Red Hat announced its agreement to acquire 3scale, a provider of application programming interface (API) management technology.
The addition of 3scale will enable Red Hat to strengthen its enablement of the API economy with simplified cloud integration and microservices-based architectures. Red Hat’s its existing API portfolio includes Red Hat JBoss Middleware, Red Hat OpenShift and Red Hat Mobile Application Platform.
According to Forrester, 40 percent of U.S. companies will have API management solutions in 2020, spending $660 million in that year. Managed APIs are becoming strategic in the enterprise because they enable organizations to deliver new services, enabling services (as APIs) to be monetized as products.
3scale, founded in 2007, offers a hybrid cloud based API management platform, which separates the cloud management layer from the API gateway.
3scale provides this API management platform within a self-service model at more than 700 organizations across multiple industries, including Campbell’s Soup; Cartera Commerce; CrunchBase; Johnson Controls; Oxford University Press; SITA; and the University of California, Berkeley. 3scale has offices in Barcelona and San Francisco.
Meanwhile, Red Hat announced financial results for the first quarter of fiscal year 2017 ended May 31, 2016.
Total revenue of Red Hat for the first quarter was $568 million (+18 percent), while subscription revenue for the quarter was $502 million (+18 percent). Red Hat’s subscription revenue in the first quarter was 88 percent of total revenue.
“Digital transformation and cloud computing are changing the way companies compete in virtually every industry today. Organizations that rapidly embrace agile IT technology are succeeding as industry innovation accelerates around them,” said Jim Whitehurst, president and CEO of Red Hat.