🗂 Link: Pat Gelsinger and his calculated plan for VMware

“Three years ago, your biggest risk was cloud; six years ago, your biggest risk was Open Stack. If you look at it now, you can clearly say, ‘Hey, these next-generation applications, are you going to be the enterprise supplier of choice?’. So in that sense, I think we had a bit of defensive risk … our platform was at risk.

“At the same time, if you look at the dollars, the business value at play in the developer layer — a lot of money there. It’s a very rich, offensive opportunity as well — both defense and offense — and if we expand the value proposition for all of the VMware operators today, to be able to effectively reach the developers and the application in a much more effective way than they do today … if we can bring those worlds together, that’s a pretty huge benefit for our customers as well.”

Source: Pat Gelsinger and his calculated plan for VMware

🗂 Link: High on low-code

Part of the reason for the rise is that buyers are reaching for larger targets. Kony projects its topline will grow to $120m in 2020. Quickbase, Nintex and Mendix were all nearing or above $100m in their recent sales.

Source: High on low-code

Link: IBM Takes A Hands Off Approach With Red Hat

The reason for this hands-off attitude for such expensive acquisitions is simple: Both VMware and Red Hat live and die by the fact that they are neutral to any particular platform. While IBM may prefer Red Hat’s various elements of the stack – the Enterprise Linux operating system, the OpenShift container system, the OpenStack cloud controller, the JBoss application server, and the Ceph block and object storage – it cannot prevent Red Hat’s vast partner network from doing what they do, which is compete against IBM and each other selling Linux stacks. To not do so would be to destroy the value of the Red Hat business, just as Dell would destroy the value of the VMware business if it had only put VMware’s virtualization and cloud software on its own PowerEdge servers

Source: IBM Takes A Hands Off Approach With Red Hat

Assume that rivals will exercise their options

If you give someone an option, even if it seems like one you don’t want, assume the worst and act/protect yourself accordingly:

In the Rent-A-Center deal, there was actually a lot of work to do, and it distracted Vintage from the extension deadline. In the Van Halen deal, there wasn’t particularly, so Monk cleverly created a lot of work to distract them, and it (apparently) worked. One lesson here is, keep a checklist of your deadlines. Another lesson might be, just because you have a deal with someone and you are working hard together to achieve some goal, don’t just blindly assume that you are partners and your interests are aligned: Think about what the other person’s interests actually are, and keep in mind what your contract actually requires.

A third lesson might be, it is common in finance and economics to assume optimal exercise of options: If someone has the right to do something, and it is in her clear economic interest to do it, that is assumed to be equivalent to “she will do it.” That is a good enough assumption for most cases, but in the real world, sometimes people just forget.

CI/CD acquisitions

  • Oracle acquired Werker – April 2017
  • GE Digital acquired Solano Labs – Oct 2017
  • Cloudbees acquired Codeship – Feb 2018
  • Idera acquired Travels CI – Jan 2019
  • Jfrog acquired Shippable – Feb 2019

From my co-worker, Nima.

Link: Virtualization software company Parallels reportedly to be acquired by Canada’s Corel

Both companies are “time was” status.

Clearly, just a VC roll-up of cash cows:

Corel, once publicly traded, is now owned by private equity firm Vector Capital and, in its history, has acquired several other firms and products, including InterVideo, Ulead, Micrografx, WinZip, Roxio and Pinnacle Systems. Parallels’ products include Parallels Desktop for Mac, Parallels Toolbox for Mac, Parallels Remote Application Server and Parallels Access.
Original source: Virtualization software company Parallels reportedly to be acquired by Canada’s Corel

Link: OpenStack 2018: Mark Shuttleworth chats to The Reg about 10-year support plans, Linus Torvalds and Russian rockets

While he would obviously be very happy to welcome new customers to the Canonical fold, he points out that IBM is a “smart company” and says that “the guy who led the acquisition is the guy who engineered machines to beat Gary Kasparov. You might hope that there’s a good chess game going on there behind the scenes.”
Original source: OpenStack 2018: Mark Shuttleworth chats to The Reg about 10-year support plans, Linus Torvalds and Russian rockets

Link: Big Blue Puts on a Red Hat: IBM Acquires Red Hat

While many organizations have extensive on and off premise infrastructure investments, comparatively few of them are sophisticated in the way that those environments are tied to each other. If expectations are scaled back to the more realistic “multi-cloud” – the idea that an organization may have investments in more than one environment – the relevance and importance of OpenShift becomes more clear.

This is clever to point out that enterprises have enough trouble integrating their existing, on-premise stuff, let along the complexity and newness of tying together public and private cloud.
Original source: Big Blue Puts on a Red Hat: IBM Acquires Red Hat

Link: DOJ approves $69B CVS-Aetna merger as healthcare industry restructures

CVS, which racked up about $185 billion in revenue last year, runs the country’s largest retail-pharmacy chain and provides prescription plans to more than 94 million customers. By joining forces with Aetna—the nation’s third-largest health-insurance provider with over 22 million medical members, earning $60 billion in revenue in 2017—CVS will have a tight grasp on the market. The combined enterprise aims to be a first-line health care hub with clinics in its ubiquitous brick-and-mortar stores.
Original source: DOJ approves $69B CVS-Aetna merger as healthcare industry restructures

Link: Hadoop Needs To Be A Business, Not Just A Platform

Financial goop on Cloudera and HortonWorks merging:

The deal for the merger of the two companies is surprisingly simple. Shareholders in Hortonworks will get 1.305 shares in Cloudera and Cloudera will be the remaining company in fact, if not necessarily in name. This means that Cloudera shareholders will own 60 percent of the combined company and Hortonworks shareholders will own the remaining 40 percent. The combined companies had a fully diluted equity value of $5.2 billion before the merger was announced. At the time the deal was announced, the combined firms had more than $500 million in cash, no debt, and 2,500 customers who largely do not overlap. There are more than 120 customers who spend $1 million a year and another 800 customers who spend more than $100,000 a year for subscriptions and such.
Original source: Hadoop Needs To Be A Business, Not Just A Platform

Link: Broadcom CEO Dangles CA Technologies Bait, Investors Bite

Tan told investors during the company’s third fiscal quarter of 2018 conference call Thursday that he thinks Broadcom will be able to tap into CA Technologies’ current software customers to sell its switches, routers, and fiber optic equipment.

“Just as we have done with hypercloud players, we believe we can bring our compute offload solutions, our Tomahawk switches, Jericho routers, fiber optics, and our server storage connectivity portfolio directly to these same large enterprises that are buying CA software,” Tan told investors, according to transcripts. “Through CA we believe we have a big doorway to engage strategically with these customers and provide them direct access at very compelling economics to the same leading edge … storage and compute technologies that are used to enable the cloud service providers today.”
Original source: Broadcom CEO Dangles CA Technologies Bait, Investors Bite

Link: WSO2 CEO Tyler Jewell: Ballerina and the End of Middleware

‘About that same time, Quest was getting acquired by Dell. And then Vinny calls up one day. He was starting a venture capital company and asked if I would like to get involved. He owned 30 or 40 percent of Quest, so he made a huge fortune. I’m like “Well, Vinny, that sounds really interesting, but I’ve just decided to start this company Codenvy. We’re really excited about it. We’re gonna go build this Cloud IDE.” And he says, “Great. Come on board as a partner. Manage our dev ops investments, and we’ll make Codenvy one of our investments as well.”

‘And so sure enough, he launches Toba Capital, and he buys back all the investments from Dell. So all the investments that Quest had, Dell didn’t have an investment arm. And so there’s a dozen or so out there, WSO2 and Sauce Labs and a couple others. And he just buys ’em back. And then he starts investing more into these companies. And at that point in time started investing more aggressively in WSO2, and I joined its board. And Toba eventually increased its position over time pretty significantly. And I was involved in about four or five different boards on these dev ops companies while I was running Codenvy from 2012 to 2017.’
Original source: WSO2 CEO Tyler Jewell: Ballerina and the End of Middleware

Link: AT&T to Acquire AlienVault | AlienVault

“The acquisition will combine AlienVault’s expertise in threat intelligence with AT&T’s cybersecurity solutions portfolio that includes threat detection and prevention as well as response technologies and services. After the acquisition closes, AT&T business customers will be able to access our unified security management platform that helps make organizations more effective at threat detection and response, by giving them access to a broad set of enterprise-grade security capabilities.”
Original source: AT&T to Acquire AlienVault | AlienVault

Link: Splunk acquires VictorOps to take it – and you – into site reliability engineering

“Adding these tools to Splunk’s roster, Mann said, means it can now monitor apps, provide an environment in which to fix them and allow the deeper investigations that figure out root cause of problems and allow re-designs of infrastructure and code to stop them recurring.”
Original source: Splunk acquires VictorOps to take it – and you – into site reliability engineering

Link: Splunk acquires VictorOps to take it – and you – into site reliability engineering

“Adding these tools to Splunk’s roster, Mann said, means it can now monitor apps, provide an environment in which to fix them and allow the deeper investigations that figure out root cause of problems and allow re-designs of infrastructure and code to stop them recurring.”
Original source: Splunk acquires VictorOps to take it – and you – into site reliability engineering

Link: The Cost of Developers

That’s a lot of money.

“on the other side of the spectrum, purely enterprise-focused companies like IBM or Oracle would be tempted to wring every possible bit of profit out of the company…. What Microsoft wants is much fuzzier: it wants to be developers’ friend, in large part because it has no other option.”
Original source: The Cost of Developers

Link: The Cost of Developers

That’s a lot of money.

“on the other side of the spectrum, purely enterprise-focused companies like IBM or Oracle would be tempted to wring every possible bit of profit out of the company…. What Microsoft wants is much fuzzier: it wants to be developers’ friend, in large part because it has no other option.”
Original source: The Cost of Developers

Link: Bringing CoreOS technology to Red Hat OpenShift to deliver a next-generation automated Kubernetes platform

“With the acquisition, Container Linux will be reborn as Red Hat CoreOS, a new entry into the Red Hat ecosystem. Red Hat CoreOS will be based on Fedora and Red Hat Enterprise Linux sources and is expected to ultimately supersede Atomic Host as Red Hat’s immutable, container-centric operating system.

“Red Hat CoreOS will provide the foundation for Red Hat OpenShift Container Platform, Red Hat OpenShift Online, and Red Hat OpenShift Dedicated. Red Hat OpenShift Container Platform will also, of course, continue to support Red Hat Enterprise Linux for those who prefer its lifecycle and packaging as the foundation for their Kubernetes deployments.

“Current Container Linux users can rest easy that Red Hat plans continue investing in the operating system and community. The project is an important base for container-based environments by delivering automated updates with strong security capabilities, and as a part of our commitment and vision we plan to support Container Linux as you know it today for the community and Tectonic users alike.”
Original source: Bringing CoreOS technology to Red Hat OpenShift to deliver a next-generation automated Kubernetes platform

Link: On Salesforce’s acquisition of MuleSoft

“[H]aving a decent integration platform in its arsenal enables Salesforce to tell better stories about the seamlessness of its own application portfolio, even as this continues to expand through acquisition (which, note, was where Oracle was with its Fusion Middleware portfolio and strategy when it bought BEA). It also potentially helps Salesforce further develop its Einstein proposition, by making it easier to get access to corporate data from more systems in more locations…. However, just as was the case with BEA, many of MuleSoft’s customers made that investment precisely because it could demonstrate its ability to connect anything to anything without bias, and nurture customers’ own heterogeneous ‘application networks’. I hope Salesforce can take MuleSoft’s existing value proposition forward as it creates the Salesforce Integration Cloud.”
Original source: On Salesforce’s acquisition of MuleSoft

Link: On Salesforce’s acquisition of MuleSoft

“[H]aving a decent integration platform in its arsenal enables Salesforce to tell better stories about the seamlessness of its own application portfolio, even as this continues to expand through acquisition (which, note, was where Oracle was with its Fusion Middleware portfolio and strategy when it bought BEA). It also potentially helps Salesforce further develop its Einstein proposition, by making it easier to get access to corporate data from more systems in more locations…. However, just as was the case with BEA, many of MuleSoft’s customers made that investment precisely because it could demonstrate its ability to connect anything to anything without bias, and nurture customers’ own heterogeneous ‘application networks’. I hope Salesforce can take MuleSoft’s existing value proposition forward as it creates the Salesforce Integration Cloud.”
Original source: On Salesforce’s acquisition of MuleSoft

Link: How a holding company that sold pool chemicals pivoted into a $20B coffee empire

“In recent years, JAB has quietly plunked down majority stakes in some of the biggest coffee brands in the world, including Keurig ($13.9B), Peet’s Coffee ($974m), Stumptown, Intelligentsia, and the Caribou Coffee Company. JAB also bought out coffee-related food chains like Krispy Kreme ($1.35B) and Panera Bread ($7.5B), and put up $18.7B for soft drink giant Dr Pepper Snapple Group in a bid to bolster its distribution.”
Original source: How a holding company that sold pool chemicals pivoted into a $20B coffee empire

Link: How a holding company that sold pool chemicals pivoted into a $20B coffee empire

“In recent years, JAB has quietly plunked down majority stakes in some of the biggest coffee brands in the world, including Keurig ($13.9B), Peet’s Coffee ($974m), Stumptown, Intelligentsia, and the Caribou Coffee Company. JAB also bought out coffee-related food chains like Krispy Kreme ($1.35B) and Panera Bread ($7.5B), and put up $18.7B for soft drink giant Dr Pepper Snapple Group in a bid to bolster its distribution.”
Original source: How a holding company that sold pool chemicals pivoted into a $20B coffee empire

Link: Docker Who? By Acquiring CoreOS, Red Hat Aims to Be the Kubernetes Company

“So while this deal clearly changes the playing field for Kubernetes in the developer space, and probably further marginalizes Docker, it may actually not be the kind of “market consolidation” that used to characterize the maturity of a software platform. More likely, it’s the latest step by a major player in the server marketplace to find a way to capitalize on the success of a product that, had it been commercial and proprietary from the start, might have been a gold mine… except that, had it been commercial and proprietary, no one would have ever heard of it.”
Original source: Docker Who? By Acquiring CoreOS, Red Hat Aims to Be the Kubernetes Company

Link: Red Hat tries CoreOS on for size – and buys

‘The elder open source software biz sees the younger firm’s technology helping it automate and simplify its OpenShift container app platform, as well as improving its security and application portability in hybrid cloud environments. Red Hat says it will provide more details about how CoreOS products will be handled in the months ahead. It characterizes them as complementary to its own wares, althugh its plans may involve “integrating products and migrating customers to any combined offerings” at some later date.’
Original source: Red Hat tries CoreOS on for size – and buys