IBM Acquires Red Hat for $34 Billion USD: Linux, Hybrid Cloud, OpenStack, & Kubernetes Solutions

IBM Acquires Red Hat for $34 Billion USD: Linux, Hybrid Cloud, OpenStack, & Kubernetes Solutions

"Game Changing" Move by IBM the Largest Software Company Acquisition in Corporate History

IBM announced this weekend that it will acquire the shares of Red Hat (NASDAQ: RHT) at a $190, a 62.8% premium to their closing price of $116.68 in a $34 billion USD deal still subject to approval by regulators & stockholders. If closed successfully, the deal will represent the largest purchase price paid for a software company in history, topping the 2016 acquisition of LinkedIn by Microsoft for $26 billion USD. In initial comments on the merger, IBM CEO Ginni Rometty stated: “The acquisition of Red Hat is a game-changer. It changes everything about the cloud market. IBM will become the world’s #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.” Founded in 1994, Red Hat is one of the oldest and most widely used Linux distributions available for data centers today. Red Hat was the first open source software company to $500 million USD in annual revenue and is expected to surpass $3 billion in revenue in 2018. IBM gains the Red Hat Enterprise Linux codebase, programming talent, patents/IP, & goodwill, as well as the OpenShift, Kubernetes, OpenStack, JBoss, CoreOS, & Ansible resources. Red Hat has over 12,600 employees with corporate headquarters in Raleigh, North Carolina. As IBM is projecting cloud scale-out at the global level as a $1 trillion USD annual market, Red Hat's programming & engineering talent is already innovating at the highest levels of implementation for Fortune 500 corporations and provides an industry leading Linux product suite for data center management. This merger could have a major impact on the future of CentOS.

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Red Hat Acquires CoreOS to Expand New Kubernetes & Linux Container Solutions

Red Hat Acquires CoreOS to Expand New Kubernetes & Linux Container Solutions

Container Linux, Tectonic, etcd, rkt, & Flannel to be integrated into OpenShift & Atomic Host

A seismic shift in the competitive Linux container and Kubernetes orchestration solutions landscape occurred on January 30th, 2018 with the announcement from Red Hat, Inc. that the company had finalized a deal to acquire CoreOS, along with their complete software portfolio & staff of 130 programming experts, for a price of $250 million USD. CoreOS has been a leading innovator in the open source community for data center management tools with the production of Container Linux, rkt, etcd, Flannel, & the Tectonic platform for Kubernetes cluster servers. Along with these resources, Red Hat also purchased the Quay.io private Docker registry service which CoreOS acquired in 2014 and used to start their NYC office. CoreOS was founded in 2013 in Palo Alto by Alex Polvi (CEO), Brandon Philips (CTO), and Michael Marineau. CoreOS had previously raised a total of $48 million USD from Google Ventures, Intel Capital, Sequoia Capital, Y Combinator, Accel Partners, Kleiner Perkins Caufield & Byers, and others to fund their start-up operations. Joe Fernandes, senior director of OpenShift Product Management at Red Hat summed up the rationale behind the acquisition by stating, "We see tremendous synergy both in our open source cultures and across our respective product portfolios." CoreOS's leading enterprise customers such as Verizon, eBay, Salesforce, Veritas, & Ticketmaster will also be migrated gradually to integrated Kubernetes and Linux container services managed by Red Hat.

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Containers-as-a-Service (CaaS): Docker & Kubernetes Platform Comparison

Containers-as-a-Service (CaaS): Docker & Kubernetes Platform Comparison

Red Hat OpenShift, CoreOS Tectonic, Cloud Foundry, Fabric8, Canonical, & Mirantis Cloud

Docker was founded in 2010 by Solomon Hykes as an internal project of the PaaS company dotCloud and part of the Y Combinator start-up fund. In 2013, Benjamin Golub joined the company as CEO and the pair navigated a hugely successful pivot to focus on container software development, leading to a total of $237 million USD in venture capital seed funding in Silicon Valley. According to Sramana Mitra, Docker received funding from Goldman Sachs, Coatue, Northern Trust, Lightspeed Venture Partners, AME Cloud Ventures, Trinity Ventures, Sequoia Capital, Greylock Partners, Benchmark, Sequoia Capital, Jerry Yang, and Insight Venture Partners, ultimately leading to a valuation of the company of over $1.3 billion USD and "unicorn" status. Kubernetes was first announced in 2014 as an open source project growing out of Google's internal "Borg" platform, with version 1.0 released in 2015 under the management of the Cloud Native Computing Foundation (CNCF). Kubernetes automates cloud orchestration for containerized applications, allowing them to scale beyond the single server model to support the highest levels of enterprise web traffic. Both Docker and Kubernetes have seen huge adoption across all business sectors internationally in the last few years, becoming the foundation of best practices in DevOps as companies seek to modernize their legacy software applications and transition to fully embrace advanced cloud computing web server architecture. This year, Steve Singh moved from his role as Docker's Chairman of the Board to replace Golub as the CEO of the company.

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CoreOS Tectonic: Container Linux, Quay.io, rkt, & etcd

CoreOS Tectonic: Container Linux, Quay.io, rkt, & etcd

Lightweight Linux Distro for Native Kubernetes Web Server Clusters & SaaS Apps

CoreOS, the cloud software development company that manages the Container Linux distribution, recently released Tectonic version 1.64 (5/31/2017) which provides a quick and easy way to deploy a Kubernetes cluster for web/mobile app support on AWS or a self-hosted cloud server network. Core OS has over 100 open source software projects under company development on GitHub including etcd, flannel, rkt, Ignition, Clair, Matchbox, dex, and prometheus-operators. Tectonic is free to use for Kubernetes clusters of up to 10 nodes, after which a number of different enterprise, data center, & business licenses are available with professional technical support. Quay.io is another cloud SaaS product offered by CoreOS under proprietary license which helps DevOps teams manage container snapshots with Docker or rkt, Kubernetes clusters, Container Linux, & CoreOS Tectonic in production at scale. Quay.io includes container snapshot management features with integrated security, analytics, billing, monitoring, repository builds, automated backups, and version control for web server stack software with advanced GitHub, Bitbucket, or Gitlab support (Dockerfile Build Triggers).

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