OpenStack Cloud Business Tops $600M in 2013, Over $1B by 2015

By Sean Michael Kerner  |  Posted 2013-10-24 Print this article Print

"We included Nebula in our estimate as it offers a purpose-built hardware and software platform for OpenStack," 451 Research's Sadowski said. "As for Cisco, IT or networking hardware that could be utilized in any environment was not included in our latest estimate."

As the market matures and major equipment providers begin to break out OpenStack-specific revenues, 451 Research will evolve its OpenStack estimates, Sadowski said.

Future Growth

OpenStack Foundation Chief Operating Officer Mark Collier told eWEEK that he likes the 451 Research forecast, but he thinks there is even more room for overall growth.

"If there is one area that I think might grow even faster than forecast, it would be public clouds, due to the number of telcos and cloud hosting companies expected to launch services over the next year across the globe," Collier said.

Rackspace's Sanchez is also very optimistic about continued acceleration for OpenStack in the coming years. He noted that the growth of the OpenStack ecosystem over the past three years has been nothing short of incredible.

"When you get the top vendors and top users in a large number of segments and industries all working together, a big market for related products and services develops," Sanchez said. "There is no doubt in my mind that the growth of the overall OpenStack market will continue to accelerate over the next 12-18 months."

Even with the rapid growth of OpenStack and its future optimism, in terms of revenue, it still has some distance to cover before it displaces the current industry leader—Amazon.

"The OpenStack platform has an impressive roster of industry supporters and a vibrant community of developers, but it has a long way to go before it unseats Amazon Web Services in terms of customers, or revenue," 451 Research's Sadowski said.

Sean Michael Kerner is a senior editor at eWEEK and Follow him on Twitter @TechJournalist.


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