Kubernetes Shadow Hangs Over Docker Financial Squeeze

Docker Inc. is reportedly looking to secure additional funding to support its ongoing evolution and joins a list of one-time container-based powerhouses that have succumbed to the growing power of Kubernetes.

CNBC reported over the weekend that Docker Inc. CEO Rob Bearden circulated a company-wide email stating that the company has been “engaging with investors to secure more financing to continue to execute on our strategy.”

“We are currently in active negotiations with two investors and are working through final terms,” the email stated. “We should be able to provide you a more complete update within the next couple of weeks.”

Bearden added that the company remains focused on its next “Barracuda” release.

Docker Inc. has not yet responded for comment on the report, though Bearden did end the email with: “I ask that you please keep this confidential and internal only. We will make a more public statement when all of the processes have been finalized.”

Docker Inc. has raised nearly $273 million in funding since its inception in 2010. The company’s last funding round garnered $91.9 million in late 2017.

While reasons for the Kubernetes was not mentioned specifically in the email, Docker Inc.’s reported difficulties align with a recent decision by Containership to shutter its operations due to capitalize on the new Kubernetes landscape. This included a failed attempt to pivot its Containership Cloud operations toward a more Kubernetes-focused platform.

“Ultimately, we came up short,” wrote Containership Founder and CTO Norman Joyner in a blog post. “It has been nearly a year and a half since the Containership Cloud re-platform, and we have failed to monetize Containership Cloud in such a way that we could build a sustainable business.”

Docker’s Leadership, Financial Struggles

Bearden was named Docker Inc. CEO in May, making him the company’s fourth leader since 2017. He previously served as CEO of Hortonworks before it was acquired by rival Cloudera last year. Bearden moved to Cloudera’s board after the deal, where he maintains a position today.

Docker Inc. was foundational in the development of the current container ecosystem. The firm’s container platform, which is known as simply Docker, remains the basis for many container deployments today. And the company’s homegrown Swarm container orchestration platform at one point dominated that space.

That success nearly paid off as Microsoft was reportedly at one time looking to buy Docker Inc. for a substantial $4 billion. Others were also reportedly interested in a purchase, including Red Hat and VMware.

While a deal has yet to occur, Docker Inc. has made a go at it with the money-making aspect of its business centered on its EE framework. Docker EE was launched in 2017 as a company-supported platform targeted at organizations looking to offer container-based applications.

Just before Bearden was hired, Docker Inc. released a major update to its flagship Enterprise platform. The update included more customization, easier containerized application development, and its own version of a hosted Kubernetes service dubbed the Docker Kubernetes Service (DKS).

That update built on an even more thorough 2.0 launch in 2017 that was the company’s first direct support for Kubernetes into the platform to run alongside Swarm. Docker EE had previously allowed customers to use Kubernetes as their container orchestrator, but it was not part of the embedded code.

Docker Inc. the previous year finally capitulated to customer demand by announcing plans to add native Kubernetes support alongside Swarm inside of its EE framework.[Source]-https://www.sdxcentral.com/articles/news/kubernetes-shadow-hangs-over-docker-financial-squeeze/2019/10/

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