The Troposphere

Jun 30 2011   11:01PM GMT

OpSource exit shows the power of the platform

CarlBrooks Carl Brooks Profile: CarlBrooks

OpSource has been bought by ICT and IT services giant Dimension Data. This tells us several important things about the cloud computing market when we look at some of the details. It’s mostly positive unless you’re a private cloud cultist or one of the vendor giants enabling private cloud cargo cults in various areas of IT.

OpSource likely made out here, too; Informa analyst Camille Mendler said NTT, which now owns Dimension Data and was a 5% equity investor in OpSource, is well known for piling up money to get what it wants. “NTT was an early investor in OpSource years ago. They always pay top dollar (see DiData price, which turned off other suitors)” Mendler said in a message.

Mendler also pointed out the real significance of the buy: the largest providers are moving to consildate their delivery arms and their channel around cloud products, becuase that’s where the action is right now. Amazon Web Services is an outlier; private cloud in the enterprise is in its infancy; but service providers in every area are in a wholesale migration into and delivering cloud computing environments. OpSource already runs in some NTT data center floor space; DiData has a massive SP/MSP customer base and it’s OpSource’s true strength as well.

DiData is already actively engaged with customers that are doing cloudy stuff, said Mendler, and they basically threw up their hands and bought out the best provider focused cloud platform and service provider they could find. “There’s a white label angle, not just enterprise” she said.

And it’s not the only deal for cloud for providers, by NTT either: It bought controlling interest in an Australian MSP with a cloud platform in May. gathering in OpSource means NTT have a stake in most of the world in a fairly serious fashion when it comes to the next wave of public and hosted cloud providers.

What else?

Well, DiData is a huge firm in IT services. They have all the expertise and software they’d ever need, but instead of developing a platform or an IaaS to sell to customers, they bought one outright and are starting up a cloud services business unit to sell it pretty much as is. That means, as has been pointed out so many times before, building a cloud is hard work, and quite distinct from well understood data center architectures around virtualization and automation as we used to know them.

It also means there was a pressing need for a functioning cloud business today, or more likely yesterday. “Essentially, what Dimension has said is ‘nothing changes with OpSource’” said OpSouce CTO John Rowell.

Rowell’s a bit giddy; he said with access to DiData’s partnerships and customers, OpSource gets a fast track to global infrastructure growth in a way it couldn’t before. “We believe we can go head to head with Amazon and we‘ll be better than them,” he said. He might not be far off, at least in the MSP sector; OpSource does have a few pieces of the puzzle AWS doesn’t, like a working support system, mature networking (mature networking features in the cloud=hosting circa 1999) and a very slick interface that is pig easy to use or extend.

Overall though, it tells us the real action is behind the scenes for enterprise IT- cloud computing is on fire in the service world; it’s still mostly smoke in the enterprise world.

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