Dell dumps OpenStack and VMware for public cloud, focuses on private clouds

Grazed from InformationWeek. Author: Brandon Butler.

Dell has dramatically shifted its cloud computing strategy, canceling plans it once had to launch a public cloud service based on the OpenStack open source platform, and discontinuing a VMware-based public cloud it already has on the market.

Instead, the company will focus on selling OpenStack-powered private clouds that run on Dell hardware and software. Using technology it acquired from cloud-management company Enstratius, Dell says its customers will be able to deploy resources to more than 20 public cloud providers. In announcing this change in strategy, Dell also said it has a new "partner ecosystem," consisting of just three providers now, but with plans to increase that number, which will provide integrations between those partner public cloud services and Dell customers’ private clouds…

Launching an OpenStack-powered public cloud would have been an expensive investment for the company, which is mulling opportunities to go private, but Nnamdi Orakwue, vice president of Dell Cloud, said this shift is not related to the company’s broader financial position as it deals with slumping revenues in some of its legacy business units…

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