>> Live from San Francisco. It's the cube covering IBM thing twenty nineteen brought to you by IBM. >> Welcome back to Mosconi North here in San Francisco. I'm student like co host David Dante. You're watching four days of live wall to wall coverage here at IBM. Think twenty nineteen. Happy to welcome back to the program first time in her new role. And she's also moved back to David, my home area of the Boston Massachusetts F area. Stephanie Sherice, who's now the vice president and general manager of Red Hat Enterprise. Lennox Business Unit. That red hat Stephanie. Thanks so much for joining. >> What's my pleasures to It's great to be back with you both. >> All right, Stephanie, be back. You know, I happen to notice quite a few IBM. Er's obviously know you. We've had you on our program and many of the IBM shows in the past. So tell us, what's it like being back at one of the Big Blue shows? >> No, it's great. It's great. As you know, I somewhat grew up at IBM might. I had seventeen years. I know so many people in the thing you miss most is in the network. So it's been it's a great opportunity to be here. Catch up with old friends, Talked to new colleagues. Great. What brought >> you to Red hat? I mean, like, you say, long career at IBM, and it was obviously prior to the acquisition, so you didn't know that was coming? What was the lore? >> So I'd say a couple of things clearly, as you know, I became a student of the Lenox Space while I was in while I was at I B M in the Power Systems unit. So fascinated for what Lennox has taught the industry about. I always say Lennox Lennox taught the world how development is meant to be done through open source in the innovation of a community. So that was a thrilling aspect for me to join. Also, I think I truly believe in the open hybrid, multi cloud strategy that Red Hat has had actually for years. Now. I think open source is all about choice and flexibility. It's what Lennox provides and moving forward their strategy around having a management portfolio, having a Cooper Netease platform all built upon being able to consume Lennox wherever and however you want it, I believe in the strategy. So it's been really exciting, and having the rail aspect is fantastic. >> So, Stephanie, you're right. You own that. Really? The core of red hats business. You know, Red Hat Enterprise Lennox, You know, we've been covering this space heavily for years, and everything that redheads doing comes back to, you know, that Lennox Colonel and there Ah, lot of people don't really understand that. The business model say it's like, Oh, well, you know, red hat cells free and, oh, that's a service model and things like that bring us inside your business and what's exciting and dynamic and happening in that space. >> It's It's such an incredible time. I couldn't ask for a better job, but I love the linen space for a couple of things. As you look at all the things that are changing in the industry today, I always say to customers, you may not know the applications. You'll run next year in three years, in five years, you may not know where you'll want to run them. What you do know it's they'll run on Lennox, right? It's the fastest growing operating system in the industry today. It's number one choice of developers. So, as you look to see, what can you do to prepare for the innovation Its pick your Lennox and Red hat has done an incredible job of making a consumable. If you look at the hundreds of thousands of packages out there, an open source, you take that you pull it into. Really, I feel what well delivers bread had. Enterprise Lennox delivers is an ecosystem. It's a trusted ecosystem. We test the team does an incredible job of testing a breadth of hardware, everything from, you know, X eighty six systems to power systems. Dizzy, too, you know, in video G, D G X. So way test all of that and then all the way up to the applications. We pull that ecosystem with us now, our goal is to be able to provide that anywhere. So you take that capability whether you do it. Bare metal, virtual machine, public cloud, private cloud. Now you move into containers. You know, everything we do in rail translates overto open shift. Whether you consume it as a private cloud and open stack or containerized in open shift, all of that ecosystem follows through. So it really is. When I look at is the bedrock of the of the entire portfolio for red hat, and we really are at Enterprise software company Today we pull in management with things like answerable and satellite. You pull all that together. Automation of the storage portfolio. It's just such an exciting time. It's a real transition from going from a no s company and building >> upon that. >> I mean truly an enterprise software company from multiple clouds. >> So I was talking about more about that because open shift gets all the buzz. Ostensibly, it was a key linchpin of the acquisition that I being made. Well, What's the connection between between rail and the rest of red hats? Portfolio. Maybe you could connect those dogs. >> That would be so, as you look at, and I'm an infrastructure person for a long time, as you know, and coming from the infrastructure up space, most was purchased from an infrastructure of you for many years. Now. It's all about how you consume the applications and the infrastructure comes in and feeds it from an application. Space containers are amazing, right? They bring that incredible flexibility started. Stop it, move it lifted, shifted Everything. Thing is, from an application perspective, it's simple. From a Lennox perspective, it's actually much more complicated, you know, in the days of bare metal or even V EMS. Quite clean cut between your systems, your operating system. You're hyper visor in your application. Once you move into containerized worlds, you've split up your Lennox. You have user space in your container. You have Cooper netease making ten times the number of calls to the colonel space that the hyper visor ever did. Much more complicated. So as you move into that space of Kou Burnett ease and containers and orchestration, you know, you really want someone who knows Lennox because the clinic space is more complicated, bringing simplicity from a container and application >> performance management, security changes >> Absolutely automation. So really is as we look at the portfolio, we have a You know, we believe strongly in the customer experience, we deploy with rail that trusted ecosystem. In order to be able to take that into a container world, we need to be able to get access into the user space into the coup. Burnett ease and into the colonel because they're so intimately twine entwined. So as we transition that open shift is the way we delivered, we build upon the same rail. Colonel, we used the user space. >> So, Stephanie, like you, I'm an infrastructure person. And, you know, my background is in, you know, the OS. And, you know, down that environment, there's been a wave of, you know, just enough operating system. How do we slice these up? I look of Cora West, which read, Had acquired was originally a We're going to slim down, you know, the colonel and make things easily. Where's the innovation still happening? Lenox And, well, you know why is still Lin It's going to be relevant going forward. You talked about, you know, containers, things like server list all threatened to say, Oh, well, you know, my application development person shouldn't have to think about it. But why is it still important? >> Yeah. So you know whether things I love about my role is with the position that red hat has in the industry with rail. And, you know, we have Ah, we have a approximately fifty thousand set of that fifty thousand customers who use rail and trust us. So as we look at how we drive innovation, I love the ability to kind of help redefine what an operating system is. And you know, certainly we bring added value did in real seven and now we have the relic beta out. So we're continuously adding things. We added in a few things about consumption base. We added app streams which separates out the ability to update your user space at a different rate in pace than your core. A court sort of based level which allows you to do faster updates in your user space. Continue on your core. Run multiple versions of your user space. It's a fantastic way to pull an innovation faster. We've also done a number of things with our capabilities around taking that first step into container ization, including tools like Build a pod man scope EOE so that within the operating system itself you conduced those based kind of capabilities for container ization. That first step. And then when you need orchestration, you can move over to open ship. So there's a ton of innovation left in the operating system. Security is core to everything we do. S o the innovation around security remains a constant were in the typical open source fashion. We've released the Beta here in November. We're gathering great feedback. We have about one hundred and forty high touch beta customers who were working hand in hand with to get feedback. And we're looking forward to bringing rally to market >> What? One of the big pieces of feedback you're getting a lot of people excited about in terms of Really. >> Certainly everyone looks to us for their security. So that's been that's been a great place for us. We had work to do on making it easier to consume as we continue to drive things with developers. And we have a new portal that's allowing sort of a single user space view those kinds of consumption. Things are very important today because, as you said, you want skills to be easily transferrable. Easily updated s o A lot of the consumption based things we've been >> working on, >> um, as well as thie tooling? >> Yeah. You talk about that skill set that's one of the biggest challenges in a multi cloud world is if I'm going to live in all these iron mint, what's the same and what's different communities is only a small piece. But Lennox is, you know something that's transferrable. What are you seeing? What are you hearing from customers in that regard? >> Yeah, I think, and that's one thing. We're working hard to try and make sure that you know, I think like when you when you buy a house, right, you can buy a house. You could buy an apartment building in Pine Office building. What doesn't change is the land underneath. You need that land to be stable, and you know you can build whatever you want on it. And that's how we view our lennox consuming anywhere you want. It's always secure. It's always stable in multiple public clouds. I think really it's the flexibility when I look at that pull open hybrid cloud space, customers aren't looking to buy a product. They're looking to establish a relationship with someone who's going to provide them what they need to do today on their mission critical applications but have the flexibility going forward to take them where they want to go. They may pick Ascent one public cloud today. They want to move it in two years and three years to a different public cloud. It's establishing that relationship to be able to consume that Lennox, preserve those skills but have the flexibility. And tomorrow >> Red has made a number of storage acquisitions recently. Obviously, the tight relationship between the operating system and the I O how do you look at that space? The opportunity, You know, the TAM talk a little bit about the storage moments >> we have so clearly we have our storage division. We've been working very closely with them to build up capabilities. Largely, you'll see it with open shift. The container ization and storage management within containers is tricky business. So as we pulled together the collaboration between our storage unit as well as our container unit, that's providing real capabilities for that ease of consumption. How do you bring the storage with the container deploys. My team has worked very closely with the management team as you pull in the management aspect with things like automation and management satellite capabilities, answerable is an amazing tool. Amazing tool. In fact, we've pulled in things like system rolls directly into the operating system so that you can set up things like networking. You. Khun, set up storage with answerable playbooks in a much simpler way. That's allowing us to get that ease of consumption. It is about, you know, David's fully about being able for us Tow leverage the portfolio. How do we allow clients to take the journey using Lennox from everything from bare metal and VM out to container ization, Pull in multiple clouds, get the storage features and functions and get the automation and management. >> So, Stephanie, you would looked at and partnered with Red had quite a bit before you had joined the company. What surprised you coming inside the company? Is there anything but being on the inside now that you look back here like, Wow, I didn't expect that or was different than what I had seen from the outside. >> You know, I think what I think, what I love and surprise me a bit was the passion of open source. You know, you look at any company from the outside and and certainly as a student from the outside, you look at the business and how the business is doing and how it's growing in his study. All of that, Well, you don't get to see from the outside is the open source passion of the developers who I get to work with every day. I mean, they just they understand the market. They do it as a hobby on the weekends. It's it's It's just unbelievable, right? I love being I'm up in Westford is, you know, with all the developers, it's great. >> So I'm gonna ask you a lot of talk about the culture, you know, between Red Hat and IBM. You you've been in both camps. Now what do you thoughts in the culture >> s O? You know, I think when I look at the culture, I love the culture at Red Hat. As you know, I've been in many places at IBM and multiple divisions and multiple units. There's a lot of autonomy between the business units at IBM from my own experience. And there's so many people I miss working with colleagues at IBM that, you know I worked in and head with, and WeII brought amazing things to mark it. So I look forward to working with them again. You know, I always look for those groups that are passionate, and there's a lot of passionate IBM is I miss working with. So I look forward to bringing that back >> seventy one to give you the final word. We know. You know Jim Whitehurst has got a president and he's doing later today. I believe Red Hat has a has a good presence there, tells Red Hat here it think. What should be people be looking >> for? Yeah, I think so. Clearly, there's a lot of buzz and excitement about what both Red Hat and IBM Khun do together for the open hybrid cloud. I come at it now from a full Lennox perspective, and I couldn't be more excited about what Lennox is going to deliver for innovation and for customers to consume an innovation as we pull in and look, look to all these discussion that will happen with Jim and Jeannie on stage today, it's it's great. We'll be able to take what Red Hat has done and scale it now with the help of IBM, so very excited about the future. All right, >> Well, Stephanie, we really appreciate your sharing. Congratulations. You're going >> to see about thanks for the time. >> So we still have, you know, about three more days left here at IBM Thinking, of course, the Cube will be at Red Hat Summit twenty nineteen, which is back in Boston, Massachusetts, for Dave A lotta arms to minimum. Thanks for watching the cue

(energetic electronic music) >> Narrator: Live from Nassau in the Bahamas, it's theCUBE! Covering POLYCON18, brought to you by Polymath. >> Hey, welcome back everyone. This is exclusive live CUBE coverage here in the Bahamas for POLYCON18, it's a crypto event. Just talking economics. It's all the players in the space really discussing the future. I'm John Furrier with my co-host Dave Vellante. Our next guest, Bill Tai, friend, Facebook friend, industry legend, venture capitalist, kite surfer. His Twitter handle is @kitevc. Follow him. He's also involved in Bitfury and a lot of Bitcoin-related activities. Been a mentor to others. Great to have you, Bill. >> Thank you, John. I really appreciate you having me on the show. >> You tweeted in 2010, "This Bitcoin thing is interesting. "Check out this white paper." Can? >> Yeah, that was a >> Seminal moment. >> You know, back then I didn't know it would be, maybe a seminal moment. I was just lonely. (laughing) So, and the back story there, a very good friend of mine is Philip Rosedale, and he had approached me when he was starting a site called Second Life, where you basically create a digital avatar, maybe of yourself, maybe not, and you have this kind of, you know, world where you have people in an unstructured environment. And in the very early days of Second Life, when people were kind of just milling about, I said to Philip, I said, "Hey, Philip. "You know, maybe we should create a currency." I said, you know like, "If you think about it. "Think about what is Las Vegas? "Las Vegas is this pile of sand "but there is this metropolis on it. "How did that happen?" I said, "You know, if you took ten people, "sat them in a circle, and you put one poker chip "in the system, and said 'Pass it to the right,' "and everybody did that a million times a year. "Everybody would have a million dollars of income. "And then you could take chunks off "and build a casino, and build a resort, "and you'd have Las Vegas." So I said, "Let's do that." And so the Linden dollar was born. And so, soon, there was this thriving economy in Second Life that just, it was quite amazing to see. And so, when Bitcoin came out in 2009, as soon as I heard about it, I wanted to see what it was. So I went to the site and I read the paper, and it just seemed really cool. And so I started to play with it a little bit, and by 2010, I just thought it was really cool, but no one else had seen it. >> Yeah. >> So I took to Twitter to say, (laughing) "Is anyone out there "using this P to P digital currency?" You know, and >> It's funny. Our first web, You know, I started SiliconANGLE in 2009. David and I partnered in 2010. Our first website, the developer didn't want PayPal. He wanted Bitcoin. It was 22 cents, I think, at the time and we used the site for about half a year, and then we changed it and went back paid fiat. But if you think about where these come from, you brought up Second Life. Okay, online virtual world, really ahead of its time, but really set the stage for what we're seeing now. Gaming people who know virtual currencies, thrive on crypto. >> Yeah. Yes. >> So I'd like to get your perspective. Because, I know you've done a lot of investing in mobile and gaming, and what not. Where does that cross over? Because there's been a lot of virtual currencies going on in games. >> Yes. >> For a long, long time. >> Yes. >> How is that influencing and impacting this industry? >> Well, you know it's, I guess you have to ask, when you ask, you know, where does the real and where does the digital, like do they cross? And what are they? What is currency? Is the U.S. dollar real, right? And actually, let me pause for a second and reach down to my phone, because did you see a tweet today from Sheila Bair? I have to read this. Okay, so I just saw a tweet from @zerohedge earlier today. Sheila Bair, on Bitcoin, Quote, "I don't think we should ban it. "The green bills in your pocket don't have "an intrinsic value either." >> Well, look, the government wants to get rid of paper money. The people want to get rid of paper money. Why not? >> What is it really? Right? I mean so >> Backed by the U.S. military maybe, I don't know, I mean what >> What is it? >> What is it? Right. >> That's a good question. >> So I don't really see a difference. You know, they're kind of the same thing. You know, it's just something that people believe in, as the embodiment of value exchange. Whatever it is. So if it's a green piece of paper, or it's not. If it's shell, if it's a pebble. There is a fascinating book that you can read called The Ascent of Money by Niall Ferguson. He's at Stanford now at the Hoover Institute, but he got widely known after the great financial crisis unfolded. He basically wrote a book called The Ascent of Money which tracks the history of value exchange across civilized communities, for thousands of years, from pebbles to shells, to feathers, to credit, to default swaps. And coined the term "Cimerica," which is sort of the interdependence of the cash flow. And what became apparent to me when I read that, was that the world of ICOs is actually no different than anything we've experienced in civilized humanity. You know, if you think about, even in the United States, in the 1800s, at one time there were over 200 currencies circulating at the same time. If you think about the formation of the United States as colonies, a bunch of guys get off the boats. They draw lines around the forest. Here's Connecticut, here's Vermont, here's New York, here's Virginia. Let's do an ICO. They all did an ICO. If you think about it, they created their own unit of currency per their community and geography, no different than what's happening today. >> When Lincoln was shot, there was a five dollar confederate bill in his wallet, right? I mean, the confederates had their own money. >> Yeah, and also you brought a point up in the conference you were in in Dubai, which I thought was really intriguing, and provocative, but also kind of real. The Oil Dollar Association post-World War II, >> Yeah >> Essentially wasn't actually securitizing oil That was an ICO. >> It was the tokenization of oil, right. Yeah, so, you know, the modern currency system that we have today, that is commonly known as the Petrodollar, so it's actually a relatively recent phenomenon. So if you think about, of course, the quote "U.S. dollar" was around a little bit longer than 1944, but it was really at Brett Woods that the dollar had its sort of birth to become the world's standard currency. And, you know, this is maybe a little bit of an over-simplification, but think about the picture after World War II. So, you basically have every major productive economy have war, destroy themselves. The U.S. enters late, finishes it all off completely, and you basically have 100 million people milling about. A little bit like Second Life, right? So, what do you do? Got to make them productive. Create a currency, set of currencies. So for every community of interest, like every token community of interest, you say, "Well, here's a lira, here's a franc, "Here's a pound, here's a mark. "Let's take gold, "reference the dollar to gold, and reference "every one of these currencies against the dollar. "Gentlemen, start your engines." Right? >> There you go. >> So how is that different than an ICO? Okay, so that was fixed to gold for a long time until people started to game it. And when the French accumulated a lot of dollars and they realized, whoa, there's more dollars than there is gold, I'm just going to go cash all this in. So they literally came over to take all the gold, and then the president took it off the gold standard. >> Dave Vellante: That's right. >> So it had to couple with something. So what it the utility token that that became? That became referenced to petroleum because the U.S. had basically forced everybody in the Middle East to accept dollars as payment and what that did was it created the dollar as a storage of energy. So you could basically take a token of oil and, as a separate nation, you could store that through your trade, if you had sort of a surplus, and you provided yourself energy security. >> Well, most currencies, right, historically have had a pretty short shelf life. Presumably the same will be true in the Blockchain world. >> Don't know. >> The crypto world. >> Yeah, it's, if you look at the history of humans over six million years, and it's arguable it's at four or six, or whatever it is, you're right. Like there have always been multiple currencies all the time. And very rarely have they ever become sort of like super-dominating currencies. That is also a very recent phenomena. I think, driven by the industrial revolution, and a combination of the Petrodollar and scale economics and manufacturing. So, so that >> Yeah, and overwhelmingly here, at this event, people feel like security tokens, as an asset class, are going to vastly overtake utility tokens. >> You know, actually, securities are a whole, I mean regular securities, (laughing) that's an interesting subject altogether. Right, okay, so there was a time, in my lifetime, when I was a securities analyst at Alex Brown in the '80s, and in that period of time, everything traded at ten times earnings, right? So you had a barometer for, a stock should be valued at this, because is should have a PE of actual real earnings. >> Dave Vellante: Independent of its growth or anything else, right? >> Yes, and if it grew, you had a PEG ratio, so you'd have a little bit higher growth, and so a little higher PE, but what's happened to securities over time, of that ilk, okay, you had to get these companies profitable to get them public in that era, and then over time the sort of like network effects have come in, and communities of interest have formed around companies. So, and the structure of securities has moved from give me something with earnings multiply it by a number to get the value, to give me a share of something that has no voting rights and no earnings. Does that sound like a token? That's Snapchat, right? (laughing) >> So you literally have, you know, Google, Facebook, all these companies now issue shares that don't have the characteristics of equity shares. They don't vote. What are they now, right? So tokenization is sort of a natural extension of that. >> Dave Vellante: Do you see that as a >> They don't have dividends either >> You see that as a fundamental shift in the value equation, the perceived value equation? Both? Is it sustainable? >> I think it's basically, so, you know, I go back and forth on this, because is it a trend line or is it a return in the past? Right? So what is a confederate dollar that was in Abraham Lincoln's pocket? It's a belief. So what is a share of Snapchat? It's a belief. It doesn't have earnings >> John Furrier: And a token is a belief. >> Right. >> But the trend is securing something, right? So the trend we're seeing is, obviously the ruling, first of all the ruling in Switzerland was interesting. You now have a trading so an asset, so security, asset, and then trading. So they kind of went a little bit deeper, which I think is helpful. >> Yeah. >> For the community. But what are they securing? So the trend, as we see, is percentage of revenue, non dilutive and equity in the classic sense, so kind of a token. And then some sort of either buyback options, people are doing things like that. Do you see patterns like that? What are you seeing for? >> Well. >> I mean a security token makes sense. It's all credited. The paperwork's known. >> Yeah, so, you know, it feels like, so some people refer to sort of Bitcoin as digital gold, you know, and in that sense, like gold is a commodity but is the root of securities, you know, whether it's gold ETF's or something, because you perceive a limited supply, and you perceive a storage of value, so that is where I think Bitcoin sits. But then I think this whole other category of utility tokens, that may be considered security tokens by definition of law, that resembles the petrodollar. And as we were talking about earlier, you know gold used to represent or a dollar used to represent a share of gold, but it didn't anymore. So what was underpinning it? It was basically, in my opinion, the ability for that token to have utility as an instrument to purchase oil for your energy security. And so, I think that's kind of where the utility tokens are today. >> You're a leader in the industry, and you're well-known. Communities need to thrive. And factions form, curriencies form, and can be very productive, and also can be counterproductive. >> Yeah. >> So what is the unwritten rules that you guys are putting forth. Are people meeting? Are you talking? And sometimes, as people make money, which a lot of people are making a lot of money right now. I mean, for some people, it's the first time. Didn't have money, make money. You know, egos kind of come in. So all of these are normal things. But again, this is a societal community dynamic, >> Yes. >> But super important. Institutional investors are coming in. >> Right. >> Big money. This isn't Burning Man. This isn't. Burning Man's cool, but you can't model this industry after Burning Man. Maybe you could. I don't know. What is your take? >> Well, you know, it's, I think that the guiding principle really needs to be looking out for the greater good, because I think that is the issue that everyone is trying to solve for. And it's not just endemic to Bitcoin and Blockchain. It's a societal issue that's been with us since the creation of civilization. And I don't know how to solve for that, but I think you need people to stand up and just make sure that people are thinking about that all the time. You know, and I think, over my career, I think I started as kind of like a geek hacker, sitting in the back of the room, working on little microchips and building stuff, and I still do that on weekends sometimes, but, you know, for whatever reason, I've been thrust into this role now where I do have a set of communities of interest that started actually around kiteboarding, but it became sort of a larger community around entrepreneurship. And we've actually, I have a 501(c)(3) that supports ocean causes and entrepreneurial things, and it's called ACTAI Global, and we have a couple value statements. We actually, we're codifying it, so we actually have a little pin, you know the ACTAI stands for Athletes, Conservationists, Technologists, Artists and Innovators, and all of us collectively, we combine our energy to work on causes. Some of the things that we support are around ocean conservation and the preservation of ecosystems, but we also work on a lot of other entrepreneurial efforts to help each other. But the thing that I've realized with our group is we've been very productive as a community, and you see a lot of companies that are born in our community, funded in our community, like, you know, whether it's Canva or Zoom, or any number of projects that turn into community-based companies because the group of people, they think and they stand for something greater than themselves. So that's kind of one principle. It's sort of like, how do you, how do you place your values as something to support the greater community, and that's something that I think, if everybody would just think about that a little bit, and stand for something greater than themselves, the world would be a better place. And on that note, the second ethos that we operate to is that we strive to leave every person or place we touch better than before we touched it. So when you see us like kiting at a beach, you'll see us picking up garbage, too. You know? We don't go someplace without trying to improve it a little bit. And I think we help each other on the companies, too. And I think the last thing that people really should try to do, everybody in this world of technology, has a little bit of a superpower, whatever that is. You know, they wouldn't be doing the things that they're doing if they weren't totally insanely focused on a piece of technology. They know something that other people don't. And if everybody would just try a little bit to use the powers the universe has granted them, to empower others, to unlock other people, the world would be a better place. So I think, you know, I think all of these factions, if we could just get people to stand for something greater than themselves, work to make people and places better off than before they touched them, and empower other people, I think we'll have some great outcomes. >> You know, empathy, empathy is a wonderful thing. And also you mentioned, know your neighbor. You know, that's a big thing. We're doing our part here in theCUBE, bringing our mission content. Bill, been great to have you on. And we'll get that clip out on the network about your mission. Great stuff. >> Thank you, thanks. >> And great to see you >> It's an awesome philosophy. >> be successful, you're a great leader. People look up to you, and certainly we're glad to have you on theCUBE. Thanks for joining us. Hey, more live coverage after this short break here on theCUBE in the Bahamas for crypto currency, token economics, POLYCON18. We'll be back with more after this short break.