Seeking Alpha

Red Hat buys French cloud integration firm for $95M

Ahead of this afternoon's FQ1 report, Red Hat (RHT -0.2%) announces it's buying eNovance, a startup that helps design, build, and run cloud infrastructures based on the OpenStack platform, for €50M in cash + €20M in stock.

eNovance's services are used by 150+ enterprise and service provider clients, including Alcatel-Lucent, Cisco, Orange, and AXA. They'll complement Red Hat's Red Hat's OpenStack software and services offerings.

Red Hat has bet big on OpenStack as it tries to cut its Linux dependence. OpenStack's backers, which also include Rackspace, IBM, and H-P, argue the platform's open-source natures eliminates the vendor lock-in that comes from using cloud infrastructure services from the likes of Amazon (still towers over the market), Google, and Microsoft.

Rivals have accused Red Hat of refusing to support Linux clients if they adopt a non-Red Hat OpenStack distribution. Red Hat has argued it would cost too much to support every OpenStack distribution, and that the tight integration between Red Hat's Linux and OpenStack offerings makes using alternative OpenStack distributions with its OS a bad idea.

Previous: Red Hat buys storage software firm for $175M

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