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From Ian Rae <i...@cloudops.com>
Subject OpenStack Revenues Approaching $3.4B: 451 Research
Date Thu, 28 Apr 2016 16:38:26 GMT
The accounting is incorrect, these are just marketing claims. Much is
services or "attached" revenue. In the past some analysts have confused the
revenue of entire companies (Rackspace) with being OpenStack revenue.
Bottom line is, most companies are not making money from OpenStack itself.
Many are deriving value however, but ROI is very unclear.

There has been a huge amount of money invested in OpenStack, but many have
done so with the goal of selling their product that plugs into
OpenStack. Most of the focus is still on implementation challenges (product
market fit, time to value and supporting use cases). Some stuff works today
and some doesn't.

And it depends how you look at "works" ...at CloudOps we are concerned with
operationalization and long term efficient operations and lifecycle
management. So for us it is hard to actually know...it is hard to find
people at the Summit who want to talk about this since most are focused on
proving a business case in the short term related to selling product or
support services. With a ton of investment some providers are seeing
success in the private cloud as a service market. You can debate the long
term usefulness of private cloud but in OpenStack it is a smart model
because it limits the scale and failure domains and it offloads the cost of
implementation and operations to the service provider. And so it delivers
value if the service provider can pull it off. Maybe BlueBox and Rackspace
can make this work longer term.

End of day for OpenStack to be considered successful there needs to be
successful product-market fit over a reasonable period of time which needs
to give good ROI for customer, and is profitable to build maintain and
support for the service provider. It also needs to live up to the promise
of help you own your destiny as opposed to getting stuck (say unable to
upgrade or locked into a service provider).

There are a lot of folks invested in this foundation so law of large
numbers means a few may find that business case, call it survival of the
fittest. Then again lot of folks attending the Summit are talking about
OpenStack being a "skip" technology which should concern some. Others talk
of OpenStack being just an API and the projects themselves should compete
with each other and be interchangeable.

I think the future is going to be more complicated (not either or), and
this is the CloudOps bet. For example we have successfully
operationalized many components of OpenStack (sometimes in conjunction with
CloudStack) and our customers rely on those today and they deliver daily
value at low cost and we can upgrade them (not always easily mind you).

The good news for CloudStack is we continue to see growth in our customer
base and success in driving profit. I think this comes from finding a
product market fit. Still lots to solve and hoping the next Collab (June
1-3 Montreal) will enable leadership in both solving some issues and making
progress with functionality.

There's probably a balance in between the brazen focus on marketing over
value delivery of OpenStack foundation and the heads down in the trenches
quiet work of Apache CloudStack, but lack or large disrupted and
confused vendors may ultimately be the reason the community succeeds!

Hoping everyone interested in this topic will attend the
June Collab conference that is showing a lot of sponsorship and interest!

http://ca.cloudstackcollab.org

Ian

On Thursday, 28 April 2016, Jules-Henri Gavetti <jhgavetti@ikoula.com
<javascript:_e(%7B%7D,'cvml','jhgavetti@ikoula.com');>> wrote:

> Hello,
>
> On the French Market :
> 1 year ago every body talk about OpenStack.
> Now nobody care.
> Why because a lot of big company lost a huge amount of money in POC
>
> CloudStack is business ready.
> We see more and more ISV build plugin for Cloudstack
>
> In the 3.4 billion you have hardware, software and consulting.
>
> HP sell Openstack with his hardware and mix the revenue.
> Every Openstack supplier do that.
>
> 3.4 billion doesn't really exist !
>
> A bientôt
>
> Jules
>
>
> Le 28 avr. 2016 à 17:50, Will Stevens <williamstevens@gmail.com> a écrit :
>
> I would be curious to know how many billions of $ of consulting and
> operational costs were incurred to boost the $3.4B of revenues.  :)  I
> wonder which number is bigger...
>
> You still can't upgrade an openstack cloud, so if you want to go to a new
> version, you have to build a new cloud and migrate all of your workloads.
>
> I am not saying you can't make money with openstack, but I would rather be
> an openstack consultant than an openstack provider, and that says a lot
> about the actual technology...
>
> On Thu, Apr 28, 2016 at 11:07 AM, Sunando Bhattacharya <
> sunando@indiqus.com> wrote:
>
>> I really don’t know on what basis we are saying that openstack doesn’t
>> work… $3.4Bill of revenues !!!
>>
>> Fact is openstack is production-grade and catching up fast on most counts
>> with ACS, and actually ahead on some features like NFV.
>>
>> Lets call a spade a spade
>>
>> *Sunando Bhattacharya*
>> *M* +91 97111 52299
>> www.indiqus.com
>>
>> <https://www.indiqus.com/blog>
>> <https://www.linkedin.com/company/indiqus-technologies-pvt-ltd->
>> <https://twitter.com/INDIQUS>
>> <https://plus.google.com/+Indiqus_technologies/about>
>> <https://www.facebook.com/indiqus>
>>
>>
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>>
>> On 28 April 2016 at 8:26:21 PM, Giles Sirett (giles.sirett@shapeblue.com)
>> wrote:
>>
>> +1 to that will
>>
>> Kind Regards
>>
>> Giles
>>
>>
>>
>> D: +44 20 3603 0541 <+44%2020%203603%200541> | M: +44 796 111 2055
>> <+44%20796%20111%202055>
>>
>> Giles.Sirett@shapeblue.com
>>
>>
>>
>>
>>
>> giles.sirett@shapeblue.com
>> www.shapeblue.com
>> @shapeblue
>>
>> On 28 Apr 2016, at 15:39, Will Stevens <williamstevens@gmail.com> wrote:
>>
>> Openstack is just bitter because they still don't have a product that
>> works and our product works just fine.  Just goes to show that more money
>> doesn't always solve the problem...  :)  All that money and almost no
>> success stories.  Kind of sad really...
>>
>> On Thu, Apr 28, 2016 at 1:09 AM, Madan Ganesh Velayudham <
>> madanganesh@actonmagic.com> wrote:
>>
>>> Greetings,
>>>
>>> Just bumped onto this article, thought of sharing:
>>>
>>>
>>> http://www.eweek.com/cloud/openstack-revenues-approaching-3.4b-451-research.html
>>>
>>> <snip>
>>> The decision to turn over OpenStack to a foundation in 2012 stands in
>>> contrast to the CloudStack platform and its parent, Citrix. Citrix
>>> donated
>>> <http://www.serverwatch.com/server-news/citrix-walks-away-from-openstack-moves-to-apache-cloudstack.html>
>>> CloudStack to the Apache Software Foundation, but it was never set up with
>>> the same true, multi-stakeholder, stand-alone foundation as OpenStack's.
>>>
>>> "If Citrix would have done a foundation around CloudStack, *we would
>>> now be at a Cloudstack Summit, not OpenStack Summit*," Sadowski said."
>>> Sadowski said.
>>> <snip>
>>>
>>> The bold highlighted line was hurting a little bit!
>>>
>>> Cheers,
>>> Madan
>>>
>>> --
>>> Madan Ganesh Velayudham
>>> Founder & CEO
>>> ActOnMagic
>>>
>>> *Cloud Governance, Analytics, Management Simplified with ActOnCloud!*
>>> www.actonmagic.com
>>>
>>
>>
>

-- 
Ian Rae
CEO | PDG
c: 514.944.4008

CloudOps | Cloud Infrastructure and Networking Solutions
www.cloudops.com | 420 rue Guy | Montreal | Canada | H3J 1S6

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