>> Announcer: Live from San Francisco, it's theCUBE. Covering Red Hat Summit 2018. Brought to you by Red Hat. >> Hello everyone, welcome to theCUBE's special coverage here at Red Hat Summit. This is exclusive three days of wall-to-wall coverage of theCUBE. I've been covering Red Hat for years. Excited to be back here at Moscone West. I'm John Furrier, the co-host of theCUBE, with my co-host analyst this week, John Troyer. He's the CEO of TechReckoning, an advisory firm in the technology industry as well as an influencer, and he advises on influencer and influencer of communities. I would say it's community focused. John, great to see you. Welcome to the Red Hat Summit. We're going to kick it off! >> Great to be here. Thanks for having me. >> So you know I am pretty bullish on open source. I have been from day one. At my age who have lived through the wars of when it was second class citizen. Now it's first class citizen. Software power in the world. Again, on and on, this is not a new story. What is the new story is the cloud impact to the world of open source and business. We're seeing the results of Amazon just continue to be skyrocketing. You see Microsoft as you're having their developer conference of Microsoft Build this week. Google I/O is also this week. There is a variety of events happening. It's all pointing to cloud economics, cloud scale, and the role of software and data, and Red Hat has been a big time winner in taking advantage of these trends by making some good bets. >> Absolutely. I think one of the words were going to hear a lot this week is OpenShift. They are a container and cloud platform. Hybrid cloud is a super big emphasis here. Hybrid cloud, multi cloud already on stage at the first key note. They had a big stack of machines and they were going out to a multi cloud deployment right there on stage. Open source, also huge this week, right? The key note, the tagline, of the whole conference, if you are interested in open source, you should be here. I think you nailed it. It's going to be about multi cloud. >> It's exciting for me, I got to say. The disruption that's happening obviously with IT, with cloud, is pretty much out there. We pretty much recognize IT as transforming into a whole other look in terms of how it's operating, but the interesting thing that's just happening recently is the overwhelming takeover of Kubernetes and the conversation and in the stack you're seeing a rallying point and a rallying cry and establishing a de facto standard of Kubernetes. The big news of 2018 is, to me, the de facto standard of Kubernetes across a multi cloud, hybrid cloud architecture to allow developers and also infrastructure providers the ability to move workloads around, managing workloads across clouds. This is kind of the holy grail outcome everyone's looking for is how do I get to a true multi cloud world? And I think Kubernetes this year has the stake in the ground to say we're going to make that the interoperable capability. And Red Hat made a bet a couple years ago, three, four years ago. Everyone was scratching their head. What the hell are they doing with Kubernetes? What's Red Hat-- They're looking like geniuses now because of the results. >> Absolutely. In fact, I think by the end my joke is going to be this is the OpenShift Summit. I'll be very interested, John in your observations. You were at KubeCon last week. So that's the open source project and the ecosystem around Kubernetes. Red Hat owns a lot of Kubernetes. Red Hat employs many of the Kubernetes' leaders. They have really taken over from Google in a lot of ways about the implementation and go-forward path for Kubernetes. So this is the show that takes that open source project and packages it into something that an IT buyer can understand and take. >> I got to say one of the things that is interesting, and this is not well-reported in the news. It's a nuanced point but it's kind of an interesting thing, I think an inflection point for Red Hat. By them buying CoreOS has been a really good outcome for both companies. CoreOS, pure open source DNA in that business. Those guys were doing some amazing technology development, and again, all pure open source. Total pure. There is nothing wrong with being a pure open source. My point is, when you have that kind of religious point of view and then the pressure to monetize it Docker has had. We know what happened there. So CoreOS was doing amazing things but it kind of took a lot of pressure from the market. How are you going to make money? You know I always say it's hard to make money when you're trying to do it too early. So CoreOS lands at Red Hat who has generations of commercialization. Those two together is really going to give Red Hat the capability to go to the next level when you talk about applications. It's going to increase their total addressable market. It's going to give them more range. And with Kubernetes becoming the de facto standard, OpenShift now can become a key platform as a service that really enables new applications, new management capabilities. This should expand the RHEL opportunity from a market standpoint in a significant, meaningful way. I think if you're like a financial analyst or you're out there looking at this going, hmm, where's the dots connecting? It's connecting up the stack, software to service, with DevOps, with cloud native, Red Hat is positioned well. So that's my takeaway from KubeCon. >> Interesting. Yeah, before we move away from CoreOS, a lot of announcements today about how Red Hat will be incorporating CoreOS technologies into their platform. They talked about the operator framework. I think one of the bigger pieces of news is that CoreOS' OS, called Container Linux changes its name back to CoreOS and will now be the standard container operating system for Red Hat. That's kind of big news because Red Hat had its own atomic host, its own kind of micro, mini Linux distribution and so now they're switching over to that. They also talked about Tectonic, which actually is a really good automated operations stack, some of those technologies. In the future they will be incorporated into OpenShift. So they were talking a little bit about futures but it at least they've given a roadmap. No one was quite sure what the super-smart rocket scientists at CoreOS were doing here and so now we know a little more. >> And also at KubeCon they announced the open source of the operator framework. It's an open source toolkit for managing Kubernetes clusters. Again, and first of all, I love the CoreOS name. This is all about what Red Hat is doing. Now let's not forget the ecosystem that Red Hat has. So you're talking about a company that's been successful in open source for multiple generations now. Looking forward to this next generation modern infrastructure, you're seeing the stack look completely different with the cloud. If you look at all the presentations from Amazon, Google, Microsoft, the stack is not the old stack. It's a new concept. New things are happening so you've got to swap some pieces out. You get CoreOS, you bring that in, new puzzle piece. But look at the deals they're doing. They did a relationship with IBM, so IBM's back into the fold with Red Hat joining forces. >> Containerizing some of their biggest components like WebLogic and Dv2 and MQ. >> I think the containerization will create a nice compatibility mode, bring these old legacy apps into a modern cloud native architecture and gives that an opportunity to kind of get into the game, but also bring cloud native to the table. >> Absolutely. >> You've got IoT Edge, all these new applications. You just can't go anywhere without hearing about Internet of Things, machine learning, AI, cameras, whatnot. All this is happening. >> Absolutely. So we're going to break it down all week for the next three days. Red Hat Summit. It's all about containers, it's all about the Linux moment, kind of going to the next level. Cloud native, big time data action. All the great stuff happening. All done with open source with projects with new products being commercialized from these projects. This is the open source ethos. This is of course theCUBE coverage. We'll be back with more live coverage here in San Francisco at Moscone West after this short break.