Welcome!

Related Topics: @CloudExpo, Open Source Cloud

@CloudExpo: Blog Post

Balance Between User Base and Community in OpenStack and OpenNebula

Market Share versus Investment

This post is a reprint of a post at OpenNebula.org

In our last post "OpenNebula vs. OpenStack: User Needs vs. Vendor Driven" we stated that"OpenStack penetration in the market is relatively small compared with the investment made by vendors and VCs". We have received several emails from people asking for the numbers that support this statement. This conclusion arises from the comparison between OpenNebula and OpenStack user base, a well as between the resources invested in development and marketing by each of them.

User Base
OpenStack is experiencing explosive growth in the number of developers, with more than 200 companies contributing code, 15,000 people and 850 companies involved according to its web site, and almost 1,000 developers involved in its latest release. However, the number of users and the size of the deployments are not that impressive, at least compared with this software development force.

Let us compare the user base of OpenNebula and OpenStack by using their latest surveys:

  • According to the most recent OpenStack user survey (November 2013), they received 827 responses, and 387 were deployments. In the 80% of these deployments the number of nodes was below 100, and only 11 deployments with more than 1,000 nodes (hypervisors).
  • On the other hand, in the latest OpenNebula survey (November 2012), OpenNebula received 2,500 responses, 820 of these were deployments. In the 70% of these deployments the number of nodes was below 100 nodes, and 99 deployments have more than 500 nodes (hypervisors).

nodes

We avoid giving references to featured users, both projects could put on the table good references of large-scale cloud deployments. The surveys show that OpenNebula and OpenStack are achieving a similar level of deployment. However, OpenStack presents a ratio 1/40 between deployments in the survey and number of people involved, a ratio 1/3 between deployments and developers, and a ratio 1/2 between deployments and companies involved. Not every company contributed to the survey?.

We could also use the volume of web searches according to Google Trends to compare the impact of both projects. The ratio in the number of searchers between OpenNebula and OpenStack during the last 12 years is 1/20. This mainly reflects the successful marketing of OpenStack. OpenNebula mainly invests its resources in developing technology and serving its users, being really vendor agnostic and free of marketing.

There is also a quarterly comparative analysis of the community activity (mailing lists traffic mostly) of the four main open-source cloud management platforms: OpenStack, OpenNebula, Eucalyptus and CloudStack. The number of threads and participants in OpenStack is one order of magnitude higher than in OpenNebula. This mostly reflects a higher number of developers. Moreover, it is also worth noting that development coordination in OpenNebula is done through a redmine portal and not through a mailing list.

Resources Invested
We conservatively estimate the investment in OpenStack in approximately 300 million per year:

  • OpenStack Havana involved 950 developers almost completely hired by vendors. This is approximately $150 Million per year
  • OpenStack Foundation budget is approximately $10 Million per year
  • Just seven of the many start-ups involved in OpenStack have raised $120 million from VC. Assuming this is for 3 years. This is approximately $40 million per year
  • There are other direct costs from other many companies, there are almost 1,000 companies involved, that are also allocating resources to development, training, documentation..., a big overhead in indirect costs, and of course opportunity costs.

So $300 million per year is a good conservative estimate. We have seen other estimations above $0.5 billion per year, some reaching to $1 billion per year. In any case, over a few years, it's billions. Are these companies getting this money back?. I see VC's starting to ask "Where's our future money?". Summarizing, a relatively small user base, and so penetration in the market, compared with the investment made by vendors and VCs. OpenNebula, with a budget at least two orders of magnitude lower, is achieving a similar user base. You can draw your own conclusions.

More Stories By Ignacio M. Llorente

Dr. Llorente is Director of the OpenNebula Project and CEO & co-founder at C12G Labs. He is an entrepreneur and researcher in the field of cloud and distributed computing, having managed several international projects and initiatives on Cloud Computing, and authored many articles in the leading journals and proceedings books. Dr. Llorente is one of the pioneers and world's leading authorities on Cloud Computing. He has held several appointments as independent expert and consultant for the European Commission and several companies and national governments. He has given many keynotes and invited talks in the main international events in cloud computing, has served on several Groups of Experts on Cloud Computing convened by international organizations, such as the European Commission and the World Economic Forum, and has contributed to several Cloud Computing panels and roadmaps. He founded and co-chaired the Open Grid Forum Working Group on Open Cloud Computing Interface, and has participated in the main European projects in Cloud Computing. Llorente holds a Ph.D in Computer Science (UCM) and an Executive MBA (IE Business School), and is a Full Professor (Catedratico) and the Head of the Distributed Systems Architecture Group at UCM.

Latest Stories
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in ...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
"Peak 10 is a national cloud data center solutions managed services provider, and part of that is disaster recovery. We see a growing trend in the industry where companies are coming to us looking for assistance in their DR strategy," stated Andrew Cole, Director of Solutions Engineering at Peak 10, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...