AT&T is on track to virtualize 75 percent of its network by 2020, using OpenStack. ![]() The technology is used increasingly as a platform that enables network-functions virtualization, or NFV.Īmong the big carriers that have embraced OpenStack is AT&T, which spoke about its cloud direction at the Open Networking Summit (ONS) in March. Operators are also adopting OpenStack for many reasons. ![]() Why Amazon and OpenStack Continue to Thrive in a Complex Cloud World In 2016 so far, midmarket cloud vendors, including Dreamhost and GoDaddy, have both announced the general availability of OpenStack public cloud services. With OpenStack, organizations can run their own hardware, wherever they choose.Īlthough Rackspace is retreating somewhat from the public cloud space, others are not. While organizations can choose to run private cloud deployments with AWS, they are always still running on Amazon’s hardware in Amazon data centers. Rackspace is seeing growth in the private cloud marketplace for OpenStack, an area in which AWS is somewhat lacking. “We are shifting engineering and marketing resources from our OpenStack public cloud to our new offers, including our OpenStack private cloud, which is growing in the high-double digits,” Rhodes said. During Rackspace’s fourth quarter and full year fiscal 2015 earnings call, CEO Taylor Rhodes stated that the company’s focus is changing. Yet, in 2016, Rackspace has somewhat retreated from its public cloud focus. In fact, a key feature in nearly every major OpenStack release has been various forms of API compatibility with AWS in order make it easier for organizations to adopt and potentially interoperate with AWS.įor most of the last six years, though, when it comes to the public cloud, Rackspace has been the primary vendor offering OpenStack. When OpenStack got started in 2010, the early promise was that it would serve as a viable AWS competitor. In the public cloud market, Amazon is going toe-to-toe with Google and Microsoft, in what often feels like a race to the bottom in terms of price. What isn’t always clear, though, is which cloud provider to choose and whether a private or hybrid cloud approach is appropriate for a given organization. “Whether you are a startup founded yesterday or a business that has been around for 140 years, the cloud is providing all of us with unbelievable opportunities to reinvent our businesses, add new customer experiences, redeploy capital to fuel growth, increase security, and do all of this so much faster than before,” Bezos wrote.Īt this point, the business value of the cloud is something that many organizations understand. In the second quarter, AWS reported net sales of $1.8 billion, and in the third quarter, Amazon’s cloud business reported revenue of $2.1 billion. “AWS is bigger than was at 10 years old, growing at a faster rate, and-most noteworthy in my view-the pace of innovation continues to accelerate-we announced 722 significant new features and services in 2015, a 40 percent increase over 2014,” Bezos wrote.Īmazon first began to publicly disclose its AWS revenue in April 2015, when cloud revenue was reported at $1.57 billion. In a letter to shareholders, published April 5, Amazon founder and CEO Jeff Bezos commented on the rapid growth of AWS. ![]() That is why, at this point in 2016, both continue to thrive. This past week, OpenStack released its 13th update, dubbed Mitaka, and boasts the support of some of the largest IT vendors on the planet.Īlthough Amazon and OpenStack are competitive in some ways, in others, they aren’t. On the other side of the story is the OpenStack cloud platform that emerged in 2010 as an open-source community-built alternative to AWS. Now the company is on track to generate $10 billion in annual revenue from its Amazon Web Services (AWS) cloud business. A decade ago, the cloud was not a computing term and Amazon was best known as an online retailer of consumer goods like books.
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