One final acquisition for the year — open source cloud management vendor, Red Hat has announced that it has agreed to buy enterprise cloud management vendor ManageIQ for US$ 104 million in cash. It has also announced a hike in revenues of 18 percent in Q3.
Red Hat, ManageIQ
With ManageIQ, Red Hat will be able to expand the reach of its hybrid cloud management solutions for enterprise. Both have a long history of working together as ManageIQ is already a member of Red Hat’s Virtualization Certified Partner program.
The cooperation in the past has been based on this membership, with ManageIQ providing Red Hat customers with unified monitoring, management and automation solutions used to reduce the cost of running enterprise clouds.
With the addition of ManageIQ technologies to its portfolio, Red Hat says it will expand the reach of its hybrid cloud management solutions for enterprises.
For enterprise cloud initiatives, effective cloud management is critical. ManageIQ offers robust features, including orchestration, policy, workflow, monitoring and chargeback, that deepen Red Hat’s cloud management capabilities and bring the promise of open hybrid cloud a step closer for the industry,” said Paul Cormier, President, Products and Technologies, Red Hat.
The principal technology that ManageIQ will bring is ManageIQ’s Hybrid Cloud Operations Management. Red Hat hopes it will complement its cloud and virtualization management tools – Red Hat CloudForms and Red Hat Enterprise Virtualization – by providing integrated lifecycle management.
The lifecycle management includes activities like server and storage provisioning, workload optimization, policy-based compliance, chargeback, virtual machine lifecycle management, discovery and control and analytics across heterogeneous private clouds and virtualized datacenters.
ManageIQ was also a strategic buy for Red Hat as it looks for a stronger position in the cloud management market, which analysts estimate will be worth US$ 3 billion by 2016.
Red Hat Q3 Figures
Meanwhile, Red Hat has also shown just how lucrative open source can be with bump in revenues reflecting the increasing popularity of open source solutions.
According to the figures, revenues for the quarter ending November 30 were US$ 344 million, up 18 percent year-over-year, with subscription revenue giving the company a lift with US$ 294 million, up 19 percent in one year.
In a statement issued with the figures, Red Hat says that the move to open, hybrid architectures is driving the revenues and that there is a lot more action here to be had in the coming year:
Since October of last year we have completed three acquisitions, and are announcing a fourth today to expand our portfolio of open source solutions and enlarge our addressable market. As our enterprise customers move to open, hybrid cloud architectures, we are addressing their needs with a clear roadmap based on industry-leading open source technologies,” said Jim Whitehurst, President and Chief Executive Officer, Red Hat.
However, net income was down 9.1 percent to US$ 34.8 million, with the costs of pushing itself into new market areas accounting for the decline from US$ 38.2 million for the same period last year.