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Red Hat
American software company providing open-source software products

Red Hat, Inc. is an American software company specializing in open source software products for enterprises and is a subsidiary of IBM. Founded in 1993, Red Hat's headquarters are in Raleigh, North Carolina, with offices worldwide. It is well known for its enterprise operating system, Red Hat Enterprise Linux, and offers products like Red Hat Virtualization. Red Hat contributes significantly to free software projects, including the Linux kernel, ranking second in corporate contributions as of 2016. Acquired by IBM in 2019, it continues to operate independently, providing software, support, training, and consulting services.

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History

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 Linux9 (associated with the time Ewing wore a red Cornell University lacrosse hat, given to him by his grandfather, while attending Carnegie Mellon University101112). Ewing released the software in October, and it became known as the Halloween release. Young bought Ewing's business in 1995, 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—at the time—the eighth-biggest first-day gain in the history of Wall Street.13 Matthew Szulik succeeded Bob Young as CEO in December of that year.14 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 the vice president of open-source affairs. Later Red Hat acquired WireSpeed, C2Net, Hell's Kitchen Systems, and Akopia.1516

In February 2000, InfoWorld awarded Red Hat its fourth consecutive "Operating System Product of the Year" award for Red Hat Linux 6.1.17 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,1819 later renamed Red Hat Enterprise Linux (RHEL). Dell,20 IBM,21 HP22 and Oracle Corporation23 announced their support of the platform.24

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.25 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.2627 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.2829 This was reported as a major milestone for Linux.3031

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 the 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. 30.32

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".33

On August 25, 2011, Red Hat announced it would move about 600 employees from the N.C. State Centennial Campus to the Two Progress Plaza building.34 A ribbon cutting ceremony was held on June 24, 2013, in the re-branded Red Hat Headquarters.35

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.36 Red Hat passed the $2 billion benchmark in 2015. As of February 2018 the company's annual revenue was nearly $3 billion.37

On October 16, 2015, Red Hat announced its acquisition of IT automation startup Ansible, rumored for an estimated US$100 million.38

In June 2017, Red Hat announced Red Hat Hyperconverged Infrastructure (RHHI) 1.0 software product.39

In May 2018, Red Hat acquired CoreOS.40

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.414243

IBM subsidiary

On October 28, 2018, IBM announced 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.4445 Microsoft, Amazon, and Google reportedly also considered buying Red Hat.46

Six months later, on May 3, 2019, the US Department of Justice concluded its review of IBM's proposed Red Hat acquisition,47 and according to Steven J. Vaughan-Nichols "essentially approved the IBM/Red Hat deal".48 The acquisition was closed on July 9, 2019.49

Fedora Project

Main article: Fedora Project

Red Hat is the primary sponsor of the Fedora Project, a community-supported free software project that aims to promote the rapid progress of free and open-source software and content.50

Business model

Red Hat operates on a 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.51

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".52

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.53

Programs and projects

One Laptop per Child

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 last machine the project produced (in 2012), runs a slimmed-down version of Fedora 17 as its operating system.

KVM

Avi Kivity began the development of KVM in mid-2006 at Qumranet, a technology startup company that was acquired by Red Hat in 2008.545556

GNOME

Red Hat is the largest contributor to the GNOME desktop environment. It has several employees working full-time on Evolution, the official personal information manager for GNOME.

systemd

Init system and system/service manager for Linux systems.

PulseAudio

Network-capable sound server program distributed via the freedesktop.org project.

Dogtail

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.5758

MRG

Red Hat MRG is a clustering product intended for integrated high-performance computing (HPC). The acronym MRG stands for "Messaging Realtime Grid".

Red Hat Enterprise MRG replaces the kernel of Red Hat Enterprise Linux RHEL, a Linux distribution developed by Red Hat, 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.59

As of 2011, Red Hat works with the Condor High-Throughput Computing System community and also provides support for the software.60

The Tuna performance-monitoring tool runs in the MRG environment.61

Opensource.com

Red Hat produced the online publication Opensource.com since January 20, 2010.62 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 regularly. 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.63 In April 2023 Red Hat went through company layoffs and laid off the team maintaining Opensource.com.64

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.6566 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 2009.67

Red Hat build of Keycloak

Red Hat build of Keycloak68 (formerly known as Red Hat Single Sign-On69) 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 project Keycloak, which acts as an upstream project.

Red Hat Subscription Management

Red Hat Subscription Management (RHSM)70 combines content delivery with subscription management.71

Ceph Storage

Red Hat is the largest contributor to the Ceph Storage SDS project : 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

Red Hat operates OpenShift, a cloud computing platform as a service, supporting applications written in Node.js, PHP, Perl, Python, Ruby, JavaEE and more.72

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".73 Also Red Hat is the second largest contributor to Kubernetes code itself, after Google.74

OpenStack

Red Hat markets a version of OpenStack which helps manage a data center in the manner of cloud computing.75

CloudForms

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 2012.7677

CoreOS

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

Red Hat contributed, with several software developers, to LibreOffice, a free and open-source office suite.78 However, in 2023, Red Hat announced they were not going to include LibreOffice in RHEL 10, citing the ability to download LibreOffice from Flatpak on RHEL desktops.79

Other FOSS projects

Red Hat also organises "Open Source Day" events80 where multiple partners show their open-source technologies.81

Xorg

Red Hat is one of the largest contributors to the X Window System.8283

Utilities and tools

Subscribers have access to:

  • Red Hat Developer Toolset (DTS)84 – performance analysis and development tools85
  • Red Hat Software Collections (RHSCL) 86

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 partitioning87
  • rpm – for package management
  • sos (son of sysreport) – tools for collecting information on system hardware and configuration.88
    • sosreport – reports system hardware and configuration details89
  • SystemTap – tracing tool for Linux kernels, developed with IBM, Hitachi, Oracle90 and Intel91
  • NetworkManager

The Red Hat website lists the organization's major involvements in free and open-source software projects.92

Community projects under the aegis of Red Hat include:

Subsidiaries

Red Hat Czech

Red Hat Czech s.r.o. is a research and development arm of Red Hat, based in Brno, Czech Republic.94 The subsidiary was formed in 2006 and has 1,180 employees (2019).95 Red Hat chose to enter the Czech Republic in 2006 over other locations due to the country's embrace of open-source.96 The subsidiary expanded in 2017 to a second location in the Brno Technology Park to accommodate an additional 350 employees.97

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 2010,98 and the "Best Employer in the Czech Republic" for large scale companies in 2011 by Aon.99

Red Hat India

In 2000, Red Hat created the subsidiary Red Hat India to deliver Red Hat software, support, and services to Indian customers.100 Colin Tenwick, former 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."101 Red Hat India has worked with local companies to enable the adoption of open-source technology in both government102 and education.103

In 2006, Red Hat India had a distribution network of more than 70 channel partners spanning 27 cities across India.104 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 Systems105 and Ingram Micro.

Mergers and acquisitions

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.106 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.

Acquisitions

DateCompanyBusinessCountryValue (USD)References
July 13, 1999Atomic VisionWebsite design United States—107108
July 30, 1999Delix Computer GmbH-Linux Div109Computers and software Germany—110
January 11, 2000Cygnus Solutions Limitedgcc, gdb, binutils United States$674,444,000111112
May 26, 2000BluecurveIT management software United States$37,107,000113
August 1, 2000Wirespeed CommunicationsInternet software United States$83,963,000114
August 15, 2000Hell's Kitchen SystemsInternet software United States$85,624,000115
September 13, 2000C2NetInternet software United States$39,983,000116
February 5, 2001AkopiaEcommerce software United States—117
February 28, 2001Planning TechnologiesConsulting United States$47,000,000118
February 11, 2002ArsDigitaAssets and employees United States—119
October 15, 2002NOCpulseSoftware United States—120
December 18, 2003Sistina SoftwareGFS, LVM, DM United States$31,000,000121
September 30, 2004The Netscape Security-Certain Asts122Certain assets United States—123
June 5, 2006JBossMiddleware France$420,000,000124125
June 6, 2007MetaMatrixInformation management software United States—126
June 19, 2007MobicentsTelecommunications software United States—127
March 13, 2008AmentraConsulting United States—128
June 4, 2008IdentyxSoftware United States—129
September 4, 2008QumranetKVM, RHEV, SPICE Israel$107,000,000130
November 30, 2010MakaraEnterprise software United States—131
October 4, 2011GlusterGlusterFS United States$136,000,000132
June 27, 2012FuseSourceEnterprise integration software United States—133
August 28, 2012PolymitaEnterprise software Spain—134
December 20, 2012ManageIQOrchestration software United States$104,000,000135
January 7, 2014The CentOS ProjectCentOS United States—136137
April 30, 2014Inktank StorageCeph United States$175,000,000138
June 18, 2014eNovanceOpenStack Integration Services France$95,000,000139
September 18, 2014FeedHenryMobile Application Platform Ireland$82,000,000140
October 16, 2015AnsibleConfiguration management, Orchestration engine United States—141
June 22, 20163scaleAPI management United States—142
May 25, 2017CodenvyCloud software United States—143
July 31, 2017PermabitData deduplication and compression United States—144
January 30, 2018CoreOSManagement of containerized application:Container Linux by CoreOS United States$250,000,000145
November 28, 2018NooBaaCloud storage technology Israel—146
January 7, 2021StackRoxContainer management software United States—147

Divestitures

DateAcquirerTarget companyTarget businessAcquirer countryValue (USD)References
December 14, 1998Intel CorporationRed Hat148Open-source software United States—149
March 9, 1999CompaqRed Hat150Open-source software United States—151
March 9, 1999IBMRed Hat152Open-source software United States—153
March 9, 1999NovellRed Hat154Open-source software United States—155
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  144. "Red Hat Acquires Permabit Assets, Eases Barriers to Cloud Portability with Data Deduplication Technology". Red Hat. July 31, 2017. https://www.redhat.com/en/about/press-releases/red-hat-acquires-permabit-assets-eases-barriers-cloud-portability-data-deduplication-technology ↩

  145. "Red Hat to Acquire CoreOS, Expanding its Kubernetes and Containers Leadership". Red Hat. January 30, 2018. https://www.redhat.com/en/about/press-releases/red-hat-acquire-coreos-expanding-its-kubernetes-and-containers-leadership ↩

  146. "Red Hat Acquires Hybrid Cloud Data Management Provider NooBaa". Red Hat. November 27, 2018. https://www.redhat.com/en/about/press-releases/red-hat-acquires-hybrid-cloud-data-management-provider-noobaa ↩

  147. "Red Hat to Acquire Kubernetes-Native Security Leader StackRox". www.redhat.com. January 7, 2021. Retrieved February 11, 2021. https://www.redhat.com/en/about/press-releases/red-hat-acquire-kubernetes-native-security-leader-stackrox ↩

  148. Intel Corporation acquired a minority stake in Red Hat. /wiki/Intel_Corporation ↩

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  150. Compaq acquired a minority stake in Red Hat. /wiki/Compaq ↩

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  152. IBM acquired a minority stake in Red Hat. /wiki/IBM ↩

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  154. Novell acquired a minority stake in Red Hat /wiki/Novell ↩

  155. "Novell Inc acquires a minority stake in Red Hat Inc (1999/03/09)". Thomson Financial. Archived from the original on May 23, 2009. Retrieved October 28, 2008. https://web.archive.org/web/20090523112459/http://www.alacrastore.com/storecontent/Thomson_M%26A/Novell_Inc_acquires_a_minority_stake_in_Red_Hat_Inc-859992020 ↩