Tech
OpenStack is ready for the VMware refugees
Broadcom’s acquisition of VMware has left a lot of customers uneasy (and with rising bills). For the longest time, VMware was the de facto standard for enterprise virtualization. Now, a lot of businesses are looking for alternatives, and with that, the OpenStack project for managing cloud infrastructure (and one of the world’s largest open source projects) is suddenly seeing a new influx of users and interest.
Launched by NASA and RackSpace in 2010, the OpenStack project today launched version 30, codenamed “Dalmatian.”
The OpenStack ecosystem has gone through its ups and downs and didn’t immediately live up to its hype, but in recent years, it found its niche in the telecom world. That allowed the project to thrive, even as some of its corporate backers moved on or scaled back their involvement.
But now, the OpenStack ecosystem — and the OpenInfra Foundation that backs it — stands to gain from a rapid influx of former VMware users who are looking for an alternative.
“I did not have ‘VMware sparks OpenStack resurgence’ on my 2024 bingo card,” OpenInfra Foundation Executive Director Jonathan Bryce told me earlier this year. “It’s definitely been something that has driven just an incredible amount of interest. And, I would say that from our perspective, it’s something that’s developing rapidly still, even though we’re several months into this. I would hesitate to say I know how all of this is going to play out. But I think that the piece that is fairly clear to me is that Broadcom has introduced a lot of uncertainty into the the enterprise IT market.”
He noted that the vast majority of vendors who help enterprises adopt and manage OpenStack have had their customers talk to them about migrating to OpenStack, and by the middle of this summer, more than half had already done a VMware migration.
Those migrations, OpenInfra General Manager Thierry Carrez told me in an interview ahead of Wednesday’s launch, are also not as difficult as they once were. Yet, for many companies, the move isn’t just about switching platforms. “It has to be part of a wider transition towards cloud-native workloads anyway,” he said. With the new tooling, migrating virtual machines directly from VMware to OpenStack only takes a few seconds.
The real work, of course, is in setting up the infrastructure and getting the operations teams up to speed with a new management paradigm. “What’s difficult is the tools that they are used to using,” Carrez said. “When you’re used to [VMware’s vCenter management platform], and that’s the way you interact with your VMs, and you end up with something else that’s much more programmatic, much more API-driven, it’s less natural. So it’s mostly friction in the minds of people, not necessarily technical difficulties.”
Enterprises also don’t move all that quickly — and often for good reason. “Sometimes it just takes some patience and planning, and that may take months to fully implement,” OpenInfra Foundation CTO Mark Collier said. “It’s not necessarily so much about the technology gap but just what it takes when your infrastructure is the backbone of of your entire company.”
He also noted that in some companies, including a German automaker he couldn’t mention by name, the mandate is now to stand up new projects on OpenStack, even while the finance team may be working on one last VMware contract extension. “It points to a multi-year wave of OpenStack growth that we’re just kind of at the tip of the iceberg on,” he said (mixing some metaphors in the process).
For the most part, OpenStack does have feature parity with VMware, and at this point, it’s a well-known stable system. Its recent releases also helped the team push in that direction, too. That includes improved support for AI and high-performance compute workloads, for example.
With Dalmatian’s release Wednesday, the project is expanding on this theme by adding new functionality for reserving GPU instances, for example, while also adding numerous security updates, including support for virtual Trusted Platform Modules (vTPMs) and plenty more.
What’s maybe more important here is that the project is now at a point where it can react to new requirements from its users at a faster clip than ever before.
“It just goes to show that after 30 releases, so much of what drives the incremental improvement — or even major feature improvements — is just widespread adoption and our huge installed base of people doing real work with OpenStack, and it’s been that way for years,” Collier said. “The way people use infrastructure is evolving and is directly reflected in the code base and in the new features that land every six months. We’re way past the years of ‘let’s just speculatively add a feature because we think it’ll sound good on a press release.’ This is all practical stuff.”
Now, with this new group of users coming in, the overall OpenStack ecosystem is also seeing a bit of a revival — and so is the job market for OpenStack specialists. Companies like Mirantis and others who were still sustaining their existing OpenStack customers but not necessarily seeing a lot of new interest are now gearing back up to support these new businesses that are interested in the platform.
“It’s all just driven by customers that are quite frankly pissed off at Broadcom for what they’re doing to VMware with the customer pricing,” Collier said. “We know from open source and the community that trust is everything. It’s true in all facets of life, in all business, right?”
If companies bet the entire infrastructure of their business on a certain vendor and suddenly their bill goes up 10x, he said, and the partners you worked with are cutting their programs, that’s not a good look. “It’s the Wild West out there, and we’re just sitting back here going: ‘Look, there’s this open alternative that we’ve been improving for 30 releases — and it works pretty damn well. And you can actually select it without just picking only one vendor also.”
Tech
Passionfroot raises $15M to expand its B2B creator marketplace to the US
Passionfroot, a German startup building a marketplace connecting B2B creators with brands, said on Wednesday it has raised $15 million in a Series A funding round led by Insight Partners.
Rebecca Liu-Doyle, managing director at Insight Partners, said Passionfroot is placed well at a time when creators are specializing as AI companies look for more visibility.
“Passionfroot has the perfect dynamics on both sides to warrant a true marketplace for B2B creators. On the demand side, there is increasing consumerization of the way B2B brands go to market. That’s a product of, in part, AI technology requiring evangelism, narrative building, and education. On the supply side, there are people who have real expertise, understand a market deeply, and want to create quality content,” she told TechCrunch over a call.
With the funding, the Berlin-based startup’s co-founder and CEO, Jen Phan, is moving to New York, where Passionfroot is opening an office to expand its U.S. operations. The company is also opening an office in São Paulo, and expanding its current headcount of 15 employees.
As AI makes it easier to build products, companies are focusing on using creators to improve brand recall and recognition, Phan said.
“Every head of marketing or growth leader I’m talking to is saying really the same thing: AI is commoditizing software and flooding every category with new products, features, and launches. It’s incredibly crowded and noisy. That is why B2B buyers are going to channels like LinkedIn, a creator’s Substack, or a podcast on YouTube to discover new products and tools,” she said.
Phan said over the last year, the company increased its revenue by 13 times, and onboarded clients such as ElevenLabs, Figma, Replit, Framer, and Gamma.
Since its last fundraise in 2024, the company has released an AI agent called Zest, which helps brands create, execute and monitor the performance of campaigns. Passionfruit claims Zest can also help companies find suitable creators both inside and outside the platform that are suited to its marketing strategy.
The startup says it uses a proprietary creator graph based on data about reach and performance from thousands of campaigns. There’s also a wallet that companies can use to pay creators across the globe, and measure their expenditure.
Passionfroot claims it has paid at least $10 million to creators on its platform in the last 18 months.
The company says it is working on helping its clients measure how a campaign is impacting AI citations, and how their brand appears in AI-powered answers. The startup is also planning to build AI features for creators, such as helping them with monetization tips and content ideas.
The funding comes as creator platforms like Substack and Beehiiv move to help creators find better monetization opportunities. Beehiiv launched a new community and ad marketplace last week, and Substack has introduced subscriber-only perks within newsletters.
Passionfroot’s Series A also saw participation from existing investors Creandum, Supernode Global, and s16vc. The company has raised more than $21 million so far.
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Tech
Cascade raises $3.5M to help construction firms find and win projects
Cascade, a startup building a platform to help architecture, engineering, and construction firms find and win projects, has raised a $3.5 million seed round from Andreessen Horowitz Speedrun, Ada Ventures, and Snowball VC.
Launched in 2025, Cascade is a result of its founders, Hannia Zia and Joana Ferreira, witnessing firsthand the difficulty construction businesses face with predictably securing work.
“My mother worked in a company that sold materials to construction companies, and my uncle built mansions in the Middle East. They’re incredible at their craft but just don’t have access to the right tools to get more work,” Ferreira told TechCrunch. And Zia recalled the time her father tried starting a construction business back in her native Pakistan: “He just couldn’t get enough projects to sustain himself.”
Zia describes the current process of finding construction projects as a “constant treasure hunt,” with firms having to log into each U.S. state, city, district, county, and federal agency’s portals. “So if you’re really good at building suspension bridges, you have to find all of those opportunities across these disparate portals.”
Cascade aims to help architecture, construction, and engineering firms on this front by tracking ongoing and upcoming projects, and then using prior tender data to predict which developers are likely to win the deals.
Here’s how the platform works: A company signs up to the platform, and then Cascade uses AI tools to determine which projects they have the best chance of winning. It also predicts what projects are coming up, using different signals and data points across U.S. states, local districts, private contracts, and federal agencies. For example, if a state announces a $100 million affordable housing grant, Cascade will monitor which developers won the grant the last time it was announced.
“We connect that data, and we tell our customers: ‘Most likely one of these five developers will win this newly announced grant, so go start talking to them to win projects,’” Ferreira explained.
The duo applied to a16z’s Speedrun last September. They said the pressure to do well on demo day and being around the “brilliance” of other founders helped the company sign contracts with firms that have built the JFK and La Guardia airports, Four Seasons hotels, and some data centers. “Speedrun gave us visibility and a stamp of approval to close big deals,” Zia said.
The startup will use the fresh cash to go to market, host industry events, and hire more engineers.
Other startups in this area include GovWin IQ and ConstructConnect, but Ferreira argues Cascade is a bit more AI-native than these platforms.
“Every time a customer wins a bid, they give feedback, so the system keeps getting smarter. Over time, we’ll have a complete map of the industry that our AI can traverse to predict the best projects and leads for each customer,” she said.
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Tech
If you pay a hacker’s ransom, chances are that they’ll come back for more
Governments have long warned not to pay a hacker’s ransom demands, arguing that doing so only lets criminals profit from their cyberattacks and funds the next one. There’s also another reason: The hackers are unlikely to leave you alone if you pay up once, and many will come back demanding more.
In a report published Wednesday, cybersecurity giant Proofpoint said it surveyed 953 companies and found that over one-third of companies that paid a hacker’s ransom were hit with a second extortion demand. The findings underscore the long-held understanding among security researchers and network defenders that it’s impossible to negotiate in good faith with an extortion racket because there’s no incentive for the other side to actually walk away.
Proofpoint’s data shows that ransomware attacks and extortion attacks have evolved from a single transaction where hackers would get paid once and move on, into an effort using multiple forms of leverage, such as retaining stolen data under the threat of publicly releasing it.
While hackers have claimed in the past that they will delete or destroy the victim’s stolen data, past incidents have shown that not to be the case.
Last month, a hack at market research firm Klue exposed data belonging to its customers, including several cybersecurity firms. The company said it struck a deal with the hackers, who claimed to have deleted the data, but the company later conceded that a separate hacking group swiped a sample of the company’s stolen data, leaving its customers exposed to potential future extortion demands.
A similar situation befell Change Healthcare in 2024, after a Russian-speaking ransomware gang stole the health and medical data of the majority of people in America, some 192 million people. Amid a dispute between the hackers and their affiliates (criminal groups often subcontract out attacks), Change Healthcare paid separate ransoms to both groups of criminals to keep the sensitive medical data off of the internet.
Security researchers have long suspected that ransomware gangs and extortion rackets will keep hold of the victim’s stolen data, even after a payment is made. U.K. law enforcement confirmed this during their takedown efforts targeting the prolific LockBit ransomware gang in 2024. Police said that they found victims’ stolen data stored on LockBit’s servers long after they had paid the ransom.
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