Brief: The billion-dollar open source company Red Hat is acquiring an open source startup CoreOS for $250 million. The move will further strengthen Red Hat’s position in the enterprise world that has been fixated on containerization lately.
“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. 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.”
CoreOS is an open source operating system built on top of Linux kernel exclusively for automation and software development. CoreOS has been one of the most major contributors to the development of open source project Kubernetes, the latest buzzword in the IT industry these days.
CoreOS was founded in 2013 and had raised $50 million in fundings from various venture capitalists since then. While CoreOS is open source, it’s commercial counterpart is known as Tectonic. The container management system boasts of clients like Verizon and eBay.
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