(loud upbeat music) >> Narrator: Live from Boston, Massachusetts. It's the Cube. Covering Red Hat Summit 2019. Brought to you by Red Hat >> Well good morning and welcome to day two of Red Hat Summit 2019. We're in Boston. Beautiful Boston, Mass. again. Second day of just gorgeous sunshine as I'm looking outside but we're inside the Boston Convention and Exposition Center BCEC. Stu Miniman John Walls here on the Cube. Stu good morning to ya. >> Good good morning John. Yeah lovely spring day here in Boston. >> John: Yeah >> Crowd's all excited. >> John: Yes >> Lots of things to geek out on. >> John: Let's go back uh lets go back to last night for the sake of it if you don't mind. We just got done with keynotes this morning We'll touch on that in a second. Last night though, what an array of of CEO keynote you might as well call it. We have IBM. we have Microsoft. We have Red Hat. We have you know the boss of each. And first lets lets just jump in first with IBM Ginni Rometty on the stage last night. And settling maybe a few concerns with some of her comments. I don't have a death wish. Independent. All that. So that your she said all of the good things >> Look first of all, love the tone. It's we hear what your saying and we're kind of laughing with you. You know when they joked and said You know IBM's been working for a long time on Linux. You know we spent a billion dollars that was you know big dollar uh dollar Jim Whitter was like 34 billion dollars is a really big number too. Everybody laughed >> Right >> You know the the commentary notes and joking is look we want this to succeed. We're spending 34 billion dollars on Red Hat. We don't have a death with for it you know. We're not trying to kill it. And what she said specifically and they've said it before but it bears repeating you know more often is Red Hat will stay separate. They're not going to "blue wash" the company which is the term for when they normally integrate and take over. They're going to stay separate. The brand is going to stay separate. That's why they didn't stop something like the new rebranding you know uh you know new new >> Logo >> Hat same soul >> Right right >> You know same hat but new logo same soul All of those things are in place you know and when I talk to lots of people in Red Hat they expect that you know day after this closes they'll be doing the same job. They understand that you know things like IBM's scale should be able to enable them and there will be more collaberation there but you know they're under the umbrella but you know are managed separately. Uh and that's something what the other thing Ginni pointed out which I thought was important that she say it and that is something we're all be watching is the culture that they have built is super super important. She said Red Hat's built a wonderful company and maybe more importantly culture and Jim goes Oh and our eco system you know don't forget our eco system She's like of course but that culture should actually slowly infuse into IBM not the reverse. We don't want you know IBM look great culture, great innovations, strong history but IBM is not looking to take IBM's culture and put it on Red Hat. They want to learn from you know the younger you know you know company and you know moving and growing fast So help accelerate. Work together and you know absolutely important and as Jim said on stage you know pretty impressive here at the Red Hat show you start out with the CEO of IBM you end with the CEO of microsoft. Those are two pretty impressive tech companies >> John: Sure >> With your CEOs coming to talk to this community. >> Yeah tell me about on the culture standpoint though you you do have some very definite differences right just in terms of history you know IBM been around forever Red Hat new kid on the block relatively speaking. How hard do you think it really will be? I mean you've been around this space for a long time that's there just that I think an institutional resistance that is is almost inevitable >> Stu: Yeah >> You have (groan) it's gonna take a lot of open mindedness and bending on the IBM side. >> Look yes and no because look Red Hat has facilities. If they're not living in the same place as if they're you know the the tower down Raleigh where Red Hat is if that stays Red Hat people and they stay separate sure they might have some calls where they collaberate but its a you know Conway's law I like to go to is the way software is designed matches the organizational structure. If the organizational structure gets mixed between them, >> Mmhmm >> Expect that IBM culture just 'cause the size of it you know will likely overpower and it's really easy for it to leak that way. Going the other way you know Red Hat's got you know about twelve thirteen thousand employees you know IBM's got well over a hundred thousand employees. So can Red Hat inflitrate it? In pieces and places and start doing it, sure. But it would be very easy for IBM just to total have a blue wave wash over and make Red Hat lose you know what makes them so special and they are special in this industry. But one of the things that I actually really loved in the keynote we'll talk to is some of that what they called their innovation labs what they helped teach some of that culture to some pretty impressive companies and help them along that technical journey to you know not just do the technology but the cultural changes so that you know they can live in that multi cloud world. They can live you know work with the open source even more. >> I think we got the impression or at least I did you know listening to Ginni too there's a recognition there that we being IBM you know we need them. We need you know we we have we're at a somewhat of a competitive disadvantage right now. This gets us in the game on a whole new level. So I'm I'm would imagine that message is being communicated throughout the ranks at IBM. You know there's a reason why we're spending this kind of money and making this kind of a commitment because their ways worked. And it's in a space that we have to be more present >> Hey look I'm excited. Our first two guests of the day we've got Jim Whitehearst the CEO of Red Hat and then we've got Arvind Krishna who is you know the SVP of cloud and heavily involved in that decision to move IBM to do the acquisition and talking about that hybrid multi cloud world. We will dig in there because that you know is the product space it's the area where Red Hat and IBM intersect the most. Because you know I don't expect that IBM is going to mess up you know rhel >> John: right >> you know from a core linux standpoint they've been partnered for a decade on this. It's not competitive with what IBM does. They we you know IBM does not have a huge team doing it but some of the other spaces some of the tooling some of the you know orchestration and that multi cloud world is an area that IBM has a lot of bodies and a lot of resources and we'll see. But you know an area they want to have help is you know IBM absolutely needs to partner in the multi cloud world with more of the cloud environments so maybe we can talk a little bit about Microsoft. >> Yeah lets go Microsoft here um you know again um kind of a nice kumbaya moment last night where there's a handshaking backslapping five years ago they they both readily admitted it. We're talking about you know Satya Nadella and uh Jim Whitehearst last night wouldn've been like that! We weren't on the best of terms not too long ago and to think that we'd be sharing a stage and not only talking about working together but being partners and truly partners um many people would have imagined that to be just totally unfathomable but it happened. We saw it last night! >> Yeah so um and there's a lot more not just to Sataya being here but the relationship uh that I've been learning more about-walking the show floor, talking to some of the people, uh reading some of the articles online there so you know you know big announcement they talked about is open shift on Azure and that you know fully managed you know common operating platform, across the clouds, manage it yourself, consume it as a service, um you know deep integration there uh between Azure and Open Shift. So uh as I mentioned yesterday in our open Red Hat's working with all the clouds you know talk to them at Google at this show two years ago they announced the AWS piece uh but more than that even is you know some of the applications you know where is microsoft doing great? They have business productivity applications so sequel on rhel is something that you know fully supported and is something that you know Red Hat's been seeing a lot of growth there. And it's something that you know you think Microsoft usually you think Windows and today in the technology world you know Satya's goal is when you think Microsoft he wants you thinking you know Azure and AI and not that they don't have a strong Windows business or that it's not going uh you know not going away. See things like in the demo this morning their like oh hey you want to you know manage your all your linux environments and logins? Oh they pulled up a windows desktop. I mean you know it's it's I think it's it's interesting to see that Linux. It's like oh my gosh that's blasphemy. How dare you you know pull up you know a windows gooey and you see like minecraft and all these other stuff there. It's like that's that's not what a linux used to using. >> John: Right right >> But I can go to those environments so that blending of worlds uh is is what we see and uh yeah you know Microsoft and Red Hat uh living together uh you know in a lot of these customer environments is uh impressive. And I heard Satya spending a bunch of time with customers here. He didn't just fly in and do the keynote and then you know out on the jet off to his next environment You know working with the customers. Strong commitment uh to the partnership and as Satya said inter operate and commit to open source which if you haven't been watching the last five years has been a big push of Microsoft uh and uh is not the Microsoft that we grew up off of you know in the '90s and like um with proprietary software, proprietary operating systems, um committing to all of these environments. >> Yeah I mean so lets follow up a little bit on on the commitment angle or you know that discussion because I think you raised an interesting point that this was just not a fly by. It wasn't just a dropping kind of thing. This was a apparently from what you're uh sources have been telling you a very much more committed uh direction for the company for Microsoft we're talking about here. That's a strong statement. That this is not just for show. That our commitment is going to be the long term success. >> Yeah Yeah um you know we go to a lot of shows and when I've been at a lot of the open source shows especially uh really in the container and Kuraneti's space so we've got the Cube two weeks from now in uh Barcelona for the Cube con and Cloud native Con. Uh.. Microsoft and Red Hat are both really big players in that environment and it's not you know shooting arrows and throwing stones. It's everybody's committing to the growth of these environments and the reality for customers is going to be multi cloud. Uh you know Paul Cormier this morning said you know hybrid is the direction. I'm like well no no, it is where they are today. I think what he means to say is if you look in the future, it's not going away. It's not what a few years ago it was the public cloud was the enemy to some and it's taking over and beware. It's well no the reality is is customer's using a ton of SAS. Microsoft to their credit pushed a ton of customers into that environment. They moved Office 365. Wasn't a oh hey it'd be nice if you do it, it's like you were being pushed by you know into this environment and if Micrsoft is pushing you that way and you know I was used to you know getting my discs and downloading things and doing that. Well this is the new world. It's you know SAS first, public cloud, absolutely an environment. We have Azure you know strong growth you know really strong growth. Uh you know for for many years. Um and the data centers, so you're going to have all of these environments and to manage them and make multi cloud better than its parts? Uh... The partnerships need to be deeper than they were in the past. We can't have the old world of saying oh yeah we've signed some cooperative support agreement but if something goes wrong, we're all going to be pointing fingers as to who's fault it is. The customer doesn't care. They need to run their business. >> John: Right >> Uh you know it needs to be able to go. My data and my applications are the lifeblood of my business so partnerships like Microsoft and Red Hat just make all the sense in the world today. >> Yeah we saw some uh some demos today of uh well I saw Open Shift 4 on the stage. Uh you talked about what uh Microsoft and opening up in Windows and all. Um but pretty impressive in terms of upgrading capabilities and automation capabilities just in general that's kinda what the the impression that I left with was. It's pretty cool. This is pretty good. You're allowing a lot of jobs to be done simultaneously without interference without concerns where as you know a year or two back you couldn't have these dual operations going on because you're too worried about interfering or disrupting instead. You're giving great confidence to the application side and to the dev side. So like Dev Ops is you know you're uh taking a lot of the worry out of the equation. >> Yeah it's really interesting time 'cause I you know there are many of the solutions that will just really abstract away or manage away anything that I need to worry about. I just wanna consume it as a service. It's really simple um. I might just have something that I'll you know automatically does most of the stuff for me and I don't need get underneath but still a lot of these demos its okay here's my terminal and you know let me run through these environments uh and I want to have visibility. So um we're in a little bit of a transition period here as the you know where we are. You know what my teams, what the skill set they need to have, how much depth they need to be able to do um because you know these sins of IT in the past was you know how much am I reinventing the wheel or doing undifferentiated heavy lifting where the vendors of the platforms could really make this easier so that what I need to do as the IT is respond to the needs of the business. I need to be agile. I need to be flexible and if I need to you know build this you know build the temple every time they need something uh I'm not going to be able to be fast enough >> John: Right >> And so I need to be at cloud speed. Uh I need to you know be able to you know respond when uh the business says I need something or I need to make a change. It is uh no longer acceptable to say months or years. It's it's now usually measured you know days or weeks if not in certain things are like no no instantly >> Like now. >> You need to now (john laughs) >> Exactly. >> Ready for a big day? >> Stu: Yeah absolutely. >> All right Jim Whitehearst coming up in just a little bit, a moment or two, but we'll continue our coverage here live from Boston. We're at Red Hat Summit 2019 and you are watching the Cube (loud upbeat music) (music fades away)