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Global OpenStack Market to Reach $3.3 Billion by 2018

Since its emergence four years ago, OpenStack has garnered a great deal of industry attention. This open source cloud computing project has seen increased momentum as more developers, vendors and end users have collaboratively built out the OpenStack architecture.

Today, the OpenStack series of projects has evolved into a top priority for many IT professionals and suppliers. This rapidly evolving software technology is the essential foundation for the Open Hybrid Cloud phenomenon. The OpenStack standard will provide similar benefits for large-scale cloud computing in the data center that the Linux standard has previously provided within the computer server.

The OpenStack technology market, which is still in the early-adopter stage of market development, will grow from an estimated $883 million in revenue during 2014 to reach $3.3 billion by 2018, as vendors increasingly adopt the open-source platform for developing their applications and enterprises deploy the infrastructure for hybrid cloud services.

That accelerating adoption represents a compound annual growth rate (CAGR) of 40 percent for the six years ending in 2018, according to the latest global market study by 451 Research.

This outlook is based on the 451 Research recently announced "OpenStack Market Monitor & Forecast" service, which presents data generated via a bottom-up analysis of more than 60 vendors that support OpenStack or base their products or services on the OpenStack framework.


Their ongoing worldwide market assessment focuses on the key public and private vendors that directly provide OpenStack offerings – including products, services and turnkey offerings around OpenStack deployment and management; various distributions of OpenStack; consulting or training and other OpenStack-related services; DevOps tools; and platform-as-a-service (PaaS) on OpenStack.

However, their market-sizing analysis excludes hardware-centric revenue, as well as revenue from indirect third-party vendors, such as those in storage or software-defined networking (SDN).

"OpenStack has seen tremendous growth over the last four years in terms of investment and community expansion," said Al Sadowski, Research Director at 451 Research.

He says that the open-source platform is increasingly a consideration for private cloud deployments, and the business models within the ecosystem continue to evolve.

451 Research believes that while the current OpenStack revenue overwhelmingly comes from the thirty vendors most active in the telecom service provider marketplace, their analysts expect an increase in revenue from all market segments -- especially from companies targeting the enterprise market within the OpenStack products, software distributions and cloud management space.

They also believe that the OpenStack appeal to enterprises and service providers parallels the drivers typically associated with open source software in general -- such as flexibility, cost savings, avoiding vendor lock-in, and the ability to customize for integration with other infrastructure and applications (whether traditional datacenters, virtualization, public or private clouds).

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