December 20, 2017

The Commodity Container Story

TL; DR: The focus maybe on AWS EKS, the managed Kubernetes offering. The future is with AWS Fargate and similar services

The rapid commoditization of components is a well understood concept in economic theory. What was complex often becomes simple with abstraction. Substitution between vendors becomes easy, and you see increased transparency in product features across both offerings and pricing. Vendors can continue to innovate on a technology level beneath the abstraction, but the longer-term economics now require you to have a volume business, with its inherent structural advantages, to grow your overall margins.

With the announcement of the Amazon Elastic Container Service for Kubernetes (EKS), Kubernetes has become a commodity across the public cloud ecosystem. AmazonGoogleMicrosoft and IBM all now have a managed Kubernetes offering of some form. More significantly, in terms of world-wide growth, Alibaba have quietlycertified their offering under the CNCF certification program, and we anticipate that their extensive involvement with the CNCF will only serve to grow their Kubernetes install base.

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