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 Channel Futures

Cloud


Can Red Hat Hijack OpenStack (In A Good Way)?

  • Written by The VAR Guy 1
  • July 12, 2013

Now that Red Hat Enterprise Linux OpenStack Platform is available, The VAR Guy has some advice for the open source company: Red Hat (RHT) needs to hijack open stack and the open source cloud conversation -- for the good of channel partners. Here's why.

Now that Red Hat Enterprise Linux OpenStack Platform is available, The VAR Guy has some advice for the open source company: Red Hat (RHT) needs to hijack OpenStack and the open source cloud conversation — for the good of channel partners. Here’s why.

As The VAR Guy’s Chris Tozzi reported earlier this week: Red Hat will be building a partner program around its OpenStack offering, beginning with “a small set of pilot solution provider and systems integration partners in select geographies” and scaling up from there.

That’s fantastic news as OpenStack enters its third chapter.

History Lesson

The story so far involves…

Chapter 1: Rackspace (RAX) and NASA dominated this chapter. The two organizations were widely viewed as OpenStack pioneers — educating everyone and anyone possible about the open source platform.

Chapter 2: This chapter started in September 2012, when the OpenStack Foundation launched. The move attracted scores of partners, developers and even potential customers to the discussion table.

The OpenStack ecosystem reached a tipping point during this chapter — but problems also tend to crop up during this type of group collaboration stage. Big vendors like Dell, HP and IBM each vowed to launch OpenStack-based cloud, but Dell has since abandoned that plan. And numerous OpenStack distributions — like the early days of Linux — are popping up. Customer choice is great — but not when too many options freeze customer decisions.

Meanwhile, Rackspace is still very vocal about OpenStack but there are three problems:

  • Wall Street is worried about the company’s slowing growth.
  • Rackspace isn’t in much of a position to support corporate IT departments that deploy OpenStack on-premises.
  • Rackspace must also compete with other CSPs that offer OpenStack public clouds.

Chapter 3: During this stage, we’ll see expansion and consolidation at the same time. More companies will enter the OpenStack market. More customer deployments will occur. But ultimately, we’ll see the number of different OpenStack distributions  consolidate. And that’s a good thing. 

Deja Vu

Remember all the Linux hype from the late 1990s? Only Red Hat really managed to build itself into a $1 billion open source business. And alternatives like SUSE and Canonical’s Ubuntu have carved out nice market niches for themselves.

At the same time, channel partners (VARs, integrators, cloud services providers) have worked closely with Red Hat. And CIO surveys over the past decade have widely praised Red Hat’s ability to deliver an ROI to businesses.

Now, Red Hat OpenStack

With a ton of hard work and a little bit of luck, Red Hat can likely repeat that Linux success in the OpenStack market. Equally important, Red Hat will extend its channel partner program to promote OpenStack as a public or private cloud solution — setting up VARs to generate consulting dollars and CSPs to generate recurring revenues.

That’s exactly what OpenStack needs. 

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Channel Programs Cloud Open Source Technologies

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2 comments

  1. Avatar Bill Bickel July 15, 2013 @ 5:20 am
    Reply

    I have been following
    I have been following Openstack now for 6 months. Like the author, I also hope that Red Hat brings the same results to Openstack that they did with Linux. It is the main reason Linux is so widely used for basic server and network computing. Providing a single, stable, common version, that all the hardware and software companies, and the systems integrators, can count on, is what this market needs.
    Like the author says, it resembles the early Linux market days. This level of technology, requires a leader, since so many different pieces of the ecosystem rely on it, and need it to be consistent and available from a trusted source.
    Good stuff !

  2. Joe Panettieri Joe Panettieri July 15, 2013 @ 2:25 pm
    Reply

    Bill: I share your opinion
    Bill: I share your opinion and The VAR Guy’s opinion. I lean toward Red Hat, in particular, because the company is profitable and channel focused. Hoping their OpenStack channel partner program is something to write home about (and blog about).
    -jp

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