Welcome!

FinTech Journal Authors: Yeshim Deniz, Liz McMillan, Pat Romanski, Zakia Bouachraoui, Elizabeth White

Related Topics: @CloudExpo, Open Source Cloud, Containers Expo Blog, @DXWorldExpo, SDN Journal, FinTech Journal

@CloudExpo: Article

Changing Your Business Model with OpenStack

The expanding features available in OpenStack shows that momentum is building behind this initiative

In a recent presentation to Managed Service Providers (MSPs), I stressed that embracing standards had to be on their list of strategic priorities. Cloud solution success is based on a successful assembly of services from multiple providers for which standards play a key role. Included on that list should be OpenStack, the hottest open source project in cloud computing that has drawn the investment and attention of leading IT vendors like AT&T, Dell, IBM, HP and Red Hat. So, should you care about OpenStack?

Cloud-based disruptions in the IT industry began when Amazon started offering computing resources via its Amazon Web Service (AWS) around 2005. Citrix’s Cloud Platform (based on Apache CloudStack) had an early start in infrastructure standards but does not have a growth that OpenStack is enjoying. For virtualization, VMware is the gold standard for customers who wish to automate their datacenters and are actively attempting to complete the transformation to private clouds using their Software Defined DataCenter approach.


The OpenStack Foundation was the proud Diamond Sponsor of 11th Cloud Expo (2012)

As enterprises are being transformed by cloud computing, it becomes imperative for organizations to understand how to leverage it and respond with solutions in the marketplace. However, the significant leads that Amazon and VMware hold in their respective segments make it difficult for a single vendor to catch up, regardless of the effort invested. When Rackspace and NASA announced their cloud open source initiative followed by the launching of the OpenStack Foundation, some traditional IT vendors were left with few alternatives but to throw their weight behind OpenStack to provide alternatives to Amazon and VMware.

The expanding features available in OpenStack (as well as the growth of the size of the OpenStack summit held every six months) shows that momentum is building behind this initiative. Every IT manager should recognize OpenStack as an effective means of responding to the disruptive forces of cloud computing itself. With the movement towards automated systems, there is a strong need for organization to provide relevant information to their ecosystem that can be consumed by APIs.

As a result, every organization has to think of itself as a software company to differentiate itself from the competition. Leveraging cloud computing resources offers the capability to launch disruptive offerings at will with small investments and at lightning speed. The potential for a business to be disrupted by competitors appearing out of nowhere should give management a strong incentive to stay abreast of cloud computing.

How Can Openstack Transform Your Enterprise?
Let’s assume you are a small business manufacturing parts for an automotive company. As such, you do not have the capital to invest much in in-house IT equipment since though your design workload needs are very high, high performance IT is needed only sporadically. When required, you hire outside experts at premium costs to run design simulations for you.

There are a couple of engineers on your staff who think they can improve your products, but they need significant resources to run design simulations. They also approach management with the idea to leverage cloud computing resources in order to start some initiatives with in-house talent. While this has never been done in your organization you want to change the culture and to encourage taking measured risks.

Cloud Brokers: Beyond OpenStack/Private Clouds
You authorize your engineers to evaluate options using cloud delivered resources leveraging OpenStack. They rent software and infrastructure, utilizing resources delivered over the cloud. At the same time, they use idle resources from your own data center to complete certain tasks.

If there is no urgency to obtain results, you can utilize external resources at very low costs through cloud brokers. If results are time-sensitive, you have the capability of bursting to multiple external clouds to get more finish more quickly, as well as gaining much better reliability. The option of leveraging external computing resources at extremely low costs should be evaluated for changing existing business models.

Recent surveys show that CEOs see technology as the key differentiator enabling a business to compete in the future. Organizations need to arm themselves with the skills that allow them to meet future challenges. Every organization needs to think like a start-up, take measured risks, and become first movers towards disrupting the markets where they already enjoy a presence. Cloud computing powered by OpenStack should be evaluated to meet these business goals.

This post was first published on Robustcloud.com. Republished with permission.

More Stories By Larry Carvalho

Larry Carvalho runs Robust Cloud LLC, an advisory services company helping various ecosystem players develop a strategy to take advantage of cloud computing. As the 2010-12 Instructor of Cloud Expo's popular Cloud Computing Bootcamp, he has already led the bootcamp in New York, Silicon Valley, and Prague, receiving strong positive feedback from attendees about the value gained at these events. Carvalho has facilitated all-day sessions at customer locations to set a clear roadmap and gain consensus among attendees on strategy and product direction. He has participated in multiple discussion panels focused on cloud computing trends at information technology events, and he has delivered all-day cloud computing training to customers in conjunction with CloudCamps. To date, his role has taken him to clients in three continents.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...