Red Hat Posts Q3 Revenue Hike, Buys Cloud Software Company

Open-source software and cloud management vendor Red Hat Thursday reported strong quarterly earnings and unveiled the acquisition of cloud software vendor ManageIQ.

For its third fiscal quarter, Red Hat, Raleigh, N.C., reported revenue of $343.6 million, up 18 percent from $290 million reported in the same period last year.

[Related: 10 Key Drivers Of Private/Hybrid Cloud Adoption]

Net income for the quarter was $34.7 million, compared with $38.2 million in the year-ago quarter.

Jim Whitehurst, Red Hat president and CEO, said the revenue growth was due to its strong reputation as a trusted IT vendor and to its move to cloud technologies.

“As our enterprise customers move to open, hybrid cloud architectures, we are addressing their needs with a clear road map based on industry-leading open-source technologies,” Whitehurst said in a statement.

Meanwhile, Red Hat paid $104 million for ManageIQ, an enterprise cloud management and automation provider.

ManageIQ, Mahwah, N.J., helps companies deploy and manage private clouds, virtualized infrastructures and virtual desktops, Red Hat said.

Bryan Che, Red Hat’s senior director and general manager for cloud business, said in an interview with CRN that ManageIQ’s technology will extend Red Hat’s enterprise hybrid cloud management capabilities.

“They have a set of technologies that are very strong in [cloud-based] operational management, such as orchestration of cloud workloads, monitoring and charge-back,” Che said. “Red Hat has a very strong portfolio and strategy for building hybrid clouds for businesses.

“ManageIQ will be able to bring operational management capabilities to our portfolio,” he added.

Red Hat said ManageIQ technologies will integrate with and extend several of its cloud management products, including Red Hat CloudForms for managing hybrid clouds and Red Hat Enterprise Virtualization for virtualization management.


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This article was written by: Avnet SellCloud

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