OpenStack revenue will break $6 billion by 2021 with private overtaking public cloud

OpenStack revenue will break the $6 billion barrier by 2021, with major advances in China and Asia Pacific being a contributory factor, according to the latest note from 451 Research.

Predictions concerning the overall market size have dipped slightly from the research firm’s previous analysis this time last year – the forecast for 2020 is now at $5.63bn, down from $5.75bn – yet 451 argues growth will remain strong (below) with a CAGR of 30% and an overall size of $6.73bn by 2021.

Service providers with OpenStack private cloud revenue will exceed revenue from those with OpenStack-based public cloud implementations as soon as 2018, according to the research. Deployments in China and Asia Pacific are now growing faster than in the rest of the world, with the research firm adding that part of this increase is down to the Chinese government’s Ministry of Industry and Information Technology advocating for OpenStack.

The research also assesses the growing prominence of containers and microservices technologies. According to Al Sadowski, 451 research vice president, OpenStack is no longer the ‘shiny new toy’ in the industry. Yet the most innovative and progressive OpenStack deployments feature the use of Docker and Kubernetes.

“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,” added Sadowski.

The proclamation has been made to coincide with the latest OpenStack Summit, to be held in Sydney over the coming days. Before the festivities, the OpenStack Foundation announced it will use the event to help address how open source technologies can be integrated to solve real-world problems. This will be done in four parts; documenting cross-project use cases, collaborating across communities, fostering new projects at the OpenStack Foundation, and coordinating end to end testing across projects.

Of particular note is the recently announced Public Cloud Passport program. A global gaggle of public cloud providers, including OVH, Telefonica and UKCloud, are offering trials for users to ‘experience the freedom, performance and interoperability of open source infrastructure’, as OpenStack puts it.

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