(upbeat music) >> Announcer: theCUBE presents UiPath Forward5. Brought to you by UiPath. >> Hi everybody, we're back in Las Vegas. We're live with Cube's coverage of Forward 5 2022. Dave Vellante with Dave Nicholson Ted Kumer this year is the Executive Vice President, product and engineering at UiPath. Brought on to do a lot of the integration and bring on new capabilities for the platform and we've seen that over the last several years. And he's joined by Dr. Edward Challis, who's the co-founder of the recent acquisition that UiPath made, company called Re:infer. We're going to learn about those guys. Gents, welcome to theCUBE. Ted, good to see you again. Ed, welcome. >> Good to be here. >> First time. >> Thank you. >> Yeah, great to be here with you. >> Yeah, so we have seen, as I said, this platform expanding. I think you used the term business automation platform. It's kind of a new term you guys introduced at the conference. Where'd that come from? What is that? What are the characteristics that are salient to the platform? >> Well, I see the, the evolution of our platform in three chapters. You understand the first chapter, we call that the RPA chapter. And that's where we saw the power of UI automation applied to the old problems of how do I integrate apps? How do I automate processes? That was chapter one. You know, chapter two gets us to Forward3 in 2019, and the definition of this end-to-end automation platform you know, with the capabilities from discover to measure, and building out that core platform. And as the platform's progressed, what we've seen happen with our customers is the use of it goes from being very heavy in automating the repetitive and routine to being more balanced, to now where they're implementing new brought business process, new capability for their organization. So that's where the name, Business Automation Platform, came from. Reflecting now that it's got this central role, as a strategic tool, sitting between their application landscape, their processes, their people, helping that move forward at the rate that it needs to. >> And process mining and task mining, that was sort of the enabler of chapter two, is that right? >> Well, I'd say chapter two was, you know, first the robots got bigger in terms of what they could cover and do. API integration, long running workflows, AI and ML skills integrated document processing, citizen development in addition to professional development, engaging end users with things like user interfaces built with UiPath apps. And then the discovery. >> So, more robustness of the? Yeah, okay. >> Yeah. Just an expansion of the whole surface area which opened up a lot of things for our customers to do. That went much broader than where core RPA started. And so, and the other thing about this progression to the business automation platform is, you know, we see customers now talking more about outcomes. Early on they talk a lot about hours saved and that's great, but then what about the business outcomes it's enabling? The transformations in their business. And the other thing we're doing in the platform is thinking about, well, where can we land with solutions capabilities that more directly land on business, measurable business outcomes? And so we had started, for example, offering an email automation solution, big business problem for a lot of our customers last year. And we'd started encountering this company Re:infer as we were working with customers. And then, and we encountered Re:infer being used with our platform together. And we saw we can accelerate this. And what that is giving us now is a solution now that aligns with a very defined business outcome. And this way, you know, we can help you process communications and do it efficiently and provide better service for your customers. And that's beginning of another important progression for us in our platform. >> So that's a nice segue, Ed. Tell about Re:infer. Why did you start the company? >> Right, yeah, so my whole career has been in machine learning and AI and I finished my PhD around 2013, it was a very exciting time in AI. And me and my co-founders come from UCL, this university in London, and Deep Mind, this company which Google acquired a few years later, came from our same university. So very exciting time amongst the people that really knew about machine learning and AI. And everyone was thinking, you know, how do we, these are just really big breakthroughs. And you could just see there was going to be a whole bunch of subsequent breakthroughs and we thought NLP would be the next breakthrough. So we were really focused on machine reading problems. And, but we also knew as people that had like built machine learning production systems. 'Cause I'd also worked in industry that built that journey from having a hypothesis that machine learning can solve a problem to getting machine learning into production. That journey is of painful, painful journey and that, you know, you can see that you've got these advances, but getting into broad is just way too hard. >> So where do you fit in the platform? >> Yeah, so I think when you look in the enterprise just so many processes start with a message start with a no, start with a case ticket or, you know, some other kind of request from a colleague or a customer. And so it's super exciting to be able to, you know, take automation one step higher in that process chain. So, you could automatically read that request, interpret it, get all the structured data you need to drive that process forward. So it's about bringing automation into these human channels. >> So I want to give the audience a sense here. So we do a lot of events at the Venetian Conference Center, and it's usually very booth heavy, you know, brands and big giant booths. And here the booths are all very small. They're like kiosks, and they're all pretty much the same size. So it's not like one vendor trying to compete with the other. And there are all these elements, you know I feel like there's clouds and there's, you know, of course orange is the color here. And one of the spots is, it has this really kind of cool sitting area around customer stories. And I was in there last night reading about Deutsche Bank. Deutsche Bank was also up on stage. Deutsche Bank, you guys were talking about a Re:infer. So share with our audience what Deutsche Bank are doing with UiPath and Re:infer. >> Yeah, so I mean, you know, before we automate something, we often like to do what we call communications mining. Which is really understanding what all of these messages are about that might be hitting a part of the business. And at Deutsche Bank and in many, you know, like many large financial services businesses, huge volumes of messages coming in from the clients. We analyze those, interpret the high volume query types and then it's about automating against those to free up capacity. Which ultimately means you can provide faster, higher quality service because you've got more time to do it. And you're not dealing with all of those mundane tasks. So it's that whole journey of mining to automation of the coms that come into the corporate bank. >> So how do I invoke the service? So is it mother module or what's the customer onboarding experience like? >> So, I think the first thing that we do is we generate some understanding of actually the communications data they want to observe, right? And we call it mining, but you know, what we're trying to understand is like what are these communications about? What's the intent? What are they trying to accomplish? Tone can be interesting, like what's the sentiment of this customer? And once you understand that, you essentially then understand categories of conversations you're having and then you apply automations to that. And so then essentially those individual automations can be pointed to sets of emails for them to automate the processing of. And so what we've seen is customers go from things they're handling a hundred percent manual to now 95% of them are handled basically with completely automated processing. The other thing I think is super interesting here and why communications mining and automation are so powerful together is communications about your business can be very, very dynamic. So like, new conversations can emerge, something happens right in your business, you have an outage, whatever, and the automation platform, being a very rapid development platform, can help you adapt quickly to that in an automated way. Which is another reason why this is such a powerful thing to put the two things together. >> So, you can build that event into the automation very quickly you're saying? >> Speaker 1: Yeah. >> Speaker 2: That's totally right. >> Cool. >> So Ed, on the subject of natural language processing and machine learning versus machine teaching. If I text my wife and ask her would you like to go to an Italian restaurant tonight? And she replies, fine. Okay, how smart is your machine? And, of course, context usually literally denotes things within the text, and a short response like that's very difficult to do this. But how do you go through this process? Let's say you're implementing this for a given customer. And we were just talking about, you know, the specific customer requirements that they might have. What does that process look like? Do you have an auditor that goes through? And I mean do you get like 20% accuracy, and then you do a pass, and now you're at 80% accuracy, and you do a pass? What does that look? >> Yeah, so I mean, you know when I was talking about the pain of getting a machine learning model into production one of the principle drivers of that is this process of training the machine learning model. And so what we use is a technique called active learning which is effectively where the AI and ML model queries the user to say, teach me about this data point, teach me about this sentence. And that's a dynamic iterative process. And by doing it in that way you make that training process much, much faster. But critically that means that the user has, when you train the model the user defines how you want to encode that interpretation. So when you were training it you would say fine from my wife is not good, right? >> Sure, so it might be fine, do you have a better suggestion? >> Yeah, but that's actually a very serious point because one of the things we do is track the quality of service. Our customers use us to attract the quality of service they deliver to their clients. And in many industries people don't use flowery language, like, thank you so much, or you know, I'm upset with you, you know. What they might say is fine, and you know, the person that manages that client, that is not good, right? Or they might say I'd like to remind you that we've been late the last three times, you know. >> This is urgent. >> Yeah, you know, so it's important that the client, our client, the user of Re:infer, can encode what their notions of good and bad are. >> Sorry, quick follow up on that. Differences between British English and American English. In the U.K., if you're thinking about becoming an elected politician, you stand for office, right? Here in the U.S., you run for office. That's just the beginning of the vagaries and differences. >> Yeah, well, I've now got a lot more American colleagues and I realize my English phrasing often goes amiss. So I'm really aware of the problem. We have customers that have contact centers, some of them are in the U.K., some of them are in America, and they see big differences in the way that the customers get treated based on where the customer is based. So we've actually done analysis in Re:infer to look at how agents and customers interact and how you should route customers to the contact centers to be culturally matched. Because sometimes there can be a little bit of friction just for that cultural mapping. >> Ted, what's the what's the general philosophy when you make an acquisition like this and you bring in new features? Do you just wake up one day and all of a sudden there's this new capability? Is it a separate sort of for pay module? Does it depend? >> I think it depends. You know, in this case we were really led here by customers. We saw a very high value opportunity and the beginnings of a strategy and really being able to mine all forms of communication and drive automated processing of all forms of communication. And in this case we found a fantastic team and a fantastic piece of software that we can move very quickly to get in the hands of our customer's via UiPath. We're in private preview now, we're going to be GA in the cloud right after the first of the year and it's going to continue forward from there. But it's definitely not one size fits all. Every single one of 'em is different and it's important to approach 'em that way. >> Right, right. So some announcements, StudioWeb was one that I think you could. So I think it came out today. Can't remember what was today. I think we talked about it yesterday on the keynotes anyway. Why is that important? What is it all about? >> Well we talked, you know, at a very top level. I think every development platform thinks about two things for developers. They think, how do I make it more expressive so you can do other things, richer scenarios. And how do I make it simpler? 'Cause fast is always better, and lower learning curves is always better, and those sorts of things. So, Re:infer's a great example of look the runtime is becoming more and more expressive and now you can buy in communications state as part of your automation, which is super cool. And then, you know StudioWeb is about kind of that second point and Studios and Studio X are already low code visual, but they're desktop. And part of our strategy here is to elevate all of that experience into the web. Now we didn't elevate all of studio there, it's a subset. It is API integration and web based application automation, Which is a great foundation for a lot of apps. It's a complete reimagining of the studio user interface and most importantly it's our first cross-platform developer strategy. And so that's been another piece of our strategy, is to say to the customers we want to be everywhere you need us to be. We did cross-platform deployment with the automation suite. We got cross-platform robots with linear robots, serverless robots, Mac support and now we got a cross-platform devs story. So we're starting out with a subset of capabilities maybe oriented toward what you would associate with citizen scenarios. But you're going to see more roadmap, bringing more and more of that. But it's pretty exciting for us. We've been working on this thing for a couple years now and like this is a huge milestone for the team to get to this, this point. >> I think my first conversation on theCUBE with a customer was six years ago maybe at one of the earlier Forwards, I think Forward2. And the pattern that I saw was basically people taking existing processes and making them better, you know taking the mundane away. I remember asking customers, yeah, aren't you kind of paving the cow path? Aren't there sort of new things that you can do, new process? And they're like, yeah, that's sort of the next wave. So what are you seeing in terms of automating existing processes versus new processes? I would see Re:infer is going to open up a whole new vector of new processes. How should we think about that? >> Yeah, I think, you know, I mean in some ways RPA has this reputation because there's so much value that's been provided in the automating of the repetitive and routine. But I'd say in my whole time, I've been at the company now for two and a half years, I've seen lots of new novel stuff stood up. I mean just in Covid we saw the platform being used in PPP loan processing. We saw it in new clinical workflows for COVID testing. We see it and we've just seen more and more progression and it's been exciting that the conference, to see customers now talking about things they built with UiPath apps. So app experiences they've been delivering, you know. I talked about one in healthcare yesterday and basically how they've improved their patient intake processing and that sort of thing. And I think this is just the front end. I truly believe that we are seeing the convergence happen and it's happening already of categories we've talked about separately, iPass, BPM, low-code, RPA. It's happening and it's good for customers 'cause they want one thing to cover more stuff and you know, I think it just creates more opportunity for developers to do more things. >> Your background at Microsoft probably well prepared you for a company that you know, was born on-prem and then went all in on the cloud and had, you know, multiple code bases to deal with. UiPath has gone through a similar transformation and we talked to Daniel last night about this and you're now cloud first. So how is that going just in terms of managing multiple code bases? >> Well it's actually not multiple Code bases. >> Oh, it's the same one, Right, deployment models I should say. >> Is the first thing, Yeah, the deployment models. Another thing we did along the way was basically replatform at an infrastructure level. So we now can deploy into a Kubernetes Docker world, what you'd call the cloud native platform. And that allows us to have much more of a shared infrastructure layer as we look to deliver to the automation cloud. The same workload to the automation cloud that we now deliver in the automation suite for deployment on-prem or deploying a public cloud for a customer to manage. Interesting and enough, that's how Re:infer was built, which is it was built also in the cloud native platform. So it's going to be pretty easy. Well, pretty easy, there's some work to do, but it's going to be pretty easy for us to then bring that into the platform 'cause they're already working on that same platform and provide those same services both on premises and in the cloud without having your developers have to think too much about both. >> Okay, I got to ask you, so I could wrap my stack in a container and put it into AWS or Azure or Google and it'll run great. As well, I could tap some of the underlying primitives of those respective clouds, which are different and I could run them just fine. Or/and I could create an abstraction layer that could hide those underlying primitives and then take the best of each and create an automation cloud, my own cloud. Does that resonate? Is that what you're doing architecturally? Is that a roadmap, or? >> Certainly going forward, you know, in the automation cloud. The automation cloud, we announced a great partnership or a continued partnership with Microsoft. And just Azure and our platform. We obviously take advantage of anything we can to make that great and native capabilities. And I think you're going to see in the Automation Suite us doing more and more to be in a deployment model on Azure, be more and more optimized to using those infrastructure services. So if you deploy automation suite on-prem we'll use our embedded distro then when we deploy it say on Azure, we'll use some of their higher level managed services instead of our embedded distro. And that will just give customers a better optimized experience. >> Interesting to see how that'll develop. Last question is, you know what should we expect going forward? Can you show us a little leg on on the future? >> Well, we've talked about a number of directions. This idea of semantic automation is a place where you know, you're going to, I think, continue to see things, shoots, green shoots, come up in our platform. And you know, it's somewhat of an abstract idea but the idea that the platform is just going to become semantically smarter. You know, I had to serve Re:infer as a way, we're semantically smarter now about communications data and forms of communications data. We're getting semantically smarter about documents, screens you know, so developers aren't dealing with, like, this low level stuff. They can focus on business problem and get out of having to deal with all this lower level mechanism. That is one of many areas I'm excited about, but I think that's an area you're going to see a lot from us in the next coming years. >> All right guys, hey, thanks so much for coming to theCUBE. Really appreciate you taking us through this. Awesome >> Yeah Always a pleasure. >> Platform extension. Ed. All right, keep it right there, everybody. Dave Nicholson, I will be back right after this short break from UiPath Forward5, Las Vegas. (upbeat music)

(upbeat music) >> Oracle is in the midst of an acceleration of its product cycles. It really has pushed new capabilities across its database, the database platforms, and of course the cloud in an effort to really maintain its position as the gold standard for cloud database. We've reported pretty extensively on Exadata, most recently the X9M that increased database IOPS and throughput. Organizations running mission critical OLTP, analytics and mix workloads tell us that they've seen meaningfully improved performance and lower costs, which you expect in a technology cycle. I often say if Oracle calls you out by name it's a compliment and it means you've succeeded. So just a couple of weeks ago, Oracle turned up the heat on MongoDB with a Mongo compatible API, in an effort to persuade developers to run applications in a autonomous database and on OCI, Oracle cloud infrastructure. There was a big emphasis by Oracle on acid compliance transactions and automatic scaling as well as access to multiple data types. This caught my attention because in the early days of no SQL, there was a lot of chatter from folks about not needing acid capability in the database anymore. Funny how that comes around. And anyway, you see Oracle investing, they spend money in R&D We've always said that`, they're protecting their moat. Now in social I've seen some criticisms like Oracle still is not adding enough new logos, and Oracle of course will dispute that and give you some examples. But to me what's most impressive is the big name customers that Oracle gets to talk in public. Deutsche Bank, Telephonic, Experian, FedEx, I mean dozens and dozens and dozens. I work with a lot of companies and the quality of the customers Oracle puts in front of analysts like myself is very very high. At the top of the list I would say. And they're big spending customers. And as we said many times when it comes to mission critical workloads, Oracle is the king. And one of the executives behind the success is a longtime Cube alum, Juan Loaiza who's executive vice president of mission critical technologies at Oracle. And we've invited him back on today to talk about some news and Oracle's latest developments and database, Juan welcome back to the show and thanks for coming on today and talking about today's announcement. >> I'm very happy to be here today with you. >> Okay, so what are you announcing and how does this help organizations particularly with those existing Exadata cloud at customer installations? >> Yeah, the big thing we're announcing is our very successful cloud at customer platform. We're extending the capabilities of our autonomous database running on it. And specifically we're allowing much smaller configurations so customers can start small and grow with our autonomous database on our cloud customer platform. >> So let's get into granularity a little bit and double click on this. Can you go over how customers, carve up VM clusters for different workloads? What's the tangible benefit to them? >> Yeah, so it's pretty straightforward. We deploy our Cloud@Customer system anywhere the customer wants it, let's say in their data center. And then through our cloud APIs and GUIs they can carve up into pieces into basically VMs. They can say, Hey, I want a VM with eight CPUs to do this, I want a VM with 20 CPUs to that, I want a 500 CPUVM to do something else. And that's what we call a VM cluster because in Cloud@Customer, it is a highly available environment. So you don't just get one VM, you get a cluster of highly available VMs. So you carve it up. You hand it out to different aspects of a company. You might have development on one, testing on another one, some production sales on one VM, marketing on a different VM. And then you run your databases in there and that's kind of how it works and it's all done completely through our GUI and it's very, very simple 'cause they use it the same cloud APIs and GUIs that we use in the public cloud. It is the same APIs and GUIs that we use in the public cloud. >> Yeah, I was going to say sounds like cloud. So what about prerequisites? What do customers have to do to take advantage of the new capabilities? Can they run it on an Exadata cloud a customer that they installed a couple years ago? Do they have to upgrade the hardware? What migration pain is involved? >> Yeah, there's no pain, so it's just, (coughs) excuse me. I can take their existing system, they get our free software update and they can just deploy autonomous database as a VM in their existing Exadata cloud system. >> Oh nice okay what's the bottom line dollars? Our audience are always interested in cutting costs. It's one of the reasons they're moving to the cloud for example. So how does autonomous database on VM clusters, on Exadata Cloud at Customer? How does it help cut their cost? >> Well, it's pretty straightforward. So previous to this a customer would have to have dedicated a system to either autonomous database or to non autonomous data. So you have to choose one together. So on a system by system basis, you chose I want this thing autonomous, or I don't want it autonomous. Now you carve in the VMs and say for this VM I want that autonomous for that VM I want to run a regular database managed database on there. So lets customers now start small with any size they want. They could start with two CPUs and run an autonomous database and that's all they pay for is the two CPUs that they use. >> Let's talk a little about traction. I mean, I remember we covered the original Exadata announcement quite a long time ago and it's obviously evolved and taken many forms. Look, it's hard to argue that it hasn't been a big success. It has for Oracle and your target customers. Does this announcement make Exadata cloud a customer more attractive for smaller companies. In other words, does it expand the team for ADB? And if so, how? >> Yeah, absolutely. I mean our Exadata cloud platform is extremely successful. We have thousands of deployments, we have on our data platform we have about almost 90% of the global fortune 100 and thousands of smaller customers. In the cloud we have now up to 40% of the global 100 a hundred biggest companies in the world running on that. So it's been extremely successful platform and cloud a customer is super key. A lot of customers can't move their data to the public cloud. So we bring the public cloud to them with our cloud customer offering. And so that's the big customer is the fortune hundred but we have thousands of smaller customers also. And the nice thing about this offering is we can start with literally two CPUs. So we can be a very small customer and still run our autonomous data based on our cloud customer platform. >> Well, everybody cares about security and governance. I mean, especially the big guys, but the little guys that in many ways as well they want the capabilities of the large companies but they can't necessarily afford it. So I want to talk about security in particular governance and it's especially important for mission-critical apps. So how does this all change the security in governance paradigm? What do customers need to know there? >> Yeah, so the beauty of autonomous database which is the thing that we're talking about today is Oracle deals with all the security. So the OS, the hardware, firmware, VMs, the database itself all the interfaces to the VM, to the database all that is it's all done by Oracle. So, which is incredibly important because there's a constant stream of security alerts that are coming out and it's very difficult for customers to keep up with this stuff. I mean, it's hard for us and we have thousands of engineers. And so we take that whole burden away from customers. And you just don't have to think about it, we deal with it. So once you deploy an autonomous database it is always secure because anytime a security alert comes out, we will apply that and we do it in an online fashion also. So it's really, particularly for smaller customers it's even harder because to keep up with all the security that you you need a giant team of security experts and even the biggest customers struggle with that and a small customer's going to really struggle. There's just two, you have to look at the entire stack, all the different components switches, firmware, OS, VMs, database, everything. It's just very difficult to keep up. So we do it all and for small cut, they just can't do it. So really they really need to partner with a company like Oracle that has thousands of engineers that can keep up with this stuff. >> It's true what you say, even large customers this CSOs will tell you that lack of talent, lack of skill sets. They just don't have enough people and so even the big guys can't keep up. Okay, I want you to pitch me as though I'm a developer, which I'm not, but we got a lot of developers in our community. We'll be Cube con next month in Valencia, sell me on why a developer should lean into ADB on Exadata cloud as a customer? >> Yeah, it's very straightforward. So Oracle has the most advanced database in the industry and that's widely recognized by database analysts and experts in the field. Traditionally, it's been hard for a developer to use it because it's been hard to manage. It's been hard to set up, install, configure, patch, back up all that kind of stuff. Autonomous database does it all for you. So as a developer, you can just go into our console, click on creating a database. We ask you four questions, how big, how many CPUs how much storage and say, give your password. And within minutes you have a database. And at that point you can go crazy and just develop. And you don't have to worry about managing the database, patching the database, maintaining the security and the database backing up to all that stuff. You can instantly scale it. You can say, Hey, I want to grow it, you just click a button, take, grow it to much any size you want and you get all the mission critical capabilities. So it works for tiny databases but it is a stock exchange quality in terms of performance, availability, security it's a rock solid database that's super trivial. So what used to be a very complex thing is now completely trivial for a developer. So they get the best of both worlds, they get everything on the database side and it it's trivial for them to use. >> Wow, if you're doing all that stuff for 'em are they going to do on their weekends? Code? (chuckles) >> They should be developing their application and add value to their company that's kind of what they should focus on. And they can be looking at all sorts of new technologies like JSON and the database machine learning in the database graph in the database. So you can build very sophisticated applications because you don't have to worry about the database anymore. >> All right, let's talk about the competition. So it's always a topic I like to bring up with you. From a competitive perspective how is this latest and instantiation of Exadata cloud a customer X9M how's this different from running an AWS database service for instance on outpost, or let's say I want to run SQL server on Azure Stack or whatever Microsoft's calling it these days. Give us the competitive angle here. >> Yeah, there kind of is no real competition. So both Amazon and Microsoft have an at customer solution but they're very primitive. I mean, just to give you an example like Amazon doesn't run any of their premier database offerings at customers. So whether it's Aurora Redshift, doesn't run just plane does not run. It's not that it runs badly or it's got limited, just does not run. They can't run Oracle RDS on premise and same thing with Microsoft. They can't run Azure SQL, which is their premier database on their act customer platform. So that kind of tells you how limited that platform is when even their own premier offerings doesn't run on it. In contrast, we're running Exadata with our premier autonomous database. So it's our premier platform that's in use today by most of the biggest, banks, telecom to retailers et cetera in the world, thousands of smaller customers. So it's super mission critical, super proven with our premier cloud database, which is autonomous theory. So it couldn't be more black and white, this is a case where it's there really is no competition in the cloud of customer space on the database side. >> Okay, but let me follow up on that, Juan, if I may, so, okay. So it took you guys a while to get to the cloud, it's taken them a while to figure it on-prem. I mean, aren't they going to eventually sort of get there? What gives you confidence that you'll be able to to keep ahead? >> Well, there's two things, right? One is we've been doing this for a long time. I mean, that's what Oracle initially started as an on-prem and our Exadata platform has been available for over a decade. And we have a ton of experience on this. We run the biggest banks in the world already, it's not some hope for the future. This is what runs today. And our focus has always been a combination of cloud and on-prem their heart's not really in the on-prem stuff they really like. Amazon's really a public cloud only vendor and you can see from the result, it's not you can say, they can say whatever they want but you can see the results. Their outpost platform has been available for several years now and it still doesn't even run their own products. So you can kind of see how hard they're trying and how much they really care about this market. >> All right, boil it down if you just had a few things that you'd tell someone about why they should run ADB on Exadata cloud at customer, what would you say? >> It's pretty simple, which is it's the world's most sophisticated database made completely simple, that's it? So you get a stock exchange level database, you can start really small and grow and it's completely trivial to run because Oracle is automated everything within our autonomous data we use machine learning and a lot of automation to automate everything around the database. So it's kind of the best of both worlds. The best possible database starts as small as you want and is the simplest database in the world. >> So I probably should have asked you this while I was pushing the competitive question but this may be my last question, I promise. It's the age old debate It rages on, you got specialized databases kind of a right tool for the right job approach. That's clearly where Amazon is headed or what Oracle refers to is converge database. Oracle says its approach is more complete and "simpler." Take us through your thinking on this and the latest positioning so the audience can understand it a bit better. >> Yeah, so apps aren't what they used to business apps, data driven apps aren't what they used to be. They used to be kind of green screens where you just entered data. Now everyone's a very sophisticated app, they want to be have location, they want to have maps, they want to have graph in there. They want to have machine learning, they want machine learning built into the app. So they want JSON they want text, they want text search. So all these capabilities are what a modern app has to support. And so what Oracle's done is we provided a single solution that provides everything you need to build a modern app and it's all integrated together. It's all transactional. You have analytics built into the same thing. You have reporting built into the same thing. So it has everything you need to build a modern app. In contrast, what most of our competitors do is they give you these little solutions, say, okay here you do machine learning over here, you do analytics over there, you do JSON over here, you do spatial over here you do graph over there. And then it's left a developer to put an app together from all these pieces. So it's like getting the pieces of a card and having to assemble it yourself and then maintain it for the rest of your life, which is the even harder part. So one part upgrades, you got to test that. So of other piece upgrade or changes, you got to test that, you got to deal with all the security problems of all these different systems. You have to convert the data, you have to move the data back and forth it's extraordinarily complicated. Our converge database, the data sits in one place and all the algorithms come to the data. It's very simple, it is dramatically simpler. And then autonomous database is what makes managing it trivial. You don't really have to manage anything more because Oracle's automated the whole thing. >> So, Juan, we got a pretty good Cadence going here. I mean I really appreciate you coming on and giving us these little video exclusives. You can tell by again, that Cadence how frequently you guys are making new announcements. So that's great, congrats on yet another announcement. Thanks for coming back in the program appreciate it. >> Yeah, of course we invest heavily in data management. That's our core and we will continue to do that. I mean, we're investing billions of dollars a year and we intend to stay the leaders in this market. >> Great stuff and thank you for watching the Cube, your leader in enterprise tech coverage, this is Dave Vellante we'll see you next time.

>>Earlier this week, Oracle announced the new X nine M generation of exit data platforms for its cloud at customer and legacy on prem deployments. And the company made some enhancements to its zero data loss, recovery appliance. CLRA something we've covered quite often since its announcement. We had a video exclusive with one Louisa who was the executive vice president of mission critical database technologies. At Oracle. We did that on the day of the announcement who got his take on it. And I asked Oracle, Hey, can we get some subject matter experts, some technical gurus to dig deeper and get more details on the architecture because we want to better understand some of the performance claims that Oracle is making. And with me today is Susan. Who's the vice president of product management for exit data database machine. Bob tome is the vice president of product management for exit data cloud at customer. And Tim chin is the senior director of product management for DRA folks. Welcome to this power panel and welcome to the cube. >>Thank you, Dave. >>Can we start with you? Um, Juan and I, we talked about the X nine M a that Oracle just launched a couple of days ago. Maybe you could give us a recap, some of the, what do we need to know? The, especially I'm interested in the big numbers once more so we can just understand the claims you're making around this announcement. We can dig into that. >>Absolutely. They've very excited to do that. In a nutshell, we have the world's fastest database machine for both LTP and analytics, and we made that even faster, not just simply faster, but for all LPP we made it 70% faster and we took the oil PPV ops all the way up to 27.6 million read IOPS and mind you, this is being measured at the sequel layer for analytics. We did pretty much the same thing, an 87% increase in analytics. And we broke through that one terabyte per second barrier, absolutely phenomenal stuff. Now, while all those numbers by themselves are fascinating, here's something that's even more fascinating in my mind, 80% of the product development work for extra data, X nine M was done during COVID, which means all of us were remote. And what that meant was extreme levels of teamwork between the development teams, manufacturing teams, procurement teams, software teams, the works. I mean, everybody coming together as one to deliver this product, I think it's kudos to everybody who touched this product in one way or the other extremely proud of it. >>Thank you for making that point. And I'm laughing because it's like you the same bolt of a mission-critical OLT T O LTP performance. You had the world record, and now you're saying, adding on top of that. Um, but, okay. But, so there are customers that still, you know, build the builder and they're trying to build their own exit data. What they do is they buy their own servers and storage and networking components. And I do that when I talk to them, they'll say, look, they want to maintain their independence. They don't want to get locked in Oracle, or maybe they believe it's cheaper. You know, maybe they're sort of focused on the, the, the CapEx the CFO has him in the headlock, or they might, sometimes they talk about, they want a platform that can support, you know, horizontal, uh, apps, maybe not Oracle stuff, or, or maybe they're just trying to preserve their job. I don't know, but why shouldn't these customers roll their own and why can't they get similar results just using standard off the shelf technologies? >>Great question. It's going to require a little involved answer, but let's just look at the statistics to begin with. Oracle's exit data was first productized in Delaware to the market in 2008. And at that point in time itself, we had industry leadership across a number of metrics. Today, we are at the 11th generation of exit data, and we are way far ahead than the competition, like 50 X, faster hundred X faster, right? I mean, we are talking orders of magnitude faster. How did we achieve this? And I think the answer to your question is going to lie in what are we doing at the engineering level to make these magical numbers come to, uh, for right first, it starts with the hardware. Oracle has its own hardware server design team, where we are embedding in capabilities towards increasing performance, reliability, security, and scalability down at the hardware level, the database, which is a user level process talks to the hardware directly. >>The only reason we can do this is because we own the source code for pretty much everything in between, starting with the database, going into the operating system, the hypervisor. And as I, as I just mentioned the hardware, and then we also worked with the former elements on this entire thing, the key to making extra data, the best Oracle database machine lies in that engineering, where we take the operating system, make it fit like tongue and groove into, uh, a bit with the opera, with the hardware, and then do the same with the database. And because we have got this deep insight into what are the workloads that are, that are running at any given point in time on the compute side of extra data, we can then do micromanagement at the software layers of how traffic flows are flowing through the entire system and do things like, you know, prioritize all PP transactions on a very specific, uh, you know, queue on the RDMA. >>We'll converse Ethan at be able to do smart scan, use the compute elements in the storage tier to be able to offload SQL processing. They call them the longer I used formats of data, extend them into flash, just a whole bunch of things that we've been doing over the last 12 years, because we have this deep engineering, you can try to cobble a system together, which sort of looks like an extra data. It's got a network and it's got storage, tiering compute here, but you're not going to be able to achieve anything close to what we are doing. The biggest deal in my mind, apart from the performance and the high availability is the security, because we are testing the stack top to bottom. When you're trying to build your own best of breed kind of stuff. You're not going to be able to do that because it depended on the server that had to do something and HP to do something else or Dell to do something else and a Brocade switch to do something it's not possible. We can do this, we've done it. We've proven it. We've delivered it for over a decade. End of story. For as far as I'm concerned, >>I mean, you know, at this fine, remember when Oracle purchased Sohn and I know a big part of that purchase was to get Java, but I remember saying at the time it was a brilliant acquisition. I was looking at it from a financial standpoint. I think you paid seven and a half billion for it. And it automatically, when you're, when Safra was able to get back to sort of pre acquisition margins, you got the Oracle uplift in terms of revenue multiples. So then that standpoint, it was a no brainer, but the other thing is back in the Unix days, it was like HP. Oracle was the standard. And, and in terms of all the benchmarks and performance, but even then, I'm sure you work closely with HP, but it was like to get the stuff to work together, you know, make sure that it was going to be able to recover according to your standards, but you couldn't actually do that deep engineering that you just described now earlier, Subin you, you, you, you stated that the X sign now in M you get, oh, LTP IO, IOP reads at 27 million IOPS. Uh, you got 19 microseconds latency, so pretty impressive stuff, impressive numbers. And you kind of just went there. Um, but how are you measuring these numbers versus other performance claims from your competitors? What what's, you know, are you, are you stacking the deck? Can you give you share with us there? >>Sure. So Shada incidents, we are mentioning it at the sequel layer. This is not some kind of an ion meter or a micro benchmark. That's looking at just a flash subsystem or just a persistent memory subsystem. This is measured at the compute, not doing an entire set of transactions. And how many times can you finish that? Right? So that's how it's being measured. Now. Most people cannot measure it like that because of the disparity and the number of vendors that are involved in that particular solution, right? You've got servers from vendor a and storage from vendor B, the storage network from vendor C, the operating system from vendor D. How do you tune all of these things on your own? You cannot write. I mean, there's only certain bells and whistles and knobs that are available for you to tune, but so that's how we are measuring the 19 microseconds is at the sequel layer. >>What that means is this a real world customer running a real world. Workload is guaranteed to get that kind of a latency. None of the other suppliers can make that claim. This is the real world capability. Now let's take a look at that 19 microseconds we boast and we say, Hey, we had an order of magnitude two orders of magnitude faster than everybody else. When it comes down to latency. And one things that this is we'll do our magic while it is magical. The magic is really grounded in deep engineering and deep physics and science. The way we implement this is we, first of all, put the persistent memory tier in the storage. And that way it's shared across all of the database instances that are running on the compute tier. Then we have this ultra fast hundred gigabit ethernet RDMA over converged ethernet fabric. >>With this, what we have been able to do is at the hardware level between two network interface guides that are resident on that fabric, we create paths that enable high priority low-latency communication between any two end points on that fabric. And then given the fact that we implemented persistent memory in the storage tier, what that means is with that persistent memory, sitting on the memory bus of the processor in the storage tier, we can perform it remote direct memory access operation from the compute tier to memory address spaces in the persistent memory of the storage tier, without the involvement of the operating system on either end, no context, switches, knowing processing latencies and all of that. So it's hardware to hardware, communication with security built in, which is immutable, right? So all of this is built into the hardware itself. So there's no software involved. You perform a read, the data comes back 19 microseconds, boom. End of story. >>Yeah. So that's key to my next topic, which is security because if you're not getting the OSTP involved and that's, you know, very oftentimes if I can get access to the OSTP, I get privileged. Like I can really take advantage of that as a hacker. But so, but, but before I go there, like Oracle talks about, it's got a huge percentage of the Gayety 7% of the fortune 100 companies run their mission, critical workloads on exit data. But so that's not only important to the companies, but they're serving consumer me, right. I'm going to my ATM or I'm swiping my credit card. And Juan mentioned that you use a layered security model. I just sort of inferred anyway, that, that having this stuff in hardware and not have to involve access to the OS actually contributes to better security. But can you describe this in a bit more detail? >>So yeah, what Brian was talking about was this layered security set differently. It is defense in depth, and that's been our mantra and philosophy for several years now. So what does that entail? As I mentioned earlier, we designed our own servers. We do this for performance. We also do it for security. We've got a number of features that are built into the hardware that make sure that we've got immutable areas of form where we, for instance, let me give you this example. If you take an article x86 server, just a standard x86 server, not even express in the form of an extra data system, even if you had super user privileges sitting on top of an operating system, you cannot modify the bias as a user, as a super user that has to be done through the system management network. So we put gates and protection modes, et cetera, right in the hardware itself. >>Now, of course the security of that hardware goes all the way back to the fact that we own the design. We've got a global supply chain, but we are making sure that our supply chain is protected monitored. And, uh, we also protect the last mile of the supply chain, which is we can detect if there's been any tampering of form where that's been, uh, that's occurred in the hardware while the hardware shipped from our factory to the customers, uh, docks. Right? So we, we know that something's been tampered with the moment it comes back up on the customer. So that's on the hardware. Let's take a look at the operating system, Oracle Linux, we own article the next, the entire source code. And what shipping on exit data is the unbreakable enterprise Connell, the carnal and the operating system itself have been reduced in terms of eliminating all unnecessary packages from that operating system bundle. >>When we deliver it in the form of the data, let's put some real numbers on that. A standard Oracle Linux or a standard Linux distribution has got about 5,000 plus packages. These things include like print servers, web servers, a whole bunch of stuff that you're not absolutely going to use at all on exit data. Why ship those? Because the moment you ship more stuff than you need, you are increasing the, uh, the target, uh, that attackers can get to. So on AXA data, there are only 701 packages. So compare this 5,413 packages on a standard Linux, 701 and exit data. So we reduced the attack surface another aspect on this, when we, we do our own STIG, uh, ASCAP benchmarking. If you take a standard Linux and you run that ASCAP benchmark, you'll get about a 30% pass score on exit data. It's 90 plus percent. >>So which means we are doing the heavy lifting of doing the security checks on the operating system before it even goes out to the factory. And then you layer on Oracle database, transparent data encryption. We've got all kinds of protection capabilities, data reduction, being able to do an authentication on a user ID basis, being able to log it, being able to track it, being able to determine who access the system when and log back. So it's basically defend at every single layer. And then of course the customer's responsibility. It doesn't just stop by getting this high secure, uh, environment. They have to do their own job of them securing their network perimeters, securing who has physical access to the system and everything else. So it's a giant responsibility. And as you mentioned, you know, you as a consumer going to an ATM machine and withdrawing money, you would do 200. You don't want to see 5,000 deducted from your account. And so all of this is made possible with exited and the amount of security focus that we have on the system >>And the bank doesn't want to see it the other way. So I'm geeking out here in the cube, but I got one more question for you. Juan talked about X nine M best system for database consolidation. So I, I kinda, you know, it was built to handle all LTP analytics, et cetera. So I want to push you a little bit on this because I can make an argument that, that this is kind of a Swiss army knife versus the best screwdriver or the best knife. How do you respond to that concern and how, how do you respond to the concern that you're putting too many eggs in one basket? Like, what do you tell people to fear you're consolidating workloads to save money, but you're also narrowing the blast radius. Isn't that a problem? >>Very good question there. So, yes. So this is an interesting problem, and it is a balancing act. As you correctly pointed out, you want to have the economies of scale that you get when you consolidate more and more databases, but at the same time, when something happens when hardware fails or there's an attack, you want to make sure that you have business continuity. So what we are doing on exit data, first of all, as I mentioned, we are designing our own hardware and a building in reliability into the system and at the hardware layer, that means having redundancy, redundancy for fans, power supplies. We even have the ability to isolate faulty cores on the processor. And we've got this a tremendous amount of sweeping that's going on by the system management stack, looking for problem areas and trying to contain them as much as possible within the hardware itself. >>Then you take it up to the software layer. We used our reliability to then build high availability. What that implies is, and that's fundamental to the exited architecture is this entire scale out model, our based system, you cannot go smaller than having two database nodes and three storage cells. Why is that? That's because you want to have high availability of your database instances. So if something happens to one server hardware, software, whatever you got another server that's ready to take on that load. And then with real application clusters, you can then switch over between these two, why three storage cells. We want to make sure that when you have got duplicate copies of data, because you at least want to have one additional copy of your data in case something happens to the disc that has got that only that one copy, right? So the reason we have got three is because then you can Stripe data across these three different servers and deliver high availability. >>Now you take that up to the rack level. A lot of things happen. Now, when you're really talking about the blast radius, you want to make sure that if something physically happens to this data center, that you have infrastructure that's available for it to function for business continuity, we maintain, which is why we have the maximum availability architecture. So with components like golden gate and active data guard, and other ways by which we can keep to this distant systems in sync is extremely critical for us to deliver these high availability paths that make, uh, the whole equation about how many eggs in one basket versus containing the containment of the blast radius. A lot easier to grapple with because business continuity is something which is paramount to us. I mean, Oracle, the enterprise is running on Xcel data. Our high value cloud customers are running on extra data. And I'm sure Bob's going to talk a lot more about the cloud piece of it. So I think we have all the tools in place to, to go after that optimization on how many eggs in one basket was his blast radius. It's a question of working through the solution and the criticalities of that particular instance. >>Okay, great. Thank you for that detailed soup. We're going to give you a break. You go take a breath, get a, get a drink of water. Maybe we'll come back to you. If we have time, let's go to Bob, Bob, Bob tome, X data cloud at customer X nine M earlier this week, Juan said kinda, kinda cocky. What we're bothering, comparing exit data against your cloud, a customer against outpost or Azure stack. Can you elaborate on, on why that is? >>Sure. Or you, you know, first of all, I want to say, I love, I love baby. We go south posts. You know why it affirms everything that we've been doing for the past four and a half years with clouded customer. It affirms that cloud is running that running cloud services in customers' data center is a large and important market, large and important enough that AWS felt that the need provide these, um, you know, these customers with an AWS option, even if it only supports a sliver of the functionality that they provide in the public cloud. And that's what they're doing. They're giving it a sliver and they're not exactly leading with the best they could offer. So for that reason, you know, that reason alone, there's really nothing to compare. And so we, we give them the benefit of the doubt and we actually are using their public cloud solutions. >>Another point most customers are looking to deploy to Oracle cloud, a customer they're looking for a per performance, scalable, secure, and highly available platform to deploy. What's offered their most critical databases. Most often they are Oracle databases does outposts for an Oracle database. No. Does outpost run a comparable database? Not really does outposts run Amazon's top OTP and analytics database services, the ones that are top in their cloud public cloud. No, that we couldn't find anything that runs outposts that's worth comparing against X data clouded customer, which is why the comparisons are against their public cloud products. And even with that still we're looking at numbers like 50 times a hundred times slower, right? So then there's the Azure stack. One of the key benefits to, um, you know, that customers love about the cloud that I think is really under, appreciated it under appreciated is really that it's a single vendor solution, right? You have a problem with cloud service could be I as pass SAS doesn't matter. And there's a single vendor responsible for fixing your issue as your stack is missing big here, because they're a multi-vendor cloud solution like AWS outposts. Also, they don't exactly offer the same services in the cloud that they offer on prem. And from what I hear, it can be a management nightmare requiring specialized administrators to keep that beast running. >>Okay. So, well, thanks for that. I'll I'll grant you that, first of all, granted that Oracle was the first with that same, same vision. I always tell people that, you know, if they say, well, we were first I'm like, well, actually, no, Oracle's first having said that, Bob and I hear you that, that right now, outpost is a one Datto version. It doesn't have all the bells and whistles, but neither did your cloud when you first launched your cloud. So let's, let's let it bake for a while and we'll come back in a couple of years and see how things compare. So if you're up for it. Yeah. >>Just remember that we're still in the oven too. Right. >>Okay. All right. Good. I love it. I love the, the chutzpah. One also talked about Deutsche bank. Um, and that, I, I mean, I saw that Deutsche bank announcement, how they're working with Oracle, they're modernizing their infrastructure around database. They're building other services around that and kind of building their own sort of version of a cloud for their customers. How does exit data cloud a customer fit in to that whole Deutsche bank deal? Is, is this solution unique to Deutsche bank? Do you see other organizations adopting clouded customer for similar reasons and use cases? >>Yeah, I'll start with that. First. I want to say that I don't think Georgia bank is unique. They want what all customers want. They want to be able to run their most important workloads. The ones today running their data center on exit eight as a non other high-end systems in a cloud environment where they can benefit from things like cloud economics, cloud operations, cloud automations, but they can't move to public cloud. They need to maintain the service levels, the performance, the scalability of the security and the availability that their business has. It has come to depend on most clouds can't provide that. Although actually Oracle's cloud can our public cloud Ken, because our public cloud does run exit data, but still even with that, they can't do it because as a bank, they're subject to lots of rules and regulations, they cannot move their 40 petabytes of data to a point outside the control of their data center. >>They have thousands of interconnected databases, right? And applications. It's like a rat's nest, right? And this is similar many large customers have this problem. How do you move that to the cloud? You can move it piecemeal. Uh, I'm going to move these apps and, you know, not move those apps. Um, but suddenly ended up with these things where some pieces are up here. Some pieces are down here. The thing just dies because of the long latency over a land connection, it just doesn't work. Right. So you can also shut it down. Let's shut it down on, on Friday and move everything all at once. Unfortunately, when you're looking at it, a state decides that most customers have, you're not going to be able to, you're going to be down for a month, right? Who can, who can tolerate that? So it's a big challenge and exited cloud a customer let's then move to the cloud without losing control of their data. >>And without unhappy having to untangle that thousands of interconnected databases. So, you know, that's why these customers are choosing X data, clouded customer. More importantly, it sets them up for the future with exited cloud at customer, they can run not just in their data center, but they could also run in public cloud, adjacent sites, giving them a path to moving some work out of the data center and ultimately into the public cloud. You know, as I said, they're not unique. Other banks are watching and some are acting and it's not just banks. Just last week. Telefonica telco in Spain announced their intent to migrate the bulk of their Oracle databases to excavate a cloud at customer. This will be the key cloud platform running. They're running in their data center to support both new services, as well as mission critical and operational systems. And one last important point exited cloud a customer can also run autonomous database. Even if customers aren't today ready to adopt this. A lot of them are interested in it. They see it as a key piece of the puzzle moving forward in the future and customers know that they can easily start to migrate to autonomous in the future as they're ready. And this of course is going to drive additional efficiencies and additional cost savings. >>So, Bob, I got a question for you because you know, Oracle's playing both sides, right? You've got a cloud, you know, you've got a true public cloud now. And, and obviously you have a huge on-premise state. When I talk to companies that don't own a cloud, uh, whether it's Dell or HPE, Cisco, et cetera, they have made, they make the point. And I agree with them by the way that the world is hybrid, not everything's going into the, to the cloud. However, I had a lot of respect for folks at Amazon as well. And they believed long-term, they'll say this, they've got them on record of saying this, that they believe long-term ultimately all workloads are going to be running in the cloud. Now, I guess it depends on how you define the cloud. The cloud is expanding and all that other stuff. But my question to you, because again, you kind of on both sides, here are our hybrid solutions like cloud at customer. Do you see them as a stepping stone to the cloud, or is cloud in your data center, sort of a continuous sort of permanent, you know, essential play >>That. That's a great question. As I recall, people debated this a few years back when we first introduced clouded customer. And at that point, some people I'm talking about even internal Oracle, right? Some people saw this as a stop gap measure to let people leverage cloud benefits until they're really ready for the public cloud. But I think over the past four and a half years, the changing the thinking has changed a little bit on this. And everyone kind of agrees that clouded customer may be a stepping stone for some customers, but others see that as the end game, right? Not every workload can run in the public cloud, not at least not given the, um, you know, today's regulations and the issues that are faced by many of these regulated industries. These industries move very, very slowly and customers are content to, and in many cases required to retain complete control of their data and they will be running under their control. They'll be running with that data under their control and the data center for the foreseeable future. >>Oh, I got another question for kind of just, if I could take a little tangent, cause the other thing I hear from the, on the, the, the on-prem don't own, the cloud folks is it's actually cheaper to run in on-prem, uh, because they're getting better at automation, et cetera. When you get the exact opposite from the cloud guys, they roll their eyes. Are you kidding me? It's way cheaper to run it in the cloud, which is more cost-effective is it one of those? It depends, Bob. >>Um, you know, the great thing about numbers is you can make, you can, you can kind of twist them to show anything that you want, right? That's a have spreadsheet. Can I, can, I can sell you on anything? Um, I think that there's, there's customers who look at it and they say, oh, on-premise sheet is cheaper. And there's customers who look at it and say, the cloud is cheaper. If you, um, you know, there's a lot of ways that you may incur savings in the cloud. A lot of it has to do with the cloud economics, the ability to pay for what you're using and only what you're using. If you were to kind of, you know, if you, if you size something for your peak workload and then, you know, on prem, you probably put a little bit of a buffer in it, right? >>If you size everything for that, you're gonna find that you're paying, you know, this much, right? All the time you're paying for peak workload all the time with the cloud, of course, we support scaling up, scaling down. We supply, we support you're paying for what you use and you can scale up and scale down. That's where the big savings is now. There's also additional savings associated with you. Don't have the cloud vendors like work. Well, we manage that infrastructure for you. You no longer have to worry about it. Um, we have a lot of automation, things that you use to either, you know, probably what used to happen is you used to have to spend hours and hours or years or whatever, scripting these things yourselves. We now have this automation to do it. We have, um, you eyes that make things ad hoc things, as simple as point and click and, uh, you know, that eliminates errors. And, and it's often difficult to put a cost on those things. And I think the more enlightened customers can put a cost on all of those. So the people that were saying it's cheaper to run on prem, uh, they, they either, you know, have a very stable workload that never changes and their environment never changes, um, or more likely. They just really haven't thought through the, all the hidden costs out there. >>All right, you got some new features. Thank you for that. By the way, you got some new features in, in cloud, a customer, a what are those? Do I have to upgrade to X nine M to, to get >>All right. So, you know, we're always introducing new features for clouded customer, but two significant things that we've rolled out recently are operator access control and elastic storage expansion. As we discussed, many organizations are using Axeda cloud a customer they're attracting the cloud economics, the operational benefits, but they're required by regulations to retain control and visibility of their data, as well as any infrastructure that sits inside their data center with operator access control, enabled cloud operations, staff members must request access to a customer system, a customer, it team grants, a designated person, specific access to a specific component for a specific period of time with specific privileges, they can then kind of view audit controls in real time. And if they see something they don't like, you know, Hey, what's this guy doing? It looks like he's, he's stealing my data or doing something I don't like, boom. >>They can kill that operators, access the session, the connections, everything right away. And this gives everyone, especially customers that need to, you know, regulate remote access to their infrastructure. It gives them the confidence that they need to use exit data cloud, uh, conduct, customer service. And, and the other thing that's new is, um, elastic storage expansion. Customers could out add additional service to their system either at initial deployment or after the fact. And this really provides two important benefits. The first is that they can right size their configuration if they need only the minimum compute capacity, but they don't need the maximum number of storage servers to get that capacity. They don't need to subscribe to kind of a fixed shape. We used to have fixed shapes, I guess, with hundreds of unnecessary database cores, just to get the storage capacity, they can select a smaller system. >>And then incrementally add on that storage. The second benefit is the, is kind of key for many customers. You are at a storage, guess what you can add more. And that way, when you're out of storage, that's really important. Now they'll get to your last part of that question. Do you need a deck, a new, uh, exit aquatic customer XIM system to get these features? No they're available for all gen two exited clouded customer systems. That's really one of the best things about cloud. The service you subscribed to today just keeps getting better and better. And unless there's some technical limitation that, you know, we, and it, which is rare, most new features are available even for the oldest cloud customer systems. >>Cool. And you can bring that in on from my, my last question for you, Bob is a, another one on security. Obviously, again, we talked to Susan about this. It's a big deal. How can customer data be secure if it's in the cloud, if somebody, other than the, their own vetted employees are managing the underlying infrastructure, is is that a concern you hear a lot and how do you handle that? >>You know, it's, it's only something because a lot of these customers, they have big, you know, security people and it's their job to be concerned about that kind of stuff. And security. However, is one of the biggest, but least appreciate appreciated benefits of cloud cloud vendors, such as Oracle hire the best and brightest security experts to ensure that their clouds are secure. Something that only the largest customers can afford to do. You're a small, small shop. You're not going to be able to, you know, hire some of this expertise. So you're better off being in the cloud. Customers who are running in the Oracle cloud can also use articles, data, safe tool, which we provide, which basically lets you inspect your databases, insurance. Sure that everything is locked down and secure and your data is secure. But your question is actually a little bit different. >>It was about potential internal threats to company's data. Given the cloud vendor, not the customer's employees have access to the infrastructure that sits beneath the databases and really the first and most important thing we do to protect customers' data is we encrypt that database by default. Actually Subin listed a whole laundry list of things, but that's the one thing I want to point out. We encrypt your database. It's, you know, it's, it's encrypted. Yes. It sits on our infrastructure. Yes. Our operations persons can actually see those data files sitting on the infrastructure, but guess what? They can't see the data. The data is encrypted. All they see as kind of a big encrypted blob. Um, so they can't access the data themselves. And you know, as you'd expect, we have very tight controls over operations access to the infrastructure. They need to securely log in using mechanisms by stuff to present, prevent unauthorized access. >>And then all access is logged and suspicious. Activities are investigated, but that still may not be enough for some customers, especially the ones I mentioned earlier, the regulated industries. And that's why we offer app operator access control. As I mentioned, that gives customers complete control over the access to the infrastructure. The, when the, what ops can do, how long can they do it? Customers can monitor in real time. And if they see something they don't like they stop it immediately. Lastly, I just want to mention Oracle's data ball feature. This prevents administrators from accessing data, protecting data from road operators, robot, world operations, whether they be from Oracle or from the customer's own it staff, this database option. A lot of ball is sorry. Database ball data vault is included when running a license included service on exited clouded customer. So basically to get it with the service. Got it. >>Hi Tom. Thank you so much. It's unbelievable, Bob. I mean, we've got a lot to unpack there, but uh, we're going to give you a break now and go to Tim, Tim chin, zero data loss, recovery appliance. We always love that name. The big guy we think named it, but nobody will tell us, but we've been talking about security. There's been a lot of news around ransomware attacks. Every industry around the globe, any knucklehead with, uh, with a high school diploma could become a ransomware attack or go in the dark web, get, get ransomware as a service stick, a, put a stick in and take a piece of the VIG and hopefully get arrested. Um, with, when you think about database, how do you deal with the ransomware challenge? >>Yeah, Dave, um, that's an extremely important and timely question. Um, we are hearing this from our customers. We just talk about ha and backup strategies and ransomware, um, has been coming up more and more. Um, and the unfortunate thing that these ransoms are actually paid, um, uh, in the hope of the re you know, the, uh, the ability to access the data again. So what that means it tells me is that today's recovery solutions and processes are not sufficient to get these systems back in a reliable and timely manner. Um, and so you have to pay the ransom, right, to get, uh, to get the, even a hope of getting the data back now for databases. This can have a huge impact because we're talking about transactional workloads. And so even a compromise of just a few minutes, a blip, um, can affect hundreds or even thousands of transactions. This can literally represent hundreds of lost orders, right? If you're a big manufacturing company or even like millions of dollars worth of, uh, financial transactions in a bank. Right. Um, and that's why protecting databases at a transaction level is especially critical, um, for ransomware. And that's a huge contrast to traditional backup approaches. Okay. >>So how do you approach that? What do you, what do you do specifically for ransomware protection for the database? >>Yeah, so we have the zero data loss recovery appliance, which we announced the X nine M generation. Um, it is really the only solution in the market, which offers that transaction level of protection, which allows all transactions to be recovered with zero RPO, zero again, and this is only possible because Oracle has very innovative and unique technology called real-time redo, which captures all the transactional changes from the databases by the appliance, and then stored as well by the appliance, moreover, the appliance validates all these backups and reading. So you want to make sure that you can recover them after you've sent them, right? So it's not just a file level integrity check on a file system. That's actual database level of validation that the Oracle blocks and the redo that I mentioned can be restored and recovered as a usable database, any kind of, um, malicious attack or modification of that backup data and transmit that, or if it's even stored on the appliance and it was compromised would be immediately detected and reported by that validation. >>So this allows administrators to take action. This is removing that system from the network. And so it's a huge leap in terms of what customers can get today. The last thing I just want to point out is we call our cyber vault deployment, right? Um, a lot of customers in the industry are creating what we call air gapped environments, where they have a separate location where their backup copies are stored physically network separated from the production systems. And so this prevents ransomware for possibly infiltrating that last good copy of backups. So you can deploy recovery appliance in a cyber vault and have it synchronized at random times when the network's available, uh, to, to keep it in sync. Right. Um, so that combined with our transaction level zero data loss validation, it's a nice package and really a game changer in protecting and recovering your databases from modern day cyber threats. >>Okay, great. Thank you for clarifying that air gap piece. Cause I, there was some confusion about that. Every data protection and backup company that I know as a ransomware solution, it's like the hottest topic going, you got newer players in, in, in recovery and backup like rubric Cohesity. They raised a ton of dough. Dell has got solutions, HPE just acquired Zerto to deal with this problem. And other things IBM has got stuff. Veem seems to be doing pretty well. Veritas got a range of, of recovery solutions. They're sort of all out there. What's your take on these and their strategy and how do you differentiate? >>Yeah, it's a pretty crowded market, like you said. Um, I think the first thing you really have to keep in mind and understand that these vendors, these new and up and coming, um, uh, uh, vendors start in the copy data management, we call CDN space and they're not traditional backup recovery designed are purpose built for the purpose of CDM products is to provide these fast point in time copies for test dev non-production use, and that's a viable problem and it needs a solution. So you create these one time copy and then you create snapshots. Um, after you apply these incremental changes to that copy, and then the snapshot can be quickly restored and presented as like it's a fully populated, uh, file. And this is all done through the underlying storage of block pointers. So all of this kind of sounds really cool and modern, right? It's like new and upcoming and lots of people in the market doing this. Well, it's really not that modern because we've, we know storage, snapshot technologies has been around for years. Right. Um, what these new vendors have been doing is essentially repackaging the old technology for backup and recovery use cases and having sort of an easier to use automation interface wrapped around it. >>Yeah. So you mentioned a copy data management, uh, last year, active FIO. Uh, they started that whole space from what I recall at one point there, they value more than a billion dollars. They were acquired by Google. Uh, and as I say, they kind of created that, that category. So fast forward a little bit, nine months a year, whatever it's been, do you see that Google active FIO offer in, in, in customer engagements? Is that something that you run into? >>We really don't. Um, yeah, it was really popular and known some years ago, but we really don't hear about it anymore. Um, after the acquisition, you look at all the collateral and the marketing, they are really a CDM and backup solution exclusively for Google cloud use cases. And they're not being positioned as for on premises or any other use cases outside of Google cloud. That's what, 90, 90 plus percent of your market there that isn't addressable now by Activia. So really we don't see them in any of our engagements at this time. >>I want to come back and push it a little bit, uh, on some of the tech that you said, it's kind of really not that modern. Uh, I mean it's, if they certainly position it as modern, a lot of the engineers who are building there's new sort of backup and recovery capabilities came from the hyperscalers, whether it's copy data management, you know, the bot mock quote, unquote modern backup recovery, it's kind of a data management, sort of this nice all in one solution seems pretty compelling. How does recovery clients specifically stack up? You know, a lot of people think it's a niche product for, for really high end use cases. Is that fair? How do you see a town? >>Yeah. Yeah. So it's, I think it's so important to just, you know, understand, again, the fundamental use of this technology is to create data copies for test W's right. Um, and that's really different than operational backup recovery in which you must have this ability to do full and point in time recoverability in any production outage or Dr. Situation. Um, and then more importantly, after you recover and your applications are back in business, that performance must continue to meet servers levels as before. And when you look at a CDM product, um, and you restore a snapshot and you say with that product and the application is brought up on that restored snapshot, what happens or your production application is now running on actual read rideable snapshots on backup storage. Remember they don't restore all the data back to the production, uh, level stores. They're restoring it as a snapshot okay. >>Onto their storage. And so you have a huge difference in performance. Now running these applications where they instantly recovered, if you will database. So to meet these true operational requirements, you have to fully restore the files to production storage period. And so recovery appliance was first and foremost designed to accomplish this. It's an operational recovery solution, right? We accomplish that. Like I mentioned, with this real-time transaction protection, we have incremental forever backup strategies. So that you're just taking just the changes every day. And you, you can create these virtual full backups that are quickly restored, fully restored, if you will, at 24 terabytes an hour. And we validate and document that performance very clearly in our website. And of course we provide that continuous recovery validation for all the backups that are stored on the system. So it's, um, it's a very nice, complete solution. >>It scales to meet your demands, hundreds of thousands of databases, you know, it's, um, you know, these CDM products might seem great and they work well for a few databases, but then you put a real enterprise load and these hundreds of databases, and we've seen a lot of times where it just buckles, you know, it can't handle that kind of load in that, uh, in that scale. Uh, and, and this is important because customers read their marketing and read the collateral like, Hey, instant recovery. Why wouldn't I want that? Well, it's, you know, nicer than it looks, you know, it always sounds better. Right. Um, and so we have to educate them and about exactly what that means for the database, especially backup recovery use cases. And they're not really handled well, um, with their products. >>I know I'm like way over. I had a lot of questions on this announcement and I was gonna, I was gonna let you go, Tim, but you just mentioned something that, that gave me one more question if I may. So you talked about, uh, supporting hundreds of thousands of databases. You petabytes, you have real world use cases that, that actually leverage the, the appliance in these types of environments. Where does it really shine? >>Yeah. Let me just give you just two real quick ones. You know, we have a company energy transfer, the major natural gas and pipeline operator in the U S so they are a big part of our country's critical infrastructure services. We know ransomware, and these kinds of threats are, you know, are very much viable. We saw the colonial pipeline incident that happened, right? And so the attack, right, critical services while energy transfer was running, lots of databases and their legacy backup environments just couldn't keep up with their enterprise needs. They had backups taking like, well, over a day, they had restores taking several hours. Um, and so they had problems and they couldn't meet their SLS. They moved to the recovery appliance and now they're seeing backwards complete with that incremental forever in just 15 minutes. So that's like a 48 times improvement in backup time. >>And they're also seeing restores completing in about 30 minutes, right. Versus several hours. So it's a, it's a huge difference for them. And they also get that nice recovery validation and monitoring by the system. They know the health of their enterprise at their fingertips. The second quick one is just a global financial services customer. Um, and they have like over 10,000 databases globally and they, they really couldn't find a solution other than throw more hardware kind of approach to, uh, to fix their backups. Well, this, uh, not that the failures and not as the issues. So they moved to recovery appliance and they saw their failed backup rates go down for Matta plea. They saw four times better backup and restore performance. Um, and they have also a very nice centralized way to monitor and manage the system. Uh, real-time view if you will, that data protection health for their entire environment. Uh, and they can show this to the executive management and auditing teams. This is great for compliance reporting. Um, and so they finally done that. They have north of 50 plus, um, recovery appliances a day across that on global enterprise. >>Love it. Thank you for that. Um, uh, guys, great power panel. We have a lot of Oracle customers in our community and the best way to, to help them is to, I get to ask you a bunch of questions and get the experts to answer. So I wonder if you could bring us home, maybe you could just sort of give us the, the top takeaways that you want to your customers to remember in our audience to remember from this announcement. >>Sure, sorry. Uh, I want to actually pick up from where Tim left off and talk about a real customer use case. This is hot off the press. One of the largest banks in the United States, they decided to, that they needed to update. So performance software update on 3000 of their database instances, which are spanning 68, exited a clusters, massive undertaking, correct. They finished the entire task in three hours, three hours to update 3000 databases and 68 exited a clusters. Talk about availability, try doing this on any other infrastructure, no way anyone's going to be able to achieve this. So that's on terms of the availability, right? We are engineering in all of the aspects of database management, performance, security availability, being able to provide redundancy at every single level is all part of the design philosophy and how we are engineering this product. And as far as we are concerned, the, the goal is for forever. >>We are just going to continue to go down this path of increasing performance, increasing the security aspect of the, uh, of the infrastructure, as well as our Oracle database and keep going on this. You know, this, while these have been great results that we've delivered with extra data X nine M the, the journey is on and to our customers. The biggest advantage that you're going to get from the kind of performance metrics that we are driving with extra data is consolidation consolidate more, move, more database instances onto the extended platform, gain the benefits from that consolidation, reduce your operational expenses, reduce your capital expenses. They use your management expenses, all of those, bring it down to accelerator. Your total cost of ownership is guaranteed to go down. Those are my key takeaways, Dave >>Guys, you've been really generous with your time. Uh Subin uh, uh, uh, Bob, Tim, I appreciate you taking my questions and we'll willingness to go toe to toe, really? Thanks for your time. >>You're welcome, David. Thank you. Thank you. >>And thank you for watching this video exclusive from the cube. This is Dave Volante, and we'll see you next time. Be well.

>> From around the globe, it's theCUBE, with coverage of KubeCon and CloudNativeCon Europe 2021 Virtual. Brought to you by Red Hat, the Cloud Native Computing Foundation and ecosystem partners. >> Hello, welcome back to theCUBE's coverage of KubeCon 2021 CloudNativeCon Europe Virtual, I'm John Furrier your host, preview with Brian Gracely from Red Hat Senior Director Product Strategy Cloud Business Unit Brian Gracely great to see you. Former CUBE host CUBE alumni, big time strategist at Red Hat, great to see you, always great. And also the founder of Cloudcast which is an amazing podcast on cloud, part of the cloud (indistinct), great to see you Brian. Hope's all well. >> Great to see you too, you know for years, theCUBE was always sort of the ESPN of tech, I feel like, you know ESPN has become nothing but highlights. This is where all the good conversation is. It's theCUBE has become sort of the the clubhouse of tech, if you will. I know that's that's an area you're focused on, so yeah I'm excited to be back on and good to talk to you. >> It's funny you know, with all the events going away loved going out extracting the signal from the noise, you know, game day kind of vibe. CUBE Virtual has really expanded, so it's been so much more fun because we can get more people easy to dial in. So we're going to keep that feature post COVID. You're going to hear more about theCUBE Virtual hybrid events are going to be a big part of it, which is great because as you know and we've talked about communities and ecosystems are huge advantage right now it's been a big part of the Red Hat story. Now part of IBM bringing that mojo to the table the role of ecosystems with hybrid cloud is so critical. Can you share your thoughts on this? Because I know you study it, you have podcasts you've had one for many years, you understand that democratization and this new direct to audience kind of concept. Share your thoughts on this new ecosystem. >> Yeah, I think so, you know, we're sort of putting this in the context of what we all sort of familiarly call KubeCon but you know, if we think about it, it started as KubeCon it was sort of about this one technology but it's always been CloudNativeCon and we've sort of downplayed the cloud native part of it. But even if we think about it now, you know Kubernetes to a certain extent has kind of, you know there's this feeling around the community that, that piece of the puzzle is kind of boring. You know, it's 21 releases in, and there's lots of different offerings that you can get access to. There's still, you know, a lot of innovation but the rest of the ecosystem has just exploded. So it's, you know, there are ecosystem partners and companies that are working on edge and miniaturization. You know, we're seeing things like Kubernetes now getting into outer space and it's in the space station. We're seeing, you know, Linux get on Mars. But we're also seeing, you know, stuff on the other side of the spectrum. We're sort of seeing, you know awesome people doing database work and streaming and AI and ML on top of Kubernetes. So, you know, the ecosystem is doing what you'd expect it to do once one part of it gets stable. The innovation sort of builds on top of it. And, you know, even though we're virtual, we're still seeing just tons and tons of contributions, different companies different people stepping up and leading. So it's been really cool to watch the last few years. >> Yes, interesting point about the CloudNativeCon. That's an interesting insight, and I totally agree with you. And I think it's worth double clicking on. Let me just ask you, because when you look at like, say Kubernetes, okay, it's enabled a lot. Okay, it's been called the dial tone of Cloud native. I think Pat Gelsinger of VMware used that term. We call it the kind of the interoperability layer it enables more large scale deployments. So you're seeing a lot more Kubernetes enablement on clusters. Which is causing more hybrid cloud which means more Cloud native. So it actually is creating a network effect in and of itself with more Cloud native components and it's changing the development cycle. So the question I want to ask you is one how does a customer deal with that? Because people are saying, I like hybrid. I agree, Multicloud is coming around the corner. And of course, Multicloud is just a subsystem of resource underneath hybrid. How do I connect it all? Now I have multiple vendors, I have multiple clusters. I'm cross-cloud, I'm connecting multiple clouds multiple services, Kubernetes clusters, some get stood up some gets to down, it's very dynamic. >> Yeah, it's very dynamic. It's actually, you know, just coincidentally, you know, our lead architect, a guy named Clayton Coleman, who was one of the Kubernetes founders, is going to give a talk on sort of Kubernetes is this hybrid control plane. So we're already starting to see the tentacles come out of it. So you know how we do cross cloud networking how we do cross cloud provisioning of services. So like, how do I go discover what's in other clouds? You know and I think like you said, it took people a few years to figure out, like how do I use this new thing, this Kubernetes thing. How do I harness it. And, but the demand has since become "I have to do multi-cloud." And that means, you know, hey our company acquires companies, so you know, we don't necessarily know where that next company we acquire is going to run. Are they going to run on AWS? Are they going to, you know, run on Azure I've got to be able to run in multiple places. You know, we're seeing banking industries say, "hey, look cloud's now a viable target for you to put your applications, but you have to treat multiple clouds as if they're your backup domains." And so we're, you know, we're seeing both, you know the way business operates whether it's acquisitions or new things driving it. We're seeing regulations driving hybrid and multi-cloud and, even you know, even if the stalwart were to you know, set for a long time, well the world's only going to be public cloud and sort of you know, legacy data centers even those folks are now coming around to "I've got to bring hybrid to, to these places." So it's been more than just technology. It's been, you know, industries pushing it regulations pushing it, a lot of stuff. So, but like I said, we're going to be talking about kind of our future, our vision on that, our future on that. And, you know Red Hat everything we end up doing is a community activity. So we expect a lot of people will get on board with it >> You know, for all the old timers out there they can relate to this. But I remember in the 80's the OSI Open Systems Interconnect, and I was chatting with Paul Cormier about this because we were kind of grew up through that generation. That disrupted network protocols that were proprietary and that opened the door for massive, massive growth massive innovation around just getting that interoperability with TCP/IP, and then everything else happened. So Kubernetes does that, that's a phenomenal impact. So Cloud native to me is at that stage where it's totally next-gen and it's happening really fast. And a lot of people getting caught off guard, Brian. So you know, I got to to ask you as a product strategist, what's your, how would you give them the navigation of where that North star is? If I'm a customer, okay, I got to figure out where I got to navigate now. I know it's super volatile, changing super fast. What's your advice? >> I think it's a couple of pieces, you know we're seeing more and more that, you know, the technology decisions don't get driven out of sort of central IT as much anymore right? We sort of talk all the time that every business opportunity, every business project has a technology component to it. And I think what we're seeing is the companies that tend to be successful with it have built up the muscle, built up the skill set to say, okay, when this line of business says, I need to do something new and innovative I've got the capabilities to sort of stand behind that. They're not out trying to learn it new they're not chasing it. So that's a big piece of it, is letting the business drive your technology decisions as opposed to what happened for a long time which was we built out technology, we hope they would come. You know, the other piece of it is I think because we're seeing so much push from different directions. So we're seeing, you know people put technology out at the edge. We're able to do some, you know unique scalable things, you know in the cloud and so forth That, you know more and more companies are having to say, "hey, look, I'm not, I'm not in the pharmaceutical business. I'm not in the automotive business, I'm in software." And so, you know the companies that realize that faster, and then, you know once they sort of come to those realizations they realize, that's my new normal, those are the ones that are investing in software skills. And they're not afraid to say, look, you know even if my existing staff is, you know, 30 years of sort of history, I'm not afraid to bring in some folks that that'll break a few eggs and, you know, and use them as a lighthouse within their organization to retrain and sort of reset, you know, what's possible. So it's the business doesn't move. That's the the thing that drives all of them. And it's, if you embrace it, we see a lot of success. It's the ones that, that push back on it really hard. And, you know the market tends to sort of push back on them as well. >> Well we're previewing KubeCon CloudNativeCon. We'll amplify that it's CloudNativeCon as well. You guys bought StackRox, okay, so interesting company, not an open source company they have soon to be, I'm assuring, but Advanced Cluster Security, ACS, as it's known it's really been a key part of Red Hat. Can you give us the strategy behind that deal? What does that product, how does it fit in that's a lot of people are really talking about this acquisition. >> Yeah so here's the way we looked at it, is we've learned a couple of things over the last say five years that we've been really head down in Kubernetes, right? One is, we've always embedded a lot of security capabilities in the platform. So OpenShift being our core Kubernetes platform. And then what's happened over time is customers have said to us, "that's great, you've made the platform very secure" but the reality is, you know, our software supply chain. So the way that we build applications that, you know we need to secure that better. We need to deal with these more dynamic environments. And then once the applications are deployed they interact with various types of networks. I need to better secure those environments too. So we realized that we needed to expand our functionality beyond the core platform of OpenShift. And then the second thing that we've learned over the last number of years is to be successful in this space, it's really hard to take technology that wasn't designed for containers, or it wasn't designed for Kubernetes and kind of retrofit it back into that. And so when we were looking at potential acquisition targets, we really narrowed down to companies whose fundamental technologies were you know, Kubernetes-centric, you know having had to modify something to get to Kubernetes, and StackRox was really the leader in that space. They really, you know have been the leader in enterprise Kubernetes security. And the great thing about them was, you know not only did they have this Kubernetes expertise but on top of that, probably half of their customers were already OpenShift customers. And about 3/4 of their customers were using you know, native Kubernetes services and other clouds. So, you know, when we went and talked to them and said, "Hey we believe in Kubernetes, we believe in multi-cloud. We believe in open source," they said, "yeah, those are all the foundational things for us." And to your point about it, you know, maybe not being an open source company, they actually had a number of sort of ancillary projects that were open source. So they weren't unfamiliar to it. And then now that the acquisition's closed, we will do what we do with every piece of Red Hat technology. We'll make sure that within a reasonable period of time that it's made open source. And so you know, it's good for the community. It allows them to keep focusing on their innovation. >> Yeah you've got to get that code out there cool. Brian, I'm hearing about Platform Plus what is that about? Take us through that. >> Yeah, so you know, one of the things that our customers, you know, have come to us over time is it's you know, it's like, I've been saying kind of throughout this discussion, right? Kubernetes is foundational, but it's become pretty stable. The things that people are solving for now are like, you highlighted lots and lots of clusters, they're all over the place. That was something that our advanced cluster management capabilities were able to solve for people. Once you start getting into lots of places you've got to be able to secure things everywhere you go. And so OpenShift for us really allows us to bundle together, you know, sort of the complete set of the portfolio. So the platform, security management, and it also gives us the foundational pieces or it allows our customers to buy the foundational pieces that are going to help them do multi and hybrid cloud. And, you know, when we bundle that we can save them probably 25% in terms of sort of product acquisition. And then obviously the integration work we do you know, saves a ton on the operational side. So it's a new way for us to, to not only bundle the platform and the technologies but it gets customers in a mindset that says, "hey we've moved past sort of single environments to hybrid and multi-cloud environments. >> Awesome, well thanks for the update on that, appreciate it. One of the things going into KubeCon, and that we're watching closely is this Cloud native developer action. Certainly end users want to get that in a separate section with you but the end user contribution, which is like exploding. But on the developer side there's a real trend towards adding stronger consistency programmability support for more use cases okay. Where it's becoming more of a data platform as a requirement. >> Brian: Right. >> So how, so that's a trend so I'm kind of thinking, there's no disagreement on that. >> Brian: No, absolutely. >> What does that mean? Like I'm a customer, that sounds good. How do I make that happen? 'Cause that's the critical discussion right now in the DevOps, DevSecOps day, two operations. What you want to call it. This is the number one concern for developers and that solution architect, consistency, programmability more use cases with data as a platform. >> Yeah, I think, you know the way I kind of frame this up was you know, for any for any organization, the last thing you want to to do is sort of keep investing in lots of platforms, right? So platforms are great on their surface but once you're having to manage five and six and, you know 10 or however many you're managing, the economies of scale go away. And so what's been really interesting to watch with Kubernetes is, you know when we first got started everything was Cloud native application but that really was sort of, you know shorthand for stateless applications. We quickly saw a move to, you know, people that said, "Hey I can modernize something, you know, a Stateful application and we add that into Kubernetes, right? The community added the ability to do Stateful applications and that got people a certain amount of the way. And they sort of started saying, okay maybe Kubernetes can help me peel off some things of an existing platform. So I can peel off, you know Java workloads or I can peel off, what's been this explosion is the data community, if you will. So, you know, the TensorFlows the PItorches, you know, the Apache community with things like Couchbase and Kafka, TensorFlow, all these things that, you know maybe in the past didn't necessarily, had their own sort of underlying system are now defaulting to Kubernetes. And what we see because of that is, you know people now can say, okay, these data workloads these AI and ML workloads are so important to my business, right? Like I can directly point to cost savings. I can point to, you know, driving innovation and because Kubernetes is now their default sort of way of running, you know we're seeing just sort of what used to be, you know small islands of clusters become these enormous footprints whether they're in the cloud or in their data center. And that's almost become, you know, the most prevalent most widely used use case. And again, it makes total sense. It's exactly the trends that we've seen in our industry, even before Kubernetes. And now people are saying, okay, I can consolidate a lot of stuff on Kubernetes. I can get away from all those silos. So, you know, that's been a huge thing over the last probably year plus. And the cool thing is we've also seen, you know the hardware vendors. So whether it's Intel or Nvidia, especially around GPUs, really getting on board and trying to make that simpler. So it's not just the software ecosystem. It's also the hardware ecosystem, really getting on board. >> Awesome, Brian let me get your thoughts on the cloud versus the power dynamics between the cloud players and the open source software vendors. So what's the Red Hat relationship with the cloud players with the hybrid architecture, 'cause you want to set up the modern day developer environment, we get that right. And it's hybrid, what's the relationship with the cloud players? >> You know, I think so we we've always had two philosophies that haven't really changed. One is, we believe in open source and open licensing. So you haven't seen us look at the cloud as, a competitive threat, right? We didn't want to make our business, and the way we compete in business, you know change our philosophy in software. So we've always sort of maintained open licenses permissive licenses, but the second piece is you know, we've looked at the cloud providers as very much partners. And mostly because our customers look at them as partners. So, you know, if Delta Airlines or Deutsche Bank or somebody says, "hey that cloud provider is going to be our partner and we want you to be part of that journey, we need to be partners with that cloud as well." And you've seen that sort of manifest itself in terms of, you know, we haven't gone and set up new SaaS offerings that are Red Hat offerings. We've actually taken a different approach than a lot of the open source companies. And we've said we're going to embed our capabilities, especially, you know OpenShift into AWS, into Azure into IBM cloud working with Google cloud. So we'd look at them very much as a partner. I think it aligns to how Red Hat's done things in the past. And you know, we think, you know even though it maybe easy to sort of see a way of monetizing things you know, changing licensing, we've always found that, you've got to allow the ecosystem to compete. You've got to allow customers to go where they want to go. And we try and be there in the most consumable way possible. So that's worked out really well for us. >> So I got to bring up the end user participation component. That's a big theme here at KubeCon going into it and around the event is, and we've seen this trend happen. I mean, Envoy, Lyft the laying examples are out there. But they're more end-use enterprises coming in. So the enterprise class I call classic enterprise end user participation is at an all time high in opensource. You guys have the biggest portfolio of enterprises in the business. What's the trend that you're seeing because it used to be limited to the hyperscalers the Lyfts and the Facebooks and the big guys. Now you have, you know enterprises coming in the business model is working, can you just share your thoughts on CloudNativeCons participation for end users? >> Yeah, I think we're definitely seeing a blurring of lines between what used to be the Silicon Valley companies were the ones that would create innovation. So like you mentioned Lyft, or, you know LinkedIn doing Kafka or Twitter doing you know, whatever. But as we've seen more and more especially enterprises look at themselves as software companies right. So, you know if you talk about, you know, Ford or Volkswagen they think of themselves as a software company, almost more than they think about themselves as a car company, right. They're a sort of mobile transportation company you know, something like that. And so they look at themselves as I've got to I've got to have software as an expertise. I've got to compete for the best talent, no matter where that talent is, right? So it doesn't have to be in Detroit or in Germany or wherever I can go get that anywhere. And I think what they really, they look for us to do is you know, they've got great technology chops but they don't always understand kind of the the nuances and the dynamics of open-source right. They're used to having their own proprietary internal stuff. And so a lot of times they'll come to us, not you know, "Hey how do we work with the project?" But you know like here's new technology. But they'll come to us and they'll say "how do we be good, good stewards in this community? How do we make sure that we can set up our own internal open source office and have that group, work with communities?" And so the dynamics have really changed. I think a lot of them have, you know they've looked at Silicon Valley for years and now they're modeling it, but it's, you know, for us it's great because now we're talking the same language, you know we're able to share sort of experiences we're able to share best practices. So it is really, really interesting in terms of, you know, how far that whole sort of software is eating the world thing is materialized in sort of every industry. >> Yeah and it's the workloads of expanding Cloud native everywhere edge is blowing up big time. Brian, final question for you before we break. >> You bet. >> Thanks for coming on and always great to chat with you. It's always riffing and getting the data out too. What's your expectation for KubeCon CloudNativeCon this year? What are you expecting to see? What highlights do you expect will come out of CloudNativeCon KubeCon this year? >> Yeah, I think, you know like I said, I think it's going to be much more on the Cloud native side, you know we're seeing a ton of new communities come out. I think that's going to be the big headline is the number of new communities that are, you know have sort of built up a following. So whether it's Crossplane or whether it's, you know get-ops or whether it's, you know expanding around the work that's going on in operators we're going to see a whole bunch of projects around, you know, developer sort of frameworks and developer experience and so forth. So I think the big thing we're going to see is sort of this next stage of, you know a thousand flowers are blooming and we're going to see probably a half dozen or so new communities come out of this one really strong and you know the trends around those are going to accelerate. So I think that'll probably be the biggest takeaway. And then I think just the fact that the community is going to come out stronger after the pandemic than maybe it did before, because we're learning you know, new ways to work remotely, and that, that brings in a ton of new companies and contributors. So I think those two big things will be the headlines. And, you know, the state of the community is strong as they, as they like to say >> Yeah, love the ecosystem, I think the values are going to be network effect, ecosystems, integration standards evolving very quickly out in the open. Great to see Brian Gracely Senior Director Product Strategy at Red Hat for the cloud business unit, also podcasts are over a million episode downloads for the cloud cast podcast, thecloudcast.net. What's it Brian, what's the stats now. >> Yeah, I think we've, we've done over 500 shows. We're you know, about a million and a half listeners a year. So it's, you know again, it's great to have community followings and, you know, and meet people from around the world. So, you know, so many of these things intersect it's a real pleasure to work with everybody >> You're going to create a culture, well done. We're all been there, done that great job. >> Thank you >> Check out the cloud cast, of course, Red Hat's got the great OpenShift mojo going on into KubeCon. Brian, thanks for coming on. >> Thanks John. >> Okay so CUBE coverage of KubeCon, CloudNativeCon Europe 2021 Virtual, I'm John Furrier with theCUBE virtual. Thanks for watching. (upbeat music)

>> Narrator: From around the globe, it's theCUBE with digital coverage of AnsibleFest 2020, brought to you by Red Hat. >> The ascendancy of massive clouds underscored the limits of human labor. People, they simply don't scale at the pace of today's technology. And this trend created an automation mandate for IT which has been further accentuated by the pandemic. The world is witnessing the build-out of a massively distributed system that comprises on-prem apps, public clouds and edge computing. The challenge we face is how to go from managing things you can see and touch to cost effectively managing, securing and scaling these vast systems. It requires an automation first mindset. Hello, everyone. This is Dave Vellante and welcome back to AnsibleFest 2020. We have a great panel to wrap up this show. With me are our three excellent guests and CUBE alums. Ashesh Badani is the Senior Vice President of Cloud Platforms at Red Hat. Ashesh, good to see you again. Thanks for coming on. >> Yeah, likewise. Thanks for having me on again, Dave. >> Stefanie Chiras is Vice President and General Manager of the RHEL Business Unit and my sports buddy. Stefanie, glad to see you back in the New England area. I knew you'd be back. >> Yeah, good to see you, Dave. Thanks for having us today. >> You're very welcome. And then finally, Joe Fitzgerald, longtime CUBE alum, Vice President and General Manager of the Management Business Unit at Red Hat. Joe, good to see you. >> Hey, Dave, good to be here with you. >> Ashesh, I'm going to start with you. Lay out the big picture for us. So how do you see this evolution to what we sometimes talk about as hybrid cloud, but really truly a hybrid cloud environment across these three platforms that I just talked about? >> Yeah, let me start off by echoing something that most of your viewers have probably heard in the past. There's always this notion about developers, developers, developers. And you know, that still holds true. We aren't going away from that anymore. Developers are the new kingmakers. But increasingly, as the scope and complexity of applications and services that are deployed in this heterogeneous environment increases, it's more and more about automation, automation, automation. In the times we live in today, even, you know, before dealing with the crises that, you know, we have, just the sheer magnitude of requirements that are being placed on enterprises and expectations from customers require us to be more and more focused on automating tasks which humans just can't keep up with. So you know, as we look forward, this conversation here today, you know, what Ansible's doing, you know, is squarely aimed at dealing with this complexity that we all face. >> So Stefanie, I wonder if you could talk about what it's going to take to implement what I call this true hybrid cloud, this connection and management of this environment. RHEL is obviously a key piece of that. That's going to be your business unit, but take us through your thoughts there. >> Yeah, so I'm kind of building on what Ashesh said. When we look at this hybrid cloud world, right, which now hybrid is much more than it was considered five years ago. It used to be hybrid was on-prem versus off-prem. Now, hybrid translates to many layers in the stack. It can be VMs hybrid with containers. It can be on-prem with off-prem and clearly with edge involved, as well. Whenever you start to require the ability to bridge across these, that's where we focus on having a platform that allows you to access sort of all of those and be able to deploy your applications in a simple way. When I look at what customers require, it's all about speed of deploying applications, right, build, deploy and run your applications. It's about stability, which is clearly where we're focused on RHEL being able to provide that stability across multiple types of hybrid deployment models. And third is all about scale. It is absolutely all about scale and that's across multiple ranges in hybrid, be it on-prem, off-prem, edge and that's where all of this automation comes in, so to me, it's really about where do you make those strategic decisions that allow you to choose, right, for the flexibility that you need and still be able to deploy applications with speed, have that stability, resiliency, and be able to scale. >> So Joe, let's talk about your swim lane and it's weird to even use that term, right? 'Cause as Stefanie just said, we're kind of breaking down all these silos that we talk in terms of platform, but how do you see this evolving, and specifically, what's the contribution from a management perspective? >> Right, so Stefanie and Ashesh talked about sort of speed, scale and complexity. Right, people are trying to deploy things faster or larger scale, and oh, by the way, keep everything highly available and secure. That's a challenge, right? And so, you know, interestingly enough, Red Hat, about five years ago, we recognized that automation was going to be a problem as people were moving into open hybrid clouds, which we've been working with our customers for years on. And so we acquired this small company called Ansible, which had some really early emerging technology, all open source, right, to do automation. And what we've done over the past five years is we've really amplified that automation and amplified the innovation in that community to be able to provide automation across a wide array of domains that you need to automate, right, and to be able to plug that in to all the different processes that people need in order to be able to go faster, but to track, manage, secure and govern these kind of environments. So we made this bet years ago and it's paying off for Red Hat in very big ways. >> I mean, no doubt about it. I mean, when you guys bought Ansible, so it wasn't clear that it was going to be the clear leader. It is now. I mean, it's pulled ahead of Chef, Puppet. You saw, you know, VMware bought Salt, but I mean, Ansible very clearly has, based on our surveys, the greatest market momentum. We're going to talk about that. I know some of the other analysts have chimed in on this, but let me come back to this notion of on-prem and cloud and edge and this is complicated. I mean, the edge, it's kind of its own island, isn't it? I mean, you got the IT and the OT schism, so maybe you could talk a little bit about how you see those worlds coming together, the cloud, the on-prem, the edge. Maybe Stefanie, you can start. >> Yeah, I think the magic, Dave, is going to happen when it's not its own island, right, as we start to see this world driven by data cause the spread of a data center to be really dis-aggregated and allow that compute to move out closer to the data, the magic happens when it doesn't feel like an island, right, that's the beauty and the promise of hybrid. So when you start to look at what can you provide that is consistent that serves as a single language that you can talk to from on-prem, off-prem and edge, you know, it all comes down to, for us, having a platform that you can build once and deploy across all of those, but the real delicacy with edge is there are some different deployment models. I think that comes into deployment space and we're clearly getting feedback from customers. We're working on some capabilities where edge requires some different deployment models in the ways you update, et cetera, and thanks to all of you out there who are working with us upstream in order to deliver that. And I think the second place where it's unique is in this ability to manage and automate out at the edge, but our goal is certainly at our platform levels, whether it be on RHEL, whether it be on OpenShift to provide that consistent platform that allows you that ease of deployment, then you got to manage and automate it and that's where the whole Ansible and the ecosystem really plays in. You need that ecosystem and that's always what I love about AnsibleFest is this community comes together and it's a vibrant community, for sure. >> Well, I mean, Ashesh, you guys are betting big on this and I often think of the cloud is just this one big cloud. You got the on-prem cloud, you got the public clouds. Edge becomes just an extension of that cloud. Is that how you think about it and what is it actually going to take to make that edge not an island? >> Yeah, great point, Dave, and that's exactly how we think about it. We've always thought about our vision of the cloud as being a platform and abstraction that spans all the underlying infrastructure that the user can take advantage of, so if it happens to reside in a data center, some in a private cloud running off a data center, more increasingly in the public cloud setting, and as Stefanie called out, we're also starting to see edge deployments come in. We're seeing, you know, big build-outs in the work we're doing with telecom providers from a 5G perspective that's helping drive that. We're seeing, if you will, IOT-like opportunities with, let's say, the automotive sector or some in the retail sector, as well. And so this fabric, if you will, needs to span this entire set of deployment that a customer will take advantage of. And Joe started touching on this a little bit, right, with this notion of the speed, scale and complexity, so we see this platform needing to expand to all these footprints that customers are using. At the same time, the requirements that they have, even when they're going out the edge, is the same with regard to what they see in the data center and the public cloud, so putting all that together really is our sweet spot. That's our focus. And to the point you're making, Dave, that's where we're making a huge bet across all of Red Hat. >> So I mentioned, you know, some of our research and I do these breaking analysis segments every week and recently I was digging into cloud and specifically was interested in hybrid and multi. And you know, hybrid been I think pretty well understood for awhile. Multi I think was a lot of, you know, a lot of talk, but it's becoming real and the data really shows that. It shows OpenShift and Ansible have momentum. I mentioned that before. Yeah, you know, obviously VMware is there, but clearly Red Hat is well positioned specifically in multicloud and hybrid. And I know some of the other analyst firms have picked up on this. What are you guys seeing in the market? Maybe Joe, you can chime in and Ashesh, you can maybe add some color. >> Yeah, so you know, there's a lot of fashion, right, around hybrid and multicloud today, so every vendor is jumping on with multicloud storing. And you know, a lot of the vendors' strategies are, pick my solution and vertically use my stuff in the public cloud on-premise, maybe even at the edge, right, and you'll be fine. And you know, obviously customers don't like lock-in. They like to be able to take advantage of the best services, availability, security, different things that are available in each of these different clouds, right? So there is a strong preference for hybrid and multicloud. Red Hat is sort of the Switzerland of hybrid and multicloud because we enable you to run your workloads across all these different substrates, whether it's in public clouds, multiple, right, into the data center and physical, virtual, bare metal, out to the edge and edge is not a single homogeneous, you know, set of hardware or even implementation. It varies a lot by vertical, so you have a lot of diversity, right? And so Red Hat is really good at helping provide the platforms like OpenShift and RHEL that are going to provide that consistency across those different environments or also in the case of Ansible to provide automation that's going to match the physics of management and automation that are required across each of those different environments. Trust me, managing or automating something at the edge and with very small footprint of some device across the constraint network is very, very different than managing things in a public cloud or in a data center and that's where I think Red Hat is really focused and that's our sweet spot, helping people manage those environments. >> And Ashesh, you guys have obviously put a lot of effort there. If you could maybe comment. >> Yeah, I was just going to say, Dave, I'll add just really quickly to what Joe said. He said it well. But the thing I will add is the way for us to succeed here is to follow the user, follow the customer. Right, instead of us just coming out with regard to what we believe the path to be, you know, we're really kind of working closely with the actual customers that we have. So for example, recently been working with a large water utility in Italy, but they're thinking about, you know, the world that they live in and how can they go off and, you know, have kiosks that are spread throughout Italy, able to provide reports with regard to the quality of the water that's available, as well as other services to all their citizens. But it's really interesting use case for us to go off and pursue because in some sense, you can ask yourself, well, is that public cloud? Are they going to take advantage of those services? Is that, you know, private cloud? Is that data center, is that IOT, is that edge? At a certain point in time, what you've got to think about is, well, we've got to provide integrated end-to-end solution that spans all of these different worlds, and so as long as I think we keep that focus, as long as we make sure our North Star is really what the user's trying to do, what problem they're trying to solve, I think we'll come out just fine on the other side of this. >> So I'd love to get all your thoughts, all three of you, on just what's going on in containers, generally, Kubernetes, specifically. I mean, everybody knows it's a hot space and the data shows that it is maturing, but it's amazing to me how much momentum it still has. I mean, it's like the new shiny toy, but it's everywhere and so it's able to sort of maintain that velocity and it's really becoming the go-to cloud native development platform, so the question is how is Red Hat, you know, helping your customers connect OpenShift to the rest of their IT infrastructure, platforms, their processes, the tools. I mean, who wants to start? I'd love to hear from all three of you. Ashesh, why don't you kick it off and then we'll just go left to right. >> So Dave, we've spoken to you and to folks the CUBE, as well, other for many years on this. We've made a huge investment in the Kubernetes market and been one of the earliest to do that and we continue to believe in the promise that it delivers to users, this notion of being able to have an environment that customers can use regardless of the underlying choices that they make. Here's an extremely powerful one, it's truly an open source, right? This is key to, you know, what we do. Increasingly, what we're working on is to ensure that one, if you make a commitment to Kubernetes and increasingly we see lots of customers around the world doing that, that we ensure that we're working closely, that our entire portfolio helps support that. So if you're going to make a choice with regard to Kubernetes base deployment, we help support you running it yourself wherever it is that you choose to run it, we help support you whether you choose to have us manage on your behalf and then also make sure we're providing an entire portfolio of services, both within Red Hat as well as from third parties so that you have the most productive, integrated experience possible. >> Okay, and Stefanie, loved your point of view on this, and Joe, I'd love to understand how you're bridging kind of the Ansible and Kubernetes communities, but Stefanie, why don't you chime in first? >> Yeah, I'll quickly add to what Ashesh said and talked about well on really the promise and the value of containers, but particularly from a RHEL perspective, we have taken all our capabilities and knowledge in the Linux space and we have taken that to apply it to OpenShift, right, because Kubernetes and containers is just another way to deploy Linux, so making sure that that underpinning is stable, secure and resilient and tied to an ecosystem, right? An ecosystem of various architectures, an ecosystem of ISVs and tooling, right? We've pulled that together and everything we've done in Linux for, you know, over decades now at Red Hat and we've put that into that customer experience around OpenShift to deploy containers, so we've really built, it has been a portfolio-wide effort, as Ashesh alluded to, and of course, it passes over to Ansible as well with Joe's portfolio. >> Yeah, we talked about this upfront, Joe. The communities are so crucial, so how are you bridging those Ansible and Kubernetes communities? What's your thought on that? >> Well, a quick note about those communities. So you know, OpenShift is built on Kubernetes and a number of other projects. Kubernetes is number seven in the top 10 open source projects based on the number of contributors. Turns out Ansible is number nine, right? So if you think about it, these are two incredibly robust communities, right? On the one hand, building the container platform in Kubernetes and in the other around Ansible and automation. It turns out that as the need for this digital acceleration and building these container-based applications comes along, there's a lot of other things that have to be done when you deploy container-based applications, whether it's infrastructure automation, right, to expand and manage and automate the infrastructure that you're running your container-based applications on, creating more clusters, you know, configuring storage, network, you know, counts, things like that, but also connecting to other systems in the environment that need to be integrated with around, you know, ITSM or systems of record, change management, inventory, cost, things like that, so what we've done is we've integrated Ansible, right, in a very powerful way with OpenShift through our advanced cluster management capability, which allows us to provide an easy way to instrument Ansible during critical points, whether it's you're deploying new clusters out there or you're deploying a new version of an application or a new application for the first time, whether you're checking policy, right, to ensure that, you know, the thing is secure and that, you know, you can govern these environments, right, that you're relying on. So we've really now tied together two sort of de facto standards, OpenShift built on Kubernetes and a number of other projects and then Ansible, or Red Hat, has taken this innovation in the community and created these certified content collections, platforms and capabilities that people can actually build and rely on and know that it's going to work. >> Ashesh, I mean, Red Hat has earned the right, really, to play in both the cloud native world and of course the traditional infrastructure world, but I'm interested in what you're seeing there, how you're bringing those two worlds together. Are they still, you know, largely separate? Are you seeing traditional IT? I mean, you're certainly seeing them lean in to more and more cloud native, but what are you guys doing specifically to kind of bring those worlds together? >> Yeah, increasingly it's really hard to be able to separate out those worlds, right? So in the past, we used to call it shadow IT. There really is no shadow IT anymore, right? This is IT. So we've embraced that completely. You know, our take on that is to say there are certain applications that are going to be appropriate for being run in a data center a certain way. There are certain other workloads that'll find their way appropriate for the public cloud. We want to make sure we're meeting them across, but what we want to do is constantly introduce technologies to help support the choices customers make. What do I mean by that? Let me give a couple examples. One is, you know, we can say customers have VMs that are based out in specific environments and they can only run as VMs. That code can't be containerized for a variety of reasons, right? You know, hard to re-architect that, don't have the funds, you know, have certain security compliance reasons. Well, what if we could take those VMs and then have them be run in containers in a native fashion? Wouldn't that be extremely powerful value proposition to run containers and then VMs as containers sort of side by side with Kubernetes orchestrating them all. So that's a capability we call open source virtualization. We've introduced that and made that generally available within our platform. Another one, which I think Joe starting to touch on a little bit here, is both around this notion of Ansible, as well as advanced cluster management. And say, once technologies like Ansible are familiar to our customers, how about if we find ways to introduce things like the operator framework to help support people's use of Ansible and introduce technologies like advanced cluster management, which allows for us to say, well, regardless of where you run your clusters, whether you run your Kubernetes clusters on premise, you run them in the cloud, right, we can imagine a consistent fashion and manage, you know, health and policy and compliance of applications across that entire state. So David, question's extremely good one, right, but what we are trying to do is try to be able to say, you know, we are going to just span those two worlds and provide as many tools as possible to ensure that customers feel like, you know, the shift, if you will, or the move between traditional enterprise software application development and the more modern cloud native can be bridged as seamlessly as possible. >> Yeah, Joe, we heard a lot of this at AnsibleFest, so the ACM as a key component of your innovation, and frankly, your competitive posture. Anything you would add to what Ashesh just shared? >> Well, I think that one of the things that Red Hat is really good at is we take management and automation as sort of an intrinsic part of what needs to go on. It's not an afterthought. You just don't go build something, go, "Oh I need management," go out and, you know, go get something, right, so we've been working on, sort of automation and management for many, many years, right, so we build it in concert with these platforms, right, and we understand the physics of these different environments, so we're very focused on that from inception, as opposed to an afterthought when people sort of paint themselves into a corner or have management challenges they can't deal with. >> There's a lot of analogs in our business, isn't there? Management is a bolt-on and security is a bolt-on. It just doesn't work that well and certainly doesn't scale. Stefanie, I want to come back to you and I want to come back to the edge. We hear a lot of people talking about extending their deployments to the edge in the future. I mean, you look at what IBM's doing. They're essentially betting its business on RHEL and OpenShift and betting that its customers are going to do the same as well are you. Maybe talk about, you know, what you're doing to specifically extend RHEL to the edge. >> Yeah, Dave, so we've been looking at this space consistent with our strategy, as Ashesh talked about, right? Our goal is to make sure that it all looks and feels the same and provides one single Linux experience. We've been building on a number of those aspects for quite some time, things like being able to deal with heterogeneous architectures, as an example, being able to deal with, you know, having Arm components and x86 components and power components and being able to leverage all of that from multiple vendors and being able to deploy. Those are things we've been focused on for a long time and now when you move into the space of the edge, certainly we're seeing, you know, essentially data center level hardware move out to be dis-aggregated and dispersed as they move it closer to the data and where that's coming in and where the analysis needs to be done, but some of those foundational things that we've been working on for years starts to pay off because the edge tends to be more heterogeneous all the way from an architecture level to an application level, so now we're seeing some asks. We've been working upstream in order to pull in some features that drive capabilities around specifically updating, deploying those updates, doing rollbacks and things like that, so we're focused on that. But really, it's about pulling together the capabilities of having multiple architectures, dealing with heterogeneous infrastructure out there at the edge, being able to reliably deploy it even when, for example, we have customers who they deploy their hardware and they can't touch it for years. How do they make sure that that's out there in a stable environment that they can count on? And then, you know, adding in things like containerization. We talked about the magic of that, being able to deploy an application consistently and being able to deploy a single container out there to the edge. We're thinking about it all the way from the architecture up to how the application gets deployed and it's going to take the whole portfolio to do that as you need to manage it, as you need to deploy containers, so it's a focus across the company for how we deal with that. >> And as we were talking about before, you know, it takes a village. You know that bromide, but it does, requires an ecosystem of jobs. I mean, there's some real technical challenges in R&D that has to happen. I mean, you've got to be, you know, you're talking about cloud native in all three different clouds, and you know, and not just the big three, but other clouds and then bringing that to the edge, so there's some clear technical challenges, but there's also some business challenges out there. So you know, what are you seeing in that regard? You know, what are some of those things that you hope to solve by bridging that gap? >> Well, I think one of the things we're trying to do and I'm focused on the management and automation side is to provide a common set of management tooling of automation, right, and I think Ansible fits that quite well. So for the past five years since Ansible's been part of Red Hat, we've expanded from, you know, they started off initially doing configuration management, right? We've expanded to include, you know, network and storage and security, now edge. At AnsibleFest, we demonstrated things like serverless event-driven automation, right, building an OpenShift serverless in Knative. We're trying to expand the use cases for Ansible so that there's a simplicity, there's a tool reduction, right, across all these environments and you don't have to go deal with nine vendors, and you know, 17 different tools to try to manage each element here to be able to provide a common set. It reduces complexity, cost and allows skills to be able to be reused across these different areas. It's going to all be about digital acceleration, right, and reducing that complexity. And one last comment. One of the reasons we bought Ansible years ago is the architecture, it's agent-less. Many of our competitors that you hear, the first thing they want to do is go deploy an agent somewhere and that creates its own ongoing burden of, do I have the latest version of the agent? Is it secure? Does it fit on the device? As Stefanie mentioned, is there a version that fits on the architecture the device is running on? It starts getting really, really complicated. So Ansible is just simple, elegant, agent-less. We've expanded the domains we can automate with it and we've expanded sort of the modality. How can I call it? User, driven by an event, as part of some life cycle management, app deployment, Ansible plugs right in. >> Well, Joe, you can tell you're a management guy, right? Agents, another thing that has to be managed. You just laundry list of stuff. (laughs) I want to come back to this notion Joe just touched on, this digital transformation. They say, "If it ain't broke, don't fix it." Well, COVID broke everything. And I got to say, I mean, all the talk about digital transformation over the last, you know, several years, yes, it was certainly happening, but there was also a lot of lip service going on and now if you're not digital, you're out of business. And so, you know, given everything that we've seen in the last, you know, whatever, 150, 200 days or so, what's the impact that you're seeing on customers' digital transformation initiatives, and you know, what is Red Hat doing to respond? Maybe Ashesh, you could start and we can get feedback from the others. >> Yeah, David, it's an unfortunate thing to say, right, but there's that meme going around with regard to who's responsible for digital transformation and it's a little bit of I guess gallows humor to call it COVID, but we're increasingly seeing that customers and the journey that they're on is one that they haven't really gotten off, even with this, if you will, change of environment that's come about. So projects that we've seen in play, you know, are still underway. We've seen acceleration, actually, in some places with regard to making services more easily accessible. Anyone who's invested in hybrid cloud or public cloud is seeing huge value with regard to being able to consume services remotely, being able to do this on demand and that's a big part of the value proposition, you know, that comes forward. And increasingly what we're trying to do is try to say, how can we engage and assist you in these times, right? So our services team, for example, has transformed to be able to help customers remotely. Our support team has gone off and work more and more with customers. For a company like Red Hat, that hasn't been completely, if you will, difficult thing to do mostly because we've been so used to working in a distributed fashion, working remotely with our customers, so that's not a challenge in itself, but making sure customers understand that this is really a critical journey for them to go on and how we can kind of help them, you know, walk through that has been good and we're finding that that message really resonates. Right, so both Stefanie and Joe talked a little bit about, you know, how essentially our entire portfolio is now built around, you know, ensuring that if you'd like to consume on demand, we can help support you, if you'd like to consume in a traditional fashion, we can help you. That amount of flexibility that we provide to customers is really coming to bear at this point in time. >> So maybe we could wrap with, we haven't really dropped any customer names. Stefanie and Joe and Ashesh, I wonder if you have any stories you can share or, you know, customer examples that we could close on that are exciting to you this year. >> So I can start, if that's okay. >> Please. >> So an area that I find super interesting from a customer perspective that we're increasingly seeing more and more customers go down is sheer interest in, if you will, kind of diversity of use cases that we're seeing, right? So we see this, for example, in automotive, right? So whether it's a BMW or a Volkswagen, we see this now in health care with the ACA, in we'll say a little bit more traditional industries like energy with Exxon or Schlumberger around increasingly embrace of AIML, right? So artificial machine learning, if you will, advanced analytics being much more proactive with regard to how they can take data that's coming in, adjust it, be able to make sense of the patterns and then be able to, you know, have some action that has real business impact. So this whole trend towards, you know, AIML workloads that they can run is extremely powerful. We work very closely with Nvidia, as well, and we're seeing a lot of interest, for example, in being able to run a Kubernetes-based platform, support Nvidia GPUs for specific class workloads. There's a whole bunch of customers, people in financial services that, you know, this is a rich area of interest. You know, we've seen great use cases for example around grid with Deutsche Bank. And so, to me, I'm personally really excited to see kind of that embrace the PC from our customers regard to saying there's a whole lot of data that's out there. You know, how can we essentially use all of these tools that we have in place? You know, we talk about containers, microservices, DevOps, you know, all of this and then put it to bear to really put to work and get business value. >> Great, thank you for that, Ashesh. Stefanie, Joe, Stefanie, anything you want to add or final thoughts? >> Yeah, just one thing to add and I think Ashesh talked to a whole number across industry verticals and customers. But I think the one thing that I've seen through COVID is that if nothing else, it's taught us that change is the only constant and I think, you know, our whole vision of open hybrid cloud is how to enable customers to be flexible and do what they need to do when they need to do it, wherever they want to deploy, however they want to build. We provide them some consistency, right, across that as they make those changes and I think as I've worked with customers here through since the beginning of COVID, it's been amazing to me the diversity of how they've had to respond. Some have doubled down in the data center, some have doubled down on going public cloud and to me, this is the proof of the strategy that we're on, right, that open hybrid cloud is about delivering flexibility, and boy, nothing's taught us the need for flexibility like COVID has recently, so I think there's a lot more to do. I think pulling together the platforms and the automation is what is going to enable the ability to do that in a simple fashion. >> So Joe, you get the final word. I mean, AnsibleFest 2020, I mean, it's weird, right? But that's the way these events are, all virtual. Hopefully, next year we got a shot at being face to face, but bring us home, please. >> Yeah, I got to tell ya, having, you know, 20,000 or so of your closest friends get together to talk about automation for a couple of days is just amazing. That just shows you sort of the power of it. You know, we have a lot of customers this week at AnsibleFest telling you their story, you know, CarMax and ExxonMobil, you know, BlueCross BlueShield. I mean, there's a number across all different verticals, globally, Cepsa from Europe. I mean, just an incredibly, you know, diverse array of customers and use cases. I would encourage people to look at some of the customer presentations that were on at AnsibleFest, listen to the customer telling you what they're doing with Ansible, deploying their networks, deploying their apps, managing their infrastructure, container apps, traditional apps, connecting it, moving faster. They have amazing stories. I encourage people to go look. >> Well, guys, thanks so much for helping us wrap up AnsibleFest 2020. It was really a great discussion. You guys have always been awesome CUBE guests. Really appreciate the partnership and so thank you. >> Thanks a lot, Dave. Appreciate it. >> Yeah, thanks, Dave. >> Thanks for having us. >> All right, and thank you for watching, everybody. This is Dave Vellante for theCUBE and we'll see you next time. (calm music)

>> Announcer: Live, from Boston, Massachusets, it's theCUBE covering Red Hat Summit, 2019. Brought to you by Red Hat. >> Well, welcome back here in Boston. We're at the BCEC as we are starting to wrap up our coverage here of day two of the Red Hat Summit, 2019. Along with Stu Miniman, I'm John Walls, and we're now joined by Ashesh Badani, who is the senior vice president of Cloud Platforms at Red Hat. Been a big day for you, hasn't it Mr. Badani? >> It sure has, thanks for having me back on! >> You bet! All right, so OpenShift 4, we saw the unveiling, your baby gets introduced to the world. What's the reaction been between this morning and this afternoon in terms of people, what they're asking you about, what they're most curious about, and maybe what their best reaction is. >> Yeah, so it's not necessarily a surprise for the folks who have been following OpenShift closely, we put the beta out for a little while, so that's the good news, but let me roll back just a little. >> John: Sure >> I think another part of the news that was really important for us is our announcement of a milestone that we crossed, which is a thousand customers, right? And it was at this very summit and theCUBE definitely knows this well, right, because they've been talking for a while. At this very Summit in 2015, four years ago, that we launched OpenShift Version 3. Right and so, you know you fast forward four years, right, and now the diversity of cases that we see, you know, spanning, established apps, cloud native apps, we heard Exxon talking about AIML data signs that they're putting on the platform, in a variety of different industries, is amazing. And I think the way OpenShift 4 has come along for us, is us having the opportunity to learn what have all these customers been doing well, and what else do we need to do on the platform to make that experience a better one. How do we reimagine enterprise kubernetes, to take it to the next level. And I think that's what we're introducing to the industry. >> Ashesh I think back four years ago, kubernetes was not something that was on the tip of the tongues of most people here. Congratulations on 1,000. >> Thank you. >> I hear what, 100, 150, new customers every quarter is the current rate there, but what I've really enjoyed, talked to a CIO and they're like okay, we're talking about digital transformation, we're talking about how we're modernizing all of our environments, and OpenShift is the platform that we do it. So, talk a little bit, from a customer's standpoint, the speeds, the feeds, the technical pieces, but that outcome, what is it an enabler of for your customers? >> Yeah, so excellent points Stu, we've seen whole sale complete digital transformations underway with our customers. So whether it's Deutsche Bank, who came and talked about running thousands of containers now, moving a whole bunch of workload onto the platform, which is incredible to see. Whether it's a customer like Volkswagen, who talking yesterday, if you caught that, about building an autonomous, self-driving, sets of technologies on the platform. What we're seeing is not just what we thought we would only see in the beginning which is one built, cloud native apps, and digital apps, and so on. Or, more nice existing apps, and bring them on the platform. But also, technologies that are making a fundamental difference, and I'll call one out. So I'm a judge for The Innovation Awards, we do this every year, I have been for many years, I love it, it's one of my favorite parts of the show. This year, we had one entry, which is one of the winners, which is HCA, which is a healthcare provider, talking about how they've been using the OpenShift platform as a means to make a fundamental difference in patients' lives. And when I say fundamental difference, actually saving lives. And you'll hear more about their story, but what they've done, is be able to say, look how can we detect early warning signals, faster than we have been, take some AI technology, and correlate against that, and see how we can reduce sepsis within patients. It's a very personal story for me, my mother died of sepsis. And the fact that they've been able to do this, and I think they're reporting they've already saved dozens of lives based on this. That's when you know, the things that you're doing are making a real difference, making a real transformation, not just in an actual customers' lives, but in users and people around the world. >> You were saying earlier too, Ashesh, about looking at what customers are doing and then trying to improve upon that experience, and give them a more effective experience, whatever the right adjective might be, in terms of what you're doing with 4. If you had to look at it, and say okay, these are the two or three pillars of this where I think we've made the biggest improvement or the biggest change, what would those be? >> Yes, so, one is to look at the world as it is in some sense, which is what a customer's doing. Customers weren't deployed to hybrid cloud, right? They want choice, they want independence with regard to which environments are rented on, whether it's physical, virtual, private, or any public cloud. Customers want one platform, to say I want to run these next generation, cloud native, market service based applications, along with my established stateful applications. Customers want a platform for innovation, right? So for example, we have customers that say, look, I really need a modern platform because I want to recruit the next generation of developers from colleges, if I don't give them the ability to play with Go, or Python, or new databases, they're gonna go to some Silicon Valley company, and I'm going to deplete my pool of talent that I need to compete, right? 'Cause digital transformation is about taking existing companies, and making them digitally enabled. Going forward, what we're also seeing is the ability for us to say well maybe the experience we've given existing customers can be improved. How do we for example, give them a platform, that's more autonomous in nature, more self-driving in nature, that can heal itself, based on for example, there's a critical update that's required that we can send over the air to them. How can we bring greater automation into the platform? It's all of those ideas that we've got based on how customers are using it today, is what we're bringing to bear, going forward. >> Ashesh, one of the errors we have trying to help customers parse through the language is, everybody's talking about platforms, if you look at the public clouds, everybody's all in on kubernetes, a few weeks ago, we were at the Google Cloud event, talked to Red Hat there, there's Anthos, there's OpenShift, look at Azure, we Satya Nadella up on stage, and you're like, okay they've got their own kubernetes platform, but I've got OpenShift fully integrated there. >> Ashesh: Yeah. >> Can you help is kinda understand how those fit together because it's an interesting and changing dynamic. >> Well it's a very Silicon Valley buzzword, right? Everyone wants a platform, everyone wants to build a platform, Facebook's a platform, Uber's a platform, Airbnb is, everything's seeming a platform, right? What I really want to focus on more is in regard to, we want to be able to give folks literally an abstraction level, an ability for companies to say I want to embrace digital transformation. Before we get there, someone's like what's digital transformation, I don't even understand what that means anymore. My simple definition is basically flipping the table. Typically companies spend 80% on maintenance, 20% innovation, how do we flip that? So they're spending 80% innovation, 20% maintenance. So if we're still thinking in those terms, let me give you a way to develop those applications, spend more time and energy on innovation, and then allow for you to take advantage of what I'll call a pool of resources. Compute, network, and storage. Across the environment that you have in place. Some of which you might own, some of which some third parties might provide for you, and some of which you get from public cloud. And take advantage of innovation that's being done outside. Innovative services that come from either public cloud providers, or ISPs, or separate providers, and then be able to do that innovated rapid fashion, you know, develop, deploy, iterate quickly. So to me that is really fundamentally what we're trying to provide customers, and it takes different forms, internal packaging. >> Maybe you can explain to me, the Azure OpenStack seems different than some of the other partnerships. Two years ago, when we were sitting in this building, we talked to you about AWS with OpenShift in that partnership, so what's differentiated and special about the Azure OpenStack integration. >> Yeah, so the Azure partnership, it's a good question because we've now taken our partnering with the public cloud providers to the next level, if you will. With Azure there's a few things in play, first it's a jointly offered managed service from Red Hat and Microsoft, where we're both supporting it together. So in the case of OpenShift and AWS, that's you know OpenShift directly to the ring of service, in this case, it's right out of Microsoft, working close together to make that happen. It's a native service to Azure, so if you saw in the keynote, you could use a command line to call OpenShift directly integrate into the Azure command line. It's available within the interface of Microsoft-Azure. So it feels like a native service, you can take advantages of other Azure services, and bring those to bear, so obviously increases developer experience from that perspective. We also inherit all the compliances, certifications, that Microsoft-Azure has, as well, for that service, as well as all the availability requirements that they put out there, so it's much more closely integrated together, much better developer experience, native to Azure, and then the ability for the Microsoft sales team to go out and sell it to their customers in conjunction. >> You talk a lot about different partnerships, and bringing this collaborative, open-mindset to each and every relationship, how hard is that to do? Because you have your of way of doing things and it's worked very well, and yet, you go out and you have these new partnerships or extensions of partnerships, and not everybody with whom you work does things the same way, and so, everybody's gotta be malleable to a certain extent, but just in terms of being that flexible all the time, what does that do for you? >> So, we take that for granted sometimes, the way we work. And I don't mean to say that to be boastful, or arrogant, in any fashion. I had an interview earlier today, and the reporter said why don't you put on your page, that you're 100% open source? And I said we never put that on our page because that's just how we work, we assume that, we assume everyone knows that about us, and we're going forward. And he says, well, I don't know, perhaps there's others that don't know. And he's right. The world's changing, we're expanding our opportunities in front of folks. In the same way we've only and always known, we used to collaborate with others in the community, before we fully embraced OpenStack, there were certain projects that Red Hat was investing in that were Red Hat driven, and we say maybe there wasn't as much community around it, we're gonna go down and embrace and fully parse an OpenStack community. Same's the case, for example, in kubernetes too. It's not necessarily a project that we created on our own, in conjunction with Google, and many others in the community. And so that's something that's part of our DNA, I'm not sure we're doing anything different, in engaging with communities, just how we work. >> So, Ashesh, I know your team's busy doing a lot of things. We've been hearing about what sessions are overflowing, down in the expo floor, so why don't you give us some visibility. But there was one specific one I wondered if you could start with. >> Ashesh: Sure. >> So down on the expo floor, it's a containerized environment and it has something to do with puppies, and therefor how does that connect with OpenShift 4 if we can start there. >> That's a tough one, you're gonna have to go and ask the puppies how to make a difference in the world. (laughing) >> John: So we go from kubernetes to canines, (laughing) that's what we're doing here. >> I do believe they're comfort dogs, but there was coding and some of the other stuff, so give us a little bit of the walk around, the expo flow, the breakouts and the like, in some of the hot areas, that your team's working on. >> Fair enough, fair enough. Maybe not puppies, but maybe we're trying to herd cats, close enough, right? >> John: Safer terrain. >> The amount of interest, the number of sessions, with OpenShift, or container based technologies, cloud based technologies, it's tremendous to see that. So regardless if whether you see the breakouts that are in place, the customer sessions, I think we've got over 100 customers, I think. Who are presenting on all aspects of their journey. So to me, that's remarkable. Lots of interest in our road map going forward, which is great to see, standing room only for OpenShift 4 and where we're taking that. Other technology that's interesting, the work, for example, we're doing in serverless. We announced an OpenSource collaboration with Mircrosoft, something called KEDA, the Kubernetes eventually. Our scaling project, so interesting how customers can kind of engage around that as well. And then the partner ecosystem, you can walk around and see just a plethora of ISVs, we're all looking to build operators, or have operators and are certifying operators within our ecosystem. And then it's ways for us to expose that to our joint customers. >> We're gonna cut you loose, and let you go, the floor's gonna be open for a few minutes, those puppies are just down behind Stu, we'll let you go check that out. >> Alright, thanks, I hear you can adopt them if you want to, as well. >> Before we let you go see the comfort dogs, 1,000 customers, where do you see, when we come back a year from now, where you are, where you wanna see it go, show us a little bit looking forward. >> So there's been some news around Red Hat that has probably happened over the last few months, the people are hearing this, I look at that as a great opportunity for us to expand our reach into markets, both in terms of industries perhaps we haven't necessarily gone into, that other companies have been. Perhaps we say it's manufacturing, perhaps this is the opportunity for us to cross the chasm, have a lot more trained consultants who can help get more customers on the journey, so I fully expect our reach increasing over a period time. And then you'll see, if you will, iterations of OpenShift 4 and the progress we've made against that, and hopefully many more success stories on the stage. >> Alright, looking forward to catching up next year, if not sooner. >> Ashesh: Okay, excellent. >> John: And congratulations on today, and best of luck down the road. >> Thanks again for having me. >> And good to see you! >> Ashesh: Yeah, likewise! >> Back with more on theCube, you are watching our coverage live, here from Red Hat Summit, 2019, in Boston, Massachusetts. (upbeat techno music)

>> live from Boston, Massachusetts. It's the queue covering your red. Have some twenty nineteen. You buy bread. >> Oh, good morning. Welcome back to our live coverage here on the Cube of Red Hat Summit twenty nineteen, along with two men. Timon, I'm John Walls were in Boston. A delightful day here in Beantown. Even made more so by the presidents of Jim White, her's president, CEO, Red hat. Jim, Thanks for joining us. Number one. Number two. What else could go right for you here this week? This has just been a great show. Great keynotes. You had great regulatory news on Monday. I mean, you've got a four leaf clover in that pocket there. I think for him >> to tell you what the weather is holding up well, for us, you're right with great partnership announcements. Amazing product launches. You have been a red hat, but eleven years now and this is only my third rail launch, right? When we deliver it, we commit to long lives. And so But it's awesome to be a part of that. And we had all the engineers on stage. I can't imagine how it could get any better. >> You >> win the lottery >> Oh, yeah? Well, yes. This one step at a time here. Relate and open share for we'LL get to those just a little bit. Let's go back to the keynote last night. First life, you have CEOs of IBM and Microsoft. Very big statements, right? We know about the IBM situation. I think a lot of people got a charge out of that a little bit. You know, Jenny commenting about have a death wish for this company. And I have thirty four billion reasons why I wanted to succeed. But a very good message. I think about this. This linkage that's about to occur, most likely. And the thought going forward from the IBM side of the fence? >> Yeah. I thought it was really good toe have her there. Not only to say that, you know, we're obviously bought it toe to make it grow, but also really making a statement about how important open source is to the future of IBM, right? Yeah. What became clear to me early on when we were talking is this is a major major. I would say that the company might be too strong a word, but it is a major kind of largest possible initiative around open source than you can imagine. And so I can't imagine, uh, imagine a better kind of validation of open source with one large technology companies the world basically going all in with us on it >> to talk about validation of open source, such a nadella up on stage. If you had told me five years ago that within a week I would see Satya Nadella up on stage with the CEO of'Em wear and then a week later up on stage with the CEO, right hat, I'm like, Are we talking about the same Microsoft? This is not the Microsoft that I grew up with on and worked with soap. We're talking your team and walking around. It wasn't just, you know, he flew in from Seattle. I did. The casino left. He was meeting with customers. There's a lot of product pieces that are going together, explain a little bit, that kind of the depth of the partnership and >> what we've made. Just tremendous progress over the last several years with Microsoft, you know, started back in two thousand fifteen. Where were you across certified hyper visors, And that's kind of a basic you know, let's work together. Over the last couple of years, it's truly blossomed into a really good partnership where, you know, I think they've and we both gotten over this, you know, Lennox versus Windows thing. And you know, I say, we've gotten over. I think we both recognized, you know, we need to serve our customers in the best possible way on that clearly means is two of the largest infrastructure software providers working closely together and what's been interesting. As we've gone forward, we find more and more common ground about how we could better serve our customers. Whether that's you know what might sound mundane. That's a big deal sequel server on Realm and setting benchmarks around that or dot net running on our platforms. Now all the way to really be able to deliver a hybrid cloud with a seamless experience with open shift from, you know, on premise to to Azure and having Deutsche Bank on State's twenty five a thousand containers running in production, moving back and forth to your >> you know what getting customers to change is challenging. You know, it's a little surprising even after that this morning to be like Oh, yeah. Let me pull up windows and log in and do all this stuff. We've talked to you a lot over the years about culture, you know, loved your book. We've talked a lot about it, but I really enjoyed. Last night is I mean, you had some powerful customers stories talking about how red hats helping them through the transformation. And like the Lockheed one for me was like And here's how we failed at first because we tried to go from waterfall to scrum Fall on. Do you know he definitely had the audience you're after? >> Yeah, I really wanted to make Mikey No talking about it called How we have so many great What's to talk about your rela a open ship for bringing all those capabilities from for OS. But I really wanted Teo talk about the hell, because that actually is the hardest part for customers. And so having kind of customers back in back to back to back, talking about success stories and failures to get there, and it really is about culture. And so that's where we called the open source way, which we kind of coin, which is, you know, beyond the code. It's, you know, meritocracy and how you get people to work together and collaboration. That's what more and more our customers want to talk about. In fact, I'd say ninety percent of the customer meetings I'm in, which are, you know, more CIA level meetings they're all about. Tell me about culture. Tell me how you go about doing that. Yeah, We trust the technology's gonna work. We don't have that issue with open source anymore. Everybody assumes you're gonna have open source. It's really how do you actually make that effective? And so that's what I really wanted to tow highlight over the course of the evening. >> You know, there was a lot of conversation, too. And you have your talking to Jenny about culture last night that you have multiple discussions over the course of the negotiation or of the conversations. So it wasn't just some cursory attention This I mean, the both of you had a really strong realization that this has to work in terms of this, you know, merging basically of philosophies and whatever. But you've had great success, right with your approach. So if you can share a little bit about how those cops is ations How you went through what transpired? Kind of how we got to where we are Now that you know, we're on the cusp of successful moment for you. Yeah, >> sure. So, yeah. I mean, from day one, that was the center of the discussion, I think early on. So year Agos, um, IBM announced, contain arising their software on open shift. And I think that's when the technical light went off about Hey. Having the same bits running across multiple clouds is really, really valuable in open shifts. The only real way to do that. And yes. Oh, Arvind was here from IBM on stage talking about that. And so I think technically, it was like, OK, ding, this makes sense. Nobody else could do it. And IBM, with their capabilities and services integration center. Just lot of strategic logic, I think the difficult part. Even before they approached this. Now, kind of looking back on it, having all these discussions with him now it's okay. Well, culturally, how do we bring it together? Because, you know, we both have strong cultures, mean IBM has a famous culture. We do that air very, very, very different. And so from the moment Jenny first approached me literally, you know, Hey, we're instant this, But let's talk about cultural, how we're going to make this work because, you know, it is a lot of money to spend on a company with No I p. And so you know, I think as we started to work through it, I think what we recognized is we can celebrate the strength of each other's cultures, and you know the key. And this is to not assume that there's one culture that's right for everything. We have a culture hyper optimized for collaboration and co creation, whether that's upstream with our source communities or downstream with our customers or with our employees and how that works. And that's great. Let's celebrate that for what it is. And, you know, IBM kind of run some of those big, most mission critical systems in the world, you know, on mainframes and how you do that looks and feels different. And that's okay. And it's okay to be kind of different. But together, if we can share the same values if we can, you know, share the same desire to serve our customers and put them first how we go about doing it. It's okay if those aren't exact. And as we got more comfortable with that, um, that's when I got more comfortable with it. And then, most importantly for me is we talk about culture. But a lot of our culture comes from the fact that we're truly a mission kind of purpose driven company, right? We're all about making open source the default choice in the world. And you know, to some extent remember, have these conversations with senior teams like, Hey, we were going to think we're going to change the world. You know? How better can we propel this for? This is such a huge platform to do it, and yet it's going to be hard. But aren't we here to do hard things? >> So it talked about it, You know, it's it's always been difficult selling when you don't have the. There's been a lot of discussions in the ecosystem today, as companies that build I p with open source and some of the models have been changing and some of the interactions with some of the hyper scale companies and just curious when you look at that, it's you know, related to what you're doing, what feedback you have and what you're seeing. >> Yeah. Look, first, I'LL say, I can't talk about that as an interested observer because our model is different than a lot of open source software companies. You know, Paul talked about in his keynote today, and we talked a lot about you know, our models one hundred percent open source, where we take open source code, typically getting involved in existing communities in creating life cycles, et cetera, et cetera, et cetera. And so that model's worked well for us. Other open source companies where I think this is more of a challenge with the hyper scale er's right more of the software themselves. And obviously they therefore need to monetize that in a more direct way. You know, our sins are businessmen always say it's a really bad business model the right software and give it away. You know, that's not what we do where hundreds and open source, but you know, if you look at our big communities were, you know, ten to twenty percent of the contribution, because we want to rely on communities. The issue for those companies that are doing Maur. The code contribution themselves is there's a leakage in the open source license, which is, you know, the open source, like the viral licenses. You know, if you make changes and you redistribute, you have toe also, you know, redistribute your code as well. And redistribution now is to find in a hyper scale is just different. So there's kind of a leakage in the model. I think that ultimately gets fixed by tweaks to the licenses. I know it's really controversial, and companies do it, but, you know, Mongo has done it. I think you'LL see continuing tweaks to the length the licenses would still allow broad use, but kind of close that loophole if you want to call that a loophole. >> Yeah, well, it's something that you know as observers. We've always watched this space and you know, when you talk about Lennox, you know, you've created over three billion dollar company, But the ripple effects of Lennox has been huge. And I know you've got some research that we want to hear about when we've looked at like the soup space. When you look at the impact of big data and now where is going you know, the hoodoo distribution was a very, very small piece of that. So, you know, talk a little bit about the ripples. Is some new research that >> way? Had some research that was that we commission to say, What is the impact of Lenin's right hand and press linens? And then we were all blown away. Ten trillion dollars. I mean, so this isn't our numbers or we had really experts do this and e. I mean, it really blew us away. But I think what happens is if you think about how pervasive it is in the economy, it's ultimately hard to have any transaction done that doesn't somehow ripple into technology and technology. Days primarily built around Lynn IQ. So in red headed President X is the leader, so it just pervades and pervades. When you look at the size in the aperture and you make a really good point around, whether it's a duper lennox, I mean, we could look a red hat, the leader and Lennox and we're, you know, less than four billion dollars of revenue. But we've created this massive ecosystem the same thing with the Duke. You think about how big an impactful. Big data and the analytics and built on it are massive. The company's doing are only a couple hundred million dollars, and I will say I've become comfortable with I'd say, five years ago, I used to say in my glass half empty day I'd be like we're creating all of this value yet we're just only getting this little tiny sliver. Um, I've now flip that around and say My glass Half full days I look and say Wow, with this lever we have with this little bit of investment were fundamentally changing the world. And so everybody's benefiting in a much larger scale around that. And when you think about it, that aperture is something really, really, really excited >> about. Well, you talk about, you know where the impact will be. Talk about Cloud, that the wave of container ization, you know, Where do you see that ending up? You know, I look, you know, Cooper Netease is one of those things. There's a lot of excitement and rightfully so. It was going to change the market, but it's not about a Cuban aunties distribution. It's going to be baked into every platform out there. Yeah, gunships doing quite well. And you know all the cloud providers, your partner with them and working with them. It's less fighting to see who leads and Maura's toe. How do we all work together on this? >> Well, you know, I think that's >> the great thing about ah well functioning, mature, open source projects is it behooves everybody to share. Now we'LL compete ultimately, you know, kind of downstream. But it who's everybody to share and build on this kind of common kind of component. And, you know, like any good open source project, it has a defined set of things that it does. I think you hit on a really important point. Cooper Netease is such an important layer. Doesn't work without Lennox, right? I mean, lyrics is, you know, containers or Lennox. And so how do you think about putting those pieces to gather manageability and automation thinks like answerable. And so, you know, at least from our perspective, it's How do you take these incredible technologies that are cadence ng, you know, at their own pace and are fundamentally different but can't work unless you put them all together? Which to us, you know, that creates a big opportunity to say, How do I take this incredible technology that thousands of, of really technically Swiss cave people are working on and make it consumable? Archer Traditional model has been like linnet, simply saying We're going to snap shot. We're going created to find life we're going back for, you know, do patching for what? And we still do that. But there's now an added sir sort of value, something like open shift, where you can say, Okay, we could put these pieces together in life cycle and together. And, you know, we see instances all the time where an issue with Cooper Netease requires, you know, a change analytics. And so being able to life cycle in together, I think we can really put out a platform where we literally now we're saying in the platform you're getting the benefits of millions of people working on overtime on Lenox with tens of thousands people working on Cooper, Netease and the Learnings are all been kind of wrapping back into a platform. So our ability to do that is it kind of open source continues to move up. The stack is really, really exciting. >> Now. You were talking about transformative technologies on DH. How great it is to be a part of that right now. You alluded to that last night in the keynote. So you're talking about this, You know your history lessons. You know how much you love doing that? Your ki notes and you know, the scientific method Industrial Revolution open source. Just without asking you to re can you are a recount. All that. Just give us an idea about how those air philosophically aligned it. How you think those air open source follows that lineage, if you will, where it is fundamentally changing the world. It is a true global game change. Yeah, And >> so the point last night was a really kind of illustrate how a change in thinking can fundamentally change the world we live in. And so what I talked about just kind of quickly is so the scientific method developed and kind of the fifteen hundreds ish time frame was a different way to discover knowledge. So it goes from kind of dictates coming down from, you know, on high, too. Very simple hypothesis, experiment, observation of the results of the things that go through that process and stand the test of time and become what we consider knowledge right? And that change lead immediately to an explosion of innovation, whether that with the underpinnings of the industrial revolution or enlightenment, what we've done in medicine, whole bunch of areas. And yeah, the analogy I came to was around well, the old way we just try to innovate constrains us in a more open approach is a fundamentally better way to innovate. But what I found so interesting in and I think you picked up on it if it didn't emphasize this much, wanted to excite and having a lot of time, its many of the same characteristics of scientific discovery. So the idea of you know, independence anybody could actually do this pinpoints the importance of experimentation and learning those Air Corps components of, you know, tef ops and agile and open source, right? It's very, uh, in the end, the characteristics are actually quite similar as well. I think that's just fascinating to see happen. >> So e think about that. And if you could bring it back to the customers you're talking to, you have a lot of executive conversation, said You focus a lot on the how is really challenging. We understand. You know, the organizational structure of most companies goes back over a hundred years to military. So you know, what you see is some of the one of the biggest challenges that, you know, executive thieves we're facing these days. And, you know, how are they getting past that? Stuck? >> Yeah. And so, you know, I think the simple is way to state. The problem, which I hear over and over again, is we tried an agile transformation, and it failed because our culture was already and cultures Mohr of, ah always tell the executor when they said to me, It's like, Okay, but recognized cultures and output, not an input. And it's an output of leadership behaviors, beliefs, values what's been rewarded over time. So if you want your culture to change, actually to think about changing the way that you lied and manage and broadly, the structures, the hierarchies, the bureaucratic systems that we have in place today are really good at driving efficiency in a static environment. So if you're trying to slightly take a little bit of cost out building a car, you start with what you did last year. You get a bunch of scientists are consultants to look at it, and then you direct some fairly small changes. So the structure were in places other wrong with them. When value creation was about standardization of economies of scale. The hierarchies work really, really well to distribute tasks and allow specialization and optimization. The problem is now most value creation. It's requiring innovation. It's how doe I innovate and how I engage with my customer. You know the example I used a couple years ago? Its summit was, you know, the average cars use ninety minutes today. So if you think about how to reduce the cost of transfer port ation, is it taking two percent out of the cost of building a car? Or is it figuring out whether it's ride sharing or other ways? Teo. A fractional ownership. Whether it is to increase the average utilization of the car, it's clearly the ladder. But you can't do that in about bureaucratic hierarchical system that requires creativity and innovation, and the model to do that requires injecting variants in. That's what allows innovation to happen. So as leaders, you have to show up and say, all right, how do I encourage descent, you know, how do I accept failure? Right. So this idea of somebody tries something and it fails. If you fire him, nobody's gonna try anything again. But experimentation by definition requires a lot of failures and how you learn from it. So how do you build that into the culture where as executives you say holding people accountable doesn't mean, you know, firing him or beating him up. If they make a mistake, it's how do I encourage the right level of risk taking in mistakes, you know, even down to the soft side. So you know, how do you hold somebody accountable in an agile scrum, right. Your leaders have to be mature enough to sit down, have a conversation. Not around here. The five things you were supposed to do and you did forum. So you get in eighty right now, you can't say exactly what they need to do because it's a little blurry. So you have to have leaders mature enough to sit down and have a conversation with somebody is I think you got an eighty. Thank you. Got an eighty because here's what you did well, and here's what you didn't. But it's subjective. And how do you build that skill and leaders? They oughta have those subjective conversations, right? That sounds really, really soft, but it's not gonna work if you don't have leaders who can do that right? And so that's why it's hard. Because, you know, changing peep people is hard. And so that's why I think so. Many CEOs and executives want to talk about it. But that's what I mean by it's a soft side. And how do you get that type of change to happen? Because if you do that, pick ours honestly, pick somebody else's, you know, agile Davis with methodologies. They'LL work if you have a culture, this accepting of it >> before they let you go. There were two things to our quick observations about last night. Number one rule Samant hitch up on the licensing, so I know you've got your hands full on that. Good luck with that. You mentioned licensing a little bit ago, and I learned that thirty four billion dollars is a good deal. Well, right, that's what you said I heard it from are absolutely well. Things >> were a separate entity. We don't have licenses. So I don't know how we would go into an l A >> given. We don't have a license to sell. So got some expectations setting >> we need to do with our customers and then, you know, but separately, You know, I think people do forget that Red Hat is a not only a really fast growing company were also really profitable company. Most of the other software companies that are growing at our pace on a gap basis makes little to no money. We have because we get the leverage of open source, we actually generate a very large amount of free cash flow. And if you actually not to get the details of the financials. But we look at our free cash flow generation in our growth, I would argue, was a smoking good deal. That thirty four. I was asking for a lot more than that. >> You could had smoking good the last night that was gonna work to give thanks for the time. >> It's great to be here. >> Thank you. Thank you for hosting us here. Great opportunities on this show for I know that's exciting to see two but continued success. We wish you all >> thanks. So much. Thank you for being here. It's great to have you, >> Jim. White House joining us back with more live coverage here on the Cube. You are watching our coverage here in Boston of Red Hat Some twenty nineteen. Well,

(Upbeat music) >> From the Hard Rock hotel in Las Vegas, its theCUBE! Covering the Hosho Con 2018, brought to you by Hosho. >> Okay, welcome back every one, this is theCUBE's exclusive coverage here live in Las Vegas for Hosho Con, the first inaugural event where security and block chain conferences is happening, it's the first of its kind where practitioners and experts get together to talk about the future, and solve some of the problems in massive growth coming they got a lot of them. Its good new and bad news but I guess the most important thing is security again, the first time ever security conference has been dedicated to all the top shelf conversations that need to be had and the news here are covering. Our next guest Greg Pinn who's the head of strategy and products for iComply Investor Services. Great to have you thanks for joining us. >> Very nice to be here >> So, we were just talking before we came on camera about you know all the kind of new things that are emerging with compliance and all these kind of in between your toes details and nuances and trip wires that have been solved in the traditional commercial world, that have gotten quite boring if you will, boring's good, boring means it works. It's a system. But the new model with Block Chain and Token Economics is, whole new models. >> Yeah I think what's so exciting about this is that in the Fiat world, from the traditional financial market, everyone is so entrenched in what they've been doing for 20, 30, 40 years. And the costs are enormous. And Block Chain, Crypto coming in now is like we don't have to do it that way. We have to do compliance. Compliance matters, it's important and it's your legal obligation. But you don't have to do it in the same sort of very expensive, very human way that people have been doing it in the past. >> And Cloud Computing, DevOps model of software proved that automations a wonderful thing >> Right >> So now you have automation and you have potentially AI opportunities to automate things. >> And what we've seen is huge increases in technology, in around machine learning and clustering of data, to eliminate a lot of the human process of doing AML, KYC verification, and that's driving down costs significantly. We can take advantage of that in the Crypto Space because we don't have thousands of people and millions of millions of dollars of infrastructure that we've built up, we're starting fresh, we can learn from the past and throw away all the stuff that doesn't work, or isn't needed anymore. >> Alright let's talk about the emerging state of regulation in the Block Chain community and industry. Where are we? What's the current state of the union? If you had to describe the progress bar you know with zero meaning negative to ten being it's working, where are we? What is the state of >> I think if you'd asked me a year ago I think negative would've been the answer. A year ago there was still a big fight in Crypto about do we even want to be part of Compliance, we don't want to have any involvement in that. Because it was still that sort of, Crypto goes beyond global borders, it goes beyond any of that. What's happened now is people have realized, it doesn't matter if you're dealing in Crypto Currency or traditional currency, or donkeys or mules or computers or whatever, if you're trading goods for value, that falls under Regulatory Landscape and that's what we're hearing from the SCC, from FinCEN, from all the regulators. It's not the form it's the function. So if you've got a security token, that's a security, whether you want it to be or not. You can call it whatever you want, but you're still going to be regulated just like a security. >> And I think most entrepreneurs welcome clarity. People want clarity, they don't want to have to be zigging when they should be zagging. And this is where we see domicile problem. Today it's Malta, tomorrow it's Bermuda. Where is it? I mean no one knows it's a moving train, the big countries have to get this right. >> A hundred percent. And beyond that what we're seeing, what's very, very frustrating for a market as global as this is it's not just country-level jurisdiction, the US you've got State-level jurisdiction as well. Makes it very, very hard when you're running a global business if you're an exchange, if you're any sort of global, with a global client reach. Managing that regulation is very, very difficult. >> You know I interviewed Grant Fondo who's with Goodwin Law Firm, Goodwin Proctor they call it Goodwin now, he's a regulatory guy, and they've been very on the right side of this whole SCC thing in the US. But it points to the issue at hand which is there's a set of people in the communities, that are there to be service providers. Law Firms, Tax, Accounting, Compliance. Then you got technology regulation. Not just financial you have GDPR, it's a nightmare! So okay, do we even need GDPR with Block Chain? So again you have this framework of this growth of internet society, now overlaid to a technical shift. That's going to impact not only technology standards and regulations but the business side of it where you have these needed service providers. Which is automated? Which isn't automated? What's your take on all of this? >> I agree with you a hundred percent, and I think what's helpful is to take a step back and realize while compliance is expensive and a pain and a distraction for a lot of businesses. The end of the day it saves people's lives. And this is what, just like if someone was shooting a gun as you were running down the street, in your house, you're going to call the police, that is what financial institutions are doing to save these industries and individuals that are impacted by this. A lot of it from a Crypto Currency perspective, we have a responsibility because so much of what the average person perception is, is Ross Ulbricht and Silk Road. And we have to dig our way out of that sort of mentality of Crypto being used for negative things. And so that makes it even more important that we are ultra, ultra compliant and what's great about this is there's a lot great opportunities for new vendors to come into the space and harness what existed whether that's harnessing data, different data channels, different IDDent verification channels and creating integrated solutions that enable businesses to just pull this in as a service. It shouldn't be your business, if you're in exchange, compliance is something you have to do. It should not become your business. >> Yeah I totally agree, and it becomes table stakes not a differentiator. >> Exactly >> That's the big thing I learned this week it's people saying security's a differentiator, compliance is a, nah, nah, I have standards. Alright so I got to ask you about the, you know I always had been on the biased side of entrepreneurship which is when you hear regulations and you go whoa, that's going to really stunt the growth of organic innovation. >> Right. But in this case the regulatory peace has been a driver for innovation. Can you share some opinions and commentary on that because I think there's a big disconnect. And I used to be the one saying regulation sucks, let the entrepreneurs do their thing. But now more than ever there's a dynamic, can you just share your thoughts on this? >> Yeah, I mean regulators are not here to drive innovation. That's not what their job is. What's been so interesting about this is that because of regulations coming to Crypto along with these other things, it's allowing businesses to solve the problem of compliance in very exciting, interesting ways. And it's driving a lot of technologies around machine learning, what people like IBM Watson are doing around machine learning is becoming very, very powerful in compliance to reduce that cost. The cost is enormous. An average financial institution is spending 15 percent. Upwards of 15 percent of their revenue per year on compliance. So anything they can do to reduce that is huge. >> Huge numbers >> And we don't want Crypto to get to that point. >> Yeah and I would also love to get the percentage of how much fraud is being eaten into the equation too. I'm sure there's a big number there. Okay so on the compliance side, what are the hard problems that the industry is solving, trying to solve? Could you stack rank the >> I think number one: complexity. Complexity is the biggest. Because you're talking about verifying against sanctions, verifying against politically exposed persons, law enforcement lists, different geographical distributions, doing address verification, Block Chain forensics. The list just stacks and stacks and stacks on the complexity >> It's a huge list. >> It's a huge list >> And it's not easy either. These are hard problems. >> Right, these are very, very difficult problems and there's no one expert for all of these things. And so it's a matter of bringing those things together, and figuring out how can you combine the different levels of expertise into a single platform? And that's where we're going. We're going to that point where it's a single shop, you want to release an ICO? You're an exchange and you need to do compliance? All of that should be able to be handled as a single interface where it takes it off of your hands. The liability is still with the issuer. It's still with the exchange, they can't step away from their regulatory liability, but there's a lot that they can do to ease that burden. And to also just ignore and down-risk people that just don't matter. So many people are in Crypto, not the people here, but there's so many people in Crypto, you buy one tenth of a Bitcoin, you buy a couple of Ether, and you're like okay that was fine. Do we really need to focus our time on those people? Probably not. And a lot of the >> There's a lot big money moving from big players acting in concert. >> And that's where we need to be focused. Is the big money, we need to be focused on where terrorists are acting within Block Chain. That's not to say that Block Chain and Crypto is a terrorist vehicle. But we can't ignore the reality. >> And I think the other thing too is also the adversary side of it is interesting because if you look at what's happening with all these hacks, you're talking about billions of dollars in the hands now of these groups that are highly funded, highly coordinated, funded basically underbelly companies. They get their hands on a quantum computer, I was just talking to another guy earlier today he's like if you don't have a sixteen character password, you're toast. And now it's twenty four so, at what point do they have the resources as the fly wheel of profit rolls in on the hacks. >> You know, one of the interesting things we talk about a lot is we have to rely on the larger community. We can't, I can't, you can't solve all of the problems. Quantum computing's a great example. That's where we look for things like two-factor authentication and other technologies that are coming out to solve those problems. And we need to, as a community, acknowledge That these are real problems and we've identified potential solutions. Whether that's in academia, whether it's in something like a foundation like the Ethereum Foundation, or in the private sector. And it's a combination of those things that are really driving a lot of it's innovation. >> Alright so what's the agenda for the industry if you had to have a list this long, how do you see this playing out tactically over the next twelve months or so as people start to get clarity. Certainly SCC is really being proactive not trying to step on everybody at the same time put some guard rails down and bumpers to let people kind of bounce around within some frame work. >> I think the SCC has taken a very cautious approach. We've seen cease and desist letters, we've seen notifications we haven't seen enormous finds like we see in Fiat. Look at HSBC, look at Deutsche Bank, billions of dollars in fines from the SCC. We're not seeing that I think the SCC understands that we're all sort of moving together. At the same time their responsibility is to protect the investor. And to make sure that people aren't being >> Duped. >> Duped. I was trying to find an appropriate term. >> Suckered >> Suckered, duped. And we've seen that a lot in ICOs but we're not seeing it, the headlines are so often wrong. You see this is an ICO scam. Often it's not a scam, it's just the project failed. Like lots of businesses fail. That doesn't mean it's a scam, it means it was a business fail. >> Well if institutional investors have the maturity to handle they can deal with failures, but not the average individual investor. >> Right, which is why in the US we have the credit investor, where you have to be wealthy enough to be able to sustain the loss. They don't have that anywhere else. So globally the SCC care and the other financial intelligence units globally are monitoring this so we make that we're protecting the investor. To get back to your question, where do I see this going? I think we're going to need to fast track our way towards a more compliant regime. And this I see as being a step-wise approach. Starting with sanctions making sure everyone is screened against the sanction list. Then we're going to start getting more into politically exposed persons, more adverse media, more enhanced due diligence. Where we really have that suite of products and identify the risk based on the type of business and the type of relationship. And that's where we need to get fast. And I don't think the SCC is going to say yeah be there by 2024, it's going to be be there by next year. I was talking to Hartej, he was one of the co founders of Hosho and we were talking on TheCUBE about self-regulation and some self-policing. I think this was self-governed, certainly in the short term. And we were talking about the hallway conversations and this is one of the things that he's been hearing. So the question for you Greg is: What hallway conversations have you overheard, that you kind of wanted to jump into or you found interesting. And what hallway conversations that you've been involved in here. >> I think the most interesting, I mentioned this on a panel and got into a great conversation afterwards, about the importance of the Crypto community reaching out to the traditional financial services community. Because it's almost like looking across the aisle, and saying look we're trying to solve real business problems, we're trying to create great innovative things, you don't have to be scared. And I was speaking at a traditional financial conference last week and there it was all people like this Crypto is scary and it's I don't understand it. >> You see Warren Buffett and Bill Gates poopooing it and freak out. >> But we have an obligation then, we can't wait for them to realize what needs to be done. We need to go to them and say, look we're not scary, look let's sit down. If you can get a seat at a table with a head of compliance at a top tier bank, sit down with them and say let me explain what my Crypto ATM is doing and why it's not a vehicle for money laundering, and how it can be used safely. Those sorts of things are so critical and as a community for us to reach across the aisle, and bring those people over. >> Yeah bridge the cultures. >> Exactly. Because it's night and day cultures but I think there's a lot more in common. >> And both need each other. >> Exactly. >> Alright so great job, thanks for coming on and sharing your insights. >> Thank you so much. >> If you have a quick plug on what you're working on, give the plug for the company. >> Sure, so iComply Investor Services is here to help people who want to issue ICOs, do that in a very compliant way. Because you shouldn't have to worry about all of your compliance and KYC and Block Chain Forensics and all that, you should be worried about raising money for your company and building a product. >> Alright final question since I got you here 'cause this is on my mind. Security token, has got traction, people like it 'cause no problem being security. What are they putting against that these days, what trend are you seeing in the security token? Are they doing equity? I'm hearing from hedge funds and other investors they'll want a little bit of equity preferred and or common, plus the token. Or should the token be equity conversion? What is some of the strings you're seeing? >> You know I think it' really just a matter of do you want paper or do you want a token? Just like a stock certificate is worth nothing without the legal framework behind it. A security token is the same way. So we're seeing where some people are wanting to do equity, where some of their investors want the traditional certificate. And some are fine with the token. We're seeing people do hybrid tokens where it morphs from security to utility or back. Where they're doing very creative things. It's what's so great about the Ethereum Network and the Smart Contracts, is there are all of these great options. The hard part then is, how do you fit those options into regular framework. >> And defending that against being a security, and this is interesting because if it converts to a utility, isn't that what security is? >> So that's the question. >> Then an IPO is an, again this is new territory. >> Right, and very exciting territory. It's an exciting time to be involved in this industry. >> In fact I just had an AE3B Election on tokens, first time ever. >> Yeah it's an amazing state that we're in. Where serious investors are saying yeah token's great for me. Give me the RC20 I'll stick it in my MetaMask Wallet, it's unbelievable where we are. And only more exciting things to come. >> Greg Pinn, thanks for coming on and sharing your insights. TheCUBE covers live here in Las Vegas, Hoshocon, the first security conference in the industry of its kind where everyone's getting together talking about security. Not a big ICO thing, in fact it's all technical, all business all people shaping the industry, it's a community it's TheCUBE coverage here in Las Vegas. Stay with us for more after this short break. (Upbeat music)

[Music] [Music] [Music] [Music] ladies and gentlemen please welcome Red Hat senior vice president of engineering Matt Hicks [Music] welcome back I hope you're enjoying your first day of summit you know for us it is a lot of work throughout the year to get ready to get here but I love the energy walking into someone on that first opening day now this morning we kick off with Paul's keynote and you saw this morning just how evolved every aspect of open hybrid cloud has become based on an open source innovation model that opens source the power and potential of open source so we really brought me to Red Hat but at the end of the day the real value comes when were able to make customers like yourself successful with open source and as much passion and pride as we put into the open source community that requires more than just Red Hat given the complexity of your various businesses the solution set you're building that requires an entire technology ecosystem from system integrators that can provide the skills your domain expertise to software vendors that are going to provide the capabilities for your solutions even to the public cloud providers whether it's on the hosting side or consuming their services you need an entire technological ecosystem to be able to support you and your goals and that is exactly what we are gonna talk about this afternoon the technology ecosystem we work with that's ready to help you on your journey now you know this year's summit we talked about earlier it is about ideas worth exploring and we want to make sure you have all of the expertise you need to make those ideas a reality so with that let's talk about our first partner we have him today and that first partner is IBM when I talk about IBM I have a little bit of a nostalgia and that's because 16 years ago I was at IBM it was during my tenure at IBM where I deployed my first copy of Red Hat Enterprise Linux for a customer it's actually where I did my first professional Linux development as well you and that work on Linux it really was the spark that I had that showed me the potential that open source could have for enterprise customers now iBM has always been a steadfast supporter of Linux and a great Red Hat partner in fact this year we are celebrating 20 years of partnership with IBM but even after 20 years two decades I think we're working on some of the most innovative work that we ever have before so please give a warm welcome to Arvind Krishna from IBM to talk with us about what we are working on Arvind [Applause] hey my pleasure to be here thank you so two decades huh that's uh you know I think anything in this industry to going for two decades is special what would you say that that link is made right Hatton IBM so successful look I got to begin by first seeing something that I've been waiting to say for years it's a long strange trip it's been and for the San Francisco folks they'll get they'll get the connection you know what I was just thinking you said 16 it is strange because I probably met RedHat 20 years ago and so that's a little bit longer than you but that was out in Raleigh it was a much smaller company and when I think about the connection I think look IBM's had a long long investment and a long being a long fan of open source and when I think of Linux Linux really lights up our hardware and I think of the power box that you were showing this morning as well as the mainframe as well as all other hardware Linux really brings that to life and I think that's been at the root of our relationship yeah absolutely now I alluded to a little bit earlier we're working on some new stuff and this time it's a little bit higher in the software stack and we have before so what do you what would you say spearheaded that right so we think of software many people know about some people don't realize a lot of the words are called critical systems you know like reservation systems ATM systems retail banking a lot of the systems run on IBM software and when I say IBM software names such as WebSphere and MQ and db2 all sort of come to mind as being some of that software stack and really when I combine that with some of what you were talking about this morning along hybrid and I think this thing called containers you guys know a little about combining the two we think is going to make magic yeah and I certainly know containers and I think for myself seeing the rise of containers from just the introduction of the technology to customers consuming at mission-critical capacities it's been probably one of the fastest technology cycles I've ever seen before look we completely agree with that when you think back to what Paul talks about this morning on hybrid and we think about it we are made of firm commitment to containers all of our software will run on containers and all of our software runs Rell and you put those two together and this belief on hybrid and containers giving you their hybrid motion so that you can pick where you want to run all the software is really I think what has brought us together now even more than before yeah and the best part I think I've liked we haven't just done the product in downstream alignment we've been so tied in our technology approach we've been aligned all the way to the upstream communities absolutely look participating upstream participating in these projects really bringing all the innovation to bear you know when I hear all of you talk about you can't just be in a single company you got to tap into the world of innovation and everybody should contribute we firmly believe that instead of helping to do that is kind of why we're here yeah absolutely now the best part we're not just going to tell you about what we're doing together we're actually going to show you so how every once you tell the audience a little bit more about what we're doing I will go get the demo team ready in the back so you good okay so look we're doing a lot here together we're taking our software and we are begging to put it on top of Red Hat and openshift and really that's what I'm here to talk about for a few minutes and then we go to show it to you live and the demo guard should be with us so it'll hopefully go go well so when we look at extending our partnership it's really based on three fundamental principles and those principles are the following one it's a hybrid world every enterprise wants the ability to span across public private and their own premise world and we got to go there number two containers are strategic to both of us enterprise needs the agility you need a way to easily port things from place to place to place and containers is more than just wrapping something up containers give you all of the security the automation the deploy ability and we really firmly believe that and innovation is the path forward I mean you got to bring all the innovation to bear whether it's around security whether it's around all of the things we heard this morning around going across multiple infrastructures right the public or private and those are three firm beliefs that both of us have together so then explicitly what I'll be doing here number one all the IBM middleware is going to be certified on top of openshift and rel and through cloud private from IBM so that's number one all the middleware is going to run in rental containers on OpenShift on rail with all the cloud private automation and deployability in there number two we are going to make it so that this is the complete stack when you think about from hardware to hypervisor to os/2 the container platform to all of the middleware it's going to be certified up and down all the way so that you can get comfort that this is certified against all the cyber security attacks that come your way three because we do the certification that means a complete stack can be deployed wherever OpenShift runs so that way you give the complete flexibility and you no longer have to worry about that the development lifecycle is extended all the way from inception to production and the management plane then gives you all of the delivery and operation support needed to lower that cost and lastly professional services through the IBM garages as well as the Red Hat innovation labs and I think that this combination is really speaks to the power of both companies coming together and both of us working together to give all of you that flexibility and deployment capabilities across one can't can't help it one architecture chart and that's the only architecture chart I promise you so if you look at it right from the bottom this speaks to what I'm talking about you begin at the bottom and you have a choice of infrastructure the IBM cloud as well as other infrastructure as a service virtual machines as well as IBM power and IBM mainframe as is the infrastructure choices underneath so you choose what what is best suited for the workload well with the container service with the open shift platform managing all of that environment as well as giving the orchestration that kubernetes gives you up to the platform services from IBM cloud private so it contains the catalog of all middle we're both IBM's as well as open-source it contains all the deployment capability to go deploy that and it contains all the operational management so things like come back up if things go down worry about auto scaling all those features that you want come to you from there and that is why that combination is so so powerful but rather than just hear me talk about it I'm also going to now bring up a couple of people to talk about it and what all are they going to show you they're going to show you how you can deploy an application on this environment so you can think of that as either a cloud native application but you can also think about it as how do you modernize an application using micro services but you don't want to just keep your application always within its walls you also many times want to access different cloud services from this and how do you do that and I'm not going to tell you which ones they're going to come and tell you and how do you tackle the complexity of both hybrid data data that crosses both from the private world to the public world and as well as target the extra workloads that you want so that's kind of the sense of what you're going to see through through the demonstrations but with that I'm going to invite Chris and Michael to come up I'm not going to tell you which one's from IBM which runs from Red Hat hopefully you'll be able to make the right guess so with that Chris and Michael [Music] so so thank you Arvind hopefully people can guess which ones from Red Hat based on the shoes I you know it's some really exciting stuff that we just heard there what I believe that I'm I'm most excited about when I look out upon the audience and the opportunity for customers is with this announcement there are quite literally millions of applications now that can be modernized and made available on any cloud anywhere with the combination of IBM cloud private and OpenShift and I'm most thrilled to have mr. Michael elder a distinguished engineer from IBM here with us today and you know Michael would you maybe describe for the folks what we're actually going to go over today absolutely so when you think about how do I carry forward existing applications how do I build new applications as well you're creating micro services that always need a mixture of data and messaging and caching so this example application shows java-based micro services running on WebSphere Liberty each of which are then leveraging things like IBM MQ for messaging IBM db2 for data operational decision manager all of which is fully containerized and running on top of the Red Hat open chip container platform and in fact we're even gonna enhance stock trader to help it understand how you feel but okay hang on so I'm a little slow to the draw sometimes you said we're gonna have an application tell me how I feel exactly exactly you think about your enterprise apps you want to improve customer service understanding how your clients feel can't help you do that okay well this I'd like to see that in action all right let's do it okay so the first thing we'll do is we'll actually take a look at the catalog and here in the IBM cloud private catalog this is all of the content that's available to deploy now into this hybrid solution so we see workloads for IBM will see workloads for other open source packages etc each of these are packaged up as helm charts that are deploying a set of images that will be certified for Red Hat Linux and in this case we're going to go through and start with a simple example with a node out well click a few actions here we'll give it a name now do you have your console up over there I certainly do all right perfect so we'll deploy this into the new old namespace and will deploy notate okay alright anything happening of course it's come right up and so you know what what I really like about this is regardless of if I'm used to using IBM clout private or if I'm used to working with open shift yeah the experience is well with the tool of whatever I'm you know used to dealing with on a daily basis but I mean you know I got to tell you we we deployed node ourselves all the time what about and what about when was the last time you deployed MQ on open shift you never I maybe never all right let's fix that so MQ obviously is a critical component for messaging for lots of highly transactional systems here we'll deploy this as a container on the platform now I'm going to deploy this one again into new worlds I'm gonna disable persistence and for my application I'm going to need a queue manager so I'm going to have it automatically setup my queue manager as well now this will deploy a couple of things what do you see I see IBM in cube all right so there's your stateful set running MQ and of course there's a couple of other components that get stood up as needed here including things like credentials and secrets and the service etc but all of this is they're out of the box ok so impressive right but that's the what I think you know what I'm really looking at is maybe how a well is this running you know what else does this partnership bring when I look at IBM cloud private windows inches well so that's a key reason about why it's not just about IBM middleware running on open shift but also IBM cloud private because ultimately you need that common management plane when you deploy a container the next thing you have to worry about is how do I get its logs how do I manage its help how do I manage license consumption how do I have a common security plan right so cloud private is that enveloping wrapper around IBM middleware to provide those capabilities in a common way and so here we'll switch over to our dashboard this is our Griffin and Prometheus stack that's deployed also now on cloud private running on OpenShift and we're looking at a different namespace we're looking at the stock trader namespace we'll go back to this app here momentarily and we can see all the different pieces what if you switch over to the stock trader workspace on open shipped yeah I think we might be able to do that here hey there it is alright and so what you're gonna see here all the different pieces of this op right there's d b2 over here I see the portfolio Java microservice running on Webster Liberty I see my Redis cash I see MQ all of these are the components we saw in the architecture picture a minute ago ya know so this is really great I mean so maybe let's take a look at the actual application I see we have a fine stock trader app here now we mentioned understanding how I feel exactly you know well I feel good that this is you know a brand new stock trader app versus the one from ten years ago that don't feel like we used forever so the key thing is this app is actually all of those micro services in addition to things like business rules etc to help understand the loyalty program so one of the things we could do here is actually enhance it with a a AI service from Watson this is tone analyzer it helps me understand how that user actually feels and will be able to go through and submit some feedback to understand that user ok well let's see if we can take a look at that so I tried to click on youth clearly you're not very happy right now here I'll do one quick thing over here go for it we'll clear a cache for our sample lab so look you guys don't actually know as Michael and I just wrote this no js' front end backstage while Arvin was actually talking with Matt and we deployed it real-time using continuous integration and continuous delivery that we have available with openshift well the great thing is it's a live demo right so we're gonna do it all live all the time all right so you mentioned it'll tell me how I'm feeling right so if we look at so right there it looks like they're pretty angry probably because our cache hadn't been cleared before we started the demo maybe well that would make me angry but I should be happy because I mean I have a lot of money well it's it's more than I get today for sure so but you know again I don't want to remain angry so does Watson actually understand southern I know it speaks like eighty different languages but well you know I'm from South Carolina to understand South Carolina southern but I don't know about your North Carolina southern alright well let's give it a go here y'all done a real real know no profanity now this is live I've done a real real nice job on this here fancy demo all right hey all right likes me now all right cool and the key thing is just a quick note right it's showing you've got a free trade so we can integrate those business rules and then decide to I do put one trade if you're angry give me more it's all bringing it together into one platform all running on open show yeah and I can see the possibilities right of we've not only deployed services but getting that feedback from our customers to understand well how well the services are being used and are people really happy with what they have hey listen Michael this was amazing I read you joining us today I hope you guys enjoyed this demo as well so all of you know who this next company is as I look out through the crowd based on what I can actually see with the sun shining down on me right now I can see their influence everywhere you know Sports is in our everyday lives and these guys are equally innovative in that space as they are with hybrid cloud computing and they use that to help maintain and spread their message throughout the world of course I'm talking about Nike I think you'll enjoy this next video about Nike and their brand and then we're going to hear directly from my twitting about what they're doing with Red Hat technology new developments in the top story of the day the world has stopped turning on its axis top scientists are currently racing to come up with a solution everybody going this way [Music] the wrong way [Music] please welcome Nike vice president of infrastructure engineering Mike witig [Music] hi everybody over the last five years at Nike we have transformed our technology landscape to allow us to connect more directly to our consumers through our retail stores through Nike comm and our mobile apps the first step in doing that was redesigning our global network to allow us to have direct connectivity into both Asia and AWS in Europe in Asia and in the Americas having that proximity to those cloud providers allows us to make decisions about application workload placement based on our strategy instead of having design around latency concerns now some of those workloads are very elastic things like our sneakers app for example that needs to burst out during certain hours of the week there's certain moments of the year when we have our high heat product launches and for those type of workloads we write that code ourselves and we use native cloud services but being hybrid has allowed us to not have to write everything that would go into that app but rather just the parts that are in that application consumer facing experience and there are other back-end systems certain core functionalities like order management warehouse management finance ERP and those are workloads that are third-party applications that we host on relevent over the last 18 months we have started to deploy certain elements of those core applications into both Azure and AWS hosted on rel and at first we were pretty cautious that we started with development environments and what we realized after those first successful deployments is that are the impact of those cloud migrations on our operating model was very small and that's because the tools that we use for monitoring for security for performance tuning didn't change even though we moved those core applications into Azure in AWS because of rel under the covers and getting to the point where we have that flexibility is a real enabler as an infrastructure team that allows us to just be in the yes business and really doesn't matter where we want to deploy different workload if either cloud provider or on-prem anywhere on the planet it allows us to move much more quickly and stay much more directed to our consumers and so having rel at the core of our strategy is a huge enabler for that flexibility and allowing us to operate in this hybrid model thanks very much [Applause] what a great example it's really nice to hear an IQ story of using sort of relish that foundation to enable their hybrid clout enable their infrastructure and there's a lot that's the story we spent over ten years making that possible for rel to be that foundation and we've learned a lot in that but let's circle back for a minute to the software vendors and what kicked off the day today with IBM IBM s one of the largest software portfolios on the planet but we learned through our journey on rel that you need thousands of vendors to be able to sport you across all of your different industries solve any challenge that you might have and you need those vendors aligned with your technology direction this is doubly important when the technology direction is changing like with containers we saw that two years ago bread had introduced our container certification program now this program was focused on allowing you to identify vendors that had those shared technology goals but identification by itself wasn't enough in this fast-paced world so last year we introduced trusted content we introduced our container health index publicly grading red hats images that form the foundation for those vendor images and that was great because those of you that are familiar with containers know that you're taking software from vendors you're combining that with software from companies like Red Hat and you are putting those into a single container and for you to run those in a mission-critical capacity you have to know that we can both stand by and support those deployments but even trusted content wasn't enough so this year I'm excited that we are extending once again to introduce trusted operations now last week we announced that cube con kubernetes conference the kubernetes operator SDK the goal of the kubernetes operators is to allow any software provider on kubernetes to encode how that software should run this is a critical part of a container ecosystem not just being able to find the vendors that you want to work with not just knowing that you can trust what's inside the container but knowing that you can efficiently run that software now the exciting part is because this is so closely aligned with the upstream technology that today we already have four partners that have functioning operators specifically Couchbase dynaTrace crunchy and black dot so right out of the gate you have security monitoring data store options available to you these partners are really leading the charge in terms of what it means to run their software on OpenShift but behind these four we have many more in fact this morning we announced over 60 partners that are committed to building operators they're taking their domain expertise and the software that they wrote that they know and extending that into how you are going to run that on containers in environments like OpenShift this really brings the power of being able to find the vendors being able to trust what's inside and know that you can run their software as efficiently as anyone else on the planet but instead of just telling you about this we actually want to show you this in action so why don't we bring back up the demo team to give you a little tour of what's possible with it guys thanks Matt so Matt talked about the concept of operators and when when I think about operators and what they do it's taking OpenShift based services and making them even smarter giving you insight into how they do things for example have we had an operator for the nodejs service that I was running earlier it would have detected the problem and fixed itself but when we look at it what really operators do when I look at it from an ecosystem perspective is for ISVs it's going to be a catalyst that's going to allow them to make their services as manageable and it's flexible and as you know maintainable as any public cloud service no matter where OpenShift is running and to help demonstrate this I've got my buddy Rob here Rob are we ready on the demo front we're ready awesome now I notice this screen looks really familiar to me but you know I think we want to give folks here a dev preview of a couple of things well we want to show you is the first substantial integration of the core OS tectonic technology with OpenShift and then the other thing is we are going to dive in a little bit more into operators and their usefulness so Rob yeah so what we're looking at here is the service catalog that you know and love and openshift and we've got a few new things in here we've actually integrated operators into the Service Catalog and I'm going to take this filter and give you a look at some of them that we have today so you can see we've got a list of operators exposed and this is the same way that your developers are already used to integrating with products they're right in your catalog and so now these are actually smarter services but how can we maybe look at that I mentioned that there's maybe a new view I'm used to seeing this as a developer but I hear we've got some really cool stuff if I'm the administrator of the console yeah so we've got a whole new side of the console for cluster administrators to get a look at under the infrastructure versus this dev focused view that we're looking at today today so let's go take a look at it so the first thing you see here is we've got a really rich set of monitoring and health status so we can see that we've got some alerts firing our control plane is up and we can even do capacity planning anything that you need to do to maintenance your cluster okay so it's it's not only for the the services in the cluster and doing things that you know I may be normally as a human operator would have to do but this this console view also gives me insight into the infrastructure itself right like maybe the nodes and maybe handling the security context is that true yes so these are new capabilities that we're bringing to open shift is the ability to do node management things like drain and unscheduled nodes to do day-to-day maintenance and then as well as having security constraints and things like role bindings for example and the exciting thing about this is this is a view that you've never been able to see before it's cross-cutting across namespaces so here we've got a number of admin bindings and we can see that they're connected to a number of namespaces and these would represent our engineering teams all the groups that are using the cluster and we've never had this view before this is a perfect way to audit your security you know it actually is is pretty exciting I mean I've been fortunate enough to be on the up and shift team since day one and I know that operations view is is something that we've you know strived for and so it's really exciting to see that we can offer that now but you know really this was a we want to get into what operators do and what they can do for us and so maybe you show us what the operator console looks like yeah so let's jump on over and see all the operators that we have installed on the cluster you can see that these mirror what we saw on the Service Catalog earlier now what we care about though is this Couchbase operator and we're gonna jump into the demo namespace as I said you can share a number of different teams on a cluster so it's gonna jump into this namespace okay cool so now what we want to show you guys when we think about operators you know we're gonna have a scenario here where there's going to be multiple replicas of a Couchbase service running in the cluster and then we're going to have a stateful set and what's interesting is those two things are not enough if I'm really trying to run this as a true service where it's highly available in persistent there's things that you know as a DBA that I'm normally going to have to do if there's some sort of node failure and so what we want to demonstrate to you is where operators combined with the power that was already within OpenShift are now coming together to keep this you know particular database service highly available and something that we can continue using so Rob what have you got there yeah so as you can see we've got our couch based demo cluster running here and we can see that it's up and running we've got three members we've got an off secret this is what's controlling access to a UI that we're gonna look at in a second but what really shows the power of the operator is looking at this view of the resources that it's managing you can see that we've got a service that's doing load balancing into the cluster and then like you said we've got our pods that are actually running the software itself okay so that's cool so maybe for everyone's benefit so we can show that this is happening live could we bring up the the Couchbase console please and keep up the openshift console both sides so what we see there we go so what we see on the on the right hand side is obviously the same console Rob was working in on the left-hand side as you can see by the the actual names of the pods that are there the the couch based services that are available and so Rob maybe um let's let's kill something that's always fun to do on stage yeah this is the power of the operator it's going to recover it so let's browse on over here and kill node number two so we're gonna forcefully kill this and kick off the recovery and I see right away that because of the integration that we have with operators the Couchbase console immediately picked up that something has changed in the environment now why is that important normally a human being would have to get that alert right and so with operators now we've taken that capability and we've realized that there has been a new event within the environment this is not something that you know kubernetes or open shipped by itself would be able to understand now I'm presuming we're gonna end up doing something else it's not just seeing that it failed and sure enough there we go remember when you have a stateful application rebalancing that data and making it available is just as important as ensuring that the disk is attached so I mean Rob thank you so much for you know driving this for us today and being here I mean you know not only Couchbase but as was mentioned by matt we also have you know crunchy dynaTrace and black duck I would encourage you all to go visit their booths out on the floor today and understand what they have available which are all you know here with a dev preview and then talk to the many other partners that we have that are also looking at operators so again rub thank you for joining us today Matt come on out okay this is gonna make for an exciting year of just what it means to consume container base content I think containers change how customers can get that I believe operators are gonna change how much they can trust running that content let's circle back to one more partner this next partner we have has changed the landscape of computing specifically with their work on hardware design work on core Linux itself you know in fact I think they've become so ubiquitous with computing that we often overlook the technological marvels that they've been able to overcome now for myself I studied computer engineering so in the late 90s I had the chance to study processor design I actually got to build one of my own processors now in my case it was the most trivial processor that you could imagine it was an 8-bit subtractor which means it can subtract two numbers 256 or smaller but in that process I learned the sheer complexity that goes into processor design things like wire placements that are so close that electrons can cut through the insulation in short and then doing those wire placements across three dimensions to multiple layers jamming in as many logic components as you possibly can and again in my case this was to make a processor that could subtract two numbers but once I was done with this the second part of the course was studying the Pentium processor now remember that moment forever because looking at what the Pentium processor was able to accomplish it was like looking at alien technology and the incredible thing is that Intel our next partner has been able to keep up that alien like pace of innovation twenty years later so we're excited have Doug Fisher here let's hear a little bit more from Intel for business wide open skies an open mind no matter the context the idea of being open almost only suggests the potential of infinite possibilities and that's exactly the power of open source whether it's expanding what's possible in business the science and technology or for the greater good which is why-- open source requires the involvement of a truly diverse community of contributors to scale and succeed creating infinite possibilities for technology and more importantly what we do with it [Music] you know what Intel one of our core values is risk-taking and I'm gonna go just a bit off script for a second and say I was just backstage and I saw a gentleman that looked a lot like Scott Guthrie who runs all of Microsoft's cloud enterprise efforts wearing a red shirt talking to Cormier I'm just saying I don't know maybe I need some more sleep but that's what I saw as we approach Intel's 50th anniversary these words spoken by our co-founder Robert Noyce are as relevant today as they were decades ago don't be encumbered by history this is about breaking boundaries in technology and then go off and do something wonderful is about innovation and driving innovation in our industry and Intel we're constantly looking to break boundaries to advance our technology in the cloud in enterprise space that is no different so I'm going to talk a bit about some of the boundaries we've been breaking and innovations we've been driving at Intel starting with our Intel Xeon platform Orion Xeon scalable platform we launched several months ago which was the biggest and mark the most advanced movement in this technology in over a decade we were able to drive critical performance capabilities unmatched agility and added necessary and sufficient security to that platform I couldn't be happier with the work we do with Red Hat and ensuring that those hero features that we drive into our platform they fully expose to all of you to drive that innovation to go off and do something wonderful well there's taking advantage of the performance features or agility features like our advanced vector extensions or avx-512 or Intel quick exist those technologies are fully embraced by Red Hat Enterprise Linux or whether it's security technologies like txt or trusted execution technology are fully incorporated and we look forward to working with Red Hat on their next release to ensure that our advancements continue to be exposed and their platform and all these workloads that are driving the need for us to break boundaries and our technology are driving more and more need for flexibility and computing and that's why we're excited about Intel's family of FPGAs to help deliver that additional flexibility for you to build those capabilities in your environment we have a broad set of FPGA capabilities from our power fish at Mac's product line all the way to our performance product line on the 6/10 strat exten we have a broad set of bets FPGAs what i've been talking to customers what's really exciting is to see the combination of using our Intel Xeon scalable platform in combination with FPGAs in addition to the acceleration development capabilities we've given to software developers combining all that together to deliver better and better solutions whether it's helping to accelerate data compression well there's pattern recognition or data encryption and decryption one of the things I saw in a data center recently was taking our Intel Xeon scalable platform utilizing the capabilities of FPGA to do data encryption between servers behind the firewall all the while using the FPGA to do that they preserve those precious CPU cycles to ensure they delivered the SLA to the customer yet provided more security for their data in the data center one of the edges in cyber security is innovation and route of trust starts at the hardware we recently renewed our commitment to security with our security first pledge has really three elements to our security first pledge first is customer first urgency we have now completed the release of the micro code updates for protection on our Intel platforms nine plus years since launch to protect against things like the side channel exploits transparent and timely communication we are going to communicate timely and openly on our Intel comm website whether it's about our patches performance or other relevant information and then ongoing security assurance we drive security into every one of our products we redesigned a portion of our processor to add these partition capability which is adding additional walls between applications and user level privileges to further secure that environment from bad actors I want to pause for a second and think everyone in this room involved in helping us work through our security first pledge this isn't something we do on our own it takes everyone in this room to help us do that the partnership and collaboration was next to none it's the most amazing thing I've seen since I've been in this industry so thank you we don't stop there we continue to advance our security capabilities cross-platform solutions we recently had a conference discussion at RSA where we talked about Intel Security Essentials where we deliver a framework of capabilities and the end that are in our silicon available for those to innovate our customers and the security ecosystem to innovate on a platform in a consistent way delivering that assurance that those capabilities will be on that platform we also talked about things like our security threat technology threat detection technology is something that we believe in and we launched that at RSA incorporates several elements one is ability to utilize our internal graphics to accelerate some of the memory scanning capabilities we call this an accelerated memory scanning it allows you to use the integrated graphics to scan memory again preserving those precious cycles on the core processor Microsoft adopted this and are now incorporated into their defender product and are shipping it today we also launched our threat SDK which allows partners like Cisco to utilize telemetry information to further secure their environments for cloud workloads so we'll continue to drive differential experiences into our platform for our ecosystem to innovate and deliver more and more capabilities one of the key aspects you have to protect is data by 2020 the projection is 44 zettabytes of data will be available 44 zettabytes of data by 2025 they project that will grow to a hundred and eighty s data bytes of data massive amount of data and what all you want to do is you want to drive value from that data drive and value from that data is absolutely critical and to do that you need to have that data closer and closer to your computation this is why we've been working Intel to break the boundaries in memory technology with our investment in 3d NAND we're reducing costs and driving up density in that form factor to ensure we get warm data closer to the computing we're also innovating on form factors we have here what we call our ruler form factor this ruler form factor is designed to drive as much dense as you can in a 1u rack we're going to continue to advance the capabilities to drive one petabyte of data at low power consumption into this ruler form factor SSD form factor so our innovation continues the biggest breakthrough and memory technology in the last 25 years in memory media technology was done by Intel we call this our 3d crosspoint technology and our 3d crosspoint technology is now going to be driven into SSDs as well as in a persistent memory form factor to be on the memory bus giving you the speed of memory characteristics of memory as well as the characteristics of storage given a new tier of memory for developers to take full advantage of and as you can see Red Hat is fully committed to integrating this capability into their platform to take full advantage of that new capability so I want to thank Paul and team for engaging with us to make sure that that's available for all of you to innovate on and so we're breaking boundaries and technology across a broad set of elements that we deliver that's what we're about we're going to continue to do that not be encumbered by the past your role is to go off and doing something wonderful with that technology all ecosystems are embracing this and driving it including open source technology open source is a hub of innovation it's been that way for many many years that innovation that's being driven an open source is starting to transform many many businesses it's driving business transformation we're seeing this coming to light in the transformation of 5g driving 5g into the networked environment is a transformational moment an open source is playing a pivotal role in that with OpenStack own out and opie NFV and other open source projects were contributing to and participating in are helping drive that transformation in 5g as you do software-defined networks on our barrier breaking technology we're also seeing this transformation rapidly occurring in the cloud enterprise cloud enterprise are growing rapidly and innovation continues our work with virtualization and KVM continues to be aggressive to adopt technologies to advance and deliver more capabilities in virtualization as we look at this with Red Hat we're now working on Cube vert to help move virtualized workloads onto these platforms so that we can now have them managed at an open platform environment and Cube vert provides that so between Intel and Red Hat and the community we're investing resources to make certain that comes to product as containers a critical feature in Linux becomes more and more prevalent across the industry the growth of container elements continues at a rapid rapid pace one of the things that we wanted to bring to that is the ability to provide isolation without impairing the flexibility the speed and the footprint of a container with our clear container efforts along with hyper run v we were able to combine that and create we call cotta containers we launched this at the end of last year cotta containers is designed to have that container element available and adding elements like isolation both of these events need to have an orchestration and management capability Red Hat's OpenShift provides that capability for these workloads whether containerized or cube vert capabilities with virtual environments Red Hat openshift is designed to take that commercial capability to market and we've been working with Red Hat for several years now to develop what we call our Intel select solution Intel select solutions our Intel technology optimized for downstream workloads as we see a growth in a workload will work with a partner to optimize a solution on Intel technology to deliver the best solution that could be deployed quickly our effort here is to accelerate the adoption of these type of workloads in the market working with Red Hat's so now we're going to be deploying an Intel select solution design and optimized around Red Hat OpenShift we expect the industry's start deploying this capability very rapidly I'm excited to announce today that Lenovo is committed to be the first platform company to deliver this solution to market the Intel select solution to market will be delivered by Lenovo now I talked about what we're doing in industry and how we're transforming businesses our technology is also utilized for greater good there's no better example of this than the worked by dr. Stephen Hawking it was a sad day on March 14th of this year when dr. Stephen Hawking passed away but not before Intel had a 20-year relationship with dr. Hawking driving breakthrough capabilities innovating with him driving those robust capabilities to the rest of the world one of our Intel engineers an Intel fellow which is the highest technical achievement you can reach at Intel got to spend 10 years with dr. Hawking looking at innovative things they could do together with our technology and his breakthrough innovative thinking so I thought it'd be great to bring up our Intel fellow Lema notch Minh to talk about her work with dr. Hawking and what she learned in that experience come on up Elina [Music] great to see you Thanks something going on about the breakthrough breaking boundaries and Intel technology talk about how you use that in your work with dr. Hawking absolutely so the most important part was to really make that technology contextually aware because for people with disability every single interaction takes a long time so whether it was adapting for example the language model of his work predictor to understand whether he's gonna talk to people or whether he's writing a book on black holes or to even understand what specific application he might be using and then making sure that we're surfacing only enough actions that were relevant to reduce that amount of interaction so the tricky part is really to make all of that contextual awareness happen without totally confusing the user because it's constantly changing underneath it so how is that your work involving any open source so you know the problem with assistive technology in general is that it needs to be tailored to the specific disability which really makes it very hard and very expensive because it can't utilize the economies of scale so basically with the system that we built what we wanted to do is really enable unleashing innovation in the world right so you could take that framework you could tailor to a specific sensor for example a brain computer interface or something like that where you could actually then support a different set of users so that makes open-source a perfect fit because you could actually build and tailor and we you spoke with dr. Hawking what was this view of open source is it relevant to him so yeah so Stephen was adamant from the beginning that he wanted a system to benefit the world and not just himself so he spent a lot of time with us to actually build this system and he was adamant from day one that he would only engage with us if we were commit to actually open sourcing the technology that's fantastic and you had the privilege of working with them in 10 years I know you have some amazing stories to share so thank you so much for being here thank you so much in order for us to scale and that's what we're about at Intel is really scaling our capabilities it takes this community it takes this community of diverse capabilities it takes two births thought diverse thought of dr. Hawking couldn't be more relevant but we also are proud at Intel about leading efforts of diverse thought like women and Linux women in big data other areas like that where Intel feels that that diversity of thinking and engagement is critical for our success so as we look at Intel not to be encumbered by the past but break boundaries to deliver the technology that you all will go off and do something wonderful with we're going to remain committed to that and I look forward to continue working with you thank you and have a great conference [Applause] thank God now we have one more customer story for you today when you think about customers challenges in the technology landscape it is hard to ignore the public cloud these days public cloud is introducing capabilities that are driving the fastest rate of innovation that we've ever seen in our industry and our next customer they actually had that same challenge they wanted to tap into that innovation but they were also making bets for the long term they wanted flexibility and providers and they had to integrate to the systems that they already have and they have done a phenomenal job in executing to this so please give a warm welcome to Kerry Pierce from Cathay Pacific Kerry come on thanks very much Matt hi everyone thank you for giving me the opportunity to share a little bit about our our cloud journey let me start by telling you a little bit about Cathay Pacific we're an international airline based in Hong Kong and we serve a passenger and a cargo network to over 200 destinations in 52 countries and territories in the last seventy years and years seventy years we've made substantial investments to develop Hong Kong as one of the world's leading transportation hubs we invest in what matters most to our customers to you focusing on our exemplary service and our great product and it's both on the ground and in the air we're also investing and expanding our network beyond our multiple frequencies to the financial districts such as Tokyo New York and London and we're connecting Asia and Hong Kong with key tech hubs like San Francisco where we have multiple flights daily we're also connecting Asia in Hong Kong to places like Tel Aviv and our upcoming destination of Dublin in fact 2018 is actually going to be one of our biggest years in terms of network expansion and capacity growth and we will be launching in September our longest flight from Hong Kong direct to Washington DC and that'll be using a state-of-the-art Airbus a350 1000 aircraft so that's a little bit about Cathay Pacific let me tell you about our journey through the cloud I'm not going to go into technical details there's far smarter people out in the audience who will be able to do that for you just focus a little bit about what we were trying to achieve and the people side of it that helped us get there we had a couple of years ago no doubt the same issues that many of you do I don't think we're unique we had a traditional on-premise non-standardized fragile infrastructure it didn't meet our infrastructure needs and it didn't meet our development needs it was costly to maintain it was costly to grow and it really inhibited innovation most importantly it slowed the delivery of value to our customers at the same time you had the hype of cloud over the last few years cloud this cloud that clouds going to fix the world we were really keen on making sure we didn't get wound up and that so we focused on what we needed we started bottom up with a strategy we knew we wanted to be clouded Gnostic we wanted to have active active on-premise data centers with a single network and fabric and we wanted public clouds that were trusted and acted as an extension of that environment not independently we wanted to avoid single points of failure and we wanted to reduce inter dependencies by having loosely coupled designs and finally we wanted to be scalable we wanted to be able to cater for sudden surges of demand in a nutshell we kind of just wanted to make everything easier and a management level we wanted to be a broker of services so not one size fits all because that doesn't work but also not one of everything we want to standardize but a pragmatic range of services that met our development and support needs and worked in harmony with our public cloud not against it so we started on a journey with red hat we implemented Red Hat cloud forms and ansible to manage our hybrid cloud we also met implemented Red Hat satellite to maintain a manager environment we built a Red Hat OpenStack on crimson vironment to give us an alternative and at the same time we migrated a number of customer applications to a production public cloud open shift environment but it wasn't all Red Hat you love heard today that the Red Hat fits within an overall ecosystem we looked at a number of third-party tools and services and looked at developing those into our core solution I think at last count we had tried and tested somewhere past eight different tools and at the moment we still have around 62 in our environment that help us through that journey but let me put the technical solution aside a little bit because it doesn't matter how good your technical solution is if you don't have the culture and the people to get it right as a group we needed to be aligned for delivery and we focused on three core behaviors we focused on accountability agility and collaboration now I was really lucky we've got a pretty fantastic team for whom that was actually pretty easy but but again don't underestimate the importance of getting the culture and the people right because all the technology in the world doesn't matter if you don't have that right I asked the team what did we do differently because in our situation we didn't go out and hire a bunch of new people we didn't go out and hire a bunch of consultants we had the staff that had been with us for 10 20 and in some cases 30 years so what did we do differently it was really simple we just empowered and supported our staff we knew they were the smart ones they were the ones that were dealing with a legacy environment and they had the passion to make the change so as a team we encouraged suggestions and contributions from our overall IT community from the bottom up we started small we proved the case we told the story and then we got by him and only did did we implement wider the benefits the benefit through our staff were a huge increase in staff satisfaction reduction and application and platform outage support incidents risk free and failsafe application releases work-life balance no more midnight deployments and our application and infrastructure people could really focus on delivering customer value not on firefighting and for our end customers the people that travel with us it was really really simple we could provide a stable service that allowed for faster releases which meant we could deliver value faster in terms of stats we migrated 16 production b2c applications to a public cloud OpenShift environment in 12 months we decreased provisioning time from weeks or occasionally months we were waiting for hardware two minutes and we had a hundred percent availability of our key customer facing systems but most importantly it was about people we'd built a culture a culture of innovation that was built on a foundation of collaboration agility and accountability and that permeated throughout the IT organization not those just those people that were involved in the project everyone with an IT could see what good looked like and to see what it worked what it looked like in terms of working together and that was a key foundation for us the future for us you will have heard today everything's changing so we're going to continue to develop our open hybrid cloud onboard more public cloud service providers continue to build more modern applications and leverage the emerging technology integrate and automate everything we possibly can and leverage more open source products with the great support from the open source community so there you have it that's our journey I think we succeeded by not being over awed and by starting with the basics the technology was key obviously it's a cool component but most importantly it was a way we approached our transition we had a clear strategy that was actually developed bottom-up by the people that were involved day to day and we empowered those people to deliver and that provided benefits to both our staff and to our customers so thank you for giving the opportunity to share and I hope you enjoy the rest of the summer [Applause] I got one thanks what a great story would a great customer story to close on and we have one more partner to come up and this is a partner that all of you know that's Microsoft Microsoft has gone through an amazing transformation they've we've built an incredibly meaningful partnership with them all the way from our open source collaboration to what we do in the business side we started with support for Red Hat Enterprise Linux on hyper-v and that was truly just the beginning today we're announcing one of the most exciting joint product offerings on the market today let's please give a warm welcome to Paul correr and Scott Scott Guthrie to tell us about it guys come on out you know Scot welcome welcome to the Red Hat summer thanks for coming really appreciate it great to be here you know many surprises a lot of people when we you know published a list of speakers and then you rock you were on it and you and I are on stage here it's really really important and exciting to us exciting new partnership we've worked together a long time from the hypervisor up to common support and now around hybrid hybrid cloud maybe from your perspective a little bit of of what led us here well you know I think the thing that's really led us here is customers and you know Microsoft we've been on kind of a transformation journey the last several years where you know we really try to put customers at the center of everything that we do and you know as part of that you quickly learned from customers in terms of I'm including everyone here just you know you've got a hybrid of state you know both in terms of what you run on premises where it has a lot of Red Hat software a lot of Microsoft software and then really is they take the journey to the cloud looking at a hybrid of state in terms of how do you run that now between on-premises and a public cloud provider and so I think the thing that both of us are recognized and certainly you know our focus here at Microsoft has been you know how do we really meet customers with where they're at and where they want to go and make them successful in that journey and you know it's been fantastic working with Paul and the Red Hat team over the last two years in particular we spend a lot of time together and you know really excited about the journey ahead so um maybe you can share a bit more about the announcement where we're about to make today yeah so it's it's it's a really exciting announcement it's and really kind of I think first of its kind in that we're delivering a Red Hat openshift on Azure service that we're jointly developing and jointly managing together so this is different than sort of traditional offering where it's just running inside VMs and it's sort of two vendors working this is really a jointly managed service that we're providing with full enterprise support with a full SLA where the you know single throat to choke if you will although it's collectively both are choke the throats in terms of making sure that it works well and it's really uniquely designed around this hybrid world and in that it supports will support both Windows and Linux containers and it role you know it's the same open ship that runs both in the public cloud on Azure and on-premises and you know it's something that we hear a lot from customers I know there's a lot of people here that have asked both of us for this and super excited to be able to talk about it today and we're gonna show off the first demo of it just a bit okay well I'm gonna ask you to elaborate a bit more about this how this fits into the bigger Microsoft picture and I'll get out of your way and so thanks again thank you for coming here we go thanks Paul so I thought I'd spend just a few minutes talking about wouldn't you know that some of the work that we're doing with Microsoft Asher and the overall Microsoft cloud I didn't go deeper in terms of the new offering that we're announcing today together with red hat and show demo of it actually in action in a few minutes you know the high level in terms of you know some of the work that we've been doing at Microsoft the last couple years you know it's really been around this this journey to the cloud that we see every organization going on today and specifically the Microsoft Azure we've been providing really a cloud platform that delivers the infrastructure the application and kind of the core computing needs that organizations have as they want to be able to take advantage of what the cloud has to offer and in terms of our focus with Azure you know we've really focused we deliver lots and lots of different services and features but we focused really in particular on kind of four key themes and we see these four key themes aligning very well with the journey Red Hat it's been on and it's partly why you know we think the partnership between the two companies makes so much sense and you know for us the thing that we've been really focused on has been with a or in terms of how do we deliver a really productive cloud meaning how do we enable you to take advantage of cutting-edge technology and how do we kind of accelerate the successful adoption of it whether it's around the integration of managed services that we provide both in terms of the application space in the data space the analytic and AI space but also in terms of just the end-to-end management and development tools and how all those services work together so that teams can basically adopt them and be super successful yeah we deeply believe in hybrid and believe that the world is going to be a multi cloud and a multi distributed world and how do we enable organizations to be able to take the existing investments that they already have and be able to easily integrate them in a public cloud and with a public cloud environment and get immediate ROI on day one without how to rip and replace tons of solutions you know we're moving very aggressively in the AI space and are looking to provide a rich set of AI services both finished AI models things like speech detection vision detection object motion etc that any developer even at non data scientists can integrate to make application smarter and then we provide a rich set of AI tooling that enables organizations to build custom models and be able to integrate them also as part of their applications and with their data and then we invest very very heavily on trust Trust is sort of at the core of a sure and we now have more compliant certifications than any other cloud provider we run in more countries than any other cloud provider and we really focus around unique promises around data residency data sovereignty and privacy that are really differentiated across the industry and terms of where Iser runs today we're in 50 regions around the world so our region for us is typically a cluster of multiple data centers that are grouped together and you can see we're pretty much on every continent with the exception of Antarctica today and the beauty is you're going to be able to take the Red Hat open shift service and run it on ashore in each of these different locations and really have a truly global footprint as you look to build and deploy solutions and you know we've seen kind of this focus on productivity hybrid intelligence and Trust really resonate in the market and about 90 percent of Fortune 500 companies today are deployed on Azure and you heard Nike talked a little bit earlier this afternoon about some of their journeys as they've moved to a dot public cloud this is a small logo of just a couple of the companies that are on ashore today and what I do is actually even before we dive into the open ship demo is actually just show a quick video you know one of the companies thing there are actually several people from that organization here today Deutsche Bank who have been working with both Microsoft and Red Hat for many years Microsoft on the other side Red Hat both on the rel side and then on the OpenShift side and it's just one of these customers that have helped bring the two companies together to deliver this managed openshift service on Azure and so I'm just going to play a quick video of some of the folks that Deutsche Bank talking about their experiences and what they're trying to get out of it so we could roll the video that'd be great technology is at the absolute heart of Deutsche Bank we've recognized that the cost of running our infrastructure was particularly high there was a enormous amount of under utilization we needed a platform which was open to polyglot architecture supporting any kind of application workload across the various business lines of the third we analyzed over 60 different vendor products and we ended up with Red Hat openshift I'm super excited Microsoft or supporting Linux so strongly to adopting a hybrid approach we chose as here because Microsoft was the ideal partner to work with on constructs around security compliance business continuity as you as in all the places geographically that we need to be we have applications now able to go from a proof of concept to production in three weeks that is already breaking records openshift gives us given entities and containers allows us to apply the same sets of processes automation across a wide range of our application landscape on any given day we run between seven and twelve thousand containers across three regions we start see huge levels of cost reduction because of the level of multi-tenancy that we can achieve through containers open ship gives us an abstraction layer which is allows us to move our applications between providers without having to reconfigure or recode those applications what's really exciting for me about this journey is the way they're both Red Hat and Microsoft have embraced not just what we're doing but what each other are doing and have worked together to build open shift as a first-class citizen with Microsoft [Applause] in terms of what we're announcing today is a new fully managed OpenShift service on Azure and it's really the first fully managed service provided end-to-end across any of the cloud providers and it's jointly engineer operated and supported by both Microsoft and Red Hat and that means again sort of one service one SLA and both companies standing for a link firmly behind it really again focusing around how do we make customers successful and as part of that really providing the enterprise-grade not just isolates but also support and integration testing so you can also take advantage of all your rel and linux-based containers and all of your Windows server based containers and how can you run them in a joint way with a common management stack taking the advantage of one service and get maximum density get maximum code reuse and be able to take advantage of a containerized world in a better way than ever before and make this customer focus is very much at the center of what both companies are really centered around and so what if I do be fun is rather than just talk about openshift as actually kind of show off a little bit of a journey in terms of what this move to take advantage of it looks like and so I'd like to invite Brendan and Chris onstage who are actually going to show off a live demo of openshift on Azure in action and really walk through how to provision the service and basically how to start taking advantage of it using the full open ship ecosystem so please welcome Brendan and Chris we're going to join us on stage for a demo thanks God thanks man it's been a good afternoon so you know what we want to get into right now first I'd like to think Brandon burns for joining us from Microsoft build it's a busy week for you I'm sure your own stage there a few times as well you know what I like most about what we just announced is not only the business and technical aspects but it's that operational aspect the uniqueness the expertise that RedHat has for running OpenShift combined with the expertise that Microsoft has within Azure and customers are going to get this joint offering if you will with you know Red Hat OpenShift on Microsoft Azure and so you know kind of with that again Brendan I really appreciate you being here maybe talk to the folks about what we're going to show yeah so we're going to take a look at what it looks like to deploy OpenShift on to Azure via the new OpenShift service and the real selling point the really great part of this is the the deep integration with a cloud native app API so the same tooling that you would use to create virtual machines to create disks trade databases is now the tooling that you're going to use to create an open chip cluster so to show you this first we're going to create a resource group here so we're going to create that resource group in East us using the AZ tool that's the the azure command-line tooling a resource group is sort of a folder on Azure that holds all of your stuff so that's gonna come back into the second I've created my resource group in East us and now we're gonna use that exact same tool calling into into Azure api's to provision an open shift cluster so here we go we have AZ open shift that's our new command line tool putting it into that resource group I'm gonna get into East us alright so it's gonna take a little bit of time to deploy that open shift cluster it's doing a bunch of work behind the scenes provisioning all kinds of resources as well as credentials to access a bunch of different as your API so are we actually able to see this to you yeah so we can cut over to in just a second we can cut over to that resource group in a reload so Brendan while relating the beauty of what you know the teams have been doing together already is the fact that now open shift is a first-class citizen as it were yeah absolutely within the agent so I presume not only can I do a deployment but I can do things like scale and check my credentials and pretty much everything that I could do with any other service with that that's exactly right so we can anything that you you were used to doing via the my computer has locked up there we go the demo gods are totally with me oh there we go oh no I hit reload yeah that was that was just evil timing on the house this is another use for operators as we talked about earlier today that's right my dashboard should be coming up do I do I dare click on something that's awesome that was totally it was there there we go good job so what's really interesting about this I've also heard that it deploys you know in as little as five to six minutes which is really good for customers they want to get up and running with it but all right there we go there it is who managed to make it see that shows that it's real right you see the sweat coming off of me there but there you can see the I feel it you can see the various resources that are being created in order to create this openshift cluster virtual machines disks all of the pieces provision for you automatically via that one single command line call now of course it takes a few minutes to to create the cluster so in order to show the other side of that integration the integration between openshift and Azure I'm going to cut over to an open shipped cluster that I already have created alright so here you can see my open shift cluster that's running on Microsoft Azure I'm gonna actually log in over here and the first sign you're gonna see of the integration is it's actually using my credentials my login and going through Active Directory and any corporate policies that I may have around smart cards two-factor off anything like that authenticate myself to that open chef cluster so I'll accept that it can access my and now we're gonna load up the OpenShift web console so now this looks familiar to me oh yeah so if anybody's used OpenShift out there this is the exact same console and what we're going to show though is how this console via the open service broker and the open service broker implementation for Azure integrates natively with OpenShift all right so we can go down here and we can actually see I want to deploy a database I'm gonna deploy Mongo as my key value store that I'm going to use but you know like as we talk about management and having a OpenShift cluster that's managed for you I don't really want to have to manage my database either so I'm actually going to use cosmos DB it's a native Azure service it's a multilingual database that offers me the ability to access my data in a variety of different formats including MongoDB fully managed replicated around the world a pretty incredible service so I'm going to go ahead and create that so now Brendan what's interesting I think to me is you know we talked about the operational aspects and clearly it's not you and I running the clusters but you do need that way to interface with it and so when customers are able to deploy this all of this is out of the box there's no additional contemporary like this is what you get when you create when you use that tool to create that open chef cluster this is what you get with all of that integration ok great step through here and go ahead don't have any IP ranges there we go all right and we create that binding all right and so now behind the scenes openshift is integrated with the azure api's with all of my credentials to go ahead and create that distributed database once it's done provisioning actually all of the credentials necessary to access the database are going to be automatically populated into kubernetes available for me inside of OpenShift via service discovery to access from my application without any further work so I think that really shows not only the power of integrating openshift with an azure based API but actually the power of integrating a Druze API is inside of OpenShift to make a truly seamless experience for managing and deploying your containers across a variety of different platforms yeah hey you know Brendan this is great I know you've got a flight to catch because I think you're back onstage in a few hours but you know really appreciate you joining us today absolutely I look forward to seeing what else we do yeah absolutely thank you so much thanks guys Matt you want to come back on up thanks a lot guys if you have never had the opportunity to do a live demo in front of 8,000 people it'll give you a new appreciation for standing up there and doing it and that was really good you know every time I get the chance just to take a step back and think about the technology that we have at our command today I'm in awe just the progress over the last 10 or 20 years is incredible on to think about what might come in the next 10 or 20 years really is unthinkable you even forget 10 years what might come in the next five years even the next two years but this can create a lot of uncertainty in the environment of what's going to be to come but I believe I am certain about one thing and that is if ever there was a time when any idea is achievable it is now just think about what you've seen today every aspect of open hybrid cloud you have the world's infrastructure at your fingertips and it's not stopping you've heard about this the innovation of open source how fast that's evolving and improving this capability you've heard this afternoon from an entire technology ecosystem that's ready to help you on this journey and you've heard from customer after customer that's already started their journey in the successes that they've had you're one of the neat parts about this afternoon you will aren't later this week you will actually get to put your hands on all of this technology together in our live audience demo you know this is what some it's all about for us it's a chance to bring together the technology experts that you can work with to help formulate how to pull off those ideas we have the chance to bring together technology experts our customers and our partners and really create an environment where everyone can experience the power of open source that same spark that I talked about when I was at IBM where I understood the but intial that open-source had for enterprise customers we want to create the environment where you can have your own spark you can have that same inspiration let's make this you know in tomorrow's keynote actually you will hear a story about how open-source is changing medicine as we know it and literally saving lives it is a great example of expanding the ideas it might be possible that we came into this event with so let's make this the best summit ever thank you very much for being here let's kick things off right head down to the Welcome Reception in the expo hall and please enjoy the summit thank you all so much [Music] [Music]