Wednesday Red Hat announced first quarter results posting a 17 percent increase in revenue. According to the press release, “Our strong start to FY15 is a direct result of our ability to consistently deliver meaningful value to enterprise customers,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. “We now count 94% of the Fortune 500 and 90% of the Fortune Global 500 as customers. These are some of the most sophisticated IT organizations in the world, and many continue to increase their purchases from Red Hat to modernize their IT infrastructure with cloud enabling technologies.”
Red Hat attributes the strong increase in revenue to its sales force. “Our global sales organization continued to execute at a high level during Q1, leading to double digit growth in every region. This execution, combined with the cross-selling of our expanded portfolio of innovative technologies, contributed to organic subscription revenue growth of 18% and operating cash flow growth of 16%, all of which were above the high-end of our guidance,” stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat.
In line with their previous acquisition strategy, Red Hat also announced Wednesday its agreement to purchase privately held French company eNovance, a provider of open source cloud services. eNovance will receive approximately 50 million Euros in cash and 20 million in Red Hat common stock. Red Hat has purchased about a dozen startups. They expect the addition of eNovance’s systems integration to help meet the demand for enterprise OpenStack Consulting.
Analysts from the spring Open Stack Summit said, “Integrators such as eNovance will continue to assist cloud service providers and enterprises in building large OpenStack clouds. … The future for OpenStack is looking very bright.”
eNovance was founded in France by Raphaël Ferreira, Nicolas Marchal and Pierre Molin. The company helps service providers and enterprises manage applications and deploy cloud infrastructure based on OpenStack.