Operator

Your next question is from the line of Adam Holt with Morgan Stanley.

Adam Holt – Morgan Stanley

Good afternoon. You mentioned you had a lot of success renewing the largest customers that came up for renewal in the quarter. I was hoping you could comment on what renewal rates were like outside of the top 25 for the rest of the companies that came up for renewal both in terms of the percentages and of the dollar value as well. And then just, if you look at the quarter, what was the sort of the rough mix between renewals and new billings in the fourth quarter?

Charles Peters

The first thing is on the renewal rate it continues to get better based upon all of the work we''ve been doing really over the last couple of years, which we''ve discussed before. Most of which has to do with gathering information about the end customer in various ways if we sell it through the channel. Business that we sell direct where we have the information, we have a very high renewal rate, so nothing really new to report other than continuous incremental improvement. Relative to the mix of renewals versus new business, as Jim said, we had 40,000 new customers during the year. It''s a very large number. Some of those customers would clearly make it into the top 30 list that we talk about each quarter. But the vast majority, are going to be customers that are starting off small. They may be could be as small as one subscription to as much as five or 10 that eventually grow over time.

Adam Holt – Morgan Stanley

And if I could just ask one quick follow up on the, on some of the large sales your getting from converting people from free-to-pay particularly around the customer audit program. Now that you are into that a couple of months, I know it''s still early, but do you have any sense for how big you think the opportunity is within your install base of people that are either abusing and not fully paying or can be converted to a bigger contract?

James Whitehurst

Frankly, I think the bigger opportunity is people who are trying to support their own open source, hiring engineers and trying to put and do their own support and finally coming to the realization that it is very expensive. It’s probably not as…doesn''t have the same value as buying a subscription from us. I do think in some cases that mostly inadvertent I think some customers may have deployed more than they should have but I don''t think that''s the biggest opportunity.

Adam Holt – Morgan Stanley

Terrific thank you.

Operator

Your next question is from the line of Mark Murphy with Piper Jaffray.

Mark Murphy – Piper Jaffray

Thank you, just a follow up question on the free-to-pay conversion rates. Any sense for what that conversion rate is, and is 10% a descent guess? And then any sense on how that would trend in this fiscal year and what types of actions can you take to accelerate that pace?

Charles Peters

On the free-to-pay at this point if you mean if the conversion rate is at 10% of the total billings, the answer would be certainly no.

Mark Murphy – Piper Jaffray

No, Charlie. I actually mean, sorry I wasn''t clear on that. If you look at the number of unpaid RHEL servers in the marketplace, what percentage of those do you think are converting to paid annually?