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HP Acquires Eucalyptus

Open Source Leader Marten Mickos Joins HP to Run Cloud Business

HP Acquires Eucalyptus to Accelerate Hybrid Cloud Adoption in the Enterprise

HP (NYSE: HPQ) today announced a definitive agreement to acquire Eucalyptus, a provider of open source software for building private and hybrid enterprise clouds.

After the transaction closes, Eucalyptus Chief Executive Officer (CEO) Marten Mickos, a respected leader in the cloud industry and a longtime advocate of open source, will join HP as senior vice president and general manager of the Cloud business, reporting to Meg Whitman, chairman, president and chief executive officer of HP.

In this role, Mickos will lead the HP Cloud organization in building out the HP Helion portfolio, based on OpenStack® technology. Prior to Eucalyptus, Mickos was CEO of MySQL, which he grew from a garage start-up to the company providing the second most widely used open source software in the world.

"The addition of Marten to HP's world-class Cloud leadership team will strengthen and accelerate the strategy we've had in place for more than three years, which is to help businesses build, consume and manage open source hybrid clouds," said Whitman. "Marten will enhance HP's outstanding bench of Cloud executives and expand HP Helion capabilities, giving customers more choice and greater control of private and hybrid cloud solutions."

"Eucalyptus and HP share a common vision for the future of cloud in the enterprise," said Mickos. "Enterprises are demanding open source cloud solutions, and I'm thrilled to have this opportunity to grow the HP Helion portfolio and lead a world-class business that delivers private, hybrid, managed and public clouds to enterprise customers worldwide."

Martin Fink, who currently leads HP's Cloud business, will remain in his roles as chief technology officer of HP and director of HP Labs, where he will focus on innovation and creating groundbreaking solutions like The Machine. Fink will also continue to lead HP's Network Functions Virtualization (NFV) business.

"We've said before that we believe the future of the Cloud is open source, and this transaction underscores our deep commitment to helping customers build enterprise-class, open clouds their way," said Fink. "We've already seen significant momentum since launching HP Helion and have put in place an outstanding team. I'm confident that Marten, a fellow open source devotee, will continue to build out the HP Helion portfolio into the enterprise cloud offering of choice."

Since introducing HP Helion in May, HP has grown share in private cloud and was ranked as the leader in the Forrester Wave report for Private Cloud Solutions.(1) In addition, HP recently announced an agreement to build and operate community clouds for enterprise customers in China, one of the fastest growing cloud markets in the world, and also announced HP Helion OpenStack Professional Services to help enterprises implement OpenStack technology-based clouds. HP is the leading code contributor to the next release of OpenStack code, scheduled for October.

HP expects the acquisition to close in the fourth quarter of its fiscal year 2014. Terms of the deal were not disclosed.

Marten Mickos on Beer & Cloud Computing

Eucalyptus CEO Marten Mickos (pictured below) continues to be a profound analyst as well as industry executive, especially when he talks about beer and cloud computing. He'll be speaking at the upcoming @CloudExpo in November in Santa Clara.

We asked him a few questions about the state of cloud computing today, and here's what he had to say:

Cloud Computing Journal: You've said public and private cloud are "two dimensions of the same world." Are you in essence saying "all the world's a hybrid?"

Story: Marten Mickos Joins Cloud Expo Silicon Valley Faculty


CEO Marten Mickos taking questions from audience following his Cloud Expo Silicon Valley 2013 presentation.

Marten Mickos: I am not saying that all the world is or will be hybrid. I am saying that most application workloads will not know whether they run on public or private clouds. The workload will see uniform APIs with uniform behavior.

Perhaps beer could serve as an analogy. You have beer on tap (public cloud) and beer in a bottle (private cloud). If you pour beer into glasses, most people won't know the difference. Even if they know, they won't mind the difference, as long as they get cold beer.

You can say that draught beer and bottled beer are two dimensions of the same thing. The most discerning consumers will care a lot. But many will be happy with just a glass of cold beer. As the one providing beer, you must have both draught and bottled. If one delivery fails, you always have the other. And some customers are very particular on that topic.

It's the same with cloud.

CCJ: Yes, I see. I think we can all drink that in.

Now, what are the challenges for IT execs and managers who find themselves in not only a hybrid environment, but a multi-cloud environment? That is, maybe AWS here, GCE there, with Eucalyptus in a private cloud somewhere else? It seems this can happen when one company is acquired by another.

Marten: Multi-cloud environments are tricky, because they're so much is different. If you have AWS, GCE and Azure in use in your company, you will essentially need three different teams to work with those clouds. And you won't be able to move workloads easily between them.

It's conceptually not unlike the situation where you have Windows laptops, Linux laptops and MacBooks in use in a corporation. People and workloads will gravitate towards one of those camps, with little exchange of thoughts or innovation between the groups.

If you have AWS and Euca, however, you just need one set of training and one set of skill and design paradigms. You can use the same tools on both environments. And applications can run on either, irrespective of which environment (AWS or Euca) they were originally developed for.

CCJ: And now an evergreen we always need to ask: what's your view of OpenStack and Apache CloudStack these days?

Marten: CloudStack is wonderful technology that I have always respected.

OpenStack is hugely popular, still struggling to get its design cleaned up and the code hardened. I wrote about OpenStack in two blog postings:

OpenStack love by Eucalyptus

OpenStack critical analysis

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More Stories By Roger Strukhoff

Roger Strukhoff (@IoT2040) is Executive Director of the Tau Institute for Global ICT Research, with offices in Illinois and Manila. He is Conference Chair of @CloudExpo & @ThingsExpo, and Editor of SYS-CON Media's CloudComputing BigData & IoT Journals. He holds a BA from Knox College & conducted MBA studies at CSU-East Bay.

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