Published: Feb. 5, 2018, 11 p.m.

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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.

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75% of IT decision-makers believe \\u201cthat container management and orchestration software, such as Kubernetes, is sufficient to replace private cloud software, such as OpenStack or VMware,\\u201d @ripcitylyman & @alsadowski (@451Research).

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This episode brought to you by: Datadog!

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This episode is sponsored by Datadog, a monitoring platform for cloud-scale infrastructure and applications. Built by engineers, for engineers, Datadog provides visibility into more than 200 technologies, including AWS, Chef, and Docker, with built-in metric dashboards and automated alerts. With end-to-end request tracing, Datadog provides visibility into your applications and their underlying infrastructure\\u2014all in one place. Sign up for a free trial (and get a free Datadog T-shirt) today at https://www.datadog.com/softwaredefinedtalk.

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Yes, thank you, I\\u2019D LIKE A FREE T-SHIRT, SON!

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• Check out this detailed example of monitoring RabbitMQ, and some recent Java stuff: APM & distributed tracing for Java applications.
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• Do it on your own and get a free t-shirt!
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KublaiKash: RedHat Buys CoreOS

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• Price of $250m - \\u201can innovator and leader in Kubernetes and container-native solutions.\\u201d
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• $50m in funding, since 2015, but CoreOS was started in 2013.
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• Matt Rosoff: \\u201cCoreOS has 130 employee\\u2026Docker, meanwhile, has raised more than $240 million.\\u201d
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• 451 revenue estimates, July 2017, Jay Lyman: \\u201cCoreOS has about 120 employees [up from 75 reported in Sep 2016, \\u201cabout 30 employees\\u201d in April 2015], and estimated annual revenue in the $15-20m range.\\u201d Sep 2016 customers: \\u201cCoreOS 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.\\u201d
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• Plus, Ibid.: \\u201c The company says most revenue is coming from Amazon Web Services deployments, with some bare-metal, VMware and other deployments.\\u201d
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• Good perspective on the big picture, from Al & Jay at 451: \\u201cRed 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.\\u201d
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• Product description from the same: \\u201cCoreOS Tectonic wraps services \\u2013 such as automated operations, application services, governance, monitoring and portability \\u2013 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.\\u201d
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• CoreOS describes itself: \\u201cCoreOS 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.\\u201d
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• Synergy Corner! All \\u2018bout that k8s: \\u201cKubernetes is a leading container orchestration tool for organizations of all sizes, on its way to potentially becoming as ubiquitous as Linux\\u2026.We are thrilled to continue this mission at Red Hat and work to accelerate bringing enterprise-grade containerized infrastructure and automated operations to customers.\\u201d But they also throw in that original mission: \\u201cour mission to make the internet more secure through automated operations.\\u201d
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• 451: \\u201cRed 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.\\u201d
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• More on what Red Hat will do with it: \\u201cRed 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.\\u201d
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• Combined market-share. This is based off early, CNCF surveys and such, but it\\u2019s likely a fine wet-finger-in-the-wind, from The New Stack: \\u201cOur analysis of a CNCF survey provides some answers. Out of the 34 CoreOS Tectonic users identified, five also use Red Hat\\u2019s 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.\\u201d
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• Wut?: \\u201cAccording 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. \\u201c
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• Bad day for beards.
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• Cot\\xe9 wrote a the first 451 report on them in 2014 - ain\\u2019t he precious!
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• The wikibon crew says little revenue traction, and has a diagram.
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• Some contributor boasting:
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• More coverage: The Register, click-slides at CRN.

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The Heptio kubernetes distro\\u2026or not?

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• Heptio releases it\\u2019s managed kubernetes service (I get that right?) - how\\u2019d that Bluebox business work out?
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• Or, wait, no: I think in this case, sometimes a distro\\u2019s just a distro\\u2026.plz advise.
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• Official page, with a link to a PDF, even!
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• Multi-cloud positioning (they even italicized it!): \\u201cJust as container technology took off in large part to organizations\\u2019 move to the cloud, Kubernetes\\u2019 continued proliferation can be attributed to the growing importance of multi-cloud. Beyond the threat of lock-in to a single cloud provider\\u200a\\u2014\\u200awhich is real\\u200a\\u2014\\u200aorganizations 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.\\u201d\\n# TAM: Container Cash Context
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• \\u201c451 Research\'s Market Monitor expects the application container market to be worth $1.6bn in 2018 with a CAGR of 36% through 2021,\\u201d Al and Jay in the CoreOS acquisition write-up.
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• 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.
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• And some 451 numbers, from a recent webinar:
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• Narrowing down to \\u201corchestration\\u201d:
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• The rest of the taxonomy, numbers not in slides:
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AWS snubs healthcare industry

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• Not exactly the intended headline, I know.
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• \\u201dThey 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 \\u2014 whatever it might turn out to be.\\u201d And also speculation of lame things like making booking doctors easier.
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• Just lookin\\u2019 to make things cheaper, no big deal.
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• No details, but a theory: \\u201cBased 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.\\u201d
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• Ben\\u2019s on that aggregation theory shit: \\u2018The key words there are \\u201ccommoditize and modularize\\u201d, and this is where the option I dismissed above comes into play, but not in the way most think: Amazon doesn\\u2019t create an insurance company to compete with other insurance companies (or the other pieces of healthcare infrastructure); rather, Amazon makes it possible \\u2014 and desirable \\u2014 for individual health care providers to come onto their platform directly, be that doctors, hospitals, pharmacies, etc\\u2026. 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.\\u2019
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• 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.
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• A perfectly done story from NY Times: lots of context, much speculation, and all sorts of input.
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Relative to your interests

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• KuCisco - Cisco wants some of that sweet Kubernetes Kash: \\u201cThe company said the Container Platform takes care of the \\u201csetup, orchestration, authentication, monitoring, networking, load balancing and optimization\\u201d 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.\\u201d
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• Private cloud boosters have a new URL to point to: \\u201cThe era of the cloud\\u2019s total dominance is drawing to a close.\\u201d
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• Sorry to make you look at this guy, but split view on the iPad is pretty cool, email and Newsify works too!\\n
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Conferences, et. al.

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• Cot\\xe9 talking at DevOpsDays Charlotte, Feb 22nd to 23rd.
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• May 15th to 18th, 2018 - Cot\\xe9 talking EA at Continuous Lifecycle London.
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SDT news & hype

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• Check out Software Defined Interviews, our new podcast. Pretty self-descriptive, plus the #exegesis podcast we\\u2019ve been doing, all in one, for free.
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• Join us in Slack.
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• Buy some t-shirts!
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Recommendations

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Matt: Bruce Sterling/Jon Lebkowsky State of the World 2018; New Zealand\\u2019s South Island.
\\nBrandon: Manhunt UNABOMBER
\\nCot\\xe9: iPad Pro 10.5\\u201d. Yup. SHIT DOG!

Sponsored By:

• Datadog Free Trial: This episode is sponsored by Datadog, a monitoring platform for cloud-scale infrastructure and applications. Built by engineers, for engineers, Datadog provides visibility into more than 200 technologies, including AWS, Chef, and Docker, with built-in metric dashboards and automated alerts. With end-to-end request tracing, Datadog provides visibility into your applications and their underlying infrastructure\\u2014all in one place. Sign up for a free trial today!
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