A Journey to OpenStack Lessons Learned from Early Adopters

A Journey to OpenStack Lessons Learned from Early Adopters

Agatha PoonResearch Manager, Global Cloud Computing

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Agenda

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 UCSNetApp FlexPodVCE VblockHP CloudSystem MatrixIBM PureSystemsDell Active System

Source: InfoPro cloud computing, Wave 5

Exciting Vendors, Technologies and Initiatives

EMC

IBM

OpenStack

Amazon.com

VMware

Microsoft

0% 5% 10% 15% 20% 25% 30% 35%

5%

8%

16%

24%

25%

29%

Source: InfoPro cloud computing, Wave 5

Growth catalystsTrustworthy

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

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Automated Network Provisioning

Automated Middleware Provisioning

Metering/ Billing Across Internal/ Ex-ternal/ Hybrid Clouds

Automated Storage Provisioning

Cloud Platform/Orchestration Stack

Cloud Performance Management/Moni-toring

Automated Server Provisioning

12%

16%

20%

24%

34%

36%

47%

6%

5%

5%

6%

18%

8%

11%

12%

6%

16%

13%

17%

14%

13%

60%

67%

57%

52%

27%

39%

26%

9%

6%

3%

5%

5%

2%

2%

In Use Now Short-term Plan Longer-term Plan Not in Plan Don't Know

On-premise, Private Cloud Platform, Management and Automation Roadmap

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/SIsOpenStack Distributors

DevOpsIT Services & TurnkeySolutionsOpenStack

Service Providers

PaaS on OpenStack

Hardware/Softwarevendors

OpenStack with other

clouds

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Global OpenStack market sizing ($m)

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%

2012 2013 2014 2015 2016

$399

$622

$895

$1,237

$1,671

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Projected revenue in 2013: By vendor type

Open-Stack

Service Providers 78%

Open-Stack dis-

tribu-tors 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 3Network service/Equipment providers 7

OpenStack distributors 4IT Services & Turnkey solutions 8

Source: 451 Research Market Monitor, October 2013

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OpenStack-based private cloud, bespoke deployment and consulting It took over a year to productize OpenStack-

based offerings It’s 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

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.

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NTT Communications

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.

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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

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The missing links: Who should take the lead?

Accelerating the commercial use of OpenStack using a well-defined, secure framework and standardized management processes.

Missing linksOpenStack Talent

Limited functionality

Fragmentation within the OpenStack community

Proven productions are scarce

Industry consortia?

The Foundation?

LargeEnterprises?

Individualcommunity

users?

Leading vendors/service

providers?

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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.

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? [email protected]