Dive Brief:
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Hewlett Packard Enterprise (HPE) has laid off an undisclosed number of developers involved in the open source cloud computing project OpenStack, according to ZDNet. The company confirmed the layoffs.
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HPE may be considering the sale of its OpenStack Helion software assets, unidentified sources also told NetworkWorld.
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HPE sources say its spin-off/merger with Micro Focus that took place earlier this year has simply caused a reorganization of employees.
Dive Insight:
The OpenStack layoffs may indicate HPE is further retreating from the ultra-competitive cloud market amidst tough competition from AWS and Microsoft. Last year, HPE pulled the plug on its Helion hybrid cloud offering, but has been a major OpenStack cloud developer to date.
Mirantis, another company key to the OpenStack project, recently laid off about 100 OpenStack developers, according to its co-founder and Chief Marketing Officer Boris Renski. Experts say the two cuts could indicate an issue with OpenStack itself. But OpenStack Foundation Director Jonathan Bryce told ZDNet that the OpenStack project is “healthy and growing.”
Last month, HPE laid off employees that were part of a team producing Stackato, a service that enables developers to create applications that run on private, hybrid or public clouds.
