Blog Post

Mirantis wants to part ways with Red Hat and it’s easy to see why

In June 2013, Red Hat participated in a $10 million Series A funding round of Mirantis which was, at the time, a sort of super-integrator for assembling OpenStack clouds. Now Mirantis wants extricate itself from that deal and is negotiating to make that happen, according to two sources close to the situation.

This should not be hugely surprising given the bad blood that has flowed between the companies over the past year. In October 2013, five months after the[company] Red Hat [/company]investment,  Mirantis decided to offer its own enterprise-focused OpenStack distribution. Small problem: Red Hat has positioned itself as the enterprise-ready OpenStack distribution, hoping to repeat its success from the Linux realm. So in Red Hat’s eyes, Mirantis had gone from being an implementation/deployment/consulting partner to an outright competitor. That had to hurt.

Adding fuel to the fire, last June, Red Hat bought eNovance, an OpenStack integrator, for $95 million, getting some of the implementation experience Mirantis has.

As to whether Red Hat and Mirantis are in talks to undo the investment, a Red Hat spokesman said the company does not comment on rumors and speculation. (FWIW, that is just what Red Hat said last month when asked if it was buying [company]FeedHenry[/company], which it bought Thursday for $82 million.) [company]Mirantis[/company] had no comment.

But I’m guessing we’ll be hearing something official soon, probably in connection with a Series B round of funding for Mirantis.

Note: This story was updated at 5:51 a.m. September 21 to reference Red Hat’s acquisition of eNovance.

4 Responses to “Mirantis wants to part ways with Red Hat and it’s easy to see why”

  1. @deborah well that would be strange since red hat’s investment in Mirantis was disclosed in June 2013. But if you have information that they bailed within 6 months of that deal i’d love to know.
    Neither Mirantis nor red hat would comment but other sources close to the deal said mirantis wants to buy out Red Hat’s stake. News to come soon i hear.
    https://gigaom.com/2013/06/06/mirantis-rakes-in-more-vendor-funding-this-time-from-red-hat-ericsson-and-sap/

  2. Bill Bickel

    Does it feel like it to anyone else that the Mirantis guys drum up Red Hat’s name when they want to make sure people are not forgetting about Mirantis ? And if there is drama to make Red Hat sound bad, all the better. A bit like an actor or actress getting themselves in trouble to stay in the press.
    I see Mirantis painting Red Hat as a bad-type guy, which is quite hunmorous, since Red Hat is a very positive force for end users in the computing landscape. To be able to be open source, and be profitable is a rare thing that they have pulled off. And to help enable open source software to be accepted and to lower prices on most all infrastructure software.
    From what I hear the Mirantis people are kina ruthless, so when I read this, it sounds like Mirantis wanting publicity on Red Hat’s back.

    • sebastianstadil

      That’s possible Bill, but this sounds like the kind of news that neither Mirantis nor Red Hat would want known.

      What do you mean by the Mirantis people being ruthless?