Menu
Red Hat adds to OpenStack expertise with eNovance buy

Red Hat adds to OpenStack expertise with eNovance buy

The cloud integration company could contribute considerable OpenStack talent to Red Hat

Red Hat is filling out its OpenStack portfolio by acquiring eNovance, a provider of integration services, for approximately US$95 million in cash and stock.

Red Hat will use the engineering and integration expertise of eNovance to strengthen the support for Red Hat's own OpenStack distribution, the Red Hat Enterprise Linux OpenStack Platform.

Since the debut of OpenStack in 2010, eNovance has built up a specialty in installing and maintaining large-scale OpenStack deployments on behalf of organizations, allowing them to run cloud computing services for internal use or as a service. ENovance was founded in 2008 to help customers manage Web applications deployed in public cloud services.

The purchase of eNovance happens at a crucial time for Red Hat, which is making OpenStack a core component of its enterprise subscription line for open source software. Analyst firm 451 Research has predicted that annual revenue stemming from the use of OpenStack will top $1 billion by 2015.

Hewlett-Packard has also released its own OpenStack distribution, called Helion, and, like Red Hat, plans to offer deployment and hosted services around the cloud software.

Both companies are also building partner networks that will use these OpenStack distributions in products and services for specific industries or geographical areas.

ENovance has a deep pool of OpenStack expertise, according to Red Hat. It is one of the top contributors to the development of the open source software used for running cloud services. In 2013, engineers and developers from eNovance helped Red Hat ready its OpenStack distribution for release.

Last month, the two companies also pledged to work together to build virtual networking functionality in OpenStack, through the Network Functions Virtualization (NFV) project.

Red Hat will acquire eNovance for approximately €50 million cash ($68 million) and €20 million in shares of Red Hat common stock. Red Hat plans to close the deal this month.

A privately held company, eNovance maintains offices in Paris, Montreal, San Francisco and Bangalore. Cisco, Alcatel Lucent, Orange, France Television and Ericsson have all used the company's services.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computingopen sourceMergers and acquisitionsinternetbusiness issuessoftwareRed HatInfrastructure services

Featured

Slideshows

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

This exclusive Reseller News Exchange, in association with Arrow ECS ANZ, ForeScout and StorageCraft, went on the road to debate the early implications of GDPR in New Zealand, extracting opportunities while evaluating challenges for the channel in the year ahead.

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington
Show Comments