Using OpenStack in a traditional hosting environment posed scaling challenges that required automating provisioning across multiple data centers. OpenStack was chosen for its open source support, typical cloud features, and ability to transition to a future cloud offering. Bluehost implemented OpenStack across over 10,000 servers, addressing issues like unstable messaging, overloaded MySQL, and premature networking plugins. Solutions involved read-only databases, optimized configurations, and custom scheduler, quantum, and nova components.