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Mirantis Secures OpenStack Kingpin Status With $100M Round, Intel Collaboration

Ray Le Maistre
8/24/2015
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Mirantis has secured its reputation as the leading developer of commercial OpenStack software for communications service providers and large enterprises with its second $100 million funding round and a strategic relationship with Intel. (See OpenStack Specialist Mirantis Raises $100M.)

The news is important as it elevates the reputation of Mirantis Inc. as the go-to supplier of vital cloud software that combines the benefits of open source development with the level of trusted features and support required by commercial New IP users such as network operators. Specifically for the Light Reading community, it identifies a supplier of an industrialized version of OpenStack, which looks like the favored candidate for the Virtualized Infrastructure Manager (VIM), a vital component in the NFV Management and Orchestration (MANO) stack. (See OpenStack Doesn't Come for Free.)

In addition, the funding gives Mirantis even greater financial respectability (and should help it on its road towards an IPO) plus cash funds to accelerate the development of much needed features and applications.

That's because the $100 million funding, led by Intel Capital and including Goldman Sachs & Co. for the first time, is a mix of equity and cash. While Mirantis, in its press release about the funding round, did not specify details of the round, a filing with the SEC suggests that the equity component is $75 million, while the cash component of $25 million will be used to fund the R&D work with Intel Corp. (Nasdaq: INTC).

That co-development will "focus on adding increased capabilities for enterprise deployments," specifically "performance at scale, storage, network integration and support for big data." The aim is to "expand the use of OpenStack and ease adoption for Mirantis and Intel customers," according to the release.

Ultimately, Mirantis wants to be able to offer OpenStack packages that include applications and integration support, so making it easier for users to adopt; The recent launch of its Unlocked Appliances offering is an example of that strategy. (See Mirantis Simplifies OpenStack Clouds With Turnkey Appliance.)

The move also highlights Intel's desire to become an indispensable developer and partner to any company that is developing cloud technology. The chip giant says the expanded relationship with Mirantis is part of its "Cloud for All" initiative. (See Intel Announces 'Cloud for All' Initiative to Deliver Benefits of the Cloud to More Businesses, Nokia Unveils Telco Cloud Hardware Platform and Ericsson, Intel Target Telco Data Centers.)


Need to know more about NFV and virtualization? Then check out the agenda for NFV Everywhere, Sept. 16-17, at the Westin Galleria, Dallas, collocated with the Telco Data Center Summit


Mirantis has an impressive line-up of investors, including August Capital, Insight Venture Partners, Ericsson, Sapphire Ventures (formerly SAP Ventures) and WestSummit Capital, as well as Intel Capital and Goldman Sachs. Its previous $100 million round was announced in October 2014: Its total funding has now reached $220 million. (See OpenStack Specialist Mirantis Raises $100M.)

It also has an impressive array of customers -- including AT&T, Comcast, Orange, Sprint, Telstra (via Pacnet) and Verizon -- and partners, including IBM's Softlayer, Dell, Ericsson, Huawei, Juniper, Overture and many more. (See Juniper, Mirantis Expand SDN Partnership, Mirantis Confirms Ericsson OpenStack Deal and Mirantis Claims OpenStack Lead in Telecom.)

Naturally, it isn't the only company striving to make cloud deployments easier for major users such as telcos. Metaswitch Networks has just unveiled the fruits of such labors and offers integration for Mirantis deployments as part of its Calico v1.0 offering. (See Metaswitch Aiming Calico v1.0 at Containers and Metaswitch Unveils Calico 1.0.)

And as you'd expect, Mirantis isn't the only company offering a commercial distribution of OpenStack: Its main rival is Red Hat Inc. (NYSE: RHT), which was an early investor in Mirantis before the companies fell out. Red Hat recently launched Enterprise Linux OpenStack Platform 7, which includes some security and networking enhancements aimed at telcos.

VMware Inc. (NYSE: VMW), a Mirantis partner, also looks like it's interested in a commercial proposition with its VMware Integrated OpenStack (VIO). In a blog dated August 13, VMware noted that it will be unveiling the "new capabilities of VMware Integrated OpenStack 2.0" at the upcoming VMworld US 2015 event.

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

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Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
8/25/2015 | 11:16:31 AM
Re: Va Va VIM
VMware sees OpenStack as the future but believes it's not ready for production deployments at scale today. For now, it's shipping OpenStack APIs on top of its own vCloud cloud manager. We had more on Light Reading on this in March, in an article written by some guy: VMware Bows OpenStack/vCloud NFV

 
Ray@LR
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[email protected],
User Rank: Blogger
8/24/2015 | 10:13:16 AM
Va Va VIM
Does this seal OpenStack as the most likely option for the VIM in NFV MANO implementations? 

It looks like a slam dunk -- too much momentum.
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