The document discusses considerations for companies looking to become OpenStack cloud service providers (CSPs). It outlines two main strategies for CSPs - a commodity approach using open source software and white label hardware targeting developers, or an enterprise approach using proprietary software and branded hardware targeting infrastructure executives. The document also provides a lifecycle for OpenStack CSPs, from assessing market opportunities to ongoing business growth. The recommendations are to choose a strategy, understand CSP lifecycle requirements, map them to capabilities, and create a lifecycle plan to guide the direction as an OpenStack CSP.

1. The
OpenStack
CSP:
What
Kind
of
Provider
Will
You
Be?
Bernard
Golden
CEO,
HyperStratus

2. Who is Bernard Golden?
CEO: HyperStratus, enterprise cloud computing
consultancy
• Clients include Korea Telecom, Trend Micro, BMC
20+ years experience in large IT shops, enterprise
software, global consultancy, venture capital
Virtualization and Cloud Computing Advisor, CIO
Magazine
• Sys-con “Top 50 blog,” AlwaysOn “Top 20 blog”
Books:
• Author, Virtualization for Dummies,
• Co-author “Creating the Infrastructure for Cloud
Computing” (Intel Press 5/11)
• Co-author: “Cloud Computing: Understanding
the Risks” (ITGovernance Press (12/11)
2 2

3. What
the
opportunity
can
look
like:
“Each
day
AWS
adds
enough
compuGng
muscle
to
power
one
whole
Amazon.com
circa
2000,
when
it
was
a
$2.8bn
business”
-­‐
Werner
Vogels,
Amazon
CTO

4. Service
Provider
Cloud
Drivers
• Developed
Economies
– Build
out
hosGng,
colo,
MSP
offerings
– Respond
to
compeGGon
– Customer
interest/demand
• Emerging
Economies
– Preclude
compeGGon
– Leapfrog
generaGon
of
infrastructure
– Fulfill
tradiGonal
telecom
role
– Support
naGonal
economic
development
– Dominate
next
generaGon
of
compuGng

5. Self-Service
Service
Identity and
Application
Portal
Catalog
Access Mgt
Management
Portal Layer
System Management and Monitoring
Policy
Automated
Policy
Resource Use
Definition
Rules
Engine
Review
Billing/Chargeback
Capacity Planning
Workflow/Governance Layer
Service
Automated
System
System
Definition
Provisioning
Templates
Monitoring
Administration and Orchestration Layer
Virtualized
Virtualized
Virtualized
Virtualization
Networking
Storage
Compute
Management
Virtualization Layer
Servers
Network
Storage
Bandwidth
Infrastructure

7. Service
Provider
Cloud
Strategy
Approach
Infrastructure
Offering
Characteris5cs
Target
market:
applicaGons
Target
buyer:
developer
Offering:
standardized
Soware:
Open
Source
Presales:
low
Commodity
Hardware:
White
Label
MarkeGng:
informal
(meetups,
user
groups,
etc.)
Sales:
internal,
low
touch
MarkeGng
promoGon:
pizza
Target
market:
infrastructure
Target
buyer:
VP
Ops,
CIO
Offering:
customized
Soware:
Proprietary
or
Presales:
high
Enterprise
Open
Source
MarkeGng:
formal
(conferences,
sponsorships)
Hardware:
Brand
Name
Sales:
external,
high
touch
MarkeGng
promoGon:
golf
ouGng

8. OpenStack
Service
Provider
Lifecycle
Assess
Plan
Implement
Launch
Penetrate
Lifecycle
Step
Evaluate
opportunity
Create
business
plan
Implement
Begin
formal
sales
Build
business
and
and
determine
with
costs,
revenues,
infrastructure
and
and
markeGng
efforts
expand
offerings
strategy
type
operaGons
begin
market
engagement
AcGviGes
Evaluate
Target
Evaluate
and
select
Order
and
install
Announcement
and
Build
ecosystem
of
Market:
Commodity
soware
and
hardware
and
iniGal
markeGng
complementary
or
Proprietary
hardware
soware
components
acGviGes
products,
service
components
providers
Survey
PotenGal
and
Determine
Implement
cloud
Educate
customer
Offer
addiGonal
ExisGng
User
Base
implementaGon
offerings
defined
in
base
product
capabiliGes
method
(self,
SI,
planning
step
to
provide
more
partner)
plaborm
value
Define
cloud
offerings
Integrate
cloud
Engage
iniGal
Grow
cloud
infrastructure
with
customers
for
success
infrastructure
to
customer
portal,
stories
support
market
billing,
monitoring,
penetraGon
etc.
Determine
key
Develop
business
Hire
and
train
Begin
partnering
ConGnue
markeGng
offerings
for
iniGal
model
including
five
personnel
to
support,
acGviGes
and
sales
launch
year
revenues,
cost,
sell
cloud
offerings
personnel
requirements
DuraGon
2
–
4
weeks
4
–
12
weeks
12
–
26
weeks
26
–
52
weeks
Ongoing

9. CSP
RecommendaGons
• Customer
adopGon
is
everything
• Choose
a
strategy
• CSP
lifecycle
requirements
• Map
requirements
to
current
capabiliGes
• Create
lifecycle
plan

10. Your
Choice
Influences
Your
DirecGon
But
Making
the
Plaborm
Choice
is
Only
the
Start