>> Live from Seattle, Washington, it's theCUBE, covering KubeCon and CloudNativeCon, North America 2018. Brought to you by Red Hat, the cloud native computing foundation, and its ecosystem partners. >> Hello and welcome back to theCUBE's live coverage day three here, theCUBE covering KubeCon and CloudNativeCon 2018 in Seattle. I'm John Furrier, with Stu Miniman, and Justin Warren here to break down the action. Justin Warren, as you know, is Guest Analyst for us at many events, Chief Analyst at PivotNine, coming all back over here again, to break it down. So we're going to dissect what's going on here at KubeCon, CloudNativeCon. This is, some say, me, the last stand to stop Amazon. Justin, good to see you. >> Good to see you as well, man. Stu, my first question is, as the show winds down, day three, a lot of people have left, all the big execs are gone, it's kind of last day, people coming together, party was last night, so we kind of see all the action, we kind of fished this pond dry, in theCUBE here, the last couple of days. The themes are starting to emerge. What are you seeing, what's your thoughts? >> Yeah, I mean, first of all, John, 8,000 people, this is, you know, geeks that are really excited, and I mean that in the best of ways, of course. There's actually, there were people here before the show started, doing lightning talks and full day sessions. Tomorrow, there's an operative session that another 250 or 300 people will be doing Friday, so, you know, and people want to just suck the marrow out of the bone that is everything going on here, just get every ounce of knowledge here, and they are deep into this session, so, this is a great community. The question I want to ask you guys is you were at Amazon re:Invent two weeks ago. We've watched that show. I want the compare and contrast of this ecosystem and show, not just compare it to like, say, open stack, which we've been teasing apart all week, and I think there are some things we need to worry about, but a lot of good differences. But compare against the big one in the room, which is Amazon, and a big difference is Amazon is here, and they have a seat at the table, because they have to, and customers will force them there, but you know, should this worry Amazon, and how does this ecosystem compare with the Amazon ecosystem. The big thing for me is, I understand how people make money in the ecosystem of Amazon. I'm still trying to figure that out here. >> Yeah, eh, it is a different ecosystem. It does have a bit of a vibe of it could be the new re:Invent. We've had conversations over the last couple of days about-- >> Or is this the independent cloud, >> Exactly. >> You know, open ecosystem. >> It is the independent show that we've been waiting for, that we've wanted since COMDEX and Interop kind of went away, and it's all been vendor shows, and now we have an independent show where all the vendors can come and have kind of a neutral meeting place, and we can all gather together and have some common ground, which is like, that's what Kubernetes is. I've been saying over the last couple of days, Kubernetes is like the ethernet of cloud, so it's something which is an agreed standard and we can all collaborate on, and then, you never bet against ethernet. So know you can build all these other things on top of that platform, yeah. >> Just a quick note on that, right, that's Interop, and networking was at the core of that. It was basically everybody, oh, it's the chance of if we give true interoperability, maybe we can do multi-vendor and it won't all be Cisco, who dominated that market. Amazon's the same. >> Stu, this is to me, ethernet's a great example. I say TCPIP as well. Both are enabling technologies that are standardized, or actually started as de facto standards. They weren't necessarily bona fide standards. They emerged when people rallied around them. Those de facto standards, emerge and become a catalyst point for people to build on top of and around. Remember, there's still a lower level below the stack on ethernet. So you had, you know, physical data link layer in the OSI model, the grandfather of all stacks. That really changed, I think, 20 years of growth and innovation. I think Kubernetes is, exactly right, Justin, it's exactly your point. I see that as well, that it's not so much Kubernetes is going to be the be all end all. It's what it enables, and I think the innovations on top of Kubernetes, and underneath Kubernetes, take the holy trinity, I've been saying this on theCUBE now for the past year, the holy trinity of infrastructure and IT is storage compute networking, and those things are now being repurposed in a way that is highly scalable, dynamic, and resourceful for a lot of things. AI is a great example, everyone talks about AI, but storage policy, the knobs in Kubernetes can manage, and Google saying the guys of Kubernetes. That's one of the most underutilized aspects of Kubernetes, is the networking guys managing the knobs from below, and then app guys with servers messing maybe on the top. This is just an absolute growth engine, and the comparison to Amazon is similar, because Andy Jassy talks about builders, the right tool for the job. This is essentially the same mantra. I mean, this is tools, platforms. >> It's very similar, but with one very important difference, and around the money side of things. You don't have this massive behemoth which is going to come in, and one year you're on the keynote, and the next year we just announced a product, which completely killed your business. It's open source. That's not really going to happen. So you've got that common core of things, where there's no real competitive advantage on this stuff. So that's, you know, Linux, where's the competitive advantage on a kernel? There isn't one. So open source makes great sense for that kind of core of things that you then build upon, and then all the money is in all the innovation, all the value add that goes on top of that, and that makes a huge amount of sense to have an open source show for that. >> And I think, Stu, one of the things that we always talk about, networking in cloud, I think the concept of cloud is going to be old hat. You heard it here first on theCUBE. Because cloud is Amazon, cloud is a set of resources. When we start thinking about IoT at the edge, when you talk about moving compute to the edge, you're going to start to see mesh networks, peer to peer, and add a new kind of platform configurations that isn't necessarily cloud. It's a new thing. It's a platform, open platform, and there's going to be some incentives that are going to be designed for startups, that's economically beneficial to the new kinds of things, versus the economic incentives that Amazon might not have, to do things. So I think we're going to see emergence of new stuff. I would still say that cloud is a state of mind, it's not a location. And we here, it's CloudNativeCon. It's not just KubeCon. It's about doing things in a cloud native way, and that, like you say, it doesn't matter where it is or how it communicates together, but it's the way you operate it, it's the way it actually works in practice. It's not so much of, oh, we're going to build it here and we're going to put it in that cloud, or that cloud, or that cloud. >> And I think we've had some real clarity as to what that future of multi cloud looks like, 'cause it's not one massive cloud everywhere, it's not, oh, my applications spanning all over the place. It's we're working to solve that really tough problem of distributed architectures, and giving us ways that I shouldn't have to think about where I am spinning that up, or if I need to change vendor, not necessarily portability, you still do have some lock in, because Kubernetes is not the full stack, it's a piece of the overall platform, and while there's 75 different versions here that are all compliant, I should be able to move between them, but the devil's in the details, and there's lots of stuff that goes on top. >> Let's talk about multi cloud for a second. 'Cause you mentioned COMDEX, you talked about ethernet. At that time, during those big revolutions, the word multi-vendor was a big buzz word. Multi-vendor was like the basis of COMDEX. We all got to play together. Multi-vendor meant choice. Today, multi cloud is just a modern version of multi-vendor. >> Exactly, it's multi-vendor, and that's what enterprises want. Enterprises are a bit wary now. We hear lots of conversation about lock in, and that comes up a lot, and it's a real thing. Enterprises are concerned, they don't want to bet on one company, and then find out that actually, it's technology, it changes, things need to be moved around. We don't want to wake up in five, six years, and then suddenly find, oh my god, I can't change anything because I'm locked into this one vendor. >> So, Justin, they say they want multi-vendor. When it came to networking, I spent years working on interoperability, and plug tests, and all these things, and at the end of the day, it was way better to get my standards plus with a single vendor than it was to try to loop them together, and then, oh, when I changed something, so hopefully the difference here is actually, we have loosely coupled services, we have APIs, so can we actually do multi-vendor, multi-cloud that doesn't stress out my team, and have, every time I want to make a change, or they make a change, it moves. The new cloud world should be, things change, you know, it changes upstream, and downstream, I get to use them. So, once again, we talk about the shiny nirvana of, oh, you know, it's serverless, and the old trinity of computer storage. I don't even need to worry about that, 'cause it'll just work, but wait, if something goes wrong, I've been talking to a bunch of vendors here, that actually, how do I get observability, and manageability, to be able to drill down, because things could still go wrong. >> Well, you heard Bloomberg, we had an end user come on, it's a very interesting point, and Dan Khan, from the executive director, well, Bloomberg's kind of a different case, but look at what Bloomberg does. The guy said to us, "I actually don't want to buy "these products and services. "I just want to pay them money "to be available to support me "when I need support." 'Cause Bloomberg has fully integrated all their support internally. I think that's a trend that we're going to see in the enterprise, where CIOs start building teams, real software chops. It might not be as big as Bloomberg, but the notion of, we're going to run our own stuff. We'll use management services where appropriate, but we're going to have a core software build strategy, and I can't wait. An SLA of four hour response time. I need like, minutes. >> And that's how, I think, where we don't have the answers yet. There are still a lot of questions that enterprises are trying to work out about how do I actually do that. So you mentioned Bloomberg, and I interviewed them a few months ago, wrote something in Forbes about them. They are a special case in that they have chosen that we're going to invest in this technology so that we have people on staff, in our company, who understand Kubernetes. Now, that's not a choice that every enterprise is going to make, but they decided that actually, this technology, this software is so important to our business, to where we get all the value for our business that we need to invest in that technology. And I think a lot of enterprises are realizing that, actually, outsourcing everything to one vendor, and then giving all of your innovation engine to someone else, and they're realizing that was a mistake. Now, they're trying to figure out, okay, what do we bring in house, what do we do ourselves, what do we get vendors to do, which technologies do we use for what particular value creation, and that complexity, that decision making process, that's what we haven't quite worked out yet, and that's where I think there's a lot of value in the ecosystem, with service providers who can provide advice on here is how you should do it, based on what you need to do. >> That's a great point. Stu, I want you to comment on that. Let's refine this for a second, 'cause the people who actually spend the money, or the people re-imagining IT infrastructure, IT applications. The CIO, I've interviewed the VP of Advanced Technology at Proctor and Gamble, and he told me, when he came in, he came from Coca Cola, he's been an old IT guy, he says, look, we outsourced everything to the point where we're anemic. We got a couple of storage guys, they're pushing buttons, they're jumping on, calling the vendors, they outsource everything. He says they had no ability to create a competitive advantage for the business, and what they moved quickly to was to bring talent in to be builders, to be in house. So now you have that trend happening in the modern CIO, CXO kind of roles. Now you have to say, okay, I got teams here. How do I get the investments deployed, how do I go to this ecosystem here with all these tools, all these capabilities, how do I invest, how do I build out. >> Look, I think Kelsey Hightower had a great point when we interviewed him this week. It is a huge opportunity for managed services, because like we talked about, the Amazon, or even the ecosystem, how do I keep up with all of this, and the answer is, you don't. You need to be able to have people, whether it's system integrators, or partners that are going to help that. You know, look, Amazon gets criticized for not being deeper in open source. Well, they use a lot of open source and they deliver those services, and they make it easy. Frictionless is something we talked about for many years as being the thing. The enterprise wants to be able to spend money and just go do it, because they don't have a team to pitch these. Even somebody like Bloomberg, or some of these really big companies I love, talking, you've got Apple, and Nordstrom, and some really interesting, oh, by the way, and they're all hiring. Whether or not they're actually using Kubernetes, they cannot confirm or deny, but you know, we know how that goes. >> Hold on, first, let's unpack the end user piece here, okay? Amazon is pushing 5,000 reference-able customers. Okay, it's not about the Amazon question. End users here, how many reference-able customers are here? What are they actually, Uber's here, they're hiring. They might have some Kubernetes stuff in the background. Sure, they probably do. But actually, what does the end user adoption really look like? I mean... >> It's still early, but again, a difference between this show and Amazon re:Invent. How many end customers have a booth at re:Invent? Compared to here, where we have people, end customers who are here mostly to try to hire talent. They have booths. >> Kudos to the CNCF. They've got 80 end users participating. There are a lot of users here. This is not the vendor fest that we see at some shows when they get big. I hear they're not seeking the vendors. The vendors that I talked to were happy because they are the users here, and they're excited. Before we go, John, there's a couple kinks in the armors and things we need to worry about. The two, if I look at service meshes, and I look at serverless as a huge threat. One of the things I wanted to look at coming in was I'd heard a lot of talk about Knative, and I think Knative is great, but it is not, you know, Lambda is the defacto standard, just like S3 was before. Lambda is this, and Knative has absolutely nothing to do with Lambda and does not connect with it. It is the difference between serverless and functions, and so, all the AWS functions and all the Azure functions have nothing to do with Knative. For the people that looked at OpenWhisk and all these other options, Knative seems a good way to pull, they've done a re-spin of what's happening there, and it's moving things down the line. Once again, as Kelsey said, if we look at serverless as a spectrum, which many of the hardcore serverless people will debate and argue, and be like, that's not real, serverless, well, just like we said, there is only one real cloud, and it was Amazon. We know that's not the case. It will be a spectrum, we want to meet customers where they are. So, Knative, good news, but the elephant in the room is that AWS and Azure are where all of the serverless really happens, and therefore, there is a big air gap between them. Justin, service mesh is something I know you've been looking at. Give it to us the good, bad, and the ugly. >> Service mesh is really, really early. So, we're at that part where there's a diversity of innovation going on. There's about 12, or at least 12 different companies here at the show, who are all doing something with service mesh. They're all trying to sell you a different solution. This is what happens with technology. A new technology gets created, and we have this flurry of all these startups, who are all trying different things. And this is the destructive force of capitalism. Not all of them are going to succeed, but we have to have them all out there in the market, because at the moment, it's too early to figure out, okay, well, it's definitely going to be that one. If we knew that one, then I'd be putting all of my money behind that one company today. >> Last year, Justin, all the talk was about SDO. I've heard a lot of talk about SDO, but it hasn't all been good. >> No, that's the thing. So we've had a year now, and last year was definitely, hey, SDO is like, the service mesh. Like, not so much. Envoy seems to be the common ground that people are actively using. That's what most people are building on top of. So it looks like Envoy's going to be that underlayer of everything else. But in terms of how you actually use service mesh, it's still very early, and people are trying to figure out how to do I use this quite complex technology in practice? And as people use it more, as we get more adoption, then we'll start to see that one or two of the methods and the approaches will win out over all of the others, and that's where we can expect to see, well, I have an anointed winner. That will then win out, because it's useful, because it's functional, because end users want to do it that way. >> And Envoy, by the way, had traction. They had a sold out EnvoyCon. On the first day, 350 people, Lyft is driving that, and they're just heads down, solving problems. I think that seems to be the formula for some of the successful products, where you take away all the window dressing and the hype. It comes down to who's solving what problems. >> And that's the thing with open source. You can't just throw a whole bunch of marketing dollars at it to make it succeed. If end users don't like the code, and they don't use it, then it won't work. >> John, I want you to give us the word on the open source business model. We watched in the last year, Red Hat bought CoreOS for 250 million, then they were acquired by IBM for 34 billion, pending final, and all that stuff and everything, and then, reading through the VMware, SCC filing $550 million for Heptio. You know, big, big dollars, so, is open source just getting a lot of customers, and they get acquired by the big guys? What's the take? >> I think it's interesting. First of all, Red Hat might not like what I'm about to say, but I'll just say it. I think there was a steal with CoreOS. If you look at what Heptio got for valuation, CoreOS was an absolute steal. The team was phenomenal, they were doing some amazing work. At that time of the acquisition, the debate of how to make money dominated versus just getting behind the technology, and I think CoreOS was a fantastic team, and they had the right tracking. You can see what's happening now with now part of the Red Hat. So, Red Hat got a massive lift on that, so I think, kudos to Red Hat for taking that up the table at that time. Great acquisition, I think that helped them propel, and now show that to IBM that there's real value there. Now, I think open source as a business model is interesting because it's changing, right? You now have a new generation of builders and developers coming in. Open source has to evolve, and I think the CNCF I think is a cutting edge experiment or Petri dish of how to stay true to open source principles, and still nurture and enable a downstream impact for the commercialization. I think it's an opportunity, but it's also one of their biggest challenges, because if this is COMDEX, COMDEX is an open source. It's hawking wares, right? So it's a different business model. So, this is going to be a very interesting test in the industry to see how the current open source momentum, which is looking really strong right now, how that can interplay with commercialization, because certainly, the money's there, the value's there, and if we can get these value spots identified, the white spaces for startups, and let the big guys also play as well, it's going to be a very interesting landscape, it's certainly dynamic. I don't have the answers, but my gut's telling me that a whole new level of sets of services and platforms are going to be composed around these services, and I think it's all going to be driven by open source, that's clear. How it shapes out, valuations and the talent buys, the momentum, market buy, we'll be watching, I don't know. >> Yeah, it's exciting times. We're here at the beginnings of what I hope is going to be this massive new ecosystem, and we get to watch it grow, we get to watch it change. It's a great place to be. >> All I can say, Stu, is I wish I was 25 years old again, right now, because for young entrepreneurs, and young tech folks, this is probably one of the most exciting times, because you have real computer science, and dormant computer science, now re-energized with cloud computing scale. It's just like-- >> John, they don't appreciate what they had, you know. They don't know what it was like to have a computer that wasn't actually connected to things, let alone what we had. >> I used to build my own graphics libraries, I used to walk to school in bare feet in the snow. It's so hard. It's so easy now. >> Creating ones and zeroes-- >> Where's my token ring? >> Creating ones and zeroes by banging rocks together. >> It's so easy now. You guys got it made. You have no idea. Great stuff, Stu, this is great analysis, and I think, again, KubeCon is the beginning, with Cloud Native, this is just a small signal, I think. I think there's going to be a COMDEX moment soon, unless this thing just blows up, which I don't think is going to happen. >> I mean, look, last thing, John, I want to big thank to the Linux Foundation, CNCF, for working with us. We've been neighbors in the early days, great partnership, this community. They've got a great media section. All of friends over here, that are creating a lot of con, working really hard. The amount of work that goes through, and as we had the people from CNCF talking. They've got a core team, but it's people that volunteer, and we were a community too, and all our sponsors, John. >> Yeah, thanks to the community, and again, one more final point is that, this market, Justin, as you know, we all cover it, is in a learning mode. There's a lot of education oriented stuff that people are interested in. You've got Alex Williams over at New Stack, DevOps.com, TFiR over there, everyone's up in media out there. There is a thirst for content, there's a thirst for community learning. The sessions are packed. I mean, the hallways are interesting. You see people huddling, and I overhear the conversations. They're not talking about what party to go to, they're talking about how to implement a Kubernetes cluster, so this, really people working on and off the court here, so to speak. So, it's been great coverage. So, day three, breaking it down. I'm John Furrier, Justin Warren, Stu Miniman, back with more coverage, day three, after the short break. (techno music)

>>Ed, welcome to the Cube. All right, Thanks guys. Good >>To see you. Thanks. Good to see you as well, >>John. Okay. Ed runs Biz dev for Cloudera, Industry veteran, worked at VMware. Ed, gotten to know you the past year. You guys have been doing great. What a difference one year makes, right? I mean, absolutely. Tell us, just let's start it off with what's happened in a year. I mean, you know, here at Hadoop World Cloudera, the ecosystem. Just give us your view of your perspective of what a difference one year makes. >>I think more than double is probably the, the fastest answer I could give you, which is, I mean, even looking around at the conference, it's, it itself is literally double from what it was last year. But in terms of the number of partners that have entered the market and really decided to work with, with Cloudera, but also in general, just the, the, the, the scope and size of the ecosystem itself, investors from every angle. You've got companies really well-branded marquee companies like Oracle coming into the mix and saying, Hey, Hadoop is the, is the real deal and we need to invest here. Marquee companies like IBM and EMC also doing the same. And of course, you know, as a result, you know, lots and lots of customer interest in the technology. And Cloudera's been fortunate to have been in the market early and really made the right investments with the right team. And so we're able to serve a lot of those customer needs. So it's been really, it's been a fantastic year for the company. >>So we had a great day yesterday with Cloudera. We had Kirk on, we had AER on twice, who by the way went viral with his modern warfare review, but we had Jeff Harmar Baer on, so we had pretty much the brain trust, Mike and Michaelson. Yep. The brain trust, the Cloudera. So we talked about the risk factors for Cloudera. Obviously you guys are number one, you've been kind of had untouchable lead and then all of a sudden boom competition. So Mike talked about that. So the strategy and the product side, they addressed, you're on the, the biz dev side, so you know, when you were number one, everyone wants to stand next to you and your phone rings off the hook from tier one partners all the way down to anyone's just getting in the business. Who wants a big data strategy on the execution. Now, what are you guys doing right now to, to continue your lead on the, on the sales marketing biz dev? I mean, I know you get the partner program, but what's your strategy for Phil, how to continue >>In that lead? The, the beautiful thing is honestly, our strategy hasn't changed at all. And I know that might sound counterintuitive, but we started off with a, a really crisp vision. And we want, what we wanna do is create a very attractive platform for partners. And, and, you know, one of the core, you know, sort of corporate strategy, Edix for Quadera is a recognition that the end of the day, the platform itself, Hado is an input into a solution. And Quadra is not likely to deliver the complete solution to market. Instead, it's going to be companies like Dell, for example, or it's going to be companies on the, on the ISV side like Informatica, which you're gonna deliver not only a base platform, but also the, the, the, the BI or analytics or data integration technologies on top. And as a result, what we've done is we've really focused in on creating a very attractive platform to vendors to build on. >>And one of the, I think one of the biggest misconceptions that I'm excited about that, you know, we are now having an opportunity to correct and that's a result, frankly, of the additional competitive dynamic. And I think the, the Wiki bond team pointed that out rather pointedly in their most recent articles. But is, is the sort of the lack of understanding around what CDH is and also the, some of the other investments that we're making to create a truly attractive platform for vendors to build on. And you know, I mean, I think you, you may have familiarity with exactly what CDH is, but for the sake of the audience here, what I'd like to do is say, say, first off, you know, first and foremost this is a hundred percent free in Apache license open source. But more importantly, it is everything that we build on the platform, meaning it's completely full featured. >>We put all of that out in the open. There's no turbo version of Hadoop that we've got hiding in the closet for our, our four pay customers. We're absolutely making investment. But I think, you know, when you think about it from the vendor perspective, and that's my bias. So I always think about, I treat all of the potential partners as really my customer. And when you think about it from that perspective, the things that matter most to vendors, number one, transparency. They need to understand exactly what our business model is, where we plan to make money and where we plan, don't make money. They need to know what we're really good at developing and what we're not so good at developing. And sort of where we draw the, the boundaries around that investment. I think, you know, a testament to that, for example, is tomorrow we're hosting a partner summit. >>So after this event, there are gonna be over 60 individuals, but they max two per per vendor. So we're gonna have over 35 vendors attending this event. And what they're gonna hear from is our entire management team is as deeply as we can and as open as we can. And you know, it, it's, it's, it's funny, you know, I think I saw this article in Forbes the other day about Cloudera. It was this, the title of the article was something like Spies Like Us. And it it, and it, what it highlighted was that some, some competitor of Cloudera had actually hired a, a, a competitive intelligence agency to go on and, and try to engage with, you know, and, and try to learn more about Cloudera. And so they went on to Cora, which we have a lot of active engineers on Cora. And they, you know, they went out and they asked a bunch of product related questions to our to, to someone on Cora. And our engineers immediately responded and they started being very transparent, completely open to what, what they're building and why they're building it. And the article basically summarized to say, Hey, you know what, you know, clearly some people aren't all that sophisticated in figuring out, you know, who they're talking to. And it's really important to do that. And they got the absolute wrong conclusion. Our engineers are actually encouraged and in fact rewarded for being extremely transparent in the market because we believe that it's transparency will ultimately allow us to be that platform vendor. >>And that's what attracts me. Jeff Hummer Bucker, who's active on core as well, he's recruiting there too. So you guys are out engaging the community. Yeah. So just let me just review, cuz this is cool that you're addressing this because Hortonworks and others, and I'll say the name Hortonworks has been pumping up the PR and creating a lot of noise around open and kind of Depositioning Cloudera. So you guys are completely open, a hundred percent Hadoop, open source, everything you build in, in every way, in every way. You have engineers building core, you've got tools and all the other stuff is being built in Cloudera then contributing into the community. >>Actually it's the other way around. We build it and the community@apache.org. So all of our technology is built@apache.org. It's, it's developed there. It's, it's, it's initially shared there. And then we have another team inside our company that pulls down bits from apache.org and then assembles them and integrates them. So it's really, it's a really key thing. And there's no, we do, we have no bits that we don't develop@apache.org that are part of cdh. So there, I mean there can be no mistake that everything that that is in CDH is everything we got. >>So CDH is free. >>It is free >>And every it's open source. It's open you >>Charge enterprise edition. That's the only thing that's different you guys charge >>Yeah. Which is your management console, right. >>Management >>Suite and all kinds of >>The tools. And that's not free and that's not open source. That's correct. Just to be clear. Yep. But so AER took us yesterday through, I don't know, half a dozen probably open source projects and then the one is the, the management console. And that's what you charge for, that's where you're gonna make money? >>Yeah. We, we manufacture, essentially we manufacture two products, but we sell one. So we manufacture the Quadera distribution, including Apache Duke, that's free. It's free. And then we all in open source and built it Apache and, and really heavily tested and well documented and, and, and well integrated. And then we also manufacture quadera Enterprise, which includes support and indemnities and warranties for that full featured CDH product and also includes the Quadra management suite. And >>That's a subscription. >>And that's a subscription. And so customers can, can run cdh, they can then buy and license Cloudera Enterprise and then someday if they decide they don't need Cloud Air Enterprise for whatever reason, if they're, if their team are scripting wizards and they've decided that they, you know, they don't need the extra opportunity for being able to track all of the things that Cloudier Enterprise allows 'em to, they can step off of cloud enterprise and continue to use full feature to do as they see >>Fit. So take an example of one of your partners that you announced this week. NetApp NetApp's gonna package your cdh CDH and the subscription Correct. To their, their customers. And then they're gonna let their channel either, you know, they'll pre bule it or do a reference architecture, you'll get paid for that subscription that's bundled. That's correct. Will make money off of its filers. Yes. And the customer gets a package solution. >>Exactly. Right. And in fact, that's another important thing that you know, is probably worth discussing, which is our go to market model. I don't know if you guys had a chance to talk with anyone yesterday on that, but I'm responsible for our channel strategy and one of the key things that we've agreed to as a, as a company is that we really are gonna go to market through channel partners. Yeah. >>We covered sgi, that was a great announcement. >>Yep, a >>Hundred percent >>As, as close as we can get. Okay. I mean that is our, he's >>Still doing the direct deals. You still have that belly to belly sales force because it's still early, right? So there's a mix of direct and indirects, not a pure >>Indirect, but as, and that's only, that's only as we're able to, until we're able to ramp up our partners fully, in which case we really want our, the current team that is working belly to belly to really support our partners. >>So all so VMware like, but I I wanted to ask >>You VMware, like NetApp, like very similar. >>Yes. Very, very NetApp. Like NetApp probably 75%, you know. Exactly. What are the similarities and differences with VMware in, in the ecosystem? You know it well, >>I do know it well. Yeah. I spent several years working at VMware and you know, I think, I mean the first and most obvious difference is that when you think, when I think about platform software in general, you know, there are a few different flavors of platform. One of the things that makes Hadoop very unique, very unique relative to other platforms is that it, not only is it Apache license, but it really is, it's dependent upon other external innovators to, to create the entire full value of the ecosystem. So, or, or you know, of the solution, right? So unlike for example, so like, let's take a platform like everyone's familiar with like Apple iTunes, right? What happens is Apple creates the platform and they put it kind of in the middle on top of and behind the scenes is the innovator, the app builder, he builds it, he publishes it on Apple, and then Apple controls all access to the >>Customer. Yep. >>That's not adu, right? Right. Let's take VMware or Red Hat for example. So in that case, they publish a platform they own and control the, the absolute structure and boundaries of what that platform is. And then on top of that application vendors build and then they deliver to the, the customer. But you know, at the end of the day, the, you know, the relationship really is, you know, from that external innovator straight down, and there's no, there's, you know, there's no way for them to really modify the platform. And you take kadu, which is a hundred percent Apache licensed to open source, and you really, you really open up the opportunity for vendors to take ADU as an input into their system and then deliver it straight to their customers or for customers themselves to say, I want straight up vanilla Hadoop, I'm gonna go this way and I'm gonna add on my own be app of applications. So you're, we're seeing all sorts of variants right now in the market. We're seeing software as a service being delivered that's based on Hadoop. There was a great announcement a few weeks ago from a company named Tidemark, previously known as Per Ferry, and they're taking all of cdh. They're, but they're, the customer doesn't know that they're, and what they're doing is they're delivering software as a, as a service based on adu. >>Yeah. So I mean, you know, we are psyched that you're clearing this up because obviously we're seeing, we saw all that stuff, but I really think that indirect strategy as a home run, I'm said it when we talked about the SGI thing, and it's accelerates you guys, you enable, but you know, channels is an interesting business. I mean the, you have to have pure transparency as you mentioned, but they need comp, people need confidence and, and they don't, they worry about competition. So channel conflict is always the big issue, right? Right. Is Cloudera gonna compete with us? So talk that, talk us through that, that strategy. So obviously the market's growing, new solutions are coming around the corner, These guys wanna make money. I mean channel, it's all about, you know, what have you done for me today? >>Right. That, that is exactly right. And you know what, that's, that's why we decided on the channel strategy specifically around our product is because we recognize that each and every single potential channel partner of ours can actually innovate themselves on top of and create differentiation. And we're not an obstacle to that process. So we provide our platform as an input and we're capable of managing that platform, but ultimately creating differentiation is all in the hands of our partners and we're there to help, but it gives them wide latitudes. So take for example, the differences between Dell and NetApp solution, they are very different reference architectures leveraging the exact same platform. >>Yeah. And they have to make money. I mean, the money making side of it is, you know, people have kind of, don't really talk about that, but, you know, channel partners loyalty is all about who can help them make cash. Right. Right. Exactly. What are you hearing there in terms of the ecosystem? Has the channels Bess and the partnerships or the more as size, what's the profile of your, of your partners? I mean, can you give us the breakdown of Sure. We have what you look like from Dell. We know Dell and NetApp, but they're gear guys. But, >>So a big part of our strategy is to work with IHVs and then Ihv resellers. So you're talking about companies like Dell, like sgi, like NetApp, for example, independent hardware manufacturers. Another part of our strategy though, and a key, a key requirement from our customers is to work with a whole variety of ISVs, particularly in the data management space. So you've got really marquee companies in the database space like IBM's Netezza or Terradata. You've got in companies like Informatica and Talent, you've got companies on the BI side, like Micro Strategy and Tableau. These kinds of technologies are currently in play at our customers that have made substantial investments. And ultimately they want to be able to continue to leverage them with the data platform, whichever data platform that they end up choosing. So we invest considerably there. A big part of that has been our Qera Connect partner program. >>It's an opportunity for us to help the customer to understand which technologies work and work well with, with our platform. It's also an opportunity for us to engage directly and assist the vendor. So one of the things that we created as part of that program is first off, immediate and absolute discounted access to any part of our training. Second, lots of free information, access to our world class knowledge base, access to our support team, direct access to our support team. The, the vendors also get access to a developer portal that would created specifically for them. So if, if you think about it this way, Hadoop gets built@apache.org, but solutions don't get built@apache.org. Right? So what we're really trying to help our vendors do is be able to develop their solutions by having real clear visibility to the API level points of Hadoop. They're not necessarily interested in, in trying to figure out how, how MR two works or, or contributing code to that. >>But they absolutely are interested in figuring out how to run and execute their software on top of a do. So when I think about the things that matter to create an attractive platform, and at the end of the day, that's what we're really trying to do, first and foremost is transparency, right? Second really ultimately is really clear visibility to the APIs and the documentation of that platform so that there's no ambiguity that the, the vendor, this is the user in this case, it's building a solution, can absolutely absorb all of that content really cleanly. And then ultimately, you know, I think it's customers, right? Users of the technology. And I think our download numbers are, they're, they're, there's something we're proud of. >>We, we are, we're hearing good feedback. I mean, the feedback we hear from folks is, yeah, I love how they take away the complexity of handling versions and whatnot. So, you know, I think totally is a great way, The CDH is a great bundle. You know, the questions that we have for you is what are you hearing about the other products, the ones you're actually selling? Does that create the lock in? So that's something that we asked Elmer directly, you know, is that the, is that the lock in and what happens when the deployments get so big? You know, >>I mean, the way, I >>Don't really see an issue there, but that's what people are afraid of. I mean, that's kind of the, it's more of fear. I mean, some people can use that fear and, and >>Play against. I think, I think what we've seen in other markets is that management tools are ultimately interchangeable. And the only way that we're gonna retain a customer is by out innovating the competition on the management side, the lock in, the lock in component, as you will, is not really part of our business model. It's very difficult to achieve with an Apache licensed platform and a management suite that sits on outside of that, that licensed artifact. So ultimately, if we don't owe innovate, we're gonna lose. So we're working on the innovation and that's, >>How's the hiring go? Oh, go ahead. >>I, I had a, I wanted to come back to that. You mentioned download numbers. Can you share the numbers >>With the others? I can't, I can't share them publicly, but what I can say is that they've been on an incredible trajectory. Okay. That, and what we've seen is month to month growth rates, every single month we continue to see really significant growth rates. >>And then I, I had a follow up question on, you talked about the, the partner program. How do you manage all those partners? How do you prioritize them? I mean, the, the hardware vendors, it's pretty easy. There's a few big whales, but the, the ISVs, they're, I mean, your phone, like John said, must be ringing off the hook. How do you juggle that and, and can you do it better than VMware, for example? >>Well, we do it, we handle the, the influx of partner interest in two ways. One, we've been relatively structured with the Quadra Connect partner program, and we make real investments there. So we have dedicated folks that are there to help. We have our engineering team that is actually feeding inputs, and we're, we're leveraging some of the same resources that we provide to our customers and feeding those directly to our partners as well. So that's one way that we handle it. But the other way, frankly, is, I mean, customers help here having access to and, and a real customer population, they help you set priorities pretty quickly. And so we're able to understand what we track in inside of our systems, which, which technologies our customers use. So we know, for example, what percentage of our customer base has has SaaS installed, and we'd like to use that with a, do we know which percentage of our customer base is currently running on Red Hat and which is not. So having core visibility, that helps us to prioritize. >>How about incentives? I mean, obviously channel businesses as, like I said, very fickle people, you know, you know the channel business, I spent, you know, almost a decade in, in HP's channel organization and you know, you have to provide soft dollars. There's a lot of kind of blocking and tackling. You guys are clearly building out that tier one with the SGIs of the world and other vendors, and then get the partner connect program for kinda everyone else who's gonna grow up into a tier one. Yeah. Training, soft dollars incentives. You guys have that going yet, or is the >>Roadmap? We do. And in fact, you know, in addition to the sort of more wide publicized relationships you see with companies like Dell and Cloudera, we're actually building a very successful network of independent ours. And the VAs in general. What we do is we prioritize and select ours based on the top level relationships that we have, because that really helps them to hone in. They've got validation from, for, for example, someone that sells resells. SGI is an organization that now is heard really loud and clear from sgi the, the specific platform configurations that they're gonna represent to their customers, and they ultimately wanna represent them directly. And how we make investments is we're, I mean, the investments we're making ultimately in our sales org, I'm gonna lose the word direct from that conversation because our sales org is being built to help our partners succeed. And I think that's where you're, >>The end game is to go completely indirect and have all your support go into managing that channel. What, what's the mix of revenue generation from your partners? Obviously as a, you know, with sgi they have pre-built channels that you're funneling in, you got NetApp and they're wrapping their products and services around it. How much is services and how much is a solution specifically? Do you have any visibility or a feel for that at this >>Point? I mean, services relative to, You mean for Cloudera particularly, or for our >>Partner? No, for the, for the part. I mean, if I'm a partner, I'm like, Hey, okay, I'm gonna use cdh. I'm on bundles. I don't mind paying you a wholesale if I'm gonna be able to throw off more cash on, you know, deployment and cloud and services, et cetera. And or if I'm a product manufacturer, a product, a solution I fund you in. I need to have that step >>Up a absolutely great question. So depending upon the partner we're dealing with, they like to either monetize or generate their revenue in different ways. So for example, NetApp, NetApp is a company that has very limited services, and their, their focus is a business is really on delivering hardware and software configured together. And they, they rely heavily on a services channel to fulfill, you take in, in contrast to a company like, for example, Dell, which has a very successful services business and really is excited about having service offerings around Hadoop. So it depends upon the company. But when we talk about our VAR channel in particular, one of the things that's a, in an internal acronym, but I'll share it publicly here. We, we call our, our supervisors and what makes them super and why, why we've selected the, the, the organizations that we are selecting right now to be our bar is that they not only can fulfill orders for hardware and software, particularly data management or infrastructure software, but they also have a services team on hand because we recognize that there is a services opportunity with every Hadoop deployment. And we want our partners to have that. So as an organization, we're structuring our, our services staff to facilitate and enable our partners not to be sold >>Directly. Okay. So that's the follow up that I had tomorrow when the partners ask, Okay, what do you want to be when you're really growing up? Is it services, is it software? >>Is it Carter is a software company, Crewing through, >>Oh, er we kind of got ett, well, he didn't say it, but we said it's a operating system. Yeah. >>So given that, so given that, I mean, you can make money on services, right? People need services. Okay, great. >>And partners will make that money for >>Us. And, and you know, early on you, you had to do some of that and you're, you've been very clear about where it's going. It's hard to make money in software when you're given all the software away for free. Well, >>We're not giving all >>The software. I know you've got that piece now, but, but here's my question. As ADU goes into the enterprise, which is clearly doing, is that that whole bundling, like what you're doing with NetApp is that really ultimately how you're gonna start to, to monetize and, and successfully monetize your software, >>Is by pushing it through >>Yeah. Packaging and that bundling that solution, in other words, our enterprise customer is gonna be more receptive to that solution package than say the, the fridge that has been using Hadoop for the last >>Two or three years. I think there's no question about it. If you, if you look at what Quadra Enterprise does, I don't know if, if you've had a chance to attend any of the sessions, maybe where Quadra Enterprise is, is currently being demonstrated. >>We just had Alex Williams as about on the air. Did a review, >>Okays >>Been going good and impressed with it? >>Yeah, there's no question about it. And I, I don't, and Alex probably hasn't seen the new version that, you know, our team is working on and it's, you know, quietly working on in the background. Incredible, incredible developments in, And that's really a function of when you have direct access to so many customers and you're getting so much input and feedback and they're the kinds of access to the kinds of customers we ultimately wanna serve. So real enterprises, what you get is really fast innovation from a really talented team that knows to do well. I mean, we are years ahead on the management side. Absolutely. Years ahead. And you know, I, so I was a guy who worked at VMware for several years, and I can tell you that while the hypervisor itself was, was a core component to VMware success, the monetization strategy was very squarely around vCenter. Yeah. Yes. Out. And we're not ignorant to that. Yeah. >>You can learn a lot from your VMware experience cause absolutely. The, the market changed significantly. And, you know, >>There were free hypervisors available all of a sudden. VMware itself had a free hypervisor. We had, we had VMware server and we had also our VMware player products, right? And those were all free. And they were very good technology. They were the best available in the market for free. And they were better, in my opinion, they were better than anything else. Open or not. No, our time >>Too, since still >>Are, they were, they, they were, they were superior products in every way. But yet how VMware was successful was recognizing that in the interest of running a production environment with an sola, you need management software. And they've also built the best management software. And there's no question that we understand that strategy and >>A phenomenal ecosystem. I mean, there's the >>Similarities, right? They did. And you, and the, and the ecosystem was in, in large part predicated on transparency act, very clear access to the APIs and a willingness to help partners be successful with those APIs. And ultimately drawing a very tight box about what the company wanted to do and didn't want to do. >>I mean, look, you're not, you're not gonna lose friends when you make people money. That's my philosophy, right? I agree. So when you're in that business where you can come in and enable a channel and have options on your growth strategy, which you do, I mean, you can say, Okay, bundling, I can go, you know, I can have this sold direct, or at least as long as you've got the options, you can grow with that market. So, you know, again, the, it's a money making opportunity for the partnerships, but there's >>More than that, right? Because you mentioned Apple, iTunes, Oracle's another example. And the way you make money with Apple and the way you make money with Oracle is different than the way you make money with VMware and presumably Cloudera. >>Yeah, I mean, our strategy is, if you make this base platform easier to install, more reliable, and you make it ultimately, you know, really rock solid from an integration standpoint, more people are gonna use it. So what happens when more people use it? First thing that happens is more solu, it's out there. So it's more solutions get built. When more solutions get built, then you see more clusters get developed. When more clusters are out there, they start to move into production. And then they, they need an sla when they need an sla, Cloudera and Enterprise gets purchased. But along that path, when those solutions got built, guess what else happened? More cloud units got sold, more servers got sold, more networking. Gear got sold, more services got created. You get, you get ultimately more operating systems got sold, more databases, got data into them, more BI clients got created. The ecosystem is deep and rich, and a lot of people stand to make money hop >>In people. The water's great. >>What about, what about support? Okay, so, you know, the other guys are saying, We're just gonna make money on support. I mean support, You guys still are doing support, right? I mean, you're selling >>Support. There's no question. Quad Enterprise contains two things, right? The management suite and support this is, this is not uncomplicated technology and having a world class support team is of value and customers do want to pay for that value. But we, we believe that support in and of itself is not enough. And that ultimately, when you wanna deliver an sla, being able to call when you have a problem is the wrong approach. You want to be proactive and understand the problem well in advance of it actually occurring. That's really important. When, for example, if you're a customer, a lot of our customers have a data pipeline that >>They, they're building out basically. I mean they're, it's, it's new and emerging. So they're building out, It's not just support. They need other tools. >>Yeah. And it building out I think is an understatement for some, where some of our customers are. I mean, when you have a thousand node cluster that you're operating Yeah, Yeah. To, that's mission critical to your business. I don't think that's building out anymore. I think that's an investment in a technology that's mission critical. And what you wanna see when you have a mission critical technology is you wanna know early and often when a problem may emerge. Not, Oh, oh my gosh, we have a problem now I need to go, you know, phone a friend, phone a friend is, is kind of a last resort. We offer that. But what we really do is, and that's the, that's the beau, That's why we don't decouple our support from our management suite. It's not about phone a friend. It's about understanding the operation of your cluster the entire way through 24. >>And the other op the other thing that people don't talk about in the support is that with open source, a lot of support gets handled in the community as well. So like That's right. So in a way, you're already pre cannibalized with the community >>By us and by others. Absolutely. But you, you'll never see to that Forbes article I referenced earlier. You will never, you will not see our, our engineers are not trained to withhold information and under any circumstances to anyone free or paying. Yeah. This is about getting, You >>Don't wanna hold back your business. I mean, you have nothing to hide. It's open rights. >>Open source. It's open. And we're here to help. We're here to help. Whether you're paying us or not, >>This is value to that anticipatory >>Remediation. Yeah. That's what you're packaging and clearing up the air. Great. Great cube guest, you're awesome on the cube. Gonna have you more on because great to get the info out there. Really impressed with the channel strategy. Love the love the growth strategy, the cloud air. You guys are really impressive. I'm really, really impressed to see that you guys got everything pumping on all cylinders, Kirk, and you are cranking out on the business execution. We're in the team playing this chest mask open. Perfect. So great. Congratulations. Great. Thanks. You guys just in the financing. >>Oh, thank you as >>Well. Hey, Ed from Cloudera, clearing it up here inside the cube. We're gonna take a quick break and we'll be right back with more video. >>Thanks guys. All right.