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This is mainly for me to dream what would be if I could get together enough hardware.

So the question is how to build a cloud on a budget and whether open source is stable enough.

I found OpenStack which looks promising.

Are there any suggestions on how to setup a cloud which can support 10-20 live instances
Is it possible to build a heterogeneous cloud, mixing machine types?

Ive done a good amount of work in the cloud(Amazon's and IBM's) but I have never fully understood what is necessary for a setup like that to work.

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The fun thing is that you can start with 2 machines, where both could even be VMs on the same hardware. Have a look at OpenNebula http://www.opennebula.org/

You will not have the scalability, but the same management interfaces. And from there it's just making more resources available to the management node...

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I understand that OpenStack is aiming for massive scalability as a main feature. But is there any concrete evidence (benchmarks, reviews, ...) that the current version of OpenStack Nova is any more scalable than the current version of OpenNebula? –  user12889 Mar 21 '11 at 1:24
    
I can't answer that - and I did not investigate, because I do not plan to scale up to such dimensions. I'm more worried that my private cloud has the ability to scale seamlessly across private and public resources, and that is one thing Opennebula can do. –  Florenz Kley Mar 21 '11 at 8:06
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If you're familiar with Amazon's EC2 have a look at Ubuntu Cloud http://www.ubuntu.com/business/cloud/overview

I've just started playing with it, but from everything I can gather it is very scalable, well supported and is easy to set up.

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