This week saw established analyst firm scrambling to recover after realising that OpenStack is a huge, unstoppable thing. Sean Kerner writes that 451 Research released some data :
451 Group now reports 2015 OpenStack ecosystem revenue at $1.2 billion and forecasts it will grow to $3.37 billion by 2018. From 2014 to 2018, 451 Group has forecast a compound annual growth rate (CAGR) of 31 percent.
Its becoming clear that a Gartner got its predictions on OpenStack quite wrong as recently as a year ago:
A billion IT market is a business opportunity not a science project its a major revenue stream. Even more incomprehensible is that OpenStack was clearly building up critical momentum as a smart alternative to poor quality cloud products from VMware among enterprises.
But the overwhelming push behind OpenStack is not coming from Cloud Providers or Enterprise but from telecommunications service providers / carriers. They have thousands of “data centers” (called a central office) located near to the network edge. The market for bandwidth is reducing in price and margin which means that the platform they use must be low cost. Thats Openstack.
The Etherealmind View
I don’t understand how Gartner can get this so obviously wrong. OpenStack momentum has been clear for three years as it moved through the messy sausage-making product development phase.
Oh, and its not just one analyst. There are dozens of analysts that contribute to the group of official opinions.
Thanks to Stu Miniman for the tip:
— Stuart Miniman (@stu) April 25, 2016