OpenStack heading for Maturity in the Private Cloud

Author: Alex Bakker, Charlie Burns  – Saugatuck Technology

What is Happening?

Recently, several large infrastructure providers have announced acquisitions or strategic directions. Saugatuck perceives these announcements from two perspectives: they underscore the commitment of multiple large vendors to OpenStack; and they suggest a question about the functionality and/or the maturity of OpenStack.

The announcements that Saugatuck views as significant are:

  1. HP Buys Eucalyptus. On September 11, 2014, HP announced that they would be acquiring long-time AWS emulator Eucalyptus. Marten Mickos, CEO of Eucalyptus and long an OpenStack holdout will now be HP’s SVP of their Cloud division. Eucalyptus’ expertise with AWS APIs makes them especially attractive to HP’s Cloud efforts as it will likely bring HP the ability to offer AWS compatible, OpenStack based Cloud which could be a boon, as usage of hybrid Cloud environments increases. However, Saugatuck also sees this acquisition as suggesting that OpenStack is lacking in a key area – which can be solved using selected functionality from Eucalyptus. Saugatuck’s assessment is that area is most likely in accurately billing for high volumes of provisioning changes that occur in a Cloud supporting numerous users.
  2. Rackspace remains an independent company. Rackspace, one of the early adopters and main contributors to OpenStack, has been looking for a buyer for quite some time, but gave up on that vision this week with the promise to become the top player in the “Managed Cloud” space. Though Rackspace continues to be an OpenStack shop, they have recently changed their positioning – reflecting a service and support focused strategy, rather than try to compete with the hyper-scale commodity vendors like AWS, Google, and Microsoft Azure. It is likely that they will face competition in the enterprise OpenStack space from HP and IBM, both companies with significant professional services and hosting experience.
  3. Cisco buys Metacloud. Cisco acquired private-cloud enabled Metacloud to help flesh out their complete Intercloud offering, which depends on interoperability with multiple vendors, based on an OpenStack backbone. Cisco has been a long-time contributor to OpenStack and was a founding member of the OpenStack Foundation in 2012.
  4. Canonical and AMD create “OpenStack in a Rack.” Canonical, the maker of Ubuntu (the most popular OS on OpenStack) and chip maker AMD have teamed up to create a pre-built OpenStack Cloud in a rack. The cloud, already completely operational is targeted at those who want to deploy an OpenStack private Cloud without the significant effort required to order and install and integrate the components.

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