But, he says, Eucalyptus has a solid strategy to compete against these vendors. The AWS partnership is key to that. "With AWS on the enterprise horizon and with private cloud still the enterprise focus, their strategy is on the right track," he says. "Whether it succeeds or not depends entirely on Amazon's enterprise strategy. They can give AWS some enterprise credibility and Amazon can help them fend off competitors like VMware, OpenStack and Citrix."
Still, Eucalyptus is in somewhat of a precarious position. At its keynote address on Wednesday, Amazon officials didn't exactly promote the private cloud, noting that it fails to provide customers with the ability to scale geographically or capacity-wise compared to AWS's public cloud. With large enterprises still hesitant to move all their workloads into the public cloud, though, there will undoubtedly be opportunity for some private and hybrid cloud management tools.