VMware plus Pivotal Equals Platforms

(Editor’s Note: This week, Tom Petrocelli and Hyoun Park will be blogging and tweeting on key topics at VMworld at a time when multi-cloud management is a key issue for IT departments and Dell is spending billions of dollars. Please follow our blog and our twitter accounts TomPetrocelli, Hyounpark, and AmalgamInsights for more details this week as we cover VMworld!)

On August 22, 2019, VMware announced the acquisition of Pivotal. The term “acquisition” seems a little weird here since both are partly owned by Dell. It’s a bit like Dell buying Dell. Strangeness aside, this is a combination that makes a lot of sense.

For nearly eight years now, the concept of a microservices architecture has been taking shape. Microservices is an architectural idea wherein applications are broken up into many, small, bits of code – or services – that provide a limited set of functions and operate independently. Applications are assembled Lego-like, from component microservices. The advantages of microservices are that different parts of a system can evolve independently, updates are less disruptive, and systems become more resilient because system components are less likely to harm each other. The primary vehicle for microservices are containers (which I’ve covered in my Market Guide: Seven Decision Points When Considering Containers), that are deployed in clusters to enhance resiliency and more easily scale up resources.

The Kubernetes open-source software has emerged as the major orchestrator for containers and provides a stable base to build microservice platforms. These platforms must deploy not only the code that represents the business logic, but a set of system services, such as network, tracing, logging, and storage, as well. Container cluster platforms are, by nature, complex assortments of many moving parts – hard to build and hard to maintain.

The big problem has been that most container technology has been open-source and deployed piecemeal, leaving forward-looking companies to assemble their own container cluster microservices platforms. Building out and then maintaining these DIY platforms requires continued investment in people and other resources. Most companies either can’t afford or are unwilling to make investments in this amount of engineering talent and training. Subsequently, there are a lot of companies that have been left out of the container platform game.

The big change has been in the emergence of commercial platforms (many of which were discussed in my SmartList Market Guide on Service Mesh and Building Out Microservices Networking), based on open-source projects, that bring to IT everything it needs to deploy container-based microservices. All the cloud companies, especially Google, which was the original home of Kubernetes, and open-source software vendors such as Red Hat (recently acquired by IBM) with their OpenShift platform, have some form of Kubernetes-based platform. There may be as many as two dozen commercial platforms based on Kubernetes today.

This brings us to VMware and Pivotal. Both companies are in the platform business. VMware is still the dominant player in Virtual Machine (VM) hypervisors, which underpin most systems today, and are marketing a Kubernetes distribution. They also recently purchased Bitnami, a company that makes technology for bundling containers for deployment. At the time, I said:

“This is VMware doubling down on software for microservices and container clusters. Prima facie, it looks like a good move.”

Pivotal markets a Kubernetes distribution as well but also one of the major vendors for Cloud Foundry, another platform that runs containers, VMs, and now Kubernetes (which I discuss in my Analyst Insight: Cloud Foundry and Kubernetes: Different Paths to Microservices). The Pivotal portfolio also includes Spring Boot, one of the primary frameworks for building microservices in Java, and an extensive Continuous Integration/Continuous Deployment capability based on BOSH (part of Cloud Foundry), Concourse, and other open source tools.

Taken together, VMware and Pivotal offer a variety of platforms for newer microservices and legacy VM architectures that will fit the needs of a big swatch of large enterprises. This will give them both reach and depth in large enterprise companies and allow their sales teams to sell whichever platform a customer needs at the moment while providing a path to newer architectures. From a product portfolio perspective, VMware plus Pivotal is a massive platform play that will help them to compete more effectively against the likes of IBM/Red Hat or the big cloud vendors.

On their own, neither VMWare or Pivotal had the capacity to compete against Red Hat OpenShift, especially now that that Red Hat has access to IBM’s customer base and sales force. Together they will have a full range of technology to bring to bear as the Fortune 500 moves into microservices. The older architectures are also likely to remain in place either because of legacy reasons or because they just fit the applications they serve. VMware/Pivotal will be in a position to service those companies as well.

VMware could easily have decided to pick up any number of Kubernetes distribution companies such as Rancher or Platform9. None of them would have provided the wide range of platform choices that Pivotal brings to the table. And besides, this keeps it all in the Dell family.

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…

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Market Milestone: Tidelift Raises $25 Million B Round to Improve Open Source Business Models


Key Stakeholders: CIO, Enterprise Strategists, Enterprise Architects, Software Asset Managers, Software Developers, Open Source Maintainers

Why It Matters: Open Source is an increasingly important part of the enterprise software portfolio and yet the support, maintenance, and contributions to open source projects are often haphazard, risky, and poorly funded. Tidelift provides a channel to allow organizations and enterprises to effectively fund the founders and maintainers of strategically important open source projects.

Key Takeaway: With this round of funding, Tidelift is well positioned to continue supporting the mission of supporting open source developers through the Tidelift Subscription of security, maintenance, and licensing commitments, through 2019 and beyond.

On January 7, 2019, Tidelift, an Open Source subscription and maintenance company, raised a $25 million Series B round co-led by General Catalyst, Foundry Group, and former Red Hat executive Matthew Szulik. This round came only seven months after an initial $15 million A round and will be used to help Tidelift continue to support Open Source developers, creators, and maintainers seeking financial support so that they can focus on the Open Source projects and packages that they work on with a professional level of support.

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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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Autumnal Tech Advice from Amalgam Insights

Amalgam Insights has been busy the past month in exploring a variety of trends across IT subscriptions, DevOps, Brain Science, and Data Science. In case you’ve missed it, check out our seasonal newsletter and get educated on the key trends that are augmenting our use of technology including:

  • For IT budget and spend management, traditional asset and spend management approaches are falling short
  • Artificial Intelligence (AI) is being treated as a ubiquitous technology
  • Open Source is now a foundation for enterprise IT
  • Learning and Development suffers from the challenge of taking on cognitive bias.

Catch up with Amalgam Insights’ analysts at work this Fall and find out how to:

And to subscribe to our newsletter, please sign up here.

Hanging out with the Cool Oracle Kids

When I wrote my last article on open source at Oracle, I got some feedback. Much of it was along the lines are “Have you hit your head on something hard recently?” or “You must be living in an alternate dimension.” While the obvious answer to both is “perhaps…” it has become increasingly obvious that…

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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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Oracle Delivers a FOSS Surprise

An unfortunate side effect of being an industry analyst is that it is easy to become jaded. There is a tendency to fall back into stereotypes about technology and companies. Add to this nearly 35 years in computer technology and it would surprise no one to hear an analyst say, “Been there, done that, got…

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Google Grants $9 Million in Google Cloud Platform Credits to Kubernetes Project

Tom Petrocelli, Amalgam Insights Research Fellow
Kubernetes has, in the span of a few short years, become the de facto orchestration software for containers. As few as two years ago there were more than a half-dozen orchestration tools vying for the top spot and now there is only Kubernetes. Even the Linux Foundation’s other orchestrator project, CloudFoundry Diego, is starting to give way to Kubernetes. Part of the success of Kubernetes can be attributed to the support of Google. Kubernetes emerged out of Google and they have continued to bolster the project even as it fell under the auspices of the Linux Foundation’s CNCF.

On August 29, 2018, Google announced that it is giving $9M in Google Cloud Platform (GCP) credit to the CNCF Kubernetes project. This is being hailed by both Google and the CNCF as an announcement of major support. $9M is a lot of money, even if it is credits. However, let’s unpack this announcement a bit more and see what it really means.

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Microsoft Loves Linux and FOSS Because of Developers

Tom Petrocelli, Amalgam Insights Research Fellow
For much of the past 30 years, Microsoft was famous for its hostility toward Free and Open Source Software (FOSS). They reserved special disdain for Linux, the Unix-like operating system that first emerged in the 1990s. Linux arrived on the scene just as Microsoft was beginning to batter Unix with Windows NT. The Microsoft leadership at the time, especially Steve Ballmer, viewed Linux as an existential threat. They approached Linux with an “us versus them” mentality that was, at times, rabid.

It’s not news that times have changed and Microsoft with it. Instead of looking to destroy Linux and FOSS, Microsoft CEO Satya Nadella has embraced it.

Microsoft has begun to meld with the FOSS community, creating Linux-Windows combinations that were unthinkable in the Ballmer era.

In just the past few years Microsoft has:

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