Cisco announced a deal to buy Metacloud yesterday, affirming two big trends in cloud computing: 1) Private cloud and 2) OpenStack.
Metacloud is a provider of "OpenStack as a Service" offering, meaning it enables enterprises to set up cloud applications and services in their own data centers using the open-source OpenStack platform. OpenStack has gotten a lot of attention as a virtualization environment comparable to VMware (VWW), because it holds many advantages of open source such as speed of development and lower costs.
The OpenStack vs. VMware debate was in full swing at the recent VMWorld conference, and Cisco may see this as an opportunity to fight back at VMWare's dominance, as a growing conflict between the companies appears to be developing. The Rayno Report predicted this as far back as 2010.
The Metacloud offering seems perfect for the market -- and obviously Cisco -- because it takes advantages of the growing interest in OpenStack at the same time as increased interest among enterprises to build their own private cloud services.