#16 – The Open Source Billions

Christmas has arrived early for the Kubernetes world

Perhaps everyone has already noticed how hot the Kubernetes world and its ecosystem are. It is the global warming of open source.

To start, Hashicorp, the company behind products like Vault, Consul, Terraform, and Nomad, received an investment of $100M at a valuation of $1.9B.

At a slightly higher value, we had the acquisition of RedHat by IBM for $34B. Shares worth around $117 were bought for $190, greatly raising the company's value, confirming the warmth in the Kubernetes market and its status as a framework for multi-cloud architectures.

○ Which side will the cultural tug-of-war lean towards? Will this union lead IBM more in the direction of open source, just as is happening with Microsoft, or Red Hat towards a more patent-driven culture?

○ Who will gain the most from this acquisition? 
○ Will we have another player taking over the space left by Red Hat in the open source market?

We also discussed the launch of Github Actions, showing the first signs of intersection on the Azure-Github roadmap. 

Continuing on the theme of "buys", we have VMWare buying Heptio.
The sale value was not disclosed, but speaking with some investors, we estimate 3x as a multiple of the last valuation — something around $350M. Congratulations to the Heptio team who, over these past 2 years, has contributed greatly to the community.

We believe that the purchase of Red Hat influenced the closing of this deal. Who knows, we might still have another acquisition announcement by Kubecon, we'll see.

And speaking of Kubecon, if you are going to this year's edition, Sched is an option for you to get organized and not miss the talks and topics that will influence the coming year. We will be there, so send us a Tweet and, who knows, we might record a Kubicast with you!

We have reached the recommendations of the week, which almost turned into another kubicast :D

Guilherme: Brave Browser — The browser that does not spam you, protects your privacy, and innovates by using blockchain to pay content creators.

João Brito: Hilla Doces — Go there and talk to Davi!

Diogo Goebel: Life After Google by George Gilder — Book and Interview — And he also recommended the Podcast series The Economist — Secret History of the Future.

The Kubicast is a production of Getup, the only Brazilian company 100% focused and specialized in Kubernetes. All episodes of the podcast are on Getup's website and major digital audio platforms. Some of them are recorded on YT.