Episode 217: You’re eating your hamburger wrong - IBM, unlocking value at Compuware, microservices are dead

IBM

IBM CEO Ginni Rometty is stepping down, Arvind Krishna to take over
1 big thing: Ginni Rometty out at IBM
IBM’s Lost Decade
IBM didn’t spent much CAPEX, three others did.
Coté: what’s there to say that’s new? Cloud wasn’t executed well (I guess?) and Watson was a poor choice for such a high priority.

So, did Thoma Bravo do well here?
“could value the mainframe software provider at around $2 billion, including debt, according to people familiar with the matter.”
“Thoma Bravo took Compuware private in 2014 in a deal valued at $2.5 billion. It carved out Compuware’s application performance management division, renamed it Dynatrace Inc. and took it public last year.”
Dynatrace market cap is ~$9.1bn, was ~$6.7bn on IPO day (August 2019).
Brenon@451 on the IPO, August 2019: “Post-offering, the PE firm still owns about 70% of Dynatrace.”
And: “Dynatrace raised roughly $570m in its offering, some of which will go toward paying down its nearly $1bn in debt.”
451’s note on the 2014 going private.
So, if Thoma Bravo still owns 70%, then have ~$6.37bn worth of equity (70% of market cap of $9.1bn)…sounds… really good for laying for laying down $2.5bn, plus you might get $2bn more from the rest of Compuware.
That’s crazy, right? That Compuware was sitting on that much extra value?

This week in cloud architecture patterns

tl;dr: ¯_(ツ)_/¯
The State of Serverless
- This is just about AWS Lambda. (That said, what else is there?)
- “Among the companies with the largest infrastructure footprints, more than three quarters have adopted Lambda.”
- Lots of node.js and python use, not much Java and .Net use. Java and python were added in the same year (2015), node.js since the start in 2014.
- Coté’s summary of their analysis: Lambda used with lots of data processing, primarily with python and node, at mostly large orgs. Not used by Java devs.
Modular Monolithic Architecture, Microservices and Architectural Drivers
“Monoliths are the future,” Kelsey Hightower.
“Now that our industry is finally recovering from the mass delusion that microservices was going to be the future, it's surely time to for the even bigger delusion that serverless is what's going to provide the all-purpose salvation.” @dhh Also: his 2016 suggestion that monoliths work best for small teams, microservices for huge orgs.

Related: Reframing and Retooling for Observability, James Governor - overview of observability, in serious James mode.

JRebel Java survey:

Over 60% use Java 8 or older. Java 8 was released in March 2014, no more updates to Java 8.
Tomcat dominates app server use at 60%+. Free and works is a hell of a combination.
Spring and Spring Boot very dominate.
“It was very surprising to see how many of our survey respondents are paying for Oracle JDK. I fully expected the open source options to have a much larger market share.” - 1 big thing: Software disaster sinks Iowa caucus

Google Numbers

Security

Relevant to your interests