Cloud Computing

OpenStack Market to Reach $1.7 Billion by 2016: Report

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The market for OpenStack could reach $1.7 billion by 2016, according to a new report by 451 Research. OpenStack revenue is growing rapidly, and the report indicates that the platform will continue to be monetized in new ways, particularly within higher management layers.

Several OpenStack-related business models are emerging, including PaaS providers, service providers, cloud management, and products/distribution/IT services, but 73 percent of total revenue currently comes from service providers with public and private IaaS clouds running on OpenStack.

Internap launched an OpenStack powered public cloud in May, and Mirantis integrated Oracle Linux and Oracle VM into the Mirantis OpenStack distribution in July to give customers more private cloud choices. Anchor, an Australian ecommerce host, launched a managed cloud service on OpenStack in July as well.

Expertise in both OpenStack architecture and development are in high demand, which has led to training and technical certification programs, such as the Mirantis program which trained its 1000th trainee in March.

The study found that enterprises choosing open source solutions gave flexibility, modularity, cost, and avoiding proprietary platforms as the main reasons. Those rejecting OpenStack are often concerned with the degree of technical expertise necessary to deploy it, as well as the overall reliability, load balancing, and scalability.

The biggest challenge to OpenStack may be its own success, however.

“Today, the project has evolved into a top priority for many IT professionals and suppliers,” 451 analyst Al Sadowski said. “With an estimated market size of $1.7bn by 2016, the openly collaborative governance currently used to determine release functionality will be put to the test against the OpenStack vendors’ desire for greater profits and market share.”

While CloudStack and Eucalyptus were the most commonly named alternative open source competitors, AWS and VMware were the proprietary rivals mentioned the most, and they remain market leaders, with a much larger share than the open sourced options.


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