>> Live from San Francisco, it's theCUBE covering IBM Think 2019, brought to you by IBM. >> Hey, welcome back everyone. We're here live at theCUBE in Moscone North in San Francisco, for IBM Think 2019. I'm John Furrier with Stu Miniman, talking to all the top executives, top people here at IBM, getting the scoop on cloud and AI. Our next guest, Jason Gardner, Vice President of Worldwide Sales for Hybrid Cloud at IBM, manages key product, which is part of the IBM Cloud Private, big part of the announcements, big Cloud story here. It's multi-cloud, it's hybrid. Welcome back. >> It's hybrid multi-cloud. Thank you, for having me back. >> CUBE Alumni been on as early, going back as 2012. Now, one big event. >> I can't believe it's been that long. But yeah, I'm happy to be back and I can't believe I've been on theCUBE for so long. >> Talk about your new role, and you had previous roles within IBM dealing with the kind of clients and integration. Your role now is worldwide sales. You're taking this Cloud Private offering, bringing the customers, being as the linchpin for integration. Talk about what you do and some of the engagements you have. >> Yeah, previously, I was really focused in on development and offering management on, point products and how they help clients move to the Cloud. Things such as our Pure Business, our Spare Business, and now I've actually been able to move into a much more horizontal role, where I have the portfolio across the Hybrid Cloud integration side, so everything from our Websphere family, which includes IBM Cloud Private, straight to the integration challenges that that brings as well as our digital business automation portfolio. >> Yeah, I have a personal joy. Stu knows I'm fanatic about Kubernetes, and when I heard Ginni Rometty say Kubernetes twice in a CNBC interview you know it's made it. >> Yes. >> Kubernetes is a big part of cloud native containers, really now has created the connective tissue to make cloud and multi cloud viable. This is a key part of it. I want you to talk about the context of these trends and unpack this Cloud Private offering. Because it's instrumental in seems in the news. >> It is, it is. >> What is it about? >> It is, it really creates that ubiquitous layer I think that we've all been searching for. That next generation of virtualization and connective tissue as you call it. And as you begin to unpack that it really kind of starts with the rise of microservices and the need to be able to pack them very tightly into containers. That's really the birth of Kubernetes, was the ability to orchestrate those containers. So Kubernetes becomes that ubiquitous layer in there. But, IBM Cloud Private takes that and takes it to the next level, right. And, really what it is, it's the services on top of that, the cloud services which enable those containers to work together. And, it is a lot of open source capabilities such as Helm, Prometheus, Kibana and some of those core services that those microservices require in order to be able to run efficiently. >> So, Jason, we know it's a multicloud world. Everybody out there would love to say, oh yes, there's one cloud, I can simplify it. I'd like to get to a nice scalable model that's simple. But, the reality is customers choose lots of different solutions because they have different needs. The Private Cloud piece is not really well understood. I'd love you to take us inside your users. Because they say okay, I'm using Amazon, I'm using Microsoft Business Services. There are certain data things that Google has. IBM has AI and business productivity and database offerings. That Cloud Private, what are the services, what are the use cases, what are the reasons why I'm buying this and being part of my overall portfolio. >> Yeah, Ginni called it Cloud 2.0, right. 1.0 was about lifting shift, it was about cloud native, and that really got us about 20% of the way there. It's at 80%, that's the real challenge, that's really where the complication comes into play. That's really what Private Cloud is about. Because not everybody can be able to take their applications, throw them away, build cloud native, or lift and shift them. If you think of big regulated industries like banking, insurance, healthcare, government. They really need to be able to have that level of security and assurances that they need within there. And, that's really where private cloud comes into play, is those really tough, challenging problems in the industry. >> Yeah, I love that. A trend I've heard from a number of customers, you talk about them getting to containerization and multifactor services, is, step one is, I've got to modernize the platform-- >> Absolutely. >> Then I can modernize the applications on top it. Is that the trend you're seeing? >> Yeah, definitely. We've been building on microservices and modernization, it's a journey right, and it's a journey of discovery I think for a lot of clients out there. And, we'd all love to be able to say, OK this is my platform and now I'm going to work on the applications. But really, sometimes the starting point may be one or the another, and it usually comes in a space of a digital requirement, and so they begin to out modernize the application and then realize, jeez! I need to be able to manage all of this, I need to be able to deploy it all, and that's when the platform comes into play and all the other services, I should say, that come along with it. >> Stu, I think you coined the term Private Cloud. I think wasn't it? >> The true private cloud. >> True private cloud. So the private cloud, again, it's all cloud operations, so I kind of disagree on this whole point about one cloud or multi-cloud. Because I think, yes multi-cloud, but you see people use cloud for workloads, right? So pick the right cloud for the right application. So this basically says, okay, if you want to use Amazon, use Amazon if that's what you want, but if you are going to use 365, maybe use Azure. >> Yep. >> If you are going to use G Suite, use Google. You guys kind of have the business apps nailed down. >> Right. >> So If you're going to use your business apps, maybe IBM. This is your opportunity. >> This is our opportunity. >> Talk about specifically the kinds of apps that you guys will power with your cloud, because multi-cloud certainly makes sense for you guys. It's multi-cloud, you won't that portability and interoperability, but the apps that you're going to power with IBM Cloud. Talk about what they are, how-- >> Yeah, if you look at, from a language perspective over the last, jeez it's been 23 years I think, since the rise of Java, right? And 1995, when the first app servers came out. Those app servers, that is really where ore applications really run on top of. And, it's those core Java applications, that are now needing that facelift, right? They need to be able to be injected with new forms of AI, new types of integrations, new types of personalization of that digital transformation that's driving it, and that's really the core suite, right? And if I look at that core suite in there, and then what do you do to modernize a Java application, and what kind of tools are available to you. How do you then manage, how do you distribute, and how do you scale those applications. It's very important. >> What is the adoption of the private cloud or the Cloud Private product. >> Yeah. >> Talk about some of the trends, how is it being used, be specific on how customers are using it. What are some of the use cases? >> Yeah, so the primary use case is to increase the agility, lower cost on the overall managing of them. But it's the increase in the agility, which is really hard to measure. Because clients want to be able to react very fast to it. And so as they build up microservices, microservices then become independent with one another. You can then update ones, very quickly and easily. They manage and they run independently, and they scale independently, and so Cloud Private provides you with all those services to able to run those microservices as containers, but then be able to tie them together in a much more comprehensive enterprise suite. You know, a core technology like Helm, I'm waiting for Ginni to say that one on stage. But a core technology like Helm, really provides that robust, enterprise class distribution for scalability and high availability of a microservice based application. >> Jason, can you bring us inside the organization of the customers your selling to? It used to be, it was the refresh cycle. It's like OK, my X86 refresh, or you know, the budget cycles that I had. Cloud is quite a bit different. >> It is. >> Private Cloud is kind of straddling between the old world and the new world. What are the dynamics you're seeing as to who controls the purse strings? Are they moving faster to that opex model. >> You know, there's no one person who owns the purse strings on it, but it does float between the infrastructure team, knows that they need to do something different, the developers or the application development team, and really the strategy, the Chief Strategy Officer, in that IT organization is really where it's coming together. Because one thing I think that we've all learned is that developers will find the easiest, fastest way to do something. No matter what rules or policies we put down. And this is about providing them with an environment that has guardrails, for them to be able to innovate as fast as they want, use the tools that they want, that their most comfortable with. Really, it's a grass roots kind of movement into these microservices, led by the developers. But the purse strings are still held at the CTO side. >> That's always a fascinating interest, because the developers they're going to go do it, but they're not usually the ones with the budget. >> That's right. >> But when do the ops people get involved, the business people, to make sure that IT manages it, gets rid of like stealth IT? >> And a lot of clients have learned to listen to the developers, because the early days of cloud, they didn't, and developers found ways through it, no matter what. And so that's really what it's about. It's like a game of bumper cars, right? You got to make sure they stay within the ring of what's safe. And, especially in this day and age of the security requirements that are out there, it's more important today than ever before. >> Jason, can you share some data around some observations that you've noticed on trends around industry uptake or is there any patterns in terms of the customer base? Obviously, people aren't going to going to cloud operations. Just, Ginni mentioned 60/40, 80/20, the ratios. What does that all mean? And, just share the trend data around adoption and patterns? >> Probably the biggest onE in there, is the 80/20, right? That there's still 80% of the applications left in the world are still locked behind the brick and mortar. That's probably our biggest piece of our opportunity, and providing clients with a way to lift them up and be able to modernize them. I think is where the huge opportunity is. But then looking at where do they land, it's not all going to public cloud, right. So private cloud it's a huge business. I think a lot of us underestimated how large that business really is, and depending on the industry, you'll see 50/50, 60/40, 40/60 split, depending on the regulations within that industry, that country, the geography, of where they really want to go to. And, a lot of our clients are asking us for solutions around that private side, but yet be able to have the flexibility to be able to-- >> So you're seeing friction on the public cloud, mainly that's inherent from either regulatory compliance, or just technical challenges. Is that kind of the vibe? >> That's probably the first one. I think there's still that regulatory requirements of data residency, and how do I get my data to application. I can build all the applications I want in the cloud, but how do I get my data there? How do I synchronize it? My lineage of my data. So they really challenged her on that. But, then on the other side of it, is around the cost, right. And, if you wanted to rebuild all of your applications, as true cloud native, from scratch. It will take you a very long time and be very, very expensive. And so, there's also a cost element and speed. You can modernize something much more quickly, and be able to get it to that same level of service, without having to start over. >> We had Arvind on earlier, yesterday, and I want to get your thoughts on the impact of the Red Hat acquisition news, because if you look at what Open Shift is doing with Cloud Private. Arvind was saying yesterday that, Arvind Krishna, he's like, this is really enabling a lot of the acceleration for the modernization of the new cloud stuff, and keeping the legacy stuff and/or transition out on different timetables. Your thought on that? >> Absolutely right, Open Shift is going to be a critical component for our overall hybrid strategy. I'm very excited about it and really looking forward to it. And, Cloud Private and the services that I talked about, run in Open Shift today. That was part of our partnership agreement. I think that you guys were at, that Arvind talked about at that time. But, it provides the platform, for all of those traditional applications, which we've modernized. And the interesting thing is that we've actually modernized ourselves. We've modernized our middle-ware. We've modernized some of those products that are you know, 10, 20 years old. Everything from WebSphere, to MQ, to BPM. They've all been modernized in that same fashion. >> Yeah, Jason, speaking of modernization. Bring us inside you're sales force a little bit. How do they keep up, and what's the skill set that you're looking for, on your team to sell on this. You know, they need to understand Helm and Kubernetes, and all these microservice architecture, where five years ago, it was a totally different world. >> Absolutely, you know I think that if I look at a, it's not a skill, it's passion, right? It's that never give up type of mentality, I think that we look for, in a sales force and I never give up attitude really provides you with that foundation, for never stop learning, right. If anything that you've guys have noticed here over the last ten years in your guys' journey, is that this industry just changes so repidly, all the time. And, so as a sales force, you can't just acquire skills. You don't go out and hire skills. You hire people and you hire passion, and you hire people with that never give up attitude. I've been going around. We've been doing our sales kick-offs. I've done two out of the three now, so far. I tell you they are energized. They love it. They are energized about the Red Hat Acquisition. It shows that IBM really gets it. They've been telling me, does IBM really get it? And now they're like wow, we really do get it? And, they're really energized, because all of the pieces are falling into place, around this modernization, and clients, and we're hitting the timeing. >> It's time to hit that pedal to the metal, put the gas on-- >> They always say, there's no speed limit on sales. >> (laughs) Exactly. OK, first of all great, great conversation, and thanks for waiting out our journey. Stu, I would say that the salespeople got to watch all theCube videos, because all of the best content is coming out of theCube here, and great to have you on. But, quick plug, I'll give you the last word. What's the pitch, share the pitch for the Hybrid Cloud, what your team is offering? What's the, the core pitch for your customers, when you go to them? >> I think the core pitch is around modernization. It's the journey that clients are on, from application development, to how you build your apps, and how you build the microservices. How you integrate those applications, what's your API strategy, how do you move that data around securely, and then how do you manage all of those pieces together in that new modern world. And then, really looking your overall processes, and can you modernize your overall processes, add AI capabilities into that. So, it's that modernization journey. That's really what I talk to them about, and you don't have to do everything, right? Start small, start as a pinpointed piece, and we'll help you along that journey. And it becomes a journey of self-discovery, but we're there the whole way. We're a partner, that's really what it's about. >> Jason Gardner, Vice President of Worldwide Sales with Hybrid Cloud at IBM. TheCube, bringing all the data here, from IBM Think 2019. This is day three, of four days of coverage, here in Moscone live in San Francisco. We'll be right back with more, after this short break. (upbeat music)