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Why OpenStack will falter

Open source history suggests that Eucalyptus, a private cloud implementation of Amazon Web Services, will triumph over OpenStack

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Keep in mind that this issue applies only if the project is a directly monetizable layer of the software stack. As an outsider looking in, this appears to be the fundamental difference in Eucalyptus and the overall OpenStack community.

The OpenStack community -- especially vendors such as Dell, HP, and Rackspace -- view OpenStack as addressing a part of the software stack that isn't directly monetizable. These vendors would rather use OpenStack to build a higher-value product that they can directly monetize. For example, Dell and HP would likely sell "Cloud Platform Ready" hardware systems rather than an OpenStack software product itself -- and in fact, Dell has already done this.

Clearly, Eucalyptus disagrees that a cloud platform is best managed by a consortium of competitors, and CEO Mickos claims to be growing customers "at an amazing rate." Eucalyptus has grown from 15 to 70 employees over the past year and added a new headquarters in London to grow in Europe, the Middle East, and Africa -- a sign that his growth claims have merit.

In the end, IT buyers will decide whether Eucalyptus or the OpenStack community made the right bet. I tend to agree with Eucalyptus that a cloud platform is indeed a valuable, and thus directly monetizable, layer of the software stack. If so, Eucalyptus should win as the OpenStack effort falters among competing member interests.

What do you think?

I should state: "The postings on this site are my own and don't necessarily represent IBM's positions, strategies, or opinions.

This article, "Why OpenStack will falter," was originally published at InfoWorld.com. Read more of Savio Rodrigues's Open Sources blog and follow the latest developments in open source at InfoWorld.com. For the latest business technology news, follow InfoWorld.com on Twitter.


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