Mirantis, a B2B cloud computing services company, has been busy making additions to its best in class Kubernetes lineup. Most recently, Mirantes announced their acquisition of Lens; a desktop application described as a “Kubernetes-integrated development environment”. This marks the third of such acquisitions for Mirantis in under a year; previously the company acquired Kontena & Docker Enterprise to build up their open source software offerings.
Why this transaction?
The York IE team chose this as our Transaction of the Week (TOW) to showcase the shift in focus for enterprise software. Companies like Mirantis are building developer friendly solutions with the hopes of simplifying workflows. For Mirantis, and many others, the focus remains on helping enterprises build cloud-native applications off the back of open-source software. As organizations continue to migrate away from their legacy systems, cloud segments such as IaaS & PaaS solutions will experience undeniable growth. With their latest acquisition, Mirantis will leverage Lens to dramatically increase the ease of use for developers building applications on Kubernetes.
A Deeper Dive Into Open-Source Software
Most legacy systems have far surpassed their usefulness and the transition to cloud infrastructure is imminent. Not only is this migration to the cloud unavoidable but as our data shows, this trend has been following a bullish trajectory since 2010:
The graph above shows funding rounds for open-source related startups since 2010. As you can see, funding rounds have been following an upward trend reaching their peak of nearly 325 rounds in 2018 alone. This data proves that not only is cloud infrastructure becoming more popular but the focus has now shifted to developer centric software. Taking a look at funding related to these rounds we can see that starting in 2017, capital deployed to open-source related startups passed $2B total:
As with the previous graph, open-source funding rounds have followed an upward trajectory, once again reaching a peak in 2018. This data points to the increased number of open-source related startups as well as the number of capital intensive post-seed rounds. As this trend continues, you can expect to see companies like Mirantis competing for market share with their own version of developer friendly solutions built off open-source software.