Red Hat to Acquire CoreOS for $250 Million

Furlow consulting

Open source solutions provider Red Hat has signed a definitive agreement to acquire CoreOS, Inc. – an innovator in Kubernetes and container-native solutions – for a purchase price of $250 million.

By combining CoreOS’s complementary capabilities with Red Hat’s already broad Kubernetes and container-based portfolio, including Red Hat OpenShift, Red Hat aims to further accelerate adoption and development of its hybrid cloud platform for modern application workloads. Red Hat was early to embrace containers and container orchestration and has contributed deeply to related open source communities, including Kubernetes.

“Red Hat and CoreOS’s relationship began many years ago as open source collaborators developing some of the key innovations in containers and distributed systems, helping to make automated operations a reality,” said Alex Polvi, CEO of CoreOS. “This announcement marks a new stage in our shared aim to make these important technologies ubiquitous in business and the world. Thank you to the CoreOS family, our customers, partners, and most of all, the free software community for supporting us in our mission to make the internet more secure through automated operations.”

Hybrid and Multi Cloud

As applications move to hybrid and multi-cloud environments, a growing number of organizations would be using containers to “more easily” build, deploy and move applications to, from, and across clouds.

Founded in 2013, CoreOS was created with a goal of building and delivering infrastructure for organizations of all sizes that mirrored that of large-scale software companies, automatically updating and patching servers and helping to solve pain points like downtime, security and resilience.

CoreOS is the creator of CoreOS Tectonic, an “enterprise-ready” Kubernetes platform that provides automated operations, enables portability across private and public cloud providers, and is based on open source software. It also offers CoreOS Quay, an “enterprise-ready” container registry.

CoreOS is also well-known for helping to drive many of the open source innovations that are at the heart of containerized applications, including Kubernetes, where it is a leading contributor; Container Linux, a lightweight Linux distribution created and maintained by CoreOS that automates software updates and is streamlined for running containers; etcd, the distributed data store for Kubernetes; and rkt, an application container engine, donated to the Cloud Native Computing Foundation (CNCF), that helped drive the current Open Container Initiative (OCI) standard.

“The next era of technology is being driven by container-based applications that span multi- and hybrid cloud environments, including physical, virtual, private cloud and public cloud platforms,” said Paul Cormier, president, Products and Technologies, Red Hat. “Kubernetes, containers and Linux are at the heart of this transformation, and, like Red Hat, CoreOS has been a leader in both the upstream open source communities that are fueling these innovations and its work to bring enterprise-grade Kubernetes to customers. We believe this acquisition cements Red Hat as a cornerstone of hybrid cloud and modern app deployments.”

Furlow consulting