Over the period 2021-2026, the OpenStack Services Market will experience a 26.53% CAGR. OpenStack controls large amounts of computing, storage, and networking resources. All this is managed via APIs or dashboards. Beyond standard infrastructure-as-a-service (IaaS) functionality, additional components provide service management and fault management to ensure the availability of user applications. According to Red Hat, Inc., 65% of cloud users consider OpenStack essential for their cloud strategy. Communications service providers embrace OpenStack to provide innovative services. These production cloud environments must be reliable and highly available to ensure business continuity. Organizations can create a production-grade OpenStack infrastructure by ensuring that both components and the topology are available.
- OpenStack Foundation (OSF), a foundation dedicated to promoting, distributing, and adopting open infrastructure worldwide, has more than 105,000 members from 187 countries. OSF’s goal is to support developers, users, and the entire open infrastructure community by offering a range of shared resources that help build community, foster collaboration, and facilitate the integration of open-source technologies. The foundation’s main activities include community management and organizing large-scale testing infrastructure. It also brings together more than 20,000 people interested in public infrastructure each year at international events like the Open Infrastructure Summit. The OSF began incubating strategic focus areas, including Container Infrastructure, CI/CD, and Edge Computing.
- OpenStack is used by 28% of companies with employees between 1000 and 9,999, according to the 2019 OpenStack User Survey. OpenStack is used by 18% of organizations as an Infrastructure Provider. 13% use it as a private clouds provider. 72% of deployments are off-premises private clouds. Organizations choose OpenStack for their cloud infrastructure platform because they can improve operational efficiency and innovate faster. More than 75% of respondents cited other business reasons, including avoiding standardization on an open platform and APIs that power a global network of private and public clouds, vendor locking-in, and saving time. Other reasons include security/privacy goals, attracting top technical talent, and attracting the best.
- The OpenStack Foundation supported StarlingX, an open-source project that was launched in June 2020. StarlingX is expected to offer a highly reliable, deployment-ready, and scalable infrastructure platform for building mission-critical edge cloud clouds. StarlingX’s applications include the last mile or far edge, as well as other use cases such as industrial IoT, autonomous cars, and other transportation-based IoT apps, multi-access Edge Computing and virtualized Radio Access Networks, 5G, intelligent cities, and augmented and virtual realities.
- DriveScale, Inc., which provides elastic bare-metal clouds infrastructure, announced OpenStack support in March 2020. DriveScale supports the OpenStack Cinder standard and provides scalable storage that can be programmed to allow traditional bare metal clouds to be used. Cinder acts as an OpenStack block storage service. OpenStack Compute can access it by using a plugin driver. Cinder allows OpenStack Compute access to block storage resources via a self-service API. DriveScale, through its Cinder plugin, organizes the underlying hardware. It delivers SSDs and HDDs on a large scale at a cost-effective rate and retains the same performance as local drives.
- COVID-19 continues its unfortunate spread throughout the globe, affecting large numbers and disrupting organizations around the globe. Some enterprises were further at-risk due to the government’s announcement of nationwide lockdowns. This affected the availability of support teams for suppliers and enterprise support teams. Sardina Systems, a European company that supplies Kubernetes cloud platforms and OpenStack cloud platform platforms, will offer Sardina FishOS products to all affected Indian customers and suppliers. Sardina FishOS is based on OpenStack and Kubernetes and allows for fast deployments and flexible operations to allow enterprises to respond quickly to business needs. Rackspace, a technology services company, has allocated USD 10,000,000 in free OpenStack Public Cloud hosting resources for organizations participating in COVID-19 response efforts over the next six months.
Scope of the Report
OpenStack is an open-source platform that uses virtual resources pooled to create and manage public and private clouds. The projects handle OpenStack’s core cloud computing services, such as identity, storage, image, networking, and computing. You can also combine more than one dozen projects to create unique clouds
Key Market Trends
The telecom industry is expected to experience significant growth.
- Software-Defined Networking is crucial for 5G deployment. OpenStack and Kubernetes are two of the most professional organizations helping telecom operators build their next-generation SDN-based infrastructure. Mirantis, Inc., for instance, signed a three-year agreement to build AT&T 5G’s infrastructure with Airship in February 2019. AT&T and SKT initially developed the Airship. The Airship was created to allow telcos to use on-premise Kubernetes infrastructure for their SDN infrastructure build. Mirantis and AT&T will collaborate to create the Airship’s core features. These features will then be deployed at scale using AT&T’s Airship and Kubernetes networks.
- IBM Corporation introduced new services and solutions to assist enterprises and telecom companies in transitioning to edge computing within the 5G state at the Think Digital conference in May 2020. This initiative adds IBM’s expertise and experience in multi-cloud environments using Red Hat’s open-source technology. It was one of the most significant tech acquisitions ever made. IBM Telco Network Cloud Manager is one of these. This will allow service providers to manage workloads on the Red Hat OpenStack Platform and Red Hat OpenShift. This will be important as telcos look to modernize their networks to increase efficiency and agility, provide new services, and keep up with 5G adoption.
- ZTE Corporation, an international provider of telecommunications, enterprise, and consumer technology solutions for mobile internet, extended its partnership with Red Hat, Inc. in March 2020 to accelerate the deployment of 5G networks. The partnership includes a new reference architecture that enables telecom companies to deploy virtual network functions (VNFs) on the Red Hat OpenStack Platform more effectively, Red Hat’s highly scalable and agile Infrastructure-as-a-Service (IaaS) solution on ZTE’s hardware. ZTE will use the Red Hat OpenStack platform to provide VNF services. This allows it better to prepare its service providers for 5G deployments.
- In May 2020, Bharti Airtel (India’s largest integrated telecom company) selected Red Hat and IBM to help build India’s 5G-ready network. This cloud is designed to be more flexible, efficient, and future-ready to support core operations and enable the latest digital services. Airtel will use this platform to build its next-generation analytics tools, core network, and new enterprise and consumer services. It is built on open standards. Airtel will use IBM’s portfolios of cognitive enterprise capabilities and hybrid cloud technologies from Red Hat. It plans to adopt an open cloud architecture using Red Hat OpenStack Platform and Red Hat OpenShift.
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Asia-Pacific is expected to experience significant growth.
- At its Open Infrastructure Summit, held in Shanghai in November 2019, the OpenStack Foundation (OSF) declared that most Chinese telecom and hyper-scale cloud organizations are now committed to adopting OpenStack services in the Asia-Pacific region. The OSF cited the importance of OpenStack being used by companies like Tencent and China Mobile to support the rapid growth of the OpenStack market in Asia-Pacific. Tencent, which is the creator of the WeChat super app and hyper-scale cloud provider, has used OpenStack to power its operations and public cloud services utilized by other industries. China Mobile is also using OpenStack to provide public and private cloud services and its telecom cloud to power its next-generation telco network.
- Users are using OpenStack and Kubernetes throughout the region to solve significant open infrastructure issues. To meet the needs of the applications in the region, they are increasingly using projects like StarlingX and Airship to leverage open infrastructure. China is expected to account for almost half the world’s OpenStack deployments. China has the third-highest number of OSF members. This organization includes users and contributors to open infrastructure projects hosted and piloted by the organization. OpenStack Train was launched in October 2019. It features nearly 3,000 changes made upstream by China, the second-largest contributor to differences in 165 countries. China is second in the world for contributors with more than 150.
- Upstream of the StarlingX project, multiple Chinese companies, have contributed, including 99cloud and China UnionPay. Electronic Commerce and Electronic Payment National Engineering Laboratory of China UnionPay have explored a secure edge infrastructure powered by StarlingX for contactless payment use. Technologies such as Multi-Access Edge Computing, Media Cloud, and Artificial Intelligence have been gaining momentum with the rapid growth of the 5G network infrastructure. To fully support development, the infrastructure must be made cloud-native. Korea-based SK Telecom has been working on cloud-native infrastructure technology for the past few years. It actively participates in global OpenStack Foundation (OSF) projects, especially the Airship project.
- Red Hat, Inc. announced in October 2019 that Vodafone Idea Limited (VIL) is using Red Hat Ceph Storage, Red Hat Ansible Automation Platform, Red Hat Enterprise Linux, and Red Hat OpenStack Platform to transform its distributed network data center to open standards, open interfaces based on ‘Universal Cloud’. Red Hat OpenStack Platform allows VIL to create efficient pods distributed geographically and brought closer to end-users. This helps reduce latency, improve user experience, and help to reduce latency. VIL will leverage Red Hat’s APIs to provide actionable insights for enterprise users, potentially helping them create a competitive edge.
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Due to significant players like Cisco Systems, Inc., Red Hat, Inc., Hewlett Packard Enterprise Development LP, Mirantis, Inc., and others, the OpenStack Services Market is competitive but moderately fragmented. Innovators, partnerships, and mergers are typical among the market players. They also seek to expand their geographic presence and increase market share.
- VMware Integrated OpenStack 7.0 was announced by VMware in May 2020. VMware Integrated OpenStack provides OpenStack functionality and a seamless configuration workflow. VMware Integrated OpenStack 7.0 is a 5G-ready platform that can meet the demands of other workloads and the 5G core. Upgrades from VMware Integrated OpenStack 7.0 or 6.0 are seamless and require no data plane downtime.
- February 2020 – Red Hat, Inc. has made the general availability of Red Hat OpenStack Platform 16, the latest version of its highly agile and scalable Infrastructure-as-a-Service solution. The foundation for enterprise workloads in telcos will be laid by approximately 1,000 new features and enhancements to programmable IaaS, which can be used for hybrid clouds, production clouds, developer clouds, and cloud-native applications such as network function virtualization and edge computing.