Ushers in New Era of Software-Based Open Storage Platforms to Unify
On-Premise and Cloud
Adds Scale-Out Management of Unstructured Data to Red Hat Portfolio
with Gluster's Disruptive Open Source Storage Solutions
RALEIGH, N.C.--(BUSINESS WIRE)--
Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source
solutions to the enterprise, today announced that it has signed a
definitive agreement to acquire Gluster, Inc., a leading provider of
scale-out, open source storage solutions for standardizing the
management of unstructured data. With this acquisition, Red Hat will
define a new baseline for how enterprise IT manages the explosion of big
data, whether deployed on-premise or spanning into the public cloud. Red
Hat is expanding into a critical part of enterprise infrastructure,
enabling it to deliver open storage solutions that protect customer
investments as they approach the new era of computing.
"The explosion of big data and the new paradigm of cloud computing are
converging, forcing IT to re-think storage investments that are
cost-effective, manageable and scale for the future," said Brian
Stevens, CTO and vice president, Worldwide Engineering at Red Hat. "Our
customers are looking for software-based storage solutions that manage
their file-based data on-premise, in the cloud and bridging between the
two. With unstructured data growth (such as log files, virtual machines,
email, audio, video and documents), the 90's paradigm of forcing
everything into expensive, single-system DBMS residing on an internal
corporate SAN has become unwieldy and impractical."
Founded in 2005, Gluster's goal was to simplify storage using open
source software and commodity hardware. The heart of Gluster is
GlusterFS, a software-only, scale-out storage system. It allows
enterprises to combine large numbers of commodity storage and compute
resources into a high-performance, centrally-managed and
globally-accessible storage pool. By combining commodity economics with
a scale-out approach, customers can deploy abundant storage without
compromising on cost, performance and manageability. Gluster has emerged
as an innovative open source leader, relied upon by companies such as
Pandora, Box.net and Samsung to efficiently manage large volumes of data.
"We are extremely pleased to be joining Red Hat," said AB Periasamy,
co-founder and CTO of Gluster. "We believe this is a perfect combination
of technologies, strategies and cultures and is a great development for
our customers, employees, investors and community. Gluster started off
with a goal to be the Red Hat of storage. Now, we are the storage of Red
"Enterprises and service providers have struggled to manage their
rapidly expanding unstructured data stores with conventional storage
systems," said Henry Baltazar, senior analyst of The 451 Group. "The
scale out storage technology and expertise Red Hat is gaining from the
acquisition of Gluster will serve as a powerful foundation for future
public, private and hybrid storage clouds."
Red Hat has agreed to acquire Gluster, a privately-held company, for
approximately $136 million in cash. As part of the transaction, Red Hat
will also assume unvested Gluster equity outstanding on the closing date
and issue certain equity retention incentives. The transaction is
expected to close in October, subject to customary closing conditions.
The acquisition is expected to have no material impact to Red Hat's
revenue this fiscal year but should begin to grow next year based on a
subscription revenue model. Red Hat is reaffirming its Q3 and fiscal
2012 guidance, provided on its September 21, 2011 earnings call, for
revenue, non-GAAP operating margin, non-GAAP earnings per share and
operating cash flow, assuming the exchange rates of September 20, 2011
identified on the call. Non-GAAP operating margin and EPS estimates
exclude the impact of stock-based compensation and amortization of
acquisition-related intangibles. Stock-based compensation and
amortization expenses are estimated to increase by $1 million and $2
million, respectively, per quarter.
"Industry analysts estimate the total addressable market for
unstructured data storage at approximately $4 billion and growing. This
is an exciting new area of potential growth for Red Hat and one in which
we intend to invest aggressively," said Charlie Peters, EVP and CFO of
Red Hat. "While we expect Red Hat's operating income to continue to grow
nicely next year based on revenue growth, we expect that non-GAAP
operating margin for fiscal year 2013 could be approximately 150 basis
points lower than fiscal 2012 as we make additional investments to help
realize Gluster's potential. At that level, Red Hat's operating margin
will still be among the highest compared to other high-growth software
companies when they were at the $1 billion revenue stage," he added. Red
Hat expects to offer additional guidance for fiscal year 2013 on its
fourth quarter earnings call.
To learn more about this announcement, join Red Hat and Gluster
executives for a webcast that will broadcast live at 12pm ET on October
4, 2011. To join the live webcast or to watch the replay, visit http://www-waa-akam.thomson-webcast.net/us/dispatching/?event_id=a91698cb4345fbc4096be08519bb66f3&portal_id=af9b227bf07c733390c2738ee0330646.
For more information about Red Hat, visit www.redhat.com.
For more news, more often, visit www.press.redhat.com.
About Red Hat, Inc.
Red Hat, the world's leading provider of open source solutions and an
S&P 500 company, is headquartered in Raleigh, NC with more than 70
offices spanning the globe. Red Hat provides high-quality, affordable
technology with its operating system platform, Red Hat Enterprise Linux,
together with cloud, virtualization, applications, management and
service-oriented architecture (SOA) solutions, including Red Hat
Enterprise Virtualization and JBoss Enterprise Middleware. Red Hat also
offers support, training and consulting services to its customers
worldwide. Learn more: http://www.redhat.com.
Gluster is a leading provider of open source storage solutions for
public, private and hybrid clouds. Over 150 enterprises worldwide have
used Gluster in commercial deployments ranging from a few terabytes to
multiple petabytes, across the most demanding applications in digital
media delivery, healthcare, internet, energy and biotech. Gluster
is privately-held and headquartered in Sunnyvale, California. Visit us
Forward Looking Statements
Certain statements contained in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
provide current expectations of future events based on certain
assumptions and include any statement that does not directly relate to
any historical or current fact. Actual results may differ materially
from those indicated by such forward-looking statements as a result of
various important factors, including: risks related to the integration
of acquisitions and the ability to market successfully acquired
technologies and products; delays or reductions in information
technology spending; the effects of industry consolidation; the ability
of Red Hat to compete effectively; uncertainty and adverse results in
litigation and related settlements; the inability to adequately protect
Red Hat intellectual property and the potential for infringement or
breach of license claims of or relating to third party intellectual
property; the ability to deliver and stimulate demand for new products
and technological innovations on a timely basis; risks related to data
and information security vulnerabilities; ineffective management of, and
control over, Red Hat's growth and international operations;
fluctuations in exchange rates; and changes in and a dependence on key
personnel, as well as other factors contained in our most recent
Quarterly Report on Form 10-Q (copies of which may be accessed through
the Securities and Exchange Commission's website at http://www.sec.gov),
including those found therein under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations". In addition to these factors, actual future performance,
outcomes, and results may differ materially because of more general
factors including (without limitation) general industry and market
conditions and growth rates, economic and political conditions,
governmental and public policy changes and the impact of natural
disasters such as the earthquakes and floods, including events in Japan.
The forward-looking statements included in this press release represent
Red Hat's views as of the date of this press release and these views
could change. However, while Red Hat may elect to update these
forward-looking statements at some point in the future, Red Hat
specifically disclaims any obligation to do so. These forward-looking
statements should not be relied upon as representing Red Hat's views as
of any date subsequent to the date of the press release.
Red Hat, Inc., Red Hat, the Shadowman logo and JBoss are, among others,
registered trademarks of Red Hat, Inc. or its subsidiaries in the U.S.
and other countries. Linux is a registered trademark of Linus Torvalds.
All other product and service names mentioned are the trademarks of
their respective companies.
Red Hat Inc.
Tom McCallum, 919-754-4630
Source: Red Hat, Inc.
News Provided by Acquire Media