Red Hat to Buy Object and Block Storage Company Inktank for $175M

Cloud MoneyOpen source software company Red Hat has agreed to acquire software-defined storage company Inktank, whose object and block storage technology helps customers scale their cloud storage to the exabyte-level on cost-effective commodity hardware.

According to its Wednesday announcement, Red Hat will pay approximately $175 million in cash for Inktank in a deal that’s expected to close in May 2014. Inktank began in 2012 when it was spun out of web host and cloud services provider DreamHost.

With its own GlusterFS-based storage offering, Red Hat is positioned to become a leader in open, software-defined storage.

Inktank uses the open source, software-defined storage system known as Ceph, which it is quickly gaining popularity among users of the OpenStack framework. According to the OpenStack Foundation, approximately 20 percent of all OpenStack clouds deploy Ceph for block storage.

Inktank’s main offering, Inktank Ceph Enterprise, allows users to run production Ceph clusters at scale and improve the economics and management of storage on public and private clouds.

DreamHost had led to the development of Inktank, but also Ceph itself. DreamHost’s co-founder and CTO Sage Weil was among the key people involved in the creation of Ceph about a decade ago.

In 2004, while working on his Ph.D., Weil was part of the research team at UC Santa Cruz that did early work on Ceph, sponsored by the U.S. Department of Energy. After gaining his doctorate, he continued work on Ceph with a small team of engineers at DreamHost which eventually became Inktank.

In 2011 Bryan Bogensberger, a senior executive at DreamHost, developed the business plan for spinning out Inktank. With Bogensberger at the helm as president and COO, the company launched in 2012 with an initial startup investment of $5 million from DreamHost before attracting outside investment.

Inktank’s first customer was also DreamHost, which used Inktank to support DreamHost’s object storage service, DreamObjects, the first public commercial deployment of Ceph, with its September 2013 beta launch. DreamObjects has now served more than 10,000 users.

It’s now expected that Red Hat’s backing of Inktank will drive further development of the open-source Ceph project, and help more organizations use this technology in cloud computing environments.

Red Hat EVP and CTO Brian Stevens said in a statement, “Inktank has done a brilliant job assembling a strong ecosystem around Ceph and we look forward to expanding on this success together. The strength of these world-class open storage technologies will offer compelling capability as customers move to software-based scale-out storage systems.”

SAP Expands Cloud Services, Data Center Footprint

serversSAP is making its Business Suite available via cloud as a subscription service, the company announced Tuesday. SAP also announced on Monday that it has established its first two data centers in the Asia Pacific region, which will help support its cloud offerings.

SAP plans to migrate customers to the cloud with SAP HANA Enterprise Cloud, citing McLaren, Schaidt Innovations and Levi Strauss as early adopters of the service. The company is offering its flagship product Business Suite, as well as Business Warehouse and the SAP HANA platform on a subscription basis, and delivering them in a private managed cloud environment.

SAP announced HANA Cloud Platform in March, so making its suite of business applications available via cloud is a continuation of SAP’s move into cloud services. That move includes a January decision to increase investment in cloud services and forecast higher revenues from them.

“Today is a significant step forward for SAP’s transformation, as we are not only emphasizing our commitment to the cloud with new subscription offerings for SAP HANA, we are also increasing the choice and simplicity to deploy SAP HANA,” said Dr. Vishal Sikka, member of the Executive Board of SAP AG, Products & Innovation. “In addition, we are expanding our global presence with a comprehensive in memory-centric data center plan, dramatically simplifying our customers’ IT landscapes.”

Prices are not included in the announcement, but will likely be comparable to rival Oracle, which has embraced cloud computing much more quickly, and to other cloud business app offerings, such as those offered by Netsuite and Salesforce.

SAP has also bolstered its migration services to help existing customers transition to the cloud and integrate cloud and on-premise services. Existing maintenance agreements for support and upgrade of migrated apps will be honored by SAP.

Previously, enterprises could subscribe to SAP HANA as a cloud service through partners Savvis or HP, which provide the hosting and in HP’s case the platform.

AwesomeCloud Expands Cloud Computing Partner Program in 2014

Awesome Cloud Services recently announced its plan to expand its growing Channel Partner Program in 2014. Expansion efforts will include new technology solutions as well as ongoing cloud computing sales and marketing resources, enabling channel partners to grow their cloud services client base.

As part of the Applied Innovations family, the AwesomeCloud team has been delivering hosted solutions since 1999. With 15 years of industry experience, AwesomeCloud is in a unique position to deliver the white label cloud infrastructure as well as the sales and marketing guidance to help established and aspiring partners alike add new recurring revenue through AwesomeCloud’s Channel Partner Program.

With an array of cloud computing sales guides and marketing materials, AwesomeCloud will continue to deliver best-in-class white label cloud infrastructure as well as the sales and marketing resources to build your MSP’s cloud computing client base.

For a list of existing cloud computing sales guides, please visit the link below:

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About Awesome Cloud Services
AwesomeCloud is a White Label Cloud Services Provider offering cloud computing services to channel partners, enabling them to generate entirely new revenue streams by delivering white label cloud services to each of their clients. AwesomeCloud offers a wide range of secure, customizable white label cloud computing solutions, including Infrastructure as a Service (IaaS), Business Continuity and Disaster Recovery, as well as Microsoft SPLA Licensing (Exchange, Lync, SharePoint, Office, and others).