Nginx Inc. and F5 Network jointly announced the news yesterday on their respective website about the definitive acquisition of Nginx, a global leader in open source application delivery by the F5 Network group, a leader in multi-cloud application services, for a total business value of $ 670 million.
With its application platform, NGINX enables digital transformation companies to modernize their existing monolithic applications and offer new applications based on microservices.
F5 wants to boost NGINX and sees a promising future
If F5 embarked on this dynamic, it is to bring its vision of the future to life, to provide greater customer satisfaction by combining DevOps and NetOps services and bring more creativity in the field of cloud computing.
F5 will become the owner of the open source company and thus acquire all the issued and outstanding shares of Nginx.
"By connecting NetOps and DevOps, F5 provides customers with consistent application services across all environments," said F5 on its website.
The acquisition statement, issued jointly by the two companies, indicates that this acquisition will allow F5 to expand its opportunities and offerings for its clients.
In addition, F5 also explained that it recognizes the important place that the open source community has in the progress of Nginx. and the trust that this community places in Nginx products.
As a result, undertakes to continue innovating and increasing investment in the project open source Nginx to strengthen Nginx's extended user communities.
The company places open source as a central element of its multicloud strategy and a driver of its next phase of innovation.
We will allow, we read, the creation of multi-cloud application services in all environments, offering developers the ease of use and flexibility required.
Other benefits include the security, reliability, and responsiveness required by network operations teams.
The acquisition of Nginx by F5 strengthens our growth trajectory by accelerating our software transformation and cloud multiplex transformation.
We will combine F5's portfolio of world-class application security solutions and sophisticated application services to improve performance, availability, and management with NGINX's leading software application and API management solutions.
Additionally, with unparalleled credibility and brand recognition in the DevOps community and a massive open source user base, we will bridge the gap between NetOps and DevOps with consistent application services in the multi-cloud environment. François Locoh-Donou, President and CEO of F5.
However, despite these explanations, doubts and questions remain within the open source community about this acquisition and the future of open source solutions from Nginx.
According to some of them, To see the large amount invested by F5 Network in this acquisition, you will necessarily want to make your investments profitable And it is not in open source that you will find your return on investment.
Some details of the acquisition statement indicate that the acquisition of NGINX is expected to increase F5's software revenue growth. and the composition of this turnover in fiscal year 2019.
Ensures F5 2022 targets. In the short term, the Company expects the acquisition and investment in new and emerging solutions to result in a modest dilution of earnings for fiscal years 2019 and 2020.
Later, this acquisition will have the direct consequence of modifying the license of the Nginx products.
However, for some, there is no possibility that F5 will seek to monetize Nginx separately as a standalone product.
They emphasize that the future outcome of this initiative will be that the next F5 applications will have additional capabilities and possibly high costs.
Sources: Nginx , Network F5