SUSE acquires Kubernetes-startup Rancher Labs

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SUSE acquires the Kubernetes-startup Rancher Labs to further expand its portfolio of Linux business solutions and cloud tools. The company wants to become a serious competitor to Red Hat.

The acquisition provides the open-source giant with a software platform that helps companies more easily set up and manage large Kubernetes environments. Rancher Labs provides the necessary software platform as well as support and other business services.

Combination

The combination of the services of SUSE and Rancher Labs also creates one of the largest providers of an open-source cloud-based tooling ecosystem. SUSE provides its open-source edition of its Linux business distribution and Rancher Labs its software platform under a free licensing model. In addition, the acquisition allows Rancher Labs to further develop its Kubernetes platform at a faster pace.

After the acquisition, SUSE will offer Rancher Labs’ products through its global partner network. According to experts, this should lead to more turnover for the company.

Competition for Red Hat

The acquisition of Rancher Labs and its software platform should lead to strong competition for Red Hat. Particularly for everything related to Kubernetes. Red Hat is currently very active with its RHEL distribution and Kubernetes platform Red Hat OpenShift.

SUSE is expected to pay between 600 million dollars and 700 million dollars (530 million euros up to 618 million euros) for Rancher Labs. The acquisition should be completed in October.