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OpenStack is redefining the business model for data solutions

Orlando Bayter, CEO, Ormuco | Aug. 14, 2015
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.

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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