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.