Earlier this year, 451 Research released a Pathfinder paper ”OpenStack: Enabler of Digital Transformation – How Service Providers Can Benefit”. The paper is commissioned by SUSE and in addition to the key finding revealed by the headline, it details a range of good investment reasons, opportunities and benefits of open source cloud platforms. While the paper is addressing service providers specifically, almost all of the key findings drill down and affect end users of all sizes. So wether your multi-cloud strategy leans towards investing in an open source based private cloud, public cloud or compliant cloud, here are some opportunities and key findings you should know about.
The rate of cloud adoption is accelerated by digital transformation projects and multi-cloud appears to be the norm for most companies when outsourcing both new and existing workloads. Not every company chooses to use the global solutions provided by the hyperscalers in the cloud space and there are many reasons why. Open source software provide a number of benefits including cost efficiency, vendor neutrality, increased choice of technology and tools and the overall ability to maintain an independent approach which helps customers avoid lock-in.
The four key open source cloud platforms
The study outlines OpenStack, CloudStack, OpenNebula and Eucalyptus as the for key platforms driving the open source cloud ecosystem. Virtualisation, Orchestration and Containerization are key attributes that contribute to their appeal and determine how well they can function in a multi-cloud infrastructure. All four Cloud Management Platforms (CMPs) have strong capabilities in all areas but given its broad vendor support, adoption by large enterprises and the level of integration OpenStack is deemed to be the most mature and vibrant alternative.
Success factors in EMEA
According to the study, 24% of the global cloud computing revenue is now concentrated in EMEA and the region plays an important role, especially with GDPR. OpenStack continues to gain traction and usage is increasing as a result of platform availability, education, marketing and other factors.
As previously mentioned, this report is aimed towards service providers and it mentions a set of investment opportunities for CMP’s. If we look at our own journey and how we have developed our offerings, this list of opportunities is exactly what we have addressed, mainly through our Compliant Cloud offering.
- Large Enterprises
- Often have a better understanding of their CMP needs
- As they undergo digital transformation they will increasingly move to the cloud
- Private Cloud
- Deemed to be the majority of the CMP opportunity
- Open Stack doesn’t compare or compete with hyperscale providers but provides desired control.
- Regulated industries
- Heavy regulations may rule out proprietary cloud offerings
- Regional requirements
- Uncertainties about trusting US-based vendors
- Legislations such as GDPR put demands on data residency
A list of big news showing our direction and path during the last 18 months.
G+D Mobile Security chooses City Network as its global cloud partner
City Network launches OpenStack training program
Leading loans broker Lendo chooses City Network
One of the largest banks in Sweden chooses City Network
City Network CEO joins OpenStack Foundation board of directors
City Network expands to the middle east
Conclusions and recommendations
The report mentions OpenStack as the clear leader amongst the various open source cloud options but also the fact that open source in general requires resources and skills in-house. Other recommendations include:
- Ensuring executive buy-in
- Leveraging the open source community – for whichever platform you choose
- Offering enterprise-grade support and enhancements such as compliance, regulatory capabilities and certifications.
About Pathfinder papers
Pathfinder papers by 451 Research navigates decision makers through the issues surrounding a specific technology or business case, explores the business value of adoption, and recommends the range of considerations and concrete next steps in the decision-making process.