These two factors could be huge for Micron

Jim Whitehurst, CEO of Red Hat, told CNBC on Friday that Wall Street was not happy with Red Hat's missing results in the second quarter, but the company's prospects are much brighter.

An open source software provider that helps businesses get started in the cloud, Red Hat draws the bulk of its business from its Enterprise Linux operating system, which helps manage enterprise applications via cloud private and public.

But the modest growth of 8% in the Enterprise Linux division in the second quarter does not mean that business is slowing down permanently, Whitehurst told Cramer in an exclusive interview.

"Two and a half years ago, we entered into three-year agreements with our customers, and by signing three-year Linux agreements, we have time to sell them new products," he said. added. I said.

"The problem is that these three-year agreements are generally fixed and their value does not increase every year.Most of our Linux activities and these three-year contracts are not developing at all," he says. said Whitehurst. continued.

As the three-year agreements come closer to their renewal dates, however, the Linux business is expected to increase, the CEO said.

Watch and read more about his full interview here.