A Journey to OpenStack

Lessons Learned from Early Adopters

Agatha Poon
Research Manager, Global Cloud Computing
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2
Agenda
3
Where is the opportunity?
What can OpenStack do?
Why should we care?
Key takeaways
OpenStack regional snapshot
Well Developed East Asia &
Pacific Countries
Investment attention focusing
on transformational markets
of Japan, Korea, Australia, and
New Zealand.
Consolidation opportunities
ongoing in IT savvy economies
(Australia, Japan, Korea)
The learning curve remains
steep, but commercial
deployments exist, driven by
local cloud/hosting/managed
service providers
OpenStack is used by academia
for the deployment of
public/private/hybrid clouds
Fast Growing China and India
Strong government support for
innovation and balanced growth
A wealth of talent-strong
engineering and technical skills
Chinese providers are eager to
productize OpenStack-based
services and technologies.
OpenStack initiatives in India are
backed by global technology giants
and US-based vendors. Early
adopters Academia, Government
Emerging ASEAN and other
South Asian economies
Growing choice in outsourcing locations, with Malaysia,
Philippines, and Vietnam building credentials
Sri Lanka leads the South Asian region in terms of
human development indicators
In learning phase
Vendor-driven projects and training programs
Early adopters-tech-savvy IT segment
83%

Enterprise cloud journey

Cisco UCS
NetApp FlexPod
VCE Vblock
HP CloudSystem Matrix
IBM PureSystems
Dell Active System
Source: InfoPro cloud computing, Wave 5
Exciting Vendors, Technologies and Initiatives
5%
8%
16%
24%
25%
29%
0% 5% 10% 15% 20% 25% 30% 35%
EMC
IBM
OpenStack
Amazon.com
VMware
Microsoft
Source: InfoPro cloud computing, Wave 5
Growth catalysts
Trustworthy
Visibility
Security
No vendor lock-in
OpenStack is very exciting. We
continue to use VMware for
traditional environment.
Large Enterprise, Services:
Business/Accounting/Engineering
We use Chef for the orchestration
layer..and a bunch of other stuff.
OpenStack is being examined to
convert to at some layers.
Large Enterprise, Financial Services
12%
16%
20%
24%
34%
36%
47%
6%
5%
5%
6%
18%
8%
11%
12%
6%
16%
13%
17%
15%
13%
60%
67%
57%
52%
27%
39%
26%
9%
6%
3%
5%
5%
2%
2%
Automated Network Provisioning
Automated Middleware Provisioning
Metering/ Billing Across Internal/
External/ Hybrid Clouds
Automated Storage Provisioning
Cloud Platform/Orchestration Stack
Cloud Performance
Management/Monitoring
Automated Server Provisioning
In Use Now Short-term Plan Longer-term Plan Not in Plan Don't Know
On-premise, Private Cloud Platform, Management and
Automation Roadmap
7
Source: InfoPro cloud computing, Wave 5
An evolving landscape of OpenStack vendor ecosystem
Opportunities exist to test,
secure, integrate, and orchestrate
disparate cloud assets for
enterprises and service providers.
NSPs/SIs
OpenStack
Distributors
DevOps
IT Services
& Turnkey
Solutions
OpenStack
Service
Providers
PaaS on
OpenStack
Hardware/
Software
vendors
OpenStack
with other
clouds
Global OpenStack market sizing ($m)
9
Source: 451 Research Market Monitor, October 2013
OpenStack service providers segment is the
top revenue generator (E2013: $486m)
Strong uptick in revenue is expected from
OpenStack distributors (8.4% in 2014 from
3.5% in 2012)
2012-2016 CAGR: 43%
$399
$622
$895
$1,237
$1,671
2012 2013 2014 2015 2016
Projected revenue in 2013: By vendor type
10
OpenStack
Service
Providers
78%
OpenStack
distributors
8%
IT Services &
turnkey
solutions 5%
Vendor by category Vendor count
PaaS on OpenStack 7
OpenStack service providers 14
DevOps 5
OpenStack with other clouds 3
Network service/Equipment
providers
7
OpenStack distributors 4
IT Services & Turnkey
solutions
8
Source: 451 Research Market Monitor, October 2013
OpenStack-based private cloud, bespoke
deployment and consulting
It took over a year to productize OpenStack-
based offerings
Its an ongoing efforts due to a very long
development cycle
Implementation challenges
Overcoming product immaturity and lack of
real testing performed on the code base
Making sure patches run against production
sites and not devstack is paramount
11
Key lessons learned
You are insane to blindly follow release
Tristan Goode, CEO at Aptira
Customers/ Use cases
10 deployments (6 of them are based on
existing offerings, 4 deployments are based
on a mix of in-house expertise and third-
party OpenStack products
Dev/ test
PoC for scalability and federation
Collaborative research
Data analytics
Aptira has been self-funded, but is looking to raise external funding to grow and own
the OpenStack service provider space in India and across Asia-Pacific.
OpenStack-compatible product
FusionSphere R3C10, the virtualization platform
within Fusion Cloud
Next release-FusionSphere R5-will be based on
all OpenStack components: compute, network,
storage, and management services
>1,000 engineers are involved in Fusion
Cloud project
Implementation challenges
Not enterprise-ready yet
Incorporating all existing enterprise-level
features into OpenStack, along with enhancing
the compatibility of underneath virtualization
platform
Key lessons learned
The ability to understand the disadvantages/
weaknesses of OpenStack is instrumental in
driving successful deployments
Addressing issues related to software upgrade
and business migration
Customers
Gaining traction in the telecom and
entertainment sectors, working with the top
three Chinese telecom carriers
More than a dozen POCs around the globe
Huawei will first bring OpenStack to enterprises and telecom customers.
The ultimate goal is to become the Openstack enterprise solution provider.
NTT Communications
13
NTT Communications will focus on enhancing service functions
to support intranet users within and between business organizations.
Product verification based on OpenStack-
components
~80 engineers and 450 patches
Use cases - office migration and flexible virtual
office environment
Targeting Arcstar Universal One (VPN) users, the
company has recently released a cloud service based
on OpenStack.
Implementation challenges
Error handling and transaction processing
Multi-plugin for Neutron to address issues
associated with concurrent use of multiple
modules
Constant bug-fixing during internal testing

Key lessons learned
Community-based OpenStack lacks error processing
function, which is indispensable for service providers
Community-based development effort is crucial to
minimize development costs

Customers
It was released less than a week.



14
eNovance are currently expanding its operations worldwide, replicating
business processes in many different geographies. Primary focus for 2014
is to grow its existing customer base outside of Europe.
eNoCloud
The continuous delivery of new features could be
challenging- it took approximately three months to
setup eNocloud, but one year to reorganize
engineering around the notion of continuous
delivery
Entire development team (~25) involved in various
OpenStack projects
One of the top ten contributors to OpenStack for
the past three releases
Implementation challenges
OpenStack feature gaps still exist
Managing growth while maintaining core values,
and being able to evolve at its own pace
Key lessons learned
Stay agile
Think out of the box - enforce its belief in open
source without becoming just another service
company

Customers
Some 200 clients ( consulting, managed services,
and hosting)
Safran/Morpho-OpenStack private cloud
Cloudwatt-Openstack public cloud
Consider eNoCloud as the demonstrator of its
technology know-how, and a way to validate its
development
The missing links: Who should take the lead?
15
Accelerating the commercial use of OpenStack using a well-defined,
secure framework and standardized management processes.
Missing links
OpenStack Talent
Limited functionality
Fragmentation within the OpenStack community
Proven productions are scarce
Industry
consortia?
The
Foundation?
Large
Enterprises?
Individual
community
users?
Leading
vendors/service
providers?
Key takeaways
Enterprise interest and demand have emerged as a
main drivers for new projects.
The crossover and convergence of enterprises and
service providers offers vendors an opportunity to
serve both markets.
There are a handful of commercial deployments in
Asia-Pacific, and the market for OpenStack is still
defining itself.
Global revenues for OpenStack-based offerings are
relatively small today, but we expect them to grow
rapidly.
Demand for OpenStack expertise and experience
presents itself as a major challenge.

16

Publications
Long-form report: The OpenStack Tipping Point, April 2013
Market Insight report: OpenStack-related business revenue to exceed $1bn
by 2015 as commercial models evolve, October 22, 2013

Questions? Comments?
agatha.poon@451research.com