Rackspace’s (NYSE: RAX) announcement last week that it would release open application programming interfaces (APIs) for its cloud computing services and open-source API specs in the coming weeks is another example of cloud providers gaining advantage in the market by doing what more established players in the telecom world won’t do.
Telecom service providers like AT&T and Verizon have been late to the cloud computing game, allowing companies like Amazon and Salesforce to take the lead. And their natural reluctance toward open APIs and open-source networks – a trait they share with Amazon but perhaps to a greater degree — could well add another impediment to their competitive abilities in this space.
Hosting provider Rackspace has released the API, though not under a license, as another company, GoGrid did earlier this year. (A Rackspace spokesperson said the company is “working with its legal representatives and software architects to finalize the best licensing approach” and that more information would be available in a few weeks.) Still, Rackspace’s API openness is expected to appeal to cloud customers, who will gain greater control over their applications in the process, being able to bypass a browser-based control panel and adjust their cloud capacities dynamically and directly – through an iPhone app, for example, as Rackspace has already demonstrated. In turn, these openness efforts will increase pressure on cloud sector leaders like Amazon to join the trend. And there has already been speculation that Amazon may do just that, though the company has said it has no plans to adopt an open-source model. But analysts are most skeptical that traditional telecom carriers will embrace truly open APIs anytime soon.
In June, when Verizon introduced its cloud computing service, the company said it may introduce open APIs this year. But it was unclear exactly what the carrier has in mind. And analysts remain skeptical regarding how open those APIs will actually be.
“Platform control and ownership is critical for [traditional telcos like Verizon and AT&T], although they are under increasing pressure to promote open source, open standards,” said Agatha Poon, a senior analyst with Yankee Group. “With that in mind, it’s unlikely for traditional telcos to follow suit. If they do, they may ‘share’ the interface but not the actual implementation.”
Rackspace says it is unafraid to open its APIs, unlike other cloud providers, because it plans to differentiate itself on customer service and support. However, some recent service outages may be interfering with the company’s image-building efforts.
Yankee Group’s Poon recently demystified the details of cloud computing business models in a Telephony Webcast that you can listen to here.