VMware, which offers cloud services to companies in Europe, announced that it purchased Heptio to facilitate businesses to build and operate Kubernetes-based architectures powered by container technology. Heptio was founded in Seattle in 2014 by Joe Beda and Craig McLuckie, two of the three who created Kubernetes in Google.
Along with this acquisition, Beda and McLuckie will join VMware with their teams. The details of the agreement have not been announced yet, but it is worth mentioning that Heptio has received 25 million dollars in the last B Series investment round in 2017. According to PitchBook data, Heptio reached 117-million-dollar valuation after the investment tour with Lightspeed, Accel and Madrona.
When we consider the past experiences of the founders of Heptio, we can say that VMware is about to have a serious break through on Kubernetes. In fact, the company believes that this technology will become a cornerstone for businesses to manage their business.
VMware, which has been operating for 20 years, currently serves more than 500 thousand customers worldwide and has more than 75 thousand business partners. It is unknown how many customers Heptio serves right now, but the startup is known to serve large technology companies such as Yahoo Japan.
In the meantime, the interest in open-source software, especially in the area of cloud architecture has increased. At this point, we can point to IBM's purchase of RedHat last week. IBM made the biggest software purchase in history by paying 34 billion dollars and created a movement in the cloud market.
Heptio currently provides professional services to businesses that use Kubernetes or switch to this technology. These include training and support projects, as well as building open-source projects to manage the specific characteristics of Kubernetes and the associated container sets. In fact, the VMwares purpose of this acquisition is to extend the services offered by Kubernetes. This includes computing services, on premise and hybrid storage services.
VMware, which has made 33 acquisitions in total so far, is strengthening its position in Kubernetes for the first time with the purchase of Heptio. This important acquisition will be completed in the last quarter of 2019.