>> Live from Seattle, Washington. It's theCUBE, covering KubeCon and CloudNativeCon North America 2018, brought to you by Red Hat, the Cloud Native Computing Foundation and its ecosystem of partners. >> Hello everyone, welcome to theCUBE. We are at CubeCon 2018 in Seattle, CloudNativeCon as well. We've been to every KubeCon and CloudNativeCon since inception. I'm John Furrier. My co-host Stu Miniman want to break down the three days of wall to wall coverage of the rise of kubernetes and the ecosystem and the industry consolidation and standardization around kubernetes for multi cloud, for hybrid cloud. We're here breaking down day one keynote, kicking everything off. Stu, it's fun to come here and watch words like expansion, Moore's law, expansive growth, doubling down. The attendance for KubeCon, CloudNativeCon, hockey stick growth chart on Twitter. 1200, 4000, 8000 up into the right. Global phenomenon, the team at CNC at KubeCon, huge presence in China this year, total expansion all to save, hold the line on the cloud tsunami that is Amazon's web services. >> Yeah. >> This is the massive cloud game going on, your thoughts. >> Yeah, John first of all. You have to start out just expansive growth and you can just feel the energy here. We're in the middle of the show floor. You were here two years ago in Seattle when I think they said, they were, was it 16? There weren't that many sponsors here. There's 180 booths at this show. The joke in the keynote this morning was if you want to replace your entire T-shirt wardrobe that's what you can do here. Everybody's got fun stickers. It's a good crowd. Those alpha geeks, this is where they are. >> And Stu, you're sporting a new T-shirt. >> Yeah, John so I want to thank our friends. >> Make sure they can see that. >> Our friends here, Women Who Go. They do the GoLang languages, the gopher is what they're doing here. So love that, if you're at the show, come by. Get our stickers. If you look up Women Who Go on thread list. They actually have an artist shop. The CNCF has their logo up there. We have their logo. There is blockchain. There's docker, there's all these and you can buy the shirts and the money for buying these shirts actually goes to bring women and underserved people to events like this. We also love John when they're supporting this. The CNCF actually, I think it was a 130 or so people that they brought to this conference through charitable donations from many of the sponsors. >> And that's one of the highlights I want to get to later is the mission driven and the social responsibility, scholarships, the money that's being donated to fund diversity inclusion in all walks of life to make CloudNative, but Stu lets get back to the core thing that's going on here at KubeCon, CloudNativeCon. A couple years ago, I said, we said on theCUBE that the Tsunami, that is Amazon Web Service is just going to just hit ashore and just wipe out the industry in IT as much as it can go unless someone builds a seawall. Builds a wall to stop that momentum. Kubernetes and KubeCon specifically has had that moment. This is the industry saying look it. Cloud is awesome. It's full validation of cloud but there is more than just AWS. This is about multi cloud, hybrid cloud, and a lot of forces are at play competitively to make sure that Amazon doesn't run the table. >> Yeah, John, it's good to do a little bit of compare and contrast here because if you go back to OpenStack, it was OpenStack is the hail Mary against Amazon, and it's going to help you get off your VMware licenses. Well that's not what kubernetes is, if you look both VMware required Heptio, and Amazon have a big presence at this show. Amazon, their hands were forced to be able to actually work with kubernetes. I remember I read an article that said, there were about 14 different ways you can run kubernetes on Amazon before they supported it. Now they fully support it. They're going even deeper, AWS Fargate. I know you spend a lot of time at re:Invent digging into some of this environment here so this isn't, portability is a piece of kubernetes. Kubernetes won the orchestrator battles out there. It is the de facto standard out there, and we're seeing how this stack can really be built up on top of it. The thing that I've been keying in on coming into this year is how Serverless plays into it. You heard a big push for Knative on the keynote which is Google, who of course brought us to kubernetes. IBM, SAP, Red Hat all there but I don't see Microsoft or AWS yet embracing how we can match up Serverless and kubernetes today with the Knative. >> I think if I'm Amazon or Microsoft, I might be a little bit afraid of this movement because when, we went through the multi vendor days. You had multi vendoring decades ago. Now, multi cloud is the multi vendoring story, and what's interesting is that choice becomes the key word in all this and a real enterprise that's out there. They got Cisco routers, they got tons of stuff that's actually running their business, powering their business. They need to integrate that so this idea that one cloud fits all certainly has been validated. I think to me the winner takes most but what this community is doing Stu around kubernetes is galvanizing around a new stack configuration with kubernetes at the center of it, and that will disintermediate services at AWS and at Microsoft. Microsoft stock price has put that company in a higher value position than Google or Apple. What has Microsoft actually done to make them go from a $26 stock price to $100 and change? What did they actually invent? What did they actually do? What did they disrupt? Was it just go in a cloud? Is it Office 365? This begs the question is it just the business model shift so certainly there is business in the cloud and it's showing here at KubeCon. >> Yeah John, there was a major cultural shift inside of Microsoft I was really excited. One of the shows I got to go to this year was Microsoft Ignite, and in many ways it's interesting. That show has been around for decades and in many ways, it was the Windows admin just getting the latest and greatest. From my standpoint, I think it was Microsoft fully embracing the move to SaaS. They're pushing everybody to Office 365. They are aggressively moving to expand their cloud that that hybrid environment Microsoft has the applications, and they're not waiting for customers to just leave them or hold onto whatever revenue stream. They're switching to that writable model. They're switching to SaaS model. They're pushing really hard on Azure. They're here in force. They're really embracing developers, all the .NET folks, they were-- >> They're moving the ball inch by inch down the fields slowly to that cadence and that in totality with social responsibility and commencement of the cloud. I think has been, there's not one thing that's happened. It's just a total transformation for Microsoft, and the results and the valuation are off the charts. Google, the same way. Diane Greene has, I think was unfairly categorized by the press in terms of her exit. She's been wanting to retire for years Stu. She has turned Google around. You look at Google where they are right now verses where they were two years ago. Two years ago, they were slinging cloud the Google way. Now they're saying hey, you know what. We know the enterprise. Jennifer Lin, Sarah Novotny, Dawn Chen. All those people over there are leading the way real enterprise just with tech and they got some big moves to make, and they're doing it. So Diane Greene did not fail. So that was one thing that's interesting in the ecosystem and in Amazon as you know just kick it out. So given all that Stu, how does that relate to this? >> Yeah, let's bring it back here. So first of all, kubernetes. It was interesting the keynote this morning. We spent a lot of time talking about things that built on top of and around what's happening with kubernetes. Talking about things like how Helm is moving forward. Onvoy, Prometheus all of these projects. There are a couple dozen incubating projects and a few of them are graduating up to be full flanked projects. We talked about the ecosystem and how many partners are here. There's around 80 service providers and about 80 platforms that have kubernetes baked in. I want to point out an interesting distinction. Some people said, it's like oh they're 75 or 80 different distributions of it. I don't think that anybody thinks that they're going to make a differentiated platform that people are going to buy what I'm doing because I have the best kubernetes. Really what the CNCF has done a good job is saying you're fully supported. You're inoperable, you meet the guidelines to say, I am kubernetes and therefore it's baked into what we're doing. So why do we have so many of them? It's well, there's a lot of clouds out there. There's service providers and even the infrastructure players are making sure that they're in there. Everybody from Intel, all the way through. Servers and storage and networking all making sure that they're doing they're pieces to make sure that they work in the kubernetes environment. >> So Stu, I got to ask you a question on the keynote. You were in the front row. I was watching online here. Kind of distraction, sold out in the keynote. I didn't get the whole gist of it. How much of the keynote was vendor or project expansion verses end user traction? Can you give some color on that? >> Yeah, so a lot of it was the projects. What's really good is there's not a lot of vendors. Sure there is here's the logo slide. Let's everybody give a big round of applause and thank you. But when they put the projects up there, many of these projects came out of a group but some of that is well Lyft. Lyft created one of these projects and who's involved in that. One of the big news announcement was FCD is being donated to the CNCS, and well that came out of CoreOS to solve a really needed problem that they had to make sure that when you're rolling upgrades that you don't reboot the entire cluster all at once, and then your application isn't able to be there. So why are they donating? Well it has reached the maturity level, and while CoreOS is inside of Red Hat, there is a broad adoption. Lots of people contributing and it just makes sense to hand it over. Red Hat, everything they've done always is 100% open source, so them making sure that they have a good relationship with the foundation and who should have the governs of that. Red Hat has a strong track record on that. I know we'll be talking a lot-- >> All right so Stu get your perspective on the big players. We saw Google up on Saint-operno. We saw VMware. Cisco is here. I saw some of the Cisco executives here earlier. You got Red Hat, you got the big dogs here, Microsoft. What's the trend on the big players and then what's the trend on the hot startups either companies and or new wave in here? You mentioned Knative. So big companies, what's the general trend there and then what are you seeing on the interests around startups. >> So John, last year when I talked to users at this show. It was most of the people that were using kubernetes were building their own stack. The exception to that was oh if I'm a Red Hat customer, open shift makes sense for me. I can built it into what my model is. Azure had just come out with their AKS support. AWS had just been figuring out their ECS verse EKS and what they had. We're going to do before Fargate was down there. Today, what I hear is maturation of the platform so I expect Amazon and Microsoft to win more, and just I'm on those platforms. I'm using it, oh I want to use their kubernetes service that's going to make sense. So the rich get richer in this a lot way. Red Hat is going to do well, IBM is a strong player here, and of course sometime in 2019, we expect that acquisition of Red Hat to close. From a start up standpoint, there are so many niches that can be filled here. The question is how many of them are going to end up as acquisitions inside some of these big ones. How much of them can monetize because as I said with kubernetes John, I don't see a company that's going to say oh, I'm going to be the kubernetes company and monetize. Mirantis for a year or so ago was pivoting to be from the OpenStack company to the kubernetes company. Heptio was an early player and they had a quick exit. They're bringing strong skill set to the VMware team to help VMware accelerate their CloudNative activities. So in many ways John, this is an evolution more than a revolution so I do not see a drastic change in the landscape. >> Well evolution is cloud computing. We know that's going to yield the edge of the network and then on premise is complete conversions. This evolution is interesting Stu because this is an open source community vibe. You have now two other things going on around it. You have the classic open source community event, and you've got on the other spectrum, normal app developers that just want to right code. Then you got this IT dynamic. So what's happening and that will be interesting and we'll be watching this is how does the CNCF KubeCon, CloudNativeCon involve, and you start to cross pollinate app developers who just want our infrastructure as code. IT people who want to take over a new IT and then pure open source community players. This has now become a melting pot. Is that an opportunity or a challenge for the CNCF and the Linux Foundation? >> The danger is that this just gets overruned by vendors. It becomes another OpenStack that people get disenfranchised through what they're doing so absolutely there's a threat here. To their credit, I think the CNCF has done a really good job of managing things. They're smart is how they're doing. They're community focused. I have to say in the keynote John, if we noticed the diversity was phenomenal. Most of the speakers were women. They were one from end users. There are a couple of dozen end users that are now members of the CNCF. >> I think they're all CUBE alumnis too. >> Absolutely, and John, we've been here since the early days been tracking the whole thing. >> It's fun to watch. My opinion on the whole the melting pot of those personas is I think the CNCF and the Linux Foundation has a winning formula by owning and nurturing the open source community side of it. I think that's where the data is going to be, that's where the action is and I think as a downstream benefit, the IT market and developers will win. I would not try to get enamored by the money, and the vendor participation hype. I don't think they are. I'm just saying I would advise them to stay the course. Make this the open source community show of course, that's what we believe and of course we're CubeNative this week. We are here at the CloudNative and now we're CubeNative. This is the first day of three days of coverage. I'm John Furrier and Stu Miniman breaking down the analysis, talking to the smartest people we can find, and also talk about some of the key players that are sponsoring the show. We'll be back with more coverage after this short break. (uptempo techno music)