>> Announcer: Live from Las Vegas, it's theCUBE, covering Dell Technologies World 2018. Brought to you by Dell EMC, and it's ecosystem partners. >> Welcome back to theCUBE's coverage of Dell Technologies World 2018, the inaugural Dell Technologies World event. Have two sets side by side, three days of broadcast. I'm Stu Miniman, joined with my cohost for this segment by John Troyer. >> Happy to welcome back to the program John Byrne, who since the last time we caught up with has a new title now, the North American Commercial Sales at Dell EMC. John thank you for joining us. >> Pleasure. Good to see John, John and Stu thank you. >> All right John, what are you doing here? Isn't it almost like the end of like financials? On the road, everything like that. But, yeah, tell us a little bit about kind of the change in role and what that meant for you. >> Yeah, it's kind of, it's kind of amazing. I was only here a year ago and here I was talking about bringing together Dell EMC's brand new channel. And we're very proud that we're talking about then it was a $35 billion organization. Here we are 12 months later, $35 billion to $43 billion channel organization, which is spectacular. And it's all thanks to our wonderful partner community and what they did. They were the ones that helped us with our vision, our strategy. The wonderful program that the team has developed, and we're seeing it unfold. That's been an incredible journey. And now one of the good things is obviously when we were building this initiative there was a power of and. We want both motions to continue to go, direct and channel. And you saw the results, both are growing. So obviously my new role and I've been asked to run North America Commercial Sales under Marius Haas, by Michael and Marius. >> I'd like to dig into it a little bit. I spoke to Marius on Monday, actually in our kick off this morning, talking about kind of EMC channel and sales and Dell channel and sales, a little bit different. I mean, EMC had a great channel, has a great channel continuing, but very much considered belly to belly as how they do that. Dell has been a little bit more partner and channel focused for longer. So I'm wondering, give us a little bit of insight. So you had the channel piece, you've had the sales piece. We hear things like, oh there's turning a direct rep into now he's more of an overlay. Through a little bit of those dynamics, what's happening from the sales standpoint and the impact on the channel. >> I think we got to remember the channel is an important wheel to everything we're doing here. With Dell Technologies we have 40,000 sales makers. Within our channel ecosystem we have 140,000 people. That is a sales army. They've gone after the market with the portfolio that we have, with the capability that we have, frankly done properly is unstoppable. And actually educating how both rose to market, how we want to play with one another. We look at, it is the power of and, and especially as we go through these transformational journeys and we're talking about digital and IT and workforce security, but we need everyone to play here. The wonderful news is, you saw, and I'm sure you have from Michael, a year ago we're a $73 billion organization. Within a year we're $80 billion organization. Phenomenal growth. However, the exciting thing for me, that's in a $3 trillion market. So 2.66%, that is so much upside for us, for all of us, that look, done properly, we're going to win is the general feeling. >> It's a pretty remarkable transformation. I mean transformation has been a theme of the whole show here, right? Digital transformation, make it real. You've been involved with both channels and Dell EMC sales. The role of the technology trusted advisor has changed over the last few decades. How are you approaching both your field force and the channel and your partners there, about this new role of how do we make digital transformation real in the field? What kind of upscaling do you need to be doing? And competencies do we need to be working on for folks that are listening that might be out in the field working directly with customers? >> We've all been in the industry for a long time. You think, rewind 10 years ago, you talk about technology, you talk about IT it was a call center. You fast forward to now it's a business imperative. You know when we're talking to our customers they clearly they want to get ahead of this transformational journey. However, we know then that less than half of them have already begun the journey. Here's the good news, those that have begun the journey, here's what we know. They're moving faster, their customer satisfactions are up. They're driving incremental revenue. The costs are going down. They're driving their incremental operating income. And I think what you're seeing here, right here right now, it is no longer this discussion around the transformational journeys. Making it real is here. You're seeing like AeroFarms. You're seeing McLaren onstage talking about bringing Formula One all the way through to medical. You're seeing TGen and a wonderful, wonderful company with the capability using technology to identify cancer earlier in children. I mean, that is what our purpose is all about. Now with that of course you have to evolve your own sales organization as well as your partner ecosystem. And we're treating our partners and their sales teams as exactly one in the same. So the way they're training and all the competencies that we'd expect of our own sales team is exactly what I'm expecting from our partner community. Like, it's an evolution we're going through here. Our sales team, we're training them on these transformations. We're showing them a purpose, how we're going to do it, but the other thing was more exciting for myself. We're also targeting the next generation of sales leaders. You know, working with universities. We want these top graduates to come here, to enjoy this wonderful company and what we're doing here. So now we're investing in people. We actually set up sales universities here in the US. It can be a three month program, it can be a two year program, spending anywhere between, up to almost $400,000 on a graduate coming through so that they understand exactly that the transformations are just natural in their DNA. That's what we're looking for right now. >> I love that, and Stu I love, I mean we both have a history with the Dell Technologies organizations over the years, and I'm impressed by how many people that I have met that are either long-term employees or have left and come back, right? And that investment in the people has got to be critical for your growth, especially at this size. >> Yeah, I think, John, we've gone beyond the, hey, what do you do and how do you do it, right? And now it's like what is your purpose? Our purpose is to impact human lives each and every single day. And I gave you some examples. But look, our ability using technology to connect more people around the world. Our ability to actually use technology to live longer, for us to identify, again, cancer earlier in people. That purpose is inspiring. And then you learn we're spending four and a half billion dollars in R and D to bring world class products and capabilities to the market. Done properly and with that true transformational mindset, as well as not forgetting that there's a massive market on IT infrastructure and the consolidation and winning in that space. Like I think we're, we as a collective community along with our customers we're praying to do wonderful things. >> All right, so, I want you to bring us inside your customers. So you've got North American Commercial Sales. Big market. Probably one of the most dynamic changing markets in the globe these days. what are some of the biggest challenges you're hearing from your customers who talk about digital transformation, make it real. What is your organization hearing while they're out there. >> Well also, actually you talk about North American Commercial Sales. I didn't frame it, where I work $19, $20 billion of the organization. >> Stu: Just a small piece. >> Just a small piece, but of course within we have state and local, we have education, we have federal government, we have the media and business space. Each of them all realize this digital transformation is here. And the conversation they're having with us is how do we get ahead of this, right? What experiences have you enjoyed yourself as an organization or with your partner ecosystem to make it real to them. So we're spending a lot of time with them in our executive briefing centers with our solution architects, showing well how to we enable the AeroFarms that we just talked about? It's really making a real (mumbles) conversation that we're having with them. Now there's the other edge spectrum of our customers, which is look, we want to continue to sell an unbelievable amount of PCs, and unbelievable amount of servers and storage and hyper-converge, and backup. So we have the wide spectrum. The good news is the conversation normally goes to let me tell you about Dell Technologies Advantage. Why did Michael spend $24 billion taking us private? $67 billion giving us all this wonderful array of assets. And as you walk them through these transformational journeys the normal response is oh my goodness, I did not know you did all of that. And then, okay, I'm not ready yet to go all the way there. But the comfort that you have it, okay let's begin a discussion. And that's what we're finding with a lot of our customers right now. >> All right one of the things, look you mentioned so many of the verticals there, and the commonality amongst most of them is change. Talk a little bit about the training, competencies, you know, your organization, how do you keep up? How do you help your customers keep up? >> Yeah, like, what is, change your dye it's kind of the mantra right now. We are spending an unbelievable amount of time on training. But with training also you acquire a lot of consistency. It's interesting we were here only two months ago for our field ready seminar, our sales kickoff. The feedback from our sales team was wow this seems very similar to last year. (mumbles) good. You got to learn these transformational journeys. Gone are the days of just going in and selling a single unit of product. You have to become the trusted advisor. So with that all of our training, all of our competencies are around understanding each of the transformations, how do you layer in Pivotal and Virtustream, and VMWare, and RSA, and SecureWare, and of obviously Dell EMC. How do you bring all of this together? And then also making it very clear to our sales team, This is my expectation of your role. This is what I expect you both to do. And here's the specialty teams that are around here, around you, to make you successful. So we have the training. It goes on every, actually it's consistent training, but two big ones per year. And with (mumbles) partners they've got to do exactly the same thing, that's what we're saying. >> John, as you and your sales leaders go out and talk to IT and you know, you're not, again in the field, you're way beyond oh check the box to order a new round of laptops or a new round of servers, right? Or server refresh. As you talk to the CIOs out there and the senior IT leaders, where are we in this transition? Are they getting it? I guess it's quite a range of responses. >> It really is, look some are already there. But are we there? Absolutely not. I think we're in single, we're more or less single digit. But again, when those CIOs, when they see, are you telling me look I can not only modern infrastructure, I can actually save money by getting to the modern infrastructure and I can layer in insights into my business using your technology, be it big data, be it AI, and I can yield more profitability at the end of it? You find them all in. But they're all in different levels obviously of expectation. >> Are there any characteristics of an organization that is either, is going or is ready to go that you see? >> I wouldn't say, here's what I will say. If you look across all of our transformations, VMWare is always consistent. I will tell you security remains a big theme. The other thing we've found is, again, as we get through these transformational discussions, the starting point still tends to be client. The client still seems to be the gateway to the data center for us. And I think you're also seeing, a lot of times we're also seeing, now everyone recognizing the workforce, the workforce has changed forever. Gone are the days when we remember sitting at a desk from nine til five. Look people are working remotely, people want to be reductive. They want to always be on. And I think that's why you're seeing this resurgence in the PC market. If you look now we've got 21 quarters of consecutive share gain, number one in the world on units, on revenue. Number one on profitability. Number one on server, number one on storage. Obviously number one with VMWare. That's consistent is they want to be dealing with Dell Technologies. >> John I want to give you the final word on key takeaways from the show. But I have to take away a couple things. Yes it does rain in Vegas, and you know, people, you know, playing at events, so other than those two things, what do you hope that people come away from from Dell Technologies World 2018? >> I hope people, well a few things. One, I hope they understand our purpose. We are and we have a desire to impact human life each and every day, by being the essential infrastructure. There is no longer buzz words around these transformational journeys. It's here. You can feel it, you can see it, there's real proof points. I think it's also clear these two motions that are happening. Mass consolidation of IT infrastructure, we want our customers and our partners to leave with Dell Technologies. And as you go through this transformational journey there is only one company who has all of the portfolio to satisfy all the needs, and it's Dell Technologies with the support of our customers and partners, and I'd be remiss if I don't always end by just saying, thank you. None of this is possible without wonderful customers supporting us on this journey. So that's (mumbles). >> All right, John Byrne really appreciate catching up with you. Look forward to catching up with you in the future. Hope you keep this job a little more than a year this time. >> I need to. John, thank you as well, thank you. >> I'm Stu Miniman with John Troyer. We'll be back with lots more coverage. Thanks for watching theCUBE.

>> Announcer: Live, from Las Vegas, it's theCUBE. Covering Dell EMC World 2017. Brought to you by Dell EMC. (techno music) >> And welcome here on theCUBE to Dell EMC World 2017 live from the Sands Expo, along with Keith Townsend, I'm John Walls, and good to have you with us here on day three of what has been a fantastic show here for Dell EMC, mega show. 13,000 plus attendees, a lot of great announcements, and a lot of great guests we've had here on theCUBE. One of them joining us now, John Byrne who is the president of Dell EMC Global Channels, and a cover boy, I might add. This month's edition of CRN. John, you should have been in pictures, man. You look great on the cover, so congratulations on that big news. >> Thank you very much. >> Good to have you with us here on theCUBE. Tell us about your journey here, in the past couple of months. You watch the partners program, you bring Dell on one hand, you bring EMC on the other, bring it all together, how's it going so far? >> Well, like I said, the reaction has been spectacular. You know, almost extraordinary. When you think of our channel business now. Our channel business is some $35 billion. When you frame that, it's bigger than Facebook, bigger than Starbucks, bigger than Nike, growing faster than the market, the broadest portfolio in everything. You hear us talking about, we want to be number one of everything all in one place, and we have this wonderful partner ecosystem that is primed and ready to take advantage of this opportunity. So we set up a brand new team, and new strategy, new program, and our partners couldn't be more excited. The program is launched, based on three tenets, being simple, predictable, profitable, and you know, we're very, very pleased and very humbled with the momentum we've had. And look here, this has been built for our partner, but actually it's been built with the partner community in mind, and they can feel this and we're on a tremendous journey. Super exciting. >> Yeah, I like the fact, too, that, I mean you made no bones about it, profitable is not a dirty word, right? It's a very good word and a very real word. But back up a minute, you said new strategy. So you've been a channel guy basically your whole professional life. What experiences did you bring from 6that into this endeavor that you think have given it its own stamp, or its own unique distinction? Yeah, look, I remember running my own channel companies as if it was yesterday, and I remember I always had choices. And I wanted to work with people who were going to win, and people who you wanted to work with. So when we traveled the world to find what are partners like about heritage Dell, heritage EMC, what did they not like, more importantly,6 what was the best of breed in the planet? They were very consistent on three things. They wanted the program to be very simple. An annual program, take advantage of EMC's world class training capability. Take cost and friction out of my selling motion, i.e., one portal, one deal registration, automation of rebate, so I can see every week what have I sold, what are my earnings?6 'Cause I remember when I ran my own comp6any, I wanted to continually invest in the skill sets and the certification, but more importantly on the people. So having that consistency was something that came through loud and clear. Predictability of engagement. Ultimately, where do we want our channel partners to play, and how will we protect their investment, knowing that they have choices. And we spend a lot of time on our dealer registration. The third thing is, you're talking to a Scotsman, and profit is important. >> Scotsman? I thought it was a Texas accent. I wasn't sure-- >> Honestly, you sound like my father talking about my accent, John. But you know, we invested significantly in marketing development funds. We invested significantly in the rebate program, and our partners now can make anywhere between 1.5x to eight times what they made historically, based on the right behavior. So bringing my background and knowledge,6 those three things are critical, what we're doing. And of course, like our differentiation is going to be in execution, and the team is making great progress. >> So John, a lot of the angst and excitement, rather, between the merger of Dell EMC was with the channel. What was going to happen with the channel? What was going to happen with the channel? You guys have seemingly executed, seamlessly, rather, but a question around the relationship with the channel. One throat to choke versus the competition. The competition is shrinking, getting smaller, getting less complex, is the marketing term. How is the channel reacted to the new size of Dell EMC versus the competition shrinking? >> Yeah, that's a great question to ask there. That's the biggest endorsement that we could possibly have. Of course it was concern at the very beginning. They didn't know what was going to be the strategy. Both companies had done phenomenally well, and the channel, well the strategies look similar, but actually very different in detail. When you think Dell had many thousands of partners. EMC had hundreds of partners. The criteria on EMC's program from a revenue perspective was significantly more than it was in Dell. So a lot of concern. But the first thing we did, Keith, is l6ook, I pride the salesmen, we pride the sales6 on having big ears, and we travel the world. We travel the world and we listened. And then we came together very quickly. I think we only were born in September '16. Four weeks later, we announced, here's our vision, here's our strategy. Here's the team, here's the program. We're going to be implementing in February and we over-communicated with our partners. And as we were building this, or tweaking this and tweaking this, and it's amazing, you think we came together as one go-to-market motion in February. Within 90 days under our belt, like when I look at the leading indicators, how's the numbers? How's pay plane? How's the training? How's the self-indications? How's our services capability? How's our acquisition? And when I started to see those scoreboards light out green, the partners can see line-of-sight to it. the feedback from the partners is, like, they cannot believe that a 35-billion channel business moving at this speed together and executing the way we are as one team, is taking a lot of the noise out of the system, and they can see line-of-sight to money. >> So wait, I wanted to drill down on that a bit. $35 billion channel business. Next biggest competitor is, I think, a company called HPE. Their market cap is only $30 billion compared to your revenues. What's the significance of that from a customer and channel perspective? >> Look, it's not for me to talk about the competition. You know, I think when I look at the hand that we have, I think taking us private, allowing us to invest significantly in the future has helped us greatly. I think expanding $4.5 million in R and D, which is double the competitor you just mentioned, to allow us to have a product portfolio that dominates Gartner's magic quadrants, to allow us to invest in the business. Look, this is only going to go one way, however, I want to be very clear, we're the dark horse. Don't let $35 billion scare people. Like we only have low double digit share, but with a portfolio, with the partner community, with the program, look this is going to be like a skyrocket and the partners can feel it. >> So on that, yeah, I mean, you bring dark horse, we all know that the conventional definition of dark horse, right? Long shot, no shot, but $35 billion, it's pretty hard to fly under the radar, honestly, right John? >> Yes it is, it is. But I also want to include, that we have big visions. We have big dreams. We want to be the number one channel put in the industry. We want to be the number one, the biggest, and the best. Not the best, not the biggest, not the biggest, not the best. We want to be the biggest and the best. When we're talking to our partners right now, look, we've had them here, would you believe, it's been four and a half thousand partners here this week? We had a Global Partners Summit. It was standing room only, with the four and a half thousand. Actually, we had to go overflow rooms to get our partners coming in here. And those partners are feeding back to us, I'm almost scared to mention the number, how big this could be, but a discussion we're having with partners is not how do we grow up market? Or how do we grown a little bit above market. The discussion with the partners is how do we double? >> So with that said, Michael has talked an awful lot about the small overlap between Dell, Dell EMC, 20%, only 20% overlap, has the channel realized a new opportunity because of that limited overlap? >> Again, the leading indicator is look, we asked the partners for four things, as we build this program, and it's a rich program, and intentionally done so. We asked them for four things, we want you to grow your top line. We want to be aggressive and attack the market, however, I also wanted to make a lot of money. Profit is important. From our company to the partner community to the distributors. The second thing is, we want them to sell much more of our portfolio. You heard I'm sure, the past couple of days the four transformations. Building the modern data center. Our partners have the capability to sell much more lines of business than they are today. The third thing is, we want to be aggressive and acquire new customers, acquire new lines of business, and also attach services. Like if we spend a lot of time talking about hardware, but you're also hearing us talk about our services capability. That is a pot of gold for our partners if they do this, it's going to light up. So does our partner see this opportunity? Are they leaning in at getting more training, more certifications, oh, absolutely. >> So, let's talk about training because that's the critical part. Dell EMC is mind-mindbogglingly huge. So when I'm a channel, if I'm a channel engineer and I look at the portfolio, and I go onto a customer's site, how do I wrap my arms around just the size of it? I'm not in the mothership of Dellenium, see I don't have all of the, well, in theory, I don't have all of the back channels to the solutions. How do keep, how do you keep the channel up to speed? >> Yeah, great question. Actually, I'll give you some data points. Would you believe that at Dell Technologies, we have 40,000 sales makers who are trained and certified to sell our portfolio. That's quite a startling number, right? However, when you look at our partner community, who also do the same training and certification, we have 129,000 people trained in our partner community. That is a sales army of 169,000 people, trained and certified to go on attack, not only today but attack the future transformations. So what we've done, is we basically led a training that our own team does, our partners do it. We've also centralized all of our training. It's all on one portal. Clearly articulating, if you want to go by product, here's a by product, if you want to go by transformation, here's a by transformation. You want to do it by services, here's the services. And look, I think the other thing they're finding is it has real equity to the person doing the training. It's developing their career. You go to the LinkedIn, the explanation, we are Dell EMC certified trainers. That is exciting, to sell the products portfolio on the planet. >> So this is the program you launched early February, right? So, as you said, 90 days in. With any new program, though, you're going to hit speed bumps along the way, right? You're going to find some wrinkles, you're going to find some things you need to, what would that be in your mind? You said, okay, this is something, it's all going well in one respect, and it sounds great, but there is some polish that we still need. Where would that be right now? >> Oh, no question. Are you kidding me, 90 days in? >> All right. >> What the team and the partner community have done in 90 days is extraordinary, I mean, truly, truly extraordinary, however, they recognize we're going at tectonic speeds. But we have to. The channel is nimble, it's agile, it's got a different pulse, it's got a different heartbeat, but we're being very authentic on the journey. So when we brought the four and a half thousand, we talk about, look at some of the wins that are already on the board. And I'm telling you, we could have spent a full 90 minutes just talking about the wins that we found the first 90 days. The program has launched fantastically well, but with the bums in the road. But our partners understand that because we're being very authentic, and you know, they're part of the team, they're part of the family. What will define us is not that we're going to make mistakes, we will make mistakes, in life you make mistakes, in business you make mistakes. What will define us is how we react to those mistakes. Are we always there? Are we being true to our commitment? Are we staying very consistent. And the feedback from the partner community has been, yes. And the progress we're making, and look we are definitely not done. I mean, you think 90 days in, then fast forward, we are now full strength coming into the program. We spoke about consumption models coming in, flex on demand, cloud flex, PCs and service, VDI complete. They also asked us to simplify our MDF gate lanes. Done. So, you know, we're moving at the speed of light, and it is a lot of fun. >> Well, it makes sense. I mean, easier, simple, predictable, profitable, and I think you certainly hit a home run with that mantra, and obviously with the program, as well. So, congratulations on that. >> Thank you. >> Thanks for being with us here on theCUBE. >> My pleasure, John. >> It's always nice to add a different accent, don't you think, Keith? >> Thank you Keith, thank you very much. >> Yes, sir, thank you. >> John Byrne from Global Channels and Dell EMC, and we'll be back with more from Dell EMC World 2017, live in Las Vegas, right after this. (techno music)

(upbeat intro music) >> Hello everyone. Welcome to theCUBE's coverage of International Women's Day. I'm your host, John Furrier, here in Palo Alto, California. Got a special remote guest coming in. Teresa Carlson, President and Chief Commercial Officer at Flexport, theCUBE alumni, one of the first, let me go back to 2013, Teresa, former AWS. Great to see you. Thanks for coming on. >> Oh my gosh, almost 10 years. That is unbelievable. It's hard to believe so many years of theCUBE. I love it. >> It's been such a great honor to interview you and follow your career. You've had quite the impressive run, executive level woman in tech. You've done such an amazing job, not only in your career, but also helping other women. So I want to give you props to that before we get started. Thank you. >> Thank you, John. I, it's my, it's been my honor and privilege. >> Let's talk about Flexport. Tell us about your new role there and what it's all about. >> Well, I love it. I'm back working with another Amazonian, Dave Clark, who is our CEO of Flexport, and we are about 3,000 people strong globally in over 90 countries. We actually even have, we're represented in over 160 cities and with local governments and places around the world, which I think is super exciting. We have over 100 network partners and growing, and we are about empowering the global supply chain and trade and doing it in a very disruptive way with the use of platform technology that allows our customers to really have visibility and insight to what's going on. And it's a lot of fun. I'm learning new things, but there's a lot of technology in this as well, so I feel right at home. >> You quite have a knack from mastering growth, technology, and building out companies. So congratulations, and scaling them up too with the systems and processes. So I want to get into that. Let's get into your personal background. Then I want to get into the work you've done and are doing for empowering women in tech. What was your journey about, how did it all start? Like, I know you had a, you know, bumped into it, you went Microsoft, AWS. Take us through your career, how you got into tech, how it all happened. >> Well, I do like to give a shout out, John, to my roots and heritage, which was a speech and language pathologist. So I did start out in healthcare right out of, you know, university. I had an undergraduate and a master's degree. And I do tell everyone now, looking back at my career, I think it was super helpful for me because I learned a lot about human communication, and it has done me very well over the years to really try to understand what environments I'm in and what kind of individuals around the world culturally. So I'm really blessed that I had that opportunity to work in healthcare, and by the way, a shout out to all of our healthcare workers that has helped us get through almost three years of COVID and flu and neurovirus and everything else. So started out there and then kind of almost accidentally got into technology. My first small company I worked for was a company called Keyfile Corporation, which did workflow and document management out of Nashua, New Hampshire. And they were a Microsoft goal partner. And that is actually how I got into big tech world. We ran on exchange, for everybody who knows that term exchange, and we were a large small partner, but large in the world of exchange. And those were the days when you would, the late nineties, you would go and be in the same room with Bill Gates and Steve Ballmer. And I really fell in love with Microsoft back then. I thought to myself, wow, if I could work for a big tech company, I got to hear Bill on stage about saving, he would talk about saving the world. And guess what my next step was? I actually got a job at Microsoft, took a pay cut and a job downgrade. I tell this story all the time. Took like three downgrades in my role. I had been a SVP and went to a manager, and it's one of the best moves I ever made. And I shared that because I really didn't know the world of big tech, and I had to start from the ground up and relearn it. I did that, I just really loved that job. I was at Microsoft from 2000 to 2010, where I eventually ran all of the U.S. federal government business, which was a multi-billion dollar business. And then I had the great privilege of meeting an amazing man, Andy Jassy, who I thought was just unbelievable in his insights and knowledge and openness to understanding new markets. And we talked about government and how government needed the same great technology as every startup. And that led to me going to work for Andy in 2010 and starting up our worldwide public sector business. And I pinch myself some days because we went from two people, no offices, to the time I left we had over 10,000 people, billions in revenue, and 172 countries and had done really amazing work. I think changing the way public sector and government globally really thought about their use of technology and Cloud computing in general. And that kind of has been my career. You know, I was there till 2020, 21 and then did a small stint at Splunk, a small stint back at Microsoft doing a couple projects for Microsoft with CEO, Satya Nadella, who is also an another amazing CEO and leader. And then Dave called me, and I'm at Flexport, so I couldn't be more honored, John. I've just had such an amazing career working with amazing individuals. >> Yeah, I got to say the Amazon One well-documented, certainly by theCUBE and our coverage. We watched you rise and scale that thing. And like I said at a time, this will when we look back as a historic run because of the build out. I mean as a zero to massive billions at a historic time where government was transforming, I would say Microsoft had a good run there with Fed, but it was already established stuff. Federal business was like, you know, blocking and tackling. The Amazon was pure build out. So I have to ask you, what was your big learnings? Because one, you're a Seattle big tech company kind of entrepreneurial in the sense of you got, here's some working capital seed finance and go build that thing, and you're in DC and you're a woman. What did you learn? >> I learned that you really have to have a lot of grit. You, my mom and dad, these are kind of more southern roots words, but stick with itness, you know. you can't give up and no's not in your vocabulary. I found no is just another way to get to yes. That you have to figure out what are all the questions people are going to ask you. I learned to be very patient, and I think one of the things John, for us was our secret sauce was we said to ourselves, if we're going to do something super transformative and truly disruptive, like Cloud computing, which the government really had not utilized, we had to be patient. We had to answer all their questions, and we could not judge in any way what they were thinking because if we couldn't answer all those questions and prove out the capabilities of Cloud computing, we were not going to accomplish our goals. And I do give so much credit to all my colleagues there from everybody like Steve Schmidt who was there, who's still there, who's the CISO, and Charlie Bell and Peter DeSantis and the entire team there that just really helped build that business out. Without them, you know, we would've just, it was a team effort. And I think that's the thing I loved about it was it was not just sales, it was product, it was development, it was data center operations, it was legal, finance. Everybody really worked as a team and we were on board that we had to make a lot of changes in the government relations team. We had to go into Capitol Hill. We had to talk to them about the changes that were required and really get them to understand why Cloud computing could be such a transformative game changer for the way government operates globally. >> Well, I think the whole world and the tech world can appreciate your work and thank you later because you broke down those walls asking those questions. So great stuff. Now I got to say, you're in kind of a similar role at Flexport. Again, transformative supply chain, not new. Computing wasn't new when before Cloud came. Supply chain, not a new concept, is undergoing radical change and transformation. Online, software supply chain, hardware supply chain, supply chain in general, shipping. This is a big part of our economy and how life is working. Similar kind of thing going on, build out, growth, scale. >> It is, it's very much like that, John, I would say, it's, it's kind of a, the model with freight forwarding and supply chain is fairly, it's not as, there's a lot of technology utilized in this global supply chain world, but it's not integrated. You don't have a common operating picture of what you're doing in your global supply chain. You don't have easy access to the information and visibility. And that's really, you know, I was at a conference last week in LA, and it was, the themes were so similar about transparency, access to data and information, being able to act quickly, drive change, know what was happening. I was like, wow, this sounds familiar. Data, AI, machine learning, visibility, common operating picture. So it is very much the same kind of themes that you heard even with government. I do believe it's an industry that is going through transformation and Flexport has been a group that's come in and said, look, we have this amazing idea, number one to give access to everyone. We want every small business to every large business to every government around the world to be able to trade their goods, think about supply chain logistics in a very different way with information they need and want at their fingertips. So that's kind of thing one, but to apply that technology in a way that's very usable across all systems from an integration perspective. So it's kind of exciting. I used to tell this story years ago, John, and I don't think Michael Dell would mind that I tell this story. One of our first customers when I was at Keyfile Corporation was we did workflow and document management, and Dell was one of our customers. And I remember going out to visit them, and they had runners and they would run around, you know, they would run around the floor and do their orders, right, to get all those computers out the door. And when I think of global trade, in my mind I still see runners, you know, running around and I think that's moved to a very digital, right, world that all this stuff, you don't need people doing this. You have machines doing this now, and you have access to the information, and you know, we still have issues resulting from COVID where we have either an under-abundance or an over-abundance of our supply chain. We still have clogs in our shipping, in the shipping yards around the world. So we, and the ports, so we need to also, we still have some clearing to do. And that's the reason technology is important and will continue to be very important in this world of global trade. >> Yeah, great, great impact for change. I got to ask you about Flexport's inclusion, diversity, and equity programs. What do you got going on there? That's been a big conversation in the industry around keeping a focus on not making one way more than the other, but clearly every company, if they don't have a strong program, will be at a disadvantage. That's well reported by McKinsey and other top consultants, diverse workforces, inclusive, equitable, all perform better. What's Flexport's strategy and how are you guys supporting that in the workplace? >> Well, let me just start by saying really at the core of who I am, since the day I've started understanding that as an individual and a female leader, that I could have an impact. That the words I used, the actions I took, the information that I pulled together and had knowledge of could be meaningful. And I think each and every one of us is responsible to do what we can to make our workplace and the world a more diverse and inclusive place to live and work. And I've always enjoyed kind of the thought that, that I could help empower women around the world in the tech industry. Now I'm hoping to do my little part, John, in that in the supply chain and global trade business. And I would tell you at Flexport we have some amazing women. I'm so excited to get to know all. I've not been there that long yet, but I'm getting to know we have some, we have a very diverse leadership team between men and women at Dave's level. I have some unbelievable women on my team directly that I'm getting to know more, and I'm so impressed with what they're doing. And this is a very, you know, while this industry is different than the world I live in day to day, it's also has a lot of common themes to it. So, you know, for us, we're trying to approach every day by saying, let's make sure both our interviewing cycles, the jobs we feel, how we recruit people, how we put people out there on the platforms, that we have diversity and inclusion and all of that every day. And I can tell you from the top, from Dave and all of our leaders, we just had an offsite and we had a big conversation about this is something. It's a drum beat that we have to think about and live by every day and really check ourselves on a regular basis. But I do think there's so much more room for women in the world to do great things. And one of the, one of the areas, as you know very well, we lost a lot of women during COVID, who just left the workforce again. So we kind of went back unfortunately. So we have to now move forward and make sure that we are giving women the opportunity to have great jobs, have the flexibility they need as they build a family, and have a workplace environment that is trusted for them to come into every day. >> There's now clear visibility, at least in today's world, not withstanding some of the setbacks from COVID, that a young girl can look out in a company and see a path from entry level to the boardroom. That's a big change. A lot than even going back 10, 15, 20 years ago. What's your advice to the folks out there that are paying it forward? You see a lot of executive leaderships have a seat at the table. The board still underrepresented by most numbers, but at least you have now kind of this solidarity at the top, but a lot of people doing a lot more now than I've seen at the next levels down. So now you have this leveled approach. Is that something that you're seeing more of? And credit compare and contrast that to 20 years ago when you were, you know, rising through the ranks? What's different? >> Well, one of the main things, and I honestly do not think about it too much, but there were really no women. There were none. When I showed up in the meetings, I literally, it was me or not me at the table, but at the seat behind the table. The women just weren't in the room, and there were so many more barriers that we had to push through, and that has changed a lot. I mean globally that has changed a lot in the U.S. You know, if you look at just our U.S. House of Representatives and our U.S. Senate, we now have the increasing number of women. Even at leadership levels, you're seeing that change. You have a lot more women on boards than we ever thought we would ever represent. While we are not there, more female CEOs that I get an opportunity to see and talk to. Women starting companies, they do not see the barriers. And I will share, John, globally in the U.S. one of the things that I still see that we have that many other countries don't have, which I'm very proud of, women in the U.S. have a spirit about them that they just don't see the barriers in the same way. They believe that they can accomplish anything. I have two sons, I don't have daughters. I have nieces, and I'm hoping someday to have granddaughters. But I know that a lot of my friends who have granddaughters today talk about the boldness, the fortitude, that they believe that there's nothing they can't accomplish. And I think that's what what we have to instill in every little girl out there, that they can accomplish anything they want to. The world is theirs, and we need to not just do that in the U.S., but around the world. And it was always the thing that struck me when I did all my travels at AWS and now with Flexport, I'm traveling again quite a bit, is just the differences you see in the cultures around the world. And I remember even in the Middle East, how I started seeing it change. You've heard me talk a lot on this program about the fact in both Saudi and Bahrain, over 60% of the tech workers were females and most of them held the the hardest jobs, the security, the architecture, the engineering. But many of them did not hold leadership roles. And that is what we've got to change too. To your point, the middle, we want it to get bigger, but the top, we need to get bigger. We need to make sure women globally have opportunities to hold the most precious leadership roles and demonstrate their capabilities at the very top. But that's changed. And I would say the biggest difference is when we show up, we're actually evaluated properly for those kind of roles. We have a ways to go. But again, that part is really changing. >> Can you share, Teresa, first of all, that's great work you've done and I wan to give you props of that as well and all the work you do. I know you champion a lot of, you know, causes in in this area. One question that comes up a lot, I would love to get your opinion 'cause I think you can contribute heavily here is mentoring and sponsorship is huge, comes up all the time. What advice would you share to folks out there who were, I won't say apprehensive, but maybe nervous about how to do the networking and sponsorship and mentoring? It's not just mentoring, it's sponsorship too. What's your best practice? What advice would you give for the best way to handle that? >> Well yeah, and for the women out there, I would say on the mentorship side, I still see mentorship. Like, I don't think you can ever stop having mentorship. And I like to look at my mentors in different parts of my life because if you want to be a well-rounded person, you may have parts of your life every day that you think I'm doing a great job here and I definitely would like to do better there. Whether it's your spiritual life, your physical life, your work life, you know, your leisure life. But I mean there's, and there's parts of my leadership world that I still seek advice from as I try to do new things even in this world. And I tried some new things in between roles. I went out and asked the people that I respected the most. So I just would say for sure have different mentorships and don't be afraid to have that diversity. But if you have mentorships, the second important thing is show up with a real agenda and questions. Don't waste people's time. I'm very sensitive today. If you're, if you want a mentor, you show up and you use your time super effectively and be prepared for that. Sponsorship is a very different thing. And I don't believe we actually do that still in companies. We worked, thank goodness for my great HR team. When I was at AWS, we worked on a few sponsorship programs where for diversity in general, where we would nominate individuals in the company that we felt that weren't, that had a lot of opportunity for growth, but they just weren't getting a seat at the table. And we brought 'em to the table. And we actually kind of had a Chatham House rules where when they came into the meetings, they had a sponsor, not a mentor. They had a sponsor that was with them the full 18 months of this program. We would bring 'em into executive meetings. They would read docs, they could ask questions. We wanted them to be able to open up and ask crazy questions without, you know, feeling wow, I just couldn't answer this question in a normal environment or setting. And then we tried to make sure once they got through the program that we found jobs and support and other special projects that they could go do. But they still had that sponsor and that group of individuals that they'd gone through the program with, John, that they could keep going back to. And I remember sitting there and they asked me what I wanted to get out of the program, and I said two things. I want you to leave this program and say to yourself, I would've never had that experience if I hadn't gone through this program. I learned so much in 18 months. It would probably taken me five years to learn. And that it helped them in their career. The second thing I told them is I wanted them to go out and recruit individuals that look like them. I said, we need diversity, and unless you all feel that we are in an inclusive environment sponsoring all types of individuals to be part of this company, we're not going to get the job done. And they said, okay. And you know, but it was really one, it was very much about them. That we took a group of individuals that had high potential and a very diverse with diverse backgrounds, held 'em up, taught 'em things that gave them access. And two, selfishly I said, I want more of you in my business. Please help me. And I think those kind of things are helpful, and you have to be thoughtful about these kind of programs. And to me that's more sponsorship. I still have people reach out to me from years ago, you know, Microsoft saying, you were so good with me, can you give me a reference now? Can you talk to me about what I should be doing? And I try to, I'm not pray 100%, some things pray fall through the cracks, but I always try to make the time to talk to those individuals because for me, I am where I am today because I got some of the best advice from people like Don Byrne and Linda Zecker and Andy Jassy, who were very honest and upfront with me about my career. >> Awesome. Well, you got a passion for empowering women in tech, paying it forward, but you're quite accomplished and that's why we're so glad to have you on the program here. President and Chief Commercial Officer at Flexport. Obviously storied career and your other jobs, specifically Amazon I think, is historic in my mind. This next chapter looks like it's looking good right now. Final question for you, for the few minutes you have left. Tell us what you're up to at Flexport. What's your goals as President, Chief Commercial Officer? What are you trying to accomplish? Share a little bit, what's on your mind with your current job? >> Well, you kind of said it earlier. I think if I look at my own superpowers, I love customers, I love partners. I get my energy, John, from those interactions. So one is to come in and really help us build even a better world class enterprise global sales and marketing team. Really listen to our customers, think about how we interact with them, build the best executive programs we can, think about new ways that we can offer services to them and create new services. One of my favorite things about my career is I think if you're a business leader, it's your job to come back around and tell your product group and your services org what you're hearing from customers. That's how you can be so much more impactful, that you listen, you learn, and you deliver. So that's one big job. The second job for me, which I am so excited about, is that I have an amazing group called flexport.org under me. And flexport.org is doing amazing things around the world to help those in need. We just announced this new funding program for Tech for Refugees, which brings assistance to millions of people in Ukraine, Pakistan, the horn of Africa, and those who are affected by earthquakes. We just took supplies into Turkey and Syria, and Flexport, recently in fact, just did sent three air shipments to Turkey and Syria for these. And I think we did over a hundred trekking shipments to get earthquake relief. And as you can imagine, it was not easy to get into Syria. But you know, we're very active in the Ukraine, and we are, our goal for flexport.org, John, is to continue to work with our commercial customers and team up with them when they're trying to get supplies in to do that in a very cost effective, easy way, as quickly as we can. So that not-for-profit side of me that I'm so, I'm so happy. And you know, Ryan Peterson, who was our founder, this was his brainchild, and he's really taken this to the next level. So I'm honored to be able to pick that up and look for new ways to have impact around the world. And you know, I've always found that I think if you do things right with a company, you can have a beautiful combination of commercial-ity and giving. And I think Flexport does it in such an amazing and unique way. >> Well, the impact that they have with their system and their technology with logistics and shipping and supply chain is a channel for societal change. And I think that's a huge gift that you have that under your purview. So looking forward to finding out more about flexport.org. I can only imagine all the exciting things around sustainability, and we just had Mobile World Congress for Big Cube Broadcast, 5Gs right around the corner. I'm sure that's going to have a huge impact to your business. >> Well, for sure. And just on gas emissions, that's another thing that we are tracking gas, greenhouse gas emissions. And in fact we've already reduced more than 300,000 tons and supported over 600 organizations doing that. So that's a thing we're also trying to make sure that we're being climate aware and ensuring that we are doing the best job we can at that as well. And that was another thing I was honored to be able to do when we were at AWS, is to really cut out greenhouse gas emissions and really go global with our climate initiatives. >> Well Teresa, it's great to have you on. Security, data, 5G, sustainability, business transformation, AI all coming together to change the game. You're in another hot seat, hot roll, big wave. >> Well, John, it's an honor, and just thank you again for doing this and having women on and really representing us in a big way as we celebrate International Women's Day. >> I really appreciate it, it's super important. And these videos have impact, so we're going to do a lot more. And I appreciate your leadership to the industry and thank you so much for taking the time to contribute to our effort. Thank you, Teresa. >> Thank you. Thanks everybody. >> Teresa Carlson, the President and Chief Commercial Officer of Flexport. I'm John Furrier, host of theCUBE. This is International Women's Day broadcast. Thanks for watching. (upbeat outro music)

hi brother this is Dave Valentina May 27th we're hosting a crowd chat brought to you by IBM the focus of the crowd chat is on data ops go to crouch at NAT slash data ops and you're gonna learn about what real practitioners are doing not only to get started in data ops but how they've succeeded jaelyn Byrne is here Jay hey how you doin thanks a lot tell us what you're seeing in terms of how clients are getting started is a complicated situation for a lot of people where should they start yeah you're right it really is a complicated situation and if you look at the broad landscape of everything that encapsulates data ops it can be difficult to understand where they get started in IBM we provide a data table methodology which really helps clients break this down and understand each step of the process then they need to go through to provide clarity on where they can get an extra value very very quickly and whether get started a lot of clients I'm working with typically that's been focusing on the data cataloging and the data governance space whereby if clients can get a view of all of their data and understanding where the data lives who owns that data what a purpose it can be useful then once they've got that picture and they delivered value from that initial piece it's really really easy to phase the pieces that come up so check out the crowd shadow May 27th crowd chatting ed /data ops it's not a bunch of marketing gobbledygook you're gonna hear from real practitioners I'll be there hope you are too

from Boston Massachusetts it's the cube covering wtg transform 2018 brought to you by Winslow technology group hi I'm Stu minimun and this is the second year of the cube at what is now wtg transform 2018 and happy to welcome to the program Scott Winslow who is the president and founder of winslet Technology Group Scott always great to see you good afternoon still happy to be with you hey and Scott thank you so much you you not only brought us back a second year we've got a nice table here but I'm not tripping over myself saying that it's the you know 14th anniversary Winslow technology group Dell EMC user conference and lovely Boston Massachusetts in the background it was like ha it's literally wtg transform rolls off the tongue so thank you you were the inspiration for us to you your comments last year precipitated to change our name III know your team just looked at it and felt sorry for me because it didn't roll off the tongue quite as easily as as the new it was a mouthful yeah so Scott you and I did we bump into each other a bunch we'd say we tend to go to many of the shows the Dell show the Nutanix show let's talk about your show first here you said it is the 14th year its users one of the reasons Idol of coming here besides getting to talk to you and Rick and some of your partner's is users I will speak to more users in one day here than I do it some of the big shows I go to yeah I mean it's it's a great opportunity to thank our existing customer base you know we have a fourfold purpose for this event we like to educate our customers we hope that they can pick up some knowledge and maybe an aha moment that they have with they're looking at a hyper-converged solutions or all-flash solutions we've got a new Dell client display here this year that we've never had in the past so we're looking to educate we love to give them an opportunity to collaborate with other practitioners to compare notes the feedback I get from them is they really enjoy that piece of it we want to have some fun and you know it's a tradition that we want to keep rolling and they're helping you know to make it very successful so it's been a great it's been a great venue for us and a great event for so over 14 years now and Scott you couldn't have ordered a better day I mean New England you know it might change in an hour but right now temperatures in the low 70s it's mostly clear you know gorgeous backdrop here as you mentioned in the you open you know Sox have their ace pitching tonight and there are still in first place so yeah it doesn't doesn't hurt well you know we're in the customer service business right so you have to think of everything temperature starting pitcher and you know we try to make sure we've got a good agenda and there's a lot of good information for them here there to get customers to come out and spend a day with you like this is why there's a great event has going to be so biggest because year after year after year I feel like we've delivered and then we have kind of a continuous improvement process and we try to improve it every year here we are Scott one talk about your business you know first time we met you know winslet technology was one of the it was it was the Dell Partner of the year so you know been a long time dell partner the dell you know acquisition merger with emc it's been interesting to watch i know you've got some viewpoints but before we get into kind of the dell piece of it talk about your business as you know because we call you a channel partner and they're you know what's driving your business how's growth going how are things up here in new england and Beyond because yeah you're much more than New England yeah I mean well we've certainly evolved our business over the years with acquisitions being a big part of that initially we started out as a compelling partner then Compellent was acquired by Dell and then you know five or six years later after that we've the Delhi you see consolidation so I think we've had to learn to be flexible and and one of the things we've seen with that is we just each time there was an acquisition it allowed us to increase the size of our portfolio with more solutions that we can offer our end-users more services that we can provide you know along the way we've added a lot of other solutions too like the Nutanix solution and the hyper-converged space so our business is going great we're you know the highest employee count we've ever had our revenues were as high as they've ever been last year we had a record q3 record q4 in q1 we grew our Dell business by over 30% that makes Dell very happy and makes us very happy as well so you know as as this whole industry evolves and you know the digital economy progresses there continue to be the need for the services that we provide all right so let's talk about Dallas you said you've come from the compelling piece the the delicacy which the Nutanix OEM is something that I know your team is you know very involved with you know how is Dell and LEM see how they do and for the channel these days I think they're doing very well I think they you know tell likes to save they big ears and they listen well I think that they have proven that they put together a very good channel a partner program under the leadership of John Byrne initially and now Joyce Mullen you know I think that they incent you to work with them they try to incent the salespeople and sent the companies but they also put together very good programs for you to run marketing events like this so an event like this we couldn't do it without the support of Dell technologies and they've been you know very supportive of us you know they're providing speakers like Dave singer you've got all kinds of subject matter experts here we've got lots of hardware and software for folks through you know demo so I think I think overall the partner programs been very good great in Nutanix is this a you you get it through the Dell so I'm curious has it has the move as Nutanix is shifting more to really that software model does that have any impact on on your business or are you isolated from that since you've been using the Dell xcs yeah well I mean first of all we've been involved in Nutanix for you know three plus years now right before Dell acquired EMC our hyper-converged solution was Nutanix we've built together you know a very nice base with customers many of whom you know are here today so as they evolve to a software model I do think they're going to be less concerned about what or where platform it goes on because they're truly creating all their revenues you know from the software side so they're very they're they don't care really what you know what hardware platform is being used so you know we feel like we've got the best two solutions in the hyper-converged marketplace between the portfolio of Dell solutions you know visa and VX rail vce and then Nutanix with the Nutanix solution typically with Nutanix we tend to put that on a Dell server platform that's where we lean we think Dells got the best server technology in the industry that's a nice way for us to bridge that gap between the two companies so a lot of times our customers are putting a new tannic solution on a dell platform you know key themes I heard your talk rick's talk david singers talk this morning and what i hear from customers digital transformation and hybrid cloud are those top of mine with your customers today absolutely yeah I think you know Rick alluded to it in his talk a lot of customers are coming to us saying hey help us with our cloud strategy and so we're going in and saying tell us about your applications you know these are applications that we think belong in the public cloud that makes sense and the public cloud and you know that could be disaster recovery could be backup it could be office 365 and these are other applications that we think might be more well suited for an on-premise solution so that could be active file transfer and so you know we think that leads naturally to a hybrid cloud discussion we've got a customer here today a financial customer from New Hampshire and their CIO called me I had known him previously at a famous sneaker company in town he went to a financial institution and he said hey we wanna we want to move everything to the cloud can you come up and consult with us on that and we ended up putting in a hybrid cloud for him you know featuring a hyper-converged solution that had the cloud integration that he needed so I think that's the kind of activity we're involved in today yeah you use the word conversation that and the customers I've talked to they like they they need advice and they want someone that's not just oh well here's the solution that you're going to buy it no no it's a conversation there's lots of decision points and as you build out that hybrid cloud yes it's going to be made of by definition multiple pieces it's not necessarily going to be one company that's going to do it all but you know your team helps them that journey absolutely I mean you can't go in with a cookie cutter approach at sea you know you've got two years in one mouth we tell other salespeople you got to use them in that portion so you really kind of listen to the customer as I said try to understand what their applications are you got to understand what their biases are if it's a Microsoft shop you know as your might be their choice for you know public cloud or they might be interested in AWS so you got to kind of work through those you know scenarios and then build out a solution that's gonna work for them we and we rely on our solutions architects Brian veenu runs our sa team and he's got a group of five essays that we think are very adept at you know putting those solutions together yeah Brian's actually not not far from I said here you've got the new hands-on lab is one of the new things that you added here and anything from that or from other things at the event that you won't want to highlight as we wrap yeah I think I mean the hands-on lab gives you know customers the opportunity to come in and play with kind of structured and scripted demos and I see a number of customers in there using that so I'll talk to our team after the event and find out how it went we always try to look for you know improvements along the way but you know there's opportunity in there to play with those demos in terms of storage in terms of hyper-converged in terms of Dell OpenManage essentials which is the software that manages your entire server farm so I think that's been a good addition I'd say the other addition is this year is we were planning it we said hey our people are really good we need to get our people up in front instead of relying so much on the OEM and they're great and they provide great resources but I know that our people have so much to offer as well particularly because you know we're out there you know you're putting solutions together for customers and I think that breadth and depth you know comes through so that's been a nice addition this year where it's not just been Rick out on myself but we've utilized a number of members on our team Ed Palmer is the moderator for a customer experience as an outcome session this afternoon that we're really excited about because at the end of the day is a solution provider that's our job is to produce results and outcomes for our customers that's how we're going to be judged that's how we want to be judged so I'm really excited about that session because we've got em privada and Boston Architectural College they're going to present up their respective deployments and they were different of hyper-converged technology so I think the voice of the customer we really want to make sure we're continue to bring that back to this event so well Scott always a pleasure to see you thanks so much for taking the cube back to this event and thank you for all the customers we get access to we always loved to talk to the customers by the way if you're looking to get a customer on the cube that's we were always looking for customers so we look at the events or we do have a Boston area studio and a lovely Palo Alto studio so reach out to the team be happy to talk mom's to minimun thanks so much for watching the Q

[Music] [Music] [Music] [Laughter] [Laughter] [Laughter] [Laughter] [Music] [Music] [Music] [Music] you you [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] wake up feeling blessed peace you warned that Russia ain't afraid to show it I'll expose it if I dressed up riding in that Chester roasted nigga catch you slippin on myself rocks on I messed up like yes sir [Music] [Music] [Music] [Music] our program [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] you are not welcome to Red Hat summit 2018 2018 [Music] [Music] [Music] [Laughter] [Music] Wow that is truly the coolest introduction I've ever had thank you Wow I don't think I feel cool enough to follow an interaction like that Wow well welcome to the Red Hat summit this is our 14th annual event and I have to say looking out over this audience Wow it's great to see so many people here joining us this is by far our largest summit to date not only did we blow through the numbers we've had in the past we blew through our own expectations this year so I know we have a pretty packed house and I know people are still coming in so it's great to see so many people here it's great to see so many familiar faces when I had a chance to walk around earlier it's great to see so many new people here joining us for the first time I think the record attendance is an indication that more and more enterprises around the world are seeing the power of open source to help them with their challenges that they're facing due to the digital transformation that all of enterprises around the world are going through the theme for the summit this year is ideas worth exploring and we intentionally chose that because as much as we are all going through this digital disruption and the challenges associated with it one thing I think is becoming clear no one person and certainly no one company has the answers to these challenges right this isn't a problem where you can go buy a solution this is a set of capabilities that we all need to build it's a set of cultural changes that we all need to go through and that's going to require the best ideas coming from so many different places so we're not here saying we have the answers we're trying to convene the conversation right we want to serve as a catalyst bringing great minds together to share ideas so we all walk out of here at the end of the week a little wiser than when we first came here we do have an amazing agenda for you we have over 7,000 attendees we may be pushing 8,000 by the time we got through this morning we have 36 keynote speakers and we have a hundred and twenty-five breakout sessions and have to throw in one plug scheduling 325 breakout sessions is actually pretty difficult and so we used the Red Hat business optimizer which is an AI constraint solver that's new in the Red Hat decision manager to help us plan the summit because we have individuals who have a clustered set of interests and we want to make sure that when we schedule two breakout sessions we do it in a way that we don't have overlapping sessions that are really important to the same individual so we tried to use this tool and what we understand about people's interest in history of what they wanted to do to try to make sure that we spaced out different times for things of similar interests for similar people as well as for people who stood in the back of breakouts before and I know I've done that too we've also used it to try to optimize room size so hopefully we will do our best to make sure that we've appropriately sized the spaces for those as well so it's really a phenomenal tool and I know it's helped us a lot this year in addition to the 325 breakouts we have a lot of our customers on stage during the main sessions and so you'll see demos you'll hear from partners you'll hear stories from so many of our customers not on our point of view of how to use these technologies but their point of views of how they actually are using these technologies to solve their problems and you'll hear over and over again from those keynotes that it's not just about the technology it's about how people are changing how people are working to innovate to solve those problems and while we're on the subject of people I'd like to take a moment to recognize the Red Hat certified professional of the year this is known award we do every year I love this award because it truly recognizes an individual for outstanding innovation for outstanding ideas for truly standing out in how they're able to help their organization with Red Hat technologies Red Hat certifications help system administrators application developers IT architects to further their careers and help their organizations by being able to advance their skills and knowledge of Red Hat products and this year's winner really truly is a great example about how their curiosity is helped push the limits of what's possible with technology let's hear a little more about this year's winner when I was studying at the University I had computer science as one of my subjects and that's what created the passion from the very beginning they were quite a few institutions around my University who were offering Red Hat Enterprise Linux as a course and a certification paths through to become an administrator Red Hat Learning subscription has offered me a lot more than any other trainings that have done so far that gave me exposure to so many products under red hair technologies that I wasn't even aware of I started to think about the better ways of how these learnings can be put into the real life use cases and we started off with a discussion with my manager saying I have to try this product and I really want to see how it really fits in our environment and that product was Red Hat virtualization we went from deploying rave and then OpenStack and then the open shift environment we wanted to overcome some of the things that we saw as challenges to the speed and rapidity of release and code etc so it made perfect sense and we were able to do it in a really short space of time so you know we truly did use it as an Innovation Lab I think idea is everything ideas can change the way you see things an Innovation Lab was such an idea that popped into my mind one fine day and it has transformed the way we think as a team and it's given that playpen to pretty much everyone to go and test their things investigate evaluate do whatever they like in a non-critical non production environment I recruited Neha almost 10 years ago now I could see there was a spark a potential with it and you know she had a real Drive a real passion and you know here we are nearly ten years later I'm Neha Sandow I am a Red Hat certified engineer all right well everyone please walk into the states to the stage Neha [Music] [Applause] congratulations thank you [Applause] I think that - well welcome to the red has some of this is your first summit yes it is thanks so much well fantastic sure well it's great to have you here I hope you have a chance to engage and share some of your ideas and enjoy the week thank you thank you congratulations [Applause] neha mentioned that she first got interest in open source at university and it made me think red hats recently started our Red Hat Academy program that looks to programmatically infuse Red Hat technologies in universities around the world it's exploded in a way we had no idea it's grown just incredibly rapidly which i think shows the interest that there really is an open source and working in an open way at university so it's really a phenomenal program I'm also excited to announce that we're launching our newest open source story this year at Summit it's called the science of collective discovery and it looks at what happens when communities use open hardware to monitor the environment around them and really how they can make impactful change based on that technologies the rural premier that will be at 5:15 on Wednesday at McMaster Oni West and so please join us for a drink and we'll also have a number of the experts featured in that and you can have a conversation with them as well so with that let's officially start the show please welcome red hat president of products and technology Paul Cormier [Music] Wow morning you know I say it every year I'm gonna say it again I know I repeat myself it's just amazing we are so proud here to be here today too while you all week on how far we've come with opens with open source and with the products that we that we provide at Red Hat so so welcome and I hope the pride shows through so you know I told you Seven Summits ago on this stage that the future would be open and here we are just seven years later this is the 14th summit but just seven years later after that and much has happened and I think you'll see today and this week that that prediction that the world would be open was a pretty safe predict prediction but I want to take you just back a little bit to see how we started here and it's not just how Red Hat started here this is an open source in Linux based computing is now in an industry norm and I think that's what you'll you'll see in here this week you know we talked back then seven years ago when we put on our prediction about the UNIX error and how Hardware innovation with x86 was it was really the first step in a new era of open innovation you know companies like Sun Deck IBM and HP they really changed the world the computing industry with their UNIX models it was that was really the rise of computing but I think what we we really saw then was that single company innovation could only scale so far could really get so far with that these companies were very very innovative but they coupled hardware innovation with software innovation and as one company they could only solve so many problems and even which comp which even complicated things more they could only hire so many people in each of their companies Intel came on the scene back then as the new independent hardware player and you know that was really the beginning of the drive for horizontal computing power and computing this opened up a brand new vehicle for hardware innovation a new hardware ecosystem was built around this around this common hardware base shortly after that Stallman and leanness they had a vision of his of an open model that was created and they created Linux but it was built around Intel this was really the beginning of having a software based platform that could also drive innovation this kind of was the beginning of the changing of the world here that system-level innovation now having a hardware platform that was ubiquitous and a software platform that was open and ubiquitous it really changed this system level innovation and that continues to thrive today it was only possible because it was open this could not have happened in a closed environment it allowed the best ideas from anywhere from all over to come in in win only because it was the best idea that's what drove the rate of innovation at the pace you're seeing today and it which has never been seen before we at Red Hat we saw the need to bring this innovation to solve real-world problems in the enterprise and I think that's going to be the theme of the show today you're going to see us with our customers and partners talking about and showing you some of those real-world problems that we are sought solving with this open innovation we created rel back then for this for the enterprise it started it's it it wasn't successful because it's scaled it was secure and it was enterprise ready it once again changed the industry but this time through open innovation this gave the hardware ecosystem a software platform this open software platform gave the hardware ecosystem a software platform to build around it Unleashed them the hardware side to compete and thrive it enabled innovation from the OEMs new players building cheaper faster servers even new architectures from armed to power sprung up with this change we have seen an incredible amount of hardware innovation over the last 15 years that same innovation happened on the software side we saw powerful implementations of bare metal Linux distributions out in the market in fact at one point there were 300 there are over 300 distributions out in the market on the foundation of Linux powerful open-source equivalents were even developed in every area of Technology databases middleware messaging containers anything you could imagine innovation just exploded around the Linux platform in innovation it's at the core also drove virtualization both Linux and virtualization led to another area of innovation which you're hearing a lot about now public cloud innovation this innovation started to proceed at a rate that we had never seen before we had never experienced this in the past in this unprecedented speed of innovation and software was now possible because you didn't need a chip foundry in order to innovate you just needed great ideas in the open platform that was out there customers seeing this innovation in the public cloud sparked it sparked their desire to build their own linux based cloud platforms and customers are now are now bringing that cloud efficiency on-premise in their own data centers public clouds demonstrated so much efficiency the data centers and architects wanted to take advantage of it off premise on premise I'm sorry within their own we don't within their own controlled environments this really allowed companies to make the most of existing investments from data centers to hardware they also gained many new advantages from data sovereignty to new flexible agile approaches I want to bring Burr and his team up here to take a look at what building out an on-premise cloud can look like today Bure take it away I am super excited to be with all of you here at Red Hat summit I know we have some amazing things to show you throughout the week but before we dive into this demonstration I want you to take just a few seconds just a quick moment to think about that really important event your life that moment you turned on your first computer maybe it was a trs-80 listen Claire and Atari I even had an 83 b2 at one point but in my specific case I was sitting in a classroom in Hawaii and I could see all the way from Diamond Head to Pearl Harbor so just keep that in mind and I turn on an IBM PC with dual floppies I don't remember issuing my first commands writing my first level of code and I was totally hooked it was like a magical moment and I've been hooked on computers for the last 30 years so I want you to hold that image in your mind for just a moment just a second while we show you the computers we have here on stage let me turn this over to Jay fair and Dini here's our worldwide DevOps manager and he was going to show us his hardware what do you got Jay thank you BER good morning everyone and welcome to Red Hat summit we have so many cool things to show you this week I am so happy to be here and you know my favorite thing about red hat summit is our allowed to kind of share all of our stories much like bird just did we also love to you know talk about the hardware and the technology that we brought with us in fact it's become a bit of a competition so this year we said you know let's win this thing and we actually I think we might have won we brought a cloud with us so right now this is a private cloud for throughout the course of the week we're going to turn this into a very very interesting open hybrid cloud right before your eyes so everything you see here will be real and happening right on this thing right behind me here so thanks for our four incredible partners IBM Dell HP and super micro we've built a very vendor heterogeneous cloud here extra special thanks to IBM because they loaned us a power nine machine so now we actually have multiple architectures in this cloud so as you know one of the greatest benefits to running Red Hat technology is that we run on just about everything and you know I can't stress enough how powerful that is how cost-effective that is and it just makes my life easier to be honest so if you're interested the people that built this actual rack right here gonna be hanging out in the customer success zone this whole week it's on the second floor the lobby there and they'd be glad to show you exactly how they built this thing so let me show you what we actually have in this rack so contained in this rack we have 1056 physical chorus right here we have five and a half terabytes of RAM and just in case we threw 50 terabytes of storage in this thing so burr that's about two million times more powerful than that first machine you boot it up thanks to a PC we're actually capable of putting all the power needs and cooling right in this rack so there's your data center right there you know it occurred to me last night that I can actually pull the power cord on this thing and kick it up a notch we could have the world's first mobile portable hybrid cloud so I'm gonna go ahead and unplug no no no no no seriously it's not unplug the thing we got it working now well Berg gets a little nervous but next year we're rolling this thing around okay okay so to recap multiple vendors check multiple architectures check multiple public clouds plug right into this thing check and everything everywhere is running the same software from Red Hat so that is a giant check so burn Angus why don't we get the demos rolling awesome so we have totally we have some amazing hardware amazing computers on this stage but now we need to light it up and we have Angus Thomas who represents our OpenStack engineering team and he's going to show us what we can do with this awesome hardware Angus thank you Beth so this was an impressive rack of hardware to Joe has bought a pocket stage what I want to talk about today is putting it to work with OpenStack platform director we're going to turn it from a lot of potential into a flexible scalable private cloud we've been using director for a while now to take care of managing hardware and orchestrating the deployment of OpenStack what's new is that we're bringing the same capabilities for on-premise manager the deployment of OpenShift director deploying OpenShift in this way is the best of both worlds it's bare-metal performance but with an underlying infrastructure as a service that can take care of deploying in new instances and scaling out and a lot of the things that we expect from a cloud provider director is running on a virtual machine on Red Hat virtualization at the top of the rack and it's going to bring everything else under control what you can see on the screen right now is the director UI and as you see some of the hardware in the rack is already being managed at the top level we have information about the number of cores in the amount of RAM and the disks that each machine have if we dig in a bit there's information about MAC addresses and IPs and the management interface the BIOS kernel version dig a little deeper and there is information about the hard disks all of this is important because we want to be able to make sure that we put in workloads exactly where we want them Jay could you please power on the two new machines at the top of the rack sure all right thank you so when those two machines come up on the network director is going to see them see that they're new and not already under management and is it immediately going to go into the hardware inspection that populates this database and gets them ready for use so we also have profiles as you can see here profiles are the way that we match the hardware in a machine to the kind of workload that it's suited to this is how we make sure that machines that have all the discs run Seth and machines that have all the RAM when our application workouts for example there's two ways these can be set when you're dealing with a rack like this you could go in an individually tag each machine but director scales up to data centers so we have a rules matching engine which will automatically take the hardware profile of a new machine and make sure it gets tagged in exactly the right way so we can automatically discover new machines on the network and we can automatically match them to a profile that's how we streamline and scale up operations now I want to talk about deploying the software we have a set of validations we've learned over time about the Miss configurations in the underlying infrastructure which can cause the deployment of a multi node distributed application like OpenStack or OpenShift to fail if you have the wrong VLAN tags on a switch port or DHCP isn't running where it should be for example you can get into a situation which is really hard to debug a lot of our validations actually run before the deployment they look at what you're intending to deploy and they check in the environment is the way that it should be and they'll preempts problems and obviously preemption is a lot better than debugging something new that you probably have not seen before is director managing multiple deployments of different things side by side before we came out on stage we also deployed OpenStack on this rack just to keep me honest let me jump over to OpenStack very quickly a lot of our opens that customers will be familiar with this UI and the bare metal deployment of OpenStack on our rack is actually running a set of virtual machines which is running Gluster you're going to see that put to work later on during the summit Jay's gone to an awful lot effort to get this Hardware up on the stage so we're going to use it as many different ways as we can okay let's deploy OpenShift if I switch over to the deployed a deployment plan view there's a few steps first thing you need to do is make sure we have the hardware I already talked about how director manages hardware it's smart enough to make sure that it's not going to attempt to deploy into machines they're already in use it's only going to deploy on machines that have the right profile but I think with the rack that we have here we've got enough next thing is the deployment configuration this is where you get to customize exactly what's going to be deployed to make sure that it really matches your environment if they're external IPs for additional services you can set them here whatever it takes to make sure that the deployment is going to work for you as you can see on the screen we have a set of options around enable TLS for encryption network traffic if I dig a little deeper there are options around enabling ipv6 and network isolation so that different classes of traffic there are over different physical NICs okay then then we have roles now roles this is essentially about the software that's going to be put on each machine director comes with a set of roles for a lot of the software that RedHat supports and you can just use those or you can modify them a little bit if you need to add a monitoring agent or whatever it might be or you can create your own custom roles director has quite a rich syntax for custom role definition and custom Network topologies whatever it is you need in order to make it work in your environment so the rawls that we have right now are going to give us a working instance of openshift if I go ahead and click through the validations are all looking green so right now I can click the button start to the deploy and you will see things lighting up on the rack directors going to use IPMI to reboot the machines provisioned and with a trail image was the containers on them and start up the application stack okay so one last thing once the deployment is done you're going to want to keep director around director has a lot of capabilities around what we call de to operational management bringing in new Hardware scaling out deployments dealing with updates and critically doing upgrades as well so having said all of that it is time for me to switch over to an instance of openshift deployed by a director running on bare metal on our rack and I need to hand this over to our developer team so they can show what they can do it thank you that is so awesome Angus so what you've seen now is going from bare metal to the ultimate private cloud with OpenStack director make an open shift ready for our developers to build their next generation applications thank you so much guys that was totally awesome I love what you guys showed there now I have the honor now I have the honor of introducing a very special guest one of our earliest OpenShift customers who understands the necessity of the private cloud inside their organization and more importantly they're fundamentally redefining their industry please extend a warm welcome to deep mar Foster from Amadeus well good morning everyone a big thank you for having armadillos here and myself so as it was just set I'm at Mario's well first of all we are a large IT provider in the travel industry so serving essentially Airlines hotel chains this distributors like Expedia and others we indeed we started very early what was OpenShift like a bit more than three years ago and we jumped on it when when Retta teamed with Google to bring in kubernetes into this so let me quickly share a few figures about our Mario's to give you like a sense of what we are doing and the scale of our operations so some of our key KPIs one of our key metrics is what what we call passenger borders so that's the number of customers that physically board a plane over the year so through our systems it's roughly 1.6 billion people checking in taking the aircrafts on under the Amarillo systems close to 600 million travel agency bookings virtually all airlines are on the system and one figure I want to stress out a little bit is this one trillion availability requests per day that's when I read this figure my mind boggles a little bit so this means in continuous throughput more than 10 million hits per second so of course these are not traditional database transactions it's it's it's highly cached in memory and these applications are running over like more than 100,000 course so it's it's it's really big stuff so today I want to give some concrete feedback what we are doing so I have chosen two applications products of our Mario's that are currently running on production in different in different hosting environments as the theme here is of this talk hybrid cloud and so I want to give some some concrete feedback of how we architect the applications and of course it stays relatively high level so here I have taken one of our applications that is used in the hospitality environment so it's we have built this for a very large US hotel chain and it's currently in in full swing brought into production so like 30 percent of the globe or 5,000 plus hotels are on this platform not so here you can see that we use as the path of course on openshift on that's that's the most central piece of our hybrid cloud strategy on the database side we use Oracle and Couchbase Couchbase is used for the heavy duty fast access more key value store but also to replicate data across two data centers in this case it's running over to US based data centers east and west coast topology that are fit so run by Mario's that are fit with VMware on for the virtualization OpenStack on top of it and then open shift to host and welcome the applications on the right hand side you you see the kind of tools if you want to call them tools that we use these are the principal ones of course the real picture is much more complex but in essence we use terraform to map to the api's of the underlying infrastructure so they are obviously there are differences when you run on OpenStack or the Google compute engine or AWS Azure so some some tweaking is needed we use right at ansible a lot we also use puppet so you can see these are really the big the big pieces of of this sense installation and if we look to the to the topology again very high high level so these two locations basically map the data centers of our customers so they are in close proximity because the response time and the SLA is of this application is are very tight so that's an example of an application that is architectures mostly was high ability and high availability in minds not necessarily full global worldwide scaling but of course it could be scaled but here the idea is that we can swing from one data center to the unit to the other in matters of of minutes both take traffic data is fully synchronized across those data centers and while the switch back and forth is very fast the second example I have taken is what we call the shopping box this is when people go to kayak or Expedia and they're getting inspired where they want to travel to this is really the piece that shoots most of transit of the transactions into our Mario's so we architect here more for high scalability of course availability is also a key but here scaling and geographical spread is very important so in short it runs partially on-premise in our Amarillo Stata Center again on OpenStack and we we deploy it mostly in the first step on the Google compute engine and currently as we speak on Amazon on AWS and we work also together with Retta to qualify the whole show on Microsoft Azure here in this application it's it's the same building blocks there is a large swimming aspect to it so we bring Kafka into this working with records and another partner to bring Kafka on their open shift because at the end we want to use open shift to administrate the whole show so over time also databases and the topology here when you look to the physical deployment topology while it's very classical we use the the regions and the availability zone concept so this application is spread over three principal continental regions and so it's again it's a high-level view with different availability zones and in each of those availability zones we take a hit of several 10,000 transactions so that was it really in very short just to give you a glimpse on how we implement hybrid clouds I think that's the way forward it gives us a lot of freedom and it allows us to to discuss in a much more educated way with our customers that sometimes have already deals in place with one cloud provider or another so for us it's a lot of value to set two to leave them the choice basically what up that was a very quick overview of what we are doing we were together with records are based on open shift essentially here and more and more OpenStack coming into the picture hope you found this interesting thanks a lot and have a nice summer [Applause] thank you so much deeper great great solution we've worked with deep Marv and his team for a long for a long time great solution so I want to take us back a little bit I want to circle back I sort of ended talking a little bit about the public cloud so let's circle back there you know even so even though some applications need to run in various footprints on premise there's still great gains to be had that for running certain applications in the public cloud a public cloud will be as impactful to to the industry as as UNIX era was of computing was but by itself it'll have some of the same limitations and challenges that that model had today there's tremendous cloud innovation happening in the public cloud it's being driven by a handful of massive companies and much like the innovation that sundeck HP and others drove in a you in the UNIX era of community of computing many customers want to take advantage of the best innovation no matter where it comes from buddy but as they even eventually saw in the UNIX era they can't afford the best innovation at the cost of a siloed operating environment with the open community we are building a hybrid application platform that can give you access to the best innovation no matter which vendor or which cloud that it comes from letting public cloud providers innovate and services beyond what customers or anyone can one provider can do on their own such as large scale learning machine learning or artificial intelligence built on the data that's unique probably to that to that one cloud but consumed in a common way for the end customer across all applications in any environment on any footprint in in their overall IT infrastructure this is exactly what rel brought brought to our customers in the UNIX era of computing that consistency across any of those footprints obviously enterprises will have applications for all different uses some will live on premise some in the cloud hybrid cloud is the only practical way forward I think you've been hearing that from us for a long time it is the only practical way forward and it'll be as impactful as anything we've ever seen before I want to bring Byrne his team back to see a hybrid cloud deployment in action burr [Music] all right earlier you saw what we did with taking bare metal and lighting it up with OpenStack director and making it openshift ready for developers to build their next generation applications now we want to show you when those next turn and generation applications and what we've done is we take an open shift and spread it out and installed it across Asia and Amazon a true hybrid cloud so with me on stage today as Ted who's gonna walk us through an application and Brent Midwood who's our DevOps engineer who's gonna be making sure he's monitoring on the backside that we do make sure we do a good job so at this point Ted what have you got for us Thank You BER and good morning everybody this morning we are running on the stage in our private cloud an application that's providing its providing fraud detection detect serves for financial transactions and our customer base is rather large and we occasionally take extended bursts of traffic of heavy traffic load so in order to keep our latency down and keep our customers happy we've deployed extra service capacity in the public cloud so we have capacity with Microsoft Azure in Texas and with Amazon Web Services in Ohio so we use open chip container platform on all three locations because openshift makes it easy for us to deploy our containerized services wherever we want to put them but the question still remains how do we establish seamless communication across our entire enterprise and more importantly how do we balance the workload across these three locations in such a way that we efficiently use our resources and that we give our customers the best possible experience so this is where Red Hat amq interconnect comes in as you can see we've deployed a MQ interconnect alongside our fraud detection applications in all three locations and if I switch to the MQ console we'll see the topology of the app of the network that we've created here so the router inside the on stage here has made connections outbound to the public routers and AWS and Azure these connections are secured using mutual TLS authentication and encrypt and once these connections are established amq figures out the best way auda matically to route traffic to where it needs to get to so what we have right now is a distributed reliable broker list message bus that expands our entire enterprise now if you want to learn more about this make sure that you catch the a MQ breakout tomorrow at 11:45 with Jack Britton and David Ingham let's have a look at the message flow and we'll dive in and isolate the fraud detection API that we're interested in and what we see is that all the traffic is being handled in the private cloud that's what we expect because our latencies are low and they're acceptable but now if we take a little bit of a burst of increased traffic we're gonna see that an EQ is going to push a little a bi traffic out onto the out to the public cloud so as you're picking up some of the load now to keep the Layton sees down now when that subsides as your finishes up what it's doing and goes back offline now if we take a much bigger load increase you'll see two things first of all asher is going to take a bigger proportion than it did before and Amazon Web Services is going to get thrown into the fray as well now AWS is actually doing less work than I expected it to do I expected a little bit of bigger a slice there but this is a interesting illustration of what's going on for load balancing mq load balancing is sending requests to the services that have the lowest backlog and in order to keep the Layton sees as steady as possible so AWS is probably running slowly for some reason and that's causing a and Q to push less traffic its way now the other thing you're going to notice if you look carefully this graph fluctuate slightly and those fluctuations are caused by all the variances in the network we have the cloud on stage and we have clouds in in the various places across the country there's a lot of equipment locked layers of virtualization and networking in between and we're reacting in real-time to the reality on the digital street so BER what's the story with a to be less I noticed there's a problem right here right now we seem to have a little bit performance issue so guys I noticed that as well and a little bit ago I actually got an alert from red ahead of insights letting us know that there might be some potential optimizations we could make to our environment so let's take a look at insights so here's the Red Hat insights interface you can see our three OpenShift deployments so we have the set up here on stage in San Francisco we have our Azure deployment in Texas and we also have our AWS deployment in Ohio and insights is highlighting that that deployment in Ohio may have some issues that need some attention so Red Hat insights collects anonymized data from manage systems across our customer environment and that gives us visibility into things like vulnerabilities compliance configuration assessment and of course Red Hat subscription consumption all of this is presented in a SAS offering so it's really really easy to use it requires minimal infrastructure upfront and it provides an immediate return on investment what insights is showing us here is that we have some potential issues on the configuration side that may need some attention from this view I actually get a look at all the systems in our inventory including instances and containers and you can see here on the left that insights is highlighting one of those instances as needing some potential attention it might be a candidate for optimization this might be related to the issues that you were seeing just a minute ago insights uses machine learning and AI techniques to analyze all collected data so we combine collected data from not only the system's configuration but also with other systems from across the Red Hat customer base this allows us to compare ourselves to how we're doing across the entire set of industries including our own vertical in this case the financial services industry and we can compare ourselves to other customers we also get access to tailored recommendations that let us know what we can do to optimize our systems so in this particular case we're actually detecting an issue here where we are an outlier so our configuration has been compared to other configurations across the customer base and in this particular instance in this security group were misconfigured and so insights actually gives us the steps that we need to use to remediate the situation and the really neat thing here is that we actually get access to a custom ansible playbook so if we want to automate that type of a remediation we can use this inside of Red Hat ansible tower Red Hat satellite Red Hat cloud forms it's really really powerful the other thing here is that we can actually apply these recommendations right from within the Red Hat insights interface so with just a few clicks I can select all the recommendations that insights is making and using that built-in ansible automation I can apply those recommendations really really quickly across a variety of systems this type of intelligent automation is really cool it's really fast and powerful so really quickly here we're going to see the impact of those changes and so we can tell that we're doing a little better than we were a few minutes ago when compared across the customer base as well as within the financial industry and if we go back and look at the map we should see that our AWS employment in Ohio is in a much better state than it was just a few minutes ago so I'm wondering Ted if this had any effect and might be helping with some of the issues that you were seeing let's take a look looks like went green now let's see what it looks like over here yeah doesn't look like the configuration is taking effect quite yet maybe there's some delay awesome fantastic the man yeah so now we're load balancing across the three clouds very much fantastic well I have two minute Ted I truly love how we can route requests and dynamically load transactions across these three clouds a truly hybrid cloud native application you guys saw here on on stage for the first time and it's a fully portable application if you build your applications with openshift you can mover from cloud to cloud to cloud on stage private all the way out to the public said it's totally awesome we also have the application being fully managed by Red Hat insights I love having that intelligence watching over us and ensuring that we're doing everything correctly that is fundamentally awesome thank you so much for that well we actually have more to show you but you're going to wait a few minutes longer right now we'd like to welcome Paul back to the stage and we have a very special early Red Hat customer an Innovation Award winner from 2010 who's been going boldly forward with their open hybrid cloud strategy please give a warm welcome to Monty Finkelstein from Citigroup [Music] [Music] hi Marty hey Paul nice to see you thank you very much for coming so thank you for having me Oh our pleasure if you if you wanted to we sort of wanted to pick your brain a little bit about your experiences and sort of leading leading the charge in computing here so we're all talking about hybrid cloud how has the hybrid cloud strategy influenced where you are today in your computing environment so you know when we see the variable the various types of workload that we had an hour on from cloud we see the peaks we see the valleys we see the demand on the environment that we have we really determined that we have to have a much more elastic more scalable capability so we can burst and stretch our environments to multiple cloud providers these capabilities have now been proven at City and of course we consider what the data risk is as well as any regulatory requirement so how do you how do you tackle the complexity of multiple cloud environments so every cloud provider has its own unique set of capabilities they have they're own api's distributions value-added services we wanted to make sure that we could arbitrate between the different cloud providers maintain all source code and orchestration capabilities on Prem to drive those capabilities from within our platforms this requires controlling the entitlements in a cohesive fashion across our on Prem and Wolfram both for security services automation telemetry as one seamless unit can you talk a bit about how you decide when you to use your own on-premise infrastructure versus cloud resources sure so there are multiple dimensions that we take into account right so the first dimension we talk about the risk so low risk - high risk and and really that's about the data classification of the environment we're talking about so whether it's public or internal which would be considered low - ooh confidential PII restricted sensitive and so on and above which is really what would be considered a high-risk the second dimension would be would focus on demand volatility and responsiveness sensitivity so this would range from low response sensitivity and low variability of the type of workload that we have to the high response sensitivity and high variability of the workload the first combination that we focused on is the low risk and high variability and high sensitivity for response type workload of course any of the workloads we ensure that we're regulatory compliant as well as we achieve customer benefits with within this environment so how can we give developers greater control of their their infrastructure environments and still help operations maintain that consistency in compliance so the main driver is really to use the public cloud is scale speed and increased developer efficiencies as well as reducing cost as well as risk this would mean providing develop workspaces and multiple environments for our developers to quickly create products for our customers all this is done of course in a DevOps model while maintaining the source and artifacts registry on-prem this would allow our developers to test and select various middleware products another product but also ensure all the compliance activities in a centrally controlled repository so we really really appreciate you coming by and sharing that with us today Monte thank you so much for coming to the red echo thanks a lot thanks again tamati I mean you know there's these real world insight into how our products and technologies are really running the businesses today that's that's just the most exciting part so thank thanks thanks again mati no even it with as much progress as you've seen demonstrated here and you're going to continue to see all week long we're far from done so I want to just take us a little bit into the path forward and where we we go today we've talked about this a lot innovation today is driven by open source development I don't think there's any question about that certainly not in this room and even across the industry as a whole that's a long way that we've come from when we started our first summit 14 years ago with over a million open source projects out there this unit this innovation aggregates into various community platforms and it finally culminates in commercial open source based open source developed products these products run many of the mission-critical applications in business today you've heard just a couple of those today here on stage but it's everywhere it's running the world today but to make customers successful with that interact innovation to run their real-world business applications these open source products have to be able to leverage increase increasingly complex infrastructure footprints we must also ensure a common base for the developer and ultimately the application no matter which footprint they choose as you heard mati say the developers want choice here no matter which no matter which footprint they are ultimately going to run their those applications on they want that flexibility from the data center to possibly any public cloud out there in regardless of whether that application was built yesterday or has been running the business for the last 10 years and was built on 10-year old technology this is the flexibility that developers require today but what does different infrastructure we may require different pieces of the technical stack in that deployment one example of this that Effects of many things as KVM which provides the foundation for many of those use cases that require virtualization KVM offers a level of consistency from a technical perspective but rel extends that consistency to add a level of commercial and ecosystem consistency for the application across all those footprints this is very important in the enterprise but while rel and KVM formed the foundation other technologies are needed to really satisfy the functions on these different footprints traditional virtualization has requirements that are satisfied by projects like overt and products like Rev traditional traditional private cloud implementations has requirements that are satisfied on projects like OpenStack and products like Red Hat OpenStack platform and as applications begin to become more container based we are seeing many requirements driven driven natively into containers the same Linux in different forms provides this common base across these four footprints this level of compatible compatibility is critical to operators who must best utilize the infinite must better utilize secure and deploy the infrastructure that they have and they're responsible for developers on the other hand they care most about having a platform that can creates that consistency for their applications they care about their services and the services that they need to consume within those applications and they don't want limitations on where they run they want service but they want it anywhere not necessarily just from Amazon they want integration between applications no matter where they run they still want to run their Java EE now named Jakarta EE apps and bring those applications forward into containers and micro services they need able to orchestrate these frameworks and many more across all these different footprints in a consistent secure fashion this creates natural tension between development and operations frankly customers amplify this tension with organizational boundaries that are holdover from the UNIX era of computing it's really the job of our platforms to seamlessly remove these boundaries and it's the it's the goal of RedHat to seamlessly get you from the old world to the new world we're gonna show you a really cool demo demonstration now we're gonna show you how you can automate this transition first we're gonna take a Windows virtual machine from a traditional VMware deployment we're gonna convert it into a KVM based virtual machine running in a container all under the kubernetes umbrella this makes virtual machines more access more accessible to the developer this will accelerate the transformation of those virtual machines into cloud native container based form well we will work this prot we will worked as capability over the product line in the coming releases so we can strike the balance of enabling our developers to move in this direction we want to be able to do this while enabling mission-critical operations to still do their job so let's bring Byrne his team back up to show you this in action for one more thanks all right what Red Hat we recognized that large organizations large enterprises have a substantial investment and legacy virtualization technology and this is holding you back you have thousands of virtual machines that need to be modernized so what you're about to see next okay it's something very special with me here on stage we have James Lebowski he's gonna be walking us through he's represents our operations folks and he's gonna be walking us through a mass migration but also is Itamar Hine who's our lead developer of a very special application and he's gonna be modernizing container izing and optimizing our application all right so let's get started James thanks burr yeah so as you can see I have a typical VMware environment here I'm in the vSphere client I've got a number of virtual machines a handful of them that make up my one of my applications for my development environment in this case and what I want to do is migrate those over to a KVM based right at virtualization environment so what I'm gonna do is I'm gonna go to cloud forms our cloud management platform that's our first step and you know cloud forms actually already has discovered both my rev environment and my vSphere environment and understands the compute network and storage there so you'll notice one of the capabilities we built is this new capability called migrations and underneath here I could begin to there's two steps and the first thing I need to do is start to create my infrastructure mappings what this will allow me to do is map my compute networking storage between vSphere and Rev so cloud forms understands how those relate let's go ahead and create an infrastructure mapping I'll call that summit infrastructure mapping and then I'm gonna begin to map my two environments first the compute so the clusters here next the data stores so those virtual machines happen to live on datastore - in vSphere and I'll target them a datastore data to inside of my revenue Arman and finally my networks those live on network 100 so I'll map those from vSphere to rover so once my infrastructure is map the next step I need to do is actually begin to create a plan to migrate those virtual machines so I'll continue to the plan wizard here I'll select the infrastructure mapping I just created and I'll select migrate my development environment from those virtual machines to Rev and then I need to import a CSV file the CSV file is going to contain a list of all the virtual machines that I want to migrate that were there and that's it once I hit create what's going to happen cloud forms is going to begin in an automated fashion shutting down those virtual machines begin converting them taking care of all the minutia that you'd have to do manually it's gonna do that all automatically for me so I don't have to worry about all those manual interactions and no longer do I have to go manually shut them down but it's going to take care of that all for me you can see the migrations kicked off here this is the I've got the my VMs are migrating here and if I go back to the screen here you can see that we're gonna start seeing those shutdown okay awesome but as people want to know more information about this how would they dive deeper into this technology later this week yeah it's a great question so we have a workload portability session in the hybrid cloud on Wednesday if you want to see a presentation that deep dives into this topic and how some of the methodologies to migrate and then on Thursday we actually have a hands-on lab it's the IT optimization VM migration lab that you can check out and as you can see those are shutting down here yeah we see a powering off right now that's fantastic absolutely so if I go back now that's gonna take a while you got to convert all the disks and move them over but we'll notice is previously I had already run one migration of a single application that was a Windows virtual machine running and if I browse over to Red Hat virtualization I can see on the dashboard here I could browse to virtual machines I have migrated that Windows virtual machine and if I open up a tab I can now browse to my Windows virtual machine which is running our wingtip toy store application our sample application here and now my VM has been moved over from Rev to Vita from VMware to Rev and is available for Itamar all right great available to our developers all right Itamar what are you gonna do for us here well James it's great that you can save cost by moving from VMware to reddit virtualization but I want to containerize our application and with container native virtualization I can run my virtual machine on OpenShift like any other container using Huebert a kubernetes operator to run and manage virtual machines let's look at the open ship service catalog you can see we have a new virtualization section here we can import KVM or VMware virtual machines or if there are already loaded we can create new instances of them for the developer to work with just need to give named CPU memory we can do other virtualization parameters and create our virtual machines now let's see how this looks like in the openshift console the cool thing about KVM is virtual machines are just Linux processes so they can act and behave like other open shipped applications we build in more than a decade of virtualization experience with KVM reddit virtualization and OpenStack and can now benefit from kubernetes and open shift to manage and orchestrate our virtual machines since we know this virtual machine this container is actually a virtual machine we can do virtual machine stuff with it like shutdown reboot or open a remote desktop session to it but we can also see this is just a container like any other container in openshift and even though the web application is running inside a Windows virtual machine the developer can still use open shift mechanisms like services and routes let's browse our web application using the OpenShift service it's the same wingtip toys application but this time the virtual machine is running on open shift but we're not done we want to containerize our application since it's a Windows virtual machine we can open a remote desktop session to it we see we have here Visual Studio and an asp.net application let's start container izing by moving the Microsoft sequel server database from running inside the Windows virtual machine to running on Red Hat Enterprise Linux as an open shipped container we'll go back to the open shipped Service Catalog this time we'll go to the database section and just as easily we'll create a sequel server container just need to accept the EULA provide password and choose the Edition we want and create a database and again we can see the sequel server is just another container running on OpenShift now let's take let's find the connection details for our database to keep this simple we'll take the IP address of our database service go back to the web application to visual studio update the IP address in the connection string publish our application and go back to browse it through OpenShift fortunately for us the user experience team heard we're modernizing our application so they pitched in and pushed new icons to use with our containerized database to also modernize the look and feel it's still the same wingtip toys application it's running in a virtual machine on openshift but it's now using a containerized database to recap we saw that we can run virtual machines natively on openshift like any other container based application modernize and mesh them together we containerize the database but we can use the same approach to containerize any part of our application so some items here to deserve repeating one thing you saw is Red Hat Enterprise Linux burning sequel server in a container on open shift and you also saw Windows VM where the dotnet native application also running inside of open ships so tell us what's special about that that seems pretty crazy what you did there exactly burr if we take a look under the hood we can use the kubernetes commands to see the list of our containers in this case the sequel server and the virtual machine containers but since Q Bert is a kubernetes operator we can actually use kubernetes commands like cube Cpl to list our virtual machines and manage our virtual machines like any other entity in kubernetes I love that so there's your crew meta gem oh we can see the kind says virtual machine that is totally awesome now people here are gonna be very excited about what they just saw we're gonna get more information and when will this be coming well you know what can they do to dive in this will be available as part of reddit Cloud suite in tech preview later this year but we are looking for early adopters now so give us a call also come check our deep dive session introducing container native virtualization Thursday 2:00 p.m. awesome that is so incredible so we went from the old to the new from the close to the open the Red Hat way you're gonna be seeing more from our demonstration team that's coming Thursday at 8 a.m. do not be late if you like what you saw this today you're gonna see a lot more of that going forward so we got some really special things in store for you so at this point thank you so much in tomorrow thank you so much you guys are awesome yeah now we have one more special guest a very early adopter of Red Hat Enterprise Linux we've had over a 12-year partnership and relationship with this organization they've been a steadfast Linux and middleware customer for many many years now please extend a warm welcome to Raj China from the Royal Bank of Canada thank you thank you it's great to be here RBC is a large global full-service is back we have the largest bank in Canada top 10 global operate in 30 countries and run five key business segments personal commercial banking investor in Treasury services capital markets wealth management and insurance but honestly unless you're in the banking segment those five business segments that I just mentioned may not mean a lot to you but what you might appreciate is the fact that we've been around in business for over 150 years we started our digital transformation journey about four years ago and we are focused on new and innovative technologies that will help deliver the capabilities and lifestyle our clients are looking for we have a very simple vision and we often refer to it as the digitally enabled bank of the future but as you can appreciate transforming a hundred fifty year old Bank is not easy it certainly does not happen overnight to that end we had a clear unwavering vision a very strong innovation agenda and most importantly a focus towards a flawless execution today in banking business strategy and IT strategy are one in the same they are not two separate things we believe that in order to be the number one bank we have to have the number one tactic there is no question that most of today's innovations happens in the open source community RBC relies on RedHat as a key partner to help us consume these open source innovations in a manner that it meets our enterprise needs RBC was an early adopter of Linux we operate one of the largest footprints of rel in Canada same with tables we had tremendous success in driving cost out of infrastructure by partnering with rahat while at the same time delivering a world-class hosting service to your business over our 12 year partnership Red Hat has proven that they have mastered the art of working closely with the upstream open source community understanding the needs of an enterprise like us in delivering these open source innovations in a manner that we can consume and build upon we are working with red hat to help increase our agility and better leverage public and private cloud offerings we adopted virtualization ansible and containers and are excited about continuing our partnership with Red Hat in this journey throughout this journey we simply cannot replace everything we've had from the past we have to bring forward these investments of the past and improve upon them with new and emerging technologies it is about utilizing emerging technologies but at the same time focusing on the business outcome the business outcome for us is serving our clients and delivering the information that they are looking for whenever they need it and in whatever form factor they're looking for but technology improvements alone are simply not sufficient to do a digital transformation creating the right culture of change and adopting new methodologies is key we introduced agile and DevOps which has boosted the number of adult projects at RBC and increase the frequency at which we do new releases to our mobile app as a matter of fact these methodologies have enabled us to deliver apps over 20x faster than before the other point about around culture that I wanted to mention was we wanted to build an engineering culture an engineering culture is one which rewards curiosity trying new things investing in new technologies and being a leader not necessarily a follower Red Hat has been a critical partner in our journey to date as we adopt elements of open source culture in engineering culture what you seen today about red hearts focus on new technology innovations while never losing sight of helping you bring forward the investments you've already made in the past is something that makes Red Hat unique we are excited to see red arts investment in leadership in open source technologies to help bring the potential of these amazing things together thank you that's great the thing you know seeing going from the old world to the new with automation so you know the things you've seen demonstrated today they're they're they're more sophisticated than any one company could ever have done on their own certainly not by using a proprietary development model because of this it's really easy to see why open source has become the center of gravity for enterprise computing today with all the progress open-source has made we're constantly looking for new ways of accelerating that into our products so we can take that into the enterprise with customers like these that you've met what you've met today now we recently made in addition to the Red Hat family we brought in core OS to the Red Hat family and you know adding core OS has really been our latest move to accelerate that innovation into our products this will help the adoption of open shift container platform even deeper into the enterprise and as we did with the Linux core platform in 2002 this is just exactly what we did with with Linux back then today we're announcing some exciting new technology directions first we'll integrate the benefits of automated operations so for example you'll see dramatic improvements in the automated intelligence about the state of your clusters in OpenShift with the core OS additions also as part of open shift will include a new variant of rel called Red Hat core OS maintaining the consistency of rel farhat for the operation side of the house while allowing for a consumption of over-the-air updates from the kernel to kubernetes later today you'll hear how we are extending automated operations beyond customers and even out to partners all of this starting with the next release of open shift in July now all of this of course will continue in an upstream open source innovation model that includes continuing container linux for the community users today while also evolving the commercial products to bring that innovation out to the enterprise this this combination is really defining the platform of the future everything we've done for the last 16 years since we first brought rel to the commercial market because get has been to get us just to this point hybrid cloud computing is now being deployed multiple times in enterprises every single day all powered by the open source model and powered by the open source model we will continue to redefine the software industry forever no in 2002 with all of you we made Linux the choice for enterprise computing this changed the innovation model forever and I started the session today talking about our prediction of seven years ago on the future being open we've all seen so much happen in those in those seven years we at Red Hat have celebrated our 25th anniversary including 16 years of rel and the enterprise it's now 2018 open hybrid cloud is not only a reality but it is the driving model in enterprise computing today and this hybrid cloud world would not even be possible without Linux as a platform in the open source development model a build around it and while we have think we may have accomplished a lot in that time and we may think we have changed the world a lot we have but I'm telling you the best is yet to come now that Linux and open source software is firmly driving that innovation in the enterprise what we've accomplished today and up till now has just set the stage for us together to change the world once again and just as we did with rel more than 15 years ago with our partners we will make hybrid cloud the default in the enterprise and I will take that bet every single day have a great show and have fun watching the future of computing unfold right in front of your eyes see you later [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] anytime [Music]

from Austin Texas it's the cube covering cube con and cloud native con 2017 brought to you by Red Hat the Lenox foundations and the cubes ecosystem partners hello everyone welcome to the cube live in Austin Texas for exclusive coverage of cloud native conference and cube con cube con with the linux foundation on john fourier co-founder silicon angle media tube Minutemen with ricky bond and also covering the developer community we just came off Amazon reinvent last week we're now in Austin Texas for a continuation of the Builder theme around this new generation of developers exclusive coverage of cloud native con and cube con or cube cons to cube con like kubernetes john byrne not to be confused with the cube of course when 2018 we're gonna do cube con right John yeah so cube con is coming to check for local listings around an area near you will be will be there stew what a great event I love this events one of my favorite events as you know personally for the cube audience out there and who know us I've been following us we've been growing up with this community we've been covering the Linux Foundation from the beginning if you go back to our roots around 2010 we've always been on the next wave whether it was big date of the converge infrastructure on the enterprise and then cloud the cube is always on the wave and then wave and we call that we were there when kubernetes was formed we were there with the principles JJ when and his team cuz Maddock with blue Tucker kind of brain so me hey we should do kubernetes and we said then kubernetes would be huge it would be the orchestration that would be the battleground in what we were at the time calling the middleware of the cloud turns out that was true that is happening huge change in the ecosystem as containerization with docker originally starting it and then the evolution of how software developers are voting with their workloads they're voting with their code and no better place than the Linux Foundation to your analysis obviously we're super excited but there's some dynamics going on there's a class of venture backed companies that I won't say are groping for a strategic position are certainly investing in open source but brings up the questions of the business model where's the value being created what is the right strategy do I do services do I have a different approach there's a lot of different opinions and if the customers choose wrong they could be on the wrong side of history as this massive wave of innovation with AI machine learning is impacting infrastructure and DevOps it's awesome we heard Netflix on stage let's do what's your take what's going on here cloud native cons yeah so so John I love you know Dan who were you know runs the CN CF gets out on stage and he says you know it's exciting time for boring infrastructure maybe maybe too exciting I even said you know we've been watching this wave of you know containerization and kubernetes and this whole CN CF ecosystem has really taken you know that container piece and exploded beyond this really talking about how I build for these cloud native environments you know there's 14 projects here kubernetes is the one that kicked it off but so many pieces of what's happening here john AWS last week phenomenal like 45,000 people a lot of the real builders the ones you know heavily involved in projects or like ah I actually might skip AWS come to come to coop con this coop con this is where you know so many people we've seen you know founders of companies working on so many projects you know large community you know great community focus I know you like Netflix up there talking about culture big diversity I think what was it 130 scholarships for people of diversity there so really phenomenal stuff you know this is where really that multi-cloud world is being built yeah and good points too because that's really the elephant in the room which is the prophets and the monetization of developer communities is not the primary but it's a big driver and how people are behaving and Amazon reinvent in this world are parallel universes you know it's interesting you don't see a lot of reinvent hoodies I wore mine last night got a couple dirty looks but this is you see a lot of Google you see a lot of Microsoft John John John we have Adrian Cockcroft was in the keynote this morning everybody's saying we're braising the databases here you don't think that's the case I think everyone does embrace it isn't number one isn't really no second place they're far back as I said at reinvent I still stand by that but you got big players okay dan cohen basically said on stage okay it's my projects products and profits and they're putting profits actually in the narrative because they're not shying away from soup but it's not a pay-to-play kind of ecosystem here it's like saying look at the visibility of the cloud has shine the light on the fact that there is an opportunity to create value of which value then can be translated to monetization and developers like to get paid no one likes that do things totally for free that is the scoreboard of value it's not just about chasing the dollar and I think I like how the CN CF is putting out the prophets saying look at this real value here in businesses is real value in products that come from these projects this is a new era and open source I think that's legit again pay-to-play is a completely different animal yeah vendors come in control the standards pay pay pay not anymore Brendan burns told me last year Microsoft no pay to play Microsoft's got a big platform they're gonna come in and make things happen ok so John the money thing is a big question I have coming into this week dan talked up on stage there's certified service providers for kubernetes and there's certified kubernetes partners 42 certified kubernetes partners for the most part kubernetes has been commoditized today that certification doesn't mean that hundred-percent everything works but it definitely over a you know short period of time it will be means that I if I choose any platform that uses kubernetes that certified I can move from one to the other it doesn't mean that I'm actually going to make money selling kubernetes it's that that's part of the platform or services that arm offering and it is an enabler and you know that's what's a little different you think about you know John we try for years OpenStack thought we were gonna make money on it how we're gonna make money even go back to Linux you know it's what can be built using this set of tools so people have said this is really rebuilding the analytics for the cloud environment but money is kind of its derivative off of it it's an enabler to are there great software it brilliants dude this is the bottom line here it's the tale of two stories in the industry okay this in the backdrop is this and if prices are an IT specifically in development teams platforms are shifting big time the old is an old guard as Andy Jackson said the invest in a new guard the dynamics are containerization drove megatrend number one that turbocharged the cloud infrastructure and gave developers some freedom micro-services then take it to another level what it's actually done has changed at two theaters in the industry theater one is the vendors that are getting funded that participants in open source work trying to create value and then what I would call the rest of the market there is an onboarding a tsunami of new developers coming in I'm seeing in the in theater one all the people that we know in the industry and then I'm seeing new faces these are people who are going to the light the light is the monetization and that's the value creation so you seeing people here for the first time you're seeing developers who have a clear line of sight that this community creates value so that's two dynamics so that the companies that got a hundred million dollars in funding from venture capitals they're trying to figure out can they take advantage of that wave of new developers there's been an in migration into cloud native of new developers and these are the ones they're going to be creating the value the creativity the solutions and certainly the cultural impact from those solutions will be great I see a great opportunity if people just don't get scared and just hold the line keep your hitting value it'll figure itself out so the evolution is natural and that is something I'm interesting to see okay and John the thing I'm looking for this week first of all when we talked about containers we talked about this whole cloud native environment that boring infrastructure stuff it still matters networking has matured a little bit there's the CNI initiative the cloud native I'm sorry container networking interface which is approaching one auto they're getting feedback here second one is storage most of the these solutions we really started talking about stateless environments state absolutely has to be a piece of this how do we fit you know you know data AI ml all these things data is critically critically important so that needs to be there and then the new technology that you know we spent a lot of time talking about at AWS that was serverless and there's actually like a half day track here at this show talking about how all of these solutions how serverless fits into them there was a question does serverless replace the because I don't need to think about it really a lot of the same tooling a lot of these usage will fit into those server lists frameworks so it's not in either/or but really more of an an environment but definitely something that we expect to hear more of this we've done we've got a phenomenal lineup I'm super excited did you know some of these builders that we've got you know big players we've got startups we've got authors we've got a good diverse audience coming on the cube so and you know I know near and dear to your heart you know lots of developer talk a lot of their over talks do this is a fun time the commoditization of kubernetes is actually a good thing in my mind I think there will be a lot of value to be created and this really is about multi cloud you mentioned all three of the major clouds and now Maurice are all a bob on stage just in China you got a lot more growth you're seeing that kubernetes really is an opportunity for Google and Microsoft and the rest of the community to run as fast as they can to create services so that customers can have a choice choice is the new black that's what's going on and multi-cloud not yet here but certainly on the horizon and if Google and Azure do not establish a mike-mike multi cloud environment Amazon could run away with it that's my that's my tag that's my visibility on it the bottom line is whoever can creates the value so what I'm gonna look for is the impact of the continued kubernetes kinda monetization and the new formations do the new relationships the existing players like red hat are going to continue to kick ass you're gonna start to see new players come in you can expect to see new partnerships because the stack is being developed very fast smooth announcements for me theists flew and deke container D Windows support coming with 1.9 kubernetes what's happening is they're running as fast as they can they're pedaling as fast as they can because if they do not they will be blown away that's the cube coverage here kicking off day one I'm John Purdue minimun exciting times here at cloud native and cube on back after this short break

>> Narrator: It's theCube, covering Sapphire Now 2017, brought to you by SAP Cloud Platform and Hana Enterprise Cloud. >> Hi, welcome to theCube, I'm Lisa Martin, with my cohost George Gilbert, we are covering SAP Sapphire Now 2017. George, we've just watched the keynote, the very dynamic keynote with quite a few characters, I want to get your take on some of the things we heard in the keynote today, Bill McDermot kicked it off very lively, one of the first things that was interesting to me, and I'd love to get your opinion, that the journey to the club requires empathy and transparency. It's not often something that we hear from an CEO. What were your thoughts on his vision as to what SAP is doing around empathy and transparency. >> I guess I would take it in the soft skills that it might have been intended which was, empathy in that there's going to be changed management, not just because you're moving the operational capabilities from on-prem to the cloud, but because you're exposing new capabilities that will impact how people do their jobs. And transparency I think is part of the program of migration where you're going to break some things as you move them, and this is going to call out in the process of migration what few things you need to change. I think that's what he meant by transparency, because it's not a complete seamless lift and shift. >> Definitely. I think another thing that kind of jumped to mind is that, not only are these firsts changing, they talked about the digital core and the essential elements of that, but also the fact that they are listening to their customers, customers saying we want transparency, we want to see how things are going like you said, it's not a lift and shift, we need to get more understanding, but I think the undertone of we're listening to our customers was quite strong, when they talked about the new SAP Cloud Trust Center, that seemed to really bring it home in terms of what he was talking about, where not just customers of SAP, but that they're using Hana, can see what's happening within their cloud infrastructures, but also people who aren't using it yet, so really broadening transparency to foster new customers, and acquiring new customers going forward. >> Yes, I guess with the transparency, the footprint for enterprise applications is just growing and growing, and he talked about at one point, we're not just talking to the CIO, the CEO has to be involved, the head of sales, head of procurement, head of supply chain, and I think it is related to the idea of the digital core, and then the what they call the sort of win applications around them, which is the core where the traditional systems of record and the win, they're like the AI in machine learning and Internet of Things and Blockchain, these are strategic new capabilities that enable applications, not just about efficiency, but about opening up new business models, new product and service lines, things like that. >> And they talked about, you mentioned, they talked about openness as the game changer with the nucleus of a digital enterprise being that digital core. You talked about machine learning, AI, blockchain, give us a little bit of an insight as to this expansion of Leonardo, they talked a lot about Leonardo, what were some of the things that really stuck out in your mind as the new capabilities, and who's their audience here. >> Okay, great questions, because their audience is not the typical, their typical buyer was the CFO, because it cost so much, so he had to be involved. IT, the CIO, because he had to sort of standardize the infrastructure on which it ran. And then between the two of them, they were essentially putting in a platform for business process efficiency, and that's what they called the core, and then Leonardo is now the win that surrounds that And that has, they see that having transformational capabilities, and that impacts then not just the departments that were looking for efficiency, but looking for transformation, so that's why they have to get involved, the head of sales, the head of procurement, supply chain, things like that. It's a different sell, just to offer an example, the best description I ever heard for trying to sell enterprise software is like trying to get a bill through both houses of congress, and congress just got a lot bigger. >> So from a target audience perspective, we know that they work with small medium sized businesses, Enterprise, we had Google on stage, they're partnering with Apple, with Facebook, etc, looking at Leonardo, from a target audience perspective, are they talking to mostly the large enterprise north of 1500 employees? >> Those customers come first, because they always have the more sophisticated, greater number of more sophisticated skillsets in place, and as these systems mature from the early adopters, they work the kinks out they're able to generalize things better, and then it's more easily absorbed into the main stream. McDermot said something interesting, which was you're either an early adopter or an also ran. I think he's trying to motivate people to get started, but the adoption curve doesn't really change just because we're doing more advanced technologies. >> One of the things that interested me, is if you look at a small to medium business, and they mentioned a number of businesses, Mod Pizza for example, during the intro, and there's a great video about them on their website, but if you look at an SMB or SMBE about, as a competitor, they're much smaller, typically, much more agile, much more nimble, that was one of the things I was sort of expecting to hear in some sense in the keynote about the small enterprises really becoming the disruptors because they can react and move faster than a larger legacy incumbent. What were your thoughts there? >> In Tech we look at the smaller to mid sized companies as being more nimble, but that's changed in the last few years, where the big incumbents, the rich just get richer, partly because, partly because they have these data assets that they can keep turning into newer and newer products. That may change in the next few years, but right now, the more data you have the more your advantage. And the capital intensity is for the most part so low that they can use all their profits just to buy the little guys who look promising. That's in tech, outside tech, I think the answer to your question will be, how easy can SAP make it to absorb and install and implement and run their system. In the past it was so flexible that you really needed extremely sophisticated implementation advice to get it up and running. If they've taken that out and simplified it, and made it like just, you know, configure these buttons, then that would make a difference. I'm not sure we have seen the answer to that yet. >> Okay, playing on the incumbency theme if you will. Google, Diane Green was on stage, and, at Google Cloud Nexus just a couple of months ago here in San Francisco, they announced a partnership with SAP to deliver Hanna on Google Cloud platform, and today they talked about kind of the expansion of that, they had a customer, a consulting agency that was their proof in the pudding. And one of the things Bill McDermot did say was we are now partnering with Apple with Facebook with Google, so they're talking about some of these incumbents, looking at Google as an incumbent, but also as a competitor of Microsoft Azure, of AWS who SAP also works with, what was your take on the conversation that Diane Green had in announcing this expansion and hey here's a consultancy that's leveraging SAP Han into Google Cloud. >> Well Diane Green had to talk about both, because just running SAP on the Google Cloud platform, without sentient systems integrated to help, a customer who might want to buy it in, implement it, and then integrate it with their existing systems, they probably can't do that on their own, because SAP is still complex enterprise software, even if some of the operational capabilities are offloaded to a cloud vendor, so she needed both SAP and an implementation partner to say hey we're serious, but I guess I would add that when you're evaluating SAP there's more than just the core app, the core app is sort of the center of the universe for a customer who is looking to take their systems of record into the cloud, but there's an ecosystem on each cloud that surrounds that that makes it easy to build applications that leverage, that ecosystem's richest on Amazon, it's not far behind on Azure, and Google is still booting that up. >> So what advantage does this SAP partnership with Google give to Google, but also what advantage of any does it give to SAP? >> Okay, great question, so on the advantage to Google, it puts them as a peer, or more closer as a peer to Azure and Amazon, and then to SAP they can say we're cloud agnostic, I believe their infrastructure technology is both made up of Cloud Foundry which is cross cloud technology coming from Pivotal, and then Open Stack as a sort of infrastructure technology that's coming from a whole bunch of the legacy IT vendors who didn't want to be beholden to Amazon. >> What are the other things today, if we look at future trends, and that's kind of what I was expecting to hear, and we heard about a lot of them, big data block chain, we heard about IOT, industrial IOT, IOE, Deep Learning, they talked a lot about how Leonardo was going to facilitate machine learning, artificial intelligence, really help deliver automation, but one of the things that I was wondering if we were going to hear about was mobile. So a few months ago, I look at my notes here, they announced, I believe it was at Mobile World Congress, this partnership with Apple, so SAP opened their cloud platform to iOS developers with the goal of really establishing a bigger presence in mobile apps to power iPhones, etc, with Hana. Curious about did you expect to hear things about mobile today, or was that not part of the plan. >> If I had expected to hear more it would have been from a partner like IBM. Because with Apple they were essentially creating a toolkit for people to be able to build user interfaces on an iOS phone, and I think they've done Android as well, but in other words, the developer is left to their imaginations to fill in the functional capabilities of whatever app, they just have a frame work that makes building an Apple UI accessible. What IBM did with Apple was actually more significant, which was, hey we have all these industry solution groups, and we all these bright ideas functionality in the cloud, but we dont' have an accessible way to deliver it. SO what IBM teamed up to do with Apple, wasn't just give me, tell Apple give me an iOS UI development kit, it was let's collaborate on building some real apps that pilots need, that delivery folks or field servers folks need. So, I guess, I wasn't blown away by what they did with Apple. >> Okay, maybe that's a to be continued. One of the other themes that we heard today from Brad Luker, was software needs to become a strategy and that openness in that respect is an absolute game changer, allowing machine learning integration, social data integration for customer profiling, and really helping these user of SAP understand customer behaviors. He also said that every company today regardless of size needs to drive innovation by connecting all these business processes when software becomes strategy. What was your take on that from a thematic perspective, as well as a real world implication perspective for SAP customers from the small enterprises to the large. >> You know, I would have through that that would be the whole focus, you know the famous Mark Andersen SA from several years ago, Software's Eating the World. It's now really kind of data is eating software, it's data programs the machine learning algorithms that increasingly make up software. But he was a little bit, he talked at a high level about it, the only example I recall was Hybris, which is their commerce front end, where they're going to link marketing sales service, support, customer experience, and they're going to open this up through micro services, so that other developers can easily leverage these capabilities. That to me was end to end processes integrated on a SAP platform, but I would have liked to have seen a lot more examples of that. >> So you talked about Hybris, and on the Leonardo front, the expansion of that, they really talked about this expansion of Leonardo giving companies the ability to reinvent, that word has been used a lot by a lot of companies including Dell, years ago reinvent, reimagine, that could be used to mean a lot of things, but they talked about that as a facilitator of intelligently connecting lots of things, people, processes, systems, etc, what's your take on Leonardo as an accelerator of innovation as they positioned it to be. >> You know, that was sort of to re-emphasize they called the digital core, which is their legacy, not in a bad way, that's their asset that they can leverage to move in any direction. The traditional apps. And Leonardo was the win capability, how to leapfrog your competition. And they used this wonderful example of a win farm, where they could then look at a particular instance of a winmill and find where the stresses were and a capability I haven't seen yet, they were actually able to put a virtual sensor on that errant winmill and see where the stresses were coming from. But that capability isn't completely unique, there's GE and Predicts, and there's Parametric Technology with their Thingworks, and IBM has their Genius of Things, they're not alone in going after this notion of the digital twin and integrating it within the entire business process life cycle, their value add should be to make it easy to create that life cycle for the digital twin as designed as built as deployed as serviced as operated, to make that possible without tons of programing and to link it in with core business processes like field service, but again, it seemed a little bit more like a scenario than a finished app. >> Okay maybe you're saying for them to be differentiated it needs to be more of a me too, it needs to be much more simpler, maybe this is just the precipice they're on, and just didn't context it that way. >> It felt like a hey this is where we're moving to, as opposed to this is where we already are, and they have a lot of assets to bring to bear to get to that point, it just, they weren't really concrete in saying okay here's the functionality we have today, here's what we're going to add over the next 12 to 18 months, so it felt more like a this is where we're going. >> That's a good point that you bring that up from a road map perspective, and perhaps that will appear in some of the break ads which I would anticipate because they talked about that in the transparency and the empathy part of the keynote when Bill McDermot was first on stage about we're listening to our customers, we need to show you these roadmaps, so they did mention in text having impressed as well that it's for three particular products that they have these three year road maps, and obviously they'll be adding more over time. But if you look at SAP, 45 year old company, their roots in on-prem ERP, looking at their evolution and even kind of getting to the topic we were just on, the virtual reality and understanding sensors, is this a natural progression of an ERP company to transition to completely the cloud, help keep their customers there, establish this nucleus of the digital core, and then expand upon things to bring in machine learning, advanced analytics, predictive modeling. Is that a natural expansion? >> You know it's funny the way you asked that, because I think the answer is yes. But it happened in this wave where first it's completely custom, and you have the excentures, PWCs and the specialized sort of system integrators, the small ones that have boutique capabilities in big data and machine learning. They start building those sorts of apps first for big companies, or for internet center companies who really need to be at the bleeding edge, then comes the IBMs of the world where they have these semi-repeatable capabilities, custom development in the industry solutions groups and in their global business services, and so they're there composing a bunch of semi-finished piece parts, and then when it gets to SAP, it should be pretty much almost packaged and SAP goes in and configures it for the customers, in other words they flip a bunch of switches that make choices, so you go from completely custom to configured and almost fully packaged, and that's a natural progression over time, and every time we encounter newer technology that starts on the back, goes again to the fully custom solution, so I guess I do expect SAP to follow this pattern, their sweet spot, their business model is the repeatable stuff. >> When they talked about running core businesses in the cloud to get the benefits of scale, elasticity, availability, I think this was actually Byrne that was saying that they need to be using intelligent apps to automate as much as possible the hyper connectivity as they were talking about is really going to enable that, and he did predict that 80 percent of business processes will be running through SAP or 80 percent of them running will be fully autonomous in the near future. That's a bold number. >> Yeah, you know and that's the number behind the anxiety that everyone has about so what happens to my job, especially when we have conversational bots, we don't need host on our shows, I mean it's a bit of an exaggeration. There are a lot of people who worry that jobs will get completely automated, and then there are other people who say look, it's not every task I do that can be automated, it's some tasks, and there will be a machine that augments me, and changes the nature of my work, but doesn't replace me. One example is Gary Kasparov, who was beaten by IBMs Deep Blue chess playing program, I forget how long ago, maybe 12 or something like that. The best chess players in the world now, are not the computers, they're the ones who pair with a grandmaster with a computer playing against another grand master with a computer, because there's an intuition as to where to look that is not completely replacing human judgment. It's more like a compliment of judgment and then raw calculating horsepower. >> Interesting accompaniment. Well George, thanks for sharing your insights on the keynote, from SAP Sapphire Now. For George Gilbert, I'm Lisa Martin, stick around, we've got more coverage from SAP Sapphire now 2017. (upbeat electronic music)