Thursday, 09 July 2020 08:24

SUSE acquires Rancher to boost position in container market

SUSE acquires Rancher to boost position in container market Image by Clker-Free-Vector-Images from Pixabay

Germany-based open source company SUSE has acquired enterprise Kubernetes management vendor Rancher Labs in order to strengthen its position in the container market.

SUSE, which is owned by Swedish growth investor EQT, said the acquisition would create the largest independent organisation dedicated to powering digital transformation with open source and cloud native solutions.

The company's emphasis on container technology has been underlined to iTWire in the past by Peter Lees, its chief technologist in the Asia-Pacific.

Rancher's chief executive and co-founder Sheng Lian has told iTWire in the past that his company continued to be the de facto choice for enterprises looking to run containers and Kubernetes in production.

Given that, the deal is not surprising. SUSE chief executive Melissa Di Donato said she anticipated things would be finalised before the end of October, adding that more details on product integration plans and partner and community programs would be announced after that.

"By combining Rancher’s strength in Containers with our strengths in Enterprise Linux, Edge Computing, and AI, we will redefine and jointly disrupt the market to help customers accelerate their digital transformation journeys with true open source solutions," she said.

"There is no doubt in my mind, with our first acquisition as an independent company, we are paving the way for two leading companies with so many complementary strengths to become even stronger together."

Di Donato said the deal would mean a much broader product portfolio. "Rancher’s 100% open source solutions means we will continue to meet our customers where they are on their digital transformation journey – defined by what success looks like to them – while continuing our promise of no vendor lock-in," she added.

In a blog post, Liang said he would lead the team after the acquisition. " You can expect an accelerated pace of product innovation. And given SUSE’s 28-year history building a highly successful open source business, our commitment to open source will remain strong," he added.

"The acquisition is great for Rancher customers and partners," Liang said. "At Rancher we take pride in our industry-leading customer satisfaction with an NPS score of over 80.

"SUSE’s global reach and enterprise focus will further strengthen our commitment to customers who rely on Rancher to power mission-critical workloads. Likewise, SUSE’s strong ecosystem will greatly accelerate Rancher’s on-going efforts to transform how organisations adopt cloud native technology."

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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