In a major move, Red Hat has announced acquisition of a containerization company CoreOS, which commercializes a product based on Google’s open-source Kubernetes technology. This $250 million deal is expected to bring momentum to a Google-created technology used by companies to manage software running in data centers and in the cloud.
The move gives Red Hat a prominent name to keep commercializing hot open-source software as part of its offering. Red Hat’s core business is taking open-source products, such as the Linux operating system, which are collectively created by a large public community and selling support and customization services around them.
CoreOS was built to commercialize an open-source product by the same name. Container technology is a key part of a Google-developed open-source technology called Kubernetes. In a publicly made statement, the company said, “By combining CoreOS’s complementary capabilities with Red Hat’s already broad Kubernetes and container-based portfolio, including Red Hat OpenShift, we at Red Hat aim to further accelerate adoption and development of the industry’s leading hybrid cloud platform for modern application workloads.”
CoreOS has 130 employees, who are joining Red Hat, and has raised $50 million, according to CrunchBase, the bulk of it from Alphabet’s venture arm GV, formerly known as Google Ventures.
“The next era of technology is being driven by container-based applications that span multi- and hybrid cloud environments, including physical, virtual, private cloud and public cloud platforms. We believe this acquisition cements Red Hat as a cornerstone of hybrid cloud and modern app deployments,” said Paul Cormier, president, Products and Technologies, Red Hat. Read more…