open stack coopetition_israel -- presentation by alex freedland @ 2013 openstack israel

© MIRANTIS 2013 PAGE 1 © MIRANTIS 2013

OpenStack Coopetition: a view from within

Alex Freedland Co-Founder & Chairman, Mirantis

© MIRANTIS 2013 PAGE 2

What are we fighting for?

$0 $200 $400 $600

Q1 '14

Q2 14

Q3 '14

Q4 '14

Q1 '15

Proprietary Quaterly Spend

Open Quarterly Spend

Open InnovaEon of Infrastructure Components

Proprietary set of Infrastructure Components

Exponen'al Cost Destruc'on


What the hell is coopetition?

Wikipedia: …Coopetition takes place when companies that are in the same market work together in the exploration of knowledge and research of new products, at the same time that they compete for market-share of their products and in the exploitation of the knowledge created.


OpenStack: Outside Appearance

OpenStack – MarkeEng!

Jonathan Bryce


OpenStack: From Within

OpenStack – Reality!


Things we’ll be looking at...

1.  Territories being conquered

2.  Weapons used

3.  Key battles being fought


Territories Being Conquered


OpenStack Treasure Island

Services Beach Head

Upstream Influence Beach Head

Training Beach Head

OpenStack Distro Treasure Island

Ope

nStack Produ

ct Island

s


OpenStack Treasure Island

$52 Million in 2013

$82 Million in 2014

2013: $31M; 2014: $49M


Services - Why a Beach Head?

• Easy to attack (also hard to protect) •  minimal barriers to entry •  this is where the early OpenStack

market is

• Get close to early adopters •  First hand access to real customer

needs •  Get paid to learn

• Build a reputation and get logos

Early OpenStack market is mostly DIY, willing to pay for services.


Services Beach Head – who is attacking?

claims to do managed service only, but does pure services too.

services Eed to Ubuntu stack.

service Eed to RHEL stack.


Training – Why a Beach Head

• Also easy to attack •  Quality is the only way to protect

• Be the go-to brand for “what is OpenStack” •  Indoctrinate ecosystem with your opinion • Every student can become an advocate for your

brand (and later product) *Dominance in training was key to Red Hat’s victory in Linux. Also look at other ecosystems… Cloudera #1 in Hadoop training.


Training Beach Head – who is attacking?

Knows the value of winning this beach head and POUNDING hard

Everybody else is also doing it, because they see others do it…


Upstream Influence – Why Beach Head?

If you were going to buy a service contract for your open-source software, would you prefer your service provider actually be the certifiable authority on that very software?

-Derrick Harris, GigaOm

In open source, being the source of the source code matters most. Since open-source developers essentially give away software for free, the key to monetization lies in being known as the source of the code..

-VP of Corp Dev., MongDB


Upstream Influence – Why Beach Head?

Cloudera & Hortonworks leaders in Hadoop

*Linux FoundaEon 2013

Red Hat controls vast majority of Linux market (in $$)


Upstream Influence – Why a Beach Head

• Shape OpenStack roadmap

• Build better product, by leveraging community knowledge

• Be able to merge patches and fixes quickly

• Provide “customer advocacy” upstream



Two ways to monetize open source: •  Source of the source code (Red Hat, Hortonworks) •  Proprietary value add tooling aka “open core” (Cloudera)

…..But there is no open core in OpenStack, because there is no core



Nova Cinder

Quantum Glance Horizon



Nova Cinder


+ CEILOMETER



Nova Cinder


Ceilometer +

HEAT



Nova Cinder


Ceilometer Heat +

TripleO/Tuskar



Nova Cinder


Ceilometer Heat +

TripleO/Tuskar

PaaS


Nova Cinder


Ceilometer Heat

TripleO/Tuskar +

Solum


PaaS


Takeaway?

Don’t waste time building proprietary islands!

Join the party and contribute upstream!


Upstream Influence – Why a Beach Head Displaced from #1 commimer in Essex and Diablo to #3 in Havana. Slowly losing…

Moved from #16 commimer in Grizzly to #5 commimer in Havana

Holding ground at #4 since Essex

Moved from #6 in Folsom to #2 in Havana. Slowly gaining…

Steadily gaining. Folsom: #11, Grizzly: #7, Havana: #6

Top commimer since Folsom


Havana DocumentaEon Havana Related Projects (stackforge)



War Map – Roundup

AWS Fidelity Island

Enterprise OpenStack Island

Managed Services Island

OpenStack Appliance Island

Complimentary Product Island

OpenStack Distro Treasure Island

Services

Training

Upstream Influ

ence


Weapons Used


Marketing & PR

Company PR/Marke'ng Weapons Used

Red Hat We own the upstream influence beach head. Will do for OpenStack what we did for Linux

Canonical Ubuntu is the #1 host OS for OpenStack. Release cycles are aligned.

Rackspace We started OpenStack

MiranEs We have the most customers and are not in it to for sell-‐through of other products.

CloudScaling Customers want opinion, and our opinion is customers need AWS fidelity.

Piston We started OpenStack.

IBM We are IBM! And we are commimed to OpenStack!

HP We are HP! And we are commimed to OpenStack!


Marketing & PR

Red Hat is a top code contributor across all OpenStack projects, is a Platinum member of the OpenStack Foundation, and is a key innovator in the areas of OpenStack deployment, orchestration, and management.

Did you know most OpenStack clouds run on Ubuntu, and that Canonical provides enterprise level support for both Ubuntu and OpenStack?

Promote upstream influence beach head

Promote host OS ownership


Marketing & PR

We are commimed!


Account Control

• You’ve known us for years and we’ve always delivered.


Account Control – the double edged sword

•  I know you as somebody that sells me X, you are doing OpenStack to sell more X.

….remember Unix Wars…


Partnerships – shield from account control

Ubuntu OpenStack + Ceph = up yours Red Hat and Gluster

SUSE + Hyper-‐V = up yours Red Hat and KVM

Red Hat + PLUMgrid = up yours Vmware NSX and vCenter, KVM + PLUMGrid is it!


Customer Focus & Technology

• You stuff has to: •  Be relevant to customer needs •  Work well

• Technology doesn’t always win… but it wins most of the time.

Innova&on is saying no to 1,000 things.


Thank you

Q&A