February 1, 2018

Red Hat acquires CoreOS in USD 250M deal

The acquisition seeks to enable Red Hat customers with an environment-agnostic platform to build a variety of applications.

Tech giants

Open source software company Red Hat has acquired CoreOS in a USD 250M deal in order to extend their open source product lineage. With this acquisition, Red Hat claim that their customers will be able to maneuver across every possible cloud environment in a bid to build various applications.

Red Hat explained that cloud adoption has put the onus on organizations to deliver various applications through the public, private and hybrid cloud. They further emphasized that with the acquisition of CoreOS, Red Hat will be able to provide the benefits of an on-premise environment to the cloud.

According to Red Hat, this acquisition brings in flexibility for developers with container management, something they had extended with Kubernetes in the past. They further added that with Red Hat’s Open Shift and Kubernetes’ container based solutions, accelerating cloud adoption will become much easier for clients.

Red Hat say that container based solution is the future since applications are moving to cloud and hybrid cloud environments. Explaining the same in detail, Paul Cormier, President, Products and Technologies at Red Hat commented:

Substantial advances in cloud adoption, simplification, and portability are underway. The demand for cloud continues to grow, and enterprises now anticipate that cloud architecture will dominate their spending for the next several years.

With the growing sophistication of containers, customers are looking to their application platform providers to help them use containers to transition and extend existing production applications to be useful in public or private cloud.