(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)

>> reply from San Francisco. It's the Cube covering Google Club next nineteen Tio by Google Cloud and its ecosystem partners. >> We're back at Google Cloud next twenty nineteen. You're watching the Cube, the leader in live tech coverage on Dave a lot with my co host to minimum John Farriers. Also here this day. Two of our coverage. Hash tag. Google Next nineteen. Mike Evans is here. He's the vice president of technical business development at Red Hat. Mike, good to see you. Thanks for coming back in the Cube. >> Right to be here. >> So, you know, we're talking hybrid cloud multi cloud. You guys have been on this open shift for half a decade. You know, there were a lot of deniers, and now it's a real tail one for you in the whole world is jumping on. That bandwagon is gonna make you feel good. >> Yeah. No, it's nice to see everybody echoing a similar message, which we believe is what the customers demand and interest is. So that's a great validation. >> So how does that tie into what's happening here? What's going on with the show? It's >> interesting. And let me take a step back for us because I've been working with Google on their cloud efforts for almost ten years now. And it started back when Google, when they were about to get in the cloud business, they had to decide where they're going to use caveat present as their hyper visor. And that was a time when we had just switched to made a big bet on K V M because of its alignment with the Lenox Colonel. But it was controversial and and we help them do that. And I look back on my email recently and that was two thousand nine. That was ten years ago, and that was that was early stages on DH then, since that time, you know, it's just, you know, cloud market is obviously boomed. I again I was sort of looking back ahead of this discussion and saying, you know, in two thousand six and two thousand seven is when we started working with Amazon with rail on their cloud and back when everyone thought there's no way of booksellers goingto make an impact in the world, etcetera. And as I just play sort of forward to today and looking at thirty thousand people here on DH you know what sort of evolved? Just fascinated by, you know, sort of that open sources now obviously fully mainstream. And there's no more doubters. And it's the engine for everything. >> Like maybe, you know, bring us inside. So you know KK Veum Thie underpinning we know well is, you know, core to the multi clouds tragedy Red hat. And there's a lot that you've built on top of it. Speak, speak a little bit of some of the engineering relationships going on joint customers that you have. Ah, and kind of the value of supposed to, you know, write Hatton. General is your agnostic toe where lives, but there's got to be special work that gets done in a lot of places. >> Ralph has a Google. Yeah, yeah, yeah. >> Through the years, >> we've really done a lot of work to make sure that relative foundation works really well on G C P. So that's been a that's been a really consistent effort and whether it's around optimization for performance security element so that that provides a nice base for anybody who wants to move any work loader application from on crime over there from another cloud. And that's been great. And then the other maid, You know, we've also worked with them. Obviously, the upstream community dynamics have been really productive between Red Hat and Google, and Google has been one of the most productive and positive contributors and participants and open source. And so we worked together on probably ten or fifteen different projects, and it's a constant interaction between our upstream developers where we share ideas. And do you agree with this kind of >> S O Obviously, Cooper Netease is a big one. You know, when you see the list, it's it's Google and Red Hat right there. Give us a couple of examples of some of the other ones. I >> mean again, it's K B M is also a foundation on one that people kind of forget about that these days. But it still is a very pervasive technology and continuing to gain ground. You know, there's all there's the native stuff. There's the studio stuff in the AML, which is a whole fascinating category in my mind as well. >> I like history of kind of a real student of industry history, and so I like that you talk to folks who have been there and try to get it right. But there was a sort of this gestation period from two thousand six to two thousand nine and cloud Yeah, well, like you said, it's a book seller. And then even in the down turn, a lot of CFO said, Hey, cap backstop ex boom! And then come out of the downturn. And it was shadow I t around that two thousand nine time frame. But it was like, you say, a hyper visor discussion, you know, we're going to put VM where in in In our cloud and homogeneity had a lot of a lot of traditional companies fumbling with their cloud strategies. And and And he had the big data craze. And obviously open source was a huge part of that. And then containers, which, of course, have been around since Lennox. Yeah, yeah, and I guess Doctor Boom started go crazy. And now it's like this curve is reshaping with a I and sort of a new era of data thoughts on sort of the accuracy of that little historical narrative and and why that big uptick with containers? >> Well, a couple of things there won the data, the whole data evolution and this is a fascinating one. For many, many years. I'm gonna be there right after nineteen years. So I've seen a lot of the elements of that history and one of the constant questions we would always get sometimes from investor. Why don't you guys buy a database company? You know, years ago and we would, you know, we didn't always look at it. Or why aren't you guys doing a dupe distribution When that became more spark, etcetera. And we always looked at it and said, You know, we're a platform company and if we were to pick anyone database, it would only cover some percentage and there's so many, and then it just kind of upsets the other. So we've we've decided we're going to focus, not on the data layer. We're going to focus on the infrastructure and the application layer and work down from it and support the things underneath. So it's consistent now with the AML explosion, which, you know, we're who was a pioneer of AML. They've got some of the best services and then we've been doing a lot of work within video in the last two years to make sure that all the GP use wherever they're run. Hybrid private cloud on multiple clouds that those air enabled and Raylan enabled in open shift. Because what we see happening and in video does also is right now all the applications being developed by free mlr are written by extremely technical people. When you write to tense airflow and things like that, you kind of got to be able to write a C compiler level, but so were working with them to bring open shift to become the sort of more mass mainstream tool to develop. A I aml enable app because the value of having rail underneath open shift and is every piece of hardware in the world is supported right for when that every cloud And then when we had that GPU enablement open shift and middleware and our storage, everything inherits it. So that's the That's the most valuable to me. That's the most valuable piece of ah, real estate that we own in the industry is actually Ralph and then everything build upon that and >> its interest. What you said about the database, Of course, we're a long discussion about that this morning. You're right, though. Mike, you either have to be, like, really good at one thing, like a data stacks or Cassandra or a mongo. And there's a zillion others that I'm not mentioning or you got to do everything you know, like the cloud guys were doing out there. You know, every one of them's an operational, you know, uh, analytics already of s no sequel. I mean, one of each, you know, and then you have to partner with them. So I would imagine you looked at that as well. I said, How're we going to do all that >> right? And there's only, you know, there's so many competitive dynamics coming at us and, you know, for we've always been in the mode where we've been the little guy battling against the big guys, whoever, maybe whether it was or, you know, son, IBM and HP. Unix is in the early days. Oracle was our friend for a while. Then they became. Then they became a nen ime, you know, are not enemy but a competitor on the Lennox side. And the Amazon was early friend, and then, though they did their own limits. So there's a competitive, so that's that's normal operating model for us to us to have this, you know, big competitive dynamic with a partnering >> dynamic. You gotta win it in the marketplace that the customers say. Come on, guys. >> Right. We'Ll figure it out >> together, Figured out we talked earlier about hybrid cloud. We talked about multi cloud and some people those of the same thing. But I think they actually you know, different. Yeah, hybrid. You think of, you know, on prim and public and and hopefully some kind of level of integration and common data. Plain and control plan and multi cloud is sort of evolved from multi vendor. How do you guys look at it? Is multi cloud a strategy? How do you look at hybrid? >> Yeah, I mean, it's it's it's a simple It's simple in my mind, but I know the words. The terms get used by a lot of different people in different ways. You know, hybrid Cloud to me is just is just that straightforward. Being able to run something on premise have been able to run something in any in a public cloud and have it be somewhat consistent or share a bowl or movable and then multi cloud has been able to do that same thing with with multiple public clouds. And then there's a third variation on that is, you know, wanting to do an application that runs in both and shares information, which I think the world's you know, You saw that in the Google Antos announcement, where they're talking about their service running on the other two major public cloud. That's the first of any sizable company. I think that's going to be the norm because it's become more normal wherever the infrastructure is that a customer's using. If Google has a great service, they want to be able to tell the user toe, run it on their data there at there of choice. So, >> yeah, so, like you brought up Antos and at the core, it's it's g k. So it's the community's we've been talking about and, he said, worked with eight of us work for danger. But it's geeky on top of those public clouds. Maybe give us a little bit of, you know, compare contrast of that open shift. Does open ship lives in all of these environments, too, But they're not fully compatible. And how does that work? So are >> you and those which was announced yesterday. Two high level comments. I guess one is as we talked about the beginning. It's a validation of what our message has been. Its hybrid cloud is a value multi clouds of values. That's a productive element of that to help promote that vision And that concept also macro. We talked about all of it. It it puts us in a competitive environment more with Google than it was yesterday or two days ago. But again, that's that's our normal world way partnered with IBM and HP and competed against them on unit. We partner with that was partnered with Microsoft and compete with them, So that's normal. That said, you know, we believe are with open shift, having five plus years in market and over a thousand customers and very wide deployments and already been running in Google, Amazon and Microsoft Cloud already already there and solid and people doing really things with that. Plus being from a position of an independent software vendor, we think is a more valuable position for multi cloud than a single cloud vendor. So that's, you know, we welcome to the party in the sense, you know, going on prom, I say, Welcome to the jungle For all these public called companies going on from its, you know, it's It's a lot of complexity when you have to deal with, You know, American Express is Infrastructure, Bank of Hong Kong's infrastructure, Ford Motors infrastructure and it's a it's a >> right right here. You know Google before only had to run on Google servers in Google Data Center. Everything's very clean environment, one temperature on >> DH Enterprise customers have it a little different demands in terms of version ality and when the upgrade and and how long they let things like there's a lot of differences. >> But actually, there was one of the things Cory Quinn will. It was doing some analysis with us on there. And Google, for the most part, is if we decide to pull something, you've got kind of a one year window to do, you know? How does Red Hot look at that? >> I mean, and >> I explained, My >> guess is they'LL evolve over time as they get deeper in it. Or maybe they won't. Maybe they have a model where they think they will gain enough share and theirs. But I mean, we were built on on enterprise DNA on DH. We've evolved to cloud and hybrid multi cloud, DNA way love again like we love when people say I'm going to the cloud because when they say they're going to the cloud, it means they're doing new APs or they're modifying old apse. And we have a great shot of landing that business when they say we're doing something new >> Well, right, right. Even whether it's on Prem or in the public cloud, right? They're saying when they say we'LL go to the club, they talk about the cloud experience, right? And that's really what your strategy is to bring that cloud experience to wherever your data lives. Exactly. So talking about that multi cloud or a Romney cloud when we sort of look at the horses on the track and you say Okay, you got a V M. We're going after that. You've got you know, IBM and Red Hat going after that Now, Google sort of huge cloud provider, you know, doing that wherever you look. There's red hat now. Course I know you can't talk much about the IBM, you know, certainly integration, but IBM Executive once said to me still that we're like a recovering alcoholic. We learned our lesson from mainframe. We are open. We're committed to open, so we'LL see. But Red hat is everywhere, and your strategy presumably has to stay that sort of open new tia going last year >> I give to a couple examples of long ago. I mean, probably five. Six years ago when the college stuff was still more early. I had a to seo conference calls in one day, and one was with a big graphics, you know, Hollywood Graphics company, the CEO. After we explained all of our cloud stuff, you know, we had nine people on the call explaining all our cloud, and the guy said, Okay, because let me just tell you, right, that guy, something the biggest value bring to me is having relish my single point of sanity that I can move this stuff wherever I want. I just attach all my applications. I attached third party APS and everything, and then I could move it wherever we want. So realize that you're big, and I still think that's true. And then there was another large gaming company who was trying to decide to move forty thousand observers, from from their own cloud to a public cloud and how they were going to do it. And they had. They had to Do you know, the head of servers, a head of security, the head of databases, the head of network in the head of nine different functions there. And they're all in disagreement at the end. And the CEO said at the end of day, said, Mike, I've got like, a headache. I need some vodka and Tylenol now. So give me one simple piece of advice. How do I navigate this? I said, if you just write every app Terrell, Andrzej, boss. And this was before open shift. No matter >> where you want >> to run him, Raylan J. Boss will be there, and he said, Excellent advice. That's what we're doing. So there's something really beautiful about the simplicity of that that a lot of people overlooked, with all the hand waving of uber Netease and containers and fifty versions of Cooper Netease certified and you know, etcetera. It's it's ah, it's so I think there's something really beautiful about that. We see a lot of value in that single point of sanity and allowing people flexibility at you know, it's a pretty low cost to use. Relish your foundation >> over. Source. Hybrid Cloud Multi Cloud Omni Cloud All tail wins for Red Hat Mike will give you the final world where bumper sticker on Google Cloud next or any other final thoughts. >> To me, it's It's great to see thirty thousand people at this event. It's great to see Google getting more and more invested in the cloud and more and more invested in the enterprise about. I think they've had great success in a lot of non enterprise accounts, probably more so than the other clowns. And now they're coming this way. They've got great technology. We've our engineers love working with their engineers, and now we've got a more competitive dynamic. And like I said, welcome to the jungle. >> We got Red Hat Summit coming up stew. Writerly May is >> absolutely back in Beantown data. >> It's nice. Okay, I'll be in London there, >> right at Summit in Boston And May >> could deal. Mike, Thanks very much for coming. Thank you. It's great to see you. >> Good to see you. >> All right, everybody keep right there. Stew and I would back John Furry is also in the house watching the cube Google Cloud next twenty nineteen we'LL be right back

>>from >>the Cube Studios in Palo Alto and Boston. It's the Cube covering empowering the autonomous enterprise brought to you by Oracle >>Consulting. Welcome back, everybody, to this special presentation of the Cube. We're covering the rebirth of Oracle Consulting. It's a digital event. We're going out. We're extracting the signal from the noise we happened today to be in Chicago, which is obviously the center of the country. A lot of customers here, a lot of consultants and consulting organizations here. A lot of expertise. Mike Evans is here. He's the VP for cloud advisory and general manager of Oracle. Elevate, Mike. Thanks for coming on The Cube. >>Appreciate it. Good to be here. >>So you elevate in your title. What is Oracle Elevate it or >>elevate was actually announced or cold from world last year. It's the partnership that we really had to actually take our scale of the next levels who actually did it with Deloitte Consulting. So the goal is to actually take the capabilities of both organizations. Deloitte really has functional capabilities and expertise within Oracle practice, and obviously Oracle has Oracle technical expertise. That combination that to really allows us to scale provide sort of call. The one plus one equals three effort for customers. >>You've got a decent timeline or observation. Over the past several years you joined three years ago, you were brand name companies. First of all, what attracted you to come to Oracle Consultant? >>Absolutely. So Oracle was in the point where they were doing a lot of stuff around on prim on premise software, the old RP type stuff they were doing cloud. They sort of had to have this sort of transformational moment. I was asked to come in and consulting in the early days and say, Hey, look, we're trying to transform the organization for mantra consulting over to Cloud Consulting, coming to help us with this stuff that you've worked with prior to cloud companies and help us really move the organization forward and look at things differently. So it's definitely been a journey over the last three years have taken it from early 85% of the 90% of our revenue around on Prem type of engagements to now actually splitting the organization being dedicated 100% in cloud, which is a huge transformation last >>three years. What really, what's the underpinning of Gen two Cloud. Can you give us the bumper sticker on that? >>Yeah, Well, the underpinning agenda to cloud is really if you look at the Gen One cloud was purely just infrastructure layer. Gen two is really based on a segmenting security, which is a huge problem out in the marketplace, right? So we actually have a sort of a world class way. We take segments security outside of the actual environment itself. It's completely segment, which is awesome, right? But then they also when you actually moving forward. The capability of the entire thing is built on sort of the autonomous enterprise, autonomous capabilities. Everything is sort of self healing. Self funding are not sorry, self healing and self aware that continually moves it forward. So the goal with that is, is if you have something that takes mundane tasks back to that, you have people that are no longer doing those capabilities today. So the underpinning of that, and without allows you to do is actually take that business case, and you reduce that because you're no longer having a bunch of people do things that no value add. Those people can actually move on to do back to the innovation and doing those higher level. >>So the business case is really about primarily, I would imagine about labor costs, right? I t labor costs were very labor intensive. We're doing stuff that doesn't necessarily add differentiation and value to the business. You're shifting that other tasks, right? >>Yeah, So the big components are really the overall cost of the infrastructure, what it takes to maintain the infrastructure, and that's broken up into kind of two components. One of it is typical power, physical location of building all those kinds of things and then the people to do the automation that take care of that right at the lower level. The third level is, as you continue to sort of process and automation going forward, that people capability that actually maintains the applications becomes easier because you can actually extend those capabilities out into the application, then require fewer people actually do the typical day to day things. Whether it's DB is like that, so it kind of becomes a continuous stream. There's various elements of the business case. You could sort of start with just the pure infrastructure cost and then get some of the process and automation is going forward and then actually go that even further, right? And then as organizations, a c i 01 of the questions I always have is where do you want to end on this? And they say, What are you talking about, right? It's really never done. You're on. If you're on a journey on a transformation, I go. This is the big boy Big girl conversation, right? Do you want to have an organization that actually, it stays the same from a head count standpoint? Are you trying to look to a partner to do that? Were you trying to get their operating model? What is your company trying to get you to look at, right? Because all those inflection points takes a different steps in the cloud journey. So as an advisor, as a trusted advisor, I asked those there was 1/2 a dozen or so questions. I would kind of walk through the organization through on sort of a cloud strategy, and I'll pick the path that kind of work with them. If they want to go to a manage service provider at the end, we would actually prepare someone, either bring the partner in or have associated partner. We've heard it off to, but we put the right pieces in place to make sure that that business case, >>that's interest. That's a really important point because a lot of customers would say, I don't want to reduce headcount. I want O. I'm starving for people. I want to train people Some companies may want to say Okay, I got to reduce headcount. It's a mandate, but most least in these boom times are saying I want to shift. So my point to the business cases, If you're not gonna cut people, then you have to have those people be more productive. And the example that you gave in terms of making the application developers more productive is relevant. And I won't explain this. Is that, for example, very simple example. You're I'm inferring you're gonna be able to compress the time to value, reduce lower your break, even accelerate the time to positive cash flow, if you will. That's an example of a value component to the business and part of the business case that people look at that and >>really, that's what it is. Definitely the business case and when he called. You know, when you get your rate of return, right? Um, the more that we can compress that. And I would say back to the conversation we had earlier about elevate and some of the partnerships we have with Deloitte around that a lot of that is to actually come up with enough capabilities that we can actually take the business case and actually reduce that have special, other things we can do for our customers around financing and things like that to make it easier for them, Right? We have options to make customers and actually help that business case. Some of the business cases we've seen are entire i t organizations saving 30 plus percent. Well, if you multiply that on a, you know, a large fortune 100 that may have a $1,000,000,000 budget, that's real money. >>Yeah, and okay, yes, no doubt. But then when you translate that into the business impact like you talked about the i t impact. But if you look at the business impact now, it becomes telephone numbers and actually see if it was often times just don't even believe it. But it's true, because if you can make the entire organization just, you know, 1/2 a percentage point more productive and 100,000 employees. I mean, that is that overwhelms. Actually, the i t business case. >>Yeah, and that's where that back to the sort of the steps in the business case is on the business and application side is making those folks actually more productive in the business case in saving them and adding, you know, whether it's a financial services, you're getting a new application out to market that actually generates revenue. Right? So that's sort of the trickle effect. When I look at it, I definitely look at it from a I see all the way through business. I'm a technically a business architect. That does. I t pretty damn good, >>Yeah, enables that sort of. Absolutely. How do you let's talk about this notion of continuous improvement? How are people thinking about that? Because you're talking a lot about just sort of self funding and and self progressing in a sort of organic entity that you're describing. How are people thinking about that? >>Yeah, I would say there's a little bit older map, right? But I would say that the goals what we're trying to embed back to the operating model we want to really embed is sort of a concept of a cloud center of excellence, and as part of that at the end, you have to have a set of functionality of folks that's constantly looking at the applications and or services of the different cloud providers that capability we have across the board. Everyone's got a multi cloud environment, right? How do they take those services They're probably already paying for anyways. And as the components get released, how can you continually put little pieces in there and do little micro releases? Quarterly aren't started weekly every month versus a big bang twice a year, right? Those little automation piece is continually add innovation in smaller chunks, and that's really the goal of cloud computing. And, you know, as you can actually break it up. It's no longer the big bang theory, right? I love that concept in vetting that whether you actually have a partner with some of the stuff that we're doing that actually in bed, what we call like a date to services, that that's what it is, is to support them but constantly look for different ways to include capabilities that were just released to add value on an ongoing basis. You don't have to go. Hey, great. That capability came out. It will be a next year's release. No, it could be next week, next month. >>So the outcome should be should be dramatically lowering costs, really accelerating your time to value. It really is what you're describing and we've been talking about in terms of the autonomous enterprise. It's really a prerequisite for scale, isn't it? >>It is. Absolutely >>thanks so much for coming on the Cube. Really appreciate it. Good stuff. >>Thank you very much. >>Thank you for watching. Be right back with our next guest. You're watching the Cube? We're here in Chicago covering the reverse of Oracle Consulting. I'm Dave Volante. Right back.