Containerization, and more specifically Kubernetes, is becoming more widely adopted by companies of varying sizes and industries¹. Red Hat OpenShift is an enterprise-ready Kubernetes container platform built for an open hybrid cloud strategy.
A Forrester Total Economic Impact™ (TEI) study commissioned by Red Hat, The Partner Opportunity For Red Hat OpenShift², reports that Red Hat OpenShift creates a potential revenue opportunity for partners up to 2.5 times the subscription revenues through implementation and ongoing management services, and building their own solutions that increase the value of Red Hat OpenShift.
The recent Forrester Consulting study reveals how Red Hat partners can benefit from Red Hat OpenShift, including potential opportunities for increased revenue, larger deal size, more closed deals, and providing more strategic value to customers.
As part of the study, Forrester interviewed 15 decision makers across 11 Red Hat partners about the business and financial value they have achieved with Red Hat OpenShift.
Financial results for Red Hat partners
There were five main revenue opportunities identified by the Red Hat partners who were interviewed.
- Forrester reports Red Hat partners’ average revenue opportunity is 10% gross margin on selling Red Hat OpenShift subscriptions.
- Red Hat partners interviewed by Forrester reported an average of 30% gross margin through project-based work (Red Hat OpenShift deployments, modernization, etc.).
- Red Hat partners interviewed by Forrester who are selling managed services reported the managed services value was typically 75% of the total Red Hat OpenShift subscription revenue.
- Forrester reports Red Hat partners’ average revenue opportunity is 70% gross margin on building and selling technology solutions.
- Red Hat partners interviewed by Forrester reported the number of new deals is growing an average of 30% per year when Red Hat OpenShift is included.
“Our win rates when including OpenShift are 70% to 80%. Non-OpenShift deal win rates are only 40% to 50%.”
Director, Red Hat partner
Business benefits for Red Hat partners
In addition to the financial benefits, Red Hat partners interviewed experienced other key benefits.
- Trusted advisor and strategic partner status - Each Red Hat partner interviewed reports seeing their status with customers increase through Red Hat’s brand and product leadership and demonstrated leadership in innovation and growth.
- Increased employee satisfaction - Having a Red Hat OpenShift practice has helped Red Hat partners hire and retain technical resources as they are able to work with innovative technologies.
“Our brand gets elevated by Red Hat’s brand and Red Hat’s open source culture. This helps us stand out from our competitors and creates more engaging discussions with prospects and stronger conversations with customers.” Head of strategic partners and products, Red Hat partner
To learn more about the partner opportunity for Red Hat OpenShift and the benefits of partnering with Red Hat, download the full study.