MGI Research

Saturday, Oct 24th

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OpenStack - Opportunities, Myths and Threats

Is OpenStack going to sideline VMware and other proprietary private cloud technologies? Will the increasing adoption of OpenStack crimp the growth trajectory for Amazon Web Services public cloud offering? What are the opportunities and risks for enterprises looking to leverage open source cloud initiatives like OpenStack?


The answers to these questions will impact billions of dollars of IT spending, and fundamentally alter the trajectory (and market capitalizations) of major tech vendors. The May 2014 OpenStack conference in Atlanta focused attention on the impact OpenStack will have on the market for computing infrastructure. This note (see attachment below) summarizes the key takeaways for users, vendors, and investors. Users should take OpenStack seriously, and consider moving small, non-mission critical (non-customer-facing) workloads to this new environment. The short-time negative impact on VMware and Amazon is much more modest than users expect and investors fear. Within the next twelve months, VMware needs to address OpenStack as an opportunity and a threat.

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