Mirantis' Docker Enterprise acquisition a lifeline as industry shifts to Kubernetes

Dive Brief:

Container-orchestration company Mirantis acquired Docker Inc.'s enterprise platform along with its 750 customers and partnerships, the company announced Wednesday. Mirantis will also onboard Docker Enterprise employees. Terms of the deal were not disclosed.
Docker Enterprise will help Mirantis build on its Kubernetes as a service offerings as the company works to create a seamless developer experience across platforms, from cloud to on-prem, according to the announcement.
In light of the acquisition, Docker restructured its business and raised $35 million in new funding from Benchmark Capital and Insight Partners, the company announced Wednesday. It also appointed a new CEO, Scott Johnston, as the company shifts focus to developer workflows.

Dive Insight:

It's a familiar tale in enterprise technology: A developer darling gets absorbed as it tries to compete in an area where large-scale vendors have increased investment. Though a pioneer in the container and orchestration space, Docker saw stiff competition from companies including VMware and Red Hat.

Mirantis bills its new consolidated platform as a "compelling alternative to lock-in" options from VMware and Red Hat.

Industry has seen similar intellectual property acquisitions before, leaving the original company to focus on its streamlined portfolio.

This was the case when Broadcom acquired Symantec Corporation's enterprise security business for $10.7 billion in August. Symantec has since renamed itself to NortonLifeLock, which calls back to its leading consumer brand.

Last year, Slack too purchased the IP of Atlassian's communication platform, leaving the company to focus on its project management offerings.

For Docker fans, it's the end of an era. Container services was founded by developers six years ago as an open source project that took off, according to Tony Iams, research VP at Gartner, in an interview with CIO Dive. Industry is now retooling, standardizing on container technology and orchestration on Kubernetes.

The service became so popular it ran away from the original creators, he said. Docker was "quickly overshadowed by the market they helped create."

The Docker Enterprise acquisition is a lifeline for Mirantis. The company was a leading player in the OpenStack space, but the industry's attention has shifted to Kubernetes. "These are two companies that are trying to join forces to stay relevant in the market," Iams said.