Why VCS is Investing in Kubernetes

Kubernetes: From Google's Internal Tool to Industry Standard

My tenure at Google spanned six years, and within that environment, the utilization of Kubernetes for deploying microservices and containers was mandatory. It's important to note that internally, this system isn't referred to as Kubernetes, but rather as Borg. What began as a proprietary Google project has since been released as open-source software, rapidly becoming a central topic in the realms of software development and IT operations.

The Power and Complexity of Kubernetes

This rise in prominence is well-deserved. A single developer, equipped with a laptop, can now achieve results that previously demanded the efforts of a substantial engineering team. Kubernetes can feel incredibly empowering, yet its benefits of scalability and agility are accompanied by significant complexity. A thorough understanding of its inner workings remains elusive for many software developers.

A useful comparison can be made to a wristwatch. For the average user, its function is simple until a malfunction occurs. Repairing a watch necessitates specialized knowledge that most individuals lack – and Kubernetes is demonstrably more intricate than a timepiece.

Challenges with Kubernetes Adoption

How are organizations currently addressing these difficulties? Often, they aren't. Many adopt Kubernetes as part of a broader digital transformation initiative, only to discover its unexpected complexity. This frequently leads to the need for additional engineers and specialists to manage the system, potentially negating the initial benefits.

Opportunities for DevOps Startups

Consequently, a significant opportunity exists for DevOps startups to provide solutions for the various challenges within the Kubernetes ecosystem. Given the technology’s enduring relevance, any platform or tool that enhances its security, simplifies its use, and streamlines troubleshooting will be highly valued by the software development community.

Kubernetes as the New Linux

This presents a favorable investment climate for venture capitalists. I believe Kubernetes is evolving into the new Linux; 96.4% of the top million web servers operate on Linux. Similarly, Kubernetes is poised to become the standard operating system for modern, cloud-native applications. Currently, it is the most widely used open-source project within the Cloud Native Computing Foundation (CNCF), with 91% of respondents reporting its use – an increase from 78% in 2019 and 58% in 2018.

Future Growth and Innovation

Despite its proven track record and increasing adoption rates, fundamental challenges remain that will likely be addressed by third-party solutions. We can anticipate a surge in startups focused on this space as we delve deeper into five key reasons why.

The need for simplified management and operation.
Growing concerns around security vulnerabilities.
Demand for improved observability and monitoring tools.
The complexity of application deployment and scaling.
The desire for more robust automation capabilities.

Containerization: A Cornerstone of Modern Application Development

The advent of Docker fundamentally altered the landscape of application development and deployment. This container technology has significantly streamlined the process of migrating applications and workloads across diverse cloud environments.

Containers offer a level of resource isolation comparable to that of traditional hypervisors, while simultaneously unlocking substantial gains in agility, efficiency, and deployment velocity.

Kubernetes: Orchestrating Containerized Workloads

The widespread adoption of containers is invariably accompanied by the implementation of Kubernetes for orchestration purposes. Recent data from Datadog indicates that approximately 90% of all deployed containers are managed through orchestration platforms.

Employing an orchestrator automates key facets of container deployment and ongoing maintenance. This automation not only accelerates deployment cycles but also guarantees the reliable operation of applications, even when scaled to meet increasing demands.

Benefits of Container Orchestration

Faster deployment speeds are achieved through automation.
Enhanced application reliability is maintained at scale.
Improved resource utilization contributes to greater efficiency.

Organizations leveraging container orchestration can realize significant operational advantages. These benefits include reduced downtime and improved scalability, ultimately leading to a more robust and responsive application infrastructure.

Kubernetes is Experiencing Accelerated Growth

Major public cloud providers have integrated Kubernetes into their services, each offering distinct distributions. These include Google Kubernetes Engine (GKE), Amazon Elastic Kubernetes Service (EKS), and Azure Kubernetes Service (AKS).

Recently, the Kubernetes project’s Steering Committee introduced Kubernetes.dev, a new website designed to support contributors. This platform consolidates documentation, resources, and event details for project participants.

Expanding Kubernetes Certification Options

The availability of Kubernetes certifications has increased with the introduction of the Certified Kubernetes Security Specialist (CKS) program.

This new certification complements the existing Certified Kubernetes Administrator (CKA) and Certified Kubernetes Application Developer (CKAD) credentials.

Security as an Early Warning System

For organizations, maintaining robust security is paramount, and its importance is increasingly recognized by developers through the adoption of DevSecOps practices.

Significant acquisitions demonstrate this trend; Palo Alto Networks integrated Twistlock and Bridgecrew, Rapid7 acquired Alcide, and Acquasec has achieved unicorn status.

These highly successful companies have all concentrated their efforts on securing contemporary cloud infrastructures.

The Maturing Kubernetes Security Landscape

With the Kubernetes security market now reaching a point of saturation, a new generation of startups is emerging.

These companies will likely prioritize enhancements to Kubernetes performance, improved usability, and streamlined troubleshooting capabilities.

The acquisition of Pixie Labs by New Relic serves as an early indicator of this shift, and similar developments are anticipated in the near future.

This indicates a move towards not just protecting Kubernetes, but also optimizing its operation and simplifying its management.

The Digital Evolution of the Financial Sector

The extent to which a technology is embraced by the financial industry serves as a strong predictor of its future viability. Financial institutions manage extremely confidential information and require technologies that demonstrate both security and dependability before implementation.

Despite these stringent requirements, a continued trend of banks adopting cloud solutions and developing contemporary applications is evident.

Impact of Recent Events

PwC’s COVID-19 CFO Pulse Survey revealed that when financial leaders were asked to identify programs for preservation versus potential reduction, digital transformation consistently ranked among those to be protected. Customer experience initiatives and cybersecurity/data privacy measures were similarly prioritized.

Fintech and Modern Architectures

Numerous fintech companies, alongside mobile-first challenger banks, have capitalized on the advantages of modern application designs and DevOps methodologies.

These approaches are intrinsically linked to cloud native technologies, including microservices and Kubernetes.

Key Takeaways

Financial services represent a rigorous testing ground for new technologies.
Cloud adoption within the sector is demonstrably increasing.
Modern application architectures are driving innovation among fintechs.

The financial sector’s commitment to these technologies underscores their growing importance and reliability in a data-sensitive environment.

The Maturity of Open Source Technologies

The adoption of open source projects typically follows a predictable pattern, often visualized as a hype cycle. This cycle, frequently analyzed by firms like Gartner, demonstrates that significant time and multiple developmental phases are required for these projects to achieve genuine enterprise-level readiness and deliver on their initial potential.

However, upon reaching a stable plateau of productivity, open source solutions often become the foundation for further innovation. This frequently manifests as specialized technology distributions or pre-configured, readily deployable stacks designed to enhance their production capabilities.

Numerous large technology companies actively contribute to and leverage open source projects. Examples include established Linux distributions like Red Hat Enterprise Linux, Suse, and Ubuntu/Canonical. Furthermore, production-focused Apache projects, such as Kafka (supported by Confluent) and Spark (from Databricks), demonstrate this trend.

Even more specialized platforms, like Logz.io which is built on the Elastic “ELK” stack – encompassing Elasticsearch, Logstash, and Kibana – exemplify the expansion of open source ecosystems.

Kubernetes has now reached a level of maturity that is driving widespread adoption within major organizations. Consequently, innovative new tools are emerging around it, possessing the potential for substantial growth and multi-billion dollar valuations.

Currently, investing in Kubernetes represents a particularly opportune moment.