>> live from Boston, Massachusetts. It's the queue covering your red hat. Some twenty nineteen lots. You buy bread >> and good morning. Welcome to Beantown, Boston, Massachusetts to Mina Mons Hometown by the police Town of residents. John Wallis was stupid from here on the Q. Bert had summit and stew for you. Good to see you here. And a home game. >> Yeah, John, Thanks so much. Nice. You know, Boston, The Cube loves Boston. The B C E C is actually where the first cube event was way back in twenty ten. And we wish there were more conferences here in Boston. Gorgeous weather here in the spring. Ah, little chilly at night with the wind coming off the water, but really good. Here is the sixth year we've had the Cube here, right? Had some in my fifth year at the show. Great energy. And, you know, thirty four billion reasons why people are spending a lot of time keeping a close eye on. Let's just know. Yeah, >> jump right in thirty four billion dollar deal. I am red hatt gotta prove by doj uh, here in the States. But there's still some hurdles that they have to get over in order for that to come to fruition, Maybe later this year. That's the expectation. But just your thoughts right now about about that synergy about that opportunity that that we think is about to have. >> Yeah, so? So right, let's get this piece out of the way. Because here at the conference, we're talking about Red Hat. The acquisition has not completed. So while the CEO of IBM you know Jenny will be up on stage tonight along with, you know, Jim White Hirsi over at Hat and Sakina della, you know, flying in from Seattle, where you might get your name yesterday. So you know, at least two of those three your Cuba Lem's. So we'LL get Jenny on one of these days. But, you know, this is a big acquisition, the largest software acquisition ever, and third largest acquisition in tech history. Now we watched the first biggest tech acquisition in history, which was Del buying AMC just a couple of years ago. And this is not the normal. Okay? Hey, we announced it and you know, it closed quietly in a few months. So as you mentioned, DOJ approved it. There's a few more government agencies Europe needs to go through. You never know what China might ask to come in here, but, you know, really, at the core if you look at it, you know, IBM and Red Hat have worked together for decades. You know, we wrote a lot about this when the announcement happened. You know, IBM is no stranger to open source. IBM is no stranger to the clinics and the areas where Red Hat has been growing and expanded too. You see, IBM, they're so communities, you know, super hot space. If you look, you know, Red hat is they're they're open shift platform, which is what Red Hat does for cloud. Native Development has over a thousand customers. They're adding between one hundred one hundred fifty a quarter is what they talk about publicly. We're gonna have some of those customers on this week. So huge area. That multi cloud hybrid cloud world absolutely is where it's at. We did four days of broadcast from IBM. Think earlier this year in San Francisco. And, you know, once again, Jim white hairs and Jenny were on stage together. They're talking about where they've been working together for a long time. and just, you know, some things will change, but from IBM standpoint, they said, Look, you know, the day after this closes, you know, Red Hat doesn't go away. That had just announced new branding, and everybody's like, Well, why are they changing their branding? You know, when you know IBM is taking over and the answer was, Look, Red Hat's going to stay as a standalone entity. IBM says they're not going to have a single lay off, not even HR consolidation, at least in the beginning. We understand, you know, give me your stuff to work out some of these pieces, but there are ears. They will work together. I look at it. John is like the core. What is the biggest piece of IBM's business is services. That Army of services, both from IBM and all of their Esai partners and everybody they worked with Khun really supercharge and help scale some of the environment that red hats doing so really interesting. Expect them to talk a little bit about it. Red hat is way more transparent than your average company. They had an analyst event like a week or two after it happened, and I was really surprised how much they would tell us and that we could talk about publicly. As I said, just cause I've seen so many acquisitions happen, including some you know, mega ones in the past. And we know how little usually you talk about until it it's done and it's signed. And, you know, the bankers and lawyers have been paid all their fees. >> Let me ask you, you raise an interesting point. Um, you know that there are some different approaches, obviously, between IBM redhead, just in terms of their institutional legacies in terms of processes. Red hat. You mentioned very transparent organization. Open source. Right. So we're all about the rebrand. They come out, you know, the drop shadow, man, They got the hat. What's that cultural mix going to be like? Can they truly run independently? Yeah, they're a big piece. So And if your IBM can you let that run on its own? >> So, John, that is the question most of us have. So, you know, I've worked with Red Hat for coming up on twenty years now, you know, Remember when Lennox was just this mess of colonel dot organ. So much changes that red hat came and gave, you know, adult supervision to help move that forward on. The thing I I wrote about is what Red Hat is really, really good at. If you look at the core, there do is managing that chaos and change on the industry. If you look how many changes happen, toe Lennox, you know every you know, day, week, month and they package all that together and they test all that same thing in Kou Burnett is the same thing in so many different spaces where that open source world is just frenetic and changing. So they're really geared for today's industry. You talk what's the only constant in our industry? John is it is changed. IBM, on the other hand, is like, you know, over one hundred years old, and I tried and true, you know, Big Blue. You know, I ibm is this, you know, the big tanker, you know, it's not like they turn on a dime and you know, rapid pace of change. You think of IBM, you think of innovation. You think of, you know, trust. You think of all the innovations that have come out over the century. Plus do there and absolutely there is a little bit of impeded mismatch there and we'LL see So if ibm Khun truly let them do their own thing and not kind of merged suit groups and take over where the inertia of a larger group can slow things down I hope it will be successful But they're definitely our concerns And time will tell we'll see But you know analytics front You know, they just announced this morning Rehl eight Red hat enterprise linen, you know, just got announced and definitely something will be spent a lot of time So >> let's just jump in a relative Look again, We're gonna hear a little bit later on. We have several folks coming on board to talk aboutthe availability. Now what? What do you see from the outside? Looking at that. What is it going to allow you or us to do that? Seven Didn't know. Where did they improve? Is that on the automation side? Is it being maybe more attentive, Teo Hybrid environment or just What is it about? Really? That makes that special? >> Yes. So you know, first of all, you know these things take a while in the nice thing about being open sources. We've had transparency. If you wanted to know it was going to be in relate. You just look in the Colonel and and it's all out there. They've been working on this since twenty thirteen. Well, seven came out back in June of twenty fourteen. This has been a number of years in the mix. You know, security. The new, like crypto policy is a big piece that that's in their thie bullets that I got when I got the pre briefing on, It was, you know, faster and easier Deploy faster on boarding for non lennox users on, you know, seamless nondestructive migration from earlier versions of rail. So that's one of the things they really want to focus on is that it needs to be predictable, and I need to be able to move from one version the other. If you look at the cloud world, you know, when you don't go asking customers say, Hey, what version of Azure a ws are you running on your running on the latest and greatest? But if you look at traditional shrink wrap software, it was well, what virginity running? Well, I'm running in minus two and Why is that? Because I have to get it. I have to test it out. And then I, you know, find a time that I'm gonna roll that out, work it in my environment. So there is stability and understanding of the release cycle. My understanding is that they're going to do major releases every three years and minor releases every six months. So that cadence a little bit more like the cloud. And as I said, getting from one version a rail to the next should be easier and more non disruptive. Ah, a lot of people are going to want manage offerings where they don't really think about this. I have the latest version because that has not just the latest features but the latest security setting, which, of course, is a major piece of my infrastructure today to make sure that if there was some vulnerability released, I can't wait, You know, six or nine months for me to bake that in there. The limits community's always good have done a good job of getting fixes into it. But how fast can I roll that out into my environment is >> something I would assume that's that's a major factor in any consideration right now is is on the security front, because every day we hear about one more problem and these are just small little issues. These these air are could be multi billion dollar problems. But in terms of making products available today, how Muchmore important? How's that security shift? If you could put a percentage on it used to be, you know, axe and now it's X plus. I mean I mean, what kind of considerations are being given? >> You know what I'd say? Used to be that security got great lip service A. Said it was usually top of mind, but often towards bottom of budget. When you talk to administrators and you say, Oh, hey, where's your last security initiative? And that, like I've had that thing sitting on my desk for the last six months and I haven't had a chance to roll that out. I will get to it, but I want to again. If you go to that cloud operating model. If you talk about you know Dev, Ops movement is, I need to bake security into the process. If I'm doing C i D. It's not, I do something and then think about security afterwards. Security needs to be built in from the ground level. A CZ. You know, I I've heard people in the industry. Security is everyone's responsibility, and security must be baked in everywhere. So from the application all the way down to the chipset, we need to be thinking about security along the bar. Mind it is a board level discussion. Any user you talk too, you know, you don't say, Hey, where's the security sitting? Your priorities. You know, it's up there towards the top, if not vey top, because that's the thing that could put us out of business or, you know, definitely ruin careers. If if it doesn't go >> right, so there are there are probably a couple of platforms, every will or pillars. I think you like to call them that. You're looking forward to learning more about this week. I think in terms of red hats work one of those green hybrid cloud infrastructure, and we'LL get to the other to a little bit. But just your thoughts about how they're addressing that with the products that they offered the services they offer and where they're going in that >> Yeah, so look everything for red at start with rail. Everything is built on Lenox, and that's a good thing, because Lennox Endeavor is everywhere. If last year is that Microsoft ignite for the first time. And when you hear them talking a Microsoft talking about how Lennox is the majority of the environment, more than fifty percent of the environment are running linen goto a ws Same thing. All the cloud deployment Lennox is the preferred substrate underneath and Rehl doing very well to live in all those environment. So what we look at is, you know, some people say, is this olynyk show. It's like, well, at the core. Lin IX is the piece of it and relate the latest and greatest substantiation. But everywhere you go, there's going to be Lennox there from doing container ization. If a building on top of it with the the new cloud native models, it's there. And if you talk about how I get from my data center to a multi cloud environment, it's building things like Cooper Netease, which read that of course, uses open shift and you know those ties to eight of us and azure and you know, Google they're all there. So we mention Santina della's on stage tonight at Microsoft build. Yesterday there was announcement of this thing called Kita ke e d A, which has, like as your functions and ties in with open shift and spend a little time squinting it, trying to tease it apart. We've got some guests this week that'LL hopefully give some clarity, but it is. The answer is people today have multiple clouds and they have a lot of different ways they want. They want to do things, and Red has going to make sure that they help bridge the gap and simplify those environments across the board. Two years ago, when we were at the show big announcement about how open shift integrates with a W s so that if I'm using a ws But I want to have things in my environment still leverage some of those services. That was something that that Red had announced. I was, you know, quite impressed a time it was, you know, just last week being at the Del Show, it's V m. Where is the del strategy for how they get you know, A W, S, G, C, P and Azure and, you know, Red Hat does that themselves. Their software company. They live in all these cloud worlds, and therefore, open shift will help you extend from your data center through all of those public cloud environments on DH, you know? Yeah. So it's fascinating >> you've talked about Lennox to we're going to hear a little bit later on to about a fascinating the global economic study, that Red Hat Commission with the I. D. C. Of that talks about this ten trillion dollar impact of Lennox around the globe like to dive into that a little bit later on. >> Yeah, well, it's interesting, you know, it's the line I used is you say, and you say, Oh, well, how much impact is Lennox had? You know? You know, Red hats now, a three billion dollar company. That's good. But I was like, Okay, let's just take Google. You know, no slots of a company. Google underneath. It's not Red Hat Lennox, but Lennox is the foundation. I don't really think that Google could become the global search and advertising powerhouse they were. If it wasn't for Lennox to be able to help them get environment, there's a CZ we always talk with these technologies. You talk about Lennox, you talk about How do you talk about, you know, Cooper Netease? There are companies that will monetize it, but the real value is what business models and creation by. You know, all the enterprise is the service riders in the hyper scales that those technologies help enable. And that's where open source really shines is, you know, the order of magnitude network effect, that open source solutions have that its you say okay, three billion dollars? And is that what ten trillion dollars? It doesn't faze me, doesn't surprise me at all, but because my attention it look it. I'm not trying to trivialize. There's no But, you know, I've been watching clinics for twenty years, and I've seen the ripples of that effect. And if you dig down underneath your often finding it inside, >> I mentioned pillars that you were talking about cloud native development being another. But automation, let's just hit on that real quick before we head off on DH just again, with how that is being, I guess, highlighted. Or that's a central focus at and relate and and what automation? How that's playing in there I guess the new efficiencies they're trying to squeeze out. >> Yes. So? So what we always looked for it shows you're probably the last year is you know, you. How are they getting beyond the buzzwords? Aye, aye. When you talk about automation on area that that we've really enjoyed digging into is like robotic process automation. How do I take something that was manual? And maybe it was a fish injure? Not great. How can I make it perfectly efficient and use software robots to do that? So where are the places where I know that the amount of change and the scale and the growth that we have that I couldn't just put somebody to keyboard, you know, and have them typing or even a dashboard to be able to monitor and keep up with things? If I don't have the automation and intelligence in the system to manage things, I can't reach the scale and the growth that I need to. So where are you know, real solutions that are helping customers, you know, get over a little bit of the fear of Oh, my gosh, I'm losing a job. Or will this work or will this keep my business running and oh, my gosh, this will actually enabled me to be able to grow work on that security issue if I need to, rather than some of the other pieces and help really allow it agility to meet the requirements of what the business requires to help me move forward. So those are some of the things we kind of look across the shows. So, you know? Yeah. How much do we get? You know, buzzword, Bingo at the show. Where How much do we hear? You know, real customers with real solutions digging in and having, you know, new technologies that a couple of years ago would have had a saying, Wow, that's magic. >> But you say, Oh, my gosh. Yeah, and I don't want gosh right back with more. You're watching to serve the cube with the red had summit. We're in Boston, Massachusetts, that we'll be back with more coverage right after this

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