Core Enablement Video

Got Red Hat?
A Theoretical Application of our Business Models

The foundational physics of how Red Hat software is sold. Three delivery models, one milk analogy — everything builds on this.

Sell — Commercial
Open Attach — Platforms & Devices
Closed Attach — Services / Build
Training Library

Deep-Dive Trainings

Each topic has a narrated video and an interactive hands-on module. Watch, then practice.

Buying Programs
Commercial
Buying Programs
HCS, ECS, ESP & ESP Lite — committed spend, unlimited access, and how to choose the right program.
Buying the milk in bulk direct from the farm
30 scenes ▶ Watch Video
🎮 Practice — Interactive Module
Cloud Marketplaces
Commercial
Cloud Marketplaces
1P vs 3P, private offers, commitment burndown, the double-dip, and transaction types.
The farmer’s stall at the digital market
24 scenes ▶ Watch Video
🎮 Practice — Interactive Module
Platforms and Devices
Open Attach
Platforms & Devices
OEM, SVP, Solution Builder, Cloud Console & Marketplace — the full Open Attach landscape.
Milk attached to Moolit Packer’s dispensers
24 scenes ▶ Watch Video
🎮 Practice — Interactive Module
Embedded Program
Closed Attach
Embedded Program
Closed-box model: partner qualification, pricing, deal structure, commitment models & ASP.
Baker uses our milk in their cake — customers never know
25 scenes ▶ Watch Video
🎮 Practice — Interactive Module
Closed Attach
ASP (Appliance Subscription)
Embedded ESP — unlimited deployments at a fixed annual fee for fast-growing ISVs.
Unlimited milk deliveries to the bakery — one flat fee
22 scenes ▶ Watch Video
🎮 Practice — Interactive Module
CCSP
Closed Attach
CCSP Program
Managed services: program tiers, pricing, special bid discounting & compliance.
Our milk poured through the partner’s coffee machine
26 scenes ▶ Watch Video
🎮 Practice — Interactive Module
Quick Reference

Explore by Topic

Click a category to expand key facts pulled from the training content.

Buying Programs
HCS • ECS • ESP • ESP Lite
▼

HCS (Hybrid Committed Spend)

  • Budget package: commit minimum spend, get volume discounts, allocate across the full commercial portfolio.
  • Commitment is a floor, not locked line items. Shift unused budget between categories.
  • Double-dip: marketplace purchases burn both HCS and cloud commitments (AWS EDP, Azure MACC) simultaneously.
  • No mid-term reductions, no pulling in renewals, no price changes. Unused commitment is balance billed.
  • Qualification: $2M min, 30% ARR growth, 50% upfront, 1–3 year term.

ECS (Essential Committed Spend)

  • Same committed-spend concept as HCS with a lower barrier: $500K min vs $2M.
  • Pre-approved vendors only. No custom requests. CCSP, SVP, OEM excluded.
  • Direct, Channel, Marketplace, and Embedded routes included.
  • Migration path: land at ECS, prove value, graduate to HCS when spend exceeds $2M.

ESP (Enterprise Subscription Program)

  • Unlimited access to one product category. Fixed price, no usage cap during term.
  • RDE (Reasonable Deployment Estimate) drives base price with ~20% risk buffer.
  • True-up at renewal: mid-term check-in, final report 90 days before end.
  • Requirements: $2M annual per product, dedicated TAM, full quarter to close.
  • Ramped pricing required each year (no flat pricing allowed).

ESP Lite

  • RHEL-only unlimited access. Same RDE model as ESP, scoped to one product.
  • Simplified risk uplifts: 5% (high growth), 10% (multi-year), 20% (lower growth).
  • Minimum $250K (vs $2M for full ESP). Ideal for CentOS/Oracle Linux migrations.
  • Thresholds must be met. No exceptions.
Cloud Marketplaces
1P vs 3P • Transaction Types • Double-Dip
▼

1P vs 3P Distinction

  • 1P (Console): hyperscaler controls pricing, provides L1–L2 support, no direct Red Hat contract. Open Attach.
  • 3P (Marketplace): Red Hat controls pricing via private offers, full L1–L3 support. Commercial (Sell).
  • Simple rule: 1P = hyperscaler owns it. 3P = Red Hat owns it.

Transaction Types

  • Sub Listing: commercial subs, portable (cloud + on-prem). Red Hat support. Annual only.
  • Private Offer: cloud-native subs, no on-prem. Hourly/monthly/annual.
  • DSOR: distributor listing. Only route supporting two-tier distribution.
  • Console: hyperscaler bundles with infra. Hyperscaler support. No Red Hat contract.

Commitment Programs

  • AWS EDP: 100% drawdown. 3P capped at 25% of EDP.
  • Azure MACC: 100% drawdown. No cap.
  • GCP CUD: 100% drawdown for 1P and 3P.
  • Oracle: 100% drawdown.

The Double-Dip

  • One marketplace purchase burns both Red Hat HCS and cloud commitment (EDP/MACC/CUD) simultaneously.
  • One transaction, two commitments. The primary reason to route deals through marketplace.
Platforms & Devices
OEM • SVP • Solution Builder • Cloud Routes
▼

OEM (Hardware Pre-Load)

  • Manufacturer pre-loads RHEL on servers, workstations, edge devices. Ships as a package.
  • Partner L1–L2 support (first call). Red Hat L3 for RHEL-specific issues.
  • Discounts: 50–65% off list. Private pricebook. Arrears reporting.
  • Requires Partner Technical Account Manager (P-TAM).

SVP (Solution Value Partner)

  • Deep integration of RHEL, OpenShift, Ansible into partner ecosystem solutions.
  • Same support model: partner L1–L2, Red Hat Partner Support Premium.
  • Discounts: 40–55%. Requires SVP Enablement SKU + P-TAM.
  • Broader than OEM: software integration, not just hardware pre-load.

Solution Builder

  • Light integration through distribution. L1 support via TSANet.
  • Standard: ~32% discount. Plus: direct relationship, ~35%.
  • Stepping stone to SVP as the relationship grows.

Cloud Console vs Marketplace

  • Console (1P): hyperscaler creates image, bundles with infra, owns relationship.
  • Marketplace (3P): Red Hat lists and sells. Controls pricing and support.
  • Marketplace = farmer’s stall. Console = milk in Mooble Cow’s vending machine.
Embedded Program
Qualification • Pricing • Commitment Models • Red Flags
▼

What Is Embedded?

  • Partner embeds Red Hat (typically RHEL) into their product, ships as a closed-box. Customer never touches the Red Hat layer.
  • Partner = baker. Red Hat = ingredient. Customer sees only the partner’s brand.
  • Ideal partner: ISV or IHV building appliances or vertical solutions.

Qualification Criteria

  • Active Red Hat Partner Agreement.
  • Must add meaningful value (own app/hardware, not resale).
  • Closed-box: end customer cannot access Red Hat layer.
  • Partner must provide L1 and L2 frontline support.

Pricing Model

  • Embedded list prices aligned with commercial SKU list prices.
  • Standardized: commercial NAT plus 40% additional discount for direct.
  • Delegated discount framework for distributors by commitment level.

Commitment Models

  • Upfront: full payment at once. Highest discount.
  • Prepaid: scheduled installments. Strong discounts + flexibility.
  • PAYG: quarterly usage reporting. Most flexible, lowest discount.
  • Firm Commits: multi-year contractual commitment. Most aggressive discounts.

Red Flags

  • Partner wants to resell without integration. Deal-breaker.
  • Partner won’t provide frontline support. Deal-breaker.
  • End customer gets direct access to Red Hat software. Deal-breaker.
ASP (Appliance Subscription)
$250K threshold • Unlimited deployments • ESA SKUs
▼

What Is ASP?

  • “Embedded ESP” — fixed annual fee for unlimited deployment. No per-device counting.
  • Same Closed Attach model. Only the commercial model changes: per-unit → unlimited.
  • Targets high-growth ISVs distributing appliances at scale.

Requirements

  • $250K minimum (vs $2M for standard ESP).
  • Year one: ≥10% growth in annual contract value. Growth required each year.
  • Supports Embedded + SaaS use cases. No product line limits.

Products & SKUs

  • RHEL and OpenShift. Six SKUs with ESA prefix.
  • Includes RHEL ELS, RHEL Premium, OKE, OPP, AI Accelerator, ODF Essentials.

Approvals

  • Follows existing ESP approval process via BU Guidance ticket.
  • RHEL ASP: Deal Architect can approve alone (standard NAT).
  • No exceptions — all deals go through this process.
CCSP Program
Tiers • Support Models • Special Bid • Compliance
▼

Program Tiers

  • Ready: entry level. 1+ product, 2 seller credentials.
  • Advanced: business plan. 3 seller + 2 technical + 1 cert. MDF discounts.
  • Premier: strategic. Exec sponsor. 6 seller + 4 technical + 2 certs.

Product Catalog

  • Full portfolio: RHEL, OpenStack, OpenShift, Quay, Ansible, Satellite, ACM, ODF, Ceph, JBoss.
  • Specialized: SAP and IBM Power offerings.

Support Models

  • Full Support: partner documents, escalates to Red Hat anytime.
  • Diagnostic: deeper diagnosis first. Requires 2+ RHCE.
  • Partner owns all end-customer support. Red Hat never talks to end customer.

Special Bid Discounting

  • NAT-equivalent discounts per end-customer. Dedicated yearly SKUs only.
  • CCSP discount = Commercial NAT minus 40% (transfer price).
  • Must be fully passed through. Cannot combine with Volume Discount Tables.

Reporting & Compliance

  • Monthly royalty reporting in arrears.
  • Revenue unit matching: buy monthly = sell monthly.
  • Internal use: up to 50% of reported subs. Must use certified hypervisors.
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