IBM confirms layoffs are happening, but won’t provide details

IBM confirmed reports from over night that it is conducting layoffs, but wouldn’t provide details related to location, departments or number of employees involved. The company framed it in terms of replacing people with more needed skills as it tries to regroup under new CEO Arvind Krishna.

IBM’s work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business,” an IBM spokesperson told TechCrunch.

Patrick Moorhead, principal analyst at Moor Insights & Strategy says he’s hearing the layoffs are hitting across the business. “I’m hearing it’s a balancing act between business units. IBM is moving as many resources as it can to the cloud. Essentially, you lay off some of the people without the skills you need and who can’t be re-educated and you bring in people with certain skill sets. So not a net reduction in headcount,” Moorhead said.

It’s worth noting that IBM used a similar argument back in 2015 when it reportedly had layoffs. While there is no official number, Bloomberg is reporting that today’s number is in the thousands.

Holger Mueller, an analyst at Constellation Research, says that IBM is in a tough spot. “The bets of the past have not paid off. IBM Cloud as IaaS is gone, Watson did not deliver and Blockchain is too slow to keep thousands of consultants occupied,” he said.

Mueller adds that the company could also be feeling the impact of having workers at home instead of in the field. “Enterprises do not know and have not learnt how to do large software projects remotely. […] And for now enterprises are slowing down on projects as they are busy with reopening plans,” he said.

The news comes against the backdrop of companies large and small laying off large numbers of employees as the pandemic takes its toll on the workforce. IBM was probably due for a workforce reduction, regardless of the current macro situation as Krishna tries to right the financial ship.

The company has struggled in recent years, and with the acquisition of Red Hat for $34 billion in 2018, it is hoping to find its way as a more open hybrid cloud option. It apparently wants to focus on skills that can help them get there.

The company indicated that it would continue to subsidize medical expenses for laid off employees through June 2021, so there is that.


By Ron Miller

IBM and Red Hat expand their telco, edge and AI enterprise offerings

At its Think Digital conference, IBM and Red Hat today announced a number of new services that all center around 5G edge and AI. The fact that the company is focusing on these two areas doesn’t come as a surprise, given that both edge and AI are two of the fastest-growing businesses in enterprise computing. Virtually every telecom company is now looking at how to best capitalize on the upcoming 5G rollouts, and most forward-looking enterprises are trying to figure out how to best plan around this for their own needs.

As IBM’s recently minted president Jim Whitehurst told me ahead of today’s announcement, he believes that IBM (in combination with Red Hat) is able to offer enterprises a very differentiated service because, unlike the large hyper clouds, IBM isn’t interested in locking these companies into a homogeneous cloud.

“Where IBM is competitively differentiated, is around how we think about helping clients on a journey to what we call hybrid cloud,” said Whitehurst, who hasn’t done a lot of media interviews since he took the new role, which still includes managing Red Hat. “Honestly, everybody has hybrid clouds. I wish we had a more differentiated term. One of the things that’s different is how we’re talking about how you think about an application portfolio that, by necessity, you’re going to have in multiple ways. If you’re a large enterprise, you probably have a mainframe running a set of transactional workloads that probably are going to stay there for a long time because there’s not a great alternative. And there’s going to be a set of applications you’re going to want to run in a distributed environment that need to access that data — all the way out to you running a factory floor and you want to make sure that the paint sprayer doesn’t have any defects while it’s painting a door.”

BARCELONA, CATALONIA, SPAIN – 2019/02/25: The IBM logo is seen during MWC 2019. (Photo by Paco Freire/SOPA Images/LightRocket via Getty Images)

He argues that IBM, at its core, is all about helping enterprises think about how to best run their workloads software, hardware and services perspective. “Public clouds are phenomenal, but they are exposing a set of services in a homogeneous way to enterprises,” he noted, while he argues that IBM is trying to weave all of these different pieces together.

Later in our discussion, he argued that the large public clouds essentially force enterprises to fit their workloads to those clouds’ service. “The public clouds do extraordinary things and they’re great partners of ours, but their primary business is creating these homogeneous services, at massive volumes, and saying ‘if your workloads fit into this, we can run it better, faster, cheaper etc.’ And they have obviously expanded out. They’ve added services. They are not saying we can put a box on-premise, but you’re still fitting into their model.”

On the news side, IBM is launching new services to automate business planning, budgeting and forecasting, for example, as well as new AI-driven tools for building and running automation apps that can handle routine tasks either autonomously or with the help of a human counterpart. The company is also launching new tools for call-center automation.

The most important AI announcement is surely Watson AIOps, though, which is meant to help enterprises detect, diagnose and respond to IT anomalies in order to reduce the effects of incidents and outages for a company.

On the telco side, IBM is launching new tools like the Edge Application Manager, for example, to make it easier to enable AI, analytics and IoT workloads on the edge, powered by IBM’s open-source Open Horizon edge computing project. The company is also launching a new Telco Network Cloud manager built on top of Red Hat OpenShift and the ability to also leverage the Red Hat OpenStack Platform (which remains to be an important platform for telcos and represents a growing business for IBM/Red Hat). In addition, IBM is launching a new dedicated IBM Services team for edge computing and telco cloud to help these customers build out their 5G and edge-enabled solutions.

Telcos are also betting big on a lot of different open-source technologies that often form the core of their 5G and edge deployments. Red Hat was already a major player in this space, but the acquisition has only accelerated this, Whitehurst argued. “Since the acquisition […] telcos have a lot more confidence in IBM’s capabilities to serve them long term and be able to serve them in mission-critical context. But importantly, IBM also has the capability to actually make it real now.”

A lot of the new telco edge and hybrid cloud deployments, he also noted, are built on Red Hat technologies but built by IBM, and neither IBM nor Red Hat could have really brought these to fruition in the same way. Red Hat never had the size, breadth and skills to pull off some of these projects, Whitehurst argued.

Whitehurst also argued that part of the Red Hat DNA that he’s bringing to the table now is helping IBM to think more in terms of ecosystems. “The DNA that I think matters a lot that Red Hat brings to the table with IBM — and I think IBM is adopting and we’re running with it — is the importance of ecosystems,” he said. “All of Red Hat’s software is open source. And so really, what you’re bringing to the table is ecosystems.”

It’s maybe no surprise then that the telco initiatives are backed by partners like Cisco, Dell Technologies, Juniper, Intel, Nvidia, Samsung, Packet, Equinix, Hazelcast, Sysdig, Turbonomics, Portworx, Humio, Indra Minsait, EuroTech, Arrow, ADLINK, Acromove, Geniatech, SmartCone, CloudHedge, Altiostar, Metaswitch, F5 Networks and ADVA.

In many ways, Red Hat pioneered the open-source business model and Whitehurst argued that having Red Hat as part of the IBM family means it’s now easier for the company to make the decision to invest even more in open source. “As we accelerate into this hybrid cloud world, we’re going to do our best to leverage open-source technologies to make them real,” he added.


By Frederic Lardinois

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

Incoming IBM CEO Arvind Krishna faces monumental challenges on multiple fronts

Arvind Krishna is not the only CEO to step into a new job this week, but he is the only one charged with helping turn around one of the world’s most iconic companies. Adding to the degree of difficulty, he took the role in the midst of a global pandemic and economic crisis. No pressure or anything.

IBM has struggled in recent years to find its identity as technology has evolved rapidly. While Krishna’s predecessor Ginni Rometty left a complex legacy as she worked to bring IBM into the modern age, she presided over a dreadful string of 22 straight quarters of declining revenue, a record Krishna surely hopes to avoid.

Strong headwinds

To her credit, under Rometty the company tried hard to pivot to more modern customer requirements, like cloud, artificial intelligence, blockchain and security. While the results weren’t always there, Krishna acknowledged in an email employees received on his first day that she left something to build on.

“IBM has already built enduring platforms in mainframe, services and middleware. All three continue to serve our clients. I believe now is the time to build a fourth platform in hybrid cloud. An essential, ubiquitous hybrid cloud platform our clients will rely on to do their most critical work in this century. A platform that can last even longer than the others,” he wrote.

But Ray Wang, founder and principal analyst at Constellation Research, says the market headwinds the company faces are real, and it’s going to take some strong leadership to get customers to choose IBM over its primary cloud infrastructure competitors.

“His top challenge is to restore the trust of clients that IBM has the latest technology and solutions and is reinvesting enough in innovation that clients want to see. He has to show that IBM has the same level of innovation and engineering talent as the hyper scalers Google, Microsoft and Amazon,” Wang explained.

Cultural transformation


By Ron Miller

Paul Cormier takes over as Red Hat CEO, as Jim Whitehurst moves to IBM

When Ginni Rometty indicated that she was stepping down as IBM CEO at the end of January, the company announced that Arvind Krishna would be taking over, while Red Hat CEO Jim Whitehurst would become president. To fill his role, Red Hat announced today that long-time executive Paul Cormier has been named president and CEO.

Cormier would seem to be a logical choice to run Red Hat, having been with the company since 2001. He joined as its VP of engineering and has seen the company grow from a small startup to a multi-billion dollar company.

Cormier spoke about the historical arc he has witnessed in his years at Red Hat. “Looking back to when I joined, we were in a different position and facing different issues, but the spirit was the same. We were on a mission to convince the world that open source was real, safe and enterprise-grade,” Cormier said in an email to employees about his promotion.

Former CEO Whitehurst certainly sees this as a sensible transition. “After working with him closely for more than a decade, I can confidently say that Paul was the natural choice to lead Red Hat. Having been the driving force behind Red Hat’s product strategy for nearly two decades, he’s been intimately involved in setting the company’s direction and uniquely understands how to help customers and partners make the most out of their cloud strategy,” he said in a statement.

In a Q&A with Cormier on the company website, he talked about the kind of changes he expects to see under his leadership in the next five years of the company. “There’s a term that we use today, ‘applications run the business.’ In five years, I see it becoming the case for the majority of enterprises. And with that, the infrastructure underpinning these applications will be even more critical. Management and security are paramount — and this isn’t just one environment. It’s bare metal and hypervisors to public and private clouds. It’s Linux, VMs, containers, microservices and more,” he said.

When IBM bought Red Hat in 2018 for $34 billion, there was widespread speculation that Whitehurst would eventually take over in an executive position there. Now that that has happened, Cormier will step into run Red Hat.

While Red Hat is under the IBM umbrella, it continues to operate as a separate company with its own executive structure, but that vision that Cormier outlined is in line with how it will fit within the IBM family as it tries to make its mark on the shifting cloud and enterprise open source markets.


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

The mainframe business is alive and well, as IBM announces new Z15

It’s easy to think about mainframes as some technology dinosaur, but the fact is these machines remain a key component of many large organization’s computing strategies. Today, IBM announced the latest in their line of mainframe computers, the Z15.

For starters, as you would probably expect, these are big and powerful machines capable of handling enormous workloads. For example, this baby can process up to 1 trillion web transactions a day and handle 2.4 million Docker containers, while offering unparalleled security to go with that performance. This includes the ability to encrypt data once, and it stays encrypted, even when it leaves the system, a huge advantage for companies with a hybrid strategy.

Speaking of which, you may recall that IBM bought Red Hat last year for $34 billion. That deal closed in July and the companies have been working to incorporate Red Hat technology across the IBM business including the z line of mainframes.

IBM announced last month that it was making OpenShift, Red Hat’s Kubernetes-based cloud-native tools, available on the mainframe running Linux. This should enable developers, who have been working on OpenShift on other systems to move seamlessly to the mainframe without special training.

IBM sees the mainframe as a bridge for hybrid computing environments, offering a highly secure place for data that when combined with Red Hat’s tools, can enable companies to have a single control plane for applications and data wherever it lives.

While it could be tough to justify the cost of these machines in the age of cloud computing, Ray Wang, founder and principal analyst at Constellation Research, says it could be more cost-effective than the cloud for certain customers. “If you are a new customer, and currently in the cloud and develop on Linux, then in the long run the economics are there to be cheaper than public cloud if you have a lot of IO, and need to get to a high degree of encryption and security” he said.

He added, “The main point is that if you are worried about being held hostage by public cloud vendors on pricing, in the long run the Z is a cost-effective and secure option for owning compute power and working in a multi-cloud, hybrid cloud world.”

Companies like airlines and financial services companies continue to use mainframes, and while they need the power these massive machines provide, they need to do so in a more modern context. The z15 is designed to provide that link to the future, while giving these companies the power they need.


By Ron Miller

IBM brings Cloud Foundry and Red Hat OpenShift together

At the Cloud Foundry Summit in The Hague, IBM today showcased its Cloud Foundry Enterprise Environment on Red Hat’s OpenShift container platform.

For the longest time, the open-source Cloud Foundry Platform-as-a-Service ecosystem and Red Hat’s Kubernetes-centric OpenShift were mostly seen as competitors, with both tools vying for enterprise customers who want to modernize their application development and delivery platforms. But a lot of things have changed in recent times. On the technical side, Cloud Foundry started adopting Kubernetes as an option for application deployments and as a way of containerizing and running Cloud Foundry itself.

On the business side, IBM’s acquisition of Red Hat has brought along some change, too. IBM long backed Cloud Foundry as a top-level foundation member, while Red Hat bet on its own platform instead. Now that the acquisition has closed, it’s maybe no surprise that IBM is working on bringing Cloud Foundry to Red Hat’s platform.

For now, this work is still officially still a technology experiment, but our understanding is that IBM plans to turn this into a fully supported project that will give Cloud Foundry users the option to deploy their application right to OpenShift, while OpenShift customers will be able to offer their developers the Cloud Foundry experience.

“It’s another proof point that these things really work well together,” Cloud Foundry Foundation CTO Chip Childers told me ahead of today’s announcement. “That’s the developer experience that the CF community brings and in the case of IBM, that’s a great commercialization story for them.”

While Cloud Foundry isn’t seeing the same hype as in some of its earlier years, it remains one of the most widely used development platforms in large enterprises. According to the Cloud Foundry Foundation’s latest user survey, the companies that are already using it continue to move more of their development work onto the platform and the according to the code analysis from source{d}, the project continues to see over 50,000 commits per month.

“As businesses navigate digital transformation and developers drive innovation across cloud native environments, one thing is very clear: they are turning to Cloud Foundry as a proven, agile, and flexible platform — not to mention fast — for building into the future,” said Abby Kearns, executive director at the Cloud Foundry Foundation. “The survey also underscores the anchor Cloud Foundry provides across the enterprise, enabling developers to build, support, and maximize emerging technologies.”image024

Also at this week’s Summit, Pivotal (which is in the process of being acquired by VMware) is launching the alpha version of the Pivotal Application Service (PAS) on Kubernetes, while Swisscom, an early Cloud Foundry backer, is launching a major update to its Cloud Foundry-based Application Cloud.


By Frederic Lardinois

With the acquisition closed, IBM goes all in on Red Hat

IBM’s massive $34 billion acquisition of Red Hat closed a few weeks ago and today, the two companies are now announcing the first fruits of this process. For the most part, today’s announcement further IBM’s ambitions to bring its products to any public and private cloud. That was very much the reason why IBM acquired Red Hat in the first place, of course, so this doesn’t come as a major surprise, though most industry watchers probably didn’t expect this to happen this fast.

Specifically, IBM is announcing that it is bringing its software portfolio to Red Hat OpenShift, Red Hat’s Kubernetes-based container platform that is essentially available on any cloud that allows its customers to run Red Hat Enterprise Linux.

In total, IBM has already optimized more than 100 products for OpenShift and bundled them into what it calls “Cloud Paks.” There are currently five of these Paks: Cloud Pak for Data, Application, Integration, Automation and Multicloud Management. These technologies, which IBM’s customers can now run on AWS, Azure, Google Cloud Platform or IBM’s own cloud, among others, include DB2, WebSphere, API Connect, Watson Studio and Cognos Analytics.

“Red Hat is unlocking innovation with Linux-based technologies, including containers and Kubernetes, which have become the fundamental building blocks of hybrid cloud environments,” said Jim Whitehurst, president and CEO of Red Hat, in today’s announcement. “This open hybrid cloud foundation is what enables the vision of any app, anywhere, anytime. Combined with IBM’s strong industry expertise and supported by a vast ecosystem of passionate developers and partners, customers can create modern apps with the technologies of their choice and the flexibility to deploy in the best environment for the app – whether that is on-premises or across multiple public clouds.”

IBM argues that a lot of the early innovation on the cloud was about bringing modern, customer-facing applications to market, with a focus on basic cloud infrastructure. Now, however, enterprises are looking at how they can take their mission-critical applications to the cloud, too. For that, they want access to an open stack that works across clouds.

In addition, IBM also today announced the launch of a fully managed Red Hat OpenShift service on its own public cloud, as well as OpenShift on IBM Systems, including the IBM Z and LinuxONE mainframes, as well as the launch of its new Red Hat consulting and technology services.


By Frederic Lardinois

With $34B Red Hat deal closed, IBM needs to execute now

In a summer surprise this week, IBM announced it had closed its $34 billion blockbuster deal to acquire Red Hat. The deal, which was announced in October, was expected to take a year to clear all of the regulatory hurdles, but U.S. and EU regulators moved surprisingly quickly. For IBM, the future starts now, and it needs to find a way to ensure that this works.

There are always going to be layers of complexity in a deal of this scope, as IBM moves to incorporate Red Hat into its product family quickly and get the company moving. It’s never easy combining two large organizations, but with IBM mired in single-digit cloud market share and years of sluggish growth, it is hoping that Red Hat will give it a strong hybrid cloud story that can help begin to alter its recent fortunes.

As Box CEO (and IBM partner) Aaron Levie tweeted at the time the deal was announced, “Transformation requires big bets, and this is a good one.” While the deal is very much about transformation, we won’t know for some time if it’s a good one.

Transformation blues


By Ron Miller

Microsoft makes a push for service mesh interoperability

Services meshes. They are the hot new thing in the cloud native computing world. At Kubecon, the bi-annual festival of all things cloud native, Microsoft today announced that it is teaming up with a number of companies in this space to create a generic service mesh interface. This will make it easier for developers to adopt the concept without locking them into a specific technology.

In a world where the number of network endpoints continues to increase as developers launch new micro-services, containers and other systems at a rapid clip, they are making the network smarter again by handling encryption, traffic management and other functions so that the actual applications don’t have to worry about that. With a number of competing service mesh technologies, though, including the likes of Istio and Linkerd, developers currently have to chose which one of these to support.

“I’m really thrilled to see that we were able to pull together a pretty broad consortium of folks from across the industry to help us drive some interoperability in the service mesh space,” Gabe Monroy, Microsoft’s lead product manager for containers and the former CTO of Deis, told me. “This is obviously hot technology — and for good reasons. The cloud-native ecosystem is driving the need for smarter networks and smarter pipes and service mesh technology provides answers.”

The partners here include Buoyant, HashiCorp, Solo.io, Red Hat, AspenMesh, Weaveworks, Docker, Rancher, Pivotal, Kinvolk and VMWare. That’s a pretty broad coalition, though it notably doesn’t include cloud heavyweights like Google, the company behind Istio, and AWS.

“In a rapidly evolving ecosystem, having a set of common standards is critical to preserving the best possible end-user experience,” said Idit Levine, founder and CEO of Solo.io. “This was the vision behind SuperGloo – to create an abstraction layer for consistency across different meshes, which led us to the release of Service Mesh Hub last week. We are excited to see service mesh adoption evolve into an industry level initiative with the SMI specification.”

For the time being, the interoperability features focus on traffic policy, telemetry and traffic management. Monroy argues that these are the most pressing problems right now. He also stressed that this common interface still allows the different service mesh tools to innovate and that developers can always work directly with their APIs when needed. He also stressed that the Service Mesh Interface (SMI), as this new specification is called, does not provide any of its own implementations of these features. It only defines a common set of APIs.

Currently, the most well-known service mesh is probably Istio, which Google, IBM and Lyft launched about two years ago. SMI may just bring a bit more competition to this market since it will allow developers to bet on the overall idea of a service mesh instead of a specific implementation.

In addition to SMI, Microsoft also today announced a couple of other updates around its cloud-native and Kubernetes services. It announced the first alpha of the Helm 3 package manager, for example, as well as the 1.0 release of its Kubernetes extension for Visual Studio Code and the general availability of its AKS virtual nodes, using the open source Virtual Kubelet project.

 


By Frederic Lardinois

Announcing TechCrunch Sessions: Enterprise this September in San Francisco

Of the many categories in the tech world, none is more ferociously competitive than enterprise. For decades, SAP, Oracle, Adobe, Microsoft, IBM and Salesforce, to name a few of the giants, have battled to deliver the tools businesses want to become more productive and competitive. That market is closing in on $500 billion in sales per year, which explains why hundreds of new enterprise startups launch every year and dozens are acquired by the big incumbents trying to maintain their edge.

Last year alone, the top 10 enterprise acquisitions were worth $87 billion and included IBM’s acquiring Red Hat for $34 billion, SAP paying $8 billion for Qualtrics, Microsoft landing GitHub for $7.5 billion, Salesforce acquiring MuleSoft for $6.5 billion and Adobe grabbing Marketo for $4.75 billion. No startup category has made more VCs and founders wildly wealthy, and none has seen more mighty companies rise faster or fall harder. That technology and business thrill ride makes enterprise a category TechCrunch has long wanted to tackle head on.

TC Sessions: Enterprise (September 5 at San Francisco’s Yerba Buena Center) will take on the big challenges and promise facing enterprise companies today. TechCrunch’s editors, notably Frederic Lardinois, Ron Miller and Connie Loizos, will bring to the stage founders and leaders from established and emerging companies to address rising questions like the promised revolution from machine learning and AI, intelligent marketing automation and the inevitability of the cloud, as well as the outer reaches of technology, like quantum and blockchain.

We’ll enlist proven enterprise-focused VCs to reveal where they are directing their early, middle and late-stage investments. And we’ll ask the most proven serial entrepreneurs to tell us what it really took to build that company, and which company they would like to create next. All throughout the show, TechCrunch’s editors will zero in on emerging enterprise technologies to sort the hype from the reality. Whether you are a founder, an investor, enterprise-minded engineer or a corporate CTO / CIO, TC Sessions: Enterprise will provide a valuable day of new insights and great networking.

Tickets are now available for purchase on our website at the early-bird rate of $395. Want to bring a group of people from your company? Get an automatic 15% savings when you purchase four or more tickets at once. Are you an early-stage startup? We have a limited number of Startup Demo Packages available for $2,000, which includes four tickets to attend the event. Students are invited to apply for a reduced-price student ticket at just $245. Additionally, for each ticket purchased for TC Sessions: Enterprise, you will also be registered for a complimentary Expo Only pass to TechCrunch Disrupt SF on October 2-4.

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By Alexandra Ames

Red Hat and Microsoft are cozying up some more with Azure Red Hat OpenShift

It won’t be long before Red Hat becomes part of IBM, the result of the $34 billion acquisition last year that is still making its way to completion. For now, Red Hat continues as a stand-alone company, and is if to flex its independence muscles, it announced its second agreement in two days with Microsoft Azure, Redmond’s public cloud infrastructure offering. This one involving running Red Hat OpenShift on Azure.

OpenShift is RedHat’s Kubernetes offering. The thinking is that you can start with OpenShift in your data center, then as you begin to shift to the cloud, you can move to Azure Red Hat OpenShift — such a catchy name — without any fuss, as you have the same management tools you have been used to using.

As Red Hat becomes part of IBM, it sees that it’s more important than ever to maintain its sense of autonomy in the eyes of developers and operations customers, as it holds its final customer conference as an independent company. Red Hat executive vice president and president, of products and technologies certainly sees it that way. “I think [the partnership] is a testament to, even with moving to IBM at some point soon, that we are going to be  separate and really keep our Switzerland status and give the same experience for developers and operators across anyone’s cloud,” he told TechCrunch.

It’s essential to see this announcement in the context of both IBM’s and Microsoft’s increasing focus on the hybrid cloud, and also in the continuing requirement for cloud companies to find ways to work together, even when it doesn’t always seem to make sense, because as Microsoft CEO Satya Nadella has said, customers will demand it. Red Hat has a big enterprise customer presence and so does Microsoft. If you put them together, it could be the beginning of a beautiful friendship.

Scott Guthrie, executive vice president for the cloud and AI group at Microsoft understands that. “Microsoft and Red Hat share a common goal of empowering enterprises to create a hybrid cloud environment that meets their current and future business needs. Azure Red Hat OpenShift combines the enterprise leadership of Azure with the power of Red Hat OpenShift to simplify container management on Kubernetes and help customers innovate on their cloud journeys,” he said in a statement.

This news comes on the heels of yesterday’s announcement, also involving Kubernetes. TechCrunch’s own Frederic Lardinois described it this way:

What’s most interesting here, however, is KEDA, a new open-source collaboration between Red Hat and Microsoft that helps developers deploy serverless, event-driven containers. Kubernetes-based event-driven autoscaling, or KEDA, as the tool is called, allows users to build their own event-driven applications on top of Kubernetes. KEDA handles the triggers to respond to events that happen in other services and scales workloads as needed.

Azure Red Hat OpenShift is available now on Azure. The companies are working on some other integrations too including Red Hat Enterprise Linux (RHEL) running on Azure and Red Hat Enterprise Linux 8 support in Microsoft SQL Server 2019.


By Ron Miller

With Kata Containers and Zuul, OpenStack graduates its first infrastructure projects

Over the course of the last year and a half, the OpenStack Foundation made the switch from purely focusing on the core OpenStack project to opening itself up to other infrastructure-related projects as well. The first two of these projects, Kata Containers and the Zuul project gating system, have now exited their pilot phase and have become the first top-level Open Infrastructure Projects at the OpenStack Foundation.

The Foundation made the announcement at its first Open Infrastructure Summit (previously known as the OpenStack Summit) in Denver today after the organization’s board voted to graduate them ahead of this week’s conference. “It’s an awesome milestone for the projects themselves,” OpenStack Foundation executive direction Jonathan Bryce told me. “It’s a validation of the fact that in the last 18 months, they have created sustainable and productive communities.”

It’s also a milestone for the OpenStack Foundation itself, though, which is still in the process of reinventing itself in many ways. It can now point at two successful projects that are under its stewardship, which will surely help it as it goes out an tries to attract others who are looking to bring their open-source projects under the aegis of a foundation.

In addition to graduating these first two projects, Airship — a collection of open-source tools for provisioning private clouds that is currently a pilot project — hit version 1.0 today. “Airship originated within AT&T,” Bryce said. “They built it from their need to bring a bunch of open-source tools together to deliver on their use case. And that’s why, from the beginning, it’s been really well aligned with what we would love to see more of in the open source world and why we’ve been super excited to be able to support their efforts there.”

With Airship, developers use YAML documents to describe what the final environment should like like and the result of that is a production-ready Kubernetes cluster that was deployed by OpenStack’s Helm tool – though without any other dependencies on OpenStack.

AT&T’s assistant vice president, Network Cloud Software Engineering, Ryan van
Wyk, told me that a lot of enterprises want to use certain open-source components, but that the interplay between them is often difficult and that while it’s relatively easy to manage the lifecycle of a single tool, it’s hard to do so when you bring in multiple open-source tools, all with their own lifecycles. “What we found over the last five years working in this space is that you can go and get all the different open-source solutions that you need,” he said. “But then the operator has to invest a lot of engineering time and build extensions and wrappers and perhaps some orchestration to manage the lifecycle of the various pieces of software required to deliver the infrastructure.”

It’s worth noting that nothing about Airship is specific to the telco world, though it’s no secret that OpenStack is quite popular in the telco world and unsurprisingly, the Foundation is using this week’s event to highlight the OpenStack project’s role in the upcoming 5G rollouts of various carriers.

In addition, the event will also showcase OpenStack’s bare metal capabilities, an area the project has also focused on in recent releases. Indeed, the Foundation today announced that its bare metal tools now manage over a million cores of compute. To codify these efforts, the Foundation also today launched the OpenStack Ironic Bare Metal program, which brings together some of the project’s biggest users like Verizon Media (home of TechCrunch, though we don’t run on the Verizon cloud), 99Cloud, China Mobile, China Telecom, China Unicom, Mirantis, OVH, Red Hat, SUSE, Vexxhost and ZTE.


By Frederic Lardinois

Google and IBM still trying desperately to move cloud market share needle

When it comes to the cloud market, there are few known knows. For instance, we know that AWS is the market leader with around 32 percent of market share. We know Microsoft is far back in second place with around 14 percent, the only other company in double digits. We also know that IBM and Google are wallowing in third or fourth place, depending on whose numbers you look at, stuck in single digits. The market keeps expanding, but these two major companies never seem to get a much bigger piece of the pie.

Neither company is satisfied with that of course. Google so much so that it moved on from Diane Greene at the end of last year, bringing in Oracle veteran Thomas Kurian to lead the division out of the doldrums. Meanwhile, IBM made an even bigger splash, plucking Red Hat from the market for $34 billion in October.

This week, the two companies made some more noise, letting the cloud market know that they are not ceding the market to anyone. For IBM, which is holding its big IBM Think conference this week in Las Vegas, it involved opening up Watson to competitor clouds. For a company like IBM, this was a huge move, akin to when Microsoft started building apps for iOS. It was an acknowledgement that working across platforms matters, and that if you want to gain market share, you had better start thinking outside the box.

While becoming cross-platform compatible isn’t exactly a radical notion in general, it most certainly is for a company like IBM, which if it had its druthers and a bit more market share, would probably have been content to maintain the status quo. But if the majority of your customers are pursuing a multi-cloud strategy, it might be a good idea for you to jump on the bandwagon and that’s precisely what IBM has done by opening up access to Watson across clouds in this fashion.

Clearly buying Red Hat was about a hybrid cloud play, and if IBM is serious about that approach, and for $34 billion, it had better be, it would have to walk the walk, not just talk the talk. As IBM Watson CTO and chief architect Ruchir Puri told my colleague Frederic Lardinois about the move, “It’s in these hybrid environments, they’ve got multiple cloud implementations, they have data in their private cloud as well. They have been struggling because the providers of AI have been trying to lock them into a particular implementation that is not suitable to this hybrid cloud environment.” This plays right into the Red Hat strategy and I’m betting you’ll see more of this approach in other parts of the product line from IBM this year. (Google als acknowledged this when it announced a hybrid strategy of its own last year.)

Meanwhile Thomas Kurian had his coming out party at the Goldman Sachs Technology and Internet Conference in San Francisco earlier today. Bloomberg reports that he announced a plan to increase the number of salespeople and train them to understand specific verticals, ripping a page straight from the playbook of his former employer, Oracle.

He suggested that his company would be more aggressive in pursuing traditional enterprise customers, although I’m sure his predecessor, Diane Greene, wasn’t exactly sitting around counting on inbound marketing interest to grow sales. In fact, rumor had it that she wanted to pursue government contracts much more aggressively than the company was willing to do. Now it’s up to Kurian to grow sales. Of course, given that Google doesn’t report cloud revenue it’s hard to know what growth would look like, but perhaps if it has more success it will be more forthcoming.

As Bloomberg’s Shira Ovide tweeted today, it’s one thing to turn to the tried and true enterprise playbook, but that doesn’t mean that executing on that approach is going to be simple, or that Google will be successful in the end.

These two companies obviously desperately want to alter their cloud fortunes, which have been fairly dismal to this point. The moves announced today are clearly part of a broader strategy to move the market share needle, but whether they can or the market positions have long ago hardened remains to be seen.


By Ron Miller