Inktank, a Los Angeles open-source storage software developer, has been acquired by software subscription provider Red Hat of Raleigh, N.C., for $175 million.

Two-year-old Inktank’s primary product, Ceph, is an open-source platform designed to decrease storage costs and increase operational flexibility. A community version is available to download for free, but the company also sells an enterprise version to businesses such as Cisco Systems and Bloomberg.

The company said data stored on its Ceph software is expected to grow tenfold by the end of the year.

“We believe our open storage technologies will be critical in the management of data in the coming era of cloud computing,” said Sage Weil, Inktank’s founder and chief technology officer, in a statement.

Inktank has 15 employees in its Los Angeles office, with 35 others working remotely across the country.