Many people who dismiss Openstack.org as a non-starter fail to understand that it is just a start. Openstack.org doesn’t claim it has the miracle pill for all the ills in the cloud. It is a new initiative and it is just starting off. In fact, the compute code is not even ready. In my opinion, it is a start and any outright dismissal or claims of victory is not only premature but also amateurish. The only thing it offers is a potential to disrupt the cloud marketplace in the future. There are many factors in play before we can even see the results of this move. If they execute it right, it can stir up the marketplace. It may not destroy the leading players in the market. The best I expect from this initiative is that it will level the marketplace by making it easy for smaller players to jump in and try their chance.
I met Jeff Barr some time ago. I told him that in my opinion the smart thing would be for Amazon to open source EC2 & S3, encourage competitors and compete on price and service – take first leader advantage, establish the market. If they don’t, someone else could disrupt their market by doing this to them. I asked Werner the same thing at FOWA and he talked about their “secret sauce”. I reckon all that is needed is an open sourced utility computing engine being adopted by small ISPs and they are going to have a fight on their hands.