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!

Error: Please check your email address.

Tags business issuesopen sourcesoftwareRed Hatcloud computinginternetInfrastructure servicesMergers and acquisitions

Featured

Slideshows

Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments