Software Defined Talk

Episode 120: RedHat buys CoreOS, Heptio DOES NOT have a distro - the kubernetes kids are over their Christmas hangovers


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Red Hat buys CoreOS, 451 says the container market is worth $1.5bn now and will more than double by 2021, Heptio and Cisco put out Kubernetes distros. Also, Bezos, Buffet, and Dimon are gonna fix healthcare.

75% of IT decision-makers believe “that container management and orchestration software, such as Kubernetes, is sufficient to replace private cloud software, such as OpenStack or VMware,” @ripcitylyman & @alsadowski (@451Research).

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  • KublaiKash: RedHat Buys CoreOS

    • Price of $250m - “an innovator and leader in Kubernetes and container-native solutions.”
    • $50m in funding, since 2015, but CoreOS was started in 2013.
    • Matt Rosoff: “CoreOS has 130 employee…Docker, meanwhile, has raised more than $240 million.”
    • 451 revenue estimates, July 2017, Jay Lyman: “CoreOS has about 120 employees [up from 75 reported in Sep 2016, “about 30 employees” in April 2015], and estimated annual revenue in the $15-20m range.” Sep 2016 customers: “CoreOS reports more than 1,000 paying customers across its products, with a solid group of CoreOS lightweight Linux clients and a growing number of Quay Enterprise and Tectonic customers.”
    • Plus, Ibid.: “ The company says most revenue is coming from Amazon Web Services deployments, with some bare-metal, VMware and other deployments.”
    • Good perspective on the big picture, from Al & Jay at 451: “Red Hat's efforts will likely be worthwhile because Kubernetes is more than just container management orchestration software and is actually a distributed application framework that is very well timed with enterprise adoption and use of multi and hybrid cloud infrastructures.”
    • Product description from the same: “CoreOS Tectonic wraps services – such as automated operations, application services, governance, monitoring and portability – around the Kubernetes container management and orchestration software. Automated operations have been a key focus of the latest CoreOS Tectonic update, with capabilities such as automated patching, failover and high availability and automated cluster deployment included.”
    • CoreOS describes itself: “CoreOS is the creator of CoreOS Tectonic, an enterprise-ready Kubernetes platform that provides automated operations, enables portability across private and public cloud providers, and is based on open source software. It also offers CoreOS Quay, an enterprise-ready container registry. CoreOS is also well-known for helping to drive many of the open source innovations that are at the heart of containerized applications, including Kubernetes, where it is a leading contributor; Container Linux, a lightweight Linux distribution created and maintained by CoreOS that automates software updates and is streamlined for running containers; etcd, the distributed data store for Kubernetes; and rkt, an application container engine, donated to the Cloud Native Computing Foundation (CNCF), that helped drive the current Open Container Initiative (OCI) standard.”
    • Synergy Corner! All ‘bout that k8s: “Kubernetes is a leading container orchestration tool for organizations of all sizes, on its way to potentially becoming as ubiquitous as Linux….We are thrilled to continue this mission at Red Hat and work to accelerate bringing enterprise-grade containerized infrastructure and automated operations to customers.” But they also throw in that original mission: “our mission to make the internet more secure through automated operations.”
    • 451: “Red Hat will continue to support CoreOS customers as it integrates Tectonic and other CoreOS technology into its own offerings, primarily OpenShift. Red Hat also indicates it will open-source the Tectonic software as it has with previously acquired technologies.”
    • More on what Red Hat will do with it: “Red Hat intends to leverage the CoreOS Tectonic container stack to bolster and enhance OpenShift and RHEL capabilities. In particular, Red Hat says the deal will help it to improve security of container and cluster deployments, enable portability of container applications across hybrid cloud infrastructures and further drive ease of use and automation in its software.”
    • Combined market-share. This is based off early, CNCF surveys and such, but it’s likely a fine wet-finger-in-the-wind, from The New Stack: “Our analysis of a CNCF survey provides some answers. Out of the 34 CoreOS Tectonic users identified, five also use Red Hat’s OpenShift. Thus, the combined entity would still have just 14% of respondents using it to manage containers. Only 4 percent of Docker Swarm users said they also used Tectonic.”
    • Wut?: “According to a 451 Research Advisors project survey of 201 enterprise IT decision-makers at large container-using organizations in April and May 2017, three-quarters [75%] of them indicated that container management and orchestration software, such as Kubernetes, is sufficient to replace private cloud software, such as OpenStack or VMware. “
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