Red Hat to buy eNovance for OpenStack expertise
Cloud integration company would contribute considerable OpenStack talent to Red Hat
IDG News Service - Red Hat is filling out its OpenStack portfolio by acquiring eNovance, a provider of integration services, for approximately $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 $68 million and ythe rest 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.
- Aberdeen Group: Marketing Analytics for Manufacturing: Forging Customer Insights There are no recalls for poor marketing. Manufacturers need to get their customer intelligence and messaging right the first time. Learn how.
- The Brave New World of Customer-Centric Manufacturing The Unique Opportunity for Manufacturers to Better Understand their Consumers
- See the Possibilities Utilizing Data Visualization Do you simply want to collect data, or do you want to derive business insights from it? What if you could quickly and...
- Big Data, Big Mess: Sound Risk Intelligence Through Complete Context This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- NSS Labs & Cisco Present: Evaluating Leading Breach Detection Systems Today's constantly evolving advanced malware and APTs can evade point-in-time defenses to penetrate networks. Security professionals must evolve their strategy in lockstep to...
- Will the Real Endpoint Threat Detection and Response Please Stand Up? This webinar explores new technologies & process for protecting endpoints from advanced attackers as well as the innovations that are pushing the envelope... All IT Industry White Papers | Webcasts