VMware to acquire Heptio in bid to boost adoption of Kubernetes on-premises, across multi-cloud environments

VMware Inc. announced Tuesday at VMworld 2018 Europe that it has signed a definitive agreement to acquire Heptio, a vendor in the open Kubernetes ecosystem. Heptio’s products and expertise help organizations deploy and operationalize Kubernetes. Terms were not disclosed.

Founded in 2016 by Joe Beda and Craig McLuckie, two of the creators of Kubernetes, Heptio has applied its unique insight to a growing set of products, open source projects and contributions to upstream Kubernetes. This is complemented by Heptio’s work with organizations through training, support and professional services that speed integration of Kubernetes and related technologies into the fabric of enterprise IT.

As a result, Heptio will be able to open new channels for VMware to further engage the open source community and harden upstream Kubernetes as well as support the cloud native needs of the largest enterprises in the world upon closing.

The transaction is expected to close in VMware’s fiscal Q4 2019, subject to customary closing conditions, including regulatory approvals. This acquisition is not expected to have a material impact on fiscal 2019 operating results.

VMware and Pivotal have delivered PKS, a comprehensive Kubernetes portfolio covering customer use cases for on-premises deployment and as a cloud service. The offerings enable organizations to operate Kubernetes and run their modern applications in a cloud-agnostic fashion. Upon completion of the acquisition, Heptio’s Kubernetes solution, expertise and community leadership will enhance the VMware portfolio and further accelerate enterprise adoption of Kubernetes.

“Kubernetes is emerging as an open framework for multi-cloud infrastructure that enables enterprise organizations to run modern applications,” said Paul Fazzone, senior vice president and general manager, Cloud Native Apps Business Unit, VMware. “Heptio products and services will reinforce and extend VMware’s efforts with PKS to establish Kubernetes as the de facto standard for infrastructure across clouds upon closing. We are thrilled that the Heptio team led by Craig and Joe will be joining VMware to help us guide customers as they move to a multi-cloud world.”

“The team at Heptio has been focused on Kubernetes, creating products that make it easier to manage multiple clusters across multiple clouds,” said Craig McLuckie, CEO and co-founder of Heptio. “And now we will be tapping into VMware’s cloud native resources and proven ability to execute, amplifying our impact. VMware’s interest in Heptio is a recognition that there is so much innovation happening in open source. We are jointly committed to contribute even more to the community—resources, ideas and support.”

“Heptio has an incredibly talented team and exciting portfolio of products that will expand and accelerate Pivotal and VMware’s customers’ journey with cloud native software upon closing. VMware and Pivotal have worked together to co-develop PKS which enables enterprises to more effectively build and run modern applications. We are thrilled for Heptio to join VMware and look forward to working with them to drive greater innovation together,” said Ian Andrews, senior vice president, products and marketing, Pivotal.

After the deal closes, Heptio will be joining VMware to deliver Heptio Kubernetes Subscription (HKS) for its customers. HKS is not simply a distribution or a managed service, but a complete set of products, expertise (services and validated designs) and support offerings for enterprise organizations who need to deploy and manage upstream Kubernetes. It is packaged into a subscription that makes Kubernetes easy to get started and cost-effective to scale as customers grow their deployments.  

Together with Heptio, VMware will work to advance cloud native technologies alongside the open source community with focused efforts around open source projects, as well as expand contributions to harden and extend upstream Kubernetes after closing.

The companies have a shared goal to deliver a cloud-independent Kubernetes control plane for builders, operators and consumers of modern infrastructure and applications, with consistency and conformance across any cloud, and delivering the required enterprise services and tooling needed by the modern IT organization. Once part of VMware, Heptio’s open source projects, products and services will be integrated with VMware’s Hybrid Cloud and Native Public Cloud offerings including VMware PKS.


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