Red Hat, Inc. is an American multinational software company providing open source software products to the enterprise community. Founded in 1993, Red Hat has its corporate headquarters in Raleigh, North Carolina, with other offices worldwide. It became a subsidiary of IBM on July 9, 2019.
|Predecessor||Cygnus Solutions, ArsDigita, JBoss, C2Net, Sistina Software|
|Naren Gupta (Chairman)|
Jim Whitehurst (CEO)
|Revenue||US$3.4 billion (2018)|
|US$512 million (2018)|
|US$434 million (2018)|
|Total assets||US$5.588 billion (2018)|
|Total equity||US$1.613 billion (2018)|
Number of employees
Red Hat has become associated to a large extent with its enterprise operating system Red Hat Enterprise Linux. With the acquisition of open-source enterprise middleware vendor JBoss, Red Hat also offers Red Hat Virtualization (RHV), an enterprise virtualization product. Red Hat provides storage, operating system platforms, middleware, applications, management products, and support, training, and consulting services.
Red Hat creates, maintains, and contributes to many free software projects. It has acquired several proprietary software product codebases through corporate mergers and acquisitions and has released such software under open source licenses. As of March 2016[update], Red Hat is the second largest corporate contributor to the Linux kernel version 4.14 after Intel.
On October 28, 2018, IBM announced its intent to acquire Red Hat for $34 billion. The acquisition closed on July 9, 2019. Red Hat's lead financial adviser in the transaction was Guggenheim Securities.
- 1 History
- 2 Fedora Project
- 3 Business model
- 4 Programs and projects
- 5 Subsidiaries
- 6 Mergers and acquisitions
- 7 References
- 8 External links
In 1993, Bob Young incorporated the ACC Corporation, a catalog business that sold Linux and Unix software accessories. In 1994, Marc Ewing created his own Linux distribution, which he named Red Hat Linux (Ewing had worn a red Cornell University lacrosse hat, given to him by his grandfather, while attending Carnegie Mellon University). Ewing released the software in October, and it became known as the Halloween release. Young bought Ewing's business in 1995,[clarification needed] and the two merged to become Red Hat Software, with Young serving as chief executive officer (CEO).
Red Hat went public on August 11, 1999, achieving the eighth-biggest first-day gain in the history of Wall Street. Matthew Szulik succeeded Bob Young as CEO in December of that year. Bob Young went on to found the online print on demand and self-publishing company, Lulu in 2002.
On November 15, 1999, Red Hat acquired Cygnus Solutions. Cygnus provided commercial support for free software and housed maintainers of GNU software products such as the GNU Debugger and GNU Binutils. One of the founders of Cygnus, Michael Tiemann, became the chief technical officer of Red Hat and by 2008[update] the vice president of open-source affairs. Later Red Hat acquired WireSpeed, C2Net and Hell's Kitchen Systems.
In February 2000, InfoWorld awarded Red Hat its fourth consecutive "Operating System Product of the Year" award for Red Hat Linux 6.1. Red Hat acquired Planning Technologies, Inc in 2001 and AOL's iPlanet directory and certificate-server software in 2004.
Red Hat moved its headquarters from Durham to North Carolina State University's Centennial Campus in Raleigh, North Carolina in February 2002. In the following month Red Hat introduced Red Hat Linux Advanced Server, later renamed Red Hat Enterprise Linux (RHEL). Dell, IBM, HP and Oracle Corporation announced their support of the platform.
In December 2005, CIO Insight magazine conducted its annual "Vendor Value Survey", in which Red Hat ranked #1 in value for the second year in a row. Red Hat stock became part of the NASDAQ-100 on December 19, 2005.
Red Hat acquired open-source middleware provider JBoss on June 5, 2006, and JBoss became a division of Red Hat. On September 18, 2006, Red Hat released the Red Hat Application Stack, which integrated the JBoss technology and which was certified by other well-known software vendors. On December 12, 2006, Red Hat stock moved from trading on NASDAQ (RHAT) to the New York Stock Exchange (RHT). In 2007 Red Hat acquired MetaMatrix and made an agreement with Exadel to distribute its software.
On March 15, 2007, Red Hat released Red Hat Enterprise Linux 5, and in June acquired Mobicents. On March 13, 2008, Red Hat acquired Amentra, a provider of systems integration services for service-oriented architecture, business process management, systems development and enterprise data services.
On July 27, 2009, Red Hat replaced CIT Group in Standard and Poor's 500 stock index, a diversified index of 500 leading companies of the U.S. economy. This was reported as a major milestone for Linux.
On December 15, 2009, it was reported that Red Hat will pay US$8.8 million to settle a class action lawsuit related to the restatement of financial results from July 2004. The suit had been pending in U.S. District Court for the Eastern District of North Carolina. Red Hat reached the proposed settlement agreement and recorded a one-time charge of US$8.8 million for the quarter that ended Nov. 30.
On January 10, 2011, Red Hat announced that it would expand its headquarters in two phases, adding 540 employees to the Raleigh operation, and investing over US$109 million. The state of North Carolina is offering up to US$15 million in incentives. The second phase involves "expansion into new technologies such as software virtualization and technology cloud offerings".
On August 25, 2011, Red Hat announced it would move about 600 employees from the N.C. State Centennial Campus to Two Progress Plaza downtown. A ribbon cutting ceremony was held June 24, 2013, in the re-branded Red Hat Headquarters.
In 2012, Red Hat became the first one-billion dollar open-source company, reaching US$1.13 billion in annual revenue during its fiscal year. Red Hat passed the $2 billion benchmark in 2015. As of February 2018[update] the company's annual revenue was nearly $3 billion.
Acquisition by IBMEdit
Six months later, on May 3, 2019, the US Department of Justice concluded its review of IBM's proposed Red Hat acquisition, and according to Steven J. Vaughan-Nichols "essentially approved the IBM/Red Hat deal". The acquisition was closed on July 9, 2019.
Red Hat sponsors the Fedora Project, a community-supported free software project that aims to promote the rapid progress of free and open-source software and content. Fedora aims for rapid innovation using open processes and public forums.
The Fedora Project Board, which comprises community leaders and representatives of Red Hat, leads the project and steers the direction of the project and of Fedora, the Linux distribution it develops. Red Hat employees work with the code alongside community members, and many innovations within the Fedora Project make their way into new releases of Red Hat Enterprise Linux.
Red Hat operates on a professional open-source business model based on open-source software, development within a community, professional quality assurance, and subscription-based customer support. They produce open-source code so that more programmers can make adaptations and improvements.
Red Hat sells subscriptions for the support, training, and integration services that help customers in using their open-source software products. Customers pay one set price for unlimited access to services such as Red Hat Network and up to 24/7 support.
In September 2014, however, CEO Jim Whitehurst announced that Red Hat was "in the midst of a major shift from client-server to cloud-mobile".
Rich Bynum, a member of Red Hat's legal team, attributes Linux's success and rapid development partially to open-source business models, including Red Hat's.
Programs and projectsEdit
One Laptop per ChildEdit
Red Hat engineers worked with the One Laptop per Child initiative (a non-profit organization established by members of the MIT Media Lab) to design and produce an inexpensive laptop and try to provide every child in the world with access to open communication, open knowledge, and open learning. The XO-4 laptop, the latest[update] machine of this project, runs a slimmed-down version of Fedora 17 as its operating system.
Dogtail, an open-source automated graphical user interface (GUI) test framework initially developed by Red Hat, consists of free software released under the GNU General Public License (GPL) and is written in Python. It allows developers to build and test their applications. Red Hat announced the release of Dogtail at the 2006 Red Hat Summit.
Red Hat Enterprise MRG replaces the Red Hat Enterprise Linux RHEL, a Linux distribution developed by Red Hat, kernel in order to provide extra support for real-time computing, together with middleware support for message brokerage and scheduling workload to local or remote virtual machines, grid computing, and cloud computing.
The Tuna performance-monitoring tool runs in the MRG environment.
Red Hat produces the online publication Opensource.com. The site highlights ways open-source principles apply in domains other than software development. The site tracks the application of open-source philosophy to business, education, government, law, health, and life.
The company originally produced a newsletter called Under the Brim. Wide Open magazine first appeared in March 2004, as a means for Red Hat to share technical content with subscribers on a regular basis. The Under the Brim newsletter and Wide Open magazine merged in November 2004, to become Red Hat Magazine. In January 2010, Red Hat Magazine became Opensource.com.
Red Hat ExchangeEdit
In 2007, Red Hat announced that it had reached an agreement with some free software and open-source (FOSS) companies that allowed it to make a distribution portal called Red Hat Exchange, reselling FOSS software with the original branding intact. However, by 2010, Red Hat had abandoned the Exchange program to focus their efforts more on their Open Source Channel Alliance which began in April 2009.
Red Hat Single Sign OnEdit
Red Hat Single Sign On is a software product to allow single sign-on with Identity Management and Access Management aimed at modern applications and services. There is an ongoing Open source project alongside Red Hat SSO, that is Keycloak. Keycloak is basically the community version from Red Hat SSO. Red Hat Single Sign On 7.3 is the latest version available.
Red Hat Subscription ManagementEdit
On July 31, 2018, Red Hat announced the release of Istio 1.0, a microservices management program used in tandem with the Kubernetes platform. The software purports to provide "traffic management, service identity and security, policy enforcement and telemetry" services in order to streamline Kubernetes use under the various Fedora-based operating systems. Red Hat's Brian Redbeard Harring described Istio as "aiming to be a control plane, similar to the Kubernetes control plane, for configuring a series of proxy servers that get injected between application components".
Red Hat CloudForms provides management of virtual machines, instances and containers based on VMware vSphere, Red Hat Virtualization, Microsoft Hyper-V, OpenStack, Amazon EC2, Google Cloud Platform, Microsoft Azure, and Red Hat OpenShift. CloudForms is based on the ManageIQ project that Red Hat open sourced. Code in ManageIQ is from the over US$100 million acquisition of ManageIQ in 2012.
Other FOSS projectsEdit
Red Hat has some employees working full-time on other free and open-source software projects that are not Red Hat products, such as two full-time employees working on the free software radeon (David Airlie and Jerome Glisse) and one full-time employee working on the free software nouveau graphic drivers. Another such project is AeroGear, an open-source project that brings security and development expertise to cross-platform enterprise mobile development.
Utilities and toolsEdit
Subscribers have access to:
- Red Hat Developer Toolset (DTS) – performance analysis and development tools
- Red Hat Software Collections (RHSCL) 
Over and above Red Hat's major products and acquisitions, Red Hat programmers have produced software programming-tools and utilities to supplement standard Unix and Linux software. Some of these Red Hat "products" have found their way from specifically Red Hat operating environments via open-source channels to a wider community. Such utilities include:
- Disk Druid – for disk partitioning
- rpm – for package management
- sos (son of <code>sysreport</code>) – tools for collecting information on system hardware and configuration.
- SystemTap – tracing tool for Linux kernels, developed with IBM, Hitachi, Oracle and Intel
The Red Hat website lists the organization's major involvements in free and open-source software projects.
Community projects under the aegis of Red Hat include:
Red Hat IndiaEdit
In 2000, Red Hat created the subsidiary Red Hat India to deliver Red Hat software, support, and services to Indian customers. Colin Tenwick, vice president and general manager of Red Hat EMEA said Red Hat India was opened "in response to the rapid adoption of Red Hat Linux in the subcontinent. Demand for open-source solutions from the Indian markets is rising and Red Hat wants to play a major role in this region." Red Hat India has worked with local companies to enable adoption of open-source technology in both government and education.
In 2006, Red Hat India had a distribution network of more than 70 channel partners spanning 27 cities across India. Red Hat India's channel partners included MarkCraft Solutions, Ashtech Infotech Pvt Ltd, Efensys Technologies, Embee Software, Allied Digital Services, and Softcell Technologies. Distributors include Integra Micro Systems and Ingram Micro.
Mergers and acquisitionsEdit
Red Hat's first major acquisition involved Delix Computer GmbH-Linux Div, the Linux-based operating-system division of Delix Computer, a German computer company, on July 30, 1999.
Red Hat acquired Cygnus Solutions, a company that provided commercial support for free software, on January 11, 2000 – it was the company's largest acquisition, for US$674 million. Michael Tiemann, co-founder of Cygnus, served as the chief technical officer of Red Hat after the acquisition. Red Hat made the most acquisitions in 2000 with five: Cygnus Solutions, Bluecurve, Wirespeed Communications, Hell's Kitchen Systems, and C2Net. On June 5, 2006, Red Hat acquired open-source middleware provider JBoss for US$420 million and integrated it as its own division of Red Hat.
On December 14, 1998, Red Hat made its first divestment, when Intel and Netscape acquired undisclosed minority stakes in the company. The next year, on March 9, 1999, Compaq, IBM, Dell and Novell each acquired undisclosed minority stakes in Red Hat.
|July 13, 1999||Atomic Vision||Website design||United States||—|||
|July 30, 1999||Delix Computer GmbH
-Linux Div[note 1]
|Computers and software||Germany||—|||
|January 11, 2000||Cygnus Solutions Limited||gcc, gdb, binutils||United States||$674,444,000|||
|May 26, 2000||Bluecurve||IT management software||United States||$37,107,000|||
|August 1, 2000||Wirespeed Communications||Internet software||United States||$83,963,000|||
|August 15, 2000||Hell's Kitchen Systems||Internet software||United States||$85,624,000|||
|September 13, 2000||C2Net||Internet software||United States||$39,983,000|||
|February 5, 2001||Akopia||Ecommerce websites||United States||—|||
|February 28, 2001||Planning Technologies||Consulting||United States||$47,000,000|||
|February 11, 2002||ArsDigita||Assets and employees||United States||—|||
|October 15, 2002||NOCpulse||Software||United States||—|||
|December 18, 2003||Sistina Software||GFS, LVM, DM||United States||$31,000,000|||
|September 30, 2004||The Netscape Security
-Certain Asts[note 2]
|Certain assets||United States||—|||
|June 5, 2006||JBoss||Middleware||United States||$420,000,000|||
|June 6, 2007||MetaMatrix||Information management software||United States||—|||
|June 19, 2007||Mobicents||Telecommunications software||United States||—|||
|March 13, 2008||Amentra||Consulting||United States||—|||
|June 4, 2008||Identyx||Software||United States||—|||
|September 4, 2008||Qumranet||KVM, RHEV, SPICE||Israel||$107,000,000|||
|November 30, 2010||Makara||Enterprise software||United States||—|||
|October 4, 2011||Gluster||GlusterFS||United States||$136,000,000|||
|June 27, 2012||FuseSource||Enterprise integration software||United States||—|||
|August 28, 2012||Polymita||Enterprise software||Spain||—|||
|December 20, 2012||ManageIQ||Orchestration software||United States||$104,000,000|||
|January 7, 2014||The CentOS Project||CentOS||United States||—|||
|April 30, 2014||Inktank Storage||Ceph||United States||$175,000,000|||
|June 18, 2014||eNovance||OpenStack Integration Services||France||$95,000,000|||
|September 18, 2014||FeedHenry||Mobile Application Platform||Ireland||$82,000,000|||
|October 16, 2015||Ansible||Configuration management, Orchestration engine||United States||—|||
|June 22, 2016||3scale||API management||United States||—|||
|May 25, 2017||Codenvy||Cloud software||United States||—|||
|July 31, 2017||Permabit||Data deduplication and compression||United States||—|||
|January 30, 2018||CoreOS||Management of containerized application:
Container Linux by CoreOS
|November 28, 2018||NooBaa||Cloud storage technology||Israel||—|||
|Date||Acquirer||Target company||Target business||Acquirer country||Value (USD)||References|
|December 14, 1998||Intel Corporation||Red Hat[note 3]||Open-source software||United States||—|||
|March 9, 1999||Compaq||Red Hat[note 4]||Open-source software||United States||—|||
|March 9, 1999||IBM||Red Hat[note 5]||Open-source software||United States||—|||
|March 9, 1999||Novell||Red Hat[note 6]||Open-source software||United States||—|||
- Delix Computer GmbH-Linux Div was acquired from Delix Computer.
- Netscape Security-Certain Asts was acquired from Netscape Security Solutions.
- Intel Corporation acquired a minority stake in Red Hat.
- Compaq acquired a minority stake in Red Hat.
- IBM acquired a minority stake in Red Hat.
- Novell acquired a minority stake in Red Hat
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In December of 2007, Red Hat made a formal product announcement of a product that supports some kinds of real-time extensions.[...] This product is called Red Hat MRG (Messaging, Real Time Grid) platform. The core component is a real-time enhanced kernel that replaces the normal kernel of the Red Hat Enterprise Linux product.
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Using Tuna to perform advanced tuning procedures for the MRG Realtime component of the Red Hat Enterprise MRG distributed computing platform
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Issue[:] How to register a Red Hat Enterprise Linux system to the Customer Portal using Red Hat Subscription Management (RHSM)
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- Such as BPM, OpenShift, Ansible, BRMS, ADS, Alfresco, B-Cloud, Business-e, CISCO, Dell, Delphis, Elastic, Engineering, Eurotech, Extra, Extraordy, Fujitsu, HPE, IBM, IKS, Intel, Kiratech, Mongo DB, Nuage, Partec, Plurimidia, Scalix, Sorint, Zextras, Zimbra, Fuse, DataGrid, OpenStack, Ceph, CloudForms.
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Red Hat Developer Toolset is for developers on the Red Hat Enterprise Linux platform. It is a set of development and performance analysis tools that can be installed and used on multiple versions of Red Hat Enterprise Linux. [...] Available through the Red Hat Enterprise Linux Developer Program and related subscriptions, Red Hat Developer Toolset allows C, C++, and Fortran developers to compile and deploy to multiple versions of Red Hat Enterprise Linux.
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the opening of this office is in response to the rapid adoption of Red Hat Linux in the subcontinent. India is one of the leading software development countries in the world. Demand for open source solutions from the Indian markets is rising and Red Hat wants to play a major role in this region.
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Open source has seen solid traction with enterprises in India. Not only has the Indian Government been at the forefront of adopting open source technologies, but Indian enterprises too have been avid users of open source software for mission-critical purposes," noted Kumar. He adds, "India's strong engineering credentials has made it an active contributor to the open source development engine. We look forward to working with the community and enterprises to take open source development and adoption to the next level in India.
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