The open source software major is planning to spend tens of millions of dollars in China in the next five years as part of a broader effort to lift growth in Asia, which currently contributes a fifth to Red Hat's revenues, president and chief executive Jim Whitehurst told CNBC.
The North Carolina-based company is expected to cross $2 billion in revenues this year with a target to hit $5 billion in around five years. It is aiming to more than double the Asian ex-Japan share of its revenue to 20 to 25 percent in the same period—up from 10 percent now.
"China is like skipping that whole client server wave that is going from in mainframe servers to these new architectures which are all built on open source, so it's a little bit like the analogy of laying the phone wires to going straight to mobile," Whitehurst told CNBC's Managing Asia.
The issue of how much access governments and law enforcement agencies can have to companies' proprietary technology has been hotly debated recently. Red Hat has a natural edge here.