OpenStack revenue to exceed $6B by 2020, says analyst

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451 Research said the OpenStack development community has made progress addressing challenges in installation and rolling upgrades over the last two years, resulting in increasing production deployments.

Service providers are going to reap $6 billion in revenue rewards in 2020, surpassing OpenStack counterparts who are deploying OpenStack-based public cloud implementations in 2018, says 451 Research in a new report.

According to 451 Research’s new study, which was published on the first day of the OpenStack Summit 2017, OpenStack is benefiting from the increase in hybrid cloud environments, with 61% of the enterprises surveyed saying they now utilize a hybrid cloud approach.

Certain verticals and regions that are less enthusiastic about exclusively using hyper scale technologies also present a growth area for OpenStack.

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On a regional basis, deployments in China and APAC are now growing faster than in the rest of the world. The research firm said a contributing factor is the Chinese government’s Ministry of Industry and Information Technology advocating for OpenStack.

“OpenStack has solidified its position as the leading open source option for building private and public cloud environments but it is no longer the shiny new toy in the industry—that torch has been passed to containers and microservices,” said Al Sadowski, VP of research at 451 Research, in a release. “And while there is no clear answer yet about OpenStack coexistence with containers, it is worth noting that containers and container management are nascent markets in terms of production use cases.”

451 Research said the OpenStack development community has made progress addressing challenges in installation and rolling upgrades over the last two years, resulting in increasing production deployments.

As OpenStack becomes more shrink-wrapped and risk is reduced for enterprise use, 451 Research said this trend will continue in 2018. The platform was once limited to mostly development/testing and proof-of-concept deployments but there are now mission-critical workloads on OpenStack across most enterprise verticals and regions.

Until now, the majority of OpenStack revenue has been from service providers offering multi-tenant IaaS, 451 Research Market Monitor found that OpenStack growth is shifting toward the private cloud space faster than previously expected.

While containers are getting more attention than OpenStack, 451 Research’s OpenStack Pulse found that very few users are abandoning OpenStack. Interestingly, some of the forward-looking OpenStack deployments feature the use of container technology such as Docker and Kubernetes.

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