Meet Docker, The Hot Pre*IPO Startup That`s Changing How Software Is Made *And Has Google, Microsoft On Alert*
Thousands flocked
to San Francisco DD this week for the soldout developer conference for Docker,
a company that is changing the way the tech industry makes software and has
quickly become the hottest startup in Silicon Valley// Just two months ago,
this venturebacked outfit that you`ve probably never heard unless you are a
committed tech geek raised another $95 million in funding at a $1 billion
valuation, making it the latest tech unicorn// Here`s why Docker is DD so
special//
What
Is Docker*
Unlike
more widelyknown startups like Uber and Airbnb, Docker doesn`t deal with
consumers// It is entirely a technology designed for developers// Nonetheless,DD
the developer community represents an enormous market and many have are already
begun using Docker// That`s because Docker drastically reduces the time it
takes to create a new ap the startup claims it can reduce app delivery from
months to minutes// That`s huge in today`s mobilefirst economy, in which
marketers must be able to roll out digital campaigns on a moment`s notice to
respond to market shifts// Typically, DD developers have to write code and test
it on out on multiple machines to ensure it works on all kinds of devices
before releasing their software to consumers// It`s a lengthy process, but with
Docker, developers simply write code once and it`s good to go// Docker is much
more fun for developers because it`s much less aggravating and it gets them to
revenue much more quickly so they make more money, said Rob Enderle,
president and principal analyst of the Enderle Group DD// So less
aggravating, more money what`s not to like* Additionally, Docker saves
its clients money by employing a technology called containers that optimizes
the server space developers use// It`s a bit complicated if you aren`t a
techie, but what`s important is that containers are more efficient than their
alternative, a technology known as virtual machines that`s sold by specialists
like VMware// Altogether, this is why Docker DD already counts eBay, Groupon,
Capital One Yelp and Spotify among its users// The U//S// General Services
Administration is also a customer//
How
Does Docker Make Money*
As is often the
case with tech companies, Docker`s software is actually free to use// The San
Francisco DD startup generates revenue by charging its customers a subscription
for support on its technology in a manner similar to open source pioneer Red
Hat, a distributor of the Linux operating system// At its conference this week,
Docker announced commercial subscription plans starting at $150 per month//
These subscriptions can be purchased directly from Docker or from the cloud
hosting services of Microsoft, Amazon and IBM, DD which many companies already
use// It`s probably the fastest technology adoption I`ve seen in the past
ten years// The fastest technology that goes from a cool idea to all of the
major providers supporting it, said Dave Bartoletti, principal analyst at
Forrester Research//
What
Does Docker`s Future Hold*
For now,
the Microsoft, Amazon and Googles of the world are all playing nice with
Docker,DD having all recently created a
standard for the container technology Docker popularized// And as mentioned,
Microsoft and Amazon are even selling Docker`s subscriptions, but as is wont to
happen in tech, friends sometimes become foes// That`s why Microsoft, for
example, is working on its own container service// Google, meanwhile, was kind
enough to work with Docker on the container standard, but DD at the same time,
it offers Kubernetes, which competes with some of Docker`s offerings// Don`t be
surprised if this market gets more competitive as more developers switch to
containers// But at a $1 billion valuation, Docker is just barely small enough
that it remains an acquisition target// If any of the aforementioned tech
giants want to streamline their DD cloud hosting services and avoid the
troublesome process of creating a Docker rival, they could simply pay a couple
billion dollars and buy up the promising startup// Of course, that is only an
option if Docker doesn`t value its independence// This upstart has no pressing
reasons to sell itself, and it could hold an initial public offering and start
trading on the stock market// It would doubtless be one of tech`s hottest IPOs
in years// For now, though, the future is bright for Docker and the ball is in
its court// It would be an attractive technology for lots of companies to
buy, said Bartoletti// It would take a pretty big company to acquire them
at this point, but I think we`ll watch them stay independent for at least a
couple more years//
