Red Hat, Inc.(formerly Red Hat Software, Inc.) is an Americansoftware companythat providesopen source softwareproducts to enterprises[7]and is asubsidiaryofIBM.Founded in 1993, Red Hat has itscorporate headquartersinRaleigh, North Carolina,with other offices worldwide.

Red Hat, Inc.
Company typeSubsidiary(independent)
IndustryComputer software
PredecessorContainer Linux
Cygnus SolutionsEdit this on Wikidata
FoundedMarch 1993;31 years ago(1993-03)
Founder
Headquarters,
U.S.
Area served
Worldwide
Key people
Products
RevenueIncreaseUS$3.4 billion(2018)[4]
IncreaseUS$512 million(2018)[5]
IncreaseUS$434 million(2018)[4]
Total assetsIncreaseUS$5.588 billion(2018)[4]
Total equityIncreaseUS$1.613 billion(2018)[4]
Number of employees
19,000[6]
ParentIBM(2019–present)
Subsidiaries
Websiteredhat

Red Hat has become associated to a large extent with itsenterprise operating systemRed Hat Enterprise Linux.With the acquisition of open-source enterprisemiddlewarevendor JBoss, Red Hat also offersRed Hat Virtualization(RHV), an enterprise virtualization product. Red Hat provides storage, operating system platforms, middleware, applications, management products, support, training, andconsulting services.

Red Hat creates, maintains, and contributes to many free software projects. It has acquired thecodebasesof severalproprietary softwareproducts throughcorporate mergers and acquisitions,and has released such software underopen source licenses.As of March 2016,Red Hat is the second largest corporate contributor to theLinux kernelversion 4.14 afterIntel.[8]

On October 28, 2018, IBM announced its intent to acquire Red Hat for $34 billion.[9][10][11]The acquisition closed on July 9, 2019.[12]It now operates as an independent subsidiary.[13][12]

History

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In 1993,Bob Youngincorporated the ACC Corporation, acatalogbusinessthat sold Linux andUnixsoftware accessories. In 1994,Marc Ewingcreated his own Linux distribution, which he namedRed Hat Linux[14](associated with the time Ewing wore a redCornell Universitylacrossehat, given to him by his grandfather, while attendingCarnegie Mellon University[15][16][17]). 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 aschief executive officer(CEO).

Red Hatwent publicon August 11, 1999, achieving—at the time—the eighth-biggest first-day gain in the history ofWall Street.[14]Matthew SzuliksucceededBob Youngas CEO in December of that year.[18]Bob Youngwent on to found the onlineprint on demandandself-publishingcompany,Luluin 2002.

On November 15, 1999, Red Hat acquiredCygnus Solutions.Cygnus provided commercial support forfree softwareand housed maintainers ofGNUsoftware products such as theGNU DebuggerandGNU Binutils.One of the founders of Cygnus,Michael Tiemann,became thechief technical officerof Red Hat and by 2008the vice president of open-source affairs. Later Red Hat acquired WireSpeed,C2Net,Hell's Kitchen Systems, and Akopia.[19][20]

In February 2000,InfoWorldawarded Red Hat its fourth consecutive "Operating System Product of the Year" award for Red Hat Linux 6.1.[21]Red Hat acquired Planning Technologies, Inc. in 2001 andAOL'siPlanetdirectory and certificate-server software in 2004.

Red Hat moved its headquarters fromDurhamtoNorth Carolina State University'sCentennial CampusinRaleigh, North Carolinain February 2002. In the following month Red Hat introduced Red Hat Linux Advanced Server,[22][23]later renamedRed Hat Enterprise Linux(RHEL).Dell,[24]IBM,[25]HP[26]andOracle Corporation[27]announced their support of the platform.[28]

In December 2005,CIO Insightmagazine conducted its annual "Vendor Value Survey", in which Red Hat ranked #1 in value for the second year in a row.[29]Red Hat stock became part of theNASDAQ-100on 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.[30][31]On December 12, 2006, Red Hat stock moved from trading onNASDAQ(RHAT) to theNew York Stock Exchange(RHT). In 2007 Red Hat acquiredMetaMatrixand made an agreement with Exadel to distribute its software.

On March 15, 2007, Red Hat released Red Hat Enterprise Linux 5, and in June acquiredMobicents.On March 13, 2008, Red Hat acquired Amentra, a provider of systems integration services forservice-oriented architecture,business process management,systems development,and enterprise data services.

On July 27, 2009, Red Hat replacedCIT GroupinStandard and Poor's 500 stock index,a diversified index of 500 leading companies of the U.S. economy.[32][33]This was reported as a major milestone for Linux.[34][35]

On December 15, 2009, it was reported that Red Hat will payUS$8.8 millionto settle a class action lawsuit related to the restatement of financial results from July 2004. The suit had been pending in theU.S. District Court for the Eastern District of North Carolina.Red Hat reached the proposed settlement agreement and recorded a one-time charge ofUS$8.8 millionfor the quarter that ended Nov. 30.[36]

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 overUS$109 million.The state of North Carolina is offering up toUS$15 millionin incentives. The second phase involves "expansion into new technologies such as software virtualization and technology cloud offerings".[37]

Red Hat Towerwith earlier company logo

On August 25, 2011, Red Hat announced it would move about 600 employees from theN.C. State Centennial Campusto theTwo Progress Plazabuilding.[38]A ribbon cutting ceremony was held on June 24, 2013, in the re-branded Red Hat Headquarters.[39]

In 2012, Red Hat became the first one-billion dollar open-source company, reachingUS$1.13 billionin annual revenue during its fiscal year.[40]Red Hat passed the $2 billion benchmark in 2015. As of February 2018the company's annual revenue was nearly $3 billion.[41]

On October 16, 2015, Red Hat announced its acquisition of IT automation startupAnsible,rumored for an estimated US$100 million.[42]

In June 2017, Red Hat announced Red HatHyperconvergedInfrastructure (RHHI) 1.0 software product[43]

In May 2018, Red Hat acquiredCoreOS.[44]

Red Hat's links to Israel's military and professed support for Israel have also led to some controversy and calls for boycott during the ongoing conflict in Gaza.[45][46][47]

IBM subsidiary

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On October 28, 2018,IBMannounced its intent to acquire Red Hat for US$34 billion, in one of its largest-ever acquisitions. The company will operate out of IBM's Hybrid Cloud division.[48][49]

Six months later, on May 3, 2019, the US Department of Justice concluded its review of IBM's proposed Red Hat acquisition,[50]and according to Steven J. Vaughan-Nichols "essentially approved the IBM/Red Hat deal".[51]The acquisition was closed on July 9, 2019.[52]

Fedora Project

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Fedora Project logo

Red Hat is the primary sponsor of the Fedora Project, a community-supported free software project that aims to promote the rapid progress offree and open-source softwareand content.[53]

Business model

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Red Hat operates on abusiness modelbased onopen-source software,development within a community, professionalquality assurance,and subscription-basedcustomer 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 asRed Hat Networkand up to24/7support.[54]

In September 2014, however, CEOJim Whitehurstannounced that Red Hat was "in the midst of a major shift from client-server to cloud-mobile".[55]

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.[56]

Programs and projects

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Red Hat Summit is an annual conference, here seen in 2019.

One Laptop per Child

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Red Hat engineers worked with theOne Laptop per Childinitiative (anon-profit organizationestablished by members of theMIT 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, andopen learning.TheXO-4laptop, the last machine the project produced (in 2012), runs a slimmed-down version ofFedora 17as its operating system.

Avi Kivitybegan the development of KVM in mid-2006 atQumranet,a technologystartup companythat was acquired by Red Hat in 2008.[57][58][59]

GNOME

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Red Hat is the largest contributor to theGNOMEdesktop environment. It has several employees working full-time onEvolution,the officialpersonal information managerfor GNOME.

Init system and system/service manager for Linux systems.

Network-capablesound serverprogram distributed via thefreedesktop.orgproject.

Dogtail

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Dogtail, an open-source automatedgraphical user interface(GUI) test framework initially developed by Red Hat, consists of free software released under theGNU General Public License(GPL) and is written inPython.It allows developers to build and test their applications. Red Hat announced the release of Dogtail at the 2006 Red Hat Summit.[60][61]

Red Hat MRG is aclusteringproduct intended for integratedhigh-performance computing(HPC). TheacronymMRG stands for "Messaging Realtime Grid".

Red Hat Enterprise MRG replaces the kernel of Red Hat Enterprise LinuxRHEL,aLinux distributiondeveloped by Red Hat, to provide extra support forreal-time computing,together with middleware support formessage brokerageand scheduling workload to local or remotevirtual machines,grid computing,andcloud computing.[62]

As of 2011,Red Hat works with theCondor High-Throughput Computing Systemcommunity and also provides support for the software.[63]

The Tuna performance-monitoring tool runs in the MRG environment.[64]

Opensource

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Red Hat produced the online publication Opensource since January 20, 2010.[65]The site highlights waysopen-sourceprinciples 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 regularly. The Under the Brim newsletter and Wide Open magazine merged in November 2004, to becomeRed Hat Magazine.In January 2010,Red Hat Magazinebecame Opensource.[66]In April 2023 Red Hat went through company layoffs and laid off the team maintaining Opensource.[67]

Red Hat Exchange

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In 2007, Red Hat announced that it had reached an agreement with somefree softwareandopen-source(FOSS) companies that allowed it to make a distribution portal called Red Hat Exchange, reselling FOSS software with the original branding intact.[68][69]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.[70]

Red Hat build of Keycloak

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Red Hat build of Keycloak[71](formerly known as Red Hat Single Sign-On[72]) is a software product to allow single sign-on with Identity Management and Access Management aimed at modern applications and services. It is based on the open-source projectKeycloak,which acts as anupstreamproject.

Red Hat Subscription Management

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Red Hat Subscription Management (RHSM)[73]combines content delivery withsubscriptionmanagement.[74]

Ceph Storage

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Red Hat is the largest contributor to theCeph StorageSDSproject: Block, File & Object Storage which runs on industry-standard x86 servers and Ethernet IP as well as ARM, InfiniBand, and other technologies.

Ceph aims primarily for completely distributed operation without a single point of failure, scalable to the exabyte level.

Ceph replicates data and makes it fault-tolerant, using commodity hardware and requiring no specific hardware support. Ceph's system offers disaster recovery and data redundancy through techniques such as replication, erasure coding, snapshots and storage cloning. As a result of its design, the system is both self-healing and self-managing, aiming to minimize administration time and other costs.

In this way, administrators have a single, consolidated system that avoids silos and collects the storage within a common management framework. Ceph consolidates several storage use cases and improves resource utilization. It also lets an organization deploy servers where needed.

OpenShift

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Red Hat operatesOpenShift,acloud computingplatform as a service,supporting applications written inNode.js,PHP,Perl,Python,Ruby,JavaEEand more.[75]

On July 31, 2018, Red Hat announced the release of Istio 1.0, a microservices management program used in tandem with theKubernetesplatform. The software purports to provide "traffic management, service identity and security, policy enforcement and telemetry" services in order to streamline Kubernetes use under the variousFedora-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".[76]Also Red Hat is the second largest contributor to Kubernetes code itself, after Google.[77]

OpenStack

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Red Hat markets a version ofOpenStackwhich helps manage adata centerin the manner of cloud computing.[78]

CloudForms

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Red Hat CloudForms provides management ofvirtual machines,instances andcontainersbased on VMware vSphere, Red Hat Virtualization, Microsoft Hyper-V, OpenStack, Amazon EC2, Google Cloud Platform, Microsoft Azure, andRed Hat OpenShift.CloudForms is based on theManageIQproject that Red Hat open sourced. Code in ManageIQ is from the overUS$100 millionacquisition of ManageIQ in 2012.[79][80]

CoreOS

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Container Linux (formerly CoreOS Linux) is a discontinued open-source lightweight operating system based on the Linux kernel and designed for providing infrastructure to clustered deployments. As an operating system, Container Linux provided only the minimal functionality required for deploying applications inside software containers, together with built-in mechanisms for service discovery and configuration sharing.

LibreOffice

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Red Hat contributed, with several software developers, toLibreOffice,afree and open-sourceoffice suite.[81]However, in 2023, Red Hat announced they were not going to include LibreOffice in RHEL 10, citing the ability to download LibreOffice fromFlatpakon RHEL desktops.[82]

Other FOSS projects

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Red Hat also organises "Open Source Day" events[83]where multiple partners show their open-source technologies.[84]

Red Hat is one of the largest contributors to theX Window System.[85][86]

Utilities and tools

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Subscribers have access to:

  • Red Hat Developer Toolset (DTS)[87]– performance analysis and development tools[88]
  • Red Hat Software Collections (RHSCL)[89]

Over and above Red Hat's major products and acquisitions, Red Hat programmers have produced software programming-tools andutilitiesto 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[90]
  • rpm– for package management
  • sos (son ofsysreport) – tools for collecting information on system hardware and configuration.[91]
  • SystemTap– tracing tool for Linux kernels, developed with IBM, Hitachi, Oracle[93]and Intel[94]
  • NetworkManager

The Red Hat website lists the organization's major involvements in free and open-source software projects.[95]

Community projects under the aegis of Red Hat include:

Subsidiaries

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Red Hat Czech

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Red Hat Czech
Company typeSpolečnost s ručením omezeným(Limited Liability Company)
IndustrySoftware
PredecessorContainer Linux
Cygnus Solutions
Founded2006;18 years ago(2006)
Headquarters,
Revenue
  • CZK 1,002 million (FY 2016)
  • CZK 806 million (FY 2015)
  • CZK 123 million (FY 2016)
  • CZK 39 million (FY 2015)
Total assets
  • CZK 420 million (FY 2016)
  • CZK 325 million (FY 2015)
Number of employees
1180 (2019)
ParentRed Hat
Websiteredhat/en/global/czech-republic
Footnotes / references
[97]

Red Hat Czechs.r.o.is a research and development arm of Red Hat, based inBrno,Czech Republic.[97]The subsidiary was formed in 2006 and has 1,180 employees (2019).[98]Red Hat chose to enter the Czech Republic in 2006 over other locations due to the country's embrace ofopen-source.[99]The subsidiary expanded in 2017 to a second location in the Brno Technology Park to accommodate an additional 350 employees.[100]

In 2016, Red Hat Czech reported revenue of CZK 1,002 million (FY 2016), and net income of CZK 123 million (FY 2016), with assets of CZK 420 million (FY 2016)|CZK 325 million (FY 2015).

The group was named the "Most progressive employer of the year" in the Czech Republic in 2010,[101]and the "Best Employer in the Czech Republic" for large scale companies in 2011 byAon.[102]

Red Hat India

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In 2000, Red Hat created the subsidiaryRed Hat Indiato deliver Red Hat software, support, and services to Indian customers.[103]Colin Tenwick, former vice president and general manager of Red HatEMEA,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."[103]Red Hat India has worked with local companies to enable the adoption of open-source technology in both government[104]and education.[105]

In 2006, Red Hat India had a distribution network of more than 70 channel partners spanning 27 cities across India.[106]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[107]andIngram Micro.

Mergers and acquisitions

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Red Hat's first major acquisition involved Delix Computer GmbH-Linux Div, theLinux-based operating-system division of Delix Computer, a German computer company, on July 30, 1999.

Red Hat acquiredCygnus Solutions,a company that provided commercial support forfree software,on January 11, 2000 – it was the company's largest acquisition, forUS$674 million.[108]Michael Tiemann,co-founder of Cygnus, served as thechief technical officerof Red Hat after the acquisition. Red Hat made the most acquisitions in 2000 with five: Cygnus Solutions,Bluecurve,Wirespeed Communications, Hell's Kitchen Systems, andC2Net.On June 5, 2006, Red Hat acquiredopen-sourcemiddleware provider JBoss forUS$420 millionand integrated it as its own division of Red Hat.

On December 14, 1998, Red Hat made its firstdivestment,whenIntelandNetscapeacquired undisclosed minority stakes in the company. The next year, on March 9, 1999,Compaq,IBM,DellandNovelleach acquired undisclosed minority stakes in Red Hat.

Acquisitions

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Date Company Business Country Value (USD) References
July 13, 1999 Atomic Vision Website design United States [109][110]
July 30, 1999 Delix Computer GmbH
-Linux Div[note 1]
Computers and software Germany [111]
January 11, 2000 Cygnus SolutionsLimited gcc,gdb,binutils United States $674,444,000 [112][108]
May 26, 2000 Bluecurve ITmanagement software United States $37,107,000 [113]
August 1, 2000 Wirespeed Communications Internet software United States $83,963,000 [114]
August 15, 2000 Hell's Kitchen Systems Internet software United States $85,624,000 [115]
September 13, 2000 C2Net Internet software United States $39,983,000 [116]
February 5, 2001 Akopia Ecommerce software United States [117]
February 28, 2001 Planning Technologies Consulting United States $47,000,000 [118]
February 11, 2002 ArsDigita Assets and employees United States [119]
October 15, 2002 NOCpulse Software United States [120]
December 18, 2003 Sistina Software GFS,LVM,DM United States $31,000,000 [121]
September 30, 2004 TheNetscapeSecurity
-Certain Asts[note 2]
Certain assets United States [122]
June 5, 2006 JBoss Middleware France $420,000,000 [123][124]
June 6, 2007 MetaMatrix Information management software United States [125]
June 19, 2007 Mobicents Telecommunications software United States [126]
March 13, 2008 Amentra Consulting United States [127]
June 4, 2008 Identyx Software United States [128]
September 4, 2008 Qumranet KVM,RHEV,SPICE Israel $107,000,000 [129]
November 30, 2010 Makara Enterprise software United States [130]
October 4, 2011 Gluster GlusterFS United States $136,000,000 [131]
June 27, 2012 FuseSource Enterprise integration software United States [132]
August 28, 2012 Polymita Enterprise software Spain [133]
December 20, 2012 ManageIQ Orchestration software United States $104,000,000 [134]
January 7, 2014 The CentOS Project CentOS United States [135][136]
April 30, 2014 Inktank Storage Ceph United States $175,000,000 [137]
June 18, 2014 eNovance OpenStackIntegration Services France $95,000,000 [138]
September 18, 2014 FeedHenry Mobile Application Platform Ireland $82,000,000 [139]
October 16, 2015 Ansible Configuration management,Orchestration engine United States [140]
June 22, 2016 3scale API management United States [141]
May 25, 2017 Codenvy Cloud software United States [142]
July 31, 2017 Permabit Data deduplication and compression United States [143]
January 30, 2018 CoreOS Management of containerized application:
Container Linux by CoreOS
United States $250,000,000 [144]
November 28, 2018 NooBaa Cloud storage technology Israel [145]
January 7, 2021 StackRox Container management software United States [146]

Divestitures

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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 [147]
March 9, 1999 Compaq Red Hat[note 4] Open-source software United States [148]
March 9, 1999 IBM Red Hat[note 5] Open-source software United States [149]
March 9, 1999 Novell Red Hat[note 6] Open-source software United States [150]
  1. ^Delix Computer GmbH-Linux Div was acquired from Delix Computer.
  2. ^Netscape Security-Certain Asts was acquired from Netscape Security Solutions.
  3. ^Intel Corporationacquired a minority stake in Red Hat.
  4. ^Compaqacquired a minority stake in Red Hat.
  5. ^IBMacquired a minority stake in Red Hat.
  6. ^Novellacquired a minority stake in Red Hat

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