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Red Hat Partners IBM, Hortonworks for Hybrid Architecture

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Red Hat recently announced a collaboration with Hortonworks and International Business Machines (IBM - Free Report) for Open Hybrid Architecture Initiative, which is aimed at bringing big data to hybrid cloud environments.

The initiative is aimed at managing big data workloads across multi-cloud, edge architectures and hybrid on-premises to help customers take care of their data and access analytical and decision-making applications.

With data increasing at a massive pace, enterprises require applications and security to help them arrive at business decisions faster than ever. The collaboration will cater to this need and also provide customized tools that can be deployed on-premise with hybrid cloud environments.

Deal Details

Red Hat’s collaboration with Hortonworks and IBM will help deploy big data analytical tools, machine learning, cloud management solutions and security on Red Hat OpenShift enterprise container and Kubernetes application platform.

Reportedly, Hortonworks will work to certify its big data products Hortonworks Data Platform, Hortonworks DataFlow and Hortonworks DataPlane as “Red Hat Certified Containers on Red Hat OpenShift.”

Moreover, IBM is also working toward Red Hat OpenShift certification process for its private cloud platform.

Notably, IBM and Hortonworks will continue their collaboration made last June to provide enterprises with decision making power based on informative data output sets.

We believe this collaboration will help Red Hat’s customers take advantage of the hybrid data architecture, which enables quick decision making.

Moreover, Red Hat’s partners have played an important role in helping the company deliver value and success to its customers.

Red Hat, Inc. Revenue (TTM)

Red Hat, Inc. Revenue (TTM) | Red Hat, Inc. Quote

Partnerships to Boost the Top Line

Red Hat’s expanding partner base with established IT players like Hewlett Packard Enterprise, IBM, Microsoft (MSFT - Free Report) , Oracle, SAP SE, Cisco, Dell, Fujitsu Limited and many others is a positive.

Additionally, the company’s collaborations with cloud providers like Amazon, Google and Alibaba position it for deal wins on a continuous basis. This is expected drive deferred revenues. Notably, in the last reported quarter, total deferred revenues increased 19% year over year to $2.4 billion.
However, Pivotal Container Service (PKS) formed through the partnership of Google, Pivotal and VMware is a significant threat in this regard. Moreover, Red Hat’s increasing investments on emerging technologies is expected to put pressure on margins.

Nevertheless, this Zacks Rank #3 (Hold) company is expected to benefit from its growing partnerships with big names and robust demand for OpenShift.

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