Things Docker can/does charge for and could do very well with.
- Support: Businesses are happy to pay maintenance contracts for fixed LTS versions of Docker which is their EE product.
- Kube: Docker has pivoted their UCP product into a turnkey on-prem Kubernetes distribution. Plenty of room in that space to grow.
- Registry; You wouldn't run random images from DockerHub in production, right? Similar to Red Hat's product in this space there's a lot of money to be made in having officially supported images. Images with a pedigree, aduit trail, CVE reporting, yada yada. Partner with Canonical and since it's way easier to do this when you already have distro maintainers and you have a solid RH competitor that devs will like more.
- Security: Audit your images that have been sitting around and not updated in ages.
- Hosting: They'll be one of many but there's plenty of space in providing some ergonomics compared to Google/AWS's offerings.
There is plenty of ways Docker Inc. can create and capture value in this space. Their unique value is that whatever product they make, the world will check it out... They "just" need to make it good and figure out the business behind it.
Those are more like enterprise checklist items than real needs...
If it weren't so, we'd all just sell our hot new WhateverAsAService to banks straight away, right?
Mongo equally so (JSON in PostgreSQL). These valuations are fantasy.
False dichotomy though. You either acknowledge that getting a vendor to do that for you also implies competent staff or you acknowledge that hiring "competent staff" is not like flipping a switch and requires training, ramp-up time, few wrong hires, getting managers to guide the teams, etc
I'm not sure which way is better, but I don't think the industry has decided either :)
https://techcrunch.com/2018/10/15/docker-has-raised-92-milli...
"Red Hat" as in RHEL specifically, or are you meaning any of the family (eg CentOS)?
Asking because I've not hit any problems using Docker CE with CentOS 7. Well, aside from general bugs (etc). But nothing seems to force the use of EE instead of CE.
Could be any of the FAANG companies but I posit Microsoft since they noticeably try to make Docker on Windows a seamless experience and also push Docker within their cloud offerings to modernize legacy apps towards Azure. They've already purchased a large community-oriented company (GitHub) and have acquired companies at a surprisingly high price (LinkedIn).
I see the thought process but disagree with the premise that they need to charge for their container technology directly.
For example, GitHub does not charge for git, but instead for the convenient layers that they add on top of it.
Another example is that Google does not charge for Kubernetes but you can buy support which every enterprise company wants and since GKE happens to be the most convenient way to get a K8s cluster rolling in the cloud (for most circumstances) and also now on a box now with GKE On-Prem, many will choose that path so Google still gets their money, just from product / services / support on top of the free core.
They can also monetize the "fallout paths" — turns out you're in over your head running all of that K8s stuff yourself? Come pay us more and use our K8s PaaS instead! Not sure if they actually have one yet, but consider something like GKE Serverless here.
Enterprise features and support around running containers in production are worth a lot of money.
Docker can continue charging for all of its porcelain layers on top like Docker Hub and Docker Enterprise and make plenty of money off of big fish.
They could also monetize by being acquired by Microsoft, Google, or Amazon.
2. Google still makes the lion's share of it's money from search/ads. Google Compute is struggling and being subsidized by search/ads.
IMHO, Docker's only exit strategy is to sell. They don't have enough time left to grow an organic business. Silicon Valley money always wants paid back, sooner rather than later.
The layoffs and new CFO at Docker, IMHO, are all about cleaning up the finances so that a sale is possible at a good price.
Their last round of investment barely averted a down round. The value bump was minimal and the investors are mostly from a bank in Brazil that likely doesn't understand exactly what they bought into (a lot of uneducated money out there right now because there is no place to put it). None of the original investors participated which shows they don't believe in the company anymore.
Their most valuable asset is Windows support. Hence, the most likely aquirerer would be Microsoft. I'll bet a paycheck they sell for somewhere between 1.5B and 2.5B. Keep this thread for posterity :-)
It's painfully obvious to anybody that has been in this game for a while...
(opinions and analysis my own)
2 - That seems fine and besides the point... Google is massive. Google Cloud (excluding the half that comes from G Suite) brings in $2B per year in revenue. That might only be a few percent of Google's overall, but a few percent of $80B is still a massive number.
Docker itself is in trouble because they got the wrong use case from the start. They completely missed out about orchestration.
Containerization requires to both have containers (docker images) and deploy them on fleet of servers (kubernetes orchestration). The later is where the value is.
That's actually how they started -- they were a PaaS called dotCloud before they were Docker!
This was before the term "orchestration" became common, but the point was that they were running apps in multiple languages. They were like Heroku except they supported more than one language (back when Heroku was basically Rails apps).
They didn't get much traction and had to pivot to Docker. I think the underlying reason is that writing a PaaS / distributed OS like Kubernetes is extremely difficult, and they were spread too thin. They didn't really nail a single use case like Heroku nailed Rails apps. They were trying to run everything and ended up running nothing.
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This "rhyming" of history makes me smile, and makes me think how important timing is. dotCloud was the right product, done too early and done poorly. Docker was arugably the wrong product at the right time! I say "wrong" because I never thought it was a sustainable product or business, but it did come about at a time when people really needed a quick and dirty solution.
And now the surrounding ecosystem has changed drastically and I agree with the OP that Docker may be left out of it.
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Another thing I find funny is that App Engine was already "serverless" 10+ years ago... you wrote Python apps and uploaded them as .zip files (web or batch processing). You didn't manage virtual machines. So somehow they were also a bit early, and maybe the product was lacking in some ways as a result.
I'm not sure that dotcloud and App Engine though were the right products though.
They have shown that a fully managed cloud solution is not the answer. Barely no company could use it, let alone migrate existing software to a whole new platform. It's limited to a very small niche.
Docker and Kubernetes are standalone products. Companies can use them internally and make it work with what they already have.
However I don't see how Docker Inc can be substainable in the long run.
What's most likely to happen is Docker being acqui-hired by someone like Microsoft.
1. Doesn't grow revenue at the speeds they want returns 2. Isn't "free marketing" (dear God I have seen this one too many times, CTOs even write it out in blogs sometimes) 3. Only really makes sense when you get out more than you put in, aka is community drive . Community driven open source is really the only profitable open source.
Personally, I have to agree with the author and think it's difficult to see a bright future for the company that lives up to its $1.3B valuation.