Intel To Lead $100M Investment in OpenStack Cloud Company
Tech giant Intel is betting big on cloud services. The company just led a $100 million round of funding in a pure play OpenStack company. Intel’s investment into Mirantis should help the company optimize its enterprise features and drive more industry adoption.
First rolled out in 2010, OpenStack cloud software is built by a team of open source contributors under the guidance of the OpenStack Foundation. In just five years, it has become the fifth most popular cloud platform among global companies, according to market research firm Forrester Research Inc. The latest investment aims to help spur adoption by making it easier to deploy and integrate the technology into data centers.
“As enterprises embrace public, private and hybrid cloud strategies, they need choices in their infrastructure software,” said Diane Bryant, senior vice president and general manager at Data Center Group, Intel, in a statement. “OpenStack is an ideal open solution for cloud-native applications and services, and our collaboration with Mirantis is well placed to ensure the delivery of critical new enterprise features helping to create of tens of thousands of clouds.”
How Intel Is Helping
Intel, Goldman Sachs, August Capital, Insight Venture Partners, Ericsson, Sapphire Ventures (formerly SAP Ventures) and WestSummit Capital invested in the latest round. Intel is doing more than offering cash, though. The company is collaborating with Mirantis on the technical side of the table as it works to create tens of thousands of new clouds as part of its Clouds for All initiative.
Intel’s technological insights will work to add more capabilities for enterprise deployments. Specifically, Mirantis and Intel will work to address issues like performance at scale, storage, network integration and support for big data.
Alex Freedland, co-founder and president of Mirantis, is more than a little bullish on the prospects of its OpenStack distribution in the wake of these endorsements. With Intel as its partner, he said he is convinced Mirantis will “show the world” that open design, open development and open licensing is the future of cloud infrastructure software.
“Every industry is being disrupted by software,” Freedland said in a statement. “Smart enterprises are embracing the cloud to grow top line revenues and get new services to market faster.”
Mirantis Has Momentum
We asked Zeus Kerravala, principal analyst at ZK Research, for his thoughts on Intel’s collaboration with Mirantis. He told us it’s a great move.
“Obviously, Mirantis is trying to make headway in the OpenStack space. There are a lot of other IT vendors, including IBM and HP, that have all jumped on board as well and there’s a clear commitment to the OpenStack market,” Kerravala said. “In order for the cloud really to take off it requires a collective effort from all the vendors involved. There’s really a who’s who now in the OpenStack space. This is a good commitment from Intel.”
Mirantis certainly has momentum. In 2014, the company announced the largest Series B round in open source history at $100 million and the largest public sale of OpenStack software ever -- $30 million with Ericsson. Top line revenue grew 150 percent year-over-year and the company added more than 70 new enterprise customers. The company also opened new offices in Amsterdam, Austin, Grenoble, Hong Kong and Tokyo.