As the interest of Chinese organizations to adopt cloud solutions for business transformation is increasing, OpenStack-based cloud solutions have become the hot topic in the China market in 2014. I believe that 2015 will be the key year for OpenStack and it will rapidly develop in China. Here’s why:
Government policy support. The Ministry of Industry and Information Technology (MIIT) of China held the first China Open Source & Cloud Computing Summit (COSCCS) on December 11. At this event, the Chinese government for the first time officially declared its intention to support OpenStack ecosystems and encourage state-owned enterprises (SOE) to use OpenStack-based cloud products: “…through OpenStack, we can contribute to a good business model…” said the deputy minister of MIIT. Forrester believes that there will be more and more Chinese SOEs and local governments that will invest in OpenStack-based cloud project in 2015.
OpenStack is mature as a private cloud solution. With the launch of the Juno version in October 2014, OpenStack addressed many upgrade concerns, making it easier to roll back a failed deployment and ensure thorough cleanup. It also added a record 3,219 bug fixes and enterprise features, such as storage policies, provisioning of Hadoop and Spark, as well as network functions virtualization (NFV). Another specific advantage is that Chinese organizations are not facing the challenge to upgrade from early releases of OpenStack because the China market started deployment of OpenStack mostly from 2014 onwards.
At its Paris summit, the OpenStack community celebrated the 10th release of what has become the leading open source Infrastructure as a Service cloud platform software. What stood out about this latest iteration and the progress of its ever-growing ecosystem of vendors, users and service providers was the lack of excitement that comes with maturity. The Juno release addressed many challenges holding back enterprise adoption to this point and showed signs that 2015 may prove to be the year its use shifts over from mostly test & dev, to mostly production. Forrester clients will find a new Quick Take on OpenStack that analyzes the state of this platform and recommended actions here. In this blog post we look at looming questions facing the OpenStack community that could affect the pace and direction of its innovation.
On October 20 at TechEd, Microsoft quietly slipped in what looks like a potential game-changing announcement in the private/hybrid cloud world when they rolled out Microsoft Cloud Platform System (CPS), an integrated hardware/software system that combines an Azure-consistent on premise cloud with an optimized hardware stack from Dell.
Last month I attended Huawei’s annual Global Analyst Summit, for the requisite several days of mass presentations, executive meetings and tours that typically constitute such an event. Underneath my veneer of blasé cynicism, I was actually quite intrigued, since I really knew very little about Huawei. And what I did know was tainted by popular and persistent negatives – they were the ones who supposedly copied Cisco’s IP to get into the network business, and, until we got better acquainted with our own Federal Government’s little shenanigans, Huawei was the big bad boogie man who was going to spy on us with every piece of network equipment they installed.
Reality was quite a bit different. Ancient disputes about IP aside, I found a $40B technology powerhouse who is probably the least-known and understood company of its size in the world, and one which appears poised to pose major challenges to incumbents in several areas, including mainstream enterprise IT.
So you don’t know Huawei
First, some basics. Huawei’s 2013 revenue was $39.5 Billion, which puts it right up there with some much better-known names such as Lenovo, Oracle, Dell and Cisco.
Microsoft is officially launching the commercial operations of its cloud offerings in China today. It’s been only nine months since Steve Ballmer, the former CEO of Microsoft, made the announcement in Shanghai that Windows Azure — now renamed Microsoft Azure — would be available for preview in the Chinese market.
I call that Episode I of the China Cloud War. In the report that I published at the time, “PaaS Market Dynamics in China, 2012 To 2017”, I made three predictions — predictions that are now being fulfilled. More global players are joining the war; customers have gotten familiar with cloud concepts and are planning hybrid cloud implementations for their businesses; and traditional IT service providers have started to transform themselves into cloud service providers.
I talked with Microsoft and Citrix last week, and I strongly believe that Episode I has ended and Episode II has just begun. In the battle for partner ecosystems and real customer business, here are the three major plots that enterprise architects and CIOs in China should watch unfold:
The thrree kingdoms will fight with the gloves off. In my blog post last year, I described three kingdoms of global vendors in Chinese cloud market: Microsoft, Amazon, and vendors behind open source technology like OpenStack and CloudStack.
Microsoft is leading the market as the first company in China to provide unified solutions for public cloud, private cloud, and hybrid cloud across infrastructure (IaaS) and middleware (PaaS). This builds on its deep understanding of enterprise requirements, its massive developer base, and the ease of use on the Windows platform.
As the new year looms, thoughts turn once again to our annual reading of the tea leaves, in this case focused on what I see coming in server land. We’ve just published the full report, Predictions for 2014: Servers & Data Centers, but as teaser, here are a few of the major highlights from the report:
1. Increasing choices in form factor and packaging – I&O pros will have to cope with a proliferation of new form factors, some optimized for dense low-power cloud workloads, some for general purpose legacy IT, and some for horizontal VM clusters (or internal cloud if you prefer). These will continue to appear in an increasing number of variants.
2. ARM – Make or break time is coming, depending on the success of coming 64-bit ARM CPU/SOC designs with full server feature sets including VM support.
3. The beat goes on – Major turn of the great wheel coming for server CPUs in early 2014.
4. Huge potential disruption in flash architecture – Introduction of flash in main memory DIMM slots has the potential to completely disrupt how flash is used in storage tiers, and potentially can break the current storage tiering model, initially physically with the potential to ripple through memory architectures.
At this time 12 months ago, we released our predictions for what changes in the market would be brought about by the maturing of cloud computing. Looking back on the year, we can now see that, while the promise of a maturing market was strong, maturity was by no means uniform and thus our predictions proved to be a mixed bag.
1. We’ll finally stop saying that everything is going cloud. Grade: A. While the C-suite might still be preaching this as a long-term vision, we got real about what should and should not go to the cloud given its current maturity and capabilities. The guiding principles of architecture and economic model served as sufficient evidence that many traditional workloads have no business on the public cloud. And we started to see early signs of enterprises recognizing that the private cloud isn’t the new name for virtualization but is indeed a separate environment and not all apps in the data center are destined for this pool.
The classic work of Chinese historical fiction “Romance Of Three Kingdoms” describes the history of China after the Han dynasty. This work focuses on three power blocks that fought against each other in an attempt to be the dominant kingdom. After my discussions with many users and vendors at the OpenStack Summit 2013, I see an analogy between these three kingdoms and the evolution of the IaaS market in China as I described it in my report “PaaS Market Dynamics In China, 2012 To 2017” early this year.
Three categories of players are emerging in public cloud market in China, and similar to the Three Kingdoms, these players will fight against each other and collaborate at the same time, accelerating both the adoption and the maturing of cloud solutions in Chinese market.
State of Shu: Amazon Web Services. The king of Shu was the descendant of Han dynasty before the era of the Three Kingdoms; because of his “royal blood,” he had many supporters and followers to fight against the other two kingdoms.
Amazon.com is in a similar situation: It has very good reputation among architects and developers in China. However, Amazon’s promotion activities are lagging. Amazon is trying to expand its cloud territory into Chinese market by building a data center in Beijing and recruiting local personnel. However, its relationship with the government is not as good as Microsoft’s, and Amazon’s ambition to launch AWS in China has been slowed down due to local regulations.
State of Wu: Microsoft Windows Azure and its alliances. The state of Wu is competitive because it has the natural advantage of the Yangtze River, helping it defend against invasion and expand its territory.
Ten years ago, open source software (OSS) was more like a toy for independent software vendors (ISVs) in China: Only the geeks in R&D played around with it. However, the software industry has been developing quickly in China throughout the past decade, and technology trends such as service-oriented architecture (SOA), business process management (BPM), cloud computing, the mobile Internet, and big data are driving much broader adoption of OSS.
OSS has become a widely used element of firms’ enterprise architecture. For front-end application architecture on the client side, various open source frameworks, such as jQuery and ExtJS, have been incorporated into many ISVs’ front-end frameworks. On the server side, OSS like Node.js is becoming popular for ISVs in China for high Web throughput capabilities. From an infrastructure and information architecture perspective, open source offerings like Openstack, Cloudstack, and Eucalyptus have been piloted by major telecom carriers including China Telecom and China Unicom, as well as information and communication solution providers like Huawei and IT service providers like CIeNET. To round this out, many startup companies are developing solutions based on MongoDB, an open source NoSQL database.
Familiarity with OSS is becoming a necessary qualification for software developers and product strategy professionals. Because of the wide usage of OSS among both vendors and end users, working experience and extensive knowledge with OSS is becoming a necessary qualification not only for software engineers, but also an important factors for product strategy professionals to establish appropriate product road maps and support their business initiatives.
At the OpenStack Summit in Portland last week, the open-source cloud platform got real, to echo Forrester’s cloud team predictions for 2013. At the busy gathering attended by over 2,400, suits mingled effortlessly with hoodies and deep-tech design committee meetings were sandwiched between marquee-name customers sharing success stories. Three core themes drove the show, as outlined by Jonathan Bryce in the opening keynote: the OpenStack technology platform has matured, the ecosystem is vibrant, and the global user footprint now includes enterprise customers doing real business.
The show followed on the heels of the Grizzly release, the 7th release of the OpenStack platform. Along with stronger support for VMware and Microsoft hypervisors, Grizzly widens block storage options and includes 10+ new enterprise storage platform drivers and workload-based scheduling. A wide range of new network plugins expand the platform’s software-defined networking options and a sexier Dashboard to access, provision and automate resources.