NASA and Rackspace spun up OpenStack as an open-source alternative to VMware for spinning up clouds two years ago. Now VMWare has applied to become a full OpenStack member with a decision to be taken at the OpenStack group’s first full board of directors’ meeting today. Intel and NEC will also apply to join OpenStack at the …
Where do VMware and OpenStack compete?
VMware (vCloud) and OpenStack compete on the "Service Layer" to infrastructure services, which includes virtual machines (hypervisors), but includes other services e.g. Swift (Object Storage Service) and many of the emerging community projects, some of which VMware's vCloud lacks.
They don't compete on hypervisors, OpenStack's Nova (Compute Service) supports multiple hypervisors (Xen, KVM) but only has limited support for VMware's vSphere, perhaps something VMware will fix as part of their membership..