Linux distributor SUSE recently announced the finalization of an agreement to acquire OpenStack and Cloud Foundry assets from Hewlett Packard Enterprise (HPE). The agreement enables SUSE to incorporate OpenStack IaaS technology into the SUSE OpenStack Cloud as well as take advantage of HPE’s Cloud Foundry PaaS to ramp up SUSE’s entry into the PaaS space. SUSE’s acquisition of OpenStack and Cloud Foundry technology and talent positions it to deliver a stronger OpenStack Cloud offering to its customers. Meanwhile, SUSE’s acquisition of HPE’s Cloud Foundry assets signals SUSE’s recognition of the importance of PaaS platforms to emergent DevOps and cloud-native application development practices. SUSE’s acquisition of HPE’s OpenStack and Cloud Foundry technology and talent marks the emergence of another critical player to the commercial OpenStack space whose deep experience commercializing open source software qua Linux bodes well for its ability to productize OpenStack for the enterprise. HPE has agreed to designate SUSE as its preferred partner for OpenStack, Cloud Foundry and Linux technologies in a move that bolsters SUSE’s acquisition further, particularly given that HPE plans to OEM the SUSE OpenStack Cloud and Cloud Foundry PaaS within its Helion and Stackato solutions. Stay tuned for the emergence of SUSE’s Cloud Foundry PaaS because part of the success of SUSE’s IaaS offering is likely to hinge on its ability to offer turnkey PaaS offerings on its OpenStack-based IaaS platform.