|Headquarters||Raleigh, North Carolina, U.S.|
|Key people||Hugh Shelton (Chairman)
Jim Whitehurst (CEO)
|Products||Red Hat Enterprise Linux
Red Hat Directory Server
Red Hat Certificate System
JBoss Enterprise Middleware
Red Hat Enterprise Virtualization
Red Hat Storage Server
Red Hat CloudForms
Red Hat OpenShift
|Revenue||$1.13 billion (2012)|
|Operating income||$199 million (2012)|
|Net income||$146 million (2012)|
|Total assets||$2.49 billion (2012)|
|Total equity||$1.39 billion (2012)|
|Subsidiaries||Mergers and acquisitions|
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 satellite offices worldwide.
Red Hat has become associated to a large extent with its enterprise operating system Red Hat Enterprise Linux and with the acquisition of open-source enterprise middleware vendor JBoss. Red Hat provides operating system platforms, middleware, applications, management products, and support, training, and consulting services.
Red Hat creates, maintains, and contributes to many free software projects and has also acquired several proprietary software packages and released their source code mostly under the GNU GPL while holding copyright under a single commercial entity and selling user subscriptions. As of June 2013[update], Red Hat is the largest corporate contributor to Linux.
- 1 History
- 2 Fedora Project
- 3 Business model
- 4 Programs and projects
- 5 Utilities and tools
- 6 Subsidiaries
- 7 Mergers and acquisitions
- 8 References
- 9 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. Before its IPO, Red Hat had received some funding from Joyce Young, the aunt of founder Bob Young. When Red Hat went public, she cashed in enough stock to recoup her initial investment, then left the remaining stock to linger, "for fun". Her return on investment was so great that, by January 2000 she was a millionaire, allowing her to donate CAD$40 million to the Hamilton Community Foundation in June 2000. 
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, North Carolina, to N.C. 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. Amentra operates as an independent company.
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 US economy. This was reported as a major milestone for Linux.
On December 15, 2009, it was reported that Red Hat will pay $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 US District Court in North Carolina. Red Hat reached the proposed settlement agreement and recorded a one-time charge of $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 $109 million. The state of North Carolina is offering up to $15 million in incentives. The second phase involves "expansion into new technologies such as software visualization 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 $1.13 billion in annual revenue during its fiscal year.
Red Hat sponsors the Fedora Project, a community-supported open-source 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 partly operates on a professional open-source business model based on open code, development within a community, professional quality assurance, and subscription-based customer support. They produce open-source code, so more programmers can make further adaptations and improvements.
Red Hat sells subscriptions for the support, training, and integration services that help customers in using open-source software. Customers pay one set price for unlimited access to services such as Red Hat Network and up to 24/7 support.
Programs and projects
One Laptop per Child
Red Hat engineers work 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 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 (Messaging, Real-time, and Grid) replaces the RHEL 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, and cloud infrastructures. Red Hat now works with the Condor High-Throughput Computing System community and also provides support for the software.
The platform strives to incorporate all the above aspects of HPC into one IT infrastructure for better performance, reliability, and interoperability. It claims to simplify and automate a range of IT tasks of deployment, operation, managing and monitoring of clustered and distributed infrastructure and applications.
Red Hat produces the online publication opensource.com. It brings together issues of interest from the open source community, highlighting how open source principles apply beyond software and technology. It covers topics such as business, education, government, law, health, and life, updates readers on public licensing and the Creative Commons, and it features interviews with some industry leaders and open source people.
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. Red Hat Magazine later became opensource.com.
Red Hat Exchange
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 has some employees working full-time on free and open source software projects, 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.
Utilities and tools
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
- sosreport – gathers system hardware and configuration details
- 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 India
Red Hat, Inc created its subsidiary Red Hat India to deliver Red Hat software, support, and services to customers in India. Colin Tenwick, vice president and general manager of Red Hat EMEA said that "the opening of [Red Hat India] is 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 Ashtech Infotech Pvt Ltd, Efensys Technologies, Embee Software, Allied Digital Services, and Softcell Technologies. Distributors included Integra Microsystems, Ingram Micro, GT Enterprises, and Sonata Software.
Mergers and acquisitions
Red Hat's first major acquisition was 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. Michael Tiemann, co-founder of Cygnus, served as the chief technical officer of Red Hat after the acquisition. On June 5, 2006, Red Hat acquired open source middleware provider JBoss for $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. The company's largest acquisition was Cygnus Solutions in January 2000 for $674 million. Red Hat made the most acquisitions in 2000 with five: Cygnus Solutions, Bluecurve, Wirespeed Communications, Hell's Kitchen Systems, and C2Net.
|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||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||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 software||United States||—|||
|August 28, 2012||Polymita||Enterprise software||Spain||—|||
|December 20, 2012||ManageIQ||Orchestration software||United States||$104,000,000|||
|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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- "Red Hat Enterprise MRG". Retrieved 2011-03-25.
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- "Red Hat Expands Into India; New Operation in India Strengthens Red Hat's Offerings to Customers in India, Sri Lanka, Nepal and Bhutan.". Business Wire. 9 Nov 2000. Retrieved 15 Apr 2011. "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."
- "Red Hat Appoints New Country General Manager For India". TechnoFirst. 1 Feb 2011. Retrieved 15 Apr 2011. "“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.”"
- "Red Hat commits to modernizing education system in India". Redhat Press Release. 20 Mar 2006. Retrieved 15 Apr 2011. "Javed Tapia, President, Red Hat Indian Subcontinent, said, "With open source software, we can modernize the education system far more rapidly than we can with proprietary software. Open source gives schools flexibility and control over their IT infrastructure and freedom from expensive licensing schemes. Open source also helps in building a participative community of educationists and technologists. It is therefore, the way forward, for India's education system and we are pleased to partner with a progressive organization like Lotus Learning Systems Society to take this initiative forward.""
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