The deal is expected to be worth $250 million. View in browser »
The New Stack Update

ISSUE 102: Red Hat Takes on CoreOS

Talk Talk Talk

“With our API, our customers are basically building the next Facebook, the next Instagram, so features like re-ranking the feed, aggregating the feed — as soon as the data becomes a bit larger, it becomes exponentially more difficult.”

Stream co-founder and chief executive officer, Thierry Schellenbach.
Add It Up
47% of Surveyed Companies' Employees Are Open Source Contributors
CoreOS, Red Hat, and Kubernetes Competition
Let us count the ways Red Hat’s announced intention to buy CoreOS affects the rest of the container ecosystem. Container runtime development will go forward, with perhaps more emphasis on the Kubernetes container runtime interface (CRI-O) project. However, the engineers at Docker, CoreOS and Red Hat continue to make contributions to containerdrkt and Atomic. CoreOS’s Container Linux appears to be end-of-life in favor of Red Hat’s offering. CoreOS-led etcd and flannel are already core components of many Kubernetes stacks and that will likely continue. Red Hat may also take the container registry Quay and bundle it into their larger container offering. Which brings us to OpenShift. How will these current and future market adoption rates be affected?
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.  
Overall, 69 percent of the survey uses Kubernetes, with little specific evidence that they are wed to one company’s distribution. Despite partnerships that allow it to be run within other cloud providers’ environments, OpenShift will continue to look up at AWS, Azure and Google in terms of how and where Kubernetes is deployed. In a multi-cloud world, it is likely that companies will deploy applications to more than one Kubernetes environment.
Red Hat bought some new customers and engineers, but it remains to be seen if the CoreOS addition will provide additional synergies. Stay tuned.
What's Happening

How craft relates to the way we work, and how it's relevant in a culture that puts a premium on speed and consumption, is what we discuss in this episode of The New Stack Analysts podcast; in the discussion, we're joined by RedMonk co-founder James Governor and Charity Majors, co-founder and chief executive officer. It's also a core theme for Monki Gras, the conference in London that Governor is hosting this week, and where Majors is one of the speakers.

The Monki Gras Conference: What It Takes to Make the Magic Things

Red Hat Takes on CoreOS

This week, we got news that Red Hat is in the process of acquiring CoreOS. The 130 CoreOS employees, many of which we’ve gotten to know over the years covering the company, will be working for Red Hat in a deal expected to be worth $250 million. CoreOS has a number of important technologies in the container and Kubernetes space, including Tectonic (a commercial Kubernetes platform), Container Linux (a lightweight self-updating Linux distribution) and Quay (an enterprise-ready container registry). The company also developed etcd, the key-value store that keeps track of pod and container locations for Kubernetes.

Now pulling in over $2.4 billion in sales per year, Red Hat’s acquisition game has been, historically speaking, on point, helping the company accumulate a solid stack of open source enterprise technologies. The company bought JBoss to establish a foothold in the enterprise Java space, Qumranet for Xen virtualization, Inktank (which managed Gluster), Ceph for scale-out storage, 3scale for API management, Ansible for automated provisioning and configuration, and Codenvy for its cloud-based IDEs.

The CoreOS purchase also makes good sense. Despite the similarities of the software lines of the two companies, Red Hat claims there is very little overlap and the two stacks are complementary. OpenShift will benefit from the automation capabilities in Tectonic. The self-updating and container-optimized components of CoreOS’ Container Linux may find a home in Red Hat Enterprise Linux and Red Hat Enterprise Linux Atomic Host. And best of all for Red Hat, the combined force of CoreOS and Red Hat engineers working on Kubernetes and other upstream open source cloud-native technologies will be formidable.

Keep tabs on The New Stack, as we follow closely how Red Hat integrates the CoreOS technologies into its own services and software stacks.

Coder-as-Accountant: Serverless System Design Is Being Based on Costing Models

Calculating the costs of building an application with a serverless architecture is set to fundamentally shift the role of developers and systems architects within an enterprise. While in the past, tech leads may have needed to design solutions within certain budget parameters, with serverless this flips on its head, with the applications being built likely to set company budgets of the future.

With Unstable Meltdown Patches You Might Want to Consider Detection Instead

It’s been three weeks since serious vulnerabilities were announced in modern CPUs and the problems are far from being resolved. The patches, both the software-based and hardware-based ones, have caused instability on some systems, raising the question of whether it’s best to err on the side of caution and choose detection over patching.

Microsoft Azure Event Grid Ties Together Serverless Functions, Cloud Services

Traditional polling and pub/sub-styled communication technologies don’t work well for the fast-paced nature of microservices. To help its Azure users, Microsoft has launched into general availability its Azure Event Grid service, which promises an easy way to connect serverless functions with each other, as well as with other Azure cloud services.

CNCF’s Rook Project Brings Storage Capability to Cloud-Native Workloads

Cloud-native storage software storage Rook has been accepted by the Cloud Native Computing Foundation (CNCF) as an Inception-level project. Rook takes on the tricky issue of setting up storage for applications that run primarily in cloud environments, given the complexities of storage and the ease of which workloads can be moved across different cloud environments. 

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