Docker nabs $23M Series B as as new developer focus takes shape

It was easy to wonder what would become of Docker after it sold its enterprise business in 2019, but it regrouped last year as a cloud native container company focused on developers, and the new approach appears to be bearing fruit. Today, the company announced a $23 million Series B investment.

Tribe Capital led the round with participation from existing investors Benchmark and Insight Partners. Docker has now raised a total of $58 million including the $35 million investment it landed the same day it announced the deal with Mirantis .

To be sure, the company had a tempestuous 2019 when they changed CEOs twice, sold the enterprise division and looked to reestablish itself with a new strategy. While the pandemic made 2020 a trying time for everyone, Docker CEO Scott Johnston says that in spite of that, the strategy has begun to take shape.

“The results we think speak volumes. Not only was the strategy strong, but the execution of that strategy was strong as well,” Johnston told me. He indicated that the company added 1.7 million new developer registrations for the free version of the product for a total of more 7.3 million registered users on the community edition.

As with any open source project, the goal is to popularize the community project and turn a small percentage of those users into paying customers, but Docker’s problem prior to 2019 had been finding ways to do that. While he didn’t share specific numbers, Johnston indicated that annual recurring revenue (ARR) grew 170% last year, suggesting that they are beginning to convert more successfully.

Johnston says that’s because they have found a way to turn a certain class of developer in spite of a free version being available. “Yes, there’s a lot of upstream open source technologies, and there are users that want to hammer together their own solutions. But we are also seeing these eight-to-ten person ‘two pizza teams’ who want to focus on building applications, and so they’re willing to pay for a service,” he said.

That open source model tends to get the attention of investors because it comes with that built-in action at the top of the sales funnel. Tribe’s Arjun Sethi, whose firm led the investment, says his company actually was a Docker customer before investing in the company and sees a lot more growth potential.

“Tribe focuses on identifying N-of-1 companies — top-decile private tech firms that are exhibiting inflection points in their growth, with the potential to scale towards outsized outcomes with long-term venture capital. Docker fits squarely into this investment thesis[…],” Sethi said in a statement.

Johnston says as they look ahead to post-pandemic, he’s learned a lot since his team move out of the office last year. After surveying employees, they were surprised to learn that most have been happier working at home, having more time to spend with family, while taking away a grueling commute. As a result, he sees going virtual first, even after it’s safe to reopen offices.

That said, he is planning to offer a way to get teams together for in-person gatherings and a full company get-together once a year.

“We’ll be virtual first, but then with the savings of the real estate that we’re no longer paying for, we’re going to bring people together and make sure we have that social glue,” he said.


By Ron Miller

Why F5 spent $2.2B on 3 companies to focus on cloud native applications

It’s essential for older companies to recognize changes in the marketplace or face the brutal reality of being left in the dust. F5 is an old-school company that launched back in the 90s, yet has been able to transform a number of times in its history to avoid major disruption. Over the last two years, the company has continued that process of redefining itself, this time using a trio of acquisitions — NGINX, Shape Security and Volterra — totaling $2.2 billion to push in a new direction.

While F5 has been associated with applications management for some time, it recognized that the way companies developed and managed applications was changing in a big way with the shift to Kubernetes, microservices and containerization. At the same time, applications have been increasingly moving to the edge, closer to the user. The company understood that it needed to up its game in these areas if it was going to keep up with customers.

Taken separately, it would be easy to miss that there was a game plan behind the three acquisitions, but together they show a company with a clear opinion of where they want to go next. We spoke to F5 president and CEO François Locoh-Donou to learn why he bought these companies and to figure out the method in his company’s acquisition spree madness.

Looking back, looking forward

F5, which was founded in 1996, has found itself at a number of crossroads in its long history, times where it needed to reassess its position in the market. A few years ago it found itself at one such juncture. The company had successfully navigated the shift from physical appliance to virtual, and from data center to cloud. But it also saw the shift to cloud native on the horizon and it knew it had to be there to survive and thrive long term.

“We moved from just keeping applications performing to actually keeping them performing and secure. Over the years, we have become an application delivery and security company. And that’s really how F5 grew over the last 15 years,” said Locoh-Donou.

Today the company has over 18,000 customers centered in enterprise verticals like financial services, healthcare, government, technology and telecom. He says that the focus of the company has always been on applications and how to deliver and secure them, but as they looked ahead, they wanted to be able to do that in a modern context, and that’s where the acquisitions came into play.

As F5 saw it, applications were becoming central to their customers’ success and their IT departments were expending too many resources connecting applications to the cloud and keeping them secure. So part of the goal for these three acquisitions was to bring a level of automation to this whole process of managing modern applications.

“Our view is you fast forward five or 10 years, we are going to move to a world where applications will become adaptive, which essentially means that we are going to bring automation to the security and delivery and performance of applications, so that a lot of that stuff gets done in a more native and automated way,” Locoh-Donou said.

As part of this shift, the company saw customers increasingly using microservices architecture in their applications. This means instead of delivering a large monolithic application, developers were delivering them in smaller pieces inside containers, making it easier to manage, deploy and update.

At the same time, it saw companies needing a new way to secure these applications as they shifted from data center to cloud to the edge. And finally, that shift to the edge would require a new way to manage applications.


By Ron Miller

Container security acquisitions increase as companies accelerate shift to cloud

Last week, another container security startup came off the board when Rapid7 bought Alcide for $50 million. The purchase is part of a broader trend in which larger companies are buying up cloud-native security startups at a rapid clip. But why is there so much M&A action in this space now?

Palo Alto Networks was first to the punch, grabbing Twistlock for $410 million in May 2019. VMware struck a year later, snaring Octarine. Cisco followed with PortShift in October and Red Hat snagged StackRox last month before the Rapid7 response last week.

This is partly because many companies chose to become cloud-native more quickly during the pandemic. This has created a sharper focus on security, but it would be a mistake to attribute the acquisition wave strictly to COVID-19, as companies were shifting in this direction pre-pandemic.

It’s also important to note that security startups that cover a niche like container security often reach market saturation faster than companies with broader coverage because customers often want to consolidate on a single platform, rather than dealing with a fragmented set of vendors and figuring out how to make them all work together.

Containers provide a way to deliver software by breaking down a large application into discrete pieces known as microservices. These are packaged and delivered in containers. Kubernetes provides the orchestration layer, determining when to deliver the container and when to shut it down.

This level of automation presents a security challenge, making sure the containers are configured correctly and not vulnerable to hackers. With myriad switches this isn’t easy, and it’s made even more challenging by the ephemeral nature of the containers themselves.

Yoav Leitersdorf, managing partner at YL Ventures, an Israeli investment firm specializing in security startups, says these challenges are driving interest in container startups from large companies. “The acquisitions we are seeing now are filling gaps in the portfolio of security capabilities offered by the larger companies,” he said.


By Ron Miller

Rapid7 acquires Kubernetes security startup Alcide for $50M

Rapid7, the Boston-based security operations company, has been making moves into the cloud recently and this morning it announced that it has acquired Kubernetes security startup Alcide for $50 million.

As the world shifts to cloud native using Kubernetes to manage containerized workloads, it’s tricky ensuring that the containers are configured correctly to keep them safe. What’s more, Kubernetes is designed to automate the management of containers, taking humans out of the loop and making it even more imperative that the security protocols are applied in an automated fashion as well.

Brian Johnson, SVP of Cloud Security at Rapid7 says that this requires a specialized kind of security product and that’s why his company is buying Alcide. “Companies operating in the cloud need to be able to identify and respond to risk in real time, and looking at cloud infrastructure or containers independently simply doesn’t provide enough context to truly understand where you are vulnerable,” he explained.

“With the addition of Alcide, we can help organizations obtain comprehensive, unified visibility across their entire cloud infrastructure and cloud native applications so that they can continue to rapidly innovate while still remaining secure,” he added.

Today’s purchase builds on the company’s acquisition of DivvyCloud last April for $145 million. That’s almost $200 million for the two companies that allow the company to help protect cloud workloads in a fairy broad way.

It’s also part of an industry trend with a number of Kubernetes security startups coming off the board in the last year as bigger companies look to enhance their container security chops by buying the talent and technology. This includes VMWare nabbing Octarine last May, Cisco getting PortShift in October and RedHat buying StackRox last month.

Alcide was founded in 2016 in Tel Aviv, part of the active Israeli security startup scene. It raised about $12 million along the way, according to Crunchbase data.


By Ron Miller

Lacework lands $525M investment as revenue grows 300%

As the pandemic took hold in 2020, companies accelerated their move to cloud services. Lacework, the cloud security startup, was in the right place at the right time as customers looked for ways to secure their cloud native workloads. The company reported that revenue grew 300% year over year for the second straight year.

It was rewarded for that kind of performance with a $525 million Series D today. It did not share an exact valuation, only saying that it exceeded $1 billion, which you would expect on such a hefty investment. Sutter Hill and Altimeter Capital led the round with help from D1, Coatue, Dragoneer Investment Group, Liberty Global Ventures, Snowflake Ventures and Tiger Capital. The company has now raised close to $600 million.

Lacework CEO Dan Hubbard says one of the reasons for such widespread interest from investors is the breadth of the company’s security solution. “We enable companies to build securely in the cloud, and we span across multiple different categories of markets, which enable the customers to do that,” he said.

He says that encompasses a range of services including configuration and compliance, security for infrastructure as code, build time and runtime vulnerability scanning and runtime security for cloud native environments like Kubernetes and containers.

As the company has grown revenue, it has been adding employees quickly. It started the year with 92 employees and closed with over 200 with plans to double that by the end of this year. As he looks at hiring, Hubbard is aware of the need to build a diverse organization, but acknowledges that tech in general hasn’t done a great job so far.

He says they are working with the various teams inside the company to try and change that, while also working to support outside organizations that are helping educate under represented groups to get the skills they need and then building from that. “If you can help solve the problem at an earlier stage, then I think you’ve got a bigger opportunity [to have a base of people to hire] there,” he said.

The company was originally nurtured inside Sutter Hill and is built on top of the Snowflake platform. It reports that $20 million of today’s total comes from Snowflake’s new venture arm, which is putting some money into an early partner.

“We were an alpha Snowflake customer, and they were an alpha customer of ours. Our platform is built on top of the Snowflake data cloud and their new venture arm has also joined the round with an investment to further strengthen the partnership there,” Hubbard said.

As for Sutter Hill, investor Mike Speiser sees Lacework as one of his firm’s critical investments. “[Much] like Snowflake at a similar point in its evolution, Lacework is growing revenue at over 300% per year making Lacework one of Sutter Hill Ventures’ most important and promising portfolio companies,” he said in a statement.


By Ron Miller

Chronosphere nabs $43M Series B to expand cloud native monitoring tool

Chronosphere, the scalable cloud native monitoring tool launched in 2019 by two former Uber engineers, announced a $43.4 million Series B today. The company also announced that their service was generally available starting today.

Greylock, Lux Capital and venture capitalist Lee Fixel, all of whom participated in the startup’s $11 million Series A in 2019, led the round with participation from new investor General Atlantic. The company has raised $54.4 million.

The two founders, CEO Martin Mao and CTO Rob Skillington, created the open source M3 monitoring project while they were working at Uber, and left in 2019 to launch Chronosphere, a startup based on that project. As Mao told me at the time of the A round, the company wanted to simplify the management of running the open source 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.

He said that the company spent most of last year iterating the product and working with beta customers, adding that they certainly benefited from building the commercial service on top of the open source project.

“I think we’re lucky that we have the foundation already from the open source project, but we really wanted to focus a lot on building a product on top of that technology and really have this product be differentiated, so that was most of the focus of 2020 for us,” he said.

Mao points out that he and Skillington weren’t looking for this new round of funding as they still had money left from the A round, but the company’s previous investors approached them and they decided to strike to add additional money to the balance sheet, which would help grow the company, attract employees and help reassure customers they had plenty of capital to continue building the product and the company.

As the company has developed over the last year, it has been adding employees at a rapid clip, growing from 13 at the time of the A round in 2019 to 50 today with plans to double that by the end of next year. Mao says the founders have been thinking about how to build a diverse company from its early days.

“So […] beginning last year we were making sure we were hiring the right leaders, and the right recruiting team who also care about diversity, then following that we made company-wide goals and targets for both gender and ethnic diversity, and then [we have been] holding ourselves accountable on these particular goals and tracking against them,” Mao said.

The company has been spread out from the beginning, even before COVID, with offices in Seattle, New York and Lithuania, and that has helped in terms of having a broader base to recruit from. Mao wants to remain mostly remote whenever it’s possible to return to the office, but maintain hubs on each coast where employees can meet and see each other in person.

With the product generally available today, the company will look to expand its customer base, and with the open source project to drive interest, they have a proven way to attract new customers to the commercial product.


By Ron Miller

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