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Kratos and Rancher Government Solutions Announce Strategic Partnership to Enable Customers to Seamlessly Deploy and Scale Virtual Ground Systems Using Kratos’ OpenSpace® Software Platform

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Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) and Rancher Government Solutions (RGS) have announced a strategic partnership to enable customers to seamlessly deploy and scale virtual ground systems using Kratos’ software-based OpenSpace® Platform. This platform supports multiple satellites, orbits, payloads, and services, catering to increasingly complex and dynamic satcom and Earth Observation missions. The partnership aims to transition satellite operators and government agencies from fixed and proprietary hardware to flexible and scalable generic compute-based cloud environments, thus delivering services faster and streamlining operations.
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The strategic partnership between Kratos Defense & Security Solutions, Inc. and Rancher Government Solutions represents a significant advancement in satellite ground system technology. The collaboration focuses on deploying Kratos’ OpenSpace Platform, which is poised to disrupt the traditional satellite ground systems by offering a software-based, fully virtualized and software-defined solution. This shift from fixed, proprietary hardware to a more flexible, generic compute-based cloud environment aligns with the broader industry trend towards virtualization and cloud computing.

The implications for the satellite and defense industry are considerable, as this technology can potentially lead to reduced costs, increased flexibility and faster deployment of services. For stakeholders, including satellite operators and government agencies, the ability to support multiple missions simultaneously and streamline operations could translate into significant operational efficiencies. The partnership leverages the OpenSpace Platform's compatibility with Kubernetes, which facilitates the deployment of virtual functions as containerized software applications, enhancing scalability and portability across different infrastructures.

From an investment perspective, this partnership could position Kratos as a pioneer in the satellite ground systems market, potentially capturing a larger market share. The ability to offer a more cost-effective and secure solution may also attract new customers and retain existing ones, possibly impacting Kratos' revenue growth and market valuation positively.

The announcement of the strategic partnership between Kratos and RGS is likely to be viewed favorably by investors, as it signals Kratos' commitment to innovation and market leadership in the defense and national security sector. By enabling the deployment of ground systems across various computing environments, Kratos is addressing a key market need for flexibility and scalability in satellite operations.

Investors should monitor the adoption rate of the OpenSpace Platform and any subsequent financial performance metrics shared by Kratos, such as revenue growth, profit margins and market share gains. The partnership could also lead to competitive advantages and potentially create barriers to entry for competitors, given the proprietary nature of the OpenSpace Platform. However, investors should be aware of the costs associated with research and development, as well as the marketing and sales efforts required to promote this new technology.

It is also critical to assess the long-term sustainability of this strategic move. While the initial investment in the technology and partnership may be substantial, the recurring revenue from service offerings and the potential to scale operations could result in favorable long-term financial outcomes for Kratos.

The use of Kubernetes as a container orchestration platform in the OpenSpace Platform is indicative of the growing trend of containerization in the technology sector. This approach allows for the deployment of applications across various environments, including private data centers and public clouds, offering unprecedented flexibility to satellite operators. The ability to switch between cloud providers like Google, Amazon, or Microsoft without being locked into a single vendor's ecosystem is a significant advantage for customers seeking to avoid vendor lock-in and maintain agility in their operations.

For the industry, the adoption of such platforms could lead to a more standardized approach to satellite ground systems, potentially reducing the complexity and time required for deployment. This could also foster innovation by enabling satellite operators to quickly adapt to changing mission requirements without the need for significant hardware investments. However, the transition to a software-defined approach requires a cultural shift within organizations, as well as training for technical staff to manage and operate these new systems effectively.

As the technology matures, potential drawbacks such as security concerns associated with virtualization and containerization will need to be addressed. Nonetheless, the partnership between Kratos and RGS is a clear indication of where the industry is headed and it sets a precedent for future developments in satellite ground system technology.

First-to-Market OpenSpace Platform is a Software-Based Networking Solution that Connects Space to the Dynamic Ground, Supporting Multiple Satellites, Orbits, Payloads and Services

SAN DIEGO, Jan. 04, 2024 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets and Rancher Government Solutions (RGS), the leading provider of enterprise Kubernetes management solutions to the U.S. Government, announced today a strategic partnership to enable customers to seamlessly deploy and scale virtual ground systems using Kratos’ software-based OpenSpace® Platform.

With increasingly complex and dynamic satcom and Earth Observation missions, satellite operators and government agencies are transitioning from fixed and proprietary hardware to flexible and scalable generic compute-based cloud environments. This enables a virtualized and software-defined ground system like Kratos’ OpenSpace Platform to more cost effectively and securely support multiple missions simultaneously, deliver services faster and streamline operations.

Today, customers leverage a range of computing environments from bare metal, virtual machines to the cloud, making the deployment of software-based ground systems more complex and time consuming. Working together, Kratos and Rancher Government Solutions have enhanced the ability of the OpenSpace Platform, the first commercially available, fully virtualized and software-defined satellite ground system to be deployed more easily across customer environments.

“With Rancher, the OpenSpace Platform deploys its virtual functions including modems, channelizers, combiners, and more, as Kubernetes-based containerized software applications that act as independent and portable computing environments that can run and scale on any infrastructure,” said Brandon Gulla, Chief Technology Officer at RGS. “We are proud to be working with Kratos to support this truly transformational platform that will free satellite operators from proprietary hardware architectures and move to software-defined, flexible and extensible virtual platforms.”

By the nature of it being software-defined and containerized, the OpenSpace Platform is already much faster, and more flexible to deploy than traditional hardware-based satellite ground systems. As customer demands grow, the software-based OpenSpace Platform can reconfigure on the fly and deploy new services automatically and cost effectively in minutes. Software containers can be spun up and down and scaled on demand elastically using a single management interface from the Rancher Platform.

“Rancher serves as the Kubernetes management technology that supports the OpenSpace Platform’s ability to automate the deployment, scaling, and management of our containerized workloads,” said Anthony Semiao, Chief Solutions Architect of the OpenSpace Platform. “The combined technologies support hybrid and multi-cloud environments enabling OpenSpace customers to run in the data center and cloud environment of their choice such as Google, Amazon or Microsoft and to easily switch from one cloud provider to another.”

About Kratos OpenSpace
Kratos’ OpenSpace family of solutions enables the digital transformation of satellite ground systems to become a more dynamic and powerful part of the space network. OpenSpace® is the industry’s only commercially available digital transformation solution that enables operators of satellites, Ground Systems-as-a-Service (GSaaS) providers, teleports and others in the satellite services supply chain to capitalize on dynamic ground capabilities. The OpenSpace family consists of three product lines: OpenSpace SpectralNet for converting satellite RF signals to be used in digital environments; OpenSpace quantum products, which are virtual versions of traditional hardware components; and the OpenSpace Platform, the first commercially available, fully orchestrated, software-defined ground system. These three OpenSpace lines enable satellite operators and other service providers to implement digital operations at their own pace and in ways that meet their unique mission goals and business models. For more information about the OpenSpace family, visit www.KratosDefense.com/OpenSpace.

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach reducing cost, schedule and risk, and enabling us to be first to market with cost effective solutions. Kratos is known as the innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing and as a competitive differentiator to our large traditional prime system integrator partners and also to our government and commercial customers. Kratos’ primary business areas include, virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

About Ranger
Rancher Government Solutions (RGS) is specifically designed to address the unique security and operational needs of the U.S. Government and military as it relates to application modernization, containers, and Kubernetes.

Rancher is a complete open source software stack for teams adopting containers. It addresses the operational and security challenges of managing multiple Kubernetes clusters at scale, while providing DevOps teams with integrated tools for running containerized workloads.

RGS supports all Rancher products with U.S. based American citizens who are currently supporting programs across the Department of Defense, Intelligence Community, and civilian agencies. From more information, visit www.ranchergovernment.com

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 25, 2022, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Kratos Press Contact:
Yolanda White
858-812-7302 Direct

Kratos Investor Information:
877-934-4687
investor@kratosdefense.com

Rancher Government Press Contact:
Don Poole
(844) 747-7779
don.poole@ranchergovernment.com


FAQ

What is the strategic partnership announced by Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) and Rancher Government Solutions (RGS)?

The strategic partnership aims to enable customers to seamlessly deploy and scale virtual ground systems using Kratos’ software-based OpenSpace® Platform, supporting multiple satellites, orbits, payloads, and services.

What is the purpose of the partnership between Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) and Rancher Government Solutions (RGS)?

The purpose is to transition satellite operators and government agencies from fixed and proprietary hardware to flexible and scalable generic compute-based cloud environments, thus delivering services faster and streamlining operations.

How does the partnership between Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) and Rancher Government Solutions (RGS) benefit customers?

The partnership benefits customers by providing a platform that supports multiple satellites, orbits, payloads, and services, catering to increasingly complex and dynamic satcom and Earth Observation missions. It also aims to deliver services faster and streamline operations.

What is the OpenSpace® Platform by Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS)?

The OpenSpace® Platform is a software-based networking solution that connects space to the dynamic ground, supporting multiple satellites, orbits, payloads, and services. It aims to transition satellite operators and government agencies from fixed and proprietary hardware to flexible and scalable generic compute-based cloud environments.

What is the role of Rancher Government Solutions (RGS) in the partnership with Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS)?

Rancher Government Solutions (RGS) enhances the ability of the OpenSpace Platform to be deployed more easily across customer environments, supporting the deployment of virtual ground systems.

Kratos Defense & Security Solutions, Inc.

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