Red Hat, a provider of Linux and other open-source solutions, has entered into an agreement to buy a French provider of open-source cloud computing services, eNovance. The move increases Red Hat's position in enterprise cloud solutions for the open-source cloud platform OpenStack.
eNovance, founded in 2008, assists service providers and large companies in building and deploying cloud infrastructures, and works with organizations to manage customer Web applications. It has more than 150 global customers, and is one of the contributors to the OpenStack project. Red Hat is the top contributor to the last two distributions of OpenStack, according to the company.
"Red Hat is all in on OpenStack," the company says on its Web site. It has been touting its Enterprise Linux OpenStack Platform, which, it says, provides "all the benefits you've come to expect from Red Hat Enterprise Linux, plus the fastest-growing cloud infrastructure platform from OpenStack." Its OpenStack Cloud Infrastructure Partner Network is, according to Red Hat, the world's largest commercial OpenStack ecosystem.
'World Class' Provider
The price for the acquisition is 50 million euros in cash and 20 million euros in Red Hat common stock, totaling about $95 million. eNovance has offices in Paris, Montreal and Bangalore, India, and Red Hat is based in Raleigh, North Carolina.
Arun Oberoi, Red Hat executive vice president, said in a statement that eNovance was "a world-class cloud computing services provider with a proven track record of successful global deployments."
For its part, eNovance co-founder and CEO Raphael Ferreira told news media that both companies understand "the transformative power OpenStack can have on the enterprise market when it is both deployed and integrated in the right fashion."
Both companies have worked together since last year to provide OpenStack implementation and integration to joint customers, and in May they announced an expanded collaboration to foster Network Functions Virtualization and telecommunications innovations in OpenStack.
Roger Kay, an analyst with industry research firm Endpoint Technologies Associates, told us that the acquisition is "part of the coalition building that's going on right now as large enterprises shift to a hybrid/cloud model." OpenStack, he said, is welcomed by IT departments that don't want to deal with another multi-standard environment.
Earlier this week, Red Hat announced the global availability of its Enterprise Virtualization 3.4, which provided enhancements for virtualization infrastructure and guest support in Red Hat Enterprise Linux 7. Version 3.4 also offered tech previews of OpenStack features, including the importation of a Glance image as a template to provision a new virtual machine.
The company also recently partnered with Cisco and a financial group based in Durham, North Carolina, to create a $26 million venture fund, the Bull City Venture Partners, to support North Carolina-based endeavors. Other participants included Blue Cross Blue Shield of North Carolina and Capitol Broadcasting Company.