Redhat grows virtualization portfolio: acquires Qumranet for $107 mil
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Redhat has acquired Qumranet for approximately $107 million in cash.Qumranet’s claim to fame has been the KVM module, an open source project for Linux kernel based virtualization using technologies embedded in processors from Intel and AMD.
Redhat has shown a keen interest in building its own virtulization portfolio to entrench itself deeper in customer environments ( Currently, VMware dominates the virtualization market ). This gives redhat the ability to own a complete virtualization and guest OS stack in enterprise deployments thus expanding opportunities to sell services not only for its operating system but also for it’s virtualization platform.
The Qumranet acquision comes in the heels of Redhat’s announcement of OVirt, a management platform for customers to centrally manage their entire virtual infrastructure, crossing hypervisor and vendor boundaries. Qumranet adds to Redhat’s portfolio its SolidICE offering, a virtual desktop infrastructure (VDI) technology for a complete virtualization solution for enterprise customers and gives the linux maker, a foothold in the Virtual Desktop market.
Red Hat can now deliver what virtualization-only vendors cannot: a comprehensive solution integrated with the operating system, which can drive down IT costs while simultaneously enhancing the flexibility and responsiveness of IT infrastructure - press release
The acquisition is not expected to contribute materially to revenue in the fiscal year ending February 28, 2009, but should add up to $20 million in revenue in the following year. Red Hat expects Qumranet operating expenses will be approximately $3.5-4.5 million per quarter before non-cash stock-based compensation expense, amortization expense and other charges resulting from the closing of the acquisition.
