Cloud Computing Economics - There Is No Free Service

Cloudonomics Journal

Subscribe to Cloudonomics Journal: eMailAlertsEmail Alerts newslettersWeekly Newsletters
Get Cloudonomics Journal: homepageHomepage mobileMobile rssRSS facebookFacebook twitterTwitter linkedinLinkedIn


Cloudonomics Authors: Lori MacVittie, Skytap Blog, David H Deans, Shelly Palmer, Tim Crawford

Related Topics: Cloud Computing, Cloudonomics Journal, OpSource Journal, SOA & WOA Magazine, Mergers and Acquisitions News in Technology (M&A)

Article

OpSource Gets Bought

Dimension Data says it wants OpSource to accelerate its global cloud strategy

OpSource, the cloud house, has been bought by Dimension Data, a $4.7 billion global ICT services and solutions provider and a wholly owned subsidiary of NTT Holdings headquartered in South Africa.

As it happens NTT is an investor in OpSource, or was. Dimension Data has now bought NTT's piece out.

Terms of the acquisition were not disclosed but OpSource saw $56.5 million in funding over the years from Artiman Ventures, Crosslink Capital, Intel Capital, Key Venture Partners, Velocity and NTT. NTT owned 5% of OpSource since 2009.

OpSource public cloud platforms are also hosted in NTT America's data centers in Virginia and California and expansion into one of NTT Europe's data centers is expected in Q3.

Anyway, Dimension Data says it wants OpSource to accelerate its global cloud strategy. Time-to-market don't you know.

It's set up a centralized Cloud Solutions Business Unit reporting to Dimension Data CEO Brett Dawson where it'll plunk OpSource and all of its 150 people, down to accounts receivable. Other resources will follow OpSource into the unit.

We shall have to wait to see if OpSource CEO Treb Ryan winds up running the whole megillah.

Dawson says the acquisition aligns with Dimension Data's plans to become a services-led business. Over the past few years, the South African concern has been building cloud-related skills and capabilities in virtualization, data center and storage, managed services and hosting, and IT outsourcing - all critical to enabling cloud architectures for its clients.

With OpSource, it gets an actual cloud and managed services outfit, a set of services, a cloud architecture and experience in cloud services that it can pair with its native skills in complex multinational systems integration that it figures are critical to helping organizations adopt a cloud architecture.

In a statement OpSource CEO and co-founder Treb Ryan said, "Mapping a migration path and architectural design for cloud is complex and requires in-depth understanding of an organization's entire IT infrastructure, architecture, and relative interdependencies and risks. An understanding of IT integration across disparate multi-technology, multi-geography IT environments is critical to evolving toward cloud-based architectures. We believe that as part of Dimension Data, OpSource will be better able to capitalize on the global cloud computing market opportunity."

Although OpSource has operations in the UK, Ireland and India its international business leaves a lot to be desired. Dimension Data, on the other hand, is cozy with two-thirds of the Global 500. OpSource also expects to be able to fan its telecom business.

It claims 600-odd enterprises, service providers and SaaS ISVs use its cloud computing and hosting environments.

Data Dimension is reportedly the largest reseller of Cisco equipment worldwide and the biggest of the vBlock handlers.

Conveniently, OpSource and VCE, the Virtual Computer Environment Company put together by Cisco and EMC and representing VMware and Intel's interests as well, struck a pact a few weeks ago when VCE found itself embarrassingly short of so-called orchestration widgetry for its supposed-to-be-so-simple pre-packaged pre-qualified vBlock compute, networking, storage, virtualization and management technologies.

OpSource is providing those precious hourly, subscription-based it-can't-be-cloud-without-them pieces like sign-up, metering, billing, reporting and self-service provisioning of cloud-based CPU, memory, storage and networking.

Small world, isn't it.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.