PayPal Replacing VMware With OpenStack
In a move that could become increasingly common for large virtual data centers in the future, PayPal has announced that, over time, it will be replacing VMware in its data centers with OpenStack… as many as 80,000 servers, eventually. This was potentially a big hit for VMware and soon after the story broke it looked to cause an approximately $2 Billion drop VMware’s market cap, but the VMW stock has since recovered. Perhaps an irony to all of this is that a widely used component of OpenStack, called RabbitMQ (an open source middleware-type application deployment project), was developed and is maintained by VMware.
Will the trend toward open source become a problem for proprietary virtualization / cloud computing vendors as it has for closed-source operating system vendors? May be… 😉
Read more at… http://www.forbes.com/sites/reuvencohen/2013/03/26/paypal-to-drop-vmware-from-80000-servers-and-replace-it-with-openstack/ … and at… http://www.forbes.com/sites/reuvencohen/2013/03/26/vmware-loses-more-than-2-billion-in-market-cap-on-paypal-ebay-rumors/