Server Side: IBM, Apache and CNCF
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Take Your Time With IBM Stock as it Digests its Behemoth Linux Maker Deal
Prior to the Red Heat deal, IBM was treading water. The company released earnings on July 17. For the second quarter of 2019, revenue was down year-over-year. Sales were $19.1 billion, down from $20 billion in the prior year’s quarter. The company’s Cloud and Business Services unit saw slight growth (5% and 3% YoY, respectively), but declines in the Global Technology Services and Systems units countered this improvement. Despite this slight revenue slip, IBM managed to keep quarterly operating income steady at ~$2.8 billion.
The Red Hat deal adds a variety of growth catalysts to the International Business Machines story. For one thing, the acquisition makes IBM a bigger player in the $1 trillion cloud computing space. The deal is expected to accelerate revenue growth and improve gross margins. The deal is also very synergistic. IBM can now sell Red Hat’s suite of solutions to their existing customer base. With IBM’s global reach, the company could expand Red Hat’s business better than Red Hat would have done as an independent company.
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Apache Software Foundation's Code-Base Valued At $20 Billion USD
The Apache Software Foundation has published their 2019 fiscal year report highlighting their more than 350 open-source projects/initiatives and this also marks their 20th anniversary.
The Apache Software Foundation's 2019 report values their code-base at more than $20 billion USD using the COCOMO 2 model for estimating. Though for their 2019 fiscal year the foundation turned a profit of $585k USD thanks to sponsors. There are more than 190 million lines of code within Apache repositories.
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9 open source cloud native projects to consider
I mean, just look at that! And this is just a start. Just as NodeJS’s creation sparked the explosion of endless JavaScript tools, the popularity of container technology started the exponential growth of cloud-native applications.
The good news is that there are several organizations that oversee and connect these dots together. One is the Open Containers Initiative (OCI), which is a lightweight, open governance structure (or project), "formed under the auspices of the Linux Foundation for the express purpose of creating open industry standards around container formats and runtime." The other is the CNCF, "an open source software foundation dedicated to making cloud native computing universal and sustainable."
In addition to building a community around cloud-native applications generally, CNCF also helps projects set up structured governance around their cloud-native applications. CNCF created the concept of maturity levels—Sandbox, Incubating, or Graduated—which correspond to the Innovators, Early Adopters, and Early Majority tiers on the diagram below.
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