>>Hello, brilliant humans and welcome back to Las Vegas, Nevada, where we are live from the AWS Reinvent Show floor here with the cube. My name is Savannah Peterson, joined with Dave Valante, and we have a very exciting conversation with you. Two, two companies you may have heard of. We've got AWS and Red Hat in the house. Manu and Joel, thank you so much for being here. Love this little fist bump. Started off, that's right. Before we even got rolling, Manu, you said that you wanted this to be the best segment of, of the cubes airing. We we're doing over a hundred segments, so you're gonna have to bring the heat. >>We're ready. We're did go. Are we ready? Yeah, go. We're ready. Let's bring it on. >>We're ready. All right. I'm, I'm ready. Dave's ready. Let's do it. How's the show going for you guys real quick before we dig in? >>Yeah, I think after Covid, it's really nice to see that we're back into the 2019 level and, you know, people just want to get out, meet people, have that human touch with each other, and I think a lot of trust gets built as a functional that, so it's super amazing to see our partners and customers here at Reedman. Yeah, >>And you've got a few in the house. That's true. Just a few maybe, maybe a couple >>Very few shows can say that, by the way. Yeah, it's maybe a handful. >>I think one of the things we were saying, it's almost like the entire Silicon Valley descended in the expo hall area, so >>Yeah, it's >>For a few different reasons. There's a few different silicon defined. Yeah, yeah, yeah. Don't have strong on for you. So far >>It's, it's, it is amazing. It's the 10th year, right? It's decade, I think I've been to five and it's, it grows every single year. It's the, you have to be here. It's as simple as that. And customers from every single industry are here too. You don't get, a lot of shows have every single industry and almost every single location around the globe. So it's, it's a must, must be >>Here. Well, and the personas evolved, right? I was at reinvent number two. That was my first, and it was all developers, not all, but a lot of developers. And today it's a business mix, really is >>Totally, is a business mix. And I just, I've talked about it a little bit down the show, but the diversity on the show floor, it's the first time I've had to wait in line for the ladies' room at a tech conference. Almost a two decade career. It is, yeah. And it was really refreshing. I'm so impressed. So clearly there's a commitment to community, but also a commitment to diversity. Yeah. And, and it's brilliant to see on the show floor. This is a partnership that is robust and has been around for a little while. Money. Why don't you tell us a little bit about the partnership here? >>Yes. So Red Hand and AWS are best friends, you know, forever together. >>Aw, no wonder we got the fist bumps and all the good vibes coming out. I know, it's great. I love that >>We have a decade of working together. I think the relationship in the first phase was around running rail bundled with E two. Sure. We have about 70,000 customers that are running rail, which are running mission critical workloads such as sap, Oracle databases, bespoke applications across the state of verticals. Now, as more and more enterprise customers are finally, you know, endorsing and adopting public cloud, I think that business is just gonna continue to grow. So a, a lot of progress there. The second titration has been around, you know, developers tearing Red Hat and aws, Hey, listen, we wanna, it's getting competitive. We wanna deliver new features faster, quicker, we want scale and we want resilience. So just entire push towards devs containers. So that's the second chapter with, you know, red Hat OpenShift on aws, which launched as a, a joint manage service in 2021 last year. And I think the third phase, which you're super excited about, is just bringing the ease of consumption, one click deployment, and then having our customers, you know, benefit from the joint committed spend programs together. So, you know, making sure that re and Ansible and JBoss, the entire portfolio of Red Hat products are available on AWS marketplace. So that's the 1, 2, 3, it of our relationship. It's a decade of working together and, you know, best friends are super committed to making sure our customers and partners continue successful. >>Yeah, that he said it, he said it perfectly. 2008, I know you don't like that, but we started with Rel on demand just in 2008 before E two even had a console. So the partnership has been there, like Manu says, for a long time, we got the partnership, we got the products up there now, and we just gotta finalize that, go to market and get that gas on the fire. >>Yeah. So Graviton Outpost, local zones, you lead it into all the new stuff. So that portends, I mean, 2008, we're talking two years after the launch of s3. >>That's right. >>Right. So, and now look, so is this a harbinger of things to come with these new innovations? >>Yeah, I, I would say, you know, the innovation is a key tenant of our partnership, our relationship. So if you look at from a product standpoint, red Hat or Rel was one of the first platforms that made a support for graviton, which is basically 40% better price performance than any other distribution. Then that translated into making sure that Rel is available on all of our regions globally. So this year we launched Switzerland, Spain, India, and Red Hat was available on launch there, support for Nitro support for Outpost Rosa support on Outpost as well. So I think that relationship, that innovation on the product side, that's pretty visible. I think that innovation again then translates into what we are doing on marketplace with one click deployments we spoke about. I think the third aspect of the know innovation is around making sure that we are making our partners and our customers successful. So one of the things that we've done so far is Joe leads a, you know, a black belt team that really goes into each customer opportunity, making sure how can we help you be successful. We launched and you know, we should be able to share that on a link. After this, we launched like a big playlist, which talks about every single use case on how do you get successful and running OpenShift on aws. So that innovation on behalf of our customers partners to make them successful, that's been a key tenant for us together as >>Well. That's right. And that team that Manu is talking about, we're gonna, gonna 10 x that team this year going into January. Our fiscal yield starts in January. Love that. So yeah, we're gonna have a lot of no hiring freeze over here. Nope. No ma'am. No. Yeah, that's right. Yeah. And you know what I love about working with aws and, and, and Manu just said it very, all of that's customer driven. Every single event that we, that he just talked about in that timeline, it's customer driven, right? Customers wanted rail on demand, customers want JBoss up in the cloud, Ansible this week, you know, everything's up there now. So it's just getting that go to market tight and we're gonna, we're gonna get that done. >>So what's the algorithm for customer driven in terms of taking the input? Because if every customers saying, Hey, I this a >>Really similar >>Question right up, right? I, that's what I want. And if you know, 95% of the customers say it, Jay, maybe that's a good idea. >>Yeah, that's right. Trends. But >>Yeah. You know, 30% you might be like, mm, you know, 20%, you know, how do you guys decide when to put gas on the fire? >>No, that, I think, as I mentioned, there are about 70,000 large customers that are running rail on Easy Two, many of these customers are informing our product strategy. So we have, you know, close to about couple of thousand power users. We have customer advisory booths, and these are the, you know, customers are informing us, Hey, let's get all of the Red Hat portfolio and marketplace support for graviton, support for Outpost. Why don't we, why are we not able to dip into the consumption committed spend programs for both Red Hat and aws? That's right. So it's these power users both at the developer level as well as the guys who are actually doing large commercial consumption. They are the ones who are informing the roadmap for both Red Hat and aws. >>But do, do you codify the the feedback? >>Yeah, I'm like, I wanna see the database, >>The, I think it was, I don't know, it was maybe Chasy, maybe it was Besos, that that data beats intuition. So do you take that information and somehow, I mean, it's global, 70,000 customers, right? And they have different weights, different spending patterns, different levels of maturity. Yeah. Do you, how do you codify that and then ultimately make the decision? Yeah, I >>If, I mean, well you, you've got the strategic advisory boards, which are made up of customers and partners and you know, you get, you get a good, you gotta get a good slice of your customer base to get, and you gotta take their feedback and you gotta do something with it, right? That's the, that's the way we do it and codify it at the product level, I'm sure open source. That's, that's basically how we work at the product level, right? The most elegant solution in open source wins. And that's, that's pretty much how we do that at the, >>I would just add, I think it's also just the implicit trust that the two companies had built with each other, working in the trenches, making our customers and partners successful over the last decade. And Alex, give an example. So that manifests itself in context of like, you know, Amazon and Red Hat just published the entire roadmap for OpenShift. What are the new features that are becoming over the next six to nine to 12 months? It's open source available on GitHub. Customers can see, and then they can basically come back and give feedback like, Hey, you know, we want hip compliance. We just launched. That was a big request that was coming from our >>Customers. That is not any process >>Also for Graviton or Nvidia instances. So I I I think it's a, >>Here's the thing, the reason I'm pounding on this is because you guys have a pretty high hit rate, and I think as a >>Customer, mildly successful company >>As, as a customer advocate, the better, you know, if, if you guys make bets that pay off, it's gonna pay off for customers. Right. And because there's a lot of failures in it. Yeah. I mean, let's face it. That's >>Right. And I think, I think you said the key word bets. You place a lot of small bets. Do you have the, the innovation engine to do that? AWS is the perfect place to place those small bets. And then you, you know, pour gas on the fire when, when they take off. >>Yeah, it's a good point. I mean, it's not expensive to experiment. Yeah. >>Especially in the managed service world. Right? >>And I know you love taking things to market and you're a go to market guy. Let's talk gtm, what's got your snow pumped about GTM for 2023? >>We, we are gonna, you know, 10 x the teams that's gonna be focused on these products, right? So we're gonna also come out with a hybrid committed spend program for our customers that meet them where they want to go. So they're coming outta the data center going into a cloud. We're gonna have a nice financial model for them to do that. And that's gonna take a lot of the friction out. >>Yeah. I mean, you've nailed it. I, I think the, the fact that now entire Red Hat portfolio is available on marketplace, you can do it on one click deployment. It's deeply integrated with Amazon services and the most important part that Joel was making now customers can double dip. They can drive benefit from the consumption committed spend programs, both from Red Hat and from aws, which is amazing. Which is a game changer That's right. For many of our large >>Customers. That's right. And that, so we're gonna, we're gonna really go to town on that next year. That's, and all the, all the resources that I have, which are the technology sellers and the sas, you know, the engineers we're growing this team the most out that team. So it's, >>When you say 10 x, how many are you at now? I'm >>Curious to see where you're headed. Tell you, okay. There's not right? Oh no, there's not one. It's triple digit. Yeah, yeah. >>Today. Oh, sweet. Awesome. >>So, and it's a very sizable team. They're actually making sure that each of our customers are successful and then really making sure that, you know, no customer left behind policy. >>And it's a great point that customers love when Amazonians and Red Hats show up, they love it and it's, they want to get more of it, and we're gonna, we're gonna give it to 'em. >>Must feel great to be loved like that. >>Yeah, that's right. Yeah. Yeah. I would say yes. >>Seems like it's safe to say that there's another decade of partnership between your two companies. >>Hope so. That's right. That's the plan. >>Yeah. And I would say also, you know, just the IBM coming into the mix here. Yeah. I, you know, red Hat has informed the way we have turned around our partnership with ibm, essentially we, we signed the strategic collaboration agreement with the company. All of IBM software now runs on Rosa. So that is now also providing a lot of tailwinds both to our rail customers and as well as Rosa customers. And I think it's a very net creative, very positive for our partnership. >>That's right. It's been very positive. Yep. Yeah. >>You see the >>Billboards positive. Yeah, right. Also that, that's great. Great point, Dave. Yep. We have a, we have a new challenge, a new tradition on the cube here at Reinvent where we're, well, it's actually kind of a glamor moment for you, depending on how you leverage it. We're looking for your 32nd hot take your Instagram reel, your sizzle thought leadership, biggest takeaway, most important theme from this year's show. I know you want, right, Joel? I mean, you TM boy, I feel like you can spit the time. >>Yeah. It is all about Rosa for us. It is all in on that, that's the native OpenShift offering on aws and that's, that's the soundbite we're going go to town with. Now, I don't wanna forget all the other products that are in there, but Rosa is a, is a very key push for us this year. >>Fantastic. All right. Manu. >>I think our customers, it's getting super competitive. Our customers want to innovate just a >>Little bit. >>The enterprise customers see the cloud native companies. I wanna do what these guys are doing. I wanna develop features at a fast clip. I wanna scale, I wanna be resilient. And I think that's really the spirit that's coming out. So to Joel's point, you know, move to worlds containers, serverless, DevOps, which was like, you know, aha, something that's happening on the side of an enterprise is not becoming mainstream. The business is demanding it. The, it is becoming the centerpiece in the business strategy. So that's been really like the aha. Big thing that's happening here. >>Yeah. And those architectures are coming together, aren't they? That's correct. Right. You know, VMs and containers, it used to be one architecture and then at the other end of the spectrum is serverless. People thought of those as different things and now it's a single architecture and, and it's kind of right approach for the right job. >>And, and a compliments say to Red Hat, they do an incredible job of hiding that complexity. Yeah. Yes. And making sure that, you know, for example, just like, make it easier for the developers to create value and then, and you know, >>Yeah, that's right. Those, they were previously siloed architectures and >>That's right. OpenShift wanna be place where you wanna run containers or virtual machines. We want that to be this Yeah. Single place. Not, not go bolt on another piece of architecture to just do one or the other. Yeah. >>And hey, the hybrid cloud vision is working for ibm. No question. You know, and it's achievable. Yeah. I mean, I just, I've said unlike, you know, some of the previous, you know, visions on fixing the world with ai, hybrid cloud is actually a real problem that you're attacking and it's showing the results. Agreed. Oh yeah. >>Great. Alright. Last question for you guys. Cause it might be kind of fun, 10 years from now, oh, we're at another, we're sitting here, we all look the same. Time has passed, but we are not aging, which is a part of the new technology that's come out in skincare. That's my, I'm just throwing that out there. Why not? What do you guys hope that you can say about the partnership and, and your continued commitment to community? >>Oh, that's a good question. You go first this time. Yeah. >>I think, you know, the, you know, for looking into the future, you need to look into the past. And Amazon has always been driven by working back from our customers. That's like our key tenant, principle number 1 0 1. >>Couple people have said that on this stage this week. Yeah. >>Yeah. And I think our partnership, I hope over the next decade continues to keep that tenant as a centerpiece. And then whatever comes out of that, I think we, we are gonna be, you know, working through that. >>Yeah. I, I would say this, I think you said that, well, the customer innovation is gonna lead us to wherever that is. And it's, it's, it's gonna be in the cloud for sure. I think we can say that in 10 years. But yeah, anything from, from AI to the quant quantum computing that IBM's really pushing behind that, you know, those are, those are gonna be things that hopefully we show up on a, on a partnership with Manu in 10 years, maybe sooner. >>Well, whatever happens next, we'll certainly be covering it here on the cube. That's right. Thank you both for being here. Joel Manu, fantastic interview. Thanks to see you guys. Yeah, good to see you brought the energy. I think you're definitely ranking high on the top interviews. We >>Love that for >>The day. >>Thank >>My pleasure >>Job, guys. Now that you're competitive at all, and thank you all for tuning in to our live coverage here from AWS Reinvent in Las Vegas, Nevada, with Dave Valante. I'm Savannah Peterson. You're watching The Cube, the leading source for high tech coverage.

>>Welcome back. You're watching the cubes coverage of AWS 2021. We're here in the Venetian, formerly the sands convention center in Las Vegas. My name is Dave Volante. Really excited to have Bob bright tell here. He's the director of SAP global alliances at IBM and Manu.. I'm going to try that again. Pro boxcar, is that correct? Rebecca Head of Linux and IBM alliances at AWS Manu. I'm sorry for bashing your name, but at least I got it right, guys. Great to see you. Thanks for coming on. >>And I'm actually now AWS partnership. I had SAP before, so it's great. I first, my first reinvest, >>I have a old DNA title. That's great. That's why I was asking you about Philly before you don't have the accent though. Bob, >>I'm not a Philly native, so cowboy >>Because you have the SAP connection there. IBM, AWS. It's like, whoa, what's going on here? >>Well, maybe I'll start and then have my new, my new, make some comments. And I'll just start by just, uh, we're real excited to be here. IBM's a diamond sponsor at, at re-invent and it's great to be in person and really appreciate AWS being able to put this event on this week and get us back in person. It really makes a difference. And I know there's a lot of people virtually as well, but, um, IBM and AWS have worked together for a number of years. Uh, maybe we could characterize it more opportunistically, um, prior, but in the last 12, 18 months, I think there's been a lot of developments that have really made us come together strategically as partners. I know we'll talk a little bit about red hat during the course of the conversation, but with IBM's >>You say opportunities like you mean in the field and the more strategic >>Relationship or strategic and with IBM's open hybrid cloud strategy. And, uh, with so many of our clients preferring AWS is their cloud. Um, we are working together now to meet clients where they're at to help them get the value of the cloud. And we're talking a little bit about coming out of the pandemic before this. Um, and one of the things that we're seeing with our clients that IBM is a lot of that low hanging fruit. The cloud was achieved, maybe the lift and shift or doing some SAS based applications, but now it's even more important to rapidly adopt hybrid cloud and cloud technologies to provide your business with flexible innovation transformation, all of those things. So that's why it has been important for us to, to partner with AWS strategically. Um, our clients are telling us that when they do move those heavier workloads to the cloud and do it in a hybrid model, they see about two and a half times the value. >>So with that, our partnership is multi-dimensional, we're doing a lot with IBM consulting. My new we'll talk a little bit about IBM software and red hat. Just one example, Dave, with IBM consulting, we now are up to almost 10,000 certifications and 10 plus AWS competencies. So that competency chart that shows we're knocking them all out on the, on the checkerboard there to get them to IBM consulting competencies. And we just had the energy one announced this week. So IBM consulting is in area software's big too. In my news, been helping us with that part of the partner. >>Well, it's, you know, to your point, you can't pick whatever cliche you want. You can't fight fashion. The trend is your friend. You have a lot of, a lot of people want to be on AWS. So rather than fighting, oh, we have our own cloud. No, you've got to meet customers where they are, right >>David, this is where this takes us. You know, the analogy we use between Bob and I, IBM boss spoke about IBM consulting, which we know has been a strategic partnership for the last two, two and a half years. I think I'm going to share the best kept secret in the cloud phase right now. IBM software and AWS now are working together. The analogy we use is IBM software and AWS. I like peanut butter and jelly better together. And over the last 12 months, the two companies have accelerated working together around three key dimensions. Number one, around product, number two around making sure our customers, joint customers successful. And number three, around building a robust ecosystem of partners. One thing that we have realized is just helping customers modernize. Migrate is challenging. And on the product side, now we have about 15 products on AWS marketplace. >>I think about trusty or verify insecurity, cloud Pak for data, uh, uh, Cognos data DataStage over the next 12 months, we plan to land all of the cloud packs. These are containerized version of IBM software on AWS and the marketplace. In addition, many of our customers are now using the managed red hat, OpenShift servers. We launched it earlier in April. This year, we are seeing tremendous customer feedback, tremendous, uh, growth there that is also informing that customers really like the open shirt model managed services one-click deployment. And so our goal is over the next 12 months, launched many more IBM software as a managed service offering. So that's kind of like what we're doing on the product side, on the customer success. A great example is somebody is helping a big oil and gas customers managed with this energy transition that we're working through. Um, Schlumberger software around simulation runs on OpenShift on Amazon in a hybrid environment, especially critical as we have a lot of oil and gas data that needs to have maybe sit on premises, uh, because of data residency requirements. >>I think the third piece is around building an ecosystem of partners for our red hat OpenShift services, which we launched April. We already have 30 partners that are helping customers not only to modernize, but to migrate on AWS. We know modernization is challenging, moving to containers is difficult. So we need this robust ecosystem of partners and Bob and I, and you know, the IBM and AWS team are investing heavily. We have cash credit to do financial incentives plus also technical content so that our customers so that our partners can help customers to be successful. Yeah, >>So the cloud packs are cool. That makes a lot of sense. And now the acquisition of red hat makes it easier. It's a catalyst gets IBM, much more closely aligned to developers and it makes it easier for things like cloud packs to be migrated to the cloud and being running cloud native. How did that acquisition affect from your standpoint menu and Bob I'd love your thoughts and your relationship. >>The red hat acquisition by IBM is a net positive red hat. And AWS have been working together for 14 years now. And we have tens of thousands of customers that are running mission critical workloads, such as SAP, Oracle databases. And there's a lot of trust that is engendered by working in the field for 14 years, uh, supporting mission critical customers, mission critical workloads. And so that relationship has provided a lot of tailwinds to our partnership with IBM software. I think a lot of the stuff we spoke about a lot of the progress you've made in the last six to eight to 12 months, a big function is that the trust that we have engendered working together with red hat. >>Yeah. I'll add Dave that, um, I, I agree with my new comments on the red hat. Red hat really is the epitome of openness right. Of open source software and the history that Manu described with AWS, there has been excellent adoption of red hat on AWS, red hat, enterprise Linux, and then most recently, um, red hat OpenShift on AWS. And just to give another example to the ecosystem point, just this morning, red hat with IBM, with a major ISV named Solonus announced that Solonus will be running one of their key, uh, applications and releasing it on Rossa on AWS. And all this means for our clients is faster adoption and acceleration and being able to innovate, um, in a hybrid way. So that's really the value that red hat is helping, um, to bring to the table in our cloud packs are available on open shift and rose as an option as well. So we're excited about the red hat partnership. It's really essential to our partnership into our, our hybrid cloud strategy. >>You mentioned up front, you know, happy that AWS decided to have this show. Of course, a lot of people watching online and you can get massive scale online, but there's nothing like the live event, you know, and when you make announcements at a live event, there's a little buzz going on and you get feedback. So are you making any hard news here? What, what announcements can you >>Share? Yeah, well, the one we had, um, on, um, uh, Solonus earlier with red hat and to do roasts on top of red hat was one and there's just an advance of, um, of re-invent. Um, we announced something in the data and AI space. So that's another big area of our partnership is data and AI. So we're in, we announced that in the oil industry and in the, um, uh, in that area that we are partnering together with AWS to be able to get insights on data so that we could get clean and reusable energy solutions out there. And there's so much untapped data. We know data is such an important resource, that that's an area that we're going to partner on with our cloud Pak for data on AWS. And of course underlying everything is open shifts. So that's one big announcement. We're also doing a lot in security for IBM and my news has been working closely with this. So my new, I, I know you're close to the integrations we're doing with AWS. So I'll let you comment maybe on some of the things in security. >>I mean, everybody's a security company these days, right? I mean, >>And then we continue to work and making sure that a lot of the IBM security products are integrating with our native services. So the customers have a seamless experience. And as he you'll see a lot of the same investments happening over 2022 as we grow the >>Partnership. So what like a QRadar or something like that >>Are, for example, integrating with security hub. That would be great example. >>I mean, it's the, it's the number one topic for CEO's that has been for a while and still will be okay. So give us a little roadmap, you know, maybe Bob, you could start, where do you want to see this relationship go? Um, what can we expect in the, in the coming 12 months? Yeah, well, >>Again, we're super excited about our partnership with AWS. I think we're just scratching the surface of how we're going to add value to our clients on this, on this hybrid cloud journey that they're all going through. And IBM, and this has been in our financial reports and in our earnings and everything, we're investing over a billion dollars in the ecosystem. And so partners like AWS are critical to provide that platform of growth for our clients and innovation for our clients. So all of the things that I talked about in money talked about today, whether it be our IBM consulting capabilities or our IBM software, our red hat, we're going to continue to invest. We talked about the red hat acquisition. IBM has made a few other acquisitions that help drive this partnership and drive value to our clients for adoption, from Instana to Turbonomic X, to some really innovative cloud consulting companies like Knorr cloud in towels. So we're going to continue to make investments. And I think we're just on the tip of the iceberg and we invite everybody at re-invent, either in person, which is exciting or virtually to learn more about our partnership and how we can help you and my new, any additional comments to that. >>Thanks, Bob V have a golden child hair with red hat OpenShift on Amazon. That'd be launched in April. We are seeing tremendous customer adoption. So we suspect that in next year, we'll continue to see solid adoption around red hat OpenShift. That VocaliD is also informing how customers want a more native experience for IBM software on AWS. And so we, um, we are targeting to, to launch many more IBM software in a native format on edema. So that would be the big team for next year. Uh, in addition, again, I'll call to action to our partner community. There's a huge opportunity to help our joint customers to modernize and migrate on AWS via both IBM, AWS are leaning in, we have cash credit to give financial incentives to partners, to help our customers, to migrate and modernize as well as we are also creating a lot of technical content that is not freely available so that a lot of our partners can start this. IBM focus on AWS practice >>Guys. Thanks so much for coming on the cube. Congratulations, and look at, you know, I often say the next 10 years is not going to be like the last 10 years. The cloud is expanding is a really good example. So thank you for your time. Appreciate your time. All right. You're watching the cube, the leader in high tech coverage at AWS reinvent 2021

(upbeat music) >> Hey, welcome back everyone to theCube's coverage of AWS re:Invent 2021. I'm John Furrier, host of theCube, wall-to-wall coverage in-person and hybrid. The two great guests here, Manu Parbhakar, worldwide Leader, Linux and IBM Software Partnership at AWS, and Mike Evans, Vice President of Technical Business Development at Red Hat. Gentlemen, thanks for coming on theCube. Love this conversation, bringing Red Hat and AWS together. Two great companies, great technologies. It really is about software in the cloud, Cloud-Scale. Thanks for coming on. >> Thanks John. >> So get us into the partnership. Okay. This is super important. Red Hat, well known open source as cloud needs to become clear, doing an amazing work. Amazon, Cloud-Scale, Data is a big part of it. Modern software. Tell us about the partnership. >> Thanks John. Super excited to share about our partnership. As we have been partnering for almost 14 years together. We started in the very early days of AWS. And now we have tens of thousands of customers that are running RHEL on EC2. If you look at over the last three years, the pace of innovation for our joint partnership has only increased. It has manifested in three key formats. The first one is the pace at which RHEL supports new EC2 instances like Arm, Graviton. You know, think a lot of features like Nitro. The second is just the portfolio of new RHEL offerings that we have launched over the last three years. We started with RHEL for sequel, RHEL high availability, RHEL for SAP, and then only last month, we've launched the support for knowledge base for RHEL customers. Mike, you want to talk about what you're doing with OpenShift and Ansible as well? >> Yeah, it's good to be here. It's fascinating to me cause I've been at Red Hat for 21 years now. And vividly remember the start of working with AWS back in 2008, when the cloud was kind of a wild idea with a whole bunch of doubters. And it's been an interesting time, but I feel the next 14 years are going to be exciting in a different way. We now have a very large customer base from almost every industry in the world built on RHEL, and running on AWS. And our goal now is to continue to add additional elements to our offerings, to build upon that and extend it. The largest addition which we're going to be talking a lot about here at the re:Invent show was the partnership in April this year when we launched the Red Hat OpenShift service on AWS as a managed version of OpenShift for containers based workloads. And we're seeing a lot of the customers that have standardized on RHEL on EC2, or ones that are using OpenShift on-premise deployments, as the early adopters of ROSA, but we're also seeing a huge number of new customers who never purchased anything from Red Hat. So, in addition to the customers, we're getting great feedback from systems integrators and ISV partners who are looking to have a software application run both on-premise and in AWS, and with OpenShift being one of the pioneers in enabling both container and harnessing Kubernetes where ROSA is just a really exciting area for us to track and continue to advance together with AWS. >> It's very interesting. Before I get to ROSA, I want to just get the update on Red Hat and IBM, obviously the acquisition part of IBM, how is that impacting the partnership? You can just quickly touch on that. >> Sure. I'll start off and, I mean, Red Hat went from a company that was about 15,000 employees competing with a lot of really large technology companies and we added more than 100,000 field oriented people when IBM acquired Red Hat to help magnify the Red Hat solutions, and the global scale and coverage of IBM is incredible. I like to give two simple examples of people. One is, I remember our salesforce in EMEA telling me they got a $4 million order from a country in Africa theydidn't even know existed. And IBM had 100 people in it, or AT&T is one of Red Hat's largest accounts, and I think at one point we had seven full-time people on it and AT&T is one of IBM's largest accounts and they had two seven storey buildings full of people working with AT&T. So RHELative to AWS, we now also see IBM embracing AWS more with both software, and services, in the magnification of Red Hat based solutions, combined with that embrace should be, create some great growth. And I think IBM is pretty excited about being able to sell Red Hat software as well. >> Yeah, go ahead. >> And Manu I think you have, yeah. >> Yeah. I think there's also, it is definitely very positive John. >> Yeah. >> You know, just the joint work that Red Hat and AWS have done for the last 14 years, working in the trenches supporting our end customers is now also providing lot of Tailwinds for the IBM software partnership. We have done some incredible work over the last 12 months around three broad categories. The first one is around product, what we're doing around customer success, and then what we're doing around sales and marketing. So on the product side, we have listed about 15 products on Marketplace over the course of the last 12 to 15 months. And our goal is to launch all of the IBM Cloud Paks. These are containerized versions of IBM software on Marketplace by the first half of next year. The other feedback that we are getting from our customers is that, hey, we love IBM software running at Amazon, but we like to have a cloud native SaaS version of the software. So there's a lot of work that's going on right now, to make sure that many of these offerings are available in a cloud-native manner. And you're not talking with Db2 Cognos, Maximo, (indistinct), on EC2. The second thing that we're doing is making sure that many of these large enterprise customers are running IBM software, are successful. So our technical teams are attached to the hip, working on the ground floor in making customers like Delta successful in running IBM software on them. I think the third piece around sales and marketing just filing up a vibrant ecosystem, rather how do we modernize and migrate this IBM software on Cloud Paks on AWS? So there's a huge push going on here. So (indistinct), you know, the Red Hat partnership is providing a lot of Tailwinds to accelerate our partnership with IBM software. >> You know, I always, I've been saying all this year in Red Hat summit, as well as Ansible Fest that, distributed computing is coming to large scale. And that's really the, what's happening. I mean, you looking at what you guys are doing cause it's amazing. ROSA Red Hat OpenShift on AWS, very notable to use the term on AWS, which actually means something in the partnership as we learned over the years. How is that going Mike because you launched on theCube in April, ROSA, it had great traction going in. It's in the Marketplace. You've got some integration. It's really a hand in glove situation with Cloud-Scale. Take us through what's the update? >> Yeah, let me, let me let Manu speak first to his AWS view and then I'll add the Red Hat picture. >> Thanks Mike. John for ROSA is part of an entire container portfolio. So if you look at it, so we have ECS, EKS, the managed Kubernetes service. We have the serverless containers with Fargate. We launched ECS case anywhere. And then ROSA is part of an entire portfolio of container services. As you know, two thirds of all container workloads run on AWS. And a big function of that is because we (indistinct) from our customer and then sold them what the requirements are. There are two sets of key customers that are driving the demand and the early adoption of ROSA. The first set of customers that have standardized on OpenShift on-premises. They love the fact that everything that comes out of the box and they would love to use it on Arm. So that's the first (indistinct). The second set of customers are, you know, the large RHEL users on EC2. The tens of thousands of customers that we've talked about that want to move from VM to containers, and want to do DevOps. So it's this set of two customers that are informing our roadmap, as well as our investments around ROSA. We are seeing solid adoption, both in terms of adoption by a customer, as well as the partners and helping, and how our partners are helping our customers in modernizing from VMs to containers. So it's a, it's a huge, it's a huge priority for our container service. And over the next few years, we continue to see, to increase our investment on the product road map here. >> Yeah, from my perspective, first off at the high level in mind, my one of the most interesting parts of ROSA is being integrated in the AWS console and not just for the, you know, where it shows up on the screen, but also all the work behind what that took to get there and why we did it. And we did it because customers were asking both of us, we're saying, look, OpenShift is a platform. We're going to be building and deploying serious applications at incredible scale on it. And it's really got to have joint high-quality support, joint high-quality engineering. It's got to be rock solid. And so we came to agreement with AWS. That was the best way to do that, was to build it in the console, you know, integrated in, into the core of an AWS engineering team with Red Hat engineers, Arm and Arms. So that's, that's a very unique service and it's not like a high level SaaS application that runs above everything, it's down in the bowels and, and really is, needs to be rock solid. So we're seeing, we're seeing great interest, both from end users, as I mentioned, existing customers, new customers, the partner base, you know, how the systems integrators are coming on board. There's lots of business and money to be made in modernizing applications as well as building new cloud native applications. People can, you know, between Red Hat and AWS, we've got some, some models around supporting POCs and customer migrations. We've got some joint investments. it's a really ripe area. >> Yeah. That's good stuff. Real quick. what do you think of ROSA versus EKS and ECS? What's, how should people think about that Mike? (indistinct) >> You got to go for it Manu. Your job is to position all these (indistinct). (indistinct) >> John, ROSA is part of our container portfolio services along with EKS, ECS, Fargate, and any (indistinct) services that we just launched earlier this year. There are, you know, set of customers both that are running OpenShift on-premises that are standardized on ROSA. And then there are large set of RHEL customers that are running RHEL on EC2, that want to use the ROSA service. So, you know, both AWS and Red Hat are now continuing to invest in accelerating the roadmap of the service on our platform. You know, we are working on improving the console experience. Also one of the things we just launched recently is the Amazon controller to Kubernetes, or what , you know, service operators for S3. So over the next few years you will see, you know, significant investment from both Red Hat and AWS in this joint service. And this is an integral part of our overall container portfolio. >> And great stuff to get in the console. That's great, great integration. That's the future. I got to ask about the graviton instances. It's been one of the most biggest success stories, I think we believe in Amazon history in the acquisition of Annapurna, has really created great differentiation. And anyone who's in the software knows if you have good chips powering apps, they go faster. And if the chips are good, they're less expensive. And that's the innovation. We saw that RHEL now supports graviton instances. Tell us more about the Red Hat strategy with graviton and Arms specifically, has that impact your (indistinct) development, and what does it mean for customers? >> Sure. Yeah, it's pretty, it's a pretty fascinating area for me. As I said, I've been a Red Hat for 21 years and my job is actually looking at new markets and new technologies now for Red Hat and work with our largest partners. So, I've been tracking the Arm dynamics for awhile, and we've been working with AWS for over two years, supporting graviton. And it's, I'm seeing more enthusiasm now in terms of developers and, especially for very horizontal, large scale applications. And we're excited to be working with AWS directly on it. And I think it's going to be a fascinating next two years on Arm, personally. >> Many of the specialized processors for training and instances, all that stuff, can be applied to web services and automation like cloud native services, right? Is that, it sounds like a good direction. Take us through that. >> John, on our partnership with Red Hat, we are continuing to iterate, as Mike mentioned, the stuff that we've done around graviton, both the last two years is pretty incredible. And the pace at which we are innovating is improving. Around the (indistinct) and the inferential instances, we are continuing to work with Red Hat and, you know, the support for RHEL should come shortly, very soon. >> Well, my prediction is that the graviton success was going to be applied to every single category. You can get that kind of innovation with this on the software side, just really kind of just, that's the magical, that's the, that's the proven form of software, right? We've been there. Good software powering with some great performance. Manu, Mike, thank you for coming on and sharing the, the news and the partnership update. Congratulations on the partnership. Really good. Thank you. >> Excellent John. Incredible (indistinct). >> Yeah, this is the future software as we see, it's all coming together. Here on theCube, we're bringing all the action, software being powered by chips, is theCube coverage of AWS re:invent 2021. I'm John Furrier, your host. Thanks for watching. (upbeat music)