These are two different versions of OpenStack versions.
Essex was released in spring 2012 (release No. 2012.1), Folsom will be released soon this month (2012.3 will be released).
Major changes will be discussed in the release notes described in the project here: http://wiki.openstack.org/ReleaseNotes/Folsom . These release notes are still populated by various projects.
At a high level, the biggest change is that the component / functionality of the volume has been split into its own project (cinder), adding a new project to the OpenStack kernel. I do not personally update in all changes, but I believe that the API has remained almost identical for most services. I know this is for Keystone (identification components), as we are still working on the "v3" api for the keyword.
heckj source share