VMware Worried About Rackspace, OpenStack Cloud Gains?
VMware vs. OpenStack: Plenty of pundits are debating the merits of each platform for cloud computing. Now for a twist: Within the cloud storage market, the recent hot rumor involves VMware (VMW) potentially buying Rackspace (RAX) in order to disrupt potential competition from OpenStack, the open source cloud platform. Here’s a reality check from The VAR Guy.
Over time, some pundits believe, OpenStack could potentially upend VMware’s core virtualization business — which is the underlying platform for many public and private cloud initiatives. The big question: Would VMware really consider buying out Rackspace (promoter of OpenStack) just to gain control of OpenStack?
Answer: The VAR Guy seriously doubts it. Rackspace, after all, does not control OpenStack. More than 100 companies are now lined up behind OpenStack. And the HP public cloud strategy, expected to be unveiled in less than two months, apparently will leverage OpenStack.
VMware Vs. Cloud Partners?: No Way
Plus, VMware buying Rackspace would mean that VMware would compete with hundreds of cloud services providers — the very companies that are VMware’s next-generation customers. Indeed, VMware last month announced a service provider licensing agreement with Ingram Micro. The deal is designed to help more Ingram partners (VARs and MSPs) leverage VMware in a recurring revenue model.
Still, alleged competition between VMware and OpenStack seems to be emerging. “VMware Buying Rackspace” rumors continue to pop up from time to time. And Rackspace seems to be the subject of takeover rumors every month, which has helped to make Rackspace shares a top performer on the Talkin’ Cloud Stocks Index.
Manhattan Chatter
The latest VMware-Rackspace speculation surfaced during a small channel partner gathering in New York yesterday, which was led by the president of a well-known cloud storage company. The executive said he had heard the VMware-Rackspace marriage rumors last month.
So has The VAR Guy. And The VAR Guy doesn’t believe the rumors… for all the reasons noted above. Side note: The VAR Guy did not contact Rackspace or VMware about the rumors because neither company typically comments about such speculation — though Rackspace has said numerous times that the company is not for sale.
