IBM is acquiring APM startup Instana as it continues to expand hybrid cloud vision

As IBM transitions from software and services to a company fully focussed on hybrid cloud management, it announced  its intention to buy Instana, an applications performance management startup with a cloud native approach that fits firmly within that strategy.

The companies did not reveal the purchase price.

With Instana, IBM can build on its internal management tools, giving it a way to monitor containerized environments running Kubernetes. It hopes by adding the startup to the fold it can give customers a way to manage complex hybrid and multi-cloud environments.

“Our clients today are faced with managing a complex technology landscape filled with mission-critical applications and data that are running across a variety of hybrid cloud environments – from public clouds, private clouds and on-premises,” Rob Thomas, senior vice president for cloud and data platform said in a statement. He believes Instana will help ease that load, while using machine learning to provide deeper insights.

At the time of the company’s $30 million Series C in 2018, TechCrunch’s Frederic Lardinois described the company this way. “What really makes Instana stand out is its ability to automatically discover and monitor the ever-changing infrastructure that makes up a modern application, especially when it comes to running containerized microservices.” That would seem to be precisely the type of solution that IBM would be looking for.

As for Instana, the founders see a good fit for the two companies, especially in light of the Red Hat acquisition in 2018 that is core to IBM’s hybrid approach. “The combination of Instana’s next generation APM and Observability platform with IBM’s Hybrid Cloud and AI technologies excited me from the day IBM approached us with the idea of joining forces and combining our technologies,” CEO Mirko Novakovic wrote in a blog post announcing the deal.

Indeed, in a recent interview IBM CEO Arvind Krishna told CNBC’s Jon Fortt, that they are betting the farm on hybrid cloud management with Red Hat at the center. When you combine that with the decision to spin out the company’s managed infrastructure services business, this purchase shows that they intend to pursue every angle

“The Red Hat acquisition gave us the technology base on which to build a hybrid cloud technology platform based on open-source, and based on giving choice to our clients as they embark on this journey. With the success of that acquisition now giving us the fuel, we can then take the next step, and the larger step, of taking the managed infrastructure services out. So the rest of the company can be absolutely focused on hybrid cloud and artificial intelligence,” Krishna told CNBC.

Instana, which is based in Chicago with offices in Munich, was founded in 2015 in the early days of Kubernetes and the startup’s APM solution has evolved to focus more on the needs of monitoring in a cloud native environment. The company raised $57 million along the way with the most recent round being that Series C in 2018.

The deal per usual is subject to regulatory approvals, but the company believes it should close in the next few months.


By Ron Miller

Solo.io announces service mesh platform aimed at enterprise customers

Solo.io, a Cambridge, MA service mesh startup, announced some big changes to its approach today with a full-stack platform of services aimed squarely at the enterprise. The culmination of this will be Gloo Mesh Enterprise, a new product that will be available in Beta by the end of the year.

Service meshes are part of a cloud native, containerized approach to development that enable micro services to communicate with one another.

Idit Levine, founder and CEO at Solo, says that she began by creating individual components since launching the company in 2017 because she knew that it was early for service meshes. Today’s announcement is about bringing all of these components the company has created into a more coherent and connected enterprise product.

While she was worried at first that the pandemic would have a negative impact on business, she says that her company has been busier than ever and today’s announcement is really about giving customers what they have been asking for throughout this tumultuous year.

Most of Solo’s customers are running Kubernetes and they needed some missing pieces that Solo was happy to provide for them. The first problem is the primary reason the company started, which was to manage service meshes, and Gloo Mesh, which is based on the open source Istio service mesh, helps developers manage their service mesh clusters.

Another problem involved running containers at the edge, which required an API gateway. To that end, the company announced Gloo Edge, an API gateway built on the Envoy Proxy, an edge service proxy. Running applications at the edge means they get the resources they need to improve performance and save bandwidth.

The third piece is called Gloo Portal. This provides a centralized, self-service catalog of services that developers can tap into as they are building their applications. The final piece is Gloo Extensions, which provides a way for developers to access or build extensions called web assembly modules.

All of these pieces are available as open source, but companies that want additional functionality and support and a way to connect all of these pieces will need to buy the enterprise product. Among the additional features in the enterprise version is the ability to apply roles to the APIs in Gloo Edge to control who has access. Gloo Mesh users get production Istio support including updates and patches. It also includes a dashboard for managing clusters and developer tools for building web assembly pieces in Gloo Extension

The company has raised over $36 million, according to Pitchbook data. The most recent deal was $23 million in September. Levine says the startup has several dozen large customers at this point and 35 employees. She said she is actively hiring and expects to be at 50 soon.


By Ron Miller

Rockset announces $40M Series B as data analytics solution gains momentum

Rockset, a cloud-native analytics company, announced a $40 million Series B investment today led by Sequoia with help from Greylock, the same two firms that financed its Series A. The startup has now raised a total of $61.5 million, according to the company.

As co-founder and CEO Venkat Venkataramani told me at the time of the Series A in 2018, there is a lot of manual work involved in getting data ready to use and it acts as a roadblock to getting to real insight. He hoped to change that with Rockset.

“We’re building out our service with innovative architecture and unique capabilities that allows full-featured fast SQL directly on raw data. And we’re offering this as a service. So developers and data scientists can go from useful data in any shape, any form to useful applications in a matter of minutes. And it would take months today,” he told me in 2018.

In fact, “Rockset automatically builds a converged index on any data — including structured, semi-structured, geographical and time series data — for high-performance search and analytics at scale,” the company explained.

It seems to be resonating with investors and customers alike as the company raised a healthy B round and business is booming. Rockset supplied a few metrics to illustrate this. For starters, revenue grew 290% in the last quarter. While they didn’t provide any foundational numbers for that percentage growth, it is obviously substantial.

In addition, the startup reports adding hundreds of new users, again not nailing down any specific numbers, and queries on the platform are up 313%. Without specifics, it’s hard to know what that means, but that seems like healthy growth for an early stage startup, especially in this economy.

Mike Vernal, a partner at Sequoia, sees a company helping to get data to work faster than other solutions, which require a lot of handling first. “Rockset, with its innovative new approach to indexing data, has quickly emerged as a true leader for real-time analytics in the cloud. I’m thrilled to partner with the company through its next phase of growth,” Vernal said in a statement.

The company was founded in 2016 by the creators of RocksDB. The startup had previously raised a $3 million seed round when they launched the company and the $18.5 million A round in 2018.


By Ron Miller

Five years after creating Traefik application proxy, open source project hits 2B downloads

Five years ago, Traefik Labs founder and CEO Emile Vauge was working on a project deploying thousands of microservices and he was lacking a cloud native application proxy that could handle this kind of scale. So like any good developer, he created one himself and Traefik was born.

If you go back five years, the notion of cloud native was still in its infancy. Docker has been doing containers for just a couple of years, and Kubernetes would only be released that year. There wasn’t much cloud native tooling around, so Vauge decided to build a cloud native reverse proxy out of pure necessity.

“At that time, five years ago, there was no reverse proxy that was good at managing the complexity of microservices at cloud scale. So that was really the origin of Traefik. And one of the big innovations was its automation and its simplicity,” he said.

As he explained it, a reverse proxy needs to have several features like traffic management, load balancing, observability and security, but much of this had to be done manually with the tools available at the time. As it turns out Vauge had stumbled onto a major pain point.

“Initially I created Traefik for myself. It was a side project but it turned out that there was a huge interest and very quickly a community gathered around the project,” he said. After a few months, he realized he could build a company around this and left his job to start a company called Containous.

Today, he changed the name of that company to Traefik Labs and the open source project he developed has become wildly popular. “Five years later we are at 2 billion downloads. It’s in the top 10 most downloaded projects on Docker. We have 30,000 stars on GitHub. So basically it’s one of the largest open source projects in the world,” he said. In addition, he said that there are over 550 individuals contributing to the project today.

When he formed Containous, he developed an open core-based commercial project designed for enterprise needs around scaling, high availability and more security features. Today, that includes the Traefik Proxy and an open source service mesh called Traefik Mesh.

Among the companies using the open source project today are Conde Nast, eBay Classifieds and Mailchimp.

Vauge certainly was in the right place at the right time five years ago, which he modestly attributes to luck because he was working at one of the few companies at the time who were dealing with microservices at scale. “We had to build a lot of things and Traefik was one of those things. So I was basically lucky because I created Traefik at the right time,” he said.

Not surprisingly a company with that kind of open source traction has attracted the interest of venture capitalists and Vauge has raised $16 million since he launched his company in 2015 including $10 million led by Balderton Capital in January.


By Ron Miller

Snyk bags another $200M at $2.6B valuation 9 months after last raise

When we last reported on Snyk in January, eons ago in COVID time, the company announced $150 million investment on a valuation of over $1 billion. Today, barely nine months later, it announced another $200 million and its valuation has expanded to $2.6 billion.

The company is obviously drawing some serious investor attention and even a pandemic is not diminishing that interest. Addition led today’s round, bringing the total raised to $450 million with $350 million coming this year alone.

Snyk has a unique approach to security, building it into the development process instead of offloading it to a separate security team. If you want to build a secure product, you need to think about it as you’re developing the product and that’s what Snyk’s product set is designed to do — check for security as you’re committing your build to your git repository.

With an open source product at the top of funnel to drive interest in the platform, CEO Peter McKay says the pandemic has only accelerated the appeal of the company. In fact, the startup’s annual recurring revenue (ARR) is growing at a remarkable 275% year over year.

McKay says, even with the pandemic, his company has been accelerating adding 100 employees in the last 12 months to take advantage of the increasing revenue. “When others were kind of scaling back we invested and it worked out well because our business never slowed down. In fact, in a lot of the industries it really picked up,” he said.

That’s because as many other founders have pointed out, COVID is speeding up the rate at which many companies are moving to the cloud, and that’s working Snyk’s favor. “We’ve just capitalized on this accelerated shift to the cloud and modern cloud native applications,” he said.

The company currently has 375 employees with plans to add 100 more in the next year. As it grows, McKay says that he is looking to build a diverse and inclusive culture, something he learned about as he moved through his career at VMware and Veeam.

He says one of the keys at Snyk is putting every employee through unconscious bias training to help limit bias in the hiring process, and the executive team has taken a pledge to make the company’s hiring practices more diverse. Still, he recognizes it takes work to achieve these goals, and it’s always easy for an experienced team to go back to the network instead of digging deeper for a more diverse candidate pool.

“I think we’ve put all the pieces in place to get there, but I think like a lot of companies, there’s still a long way to go,” he said. But he recognizes the sooner you embed diversity into the company culture, the better because it’s hard to go back after the fact and do it.

Addition founder Lee Fixel says he sees a company that’s accelerating rapidly and that’s why he was willing to pour in so big an investment. “Snyk’s impressive growth is a signal that the market is ready to embrace a change from traditional security and empower developers to tackle the new security risk that comes with a software-driven digital world,” he said in a statement.

Snyk was founded in 2015. The founders brought McKay on board for some experienced leadership in 2018 to help lead the company through its rapid growth. Prior to the $350 million in new money this year, the company raised $70 million in 2019.


By Ron Miller

Kubermatic launches open source service hub to enable complex service management

As Kubernetes and cloud native technologies proliferate, developers and IT have found a growing set of technical challenges they need to address, and new concepts and projects have popped up to deal with them. For instance, operators provide a way to package, deploy and manage your cloud native application in an automated way. Kubermatic wants to take that concept a step further, and today the German startup announced KubeCarrier, a new open source, cloud native service management hub.

Kubermatic co-founder Sebastian Scheele says three or four years ago, the cloud native community needed to solve a bunch of technical problems around deploying Kubernetes clusters such as overlay networking, service meshes and authentication. He sees a similar set of problems arising today where developers need more tools to manage the growing complexity of running Kubernetes clusters at scale.

Kubermatic has developed KubeCarrier to help solve one aspect of this. “What we’re currently focusing on is how to provision and manage workloads across multiple clusters, and how IT organizations can have a service hub where they can provide those services to their organizations in a centralized way,” Scheele explained.

Scheele says that KubeCarrier provides a way to manage and implement all of this, giving organizations much greater flexibility beyond purely managing Kubernetes. While he sees organizations with lots of Kubernetes operators, he says that as he sees it, it doesn’t stop there. “We have lots of Kubernetes operators now, but how do we manage them, especially when there are multiple operators, [along with] the services they are provisioning,” he asked.

This could involve provisioning something like Database as a Service inside the organization or for external customers, while combining or provisioning multiple services, which are working on multiple levels and a need a way to communicate with each other.

“That is where Kubecarrier comes in. Now, we can help our customers to build this kind of automation around provisioning, and service capability so that different teams can provide different services inside the organization or to external customers,” he said.

As the company explains it, “KubeCarrier addresses these complexities by harnessing the Kubernetes API and Operators into a central framework allowing enterprises and service providers to deliver cloud native service management from one multi-cloud, multi-cluster hub.”

KubeCarrier is available  on GitHub, and Scheele says the company is hoping to get feedback from the community about how to improve it. In parallel, the company is looking for ways to incorporate this technology into its commercial offerings and that should be available in the next 3-6 months, he said.


By Ron Miller

Ampere announces latest chip with a 128 core processor

In the chip game, more is usually better and to that end, Ampere announced the next chip on its product roadmap today, the Altra Max, a 128 core processor, the company says is designed specifically to handle cloud native, containerized workloads.

What’s more, the company has designed the chip, so that it will fit in the same slot as their 80 core product announced last year (and in production now). That means that engineers can use the same slot when designing for the new chip, which saves engineering time and eases production, says Jeff Wittich, vp of products at the company,

Wittich says that his company is working with manufacturers today to make sure they can build for all of the requirements for the more powerful chip. “The reason we’re talking about it now, versus waiting until Q4 when we’ve got samples going out the door is because it’s socket compatible, so the same platforms that the Altra 80 core go into, this 128 core product can go into,” he said.

He says that containerized workloads, video encoding, large scale out databases and machine learning inference will all benefit from having these additional cores.

While he wouldn’t comment on any additional funding, the company has raised $40 million, according to Crunchbase data, and Wittich says they have enough funding to to into high-volume production later this year on their existing products.

Like everyone, the company has faced challenges keeping a consistent supply chain throughout the pandemic, but when it started to hit in Asia at the beginning of this year, the company set a plan in motion to find backup suppliers for the parts they would need should they run into pandemic-related shortages. He says that it took a lot of work, planning and coordination, but they feel confident at this point in being able to deliver their products in spite of the uncertainty that exists.

“Back in January we actually already went through [our list of suppliers], and we diversified our supply chain and made sure that we had options for everything. So we were able to get in front of that before it ever became a problem,” he said.

“We’ve had normal kinds of hiccups here and there that everyone’s had in the supply chain, where things get stuck in shipping and they end up a little bit late, but we’re right on schedule with where we were.”

The company is already planning ahead for its 2022 release, which is already in development.
“We’ve got a test chip running through five nanometer right now that has the key IP and some of the key features of that product, so that we can start testing those out in silicon pretty soon,” he said.

Finally, the company announced that it’s working with some new partners including Cloudflare, Packet (which was acquired by Equinix in January) Scaleway and Phoenics Electronics, a division of Avnet. These partnerships provide another way for Ampere to expand its market as it continues to develop.

The company was founded in 2017 by former Intel president Renee James.


By Ron Miller

VMware to acquire Kubernetes security startup Octarine and fold it into Carbon Black

VMware announced today that it intends to buy early-stage Kubernetes security startup, Octarine and fold it into Carbon Black, a security company it bought last year for $2.1 billion. The company did not reveal the price of today’s acquisition.

According to a blog post announcing the deal from Patrick Morley, general manager and senior vice president at VMware’s Security Business Unit, Octarine should fit in with what Carbon Black calls its “intrinsic security strategy” — that is, protecting content and applications wherever they live. In the case of Octarine, it’s cloud native containers in Kubernetes environments.

“Acquiring Octarine enables us to advance intrinsic security for containers (and Kubernetes environments), by embedding the Octarine technology into the VMware Carbon Black Cloud, and via deep hooks and integrations with the VMware Tanzu platform,” Morley wrote in a blog post.

This also fits in with VMware’s Kubernetes strategy, having purchased Heptio, an early Kuberentes company started by Craig McLuckie and Joe Beda, two folks who helped develop Kubernets while at Google before starting their own company,

We covered Octarine last year when it released a couple of open source tools to help companies define the Kubernetes security parameters. As we quoted head of product Julien Sobrier at the time:

“Kubernetes gives a lot of flexibility and a lot of power to developers. There are over 30 security settings, and understanding how they interact with each other, which settings make security worse, which make it better, and the impact of each selection is not something that’s easy to measure or explain.”

As for the startup, it now gets folded into VMware’s security business. While the CEO tried to put a happy face on the acquisition in a blog post, it seems its days as an independent entity are over. “VMware’s commitment to cloud native computing and intrinsic security, which have been demonstrated by its product announcements and by recent acquisitions, makes it an ideal home for Octarine,” the company CEO Shemer Schwarz wrote in the post.

Octarine was founded in 2017 and has raised $9 million, according to Pitchbook data.


By Ron Miller

New Red Hat CEO Paul Cormier faces a slew of challenges in the midst of pandemic

When former Red Hat CEO Jim Whitehurst moved on to become president at parent company IBM earlier this month, the logical person to take his place was long-time executive Paul Cormier. As he takes over in the most turbulent of times, he still sees a company that is in the right place to help customers modernize their approach to development as they move more workloads to the cloud.

We spoke to Cormier yesterday via video conference, and he appeared to be a man comfortable in his new position. We talked about the changes his new role has brought him personally, how he his helping his company navigate the current situation and how his relationship with IBM works.

One thing he stressed was that even as part of the IBM family, his company is running completely independently, and that includes no special treatment for IBM. It’s just another customer, an approach he says is absolutely essential.

Taking over

He says that he felt fully prepared for the role having run the gamut of jobs over the years from engineering to business units to CTO. The big difference for him as CEO is that in all of his previous roles he could be the technical guy speaking a certain engineering language with his colleagues. As CEO, things have changed, especially during a time where communication has become paramount.

This has been an even bigger challenge in the midst of the pandemic. Instead of traveling to offices for meetings, chatting over informal coffees and having more serendipitous encounters, he has had to be much more deliberate in his communication to make sure his employees feel in the loop, even when they are out of the office.

“I have a company-wide meeting every two weeks. You can’t over communicate right now because it just doesn’t happen [naturally in the course of work]. I’ve got to consciously do it now, and that’s probably the biggest thing,” he said.

Go-to-market challenges

While Cormier sees little change on the engineering side, where many folks have been working remotely for some time, the go-to-market team could face more serious hurdles as they try to engage with customers.

“The go-to-market and sales side is going to be the challenge because we don’t know how our customers will come out of this. Everybody’s going to have different strategies on how they’re coming out of this, and that will drive a lot,” he said.

This week was Cormier’s first Red Hat Summit as CEO, one that like so many conferences had to pivot from a live event to virtual fairly quickly. Customers have been nervous, and this was the first chance to really reconnect with them since things have shut down. He says that he was pleasantly surprised how well it worked, even allowing more people to attend than might pay to travel to a live event.

Conferences are a place for the sales team to really shine and lay the groundwork for future sales. Not being there in person had to be a big change for them, but he says this week went better than he expected, and they learned a ton about running virtual events that they will carry forth into the future.

“We all miss the face-to-face for sure, but I think we’ve learned new things, and I think our team did an amazing job in pulling this off,” he said.

No favorites for IBM

As he navigates his role inside the IBM family, he says that new CEO Arvind Krishna has effectively become his board of directors, now that the company has gone private. When IBM paid $34 billion for Red Hat in 2018, it was looking for a way to modernize the company and to become a real player in the hybrid cloud market.

Hybrid involves finding a way to manage infrastructure that lives on premises as well as in the cloud without having to use two sets of tools. While IBM is all in on Red Hat, Cormier says it’s absolutely essential to their relationship with customers that they don’t show them any favoritism, and that includes no special pricing deals.

Not only that, he says that he has the freedom to run the company the way he sees fit. “IBM doesn’t set our product strategy. They don’t set our priorities. They know that over time our open source products could eat into what they are doing with their proprietary products, and they are okay with that. They understand that,” he said.

He says that doing it any other way could begin to erode the reason that IBM spent all that money in the first place, and it’s up to Cormier to make sure that they continue to do what they were doing and keep customers comfortable with that. So far, the company seems to be heading in the same upward trajectory it was on as a public company.

In the most recent earnings report in January, IBM reported Red Hat income of $1.07 billion, up from $863 million the previous year when it was still a private company. That’s a run rate of over $4 billion, putting it well within reach of the $5 billion goal Whitehurst set a few years ago.

Now it’s Cormier’s job to get them there and beyond. The pandemic certainly makes it more challenging, but he’s ready to lead the company to that next level, all while walking the line as the CEO of a company that lives under the IBM family umbrella and all that entails.


By Ron Miller

DataStax launches Kubernetes operator for open source Cassandra database

Today, DataStax, the commercial company behind the open source Apache Cassandra project, announced an open source Kubernetes operator developed by the company to run a cloud native version of the database.

When Sam Ramji, chief strategy officer at DataStax, came over from Google last year, the first thing he did was take the pulse of customers, partners and community members around Kubernetes and Cassandra, and they found there was surprisingly limited support.

While some companies had built Kubernetes support themselves, DataStax lacked one to call its own. Given that Kubernetes was born inside Google, and the company has widely embraced the notion of containerization in general, Ramji wanted there to be an operator specifically designed by the company to give customers a general starting point with Kubernetes.

“What’s special about the Kube operator that we’re offering to the community as an opinion — one of many — is that we have done the work to generalize the operator to Cassandra wherever it might be implemented,” Ramji told TechCrunch.

Ramji says that most companies that have created their own Kubernetes operators tend to specialize for their own particular requirements, which is fine, but as the company built on top of Cassandra, they wanted to come up with a general version that could appeal broader range of use cases.

In Kubernetes, the operator is how the DevOps team packages, manages and deploys an application, giving it the instructions it needs to run correctly. DataStax has created this operator specifically to run Cassandra with a broad set of assumptions.

Cassandra is a powerful database because it stays running when many others fall down. As such it is used by companies as varied as Apple, eBay and Netflix to run their key services. This new Kubernetes implementation will enable anyone who wishes to run Cassandra as a containerized application, helping push it into a modern development realm.

The company also announced a free help service for engineers trying to cope with increased usage on their databases due to COVID-19. They are calling the program, “Keep calm and Cassandra on.” The engineers charged with keeping systems like Cassandra running are called Site Reliability Engineers or SREs.

“The new service is completely free SRE-to-SRE support calls. So our SREs are taking calls from Apache Cassandra users anywhere in the world, no matter what version they’re using if they’re trying to figure out how to keep it up to stand up to the increased demand,” Ramji explained.

DataStax was founded in 2010 and has raised over $190 million, according to PitchBook data.


By Ron Miller

Startups are helping cloud infrastructure customers avoid vendor lock-in

For much of the history of enterprise technology, companies tended to buy from a single vendor because it made managing the entire affair much easier while giving them a “single throat to choke” when something went wrong. On the flip side, it also put customers at the mercy of said vendor — and it wasn’t always pretty.

As we move deeper into the cloud model, many IT pros are looking for more flexibility than they had in the past, avoiding the vendor lock-in from the previous generation of enterprise tech, and what being beholden to a single vendor could mean for the bottom line and their own flexibility.

This is something that comes up frequently in discussions about moving workloads from one cloud to another, and is sometimes referred to as a multi-cloud approach. Customers are loath to leave their workloads in the hands of one vendor again and repeat the mistakes of the past. They are looking to have the same flexibility on the infrastructure side that they are getting in the SaaS world, where companies tend to purchase best-of-breed from multiple vendors.

That means, they want the freedom to move workloads between clouds, but that’s not always as easy a prospect as it might seem, and it’s an area where startups could help lead the way.

What’s the problem?

What’s stopping customers from just moving data and applications between clouds? It turns out that there is a complex interlinking of public cloud APIs that help the applications and data work in tandem. If you want to pull out of one public cloud, it’s not a simple matter of just migrating to the next one.


By Ron Miller

HPE acquires cloud native security startup Scytale

HPE announced today that it has acquired Scytale, a cloud native security startup that is built on the open source Secure Production Identity Framework for Everyone (SPIFFE) protocol. The companies did not share the acquisition price.

Specifically, Scytale looks at application-to-application identity and access management, something that is increasingly important as more transactions take place between applications without any human intervention. It’s imperative that the application knows it’s OK to share information with the other application.

This is an area that HPE wants to expand into, Dave Husak, HPE fellow and GM of cloudless initiative wrote in a blog post announcing the acquisition. “As HPE progresses into this next chapter, delivering on our differentiated, edge to cloud platform as-a-service strategy, security will continue to play a fundamental role. We recognize that every organization that operates in a hybrid, multi-cloud environment requires 100% secure, zero trust systems, that can dynamically identify and authenticate data and applications in real-time,” Husak wrote.

He was also careful to stress that HPE would continue to be good stewards of the SPIFFE and SPIRE (the SPIFFE Runtime Environment) projects, both of which are under the auspices of the Cloud Native Computing Foundation.

Scytale co-founder Sunil James, writing in a blog post about the deal, indicated that this was important to the founders that HPE respect the startup’s open source roots. “Scytale’s DNA is security, distributed systems, and open-source. Under HPE, Scytale will continue to help steward SPIFFE. Our ever-growing and vocal community will lead us. We’ll toil to maintain this transparent and vendor-neutral project, which will be fundamental in HPE’s plans to deliver a dynamic, open, and secure edge-to-cloud platform,” he wrote.

Scytale was founded in 2017 and has raised $8 million to-date, according to PitchBook data. The bulk of that was in a $5 million Series A last March led by Bessemer.


By Ron Miller

VMware completes $2.7 billion Pivotal acquisition

VMware is closing the year with a significant new component in its arsenal. Today it announced it has closed the $2.7 billion Pivotal acquisition it originally announced in August.

The acquisition gives VMware another component in its march to transform from a pure virtual machine company into a cloud native vendor that can manage infrastructure wherever it lives. It fits alongside other recent deals like buying Heptio and Bitnami, two other deals that closed this year.

They hope this all fits neatly into VMware Tanzu, which is designed to bring Kubernetes containers and VMware virtual machines together in a single management platform.

“VMware Tanzu is built upon our recognized infrastructure products and further expanded with the technologies that Pivotal, Heptio, Bitnami and many other VMware teams bring to this new portfolio of products and services,” Ray O’Farrell, executive vice president and general manager of the Modern Application Platforms Business Unit at VMware, wrote in a blog post announcing the deal had closed.

Craig McLuckie, who came over in the Heptio deal, and is now VP of R&D at VMware, told TechCrunch in November at KubeCon, that while the deal hadn’t closed at that point, he saw a future where Pivotal could help at a professional services level, as well.

“In the future when Pivotal is a part of this story, they won’t be just delivering technology, but also deep expertise to support application transformation initiatives,” he said.

Up until the closing, the company had been publicly traded on the New York Stock Exchange, but as of today Pivotal becomes a wholly-owned subsidiary of VMware. It’s important to note that this transaction didn’t happen in a vacuum where two random companies came together.

In fact, VMware and Pivotal were part of the consortium of companies that Dell purchased when it acquired EMC in 2015 for $67 billion. While both were part of EMC and then Dell, each one operated separately and independently. At the time of the sale to Dell, Pivotal was considered a key piece, one that could stand strongly on its own.

Pivotal and VMware had another strong connection. Pivotal was originally created by a combination of EMC, VMware and GE (which owned a 10% stake for a time) to give these large organizations a separate company to undertake transformation initiatives.

It raised a hefty $1.7 billion before going public in 2018. A big chunk of that came in one heady day in 2016 when it announced $650 million in funding led by Ford’s $180 million investment.

The future looked bright at that point, but life as a public company was rough and after a catastrophic June earnings report, things began to fall apart. The stock dropped 42 percent in one day. As I wrote in an analysis of the deal:

The stock price plunged from a high of $21.44 on May 30th to a low of $8.30 on August 14th. The company’s market cap plunged in that same time period falling from $5.828 billion on May 30th to $2.257 billion on August 14th. That’s when VMware admitted it was thinking about buying the struggling company.

VMware came to the rescue and offered $15.00 a share, a substantial premium above that August low point. As of today, it’s part of VMware.


By Ron Miller

Making sense of a multi-cloud, hybrid world at KubeCon

More than 12,000 attendees gathered this week in San Diego to discuss all things containers, Kubernetes and cloud-native at KubeCon.

Kubernetes, the container orchestration tool, turned five this year, and the technology appears to be reaching a maturity phase where it accelerates beyond early adopters to reach a more mainstream group of larger business users.

That’s not to say that there isn’t plenty of work to be done, or that most enterprise companies have completely bought in, but it’s clearly reached a point where containerization is on the table. If you think about it, the whole cloud-native ethos makes sense for the current state of computing and how large companies tend to operate.

If this week’s conference showed us anything, it’s an acknowledgment that it’s a multi-cloud, hybrid world. That means most companies are working with multiple public cloud vendors, while managing a hybrid environment that includes those vendors — as well as existing legacy tools that are probably still on-premises — and they want a single way to manage all of this.

The promise of Kubernetes and cloud-native technologies, in general, is that it gives these companies a way to thread this particular needle, or at least that’s the theory.

Kubernetes to the rescue

Photo: Ron Miller/TechCrunch

If you were to look at the Kubernetes hype cycle, we are probably right about at the peak where many think Kubernetes can solve every computing problem they might have. That’s probably asking too much, but cloud-native approaches have a lot of promise.

Craig McLuckie, VP of R&D for cloud-native apps at VMware, was one of the original developers of Kubernetes at Google in 2014. VMware thought enough of the importance of cloud-native technologies that it bought his former company, Heptio, for $550 million last year.

As we head into this phase of pushing Kubernetes and related tech into larger companies, McLuckie acknowledges it creates a set of new challenges. “We are at this crossing the chasm moment where you look at the way the world is — and you look at the opportunity of what the world might become — and a big part of what motivated me to join VMware is that it’s successfully proven its ability to help enterprise organizations navigate their way through these disruptive changes,” McLuckie told TechCrunch.

He says that Kubernetes does actually solve this fundamental management problem companies face in this multi-cloud, hybrid world. “At the end of the day, Kubernetes is an abstraction. It’s just a way of organizing your infrastructure and making it accessible to the people that need to consume it.

“And I think it’s a fundamentally better abstraction than we have access to today. It has some very nice properties. It is pretty consistent in every environment that you might want to operate, so it really makes your on-prem software feel like it’s operating in the public cloud,” he explained.

Simplifying a complex world

One of the reasons Kubernetes and cloud-native technologies are gaining in popularity is because the technology allows companies to think about hardware differently. There is a big difference between virtual machines and containers, says Joe Fernandes, VP of product for Red Hat cloud platform.

“Sometimes people conflate containers as another form of virtualization, but with virtualization, you’re virtualizing hardware, and the virtual machines that you’re creating are like an actual machine with its own operating system. With containers, you’re virtualizing the process,” he said.

He said that this means it’s not coupled with the hardware. The only thing it needs to worry about is making sure it can run Linux, and Linux runs everywhere, which explains how containers make it easier to manage across different types of infrastructure. “It’s more efficient, more affordable, and ultimately, cloud-native allows folks to drive more automation,” he said.

Bringing it into the enterprise

Photo: Ron Miller/TechCrunch

It’s one thing to convince early adopters to change the way they work, but as this technology enters the mainstream. Gabe Monroy, partner program manager at Microsoft says to carry this technology to the next level, we have to change the way we talk about it.


By Ron Miller

Chronosphere launches with $11M Series A to build scalable, cloud-native monitoring tool

Chronoshere, a startup from two ex-Uber engineers, who helped create the open source M3 monitoring project to handle Uber-level scale, officially launched today with the goal of building a commercial company on top of the open source project.

It also announced an $11 million investment led by Greylock with participation from venture capitalist, Lee Fixel.

While the founders, CEO Martin Mao and CTO Rob Skillington, were working at Uber they recognized a gap in the monitoring industry, particularly around cloud native technologies like containers and micro services. There weren’t any tools available on the market that could handle Uber’s scaling requirements. So like any good engineers, they went out and built their own.

“We looked around at the market at the time and couldn’t find anything in open source or commercially available that could really scale to our needs. So we ended up building and open sourcing our solution, which is M3. Over the last three to four years we’ve scaled M3 to one of the largest production monitoring systems in the world today,” Mao explained.

The essential difference between M3 and other open source, cloud native monitoring solutions like Prometheus is that ability to scale, he says.

One of the main reasons they left to start a company, with the blessing of Uber, was that the community began asking for features that didn’t really make sense for Uber. By launching Chronosphere, Mao and Skillington would be taking on the management of the project moving forward (although sharing governance for the time being with Uber), while building those enterprise features the community has been clamoring for.

The new company’s first product will be a cloud version of M3 to help reduce some of the complexity associated with managing an M3 project. “M3 itself is a fairly complex piece of technology to run. It is solving a fairly complex problem at large scale, and running it actually requires a decent amount of investment to run at large scale, so the first thing we’re doing is taking care of that management,” Mao said.

Jerry Chen, who led the investment at Greylock, saw a company solving a big problem. “They were providing such a high resolution view of what’s going on in your cloud infrastructure and doing that at scale at a cost that actually makes sense. They solved that problem at Uber, and I saw them, and I was like wow, the rest of the market needs what guys built and I wrote the Series A check. It was as simple as that,” Chen told TechCrunch.

The cloud product is currently in private Beta, and they expect to open to public Beta early next year.


By Ron Miller