How Red Hat Runs

This past week at Red Hat Summit 2019 (May 7 – 9 2019) has been exhausting. It’s not an overstatement to say that they run analysts ragged at their events, but that’s not why the conference made me tired. It was the sheer energy of the show, the kind of energy that keeps you running with no sleep for three days straight. That energy came from two sources – excitement and fear.

Two announcements, in particular, generated joy amongst the devoted Red Hat fans. The first was the announcement of Red Hat Enterprise Linux version 8, better known as RHEL8. RHEL is the granddaddy of all major Linux distributions for the data center. RHEL8, however, doesn’t seem all that old. As well as all the typical enhancements to the kernel and other parts of the distro, Red Hat has added two killer features to RHEL.

The first, the web console, is a real winner. It provides a secure browser-based system to manage all the features of Linux that one typically needs a command line on the server to perform. Now, using Telnet or SSH to log in to a remote box and do a few adjustments is no big deal when you have a small number of machines, physical or virtual, in a data center. When there are thousands of machines to care for, this is too cumbersome. With web console plus Red Hat Satellite, the same type of system maintenance is much more efficient. It even has a terminal built in if the command line is the only option. I predict that the web console will be an especially useful asset to new sysadmins who have yet to learn the intricacies of the Linux command line (or just don’t want to).

The new image builder is also going to be a big help for DevOps teams. Image builder uses a point and click interface to build images of software stacks, based on RHEL of course, that can be instantiated over and over. Creating consistent environments for developers and testing is a major pain for DevOps teams. The ability to quickly and easily create and deploy images will take away a major impediment to smooth DevOps pipelines.

The second announcement that gained a lot of attention was the impending GA of OpenShift 4 represents a major change in the Red Hat container platform. It incorporates all the container automation goodness that Red Hat acquired from CoreOS, especially the operator framework. Operators are key to automating container clusters, something that is desperately needed for large scale production clusters. While Kubernetes has added a lot of features to help with some automation tasks, such as autoscaling, that’s not nearly enough for managing clusters at hyperscale or across hybrid clouds. Operators are a step in that direction, especially as Red Hat makes it easier to use Operators.

Speaking of OpenShift, Satya Nadella, CEO of Microsoft appeared on the mainstage to help announce Azure Red Hat OpenShift. This would have been considered a mortal sin at pre-Nadella Microsoft and highlights the acceptance of Linux and open source at the Windows farm. Azure Red Hat OpenShift is an implementation of OpenShift as a native Azure service. This matters a lot to those serious about multi-cloud deployments. Software that is not a native service for a cloud service provider do not have the integrations for billing, management, and especially set up that native services do. That makes them second class citizens in the cloud ecosystem. Azure Red Hat OpenShift elevates the platform to first-class status in the Azure environment.

Now for the fear. Although Red Hat went to considerable lengths to address the “blue elephant in the room”, to the point of bringing Ginny Rometty, IBM CEO on stage, the unease around the acquisition by IBM was palpable amongst Red Hat customers. Many that I spoke to were clearly afraid that IBM would ruin Red Hat. Rometty, of course, insisted that was not the case, going so far as to say that she “didn’t spend $34B on Red Hat to destroy them.”

That was cold comfort to Red Hat partners and customers who have seen tech mergers start with the best intentions and end in disaster. Many attendees I spoke drew parallels with the Oracle acquisition of Sun. Sun was, in fact, the Red Hat of its time – innovative, nimble, and with fierce loyalists amongst the technical staff. While products created by Sun still exist today, especially Java and MySQL, the essence of Sun was ruined in the acquisition. That is a giant cloud hanging over the IBM-Red Hat deal. For all the advantages that this deal brings to both companies and the open source community, the potential for a train wreck exists and that is a source of angst in the Red Hat and open source world.

In 2019, Red Hat is looking good and may have a great future. Or it is on the brink of disaster. The path they will take now depends on IBM. If IBM leaves them alone, it may turn out to be an amazing deal and the capstone of Rometty and Jim Whitehurst’s careers. If IBM allows internal bureaucracy and politics to change the current plan for Red Hat, it will be Sun version 2. Otherwise, it is expected that Red Hat will continue to make open source enterprise-friendly and drive open source communities. That would be very nice indeed.

Amalgam Insights Publishes Highly Anticipated SmartList on Service Mesh and Microservices Management

Amalgam Insights has just published my highly anticipated SmartList Market Guide on Service Mesh. It is currently available this week at no cost as we prepare for KubeCon and CloudNativeCon Europe 2019 where I’ll be attending.

Before you go to the event, get prepared by catching up on the key strategies, trends, and vendors associated with microservices and service mesh. For instance, consider how the Service Mesh market is currently constructed.

To get a deep dive on this figure regarding the three key sectors of the Service Mesh market, gain insights describing the current State of the Market for service mesh, and learn where key vendors and products including Istio, Linkerd, A10, Amazon, Aspen Mesh, Buoyant, Google, Hashicorp, IBM, NGINX, Red Hat, Solo.io, Vamp, and more fit into today’s microservices management environment, download my report today.

At IBM Think, Watson Expands “Anywhere”

At IBM Think in February, IBM made several announcements around the expansion of Watson’s availability and capabilities, framing these announcements as the launch of “Watson Anywhere.” This piece is intended to provide guidance to data analysts, data scientists, and analytic professionals seeking to implement machine learning and artificial intelligence capabilities and evaluating the capabilities of…

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Data Science and Machine Learning News Roundup, February 2019

On a monthly basis, I will be rounding up key news associated with the Data Science Platforms space for Amalgam Insights. Companies covered will include: Alteryx, Amazon, Anaconda, Cambridge Semantics, Cloudera, Databricks, Dataiku, DataRobot, Datawatch, Domino, Elastic, Google, H2O.ai, IBM, Immuta, Informatica, KNIME, MathWorks, Microsoft, Oracle, Paxata, RapidMiner, SAP, SAS, Tableau, Talend, Teradata, TIBCO, Trifacta,…

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Tom Petrocelli Clarifies How Cloud Foundry and Kubernetes Provide Different Paths to Microservices

DevOps Research Fellow Tom Petrocelli has just published a new report describing the roles that Cloud Foundry Application Runtime and Kubernetes play in supporting microservices. This report explores when each solution is appropriate and provides a set of vendors that provide resources and solutions to support the development of these open source projects.

Organizations and Vendors mentioned include: Cloud Foundry Foundation, Cloud Native Computing Foundation, Pivotal, IBM, Suse, Atos, Red Hat, Canonical, Rancher, Mesosphere, Heptio, Google, Amazon, Oracle, and Microsoft

To download this report, which has been made available at no cost until the end of February, go to https://amalgaminsights.com/product/analyst-insight-cloud-foundry-and-kubernetes-different-paths-to-microservices

CES 2019 Ramifications for Enterprise IT

Vendors and Organizations Mentioned: IBM, Ose, WindRiver, Velodyne, UV Partners, TDK Corporation, Chirp Microsystems, Qualcomm, Intel, Zigbee Alliance, Thread Group, Impossible Foods The CES (Consumer Electronics Show) is traditionally known as the center of consumer technology. Run by the CTA (Consumer Technology Association) in Las Vegas, this show brings out enormous volumes of new technology…

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Observations on the Future of Red Hat from Red Hat Analyst Day

On November 8th, 2018, Amalgam Insights analysts Tom Petrocelli and Hyoun Park attended the Red Hat Analyst Day in Boston, MA. We had the opportunity to visit Red Hat’s Boston office in the rapidly-growing Innovation District, which has become a key tech center for enterprise technology companies. In attending this event, my goal was to learn more about the Red Hat culture that is being acquired as well as to see how Red Hat was taking on the challenges of multi-cloud management.

Throughout Red Hat’s presentations throughout the day, there was a constant theme of effective cross-selling, growing deal sizes including a record 73 deals of over $1 million in the last quarter, over 600 accounts with over $1 million in business in the last year, and increased wallet share year-over-year for top clients with 24 out of 25 of the largest clients increasing spend by an average of 15%. The current health of Red Hat is undeniable, regardless of the foibles of the public market. And the consistency of Red Hat’s focus on Open Source was undeniable across infrastructure, integration, application development, IT automation, IT optimization, and partner solutions, which demonstrated how synchronized and focused the entire Red Hat executive team presenters were, including

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Is IBM’s Acquisition of Red Hat the Biggest Acquihire of All Time?

Estimated Reading Time: 11 minutes

Internally, Amalgam Insights has been discussing why IBM chose to acquire Red Hat for $34 billion dollars fairly intensely. Our key questions included:

  • Why would IBM purchase Red Hat when they’re already partners?
  • Why purchase Red Hat when the code is Open Source?
  • Why did IBM offer a whopping $34 billion, $20 billion more than IBM currently has on hand?

As a starting point, we posit that IBM’s biggest challenge is not an inability to understand its business challenges, but a fundamental consulting mindset that starts with the top on down. By this, we mean that IBM is great at identifying and finding solutions on a project-specific basis. For instance, SoftLayer, Weather Company, Bluewolf, and Promontory Financial are all relatively recent acquisitions that made sense and were mostly applauded at the time. But even as IBM makes smart investments, IBM has either forgotten or not learned the modern rules for how to launch, develop, and maintain software businesses. At a time when software is eating everything, this is a fundamental problem that IBM needs to solve.

The real question for IBM is whether IBM can manage itself as a modern software company.

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Tom Petrocelli Provides Context for IBM’s Acquisition of Red Hat

In light of yesterday’s announcement that IBM is planning to acquire Red Hat for $34 billion, we’d like to share with you some of our recent coverage and mentions of Red Hat to provide context for this gargantuan acquisition. In February, DevOps Research Fellow Tom Petrocelli explained how Red Hat’s purchase of CoreOS was transformative for…

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Data Science Platforms News Roundup, September 2018

On a monthly basis, I will be rounding up key news associated with the Data Science Platforms space for Amalgam Insights. Companies covered will include: Alteryx, Anaconda, Cambridge Semantics, Cloudera, Databricks, Dataiku, DataRobot, Datawatch, DominoElastic, H2O.ai, IBM, Immuta, Informatica, KNIME, MathWorks, Microsoft, Oracle, Paxata, RapidMiner, SAP, SAS, Tableau, Talend, Teradata, TIBCO, Trifacta, TROVE.

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