Intel joins hands with Mirantis to push OpenStack cloud computing framework

Intel has joined hands with OpenStack distribution provider Mirantis to push adoption of the OpenStack cloud computing framework.

The deal, which would include a $100 million investment in Mirantis from Intel Capital, would provide technical collaboration between the two companies and look to strengthen the open source cloud project as it speeded up the introduction of more enterprise features as also services and support for customers.

The funding would also bring on board Goldman Sachs as an investor for the first time, according to the firm, in addition to the collaboration from the companies' engineers in the community on OpenStack high availability, storage, network integration and support for big data.

"Intel is actually providing us with cash, so they've bought a co-development subscription from us. Then, in addition, we've strengthened our balance sheet by putting more equity financing dollars into the company. So overall the total funds are at $100 m," said Mirantis president and co-founder Alex Freedland,  theinquirer.net reported.

"With Intel as our partner, we'll show the world that open design, open development and open licensing is the future of cloud infrastructure software. Mirantis' goal is to make OpenStack the best way to deliver cloud software, surpassing any proprietary solutions."

According to commentators, Intel was looking to a new future for itself beyond chips.

''A new world is coming, and it is inevitable,'' said Diane M Bryant, who runs Intel's business in chips for industrial-size computing centres, nytimes.com reported. ''Everyone has to act differently.''

Intel would lead a $75-million equity investment in Mirantis, a start-up focused on open-source cloud software, and would spend in addition another $25 million on bulking up its own resources for working with Mirantis-type products, several people familiar with the deal said. They requested anonymity in order to maintain relations with Intel and other companies.

Intel, which was among companies that invested $10 million in the company in an investment round in 2013 had last year also joined another group of Mirantis investors.

Several companies that Intel had partnered with like Hewlett-Packard, Dell and IBM also made the kind of software, called OpenStack, and not long ago Intel would have been happy to lean on their work.

According to commentators, with additional investment, Santa Clara-based Intel was doing what several older tech giants had done in recent years: relying on a young, nimble company to help it remain competitive in a fast-growing market.