Four years ago, in October 2013, 451 Research reported that OpenStack cloud revenues were approximately $600 million in 2013. In April 2016, 451 Research reported that 2015 OpenStack ecosystem revenues came in at $1.2 billion, with a forecast to grow to $3.37 billion by 2018.
Now in November 2017, 451 Research is out with it latest OpenStack market sizing report, estimating 2017 OpenStack ecosystem revenue at $2.6 billion. Looking forward, 451 Research is forecasting that OpenStack market revenues will reach $6.7 billion by 2021
The cloud initiative combines Google’s de facto standard Kubernetes cluster orchestration platform for managing applications and services across hybrid infrastructure with Cisco’s networking and security expertise. It also leverages Cisco’s push into hyper-converged infrastructure. Along with extending security to application containers and other micro-services, the deal would allow users to monitor application behavior running on hybrid platforms, the partners said.
The other pillar of the collaboration is Istio, another open source tool released earlier this year to help manage micro-services via what developers call a “service mesh network.” Working with Kubernetes, Istio aims to provide a uniform means of connecting and managing micro-services.
And, more here:
The companies will offer the joint solution to a limited number of customers during the first part of 2018 with generally availability coming later in the year.
Oracle’s view is simple: SaaS suites win in the long term.
Oracle reports its PaaS and IaaS revenue together, which makes understanding its IaaS growth difficult. FY16 to FY17 revenue increased from $0.9bn to $1.4bn, equivalent to 60% YoY growth. The company claims to have added 14,000 IaaS and PaaS customers to OCI since its inception, almost all of them existing customers of its licensed software. Oracle’s overall revenue in 2016 was $37bn, so IaaS and PaaS still represent a small slice of the pie.
The report has, of course, more detail on the portfolio, e.g.:
A challenge Oracle faced from the beginning was its tardiness to the market. Sure, it could copy and perhaps improve upon existing public cloud offerings, but it would have to do it faster than the rest of the market. AWS, for example, has over 70 services, so there is a lot of ground to cover. Over the past year, Oracle has released 50 services and features – starting from bare-metal compute and storage, the company has added virtual machines, databases, database clustering, load balancers, audit capability, compliance, monitoring, logging, authentication and new images. From a single datacenter in Phoenix, it has expanded to Ashburn, Virginia, and Frankfurt; it is targeting London for early 2018 and APAC further down the line. It has also released and open-sourced a new serverless capability called Fn and a Docker-native platform called Fn Flow for composing serverless applications. The company hopes to distinguish its serverless offering by making it cloud-agnostic, although Java is first among equals in terms of supported languages. Oracle realizes that its capability isn’t as broad as AWS’s, but its rate of development shows it can achieve a lot in a short amount of time.
In 451 Research’s Voice of the Enterprise: Hosting & Cloud Managed Services, Organizational Dynamics 2017 report, 44% of 515 respondents stated that they would pay a premium for an enhanced SLA on performance/uptime; 34% stated that they would pay a premium for enhanced customer support. The median premium for these enhancements was about 20%. Buyers see value in services way beyond just the basics. The challenge for Oracle is convincing customers that it offers the best capability for the best price – there are others in the market with stronger credentials and reputations. stronger credentials and reputations.
Source: Oracle stays the course on IaaS
There’s a new survey out from the Cloud Foundry Foundation, looking at the users of Cloud Foundry. Here’s some highlights and notes:
- Another ClearPath joint, n=735.
- It’s important to keep in mind that this is covers all distress of Cloud Foundry, including open source (no vendor involved).
- “The percentage of user respondents who require over three months
per app drops from 51 percent to 18 percent after deploying Cloud Foundry Application Runtime”
- “…while the percentage of user respondents who require less than a week climbs from 16 percent to 46 percent.”
- “Nearly half (49 percent) of Cloud Foundry Application Runtime users are large enterprises ($1+ billion annual revenue).”
- This chart is hard to read, but it shows a reduction in time to deploy across various time periods:
- Uptake is early, but there are definitely mature users: “A plurality of Cloud Foundry Application Runtime users (61 percent) describe their deployments as somewhere in the early stages—trial, PoC, evaluation, or a partial integration into specific business units. Meanwhile, 39 percent have deployed Cloud Foundry Application Runtime more broadly across their company, from total integration in specific business groups to company-wide deployment.”
- “Comcast, for example has more than 1500 developers using Cloud Foundry Application Runtime daily. Home Depot reports more than 2500 developers.”
- “Comcast has seen between 50 percent and 75 percent improvement in productivity.”
- “Half of Cloud Foundry Application Runtime users are currently using containers, such as Docker or rkt, with another 35 percent evaluating or deploying containers.”
- Container management – there’s a wide variety of tools that people use for container orchestration, including DIY (14%). There’s a lot of interest in having CF do it: “Nearly three-quarters (71 percent) of Cloud Foundry Application Runtime users currently using or evaluating containers are interested in adding container orchestration and management to their Cloud Foundry Application Runtime environment.” Hence, validating the Cloud Foundry Container Runtime.
- Of course, the surveyed are already CF users, so they’re biased/driven by what they know.
- Almost half of respondents say that getting started with CF. But people end up liking it: “An overwhelming majority of users (83 percent) would recommend Cloud Foundry Application Runtime to a colleague, including 60 percent who would do so strongly.”
- “As more companies roll out Cloud Foundry Application Runtime more broadly, the footprint continues to grow. Currently, 46 percent of users have more than 10 apps deployed on Cloud Foundry Application Runtime, including 18 percent with over 100 (and eight percent with over 500).” 4% have over 1,000 apps.
- CF’s uses: “The primary use is for microservices (54 percent), followed by websites (38 percent), internal business applications (31 percent), Software-as-a-Service (SaaS) (27 percent) and legacy software (eight percent).”
- Validating multi-cloud: “60 percent say this is very important, and another 30 percent describe it as somewhat important.” Meanwhile, 53% are using more than one type of IaaS.
I assume this is across distros, and including use of just the ope source stack,
451 Research’s data points suggest that some workloads are likely to remain on private cloud regardless of any disruptor’s attack. And even with hungry cloud providers eyeing private workloads, growth is likely to continue across all cloud models, not just public cloud.
Whole bunch of survey numbers tryin’ figure out how many workloads will stay on private cloud.
Lots of growth, it’s all just public cloud, though.
“We’re seeing a big trend among customers to move cloud stacks inside customer’s data center for security, performance and governance,” Wang told TechCrunch.
There’s not really any qualitative (market share, penetration, or surveys – all pretty easy to lmgtfy) bits here, but I’d take it more as a slightly eyebrow raising thing along the lines of “if even TechCrunch wiffs out private cloud, maybe there’s some fire there.”
Plus, analyst quotes.
Some BOM’ing of Azure Stack:
Azure Stack is made of two basic components, the underlying infrastructure that customers purchase from one of Microsoft’s certified partners (initially Dell EMC, HPE and Lenovo) and software that is licensed from Microsoft.The software includes basic IaaS functions that make up a cloud, such as virtual machines, storage and virtual networking. Azure Stack includes some platform-as-a-service (PaaS) application-development features including the Azure Container Service and Microsoft’s Azure Functions serverless computing software, plus MySQL and SQL Server support. It comes with Azure Active Directory for user authentication.Customers also have access to a wide range of third-party apps from the Azure Marketplace, including OS images from companies like Red Hat and SuSE, and templates that can be installed to run programs like Cloud Foundry, Kubernetes and Mesosphere.On the hardware side, Azure Stack runs on a hyperconverged infrastructure stack that Microsoft and its hardware vendors have certified. The smallest production-level Azure Stack deployment is a four-server rack with three physical switches and a lifecycle management server host. Individual racks can scale up to 12 servers, and eventually, multiple racks can be scaled together. Dell EMC, HPE and Lenovo are initial launch partners. Cisco plans to offer a certified Azure Stack platform based on its UCS hardware line by the end of 2017 and Huawei will roll out Azure Stack support by the end of 2018.IDC Data Center Networking Research Analyst Brad Casemore says he believes customers will need to run at least a 10 Gigabit Ethernet cabling with dual-port mixing. Converged network interface cards, support for BGP and data center bridging are important too. Microsoft estimates that a full-sized, 12-rack server unit of Azure Stack can supply about 400 virtual machines with 2 CPUs and 7 GB of RAM, with resiliency.
And Lydia explains the “people want private cloud ¯_(ツ)_/¯” angle:
“This is definitely a plus in the Microsoft portfolio,” says Gartner VP and Distinguished Analyst Lydia Leong, but she says it’s not right for every customer. “I don’t think this is a fundamental game-changer in the dynamics of the IaaS market,” she notes, but “this is going to be another thing to compel Microsoft-centric organizations to use Azure.”
Leong expects this could be beneficial for customers who want to use Azure but some reason such as regulations, data sensitivity, or location of data prevents them from using the public cloud. If a customer has sensitive data they’re not willing to put in the public cloud, they could deploy Azure Stack behind their firewall to process data, then relatively easily interact with applications and data in the public cloud.