Red Hat advances frictionless IT with simplified management for
hybrid clouds, OpenStack environments and container-based services
RALEIGH, N.C.--(BUSINESS WIRE)--
Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source
solutions, today announced that it has signed a definitive agreement to
acquire Ansible, Inc., a provider of powerful IT automation solutions
designed to help enterprises move toward frictionless IT. Ansible's
automation capabilities, together with Red Hat's existing management
portfolio, will help users drive down the cost and complexity of
deploying and managing both cloud-native and traditional applications
across hybrid cloud environments. With today's announcement, Red Hat
expands its leadership in hybrid cloud management, OpenStack and
containers.
Ansible's simple and agentless approach, unlike competing solutions,
does not require any special coding skills, removing some of the most
significant barriers to automation across IT. From deployment and
configuration to rolling upgrades, by adding Ansible to its hybrid
management portfolio, Red Hat will help customers to:
-
Deploy and manage applications across private and public clouds.
-
Speed service delivery through DevOps initiatives.
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Streamline OpenStack installations and upgrades.
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Accelerate container adoption by simplifying orchestration and
configuration.
The upstream Ansible project is one of the most popular open source
automation projects on GitHub with an active and highly engaged
community, encompassing nearly 1,200 contributors. Ansible automation is
being used by a growing number of Fortune 100 companies, powering large
and complex private cloud environments, and the company has received
several notable accolades, including a 2015 InfoWorld Bossie
Award, recognizing the best open source datacenter and cloud software.
With the addition of Ansible, Red Hat's open hybrid cloud and IT
management solutions will include:
-
Red Hat CloudForms, an open management platform that provides
orchestration, governance and policy-based control across hybrid
clouds enabling self-service provisioning, and resource management as
well as quota enforcement, metering and chargeback.
-
Red Hat Satellite, a comprehensive lifecycle management
solution with integrated infrastructure provisioning, software
distribution, patch management and auditing capabilities.
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Ansible and Ansible Tower, an IT automation and DevOps platform
that provides significantly simplified multi-tier application
deployment and IT automation across hybrid clouds.
The acquisition is expected to have no material impact to Red Hat's
revenue for the third and fourth quarters of its fiscal year ending Feb.
29, 2016 ("fiscal 2016"). Management expects that non-GAAP operating
expenses for fiscal 2016 will increase by approximately $2.0 million, or
($0.01) per share, in the third quarter and approximately $4.0 million,
or ($0.02) per share, in the fourth quarter as a result of the
transaction. Red Hat calculates non-GAAP operating expense by
subtracting from GAAP operating expense the estimated impact of non-cash
share-based compensation expense, which for fiscal 2016 is expected to
increase by approximately $1 million for each of the third and fourth
quarters, and amortization of intangible assets, which for fiscal 2016
is expected to increase by approximately $1 million for each of the
third and fourth quarters, in addition to transaction costs related to
business combinations, which are expected to increase by approximately
$1 million in the third quarter. Management expects GAAP operating
expense to increase for fiscal 2016 by approximately $5 million, or
($0.02) per share, in the third quarter and approximately $6 million, or
($0.02) per share, in the fourth quarter as a result of the transaction.
Excluding the operating expense impact as noted above to GAAP and
non-GAAP operating margin and GAAP and non-GAAP earnings per share, Red
Hat is otherwise re-affirming its fiscal 2016 third quarter and full
year guidance provided in its Sept. 21, 2015, earnings press release.
The transaction is expected to close in October 2015, subject to
customary closing conditions.
Webcast
Executives from both companies will host a webcast to discuss this
announcement on Thursday, Oct. 22, 2015, at 11 a.m. EDT. Following
executive remarks, press and analysts are invited to participate in a
live question and answer session.
To join the webcast or view the replay after the event, visit https://vts.inxpo.com/Launch/QReg.htm?ShowKey=27948.
Read more about the acquisition on Red Hat's website including in the
Red Hat blog.
Supporting Quotes
Saïd Ziouani, co-founder and CEO, Ansible
"We're thrilled that Red Hat, a global leader in open source, has chosen
Ansible to tackle the future of IT automation and systems management.
This is a strong validation that Ansible's simplicity, enterprise
customer base and robust community is winning in enterprise IT
automation, from compute to networking to cloud to containers."
Joe Fitzgerald, vice president, Management, Red Hat
"Ansible is a clear leader in IT automation and DevOps, and helps Red
Hat take a significant step forward in our goal of creating frictionless
IT. Red Hat is transforming IT management, driving innovation that is
100% open source, built on an open management platform, and relentlessly
focused on reducing cost and complexity through ease of use and
automation. I am thrilled to welcome Ansible to Red Hat to help us
expand that commitment."
Doug Carlisle, managing director, Menlo Ventures
"I commend the entire Ansible team for their execution over the past two
years and congratulate Red Hat for their leadership in cloud and
recognition of the growing importance of DevOps via this acquisition. I
believe the addition of Ansible to its cloud management portfolio will
help to place Red Hat at the forefront of cloud and DevOps."
Worldwide Cloud Systems Management Software Forecast Update,
2015-2019 - July 2015, IDC #257928
"According to IDC's worldwide analysis as of July 2015, the worldwide
cloud systems management software market achieved total revenue of $2.3
billion in 2014, representing growth of 29.9% from 2013. The market is
currently forecast to grow to $8.3 billion in 2019 at a compound annual
growth rate (CAGR) of 28.9% for the 2014-2019 period."
About Red Hat, Inc.
Red Hat is the world's leading provider of open source software
solutions, using a community-powered approach to reliable and
high-performing cloud, Linux, middleware, storage and virtualization
technologies. Red Hat also offers award-winning support, training, and
consulting services. As a connective hub in a global network of
enterprises, partners, and open source communities, Red Hat helps create
relevant, innovative technologies that liberate resources for growth and
prepare customers for the future of IT. Learn more at http://www.redhat.com.
Forward-Looking Statements
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"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
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any historical or current fact. Actual results may differ materially
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various important factors, including: risks related to the integration
of acquisitions and the ability to market successfully acquired
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industry consolidation; delays or reductions in information technology
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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
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including those found therein under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
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outcomes, and results may differ materially because of more general
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registered in the U.S. and other countries. Linux® is the
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Red Hat, Inc.
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Source: Red Hat, Inc.
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