Openstack mexico

jesse.noller@rackspace.com@jessenollerhttp://developer.rackspace.com
C O M M U N I T Y I N
A C T I O N
C O M P E T I N G O N Y O U R S T R E N G T H S
First - my thanks for having me here and KIO Networks for hosting this openstack day. Pacific Rim references: quickly describe the giant leviathans out of
no where attacking humanity.

W E D I D N ’ T S E E I T
C O M I N G
You don’t see it coming. Especially if you've been in the market, and profitable for years even through multiple bubbles. A while ago - the dot-com had
popped, and Macromedia had bought Allaire (where I worked) we had been riding high on an IPO but had been "acquired" - one of the executives stood
in front of the entire company holding a feature phone with a maybe 32 bit color screen, and said triumphantly "Flash is the platform of the future, and it
will be on all phones."
!
We know how that worked out.

M A R C H 2 0 0 6 : A M A Z O N S 3 R E L E A S E D .
A U G U S T 2 0 0 6 : A M A Z O N E C 2 B E TA
… 8 Y E A R S
That's how long it's taken most of the market to stop laughing and doubting the significance. 8 years as everyone from hosting providers, to enterprise
companies selling everything from storage to big data to realize the game had changed.
I remember the day Amazon S3 was launched. I was working at a startup trying to take down the EMC Centera product. We all laughed, knowing what a
"bookseller" has built was a direct competitor to us, to Centera - but no one would take it seriously.

I N F R A S T R U C T U R E I S D E A D
L O N G L I V E I N F R A S T R U C T U R E
DISRUPTION
"Pacific Rim"© Legendary Pictures
Disruption. You don't see it coming. You don't see the shift away from expense service contracts of old, shrink wrapped software to app stores. You're
dominate in a market or close to it, and you laugh it off. The next thing you know, you're wondering what hit you.

W H AT D O E S I T L O O K L I K E ?
• Amazon, Google, Microsoft and IBM have made cloud a priority and
are investing a lot of money to reenforce it as the future of computing.
• Amazon: $6.5 billion in R&D alone.
• Google: $8 billion into R&D, more than $1 billion each quarter
into building data centers.
• Microsoft: $10 billion into R&D, new CEO built his career on
cloud.
• IBM: Bought Softlayer for $2 billion; commits $1.2 billion on new
data centers. Builds proxy for Openstack->Softlayer integration.
Who are the new incumbents? These companies who reacted or triggered the revolution, instant on, API driven infrastructure that empowered a new
generation of developers and startups.
These companies are unencumbered by consensus building--they can finance investments in cloud through other profitable business lines, be they books,
advertising or operating systems.

R I G H T N O W T H E Y ’ R E
W I N N I N G .
Our markets have been irrevocably altered; and while some number of all of our existing revenue streams, enterprise repeating sales on the upgrade
cycle, stack & rack professional service engagements, etc will yield revenue for a few more years, they already are, and will continue to decline.

– N P R 4 / 2 3 / 2 0 1 4
“Prices have fallen so fast that Amazon doesn't
rule out the possibility that prices for its
services could wind up at or close to zero.”
Both amazon and google have already set the signal: infrastructure - compute, storage - the core of infrastructure as a service - even web application
platform as a service prices will drop as the economies of scale we can not beat individually continue to drive prices for these down.

A PAT T E R N T H AT N E V E R W O R K S
BUILD A WALL TO PROTECT OURSELVES
Build a wall to keep the the competition out and maintain "business as usual" - a common and frequent response by enterprise vendors (you see this in
the storage space every 5 years) hoping that by just doubling down on "more of the same" they'll maintain margins and be able to continue as-is. This is
sticking your head in the sand and hoping the problem goes away.

FA D E T O B L A C K
Make no bones: most industries and companies who have been fundamentally disrupted die.

T H AT ’ S W H Y W E F O U N D E D O P E N S TA C K
ALL IS NOT LOST
We didn’t found OpenStack to be an alternative, an ‘also ran’ in the cloud computing world. We wanted openness, collaboration and community to be the
future of our industry—so that we can enable a new generation of applications and opportunities for our customers.
A future built on community and collaboration where each one of us contributes based on our specialization and strengths.

A S I N G L E V E N D O R C A N
N O T “ W I N ” T H E F U T U R E
All of you here; even those of you who Rackspace competes with, or those building competitors to one another in the emerging LATAM market; are all
part of the future we wanted to build - a future free of vendors competing for lock-in on the software and even hardware level.

J U S T A S K U N I X , V M S , A I X , E T C , E T C
COMMUNITY AND OPEN TECHNOLOGY
CAN
Community and open source, open technology can build a future built on community and collaboration where each one of us contributes based on our
specialization and strengths.

D E V E L O P E R S
Developers are the key

“ T H E N E W K I N G M A K E R S ”
DEVELOPERS MAKE THE CHOICES
Look at what made the behemoths knocking on our door: developers. Developers across all sectors now account for the majority of influence when
applied to technology decisions. This power is accelerating.

T H E B E Z O S 2 0 0 2 M A N D AT E
• All teams will henceforth expose their data and functionality through service
interfaces.
• Teams must communicate with each other through these interfaces.
• There will be no other form of interprocess communication allowed […]
communication allowed is via service interface calls over the network.
• It doesn't matter what technology they use. […]
• All service interfaces, without exception, must be designed from the
ground up to be externalizable. […] team must plan and design to be able
to expose the interface to developers in the outside world. No exceptions.
• Anyone who doesn't do this will be ﬁred.
Look at how they were empowered for example - this (the infamous Bezos memo) and others like it show a unique perspective that helped shift the
market well away from the central decision makers of 10 years ago to the developers building the applications. Applications communicating over simple
REST APIs - Service Oriented Architectures are now the norm.

… W E H AV E A B E T T E R
F U T U R E .

W E M U S T G I V E P O W E R
T O T H E D E V E L O P E R S
Developers made the market that we defend against and gave power to the disruptors at our doors. We can give them a new, better future.

D E V E L O P E R S S H O U L D N O T C A R E W H E R E
THE APPLICATIONS ONLY WANT TO RUN
Applications don't care about vendor infrastructure capabilities or are tailored to specialized services a vendor provides as demanded by the needs of the
application. Heck, application logic can be built today to take advantage of price arbitrage between vendors!

O M N I P O T E N T A P P S
What does this mean? Applications that dynamically adapt to vendor capabilities or inherently adapt to pricing changes.
Applications that have a complete and global scale. These applications will utilize any and all Openstack vendors, on premises, off, private or public.
Millions of cores across the globe to scale and adapt independently.

FA L S E D I C H O T O M Y
PUBLIC? PRIVATE? BARE METAL OR
CONTAINERS?
There is no such thing as a “public cloud” or “private cloud” - there are simply services delivered over an API remixed to provide value. Locality begins to
matter less and less. There is simply metered, on demand resources built on openstack and delivered on a network. “Private Cloud” begins to become a
security model; not a deployment model

H I N T: I T ’ S O P E N S TA C K
THE GLOBAL CLOUD
Imagine building Facebook today where you could take advantage of privacy laws in a given country by having your application code "know" where it
really is. Imagine a mobile application backend that never has an outage because a vendor has a global outage - it simply, without missing a heart beat,
uses data centers from another vendor, or in another country.
Benefits:
Costs
More capabilities (for less money)
Ability to use vendor specialization and services at will

T I P P I N G P O I N T
We are at the threshold of something truly powerful and epic; a planet-scale, fully interoperable cloud where users can build applications that "float"
above a specific or singular vendor.
!
We are not that far away from this future: you can actually do this with a non zero amount of work today: we're almost there. The community is the key
and everyone in the room - even if you think you're competitors are enablers of this future.

M E A N W H I L E , T O D AY
If you're company in today’s market; you need to specialize - not on an implementation of openstack, or deploying openstack or only rolling your own
cloud - that's a short-term bet and will be rapidly commoditized. You need to specialize above the infrastructure and technology level.

INFRASTRUCTURE
COMMUNITY
EXPERTISE
TECHNOLOGY
COMMODITY
VALUE
The upper two sections here - Community and Expertise? Theses are the value areas all of us should be deriving customer value on. The lower parts?
Those are methods of value *delivery* - those are table stakes in the market. Software isn't a differentiator.

INFRASTRUCTURE
COMMUNITY
EXPERTISE
TECHNOLOGY
Yup; the lower two levels? Covered by Openstack - “but hardware!” you say? I can say that hardware vendors are scrambling as well. Rackspace for
instance has signed on to the open compute project and encourage *all* vendors to sign on as well - a future powered by openstack and open compute?
Where vendors can focus on serious end-user and developer value is where we must go.

B U T W H AT A B O U T C O M M U N I T Y &
E X P E R T I S E ?
Support (‘sup Rackspace)
Customized Purpose-built hardware?
Security: Encryption at rest controlled by users
Data Centers? Points of Presence?
PaaS for all workloads! Application lifecycle
management - one click scientific workload
deployments…
And here we get into specialization areas. The value further up the stack and most important to end users.
* Support and developer experience: how do you help make your users more knowledgeable and therefore successful? Who do you call when any cloud
goes down?
* Customized hardware (accentuating open compute) - servers packed with storage and CPU for swift + ZeroVM big data deployments? Nova-on-a-chip?
* We don't want a "highly secure" version of openstack: we want security provided to users on this global scale above openstack (heartbleed?)
* Imagine building something for developers in the data science arena where a users could do a “git push” and have a genome crunching cloud take
over?

S O M E W I L L C O M P E T E O N C O S T.
T H AT ’ S O K
And yes - some will compete on cost; maybe someone will build a cheap open compute openstack deployment on a bunch of chips in a shipping
container. I’d buy 50 of them!

B U T H O W D O I
C O N T R I B U T E ?
You might be asking how, or what, needs help in openstack? We’ve learned from our mistakes and are working hard on fixing them. Learn from what we
already did.

S T O P C H A S I N G
F E AT U R E S !
We have to make what we have bullet proof: STOP CHASING FEATURES. We're letting the bookseller and the ad agency determine all of our (re)actions.

O N E C L I C K C L O U D
D E P L O Y M E N T S .
One click deployment; simplicity! Today it requires teams of people to deploy it and run it; we know; we run the worlds largest public openstack
deployment. We have entire teams dedicated to each openstack service we expose.

• Quality: get involved in infrastructure and testing.
• Performance: Openstack doesn't have to be the
fastest: but is has to be faster.
• Reliability: Openstack must be known as the cloud
OS that won't fail you.
• Scalability…
Here’s a few areas where the community needs help, or is understaffed (and Rackspace is working on getting more involved - remember that learn-from-
our-mistakes thing?) but scalability is near and dear to me…

Y O U K N O W W H AT S M O R E
I N T E R E S T I N G T H A N 1 0 0 C O R E
D E P L O Y M E N T ?

A B I L L I O N .
Right now the community is aligned on small private deployments - small private deployment are uninteresting to the world as a whole. What's interesting
are hundreds of thousands of core deployments. We have to aim higher as a community - but to do that we need more hardware for the foundation. We
need you - our specialists to help find and fix scalability bugs.

C O D E I S T H E E A S Y PA R T
O F O P E N S O U R C E
Code is the easy part of Open Source and technology: Community is the hard part; but thats where we all must be! Open Source & Open Technology is all
about doing what you are best at. Your passions drive your specialization and you bring that to the community to enhance it.

P U N C H A M O N S T E R I N T H E FA C E
SUCCESS

W H AT D O E S S U C C E S S L O O K L I K E ?
• When we can seamlessly move a workload
between vendors public, private, across country or
the world
• When we have interoperability; when developers
are empowered on a code level to act and
automatically react to vendor pricing and
capabilities
• More Openstack providers with clear differentiation
Workloads
Interop
NO MORE ME-TOO Clouds.

I T S H O U L D B E T H E
D E FA U LT C L O U D .
Just like the linux kernel; We’ll truly know success, when as we build off one another’s compliments and strengths as a community; we become the default
cloud. Other companies adopt and adapt to our APIs and capabilities.

E V E RY I N V E S T M E N T W E M A K E I N
U S A B I L I T Y B R I N G S D I V I D E N D S T O
T H E E N T I R E C O M M U N I T Y.
This is one of the key things Rackspace has been thinking a lot about, but something near & dear to me being focused on Developer experience.
Everything we do today for usability gets us closer to a global, interoperable, open cloud.

WA L L S B A D , M O N S T E R S S M A S H
NO
There are concerns that should be on the top of your mind -
Legacy competition: We threw up walls to keep the monsters out.
We all think we're competing with each other when we're not: all of us have common goals (and maybe “enemies”) we have to fight for a brighter future.

P R O P R I E TA RY V E N D O R S W I L L
A LWAY S M O V E FA S T E R A N D H AV E
M O R E F E AT U R E S
That’s precisely why we need to focus on being more reliable, interoperable and on not duplicating each other’s work. It’s not a feature race, it’s a race to
quality, scale and developer power.

C O N S E N S U S I S H A R D T O B U I L D ,
D I F F I C U LT T O M A I N TA I N
Anything five smart people in our community can agree on is probably pretty close to being the “right thing” to do from a technological perspective.
Deliberate steps in the right direction are better than hurried steps in the wrong one. But we do need to speed up in the right ways.

I N T E R O P E R A B I L I T Y I S G O I N G
T O C O S T U S C U S T O M E R S
Double down on what makes you different; not more of the same, or the things you think you know. let your company be defined by what you do on top
of this global cloud.
Not what flavor of it you run or who in this room you used to compete against

W H AT I S Y O U R S P E C I A L I Z AT I O N
FOCUS ON WHAT MATTERS MOST
Focus on your specialization! The more users we can get using OpenStack and building applications on top of it, the greater the opportunities will be for
the rich ecosystem we need.

T H E N E X T G E N E R AT I O N

A G L O B A L FA B R I C
THE CLOUD; AN IMPLEMENTATION DETAIL
If you had applications that don't care where they run and can leverage any specialized service or tool someone in this community provides
!
Developers would be able to focus solely on code providing global cost efficiency to businesses and themselves. Their time from Idea to Execution
becomes close to zero. We would see a new wave of new ideas and startups across the world leveraging what we have built together.

O P E N S TA C K E M P O W E R S A L L O F U S
OUR COMMUNITY MAKES US STRONG
Even you, as a vendor would be able to build on this global fabric - this next generation of the "internet" to execute on ideas instantly. You rise above the
commodity game to build infinitely scalable applications comprising any type of workload; from genome crunching to cure intractable diseases to 3d
rendering for, say - a movie about giant robots punching monsters.

jesse.noller@rackspace.com@jessenoller
T H A N K Y O U
Jesse Noller
Principle Engineer /
Developer Advocate
@jessenoller
jesse.noller@rackspace.com
developer.rackspace.com
Again, thank you to KIO Networks for sponsoring

I N T E N T I O N A L LY L E F T
B L A N K

Openstack mexico

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