Red Hat, Inc. a provider of open source solutions to the enterprise, very recently proclaimed that it has signed a conclusive agreement to acquire Gluster, Inc., a provider of scale-out, open source storage solutions for standardizing the management of unstructured data. Red Hat has agreed to obtain Gluster, a privately-held company, for approximately $136 million in cash and as part of the transaction. Red Hat will also assume invested 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.
With this acquisition, Red Hat will outline 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.”
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.
What do you think? Will this revolutionize Software-Based Open Storage Platforms?