OpenStack Cloud Business Tops $600M in 2013, Over $1B by 2015
The open-source cloud platform is big business already and set to get even bigger in the years ahead.After just three years in the market, the open-source OpenStack cloud platform is already maturing rapidly and generating revenue for its backers. A new market sizing report from analyst firm 451 Research pegs the OpenStack market as being on track to generate $600 million in revenue in 2013, with more than $1 billion in revenue forecast by 2015. OpenStack got started in 2010 as an open-source cloud computing project led by Rackspace and NASA. The initiative now includes some of the biggest names in the IT industry, including IBM, Cisco, Dell, Hewlett-Packard and AT&T, among others. The OpenStack Havana milestone update was released last week, furthering the technological capabilities of the platform and the ambitions of the vendors that support it. Service providers are a key group that can benefit from OpenStack. According to the 451 Research report, service providers will account for $486 million of total OpenStack market revenue in 2013. And that number will grow to $680 million in 2014, according to 451 Research forecasts. In 2013, OpenStack co-founder Rackspace represents approximately 70 percent of the total OpenStack 2013 market share. "Given that Rackspace has had its OpenStack powered cloud products available in the market for over a year and well before any other OpenStack product/service was available, it makes sense that a research firm estimating market size would conclude that Rackspace has a large share of market," Scott Sanchez, director of strategy at Rackspace, told eWEEK.