According to a recent article by Derrick Harris, “[OpenStack] grew its public cloud revenue 36 percent year over year, according to it second-quarter earnings released on Thursday. They came in just north of $99 million, up from about $72.5 million last year and just under $91 million for this year’s first quarter.” That’s solid growth for a publically traded company.
However, the problems arise when you do well, but your close competition does much better. In that scenario, your success does not seem very successful. “Rackspace isn’t growing nearly as fast as chief rival Amazon Web Services. Amazon released its second-quarter earning[s] a couple weeks ago and reported a 64 percent year-over-year increase in cloud revenues. (Well, technically, in “other” revenues, which many industry watchers believe is comprised largely of AWS.) It’s second-quarter take: $844 million.”
While Rackspace execs still claim they are not competing with AWS, the reality is that they are, indeed, doing just that. The solutions patterns are pretty much the same. While AWS has ignored the software-driven private cloud aspect of the cloud computing market, RAX is on both sides of the firewall. Thus, even more of an opportunity to grow revenue.
I’m not sure this is about AWS being unstoppable, as much as it’s about who those compete directly with AWS being not as smart or strategic. There are dozens of huge opportunities in this quick growing market, and most of the public cloud providers are not taking advantage of these opportunities. If they continue to battle it out directly with AWS, they will find that they will lose the war.