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VMware CEO: OpenStack is not for the enterprise

VMware CEO Pat Gelsinger comments are the latest in the friend/enemy relationship between VMware and OpenStack

By , Network World
August 14, 2013 03:25 PM ET
Pat Gelsinger
Pat Gelsinger, CEO, VMware

Network World - VMware CEO Pat Gelsinger says he doesn’t expect open source cloud project OpenStack to catch on significantly in the enterprise market, instead he says it’s more of a platform for service providers to build public clouds.

It’s a notion that others in the market have expressed in the past, but also one that
OpenStack backers have tried hard to shake. 

“Where is OpenStack, we believe, going to be adopted?” Gelsinger said in an interview
with Network World. “We don’t see it having great success coming into the enterprise because it’s a framework for constructing clouds. People have largely adopted and have extremely large deployments of VMware and the switching costs and so on of that are not particularly effective. Where we see it being effective though are very much in cloud providers, service providers, an area where VMware hasn’t had a lot of business in the past and thus, our strategy, we believe opens a whole new market for us to go pursue.”

[READ THE FULL INTERVIEW: VMware CEO talks software-defined data centers, OpenStack and dueling Amazon

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Despite the statement, Gelsinger also said that OpenStack is an important strategic
initiative for VMware that it is committed to supporting. VMware will work to ensure its products and services work in cloud environments based on the open source platform. And in that sense, Gelsinger says OpenStack is opening up a whole new opportunity for VMware to penetrate the service provider market, which is he says the company has not focused heavily on in the past. “We’re seeing (OpenStack) as an opportunity to extend our position,” Gelsinger said.

OpenStack backers scoff at the notion that the open source platform is not meant for
enteprises. “We've seen significant traction from service providers globally, but we've also seen significant demand for OpenStack on-premise, hosted private and hybrid cloud by both medium and large enterprises,” wrote Lauren Sell, who manages public relations for OpenStack. Bloomberg, Fidelity, Best Buy, Cisco WebEx and Comcast have all shared their experiences using OpenStack, she notes.

Some of Gelsinger’s comments could be self-serving to the company he heads up, notes cloud watcher and blogger Sam Charrington of Cloud Pulse Strategies. VMware wants to be the platform for enterprises to build their private clouds, so OpenStack can be seen as competition in that sense. Furthermore, Charrington notes that public cloud providers that use OpenStack are ultimately serving the open source platform to their entperise customers.

“Even if the operators of these OpenStack are service providers, the product, OpenStack, is for the enterprise.”

It’s still early in the OpenStack game, but the comments harken back to earlier scuttlebuts between VMware and OpenStack. VMware’s cloud chief Mathew Lodge at one point called the open source vendors “the ugly sisters” in response to claims that they are more open than VMware. Then, prominent OpenStack consultant Boris Renski publicly lobbied  against the Foundation letting VMware into OpenStack. 

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