phone)- Hey David Smith, We need to write some blog articles pronto – these open source guys ,man…

———–I think that sums what has been going on in the dynamics of R recently. If Ross Ihaka and R Gentleman had adopted an open core strategy- meaning you can create packages to R but not share the original where would we all be?

At this point if he is reading this, David Smith , long suffering veteran of open source  flameouts is rolling his eyes while Tal G is wondering if he will publish this on R Bloggers and if so when or something.

Lets bring in another R veteran-  Hadley Wickham who wrote a book on R and also created ggplot. Thats the best quality, most often used graphics package.

In terms of economic utilty to end user- the ggplot package may be as useful if not more as the foreach package developed by Revolution Computing/Analytics.

Now http://cran.r-project.org/web/packages/foreach/index.html says that foreach is licensed under http://www.apache.org/licenses/LICENSE-2.0

However lets come to open core licensing ( read it here http://alampitt.typepad.com/lampitt_or_leave_it/2008/08/open-core-licen.html ) which is where the debate is- Revolution takes code- enhances it (in my opinion) substantially with new formats XDF for better efficieny, web services API, and soon coming next year a GUI (thanks in advance , Dr Nie and guys)

and sells this advanced R code to businesses happy to pay ( they are currently paying much more to DR Goodnight and HIS guys)

Why would any sane customer buy it from Revolution- if he could download exactly the same thing from http://r-project.org

Hence the business need for Revolution Analytics to have an enhanced R- as they are using a product based software model not software as a service model.

If Revolution gives away source code of these new enhanced codes to R core team- how will R core team protect the above mentioned intelectual property- given they have 2 decades experience of giving away free code , and back and forth on just code.

Now Revolution also has a marketing budget- and thats how they sponsor some R Core events, conferences, after conference snacks.

How would people decide if they are being too generous or too stingy in their contribution (compared to the formidable generosity of SAS Institute to its employees, stakeholders and even third party analysts).

Would it not be better- IF Revolution can shift that aspect of relationship to its Research and Development budget than it’s marketing budget- come with some sort of incentive for “SOME” developers – even researchers need grants and assistantships, scholarships, make a transparent royalty formula say 17.5 % of the NEW R sales goes to R PACKAGE Developers pool, which in turn examines usage rate of packages and need/merit before allocation- that would require Revolution to evolve from a startup to a more sophisticated corporate and R Core can use this the same way as John M Chambers software award/scholarship

Dont pay all developers- it would be an insult to many of them – say Prof Harrell creator of HMisc to accept – but can Revolution expand its dev base (and prospect for future employees) by even sponsoring some R Scholarships.

And I am sure that if Revolution opens up some more code to the community- they would the rest of the world and it’s help useful. If it cant trust people like R Gentleman with some source code – well he is a board member.

——————————————————————————————–

Now to sum up some technical discussions on NeW R

1)  An accepted way of benchmarking efficiencies.

2) Code review and incorporation of efficiencies.

3) Multi threading- Multi core usage are trends to be incorporated.

4) GUIs like R Commander E Plugins for other packages, and Rattle for Data Mining to have focussed (or Deducer). This may involve hiring User Interface Designers (like from Apple 😉  who will work for love AND money ( Even the Beatles charge royalty for that song)

5) More support to cloud computing initiatives like Biocep and Elastic R – or Amazon AMI for using cloud computers- note efficiency arguements dont matter if you just use a Chrome Browser and pay 2 cents a hour for an Amazon Instance. Probably R core needs more direct involvement of Google (Cloud OS makers) and Amazon as well as even Salesforce.com (for creating Force.com Apps). Note even more corporates here need to be involved as cloud computing doesnot have any free and open source infrastructure (YET)

_______________________________________________________

Debates will come and go. This is an interesting intellectual debate and someday the liitle guys will win the Revolution-

From Hugh M of Gaping Void-

http://www.gapingvoid.com/Moveable_Type/archives/cat_microsoft_blue_monster_series.html

HOW DOES A SOFTWARE COMPANY MAKE MONEY, IF ALL

SOFTWARE IS FREE?

“If something goes wrong with Microsoft, I can phone Microsoft up and have it fixed. With Open Source, I have to rely on the community.”

And the community, as much as we may love it, is unpredictable. It might care about your problem and want to fix it, then again, it may not. Anyone who has ever witnessed something online go “viral”, good or bad, will know what I’m talking about.

and especially-

http://gapingvoid.com/2007/04/16/how-well-does-open-source-currently-meet-the-needs-of-shareholders-and-ceos/

Source-http://gapingvoidgallery.com/

Kind of sums up why the open core licensing is all about.

Google AppInventor -Android and Business Intelligence

Here is a great new tool for techies to start creating Android Apps right away- even if you have no knowledge of the platform. Of course there are existing great number of apps- including my favorite Android Data Mining App in R – called AnalyticDroid http://analyticdroid.togaware.com/

Basically it calls the Rattle (R Analytical Tool To Learn Easily) Data Mining GUI -enabling data mining from an Android Mobile using remote computing.

I dont know if any other statistical application is available on Android Mobiles- though SAS did have a presentation on using SAS on IPhone

http://www.wuss.org/proceedings09/09WUSSProceedings/papers/dpr/DPR-Truong.pdf



SAS Mobile -Iphone App

All you need to do is go to http://appinventor.googlelabs.com/about/index.html and request access (yes there is a 2 week approval waiting line)

Because App Inventor provides access to a GPS-location sensor, you can build apps that know where you are. You can build an app to help you remember where you parked your car, an app that shows the location of your friends or colleagues at a concert or conference, or your own custom tour app of your school, workplace, or a museum.
You can write apps that use the phone features of an Android phone. You can write an app that periodically texts “missing you” to your loved ones, or an app “No Text While Driving” that responds to all texts automatically with “sorry, I’m driving and will contact you later”. You can even have the app read the incoming texts aloud to you (though this might lure you into responding).
App Inventor provides a way for you to communicate with the web. If you know how to write web apps, you can use App Inventor to write Android apps that talk to your favorite web sites, such as Amazon and Twitter.

Here is a not so statistical Android App I am trying to create called Hang-Out

using the current GPS location of your phone to find nearest Pub, Movie or Diner and catch Bus- Train based on your location city, the GPS and time of request and schedule of those cities public transport- very much WIP