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by tamarindo 5815 days ago

   imagine Amazon came up with a really good payment 
   services platform, and then said that in order to 
   use it, you had to live in their cloud. The market 
   would have to interact with their cloud to get access 
   to the payment services. Rackspace would lose access 
   to the segment of the target market that needed 
   this functionality.
Good example, but I thought the idea with OpenStack is to allow anyone to take this and run with it, customize it as they like and eventually end up with their own platform, potentially distinct from Rackspace's. In your example, Amazon says "in order to use the payment system, you have to live on the Amazon cloud" but I don't see any parallel restrictions in OpenStack, simply because it's open source and can be tailored unpredictably.

It's for this same reason that I question whether the benefits to Rackspace that you pointed out above really are such a sure thing for them. Seems like it could just as easily turn against them if someone else turns their open source solution to better advantage (assuming the open source license permits this).

2 comments

    Seems like it could just as easily turn against them if
    someone else turns their open source solution to better
    advantage (assuming the open source license permits this).
Sure, but that's their comfort space. They're confident of their skills and economies of scale here, and enthusiastic for this to be the battleground.

My point with the amazon example was partly that if Rackspace found itself needing to build something similar, it has a stronger starting point if it already has a software group. And because the platform is open, they might have a shared interest with another company who has taken on their software to collaborate on new features. Or another party may build an open payment system on top of this open system when they're not even looking, and they benefit from the network effects.

it won't hurt them. the provisioning system isn't the expensive part of becoming a 'cloud' provider.