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OpenStack revenue to hit $5bn by 2020

Revenue from OpenStack business models are expected to hit $5bn in the next four years, according to a new report by 451 Research. That's a 35 per cent compound annual growth rate.  But the real news here is that private cloud revenue will most likely exceed public ones by 2019. 451 Research thinks OpenStack will make a lot of progress in the private cloud, mostly by orchestrating public cloud – on-premises integration and hosted OpenStack environments.  

Both service providers, and organisations are increasingly going for OpenStack for software-defined networking, network function virtualisation, IoT and mobile. Docker and simliar container software will continue to be mostly beneficial and complementary to OpenStack, the report says, but adds that the persistent attention to containers threatens to eclipse OpenStack, just how OpenStack overran CloudStack.  

“This year OpenStack has become a top priority and credible cloud option, but it still has its shortcomings,” said Al Sadowski, research vice president at 451 Research. “We continue to believe the market is still in the early stages of enterprise use and revenue generation. We expect an uptick in revenues from all sectors and geographic regions, especially from those companies in the OpenStack Products and Distributions category that are targeting enterprises.” 

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