Red Hat Reports Growth and Acquisition

Strong quarterly earnings have been reported by Red Hat of Raleigh, North Carolina, an open-source software and cloud management vendor. Further to this news, it also announced that it has purchased ManageIQ, a cloud software vendor, for $104 million.  

A revenue of $343.6 million in its third fiscal quarter (an increase of 18 percent from $290 million in the same period last year) was also revealed by Red Hat.

$34.7 million was the net income for the quarter, which contrasts with the $38.2 million net income from the same period last year. The president and CEO of Red Hat, Jim Whitehurst, stated that due to the company's strong reputation as a trusted IT vendor and its utilization of more cloud technologies, Red Hat's revenue growth is not surprising.

Whitehurst stated: “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.”

Mahwah, New Jersey-based ManageIQ, an enterprise cloud management and automation provider, assists in deploying and managing private clouds, virtualized infrastructures and virtual desktops to companies.

According to Red Hat's senior director and general manager for cloud business, Bryan Che, the company will be able to successfully expand its hybrid cloud management through the use of ManageIQ technologies.

Che stated: “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. 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.”

Red Hat's cloud management products can be extended and integrated with ManageIQ technologies; this includes CloudForms, which manages hybrid clouds, and Red Hat's Enterprise Virtualization for the management of virtualization. (CY) Link