Eucalyptus VP discusses cloud computing competition

Matt Reid, VP of sales and marketing at open source cloud provider Eucalyptus, discusses his company's cloud computing competition at VMworld 2010.

Read the full transcript from this video below:

Eucalyptus VP discusses cloud computing competition

Matt Reid: Hello. I am Matt Reid, Vice President of Sales and Marketing,
at Eucalyptus.

Jo Maitland: I am Jo Maitland, Editor of, at
Tech Target. We are here at VMWorld 2010, and I am interested to hear
from Eucalyptus on what you guys are seeing now, in terms of competition.
There is, Nimbula just got funded. Are you seeing these guys
in the marketplace yet? What do you offer that they do not?

Matt Reid: That is a good question. There is surely a lot of open source
providers coming into the market, there is even a few that you did not
mention, so it is a very crowded space for open source. We have been
in the market for about three years now with our open source
technology. The first statement is, we love the fact that open source
is playing a role in private cloud. We definitely are big believers,
of course, in open source, and understand it has a major play within
the private cloud space, but we also see a lot of other competitors
that are not open source, that I suppose we see more often, in
accounts. We are here at VMWorld and there are a lot of announcements
going on with VMware. We see a lot of acquisitions occurring in the
marketplace, too, from Computer Associates, Quest Software made an
acquisition recently, as well, so there are a lot of private vendors
that we see. What Eucalyptus is really focused on is providing a
private cloud solution that really utilizes the de facto standard of
Amazon API.

Jo Maitland: Explain to everyone what exactly the product is.

Matt Reid: What the product is, this is a piece of software. It is downloaded
on existing machines inside the data center, and it virtualizes the data,
the storage, and the network, it creates a pool of resource, then
provides a self-service portal for end users to access IT
infrastructure on demand.

Jo Maitland: What do you guys make of the vCloud Director product? It
essentially does the same thing.

Matt Reid: Yes. We think there is a play for lots of people to play in this
private Cloud space. We are a partner of VMware; so actually, we think
actually there is potentially a very good complimentary story for
customers that want to be able to deploy private cloud on various
different kinds of compute platforms as well as Hypervisor technology.
We see ourselves as the ability to support VMware infrastructure, as
well as Zed and KVM infrastructure.

Jo Maitland: What is the largest environment you guys have deployed?

Matt Reid: There is a couple of environments, all of them, in fact, are
government agencies, so it is difficult for me to discuss those, but
they are in the thousands of nodes. Most generally, we see accounts
that are implementing clouds in the hundreds of nodes, and we think
that we will get in the tens of thousands of nodes in 2011, so we are
preparing for that.

Jo Maitland: Wow. A lot of people are deploying on those clouds, more
work load.

Matt Reid: A lot of statistical LAMP stack applications, web service
applications, a lot of Linux space, but now we support Windows, so a
lot of development communities want to be able to support multiple
environments for testing in QA, so they deploy a lot of those. We see
a lot of scalable web services in the very large clouds. It is a great
fit for e-commerce website transactions, to make sure that user
transactions and loads are fulfilled correctly.

Jo Maitland: Going back to the question about scale. One of the things that
we heard is that companies need to be able to deploy apps and ensure that
the number of nodes basically, supports whatever it is that they have
deployed from a resiliency standpoint. I guess the Nimbula environment
deploys across every node in the system. Some other cloud OS’s deploy
on two or three nodes, which obviously are single points to failure
there. Do you know how, in terms of scalability, how you guys go?

Matt Reid: I am in sales, so whatever I tell you, I do not know how much it
will  be. We scale the billions and billions of nodes. How about that?

Jo Maitland: Right. Wow.

Matt Reid: Our CTO probably would answer it more eloquently than I would,
as far as what we do specifically around scale. We definitely are satisfying
the scale requirements of our customers. In the enterprise space, they
have specific scale requirements that we satisfy. We can basically,
have multiple clusters within our cloud environment, so literally you
can have as many nodes as you want in a Eucalyptus cloud, you just
have that multiple clusters. Generally, that is what enterprises are
doing anyway, is putting specific applications or specific Hypervisors
in a unique cluster, and it gets scaled out that way.

Jo Maitland: From a sales standpoint, how largest is your biggest deal,
in terms of revenue?

Matt Reid: Large, six figures large.

Jo Maitland: Interesting. That is a government customer.

Matt Reid: Yes.

Jo Maitland: Are any of these going to be public any time, do you think?

Matt Reid: I hope so.

Jo Maitland: It would be nice to have some case studies.

Matt Reid: I know. There are thousands of users using Eucalyptus Open
Source, and they happily willing, they are all on our public forum to speak
about Eucalyptus daily, but the private sector, as you sell to the enterprise,
they are a little bit leery about publicly speaking about technologies,
especially new technologies. This is a new space.

Jo Maitland: Right.

Matt Reid: All of them want to maintain a little bit of privacy, I think, around
private cloud until the market moves to another level.

Jo Maitland: What kind of foot traffic are you getting through here at the show?
What are people asking? Who are they?

Matt Reid: I have been in and out, but good comments from customers, from a
couple of different segments of the market where we see recent service
providers that were very much looking for cloud computer technology,
as well as the traditional large enterprise. Those are really the two
segments that are interested in Eucalyptus, so we are seeing those two
segments, and we have definitely seen more of an actual implementation -
type process occur over the last couple of months versus one of an
investigative nature. We think 2010 is still somewhat exploring Cloud;
who is out there in the marketplace? How can they fit in my data
center? In 2011, really the marketplace is exploding.

Jo Maitland: Interesting. Thank you very much, Matt.

Matt Reid: Absolutely.

Jo Maitland: Cheers.

Matt Reid: Thank you.

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