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OpenStack is redefining the business model for data solutions

OpenStack is redefining the business model for data solutions

Want proof? Industry leading vendors are snatching up OpenStack based companies

This vendor-written tech primer has been edited by Network World to eliminate product promotion, but readers should note it will likely favor the submitter's approach.

IT is headed toward being something more akin to a utility service, transformed by OpenStack's open standardized cloud architecture, which will improve interoperability and render vendor lock-in a thing of the past.

Initially a solution adopted by smaller ISVs lacking the capital to build private clouds, OpenStack-based cloud solutions are shaping up to be the logical choice for large enterprise as industry leaders, including IBM, Cisco, EMC, HP and Oracle, bet on its value for defining the next-generation model for business computing.

These industry giants have been snatching up OpenStack-based companies over the past couple years, building up their capabilities around the architecture. IBM and Cisco are some of the latest to close deals, with their respective acquisitions of Blue Box and Piston Cloud Computing. Other relevant acquisitions include EMC's purchase of Cloudscaling, Oracle's Nimbula acquistion, and Cisco's MetaCloud acquisition.

OpenStack's value for business lies in its capacity for facilitating seamless private-to-public scalability and extensive workload portability, while removing the need to lay out capital to acquire and maintain depreciating commodity hardware.

These companies see that innovations in open clouds will inevitably win out as the premiere solution for business data management. The days of commodity hardware and internally managed datacenters are rapidly fading. With cloud services available on a pay-as-you-go basis and infrastructure as a service (IaaS) removing the need to invest in commodity hardware, customers will look at performance, pricing and quality of service as the most important factors in choosing a cloud provider, while maintaining the freedom to easily switch if a better option comes along.

OpenStack's core strength is interoperability, allowing for seamless scaling across private and public environments, as well as easier transition and connectivity across vendors and networks.

Companies like IBM and Cisco buying up OpenStack-based providers to bolster their own hybrid cloud solutions does not mean the architecture will lose touch with its open-source roots. Open standards and interoperability go hand-in-hand and are at the heart of OpenStack's unique capabilities.

What we are seeing is the maturation of OpenStack, with major names in business computing positioned to mainstream its adoption by leveraging their financial, IP, R&D resources and brand trust to meet complex demands and ensure confidence from large enterprise organizations transitioning to the cloud.

Cisco listed OpenStack's capabilities for enhancing automation, availability and scale for hybrid clouds as playing a major role in its new Intercloud Network, while HP is utilizing OpenStack to facilitate its vendor-neutral Helion Network, which will pool the services of Helion partners to offer global workload portability for customers of vendors within their network.

Adoption of OpenStack by these providers signals a major shift for the industry, moving away from dependence on hardware sales and heavy contractual service agreements to a scalable IaaS utilities model, where customers pay for what they need when they need it and expect it to just work. Providers may need to shoulder the burden of maintaining datacenters but will reap the reward of pulling the maximum value from their commodity investments.

Interoperability may seem like a double-edged sword for companies that were built on their own software running exclusively on their own hardware. But the tide is shifting and they realize that closed platforms are losing relevance, while open architecture offers new opportunities to expand their business segments, better serve customers, and thrive with a broader customer base.

Cisco recently added new functionalities for its Intercloud offering, extending virtual machine on-boarding to support Amazon Virtual Private Cloud and extending its zone-based firewall services to include Microsoft Azure. Last year, IBM partnered with software and cloud competitor Microsoft, each offering their respective enterprise software across both Microsoft Azure and the IBM Cloud to help reduce costs and spur development across their platforms for their customers. OpenStack furthers these capabilities across the quickly expanding list of providers adapting the cloud architecture, enabling a vendor-agnostic market for software solutions.

Open standardized cloud architecture is the future of business IT, and OpenStack currently stands as the best and only true solution to make it happen. Its development was spurred by demand from small ISVs who will continue to require its capabilities and promote its development, regardless of whether large enterprise service providers are on board.

However, its inevitable development and obvious potential for enterprise application is forcing the hand of IT heavyweights to conform. Regardless if they'd prefer to maintain the status quo for their customers, the progress we've seen won't be undone and the path toward vendor neutrality has been set.

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