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

About This Episode

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.

The kubernetes market be like…

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

@dgonyeo

  • 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. “
  • Bad day for beards.
  • Coté wrote a the first 451 report on them in 2014 - ain’t he precious!
  • The wikibon crew says little revenue traction, and has a diagram.
  • Some contributor boasting:

  • More coverage: The Register, click-slides at CRN.

The Heptio kubernetes distro…or not?

  • Heptio releases it’s managed kubernetes service (I get that right?) - how’d that Bluebox business work out?
  • Or, wait, no: I think in this case, sometimes a distro’s just a distro….plz advise.
  • Official page, with a link to a PDF, even!
  • Multi-cloud positioning (they even italicized it!): “Just as container technology took off in large part to organizations’ move to the cloud, Kubernetes’ continued proliferation can be attributed to the growing importance of multi-cloud. Beyond the threat of lock-in to a single cloud provider — which is real — organizations need the flexibility to deploy applications in the environment where they are best suited. Kubernetes provides the right level of abstraction to deploy applications on a cloud solution and to an environment that looks and behaves the same on-premises.” # TAM: Container Cash Context
  • “451 Research's Market Monitor expects the application container market to be worth $1.6bn in 2018 with a CAGR of 36% through 2021,” Al and Jay in the CoreOS acquisition write-up.
  • Also: We now estimate total app container market revenue at just over $1.1bn for '17, growing at a CAGR of 35% to $1.6bn in '18.
  • And some 451 numbers, from a recent webinar:

  • Narrowing down to “orchestration”:

  • The rest of the taxonomy, numbers not in slides:

AWS snubs healthcare industry

  • Not exactly the intended headline, I know.
  • ”They decided their combined access to data about how consumers make choices, along with an understanding of the intricacies of health insurance, would inevitably lead to some kind of new efficiency — whatever it might turn out to be.” And also speculation of lame things like making booking doctors easier.
  • Just lookin’ to make things cheaper, no big deal.
  • No details, but a theory: “Based on the executives who have been named to top roles at the new company, Jefferies & Co. analyst Brian Tanquilut said there is a good chance it will eventually try to negotiate prices directly with health care providers like hospitals, bypassing companies that act as middlemen.”
  • Ben’s on that aggregation theory shit: ‘The key words there are “commoditize and modularize”, and this is where the option I dismissed above comes into play, but not in the way most think: Amazon doesn’t create an insurance company to compete with other insurance companies (or the other pieces of healthcare infrastructure); rather, Amazon makes it possible — and desirable — for individual health care providers to come onto their platform directly, be that doctors, hospitals, pharmacies, etc…. After all, if Amazon is facilitating the connection to patients, what is the point of having another intermediary? Moreover, by virtue of being the new middleman, Amazon has the unique ability to consolidate patient data in a way that is not only of massive benefit to patients and doctors but also to the application of machine learning.’
  • The upshot of all of this, at the moment, is that there were no details given and much fan-boy speculation typed up. Which is fine, please fix US healthcare.
  • A perfectly done story from NY Times: lots of context, much speculation, and all sorts of input.

Relative to your interests

  • KuCisco - Cisco wants some of that sweet Kubernetes Kash: “The company said the Container Platform takes care of the “setup, orchestration, authentication, monitoring, networking, load balancing and optimization” of containers. Deployment of containers is also simplified through automation, as the platform takes care of the most repetitive tasks in this process. It can also be extended to other important aspects of IT, such as networking, security and more, officials said.”
  • Private cloud boosters have a new URL to point to: “The era of the cloud’s total dominance is drawing to a close.”
  • Sorry to make you look at this guy, but split view on the iPad is pretty cool, email and Newsify works too!

Conferences, et. al.

SDT news & hype

Looks good with sun glasses…
…or without!

Recommendations

Matt: Bruce Sterling/Jon Lebkowsky State of the World 2018; New Zealand’s South Island.
Brandon: Manhunt UNABOMBER
Coté: iPad Pro 10.5”. Yup. SHIT DOG!

Episode Details

February 5th, 2018

56 mins 30 secs

Download MP3 (26.8 MB)