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Open Source is the Building Block for Digital Transformation

As the world’s leading provider of open source solutions, Red Hat continues to expand the possibilities of their offerings. Since IBM completed their acquisition of Red Hat, many have been curious as to the direction both these companies will be looking to take in the future. Yet, it's still status quo as both organisations continue with their independent operations.

According to Damien Wong, Vice President and General Manager, Asian Growth and Emerging Markets, Red Hat, both IBM and Red Hat believe that the multi-cloud approach is the way forward and they aim to become the leading hybrid and multi-cloud provider.

“Red Hat is still Red Hat. We are true to our principals. We keep our own brand and keep Red Hat developer programs. We remain neutral and independent. And yes, we will compete with IBM.”

Having said that at a media session during the Red Hat Forum in Kuala Lumpur, Damien added that innovation today needs to be scaled safely. And one of the best ways to that is with open source. By being able to share ideas and innovations, organisations and developers will be able to overcome the challenges of discovery and creation.

“Digital transformation requires good technology, knowledge of how you are going to use the technology and culture takes innovations and creates real value to solve problems, which is where Red Hat has been extremely successful.”

Damien pointed out that statics show 89% of IT leaders say enterprise open source is important to their organisation's strategy while 59% will increase the use of enterprise open source over the next 12 months. Also, 68% of IT leaders reported an increase in the use of an open-source in the past year.
“We have been able to take raw open-source innovation and address the needs of companies in a way they are able to consume it. Open source is the building block for digital transformation today.”

Malaysian companies realise these and are working with Red Hat on their digital transformation journey. Among the enterprises working with Red Hat are Hong Leong Bank and Alliance Bank. For Hong Leong Bank, the bank started looking at open source and open platform in 2016. They migrated a vast majority of customer systems like online banking with Red Hat. The bank leveraged on open source and reap the benefits from it. They have noticed a 40% to 60% improvement in cost operations.

Eric Quah, Country Manager Red Hat Malaysia said Red Hat has been having conversations with Malaysian clients and their conversations are always of the people, which is the workforce.

“If you look at the next generation of the workforce coming into the market, many will say the only use open source. And for enterprises who do not adopt open source, they miss the opportunity of hiring these talents. When hiring millennials, it is not just about looking at what they want, but also the types of tools that they are using. It will be a factor.”

Speaking of talent and tools, we asked Damien on his view on Red Hat’s competitors increasing adoption of containers and how this is affecting their strategies.

“This is a clear endorsement of our strategy being the right one. If you are leading in a race, and no one is chasing you, you’re probably going the wrong direction. But if others are catching up, you are on the right path. This is the right direction and with everyone playing catch up, it’s only a great thing for the community. Participation and robust collaboration among commercial competitors will make it stronger.”

With that said, we can surely tell that Red Hat have their strategies well planned for the long run.

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