Is OpenStack a Success?

From the data I have seen the number of production OpenStack deployments worldwide in 2014 was on the order of hundreds – not thousands or tens of thousands. Some criteria for “should I use OpenStack” as well. Is OpenStack a Success?

The growth story was, like Amazon, all about the cloud.

Ben Thompson on his latest newsletter, on Microsoft’s earnings.

The flywheel go-to-market model

The Flywheel Model differs from the Traditional Model in one fundamental regard. The enterprise sales team is exclusively inbound. They are explicitly denied the option of seeking business outside the customer base, and must gin up business from only existing customers. The enterprise sales team is an up-sell and cross-sell team. In fact, so is the mid-market sales team. Only the SMB marketing team is permitted to acquire new leads.

The "purpose driven reader"

A number of trends in media have left most news sites catering to a new kind of reader. According to the stereotype, this reader doesn’t visit news home pages, relying on starting points like Facebook instead. This reader sees news as just another category of entertainment, an escape or time-killer, and believes “important news will find me”, not the other way around. News sites modeled on this reader are pressured to produce ever more content and expand well past their core competency, even when they start with a clear focus and dedicated readership.

Survey shows companies want to use IT to drive growth

“The second-most-important category of business priority for 2015 and 2016 is technology related. This is the highest position we have ever seen for technology in this survey and it’s our firm belief that CEOs are more focused on this area than at any time since 1999,” said Mr. Raskino. “When we examine the subtext of the responses, the purpose of CEOs’ interest in technology becomes immediately obvious. Over half of the responses relate to revenue- and growth-related technology issues such as multichannel, e-commerce and m-commerce.

Team work bringing down the average

The workers were told, essentially, that they were to be rewarded for collective achievement rather than individually. So instead of maximizing individual satisfaction, which often comes through competition with other people, employees considered their impact on colleagues. The theory, which plays out in the results, is that with relative rankings, top performers reduce their effort to avoid hurting their co-workers’ egos and to prevent schisms in the team. That’s kind of sweet actually.

Lots of VC funding in Q1, highest since 2000Q1

At $13.4 billion in 1,020 deals, the first fiscal quarter of 2015 clocked in the most first-quarter funding since 2000. Investors threw 26 percent more money into deals than they did in the first quarter of 2014. How much of that is software and tech? The funding software companies received compared to startups in other sectors has doubled in the last decade, from 21 percent in the first quarter of 2006 to 42 percent in the first quarter of 2015.

Microservices is a modern take on software architecture, in which complex applications are composed of small, independent processes communicating with each other using APIs. These services are small, highly decoupled and focus on doing a small task. The rise of Docker, the proliferation of third party developer tools and the increasing reliance on the cloud all play into the growth of microservices.

Ben Kepes