Report: Intel pulls the plug on OpenStack venture with Rackspace

Dive Brief:

  • Intel will no longer support the OpenStack Innovation Center, a project it formed with Rackspace two years ago to increase the use of OpenStack software technology in the enterprise, Fortune reports. Intel’s funding of the initiative was supposed to last through the end of next year.

  • Rackspace employees working at the innovation center are reportedly searching for new jobs at Rackspace, according to an anonymous source cited by Fortune.

  • Intel and Rackspace will, however, continue to contribute to and work with the OpenStack developer community.

Dive Insight:

Is this the end for OpenStack and its open source tools for managing public and private clouds? Hewlett Packard Enterprise and Cisco both recently announced they are downsizing their respective OpenStack-based public cloud efforts. Now Intel says it’s also cutting back.

Some companies still support the effort, however. In December, Red Hat announced the availability of Red Hat OpenStack Platform 10, the company’s cloud Infrastructure as a Service (IaaS) solution.

At the time, Jonathan Bryce, director of the OpenStack foundation, said the move away from OpenStack by HPE and Cisco could indicate how difficult it now is for those technology giants to take on Amazon Web Services and Google in the cloud.

​While it may not live out the big role tech companies once envisioned for it, that doesn't mean it's the end of OpenStack altogether. OpenStack may find a roll in more niche environments.

Filed Under: Cloud Computing