Red Hat acquires open source cloud vendor

Red Hat, Inc. has confirmed plans to acquire privately-held eNovance, an open source cloud services vendor based in Paris, France, for approximately 70 million Euros.

The eNovance systems integration capabilities and engineering will be combined with Red Hat’s OpenStack platform. Founded in 2008 by Raphaël Ferreira, Nicolas Marchal and Pierre Molin, eNovance helps service providers and large-scale private enterprises build and deploy cloud infrastructures.

While founded in Paris, eNovance has a strong Canadian foothold in Montreal. The company has a subsidiary in the city and its vice-president of worldwide sales is Philippe Theriault, a long time Bell Canada executive. Theriault also worked for Montreal-based iWeb Technologies and LGS Group (an IBM company). The Canadian operation of eNovance is run by Jean Norman Davies, who used to be the principal consultant to Zone France, a communications agency in Montreal.

IDC analysts Laura DuBois and Ashish Nadkarni said about eNovance that they are integrators who will continue to assist cloud service providers and enterprises in building large OpenStack clouds.

Ferreira said eNovance, like Red Hat, understands the transformative power OpenStack can have on the enterprise market when it is both deployed and integrated in the right fashion.

“We are excited to become part of Red Hat, a company that not only offers one of the best-in-class OpenStack distributions on the market today, but also which shares our common belief that OpenStack is best deployed and integrated in a continuous and seamless manner. This shared philosophy, combined with our mutual deep expertise and capabilities will help us achieve our initial goal from the very founding of the company, which was to bring the power and openness of OpenStack to the broadest global audience possible,” Ferreira said.

In addition to the open stack cloud, eNovance manages a multitude of customer Web applications on many on public clouds. The company is a contributor to the OpenStack project and is the only European gold member company of the OpenStack Foundation.

Red Hat and eNovance first partnered in 2013 to deliver OpenStack implementation and integration services to joint customers, helping to accelerate adoption of Red Hat Enterprise Linux OpenStack Platform. Most recently, in May, the two companies announced an expanded collaboration to drive Network Functions Virtualization (NFV) and telecommunications innovations into OpenStack.

The deal shapes up to be a 50 million Euros in cash and 20 million Euros in shares of Red Hat common stock. The transaction is expected to close this month and is subject to customary closing conditions.

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