The document discusses various companies' strategies for gaining influence and market share within the OpenStack ecosystem through establishing "beach heads" in key areas. It outlines territories like services, training, and upstream contribution that are seen as easy to attack. The strategies discussed include focusing on services for early adopters, training to influence perception of the technology, and contributing significantly to core projects to become seen as a leader. The document also notes some companies' relative positions in different areas like contributor rankings and marketing messages used to promote their involvement in OpenStack.

1. OpenStack
Coopetition:
a view from within
Alex Freedland
Co-Founder & Chairman, Mirantis
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MIRANTIS
2013
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1

2. What are we fighting for?
Open
InnovaEon
of
Infrastructure
Components
Proprietary
set
of
Infrastructure
Components
Exponen'al
Cost
Destruc'on
$600
$400
$200
$0
Q1
Q2
Q3
Q4
Q1
'14
14
'14
'14
'15
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Proprietary
Quaterly
Spend
Open
Quarterly
Spend
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2

3. What the hell is coopetition?
Wikipedia:
…Coopetition takes place when companies that are in the same
market work together in the exploration of knowledge and
research of new products, at the same time that they compete for
market-share of their products and in the exploitation of the
knowledge created.
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4. OpenStack: Outside Appearance
Jonathan
Bryce
OpenStack
–
MarkeEng!
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4

5. OpenStack: From Within
OpenStack
–
Reality!
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6. Things we’ll be looking at...
1. Territories being conquered
2. Weapons used
3. Key battles being fought
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7. Territories Being Conquered
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8. OpenStack Treasure Island
OpenStack
Product
Islands
Services
Beach
Head
OpenStack
Distro
Treasure
Island
Training
Beach
Head
Upstream
Influence
Beach
Head
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9. 2013:
$31M;
2014:
$49M
OpenStack Treasure Island
$52
Million
in
2013
$82
Million
in
2014
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9

10. Services - Why a Beach Head?
• Easy to attack (also hard to
protect)
• minimal barriers to entry
• this is where the early OpenStack
market is
Early
OpenStack
market
is
mostly
DIY,
willing
to
pay
for
services.
• Get close to early adopters
• First hand access to real customer
needs
• Get paid to learn
• Build a reputation and get
logos
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11. Services Beach Head – who is attacking?
claims
to
do
managed
service
only,
but
does
pure
services
too.
services
Eed
to
Ubuntu
stack.
service
Eed
to
RHEL
stack.
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12. Training – Why a Beach Head
• Also easy to attack
• Quality is the only way to protect
• Be the go-to brand for “what is OpenStack”
• Indoctrinate ecosystem with your opinion
• Every student can become an advocate for your
brand (and later product)
*Dominance in training was key to Red Hat’s victory in Linux.
Also look at other ecosystems… Cloudera #1 in Hadoop
training.
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13. Training Beach Head – who is attacking?
Knows
the
value
of
winning
this
beach
head
and
POUNDING
hard
Everybody
else
is
also
doing
it,
because
they
see
others
do
it…
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14. Upstream Influence – Why Beach Head?
If you were going to buy a service contract for
your open-source software, would you prefer
your service provider actually be the certifiable
authority on that very software?
-Derrick Harris, GigaOm
In open source, being the source of the source code matters
most. Since open-source developers essentially give away
software for free, the key to monetization lies in being known
as the source of the code..
-VP of Corp Dev., MongDB
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15. Upstream Influence – Why Beach Head?
Red
Hat
controls
vast
majority
of
Linux
market
(in
$$)
*Linux
FoundaEon
2013
Cloudera
&
Hortonworks
leaders
in
Hadoop
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16. Upstream Influence – Why a Beach Head
• Shape OpenStack roadmap
• Build better product, by leveraging community
knowledge
• Be able to merge patches and fixes quickly
• Provide “customer advocacy” upstream
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17. Upstream Influence – Why a Beach Head
Two ways to monetize open source:
• Source of the source code (Red Hat, Hortonworks)
• Proprietary value add tooling aka “open core” (Cloudera)
…..But there is no open core in OpenStack, because
there is no core
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18. Upstream Influence – Why a Beach Head
Nova
Cinder
Quantum
Glance
Horizon
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19. Upstream Influence – Why a Beach Head
Nova
Cinder
Quantum
Glance
Horizon
+
CEILOMETER
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20. Upstream Influence – Why a Beach Head
Nova
Cinder
Quantum
Glance
Horizon
+
CEILOMETER
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21. Upstream Influence – Why a Beach Head
Nova
Cinder
Quantum
Glance
Horizon
Ceilometer
+
HEAT
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22. Upstream Influence – Why a Beach Head
Nova
Cinder
Quantum
Glance
Horizon
Ceilometer
+
HEAT
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22

23. Upstream Influence – Why a Beach Head
Nova
Cinder
Quantum
Glance
Horizon
Ceilometer
Heat
+
TripleO/Tuskar
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24. Upstream Influence – Why a Beach Head
PaaS
Nova
Cinder
Quantum
Glance
Horizon
Ceilometer
Heat
+
TripleO/Tuskar
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25. Upstream Influence – Why a Beach Head
PaaS
Nova
Cinder
Quantum
Glance
Horizon
Ceilometer
Heat
TripleO/Tuskar
+
Solum
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26. Takeaway?
Don’t waste time building
proprietary islands!
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Join the party and
contribute upstream!
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26

27. Upstream Influence – Why a Beach Head
Displaced
from
#1
commimer
in
Essex
and
Diablo
to
#3
in
Havana.
Slowly
losing…
Moved
from
#16
commimer
in
Grizzly
to
#5
commimer
in
Havana
Holding
ground
at
#4
since
Essex
Moved
from
#6
in
Folsom
to
#2
in
Havana.
Slowly
gaining…
Top
commimer
since
Folsom
Steadily
gaining.
Folsom:
#11,
Grizzly:
#7,
Havana:
#6
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28. Upstream Influence – Why a Beach Head
Havana
Related
Projects
(stackforge)
Havana
DocumentaEon
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29. AWS
Fidelity
Island
Services
War Map – Roundup
Enterprise
OpenStack
Island
OpenStack
Distro
Training
Treasure
Island
OpenStack
Appliance
Island
Upstream
Influence
Managed
Services
Island
©
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2013
Complimentary
Product
Island
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29

30. Weapons Used
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31. Marketing & PR
Company
PR/Marke'ng
Weapons
Used
Red
Hat
We
own
the
upstream
influence
beach
head.
Will
do
for
OpenStack
what
we
did
for
Linux
Canonical
Ubuntu
is
the
#1
host
OS
for
OpenStack.
Release
cycles
are
aligned.
Rackspace
We
started
OpenStack
MiranEs
We
have
the
most
customers
and
are
not
in
it
to
for
sell-­‐through
of
other
products.
CloudScaling
Customers
want
opinion,
and
our
opinion
is
customers
need
AWS
fidelity.
Piston
We
started
OpenStack.
IBM
We
are
IBM!
And
we
are
commimed
to
OpenStack!
HP
We
are
HP!
And
we
are
commimed
to
OpenStack!
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32. Marketing & PR
Red Hat is a top code contributor across all
OpenStack projects, is a Platinum member of the
OpenStack Foundation, and is a key innovator in
the areas of OpenStack deployment,
orchestration, and management.
Promote
host
OS
ownership
Promote
upstream
influence
beach
head
Did you know most OpenStack clouds run on
Ubuntu, and that Canonical provides
enterprise level support for both Ubuntu and
OpenStack?
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33. Marketing & PR
We
are
commimed!
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34. Account Control
• You’ve known us for years and we’ve always
delivered.
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35. Account Control – the double edged
sword
• I know you as somebody that sells me X, you are
doing OpenStack to sell more X.
….remember
Unix
Wars…
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36. Partnerships – shield from account
control
Ubuntu
OpenStack
+
Ceph
=
up
yours
Red
Hat
and
Gluster
SUSE
+
Hyper-­‐V
=
up
yours
Red
Hat
and
KVM
Red
Hat
+
PLUMgrid
=
up
yours
Vmware
NSX
and
vCenter,
KVM
+
PLUMGrid
is
it!
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37. Customer Focus & Technology
• You stuff has to:
• Be relevant to customer needs
• Work well
• Technology doesn’t always win… but it wins most
of the time.
Innova&on
is
saying
no
to
1,000
things.
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38. Thank you
Q&A
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