Tremors in the IT World: Red Hat Purchases Qumranet for $107 Million

Red Hat announced today that it has acquired Qumranet for $107 million. 

Qumranet is an Israeli company best known for its sponsorship of the open-source Kernel-based Virtual Machine (KVM) system for the Linux OS.  In April 2008, it released the proprietary Solid-ICE desktop virtualization solution that uses centralized operating environments and remote rendering technology to accommodate up to 50 desktops on a single server – reportedly more than other major virtualization platforms offer.  It also offers a template feature that can be used to share OS and application sets, relieving some of the central storage and management burden – key elements required for effective cloud computing solutions.

This is an indication of the importance of virtualization and the changes that are coming to the IT industry.  Just yesterday, I posted a blog on how virtualization and cloud computing will change the way we work with computers and on how open-source solutions will have an advantage.  The market is certainly hot and the price that Red Hat paid for Qumranet, a relatively new company, highlights just how hot it is. 

I’d expect this price to draw in a number of new entrants eager to reap similar rewards.  It will also heat up the competitive race for Linux based virtualization technologies.  Any guesses what Canonical is doing now?

Related blogs:

Kris Buytaert: Red Hat grabs Qumranet
Matt Asay: Red Hat Acquires into Windows Game
Sasha: The virtualization market is entering phase II: RHT acquires Qumranet

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