Why Billion Dollar Red Hat and OpenStack Need to Dance

On Februar 29, 2012, Red Hat’s fiscal year came to a close and they are expected to cross an important milestone; becoming the first billion dollar commercial open source software company.  Whether or not you believe they are the first open source software company to cross this mythical threshold is inconsequential, the fact is Red Hat has done it.  With all my sincerest respect and admiration, I tip my “red hat” to this historical accomplishment.

With all due respect to other Linux distributions such as Canonical (Ubuntu) and SUSE, Red Hat is the de facto standard for Enterprise Linux.  They have a reputation for building a quality product, have a stable of certified applications from leading ISVs, maintain a “Cisco-like” army of certified professionals, and provide long term support for their products.  Unlike the early years of their business, Red Hat’s biggest threat does not come from a new operating system challenger ala Microsoft; it comes from virtualization vendors with all eyes on VMware, Microsoft, Citrix, and Oracle.

The good news is that Red Hat foresaw this threat and purchased Qumranet in 2008, which created kernel-based virtual machine or KVM.  The bad news is while VMware grew to a virtualization powerhouse, it took Red Hat until January 2012 to release a real challenger within Red Hat Enterprise Virtualization 3.0 (RHEV3). With this release, the next chapter in Red Hat’s history is unfolding within the Cloud era.

Meanwhile, OpenStack is nothing short of an amazing story of the power of open source and of community.  In July 2010, Rackspace and NASA jointly launched OpenStack and less than 2 years later OpenStack has the backing of over 150 companies with names like Dell, AT&T, HP, Citrix, and more.  Additionally, you’ll find the likes of Canonical and SUSE, but Red Hat is noticeably absent.  However, is Red Hat really that far away?

All one has to do is open OpenStack’s Administrator Manual and you will find instructions on “Installing OpenStack Compute on Red Hat Enterprise Linux 6”.  Also, looking closely at the list of contributing companies you will find Gluster (one of my favorites), a project acquired by Red Hat on the list.

In the battle for virtualization supremacy, OpenStack is a vital weapon against the competition.  Sure, Red Hat has Aeolus and Deltacloud, but what would the world look like with a RHEO (Red Hat Enterprise OpenStack) edition?   Wouldn’t such a release accelerate OpenStack’s rise in the Enterprise while opening up a new revenue source for Red Hat?

Before any of this can happen, Red Hat and OpenStack must dance.  Sure, there are reports that early on Red Hat was invited by Rackspace to join OpenStack but they refused due to its governance model.  However, things have changed as Rackspace has transitioned management of OpenStack to an independent OpenStack Foundation with a defined mission and structure.  Can Red Hat and OpenStack unite under this new model?

Perhaps the final piece of this puzzle will end with a Red Hat acquisition within the OpenStack ecosystem.  Without naming names, there are at least 2 attractive take-over targets that would give Red Hat the development expertise and OpenStack credibility to be a force.

As John Lennon famously wrote and performed in “Imagine”; “You may say I’m a dreamer, but I’m not the only one, I hope some day you’ll join us, And the world will be as one.”

Red Hat and OpenStack, let’s dance!

Originally posted on http://blog.zenoss.com

OCI’s Relevance within an Amazon and OpenStack World

Last week, yet another Cloud initiative began as the Open Cloud Initiative (OCI) launched from OSCON 2011 in Portland, Oregon.  The OCI bills itself as a non-profit organization to advocate standards-based Open Cloud Computing.   The OCI hopes to provide a legal framework based on the Open Cloud Principles Document (OCP) and apply them to Cloud computing products and services.

While conspiracy theorists will call this the “One Cloud” movement, the reality is there is little to worry about.  An OCI without Amazon, Microsoft, Verizon, AT&T, and more isn’t really an assembly of “leaders of Cloud computing” but more of an ideology.  Academics and Open Source aside, there is very little motivation for Cloud providers to work together other than standard connectivity and a few APIs.

The biggest force in promoting the OCI’s self-proclaimed slogan of “A non-profit advocate of open cloud computing” is actually another truly powerful Open Source Movements called OpenStack.  As OpenStack adoption continues to increase, they may become the defacto standard for building Clouds.  OpenStack is the core platform that allows Enterprises and Service Providers to build value-added software and/or services to create new and unique offerings or businesses to their customers.

It is the difference between “talking” and “action”.  While some in this industry like to debate the merits of Cloud computing and interoperability, others are creating and innovating.  I have already mentioned the OpenStack movement and its importance to Cloud computing, and no conversation on this subject would be relevant without talking about Amazon.

Amazon is rapidly innovating within Cloud computing while continuing to disrupt the industry, drop their published prices, and make money.  Instead of getting caught up in all this debate, Amazon is setting their agenda and putting the entire industry on the defensive.  In fact, their rate of innovation is astounding while their rate of adoption is actually accelerating.  What is their motivation to interoperate with other Cloud providers?  As long as they have open and defined APIs into the private clouds (VMware, Microsoft, Xen, KVM) of their Enterprise customers, then they are all set.

Altruistic goals cannot be confused with the capitalistic reality of the world we live in.  The OCI may have great intentions, but they plenty of work to do to make themselves relevant within an Amazon and OpenStack world.