Now that they don’t have to compete with AWS, they have an extra $300m floating around in the spreadsheets:
“Ultimately now it’s about how are we going to build a stronger company. If we don’t have to go spend $300 million a year in capital competing against Amazon, building computing storage and networking, where should we go put that? In things like managed cybersecurity and professional services,” said Rhodes.
On OpenStack, finding the product/market for for private cloud:
And what about OpenStack, the open-source cloud computing platform that Rackspace created with NASA?
“We thought the world wanted another alternative to public cloud,” said Rhodes. “What we are learning is the world doesn’t need another public cloud, so OpenStack is shifting form and going private cloud.”
Also, cameo from my former 451 colleague Carl Brooks.
From Al’s report on the recent OpenStack Summit:
Based on a 451 Research Advisors survey of midsize and large enterprises, increasing operational efficiency and accelerating innovation/deployment speed are top business drivers for enterprise adoption of OpenStack, at 76% and 75%, respectively. Supporting DevOps is a close second, at 69%. Reducing cost and standardizing on OpenStack APIs were next, at 50% and 45%, respectively. The survey further shows diversity in vertical markets using OpenStack, with 80% of respondents being outside the tech industry.
The latest biannual release of OpenStack is Newton, and the community supporting it also shows diversity among the contributors. As of this 14th release, there are 64,549 community members from 187 countries, up from 50,000 six months ago. There are also 643 supporting companies, up from 578 for the same period. Newton also had a record number of developers contribute to the code: 2,581, versus 15 in the first release.
Source: OpenStack: the Sagrada Familia of cloud software?
Whitehurst thinks no one is paying enough attention to Open Stack, the freely-available software stack. “We had three deals over a million dollars last quarter,” for Open Stack, said Whitehurst. “We are finally seeing it move into production in a pretty significant scale. Verizon [Communications] and others are running our Open Stack, and so to reach that production point is pretty exciting.”
Source: Red Hat Rising: Bulls Breathe Sigh of Relief as Linux Rebounds.
The company sells a public cloud platform, mostly based on OpenStack, to service providers who want to stand up their own clouds. A sampling of customers thus far from Agatha’s recent report:
the group claims to have deployed more than 1.4 million virtual machines for customers across the board, and enabled the commercial deployments of public cloud (T-Systems’ Open Telekom Cloud), hybrid cloud (Vodafone’s Vodaplex Hybrid Cloud Platform) and HPC (University of Warsaw’s Top500 HPC project’s HPC cluster).
Source: Huawei pushes further into the telecom market with its public cloud platform
New OpenStack market-sizing and -forecast from old pals at 451:
- Al & Jay say $1.8bn in 2016, going to $5.4bn in 2020.
- Public cloud dominates now, but is expected to switch – “[public cloud providers are] 49% of total OpenStack revenue in 2015. However, we expect OpenStack private cloud service provider revenue to exceed public cloud providers by 2019.”
How they bucket-ize:
451 Research’s Market Monitor focuses on 56 vendors that provide direct OpenStack offerings, including products, services and turnkey offerings around OpenStack deployment and management, different distributions of OpenStack, service providers and training services. Although we do consider some vendors with integrated hardware, systems and software offerings based on OpenStack, our market-sizing estimate does not include hardware-centric revenue, nor does it include revenue from indirect third-party vendors, such as those in storage or software-defined networking.
Source: OpenStack-related business models to exceed $4bn by 2019
The OpenStack Summit is in Austin this year, finally! So, I of course submitted several talks. Go over and vote for them – I think that does something helpful, who the hell knows?
Here’s the talks:
- DevOps for Normals – what’s happening as donkeys adopt DevOps – I gave one my first “state of DevOps” style talks back at the Atlanta OpenStack Summit in 2014. We’d just done a little DevOps study at 451 research. Now I give these types of talks a lot, updating them each time with the latest collection of charts and advice.
- Cloud Native Promises in the Land of Continuously Delivered Microservices – this is the talk I have going over exactly what a “cloud platform” is, why you’d care, and what it does for it. More than anything, it’s one of the many attempts to frame up what cloud is: a stack of stuff to help make software delivery better, put another way, the “infrastructure” that makes continuous delivery possible.
- Developer Marketing and Relations: Convincing the “Kingmakers” to give a crap about you – I’ve been trying to put together a panel to talk about developer relations for awhile now. As you may recall, I brain-dumped on that topic into the one (public) long-form report I did at 451 Research. For this panel, I picked a developer (Charles Lowell, The Frontside), a tech journo (Alex Williams, The New Stack), a marketer (Melissa Smolensky, CoreOS), a straight up developer relations person (David Flanders, OpenStack Foundation), and whatever it is I do. This seemed like a good bunch to go over why you’d want to do developer relations, what people do, and what works and doesn’t work.
I’ll be at the Summit regardless, but it’d sure be dandy to do some of the above too.
“‘We’ve gone from signing about $1 million in new business every month to $1 million every week,’ [Mirantis] CEO Adrian Ionel said recently.” You could do some spreadsheets if you spitballer non-new business and estimated when the switch over happened. Something like $12m to $20m a year?
Mirantis funding, revenue estimate
“When Apple moved to bare metal with Mesos, one of the big reasons why they did it was, first, they did not need the virtual machines and, second, they got a big performance improvement. The virtualization tax that we often talk about is very real and for Apple it was on the order of 30 percent. Removing it meant Apple could run Siri jobs 30 percent faster, which is a really big deal.”
Will OpenStack, Kubernetes, Or Mesos Control Future Clusters?
“Puppet alone provides the basis for the majority of OpenStack deployments, at 56 percent. Puppet plus deployment tools that utilize Puppet (e.g., Mirantis Fuel, Red Hat OpenStack Platform, PackStack) provide the basis for 72 percent of all production deployments.”
Reflecting on the OpenStack Kilo Summit and Looking Forward to Liberty