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Red Hat hopes to make a lot of money out of OpenStack

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April 18, 2014

Linux and open source vendor Red Hat is hoping it will make a lot of money out of its OpenStack project near the end of next year, and says it won't need the help of anybody to keep the project on track.

The company's remark as it refers to 'anybody' was meant as a jab to Linus Torvalds.

Red Hat said on Wednesday at its OpenStack summit that it will turn the data center management cloud technology into serious money toward the end of 2015.

Red Hat recently re-organized its business units to help it bring OpenStack to the next level in the enterprise segment, with the hope of creating the same lucrative market for the data center management and provisioning technology as it did for Linux five years ago.

"The next 1 1/2 year is paramount," explained Red Hat's general manager for OpenStack Radhesh Balakrishnan. "We already started ringing the cash register on OpenStack. What do we see on the horizon? A ten to fifteen x scaling potential."

For the most part, the majority of Red Hat's OpenStack deployment has been for testing and development so far, Balakrishnan added, but he expects major production, and with that major money, deployments to come along by the end of 2015.

Just like Linux itself, OpenStack will take several years to make money and Balakrishnan seemed to feel that the expectations by the press for insta-profitability are a bit unrealistic.

OpenStack launched in mid-2010 with technology donated by the NASA and Rackspace, and since then has signed up a small list of contributors including Intel, HP, Red Hat, and others.

"It's a three-plus year old startup," explained Dave Cahill, Solidfire's Director of Strategic Alliances when asked about what he saw in OpenStack's future.

VMware, he pointed out, was founded pre-2000 and didn't start to make serious money till around 2009. A lot rides on OpenStack's success as it gives company's a potentially cheap way of managing thousands upon thousands of servers without having to pay for the basic software.

"People want an easy-to-use tool to solve this and wish to get out of the VMware so-called tax," he explained. And OpenStack may just be that tool. Time will tell.

One reason why OpenStack has failed to pull in as much cash as its various corporate backers hope could be a lack of focus within the project that has led to feature-creep in some areas and a lack of development on key features like networking and scheduling elsewhere.

When we ask cloud insiders what could be done to give the project more focus, many argue that OpenStack needs a 'benevolent dictator' who would lead OpenStack development in the same way Linus Torvalds uses his opinionated persona to steer Linux development.

Though this isn't a particularly pleasant way to develop software, having a single opinionated individual dictate the direction of a project can give it focus. After all, besides Linux, many proprietary companies have grown successful by being led by a strong leader like Jeff Bezos (Amazon), Bill Gates (Microsoft) or Larry Ellison (Oracle).

Red Hat isn't convinced by this argument and argues that OpenStack's "Foundation" model of governance is sufficient. "We don't believe the need for a Linus figure," Balakrishnan said.

"Personally, if I had a choice between a reasonable set of customers and customer reasoning and someone who has a colorful personality, I'm more convinced by the other. There is also the other dimension-- Linux was just compute, now you're talking about storage and networking and compute and PaaS-- the scope gets really large for one single visionary," he added.

For OpenStack to be developed to the point of serious profitability "we need multitudes of leaders" Balakrishnan exclaimed.

For his part, Dave Cahill of Solidfire is optimistic as well, saying that the Foundation has "generally done a pretty good job" and that OpenStack won't suffer as long as the Foundation "doesn't become a standards body."

"The OpenStack Foundation gives the technical meritocracy and influencing ability to the ones driving it. If the best brains are driving it, then why worry about the personality?" argues Balakrishnan. And he might be right. We will see over time.

In other Linux and open source news

Canonical announced Wednesday that the latest long-term support release of its Ubuntu Linux distribution will be available Friday.

The South African company made the availability announcement of Ubuntu 14.04 LTS, codenamed Trusty Tahr yesterday, coincidentally alongside chief rival Red Hat holding its Red Hat Summit in San Francisco. And no, that's not a coincidence.

The server features where Canonical is keen to gain influence against Red Hat is that Ubuntu 14.04 offers new functionality such as support for the Icehouse OpenStack release, Containerization Technology Docker and ARM-64 chip support.

"We're seeing OpenStack more than anything," said Ubuntu server and cloud product manager Mark Baker. Canonical has also upgraded its Metal-as-a-Service deployment technology to add support for more dense servers, such as AMD-SeaMicro's SM-1500 and equipment from Cisco's UCS division.

There's also a series of incremental upgrades such as moving to support version 3 of the Puppet configuration management software, upgrading the Xen hypervisor to 4.4, moving to support for version 0.79 of the Ceph object storage gear, and finally supporting version 1.0 of LXC.

Non-x86 chip afficionados are also in for a surprise as well, with Ubuntu 14.04 supporting IBM's POWER 8 servers along with 64-bit ARM chips from Applied Micro.

Database system admins may be relieved to hear that Ubuntu is offering some choice here, and is wrapping in some support for MySQL 5.5 along with Maria DB 5.5, Percona XtraDB Cluster 5.5, and MySQL 5.6 into its distribution.

"Ubuntu is now the enterprise platform supported on the widest range of modern architectures- IBM POWER, ARM64, x86, and x64," Canonical said in its press release.

In other Linux and open source news

Red Hat said earlier this morning that it is lowering the price for accessing its publicly hosted OpenShift software as it struggles to come to terms with the unstable economics of the cloud. The new Bronze pricing scheme for OpenShift was announced by Red Hat in a blog post yesterday. It simply means that developers can now access an off-site version of the OpenShift PaaS (platform-as-a-service) without having to pay a monthly fee, and instead only pay for the storage that they actually use.

"Overall, Bronze brings the real power of platform as a service by making it even easier to only pay for the extra resources you want without a monthly platform fee," said Red Hat marketing VP John Poelstra.

Before the change, developers could either opt for a free version of OpenShift Online with limited amounts of infrastructure and storage, or a $20 per month Silver option.

The Bronze package provides a halfway-point between the two, giving greater infrastructure than free, but lacking the Red Hat support options of Silver, nevertheless.

"A segment of the users was either self sufficient or comfortable with the community based resources. We wanted to find a way to provide some flexibility to developers who want to purchase and consume extra resources while utilizing community based support," said Red Hat's Director of OpenShift Online, Sathish Balakrishnan.

"Overall, a large percentage of the applications (1.6 million applications deployed to date) we have running on OpenShift Online are found to have extra storage for both the application and/or database tiers.

Add-on storage gives these applications unlimited room to effectively scale and store data." OpenShift is a hosted platform-as-a-service, competing with other remotely provisioned software like Cloud Foundry, CloudBees, Amazon Elastic Beanstalk, Engine Yard, and others.

The technology behind all of this is powered by Red Hat Enterprise Linux, and incorporates a few elements of SELinux and cgroups to provide security and isolation for "gears", the containers in which all OpenShift apps run, and the fundamental unit of currency for sizing an OpenShift installation.

Under the new pricing scheme, developers can access 16 gears of any size within the Bronze tier, and will need to pay $1 per gigabyte per month for all storage they access above the 1 GB assigned to each gear.

In addition to this, users of Red Hat's Silver version, which costs from $20 a month, can now access more than 16 gears per OpenShift install.

Like Red Hat, OpenShift is built with a significant emphasis on open source and, because of this, competes with Pivotal's Cloud Foundry project for the attention of Linux programmers and application developers.

Pivotal formed the Cloud Foundry Foundation in February, a cross-industry program designed to bring in more companies to work on the technology. Some of the contributors include IBM, HP, SAP, Sun Hosting and Rackspace.

One thing that may cause developers to favor OpenShift is the open-source heritage of its creator. "From a developer trying to extend the platform, the OpenShift codebase provided much better documentation than Cloud Foundry, but was a bit more difficult to understand at first, because it's split into fewer components.

As engineers, we like smaller components of code when we can get them," wrote PaaS software consultants Uhuru Software. "OpenShift gives the user a bit more control and more predictability."

In other Linux and open source news

Cloud solutions provider Joyent said earlier this morning that it has partnered with Canonical's Ubuntu team to offer tailored images into its cloud.

This means that Linux and open source developers who want to run Ubuntu on Joyent's advanced Smart OS-based infrastructure can now do it with greater confidence in getting regular updates from Canonical, with additional performance guarantees.

By joining Canonical's Certified Public Cloud Program, Joyent will be guaranteed to get the latest Ubuntu features, security and compliance accreditations from Canonical, exhaustive testing by Canonical of the Ubuntu image on Joyent's cloud platform, access to the Ubuntu Cloud Suite including Juju orchestration, and Joyent-hosted archive mirrors that are monitored constantly by Canonical in an effort to push out urgent updates.

The partnership "gives people a vector for a first class Ubuntu experience in the Joyent cloud," explains the company's head of engineering Bryan Cantrill.

"Canonical and Joyent are similar in a few ways since we're both taking on established giants. Joyent is taking on AWS and Canonical is taking on Red Hat," added Cantrill.

Overall, Joyent is mostly known for its technically innovative services, such as its ZFS-based object store and compute-storage cocktail "Manta", its "Content Delivery Cloud" which pairs Joyent DCs with Riverbed virtual appliances for a cut-price Akamai competitor, its eCommerce Package, and more.

These specific products are part of an initiative by the company to identify areas where Amazon is weak and build a product base there, rather than compete with it head-on in the cut-throat markets for main compute and storage projects.

"I don't want to be the Ryanair of cloud computing," he says. "Amazon is fundamentally a retailer and we are fundamentally a systems company. We believe in innovating deeper in the stack. You're never going to see a Manta come out of Amazon."

As part of this systems focus, the company will also work with Joyent to deploy a Node.js charm on its cloud. Charms are used by Joyent's "Juju" orchestration technology, which helps to configure, deploy, and manage Ubuntu-based infrastructure.

"We believe in Canonical and Ubuntu as an important development platform for certain classes of applications," Cantrill says. "I think that if you look at JuJu, you can view that as an intent from them to get upstack from the respect of the developer experience."

Overall, the Joyent partnership follows Canonical's embrace of the "Cloud Foundry" platform-as-a-service in November, as the company tries to get a lead on Red Hat in the world of Linux and open distributed systems.

In other Linux news

The Apache Foundation said earlier this morning that it has promoted a fast data-processing tool out of the Apache Incubator in a further sign of the maturity of the Hadoop family of products. To be sure, Apache Spark is a fast processing layer for computing data stored within the open-source Hadoop file system or other shared file systems such as NFS.

It supports Scala, Java, and Python. In some tests, it has demonstrated a speed of up to one-hundred times over Hadoop when dealing with in-memory sets, and ten times for hard-disk-held data.

Over the past weekend, Spark was unanimously voted to graduate from the Incubator, and some of those voting included Hadoop luminaries such as the technology's creator, Doug Cutting himself.

Now that Spark has been promoted, a project management committee will be established for the software, and Databricks co-founder and former AMP Lab PHD student Matei Zaharia will be appointed to the role of Vice President, Apache Spark.

Like Hadoop, Spark has become the foundation for other data-processing engines as well, such as Shark for SQL-on-Hadoop queries, MLib for machine learning, Spark Streaming for dealing with streaming data, and GraphX for graph processing.

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Some of the technology's users include Baidu, Databricks, IBM's Almaden research group, Trend Micro, Yahoo and Alibaba.

The 'graduation' of Apache Spark caps off a steep rise for the data-processing system, which was created at the University of California at Berkeley's AMP Lab five years ago and was officially published as open source in 2010.

Since then, the system has gained a vigorous developer community, and more than 120 open source developers from 25 companies contribute source code.

Interestingly, there seems to be enough activity around the software for businesses to smell money. Last week, Hadoop Cloudera announced commercial support for the tool. We'll keep you posted on these and other stories.

In other Linux and open source news

Initially at least, when releasing -rc2 kernels in the past year or so, Linus Torvalds was sometimes very unhappy with the amount of code changes that happened. But the February 9 kernel update that just came out, Torvalds seems okay with Linux 3.14-rc2, at least for now anyway.

Linus acknowledged in his 3.14-rc2 release announcement "that it's been pretty quiet", but he's scared of large pull requests coming in next week or later on in this kernel development cycle.

For the changes that were merged this week, it's been the usual bug fixes to drivers, architecture updates, etc. There really isn't anything too exciting this week. If you're not yet running the Linux 3.14 kernel in its latest development form and unaware of the many new features, read our overview of the Linux 3.14 features.

There's a lot of good things in this new release. We'll have more Linux 3.14 kernel benchmarks in the days ahead now that most of the initial fixes have landed.

There's also daily Linux kernel benchmarks coming along with other high-profile projects. We'll keep you posted on these and other developments as they happen.

Source: Red Hat.

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