RedHat to acquire Cloud Security Startup CoreOS for $250 million

America Multinational Software Company RedHat which is also into cloud business is soon going to acquire cloud security startup CoreOS for $250 million. Industry analysts say that the acquisition will help the North Carolina based firm enable its customers to build an application and deploy them in any environment with the litheness afforded by open source.

RedHat announced the deal on Tuesday this week and said that the purchase will help its customers move data and applications to hybrid and multi-cloud environments built around the existing Kubernetes and the container based portfolios that majorly comprise of Red Hat OpenShift.

“We believe that the acquisition will make Red Hat as a cornerstone of the hybrid cloud and modern app deployments”, said Paul Cormier, President of Product Technologies, Red Hat.

Coming to CoreOS, it’s just a 4 years old startup founded in July 2013. The company is known to offer enterprise solutions to a large number of organizations including eBay, Salesforce, Veritas, Verizon and other companies like Ticketmaster.

CoreOS is known to have started the theory of containers long before the conception of Kubernetes or Kubernotes was capitalized by Google. In fact, it is now just behind the web search giant in open sources business as it has invested in more than 100 open source projects other than Kubernetes, for which it is the 2nd largest contributor.

It all began with the creation of Container Linux, a lightweight OS specifically created for the world of containers which is now pinned as the underlying technology behind the distributed systems of Kubernetes and the less known Docker Container Ecosystem.

Like CoreOS, RedHat is a recognized leader in open source and so let’s hope that the latest acquisition will help the latter accelerate its innovation to provide greater value to all its respective customers.

Note- San Francisco based cloud security startup CoreOS has announced that it will honor all existing customer engagements even after its acquisition by Red Hat. Furthermore, in the next few days, all the customers will receive a direct email from the company stating the details of the deal and the related contact information if they have any further questions.

Naveen Goud
Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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