B00M! #RedHat bought #CoreOS for $250 millions!

‪#RedHat to acquire #CoreOS. Boom. https://www.redhat.com/en/about/press-releases/red-hat-acquire-coreos-expanding-its-kubernetes-and-containers-leadership‬

#coreos #redhat

Holger Mueller dissects the #RedHat acquiring #CoreOS press release in his cusomary style and assesses the impact on ther container use of enterprises.

#RedHat is #acquiring #CoreOS, a container management startup, for $250 million as part of an extension in the #OpenShift #Kubernetes #product

Red Hat to Acquire CoreOS, Expanding its Kubernetes and Containers Leadership
#CoreOS
https://www.hgunified.com/ho…/red-hat-to-acquire-coreos.html

+Red Hat to buy VC-backed +CoreOS for $250 Million

#RedHat #CoreOS #opensource #Cloud #ENSW

At $250m, #RedHat paid a lofty premium for a company whose revenue was negligible. Beyond some revenue, what Red Hat really got was a team whose open source mindset is a near-perfect pattern match for Red Hat, not to mention a company that has been doing some of the more interesting tooling around #Kubernetes. All of which is worth much more than $250m for Red Hat.

Red Hat currently generates more than $2bn annually in revenues, but the key to its future is to add a few billion through things like Ansible (automation) and, in particular, Kubernetes (read: OpenShift). Red Hat executives have regularly touted the benefits of OpenShift to its business, leading to larger deals that pull along other products (like Red Hat Enterprise Linux).


#GrowthStrategy #Mergers #DealMaking #Takeovers #Acquisitions #TechCompanies #MergerandAcquisition #Technology
Why Red Hat's $250M acquisition of #CoreOS is cheap compared to failing in containers
https://www.techrepublic.com/article/why-red-hats-250m-acquisition-of-coreos-is-cheap-compared-to-failing-in-containers/

Red Hat Acquires CoreOS For $250 Million

Red Hat announced that it is acquiring CoreOS, a San Francisco-based startup, for $250 million. In what is considered to be one of the largest acquisitions made by Red Hat, this deal further consolidates the position of the company in the open source market.

CoreOS has been the pioneer of container-optimized Linux operating system. Container Linux, the flagship product from CoreOS, is a lightweight Linux OS designed to run containerized applications. The company has built an alternative to Docker Engine in the form of rkt. In 2014, CoreOS acquired Quay.io, a New York-based startup that developed a private registry for containers. CoreOS Tectonic is a Containers as a Service (CaaS) offering based on Kubernetes.

Red Hat has been investing heavily in containers. OpenShift, the PaaS offering from Red Hat, has been refactored to make Kubernetes the core of its platform. Red Hat started Project Atomic Hosts as an answer to Container Linux. The company has also built an OCI-complaint container runtime for Kubernetes called CRI-O. Though Red Hat has its own offerings that compete with CoreOS product portfolio, this acquisition helps the company in strengthening its position in the container and Kubernetes ecosystem. With the acquisition of CoreOS, Red Hat engineers now lead or co-lead 15 Kubernetes SIGs.

One of the most significant moves from Red Hat could be open sourcing Tectonic and making it a free CaaS offering. OpenShift will be positioned as an enterprise PaaS backed by commercial support and services. Container Linux and Tectonic would expand Red Hat's footprint in the public cloud while RHEL and OpenShift would target enterprise customers. This would help Red Hat compete with Canonical’s Ubuntu, the top Linux distribution used in the public cloud.

The users of Container Linux enjoy automatic “over the air” updates that seamlessly upgrade the operating system. By merely rebooting the machine, the operating system would switch to the latest version without the need for manual configuration. It is not clear whether existing customers of Container Linux would continue to get these automated updates. According to the official FAQ from Red Hat, RHEL would continue to be the foundation of the stack. It is not clear whether Red Hat would continue to support Container Linux in the future. This is not good news for the users of CoreOS Container Linux.

This acquisition puts pressure on Docker, Inc, which has raised over $240 million of funding from a variety of investors. It has to move fast in acquiring enterprise customers to drive adoption of its commercial products. In the enterprise segment, Red Hat is one of the key competitors of Docker, Inc.

#RedHat #CoreOS