IHS: Red Hat Container Strategy Is Paying Off

Total container software market revenue will grow at a 30 percent compound annual growth rate from 2018 to 2023, surpassing $1.6 billion, as enterprise and telco adoption ramps, according to the latest IHS Markit Technology Multi-Tenant Server Software Market Tracker.

The growing opportunity [for containers] is proving appealing to software vendors that seek to prove that their commercially supported Kubernetes-based offerings are better than the rest. So far, Red Hat stands out as the market leader with 44 percent market share. The company is reaping the fruit of its hands-on sales strategy, where they consult and train enterprise developers first and then monetize once the enterprise deploys containers in production.

"Automation features hold the key to container growth," said Vladimir Galabov, principal analyst at IHS Markit. "Hyperscale cloud service providers were the first to adopt container software in their data centers (DCs) and they already run container operating systems in virtual machines in more than one-third of their multi-tenant servers. In comparison, telcos and enterprises run container software on only 8 percent of their multi-tenant servers today."

The lag in deployment is driven by the complexity of managing Kubernetes across multiple teams within the organization, as well as across multiple clouds.

"This is why enterprises and telcos require higher levels of container management automation, cluster management and policy setting features than what was available in 2018," Galabov said.

Major market share developments in the first quarter of 2019 include:

IHS Markit's Multi-Tenant Server Software Market Tracker

IHS Markit