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

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesopen sourcesoftwareRed Hatcloud computinginternetInfrastructure servicesMergers and acquisitions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?