>> Announcer: Live, from Las Vegas, it's theCube! Covering NAB 2017. Brought to you by HGST. >> Hey welcome back everybody, Jeff Frick here with theCUBE. We're at NAB 2017, a hundred thousand people. The Las Vegas Convention Center is packed. And it's everything you could ever want to get involved in video and media, and it' pretty crazy exciting. I hope, trying and get the guys from spending all of our budget money next year on new cameras. But, we're excited to have Brian Raleigh on. He's a VP post-production and production business intelligence at ABC Studios. Welcome. >> Thank you, I'm excited to be here, as well. >> Absolutely, so first impressions of the show. You said you haven't been that many times. As you walk around, what strikes you? >> Yeah, this is only my second time here. I will say I've seen plenty of booths that have the words Ingestion, Transcode, Archival, Distribution, there certainly is a lot of distribution out here, the broadcasting convention. >> Jeff: Right. >> Which makes sense. >> But you're involved in that pesky little process between what comes off the camera and what goes out to distribution. >> Yeah, exactly. We're prior to broadcast, right. So my world is really production and post-production, and the production management systems we use within them. >> Right. So love to hear, kind of, how is that world evolved? It used to be you had an artist on a machine, with local files doing the editing and all this stuff, and clearly that world is long, long gone. >> Yeah, most of our production and post-production workflow is in the cloud. >> Jeff: Right. >> Or however you want to call it. And very recently, what we've done, is we've tried to move on from the kind of, email-based world and saving everything on your desktop-based world, a lot of it revolves around the push to move off of that revolves around security. >> Jeff: Right. >> Efficiencies, better distribution, better control over who has access to what. So my role is really to introduce digital production management systems. Digital daily systems, digital purchase order systems. Digital scheduling systems. >> Jeff: Right. >> Kind of take us into more of like a wholistic, one-way world that covers both the production side as well as the studio side. >> And where would you say you are on that journey? >> Year one, is what I would say. >> Year one. Early in year one, early days. >> So our department is called, the Production Business Intelligence Department, but that's really, I would say we have more enthusiasm for business intelligence than we do have knowledge of business intelligence. >> Jeff: Right, right. >> So phase one is really getting our systems rolled out. To get these digital systems in use, with 100% adoption, on all of our shows, and all of our studio and network users. Once we have that piece done, we can actually start to collect the data and make some use out of it. >> Right, right And how has kind of the efficiency in the workflow, I know you're still early days, how do you anticipate it really being impacted by moving to more cloud-based systems versus local, on your hard drive controlled? >> Yeah, so security is a hundred times better than it was before, right? Just because everything is hidden behind a password now. Access is much more controlled. Efficiency has increased many times over, as well. I'll say that we project, over the course of our first year with these systems, we will have reduced our email count, just within the studio, by 650,000. >> Well, who doesn't love that. >> Right, exactly. I keep telling them it's good. >> Jeff: Golly. >> Everything is more searchable now. >> Jeff: Right. >> Higher quality. We're getting things faster. Our PAs are no longer burning thousands of DVDs and distributing them all across town, so it's improved our world in many ways. >> Right, and how do you kind of boil that ocean. Is it kind of by department, is it by show, is it one little slice kind of spread really, really wide? I mean, that's a big roll out. You guys are a huge studio. >> When the department, that used to be called the Production Technology Department, and when it started eight, nine years ago, the approach was really like, let's build everything in house, and try to piece it out one by one. What we have learned is, that doesn't really work. It's really difficult to get adoption and it was going to take a huge workforce in order to build what we needed. >> Jeff: Right. >> So we started to go with the Best in Breed approach, with these applications. And what came with them was 24/7 support and kind of white glove training and admin services. >> Jeff: Right. >> So because I have a really small centralized team, they can focus on just the training administration. And we have really this third-party service team that comes with each one of these production management systems that we use. >> Right. >> So we've been able boil the ocean because we have a lot of help. >> Right. And the other nice thing is just because of the nature of the studios, teams kind of form around shows, right? So now you can onboard a new team around your infrastructure piece. They do the show for one season, two seasons, however many season. >> Brian: Yeah. >> Then they go away. >> Yeah, what's been really good is even though it's a huge training endeavor, for sure, with our production teams, because we have something like, 8,000 people on our freelance production teams at any time. And they're a transient workforce. They go from studio to studio and show to show. >> Jeff: Right. >> But I think something like 60 to 70% of the people that we hire, we've hired before. >> Jeff: Okay. >> So the good news is once we've trained them once, there's a good likelihood that we won't need to train them again. >> Right. And, so there's kind of the application centric piece of it, and then there's kind of the infrastructure piece behind the application. I mean, good news is, you didn't have it eight years ago, but I mean the development's on the infrastructure side around storage and bandwidth and CPU. Huge change from where it was before. I mean, could you even have done what you were hoping to do eight years, kind of compared to where you are today? No, I don't think, the companies just didn't exist at that point. That's right. So the companies weren't there because the technology wasn't there. >> Jeff: Right. >> Now they've both kind of aligned, and aligned at a good time, right? When I think people are ready to hear that we need to modernize the studio. There's so much competition out there, that we need to make sure that we're doing things as good or better than everyone else. >> Right. And you said security a bunch of times. >> Brian: Yeah. >> So was the security, was it a security hole? Was it people forgetting their laptop at the coffee shop? >> Brian: Yeah. >> I mean what were some of your main security concerns that you've now been able to address? >> It's interesting. So we're ABC Studios, but we do a lot of co-productions with Marvel Studios. And Marvel Studios culture is very security centric. And because we worked so hand-in-hand with them, we've been very cognizant of the security abilities of these applications as we bring them in. So I will say, we didn't have any big outbreaks, right? We didn't have, we had shows like Lost, that people were really concerned about. >> Right. >> Scripts getting out, but more recently, we haven't had these huge high security titles, but now that Marvel is onboard, it's made us very security conscious. >> Okay. And it's more early leaks that people getting access to the assets-- >> Yeah, mostly we're worried about scripts. >> Right, right. Really, mostly scripts, as opposed to images, or-- >> Well, you're right. Scripts and rough cuts, I would say. >> Right, right, right. Okay, so that's kind of the bat, the stick. In terms of a carrot, what were some of the benefits that you hoped to achieve or you are really starting to achieve on the carrot side of the equation? >> Well, so we're still in phase one, as I said, in kind of rolling out these applications. >> Right, we'll let you talk about this in private. We will not hold you to whatever you say that's being, actually in production. >> The carrot, is so we're now called production business intelligence, but we don't have much intelligence, at this point, so, now that we're seeing some light at the end of the tunnel, in terms of rolling out these systems, the hope is, the carrot is, we're going to be able to find some really great business insights from the data we collect. The kinds of questions we want to be able to answer are things like, which of our directors that are hire are costing us the most in production staff overtime. When an editor's cut delivers, and it delivers 11 minutes long, how does that correlate with the length and complexity of the script? You start to learn these things, and the hope will be that what was going to be a nine-day production schedule, we really can do it in eight. >> Jeff: Right. >> We'll have the data, not just anecdotally, but like real data to back that up. >> Right. Now I wonder, and don't tell me if you can't, but within kind of the whole budget of a movie, production, post-production, distribution, promotion, what piece is post-production? I mean, I just think of the complexity of it. It can be just a sinkhole, if it's not managed well. >> Yeah, as a part of the production, well it depends on the show, right? >> Right, right, you know, kind of a general-- >> The variance is in visual effects, right, but I would say 10 to 20% of the budget is post-production. >> Jeff: Okay. >> And the systems piece of it is much, much less. >> Jeff: Right, right. >> One, maybe one percent. >> Right. So you could make a pretty significant impact >> Yeah. >> On the budget by being more efficient. >> For sure. >> And leveraging that intelligence. >> Well, below the line, which is what these systems really do impact, so not just post-production but production, as well as two-thirds of the budget. So absolutely, I mean that's many millions of dollars. >> Right, right. Okay, so as you look forward, have you got any insights that are kind of helping you drive to the next place, or are you just kind of working down a road map as you look at 2017, I know we're a third of the way through, which I find really hard to believe. What's kind of on your agenda, what's next, where are you going next? >> I'd say we're still working down the roadmap. We have, like I said, we have documents figured out, we have digital dailies figured out, we have production purchase orders figured out, now we're going to start looking at asset management. And we're going to start looking at scheduling. In hopes that ultimately we can really, I guess the real vision here is that we can have kind of a production ratio, right? We can start to rate our productions against each other based on all of this information that we have, but it requires some additional systems first. >> All right, Brian. Well, I wish you, at least you've got 650,000 less emails. >> I know it's a good start. >> I mean that should free up a ton of time. >> Brian: Yes. >> That's a great start. All right, he's Brian Raleigh from ABC, I'm Jeff Frick. Again, thanks for stopping by. >> Brian: Thank you. >> All right, you're watching theCUBE, from NAB 2017. Thanks for watching. (techno music)

>> Hi, I'm Natalie Ehrlich and welcome to the AWS startup showcase presented by The Cube. We have an amazing lineup of great guests who will share their insights on the latest innovations and solutions and leveraging cloud scale data in AI, security and life sciences. And now we're joined by the co-founders and co-CEOs of The Cube, Dave Vellante and John Furrier. Thank you gentlemen for joining me. >> Hey Natalie. >> Hey Natalie. >> How are you doing. Hey John. >> Well, I'd love to get your insights here, let's kick it off and what are you looking forward to. >> Dave, I think one of the things that we've been doing on the cube for 11 years is looking at the signal in the marketplace. I wanted to focus on this because AI is cutting across all industries. So we're seeing that with cybersecurity and life sciences, it's the first time we've had a life sciences track in the showcase, which is amazing because it shows that growth of the cloud scale. So I'm super excited by that. And I think that's going to showcase some new business models and of course the keynotes Ali Ghodsi, who's the CEO Data bricks pushing a billion dollars in revenue, clear validation that startups can go from zero to a billion dollars in revenues. So that should be really interesting. And of course the top venture capitalists coming in to talk about what the enterprise dynamics are all about. And what about you, Dave? >> You know, I thought it was an interesting mix and choice of startups. When you think about, you know, AI security and healthcare, and I've been thinking about that. Healthcare is the perfect industry, it is ripe for disruption. If you think about healthcare, you know, we all complain how expensive it is not transparent. There's a lot of discussion about, you know, can everybody have equal access that certainly with COVID the staff is burned out. There's a real divergence and diversity of the quality of healthcare and you know, it all results in patients not being happy, and I mean, if you had to do an NPS score on the patients and healthcare will be pretty low, John, you know. So when I think about, you know, AI and security in the context of healthcare in cloud, I ask questions like when are machines going to be able to better meet or make better diagnoses than doctors? And that's starting. I mean, it's really in assistance putting into play today. But I think when you think about cheaper and more accurate image analysis, when you think about the overall patient experience and trust and personalized medicine, self-service, you know, remote medicine that we've seen during the COVID pandemic, disease tracking, language translation, I mean, there are so many things where the cloud and data, and then it can help. And then at the end of it, it's all about, okay, how do I authenticate? How do I deal with privacy and personal information and tamper resistance? And that's where the security play comes in. So it's a very interesting mix of startups. I think that I'm really looking forward to hearing from... >> You know Natalie one of the things we talked about, some of these companies, Dave, we've talked a lot of these companies and to me the business model innovations that are coming out of two factors, the pandemic is kind of coming to an end so that accelerated and really showed who had the right stuff in my opinion. So you were either on the wrong side or right side of history when it comes to the pandemic and as we look back, as we come out of it with clear growth in certain companies and certain companies that adopted let's say cloud. And the other one is cloud scale. So the focus of these startup showcases is really to focus on how startups can align with the enterprise buyers and create the new kind of refactoring business models to go from, you know, a re-pivot or refactoring to more value. And the other thing that's interesting is that the business model isn't just for the good guys. If you look at say ransomware, for instance, the business model of hackers is gone completely amazing too. They're kicking it but in terms of revenue, they have their own they're well-funded machines on how to extort cash from companies. So there's a lot of security issues around the business model as well. So to me, the business model innovation with cloud-scale tech, with the pandemic forcing function, you've seen a lot of new kinds of decision-making in enterprises. You seeing how enterprise buyers are changing their decision criteria, and frankly their existing suppliers. So if you're an old guard supplier, you're going to be potentially out because if you didn't deliver during the pandemic, this is the issue that everyone's talking about. And it's kind of not publicized in the press very much, but this is actually happening. >> Well thank you both very much for joining me to kick off our AWS startup showcase. Now we're going to go to our very special guest Ali Ghodsi and John Furrier will seat with him for a fireside chat and Dave and I will see you on the other side. >> Okay, Ali great to see you. Thanks for coming on our AWS startup showcase, our second edition, second batch, season two, whatever we want to call it it's our second version of this new series where we feature, you know, the hottest startups coming out of the AWS ecosystem. And you're one of them, I've been there, but you're not a startup anymore, you're here pushing serious success on the revenue side and company. Congratulations and great to see you. >> Likewise. Thank you so much, good to see you again. >> You know I remember the first time we chatted on The Cube, you weren't really doing much software revenue, you were really talking about the new revolution in data. And you were all in on cloud. And I will say that from day one, you were always adamant that it was cloud cloud scale before anyone was really talking about it. And at that time it was on premises with Hadoop and those kinds of things. You saw that early. I remember that conversation, boy, that bet paid out great. So congratulations. >> Thank you so much. >> So I've got to ask you to jump right in. Enterprises are making decisions differently now and you are an example of that company that has gone from literally zero software sales to pushing a billion dollars as it's being reported. Certainly the success of Data bricks has been written about, but what's not written about is the success of how you guys align with the changing criteria for the enterprise customer. Take us through that and these companies here are aligning the same thing and enterprises want to change. They want to be in the right side of history. What's the success formula? >> Yeah. I mean, basically what we always did was look a few years out, the how can we help these enterprises, future proof, what they're trying to achieve, right? They have, you know, 30 years of legacy software and, you know baggage, and they have compliance and regulations, how do we help them move to the future? So we try to identify those kinds of secular trends that we think are going to maybe you see them a little bit right now, cloud was one of them, but it gets more and more and more. So we identified those and there were sort of three or four of those that we kind of latched onto. And then every year the passes, we're a little bit more right. Cause it's a secular trend in the market. And then eventually, it becomes a force that you can't kind of fight anymore. >> Yeah. And I just want to put a plug for your clubhouse talks with Andreessen Horowitz. You're always on clubhouse talking about, you know, I won't say the killer instinct, but being a CEO in a time where there's so much change going on, you're constantly under pressure. It's a lonely job at the top, I know that, but you've made some good calls. What was some of the key moments that you can point to, where you were like, okay, the wave is coming in now, we'd better get on it. What were some of those key decisions? Cause a lot of these startups want to be in your position, and a lot of buyers want to take advantage of the technology that's coming. They got to figure it out. What was some of those key inflection points for you? >> So if you're just listening to what everybody's saying, you're going to miss those trends. So then you're just going with the stream. So, Juan you mentioned that cloud. Cloud was a thing at the time, we thought it's going to be the thing that takes over everything. Today it's actually multi-cloud. So multi-cloud is a thing, it's more and more people are thinking, wow, I'm paying a lot's to the cloud vendors, do I want to buy more from them or do I want to have some optionality? So that's one. Two, open. They're worried about lock-in, you know, lock-in has happened for many, many decades. So they want open architectures, open source, open standards. So that's the second one that we bet on. The third one, which you know, initially wasn't sort of super obvious was AI and machine learning. Now it's super obvious, everybody's talking about it. But when we started, it was kind of called artificial intelligence referred to robotics, and machine learning wasn't a term that people really knew about. Today, it's sort of, everybody's doing machine learning and AI. So betting on those future trends, those secular trends as we call them super critical. >> And one of the things that I want to get your thoughts on is this idea of re-platforming versus refactoring. You see a lot being talked about in some of these, what does that even mean? It's people trying to figure that out. Re-platforming I get the cloud scale. But as you look at the cloud benefits, what do you say to customers out there and enterprises that are trying to use the benefits of the cloud? Say data for instance, in the middle of how could they be thinking about refactoring? And how can they make a better selection on suppliers? I mean, how do you know it used to be RFP, you deliver these speeds and feeds and you get selected. Now I think there's a little bit different science and methodology behind it. What's your thoughts on this refactoring as a buyer? What do I got to do? >> Well, I mean let's start with you said RFP and so on. Times have changed. Back in the day, you had to kind of sign up for something and then much later you're going to get it. So then you have to go through this arduous process. In the cloud, would pay us to go model elasticity and so on. You can kind of try your way to it. You can try before you buy. And you can use more and more. You can gradually, you don't need to go in all in and you know, say we commit to 50,000,000 and six months later to find out that wow, this stuff has got shelf where it doesn't work. So that's one thing that has changed it's beneficial. But the second thing is, don't just mimic what you had on prem in the cloud. So that's what this refactoring is about. If you had, you know, Hadoop data lake, now you're just going to have an S3 data lake. If you had an on-prem data warehouse now you just going to have a cloud data warehouse. You're just repeating what you did on prem in the cloud, architected for the future. And you know, for us, the most important thing that we say is that this lake house paradigm is a cloud native way of organizing your data. That's different from how you would do things on premises. So think through what's the right way of doing it in the cloud. Don't just try to copy paste what you had on premises in the cloud. >> It's interesting one of the things that we're observing and I'd love to get your reaction to this. Dave a lot** and I have been reporting on it is, two personas in the enterprise are changing their organization. One is I call IT ops or there's an SRE role developing. And the data teams are being dismantled and being kind of sprinkled through into other teams is this notion of data, pipelining being part of workflows, not just the department. Are you seeing organizational shifts in how people are organizing their resources, their human resources to take advantage of say that the data problems that are need to being solved with machine learning and whatnot and cloud-scale? >> Yeah, absolutely. So you're right. SRE became a thing, lots of DevOps people. It was because when the cloud vendors launched their infrastructure as a service to stitch all these things together and get it all working you needed a lot of devOps people. But now things are maturing. So, you know, with vendors like Data bricks and other multi-cloud vendors, you can actually get much higher level services where you don't need to necessarily have lots of lots of DevOps people that are themselves trying to stitch together lots of services to make this work. So that's one trend. But secondly, you're seeing more data teams being sort of completely ubiquitous in these organizations. Before it used to be you have one data team and then we'll have data and AI and we'll be done. ' It's a one and done. But that's not how it works. That's not how Google, Facebook, Twitter did it, they had data throughout the organization. Every BU was empowered. It's sales, it's marketing, it's finance, it's engineering. So how do you embed all those data teams and make them actually run fast? And you know, there's this concept of a data mesh which is super important where you can actually decentralize and enable all these teams to focus on their domains and run super fast. And that's really enabled by this Lake house paradigm in the cloud that we're talking about. Where you're open, you're basing it on open standards. You have flexibility in the data types and how they're going to store their data. So you kind of provide a lot of that flexibility, but at the same time, you have sort of centralized governance for it. So absolutely things are changing in the market. >> Well, you're just the professor, the masterclass right here is amazing. Thanks for sharing that insight. You're always got to go out of date and that's why we have you on here. You're amazing, great resource for the community. Ransomware is a huge problem, it's now the government's focus. We're being attacked and we don't know where it's coming from. This business models around cyber that's expanding rapidly. There's real revenue behind it. There's a data problem. It's not just a security problem. So one of the themes in all of these startup showcases is data is ubiquitous in the value propositions. One of them is ransomware. What's your thoughts on ransomware? Is it a data problem? Does cloud help? Some are saying that cloud's got better security with ransomware, then say on premise. What's your vision of how you see this ransomware problem being addressed besides the government taking over? >> Yeah, that's a great question. Let me start by saying, you know, we're a data company, right? And if you say you're a data company, you might as well just said, we're a privacy company, right? It's like some people say, well, what do you think about privacy? Do you guys even do privacy? We're a data company. So yeah, we're a privacy company as well. Like you can't talk about data without talking about privacy. With every customer, with every enterprise. So that's obviously top of mind for us. I do think that in the cloud, security is much better because, you know, vendors like us, we're investing so much resources into security and making sure that we harden the infrastructure and, you know, by actually having all of this infrastructure, we can monitor it, detect if something is, you know, an attack is happening, and we can immediately sort of stop it. So that's different from when it's on prem, you have kind of like the separated duties where the software vendor, which would have been us, doesn't really see what's happening in the data center. So, you know, there's an IT team that didn't develop the software is responsible for the security. So I think things are much better now. I think we're much better set up, but of course, things like cryptocurrencies and so on are making it easier for people to sort of hide. There decentralized networks. So, you know, the attackers are getting more and more sophisticated as well. So that's definitely something that's super important. It's super top of mind. We're all investing heavily into security and privacy because, you know, that's going to be super critical going forward. >> Yeah, we got to move that red line, and figure that out and get more intelligence. Decentralized trends not going away it's going to be more of that, less of the centralized. But centralized does come into play with data. It's a mix, it's not mutually exclusive. And I'll get your thoughts on this. Architectural question with, you know, 5G and the edge coming. Amazon's got that outpost stringent, the wavelength, you're seeing mobile world Congress coming up in this month. The focus on processing data at the edge is a huge issue. And enterprises are now going to be commercial part of that. So architecture decisions are being made in enterprises right now. And this is a big issue. So you mentioned multi-cloud, so tools versus platforms. Now I'm an enterprise buyer and there's no more RFPs. I got all this new choices for startups and growing companies to choose from that are cloud native. I got all kinds of new challenges and opportunities. How do I build my architecture so I don't foreclose a future opportunity. >> Yeah, as I said, look, you're actually right. Cloud is becoming even more and more something that everybody's adopting, but at the same time, there is this thing that the edge is also more and more important. And the connectivity between those two and making sure that you can really do that efficiently. My ask from enterprises, and I think this is top of mind for all the enterprise architects is, choose open because that way you can avoid locking yourself in. So that's one thing that's really, really important. In the past, you know, all these vendors that locked you in, and then you try to move off of them, they were highly innovative back in the day. In the 80's and the 90's, there were the best companies. You gave them all your data and it was fantastic. But then because you were locked in, they didn't need to innovate anymore. And you know, they focused on margins instead. And then over time, the innovation stopped and now you were kind of locked in. So I think openness is really important. I think preserving optionality with multi-cloud because we see the different clouds have different strengths and weaknesses and it changes over time. All right. Early on AWS was the only game that either showed up with much better security, active directory, and so on. Now Google with AI capabilities, which one's going to win, which one's going to be better. Actually, probably all three are going to be around. So having that optionality that you can pick between the three and then artificial intelligence. I think that's going to be the key to the future. You know, you asked about security earlier. That's how people detect zero day attacks, right? You ask about the edge, same thing there, that's where the predictions are going to happen. So make sure that you invest in AI and artificial intelligence very early on because it's not something you can just bolt on later on and have a little data team somewhere that then now you have AI and it's one and done. >> All right. Great insight. I've got to ask you, the folks may or may not know, but you're a professor at Berkeley as well, done a lot of great work. That's where you kind of came out of when Data bricks was formed. And the Berkeley basically was it invented distributed computing back in the 80's. I remember I was breaking in when Unix was proprietary, when software wasn't open you actually had the deal that under the table to get code. Now it's all open. Isn't the internet now with distributed computing and how interconnects are happening. I mean, the internet didn't break during the pandemic, which proves the benefit of the internet. And that's a positive. But as you start seeing edge, it's essentially distributed computing. So I got to ask you from a computer science standpoint. What do you see as the key learnings or connect the dots for how this distributed model will work? I see hybrids clearly, hybrid cloud is clearly the operating model but if you take it to the next level of distributed computing, what are some of the key things that you look for in the next five years as this starts to be completely interoperable, obviously software is going to drive a lot of it. What's your vision on that? >> Yeah, I mean, you know, so Berkeley, you're right for the gigs, you know, there was a now project 20, 30 years ago that basically is how we do things. There was a project on how you search in the very early on with Inktomi that became how Google and everybody else to search today. So workday was super, super early, sometimes way too early. And that was actually the mistake. Was that they were so early that people said that that stuff doesn't work. And then 20 years later you were invented. So I think 2009, Berkeley published just above the clouds saying the cloud is the future. At that time, most industry leaders said, that's just, you know, that doesn't work. Today, recently they published a research paper called, Sky Computing. So sky computing is what you get above the clouds, right? So we have the cloud as the future, the next level after that is the sky. That's one on top of them. That's what multi-cloud is. So that's a lot of the research at Berkeley, you know, into distributed systems labs is about this. And we're excited about that. Then we're one of the sky computing vendors out there. So I think you're going to see much more innovation happening at the sky level than at the compute level where you needed all those DevOps and SRE people to like, you know, build everything manually themselves. I can just see the memes now coming Ali, sky net, star track. You've got space too, by the way, space is another frontier that is seeing a lot of action going on because now the surface area of data with satellites is huge. So again, I know you guys are doing a lot of business with folks in that vertical where you starting to see real time data acquisition coming from these satellites. What's your take on the whole space as the, not the final frontier, but certainly as a new congested and contested space for, for data? >> Well, I mean, as a data vendor, we see a lot of, you know, alternative data sources coming in and people aren't using machine learning< AI to eat out signal out of the, you know, massive amounts of imagery that's coming out of these satellites. So that's actually a pretty common in FinTech, which is a vertical for us. And also sort of in the public sector, lots of, lots of, lots of satellites, imagery data that's coming. And these are massive volumes. I mean, it's like huge data sets and it's a super, super exciting what they can do. Like, you know, extracting signal from the satellite imagery is, and you know, being able to handle that amount of data, it's a challenge for all the companies that we work with. So we're excited about that too. I mean, definitely that's a trend that's going to continue. >> All right. I'm super excited for you. And thanks for coming on The Cube here for our keynote. I got to ask you a final question. As you think about the future, I see your company has achieved great success in a very short time, and again, you guys done the work, I've been following your company as you know. We've been been breaking that Data bricks story for a long time. I've been excited by it, but now what's changed. You got to start thinking about the next 20 miles stair when you look at, you know, the sky computing, you're thinking about these new architectures. As the CEO, your job is to one, not run out of money which you don't have to worry about that anymore, so hiring. And then, you got to figure out that next 20 miles stair as a company. What's that going on in your mind? Take us through your mindset of what's next. And what do you see out in that landscape? >> Yeah, so what I mentioned around Sky company optionality around multi-cloud, you're going to see a lot of capabilities around that. Like how do you get multi-cloud disaster recovery? How do you leverage the best of all the clouds while at the same time not having to just pick one? So there's a lot of innovation there that, you know, we haven't announced yet, but you're going to see a lot of it over the next many years. Things that you can do when you have the optionality across the different parts. And the second thing that's really exciting for us is bringing AI to the masses. Democratizing data and AI. So how can you actually apply machine learning to machine learning? How can you automate machine learning? Today machine learning is still quite complicated and it's pretty advanced. It's not going to be that way 10 years from now. It's going to be very simple. Everybody's going to have it at their fingertips. So how do we apply machine learning to machine learning? It's called auto ML, automatic, you know, machine learning. So that's an area, and that's not something that can be done with, right? But the goal is to eventually be able to automate a way the whole machine learning engineer and the machine learning data scientist altogether. >> You know it's really fun and talking with you is that, you know, for years we've been talking about this inside the ropes, inside the industry, around the future. Now people starting to get some visibility, the pandemics forced that. You seeing the bad projects being exposed. It's like the tide pulled out and you see all the scabs and bad projects that were justified old guard technologies. If you get it right you're on a good wave. And this is clearly what we're seeing. And you guys example of that. So as enterprises realize this, that they're going to have to look double down on the right projects and probably trash the bad projects, new criteria, how should people be thinking about buying? Because again, we talked about the RFP before. I want to kind of circle back because this is something that people are trying to figure out. You seeing, you know, organic, you come in freemium models as cloud scale becomes the advantage in the lock-in frankly seems to be the value proposition. The more value you provide, the more lock-in you get. Which sounds like that's the way it should be versus proprietary, you know, protocols. The protocol is value. How should enterprises organize their teams? Is it end to end workflows? Is it, and how should they evaluate the criteria for these technologies that they want to buy? >> Yeah, that's a great question. So I, you know, it's very simple, try to future proof your decision-making. Make sure that whatever you're doing is not blocking your in. So whatever decision you're making, what if the world changes in five years, make sure that if you making a mistake now, that's not going to bite you in about five years later. So how do you do that? Well, open source is great. If you're leveraging open-source, you can try it out already. You don't even need to talk to any vendor. Your teams can already download it and try it out and get some value out of it. If you're in the cloud, this pay as you go models, you don't have to do a big RFP and commit big. You can try it, pay the vendor, pay as you go, $10, $15. It doesn't need to be a million dollar contract and slowly grow as you're providing value. And then make sure that you're not just locking yourself in to one cloud or, you know, one particular vendor. As much as possible preserve your optionality because then that's not a one-way door. If it turns out later you want to do something else, you can, you know, pick other things as well. You're not locked in. So that's what I would say. Keep that top of mind that you're not locking yourself into a particular decision that you made today, that you might regret in five years. >> I really appreciate you coming on and sharing your with our community and The Cube. And as always great to see you. I really enjoy your clubhouse talks, and I really appreciate how you give back to the community. And I want to thank you for coming on and taking the time with us today. >> Thanks John, always appreciate talking to you. >> Okay Ali Ghodsi, CEO of Data bricks, a success story that proves the validation of cloud scale, open and create value, values the new lock-in. So Natalie, back to you for continuing coverage. >> That was a terrific interview John, but I'd love to get Dave's insights first. What were your takeaways, Dave? >> Well, if we have more time I'll tell you how Data bricks got to where they are today, but I'll say this, the most important thing to me that Allie said was he conveyed a very clear understanding of what data companies are outright and are getting ready. Talked about four things. There's not one data team, there's many data teams. And he talked about data is decentralized, and data has to have context and that context lives in the business. He said, look, think about it. The way that the data companies would get it right, they get data in teams and sales and marketing and finance and engineering. They all have their own data and data teams. And he referred to that as a data mesh. That's a term that is your mock, the Gany coined and the warehouse of the data lake it's merely a node in that global message. It meshes discoverable, he talked about federated governance, and Data bricks, they're breaking the model of shoving everything into a single repository and trying to make that the so-called single version of the truth. Rather what they're doing, which is right on is putting data in the hands of the business owners. And that's how true data companies do. And the last thing you talked about with sky computing, which I loved, it's that future layer, we talked about multi-cloud a lot that abstracts the underlying complexity of the technical details of the cloud and creates additional value on top. I always say that the cloud players like Amazon have given the gift to the world of 100 billion dollars a year they spend in CapEx. Thank you. Now we're going to innovate on top of it. Yeah. And I think the refactoring... >> Hope by John. >> That was great insight and I totally agree. The refactoring piece too was key, he brought that home. But to me, I think Data bricks that Ali shared there and why he's been open and sharing a lot of his insights and the community. But what he's not saying, cause he's humble and polite is they cracked the code on the enterprise, Dave. And to Dave's points exactly reason why they did it, they saw an opportunity to make it easier, at that time had dupe was the rage, and they just made it easier. They was smart, they made good bets, they had a good formula and they cracked the code with the enterprise. They brought it in and they brought value. And see that's the key to the cloud as Dave pointed out. You get replatform with the cloud, then you refactor. And I think he pointed out the multi-cloud and that really kind of teases out the whole future and landscape, which is essentially distributed computing. And I think, you know, companies are starting to figure that out with hybrid and this on premises and now super edge I call it, with 5G coming. So it's just pretty incredible. >> Yeah. Data bricks, IPO is coming and people should know. I mean, what everybody, they created spark as you know John and everybody thought they were going to do is mimic red hat and sell subscriptions and support. They didn't, they developed a managed service and they embedded AI tools to simplify data science. So to your point, enterprises could buy instead of build, we know this. Enterprises will spend money to make things simpler. They don't have the resources, and so this was what they got right was really embedding that, making a building a managed service, not mimicking the kind of the red hat model, but actually creating a new value layer there. And that's big part of their success. >> If I could just add one thing Natalie to that Dave saying is really right on. And as an enterprise buyer, if we go the other side of the equation, it used to be that you had to be a known company, get PR, you fill out RFPs, you had to meet all the speeds. It's like going to the airport and get a swab test, and get a COVID test and all kinds of mechanisms to like block you and filter you. Most of the biggest success stories that have created the most value for enterprises have been the companies that nobody's understood. And Andy Jazz's famous quote of, you know, being misunderstood is actually a good thing. Data bricks was very misunderstood at the beginning and no one kind of knew who they were but they did it right. And so the enterprise buyers out there, don't be afraid to test the startups because you know the next Data bricks is out there. And I think that's where I see the psychology changing from the old IT buyers, Dave. It's like, okay, let's let's test this company. And there's plenty of ways to do that. He illuminated those premium, small pilots, you don't need to go on these big things. So I think that is going to be a shift in how companies going to evaluate startups. >> Yeah. Think about it this way. Why should the large banks and insurance companies and big manufacturers and pharma companies, governments, why should they burn resources managing containers and figuring out data science tools if they can just tap into solutions like Data bricks which is an AI platform in the cloud and let the experts manage all that stuff. Think about how much money in time that saves enterprises. >> Yeah, I mean, we've got 15 companies here we're showcasing this batch and this season if you call it. That episode we are going to call it? They're awesome. Right? And the next 15 will be the same. And these companies could be the next billion dollar revenue generator because the cloud enables that day. I think that's the exciting part. >> Well thank you both so much for these insights. Really appreciate it. AWS startup showcase highlights the innovation that helps startups succeed. And no one knows that better than our very next guest, Jeff Barr. Welcome to the show and I will send this interview now to Dave and John and see you just in the bit. >> Okay, hey Jeff, great to see you. Thanks for coming on again. >> Great to be back. >> So this is a regular community segment with Jeff Barr who's a legend in the industry. Everyone knows your name. Everyone knows that. Congratulations on your recent blog posts we have reading. Tons of news, I want to get your update because 5G has been all over the news, mobile world congress is right around the corner. I know Bill Vass was a keynote out there, virtual keynote. There's a lot of Amazon discussion around the edge with wavelength. Specifically, this is the outpost piece. And I know there is news I want to get to, but the top of mind is there's massive Amazon expansion and the cloud is going to the edge, it's here. What's up with wavelength. Take us through the, I call it the power edge, the super edge. >> Well, I'm really excited about this mostly because it gives a lot more choice and flexibility and options to our customers. This idea that with wavelength we announced quite some time ago, at least quite some time ago if we think in cloud years. We announced that we would be working with 5G providers all over the world to basically put AWS in the telecom providers data centers or telecom centers, so that as their customers build apps, that those apps would take advantage of the low latency, the high bandwidth, the reliability of 5G, be able to get to some compute and storage services that are incredibly close geographically and latency wise to the compute and storage that is just going to give customers this new power and say, well, what are the cool things we can build? >> Do you see any correlation between wavelength and some of the early Amazon services? Because to me, my gut feels like there's so much headroom there. I mean, I was just riffing on the notion of low latency packets. I mean, just think about the applications, gaming and VR, and metaverse kind of cool stuff like that where having the edge be that how much power there. It just feels like a new, it feels like a new AWS. I mean, what's your take? You've seen the evolutions and the growth of a lot of the key services. Like EC2 and SA3. >> So welcome to my life. And so to me, the way I always think about this is it's like when I go to a home improvement store and I wander through the aisles and I often wonder through with no particular thing that I actually need, but I just go there and say, wow, they've got this and they've got this, they've got this other interesting thing. And I just let my creativity run wild. And instead of trying to solve a problem, I'm saying, well, if I had these different parts, well, what could I actually build with them? And I really think that this breadth of different services and locations and options and communication technologies. I suspect a lot of our customers and customers to be and are in this the same mode where they're saying, I've got all this awesomeness at my fingertips, what might I be able to do with it? >> He reminds me when Fry's was around in Palo Alto, that store is no longer here but it used to be back in the day when it was good. It was you go in and just kind of spend hours and then next thing you know, you built a compute. Like what, I didn't come in here, whether it gets some cables. Now I got a motherboard. >> I clearly remember Fry's and before that there was the weird stuff warehouse was another really cool place to hang out if you remember that. >> Yeah I do. >> I wonder if I could jump in and you guys talking about the edge and Jeff I wanted to ask you about something that is, I think people are starting to really understand and appreciate what you did with the entrepreneur acquisition, what you do with nitro and graviton, and really driving costs down, driving performance up. I mean, there's like a compute Renaissance. And I wonder if you could talk about the importance of that at the edge, because it's got to be low power, it has to be low cost. You got to be doing processing at the edge. What's your take on how that's evolving? >> Certainly so you're totally right that we started working with and then ultimately acquired Annapurna labs in Israel a couple of years ago. I've worked directly with those folks and it's really awesome to see what they've been able to do. Just really saying, let's look at all of these different aspects of building the cloud that were once effectively kind of somewhat software intensive and say, where does it make sense to actually design build fabricate, deploy custom Silicon? So from putting up the system to doing all kinds of additional kinds of security checks, to running local IO devices, running the NBME as fast as possible to support the EBS. Each of those things has been a contributing factor to not just the power of the hardware itself, but what I'm seeing and have seen for the last probably two or three years at this point is the pace of innovation on instance types just continues to get faster and faster. And it's not just cranking out new instance types because we can, it's because our awesomely diverse base of customers keeps coming to us and saying, well, we're happy with what we have so far, but here's this really interesting new use case. And we needed a different ratio of memory to CPU, or we need more cores based on the amount of memory, or we needed a lot of IO bandwidth. And having that nitro as the base lets us really, I don't want to say plug and play, cause I haven't actually built this myself, but it seems like they can actually put the different elements together, very very quickly and then come up with new instance types that just our customers say, yeah, that's exactly what I asked for and be able to just do this entire range of from like micro and nano sized all the way up to incredibly large with incredible just to me like, when we talk about terabytes of memory that are just like actually just RAM memory. It's like, that's just an inconceivably large number by the standards of where I started out in my career. So it's all putting this power in customer hands. >> You used the term plug and play, but it does give you that nitro gives you that optionality. And then other thing that to me is really exciting is the way in which ISVs are writing to whatever's underneath. So you're making that, you know, transparent to the users so I can choose as a customer, the best price performance for my workload and that that's just going to grow that ISV portfolio. >> I think it's really important to be accurate and detailed and as thorough as possible as we launch each one of these new instance types with like what kind of processor is in there and what clock speed does it run at? What kind of, you know, how much memory do we have? What are the, just the ins and outs, and is it Intel or arm or AMD based? It's such an interesting to me contrast. I can still remember back in the very very early days of back, you know, going back almost 15 years at this point and effectively everybody said, well, not everybody. A few people looked and said, yeah, we kind of get the value here. Some people said, this just sounds like a bunch of generic hardware, just kind of generic hardware in Iraq. And even back then it was something that we were very careful with to design and optimize for use cases. But this idea that is generic is so, so, so incredibly inaccurate that I think people are now getting this. And it's okay. It's fine too, not just for the cloud, but for very specific kinds of workloads and use cases. >> And you guys have announced obviously the performance improvements on a lamb** does getting faster, you got the per billing, second billings on windows and SQL server on ECE too**. So I mean, obviously everyone kind of gets that, that's been your DNA, keep making it faster, cheaper, better, easier to use. But the other area I want to get your thoughts on because this is also more on the footprint side, is that the regions and local regions. So you've got more region news, take us through the update on the expansion on the footprint of AWS because you know, a startup can come in and these 15 companies that are here, they're global with AWS, right? So this is a major benefit for customers around the world. And you know, Ali from Data bricks mentioned privacy. Everyone's a privacy company now. So the huge issue, take us through the news on the region. >> Sure, so the two most recent regions that we announced are in the UAE and in Israel. And we generally like to pre-announce these anywhere from six months to two years at a time because we do know that the customers want to start making longer term plans to where they can start thinking about where they can do their computing, where they can store their data. I think at this point we now have seven regions under construction. And, again it's all about customer trice. Sometimes it's because they have very specific reasons where for based on local laws, based on national laws, that they must compute and restore within a particular geographic area. Other times I say, well, a lot of our customers are in this part of the world. Why don't we pick a region that is as close to that part of the world as possible. And one really important thing that I always like to remind our customers of in my audience is, anything that you choose to put in a region, stays in that region unless you very explicitly take an action that says I'd like to replicate it somewhere else. So if someone says, I want to store data in the US, or I want to store it in Frankfurt, or I want to store it in Sao Paulo, or I want to store it in Tokyo or Osaka. They get to make that very specific choice. We give them a lot of tools to help copy and replicate and do cross region operations of various sorts. But at the heart, the customer gets to choose those locations. And that in the early days I think there was this weird sense that you would, you'd put things in the cloud that would just mysteriously just kind of propagate all over the world. That's never been true, and we're very very clear on that. And I just always like to reinforce that point. >> That's great stuff, Jeff. Great to have you on again as a regular update here, just for the folks watching and don't know Jeff he'd been blogging and sharing. He'd been the one man media band for Amazon it's early days. Now he's got departments, he's got peoples on doing videos. It's an immediate franchise in and of itself, but without your rough days we wouldn't have gotten all the great news we subscribe to. We watch all the blog posts. It's essentially the flow coming out of AWS which is just a tsunami of a new announcements. Always great to read, must read. Jeff, thanks for coming on, really appreciate it. That's great. >> Thank you John, great to catch up as always. >> Jeff Barr with AWS again, and follow his stuff. He's got a great audience and community. They talk back, they collaborate and they're highly engaged. So check out Jeff's blog and his social presence. All right, Natalie, back to you for more coverage. >> Terrific. Well, did you guys know that Jeff took a three week AWS road trip across 15 cities in America to meet with cloud computing enthusiasts? 5,500 miles he drove, really incredible I didn't realize that. Let's unpack that interview though. What stood out to you John? >> I think Jeff, Barr's an example of what I call direct to audience a business model. He's been doing it from the beginning and I've been following his career. I remember back in the day when Amazon was started, he was always building stuff. He's a builder, he's classic. And he's been there from the beginning. At the beginning he was just the blog and it became a huge audience. It's now morphed into, he was power blogging so hard. He has now support and he still does it now. It's basically the conduit for information coming out of Amazon. I think Jeff has single-handedly made Amazon so successful at the community developer level, and that's the startup action happened and that got them going. And I think he deserves a lot of the success for AWS. >> And Dave, how about you? What is your reaction? >> Well I think you know, and everybody knows about the cloud and back stop X** and agility, and you know, eliminating the undifferentiated, heavy lifting and all that stuff. And one of the things that's often overlooked which is why I'm excited to be part of this program is the innovation. And the innovation comes from startups, and startups start in the cloud. And so I think that that's part of the flywheel effect. You just don't see a lot of startups these days saying, okay, I'm going to do something that's outside of the cloud. There are some, but for the most part, you know, if you saw in software, you're starting in the cloud, it's so capital efficient. I think that's one thing, I've throughout my career. I've been obsessed with every part of the stack from whether it's, you know, close to the business process with the applications. And right now I'm really obsessed with the plumbing, which is why I was excited to talk about, you know, the Annapurna acquisition. Amazon bought and a part of the $350 million, it's reported, you know, maybe a little bit more, but that isn't an amazing acquisition. And the reason why that's so important is because Amazon is continuing to drive costs down, drive performance up. And in my opinion, leaving a lot of the traditional players in their dust, especially when it comes to the power and cooling. You have often overlooked things. And the other piece of the interview was that Amazon is actually getting ISVs to write to these new platforms so that you don't have to worry about there's the software run on this chip or that chip, or x86 or arm or whatever it is. It runs. And so I can choose the best price performance. And that's where people don't, they misunderstand, you always say it John, just said that people are misunderstood. I think they misunderstand, they confused, you know, the price of the cloud with the cost of the cloud. They ignore all the labor costs that are associated with that. And so, you know, there's a lot of discussion now about the cloud tax. I just think the pace is accelerating. The gap is not closing, it's widening. >> If you look at the one question I asked them about wavelength and I had a follow up there when I said, you know, we riff on it and you see, he lit up like he beam was beaming because he said something interesting. It's not that there's a problem to solve at this opportunity. And he conveyed it to like I said, walking through Fry's. But like, you go into a store and he's a builder. So he sees opportunity. And this comes back down to the Martine Casada paradox posts he wrote about do you optimize for CapEx or future revenue? And I think the tell sign is at the wavelength edge piece is going to be so creative and that's going to open up massive opportunities. I think that's the place to watch. That's the place I'm watching. And I think startups going to come out of the woodwork because that's where the action will be. And that's just Amazon at the edge, I mean, that's just cloud at the edge. I think that is going to be very effective. And his that's a little TeleSign, he kind of revealed a little bit there, a lot there with that comment. >> Well that's a to be continued conversation. >> Indeed, I would love to introduce our next guest. We actually have Soma on the line. He's the managing director at Madrona venture group. Thank you Soma very much for coming for our keynote program. >> Thank you Natalie and I'm great to be here and will have the opportunity to spend some time with you all. >> Well, you have a long to nerd history in the enterprise. How would you define the modern enterprise also known as cloud scale? >> Yeah, so I would say I have, first of all, like, you know, we've all heard this now for the last, you know, say 10 years or so. Like, software is eating the world. Okay. Put it another way, we think about like, hey, every enterprise is a software company first and foremost. Okay. And companies that truly internalize that, that truly think about that, and truly act that way are going to start up, continue running well and things that don't internalize that, and don't do that are going to be left behind sooner than later. Right. And the last few years you start off thing and not take it to the next level and talk about like, not every enterprise is not going through a digital transformation. Okay. So when you sort of think about the world from that lens. Okay. Modern enterprise has to think about like, and I am first and foremost, a technology company. I may be in the business of making a car art, you know, manufacturing paper, or like you know, manufacturing some healthcare products or what have you got out there. But technology and software is what is going to give me a unique, differentiated advantage that's going to let me do what I need to do for my customers in the best possible way [Indistinct]. So that sort of level of focus, level of execution, has to be there in a modern enterprise. The other thing is like not every modern enterprise needs to think about regular. I'm competing for talent, not anymore with my peers in my industry. I'm competing for technology talent and software talent with the top five technology companies in the world. Whether it is Amazon or Facebook or Microsoft or Google, or what have you cannot think, right? So you really have to have that mindset, and then everything flows from that. >> So I got to ask you on the enterprise side again, you've seen many ways of innovation. You've got, you know, been in the industry for many, many years. The old way was enterprises want the best proven product and the startups want that lucrative contract. Right? Yeah. And get that beach in. And it used to be, and we addressed this in our earlier keynote with Ali and how it's changing, the buyers are changing because the cloud has enabled this new kind of execution. I call it agile, call it what you want. Developers are driving modern applications, so enterprises are still, there's no, the playbooks evolving. Right? So we see that with the pandemic, people had needs, urgent needs, and they tried new stuff and it worked. The parachute opened as they say. So how do you look at this as you look at stars, you're investing in and you're coaching them. What's the playbook? What's the secret sauce of how to crack the enterprise code today. And if you're an enterprise buyer, what do I need to do? I want to be more agile. Is there a clear path? Is there's a TSA to let stuff go through faster? I mean, what is the modern playbook for buying and being a supplier? >> That's a fantastic question, John, because I think that sort of playbook is changing, even as we speak here currently. A couple of key things to understand first of all is like, you know, decision-making inside an enterprise is getting more and more de-centralized. Particularly decisions around what technology to use and what solutions to use to be able to do what people need to do. That decision making is no longer sort of, you know, all done like the CEO's office or the CTO's office kind of thing. Developers are more and more like you rightly said, like sort of the central of the workflow and the decision making process. So it'll be who both the enterprises, as well as the startups to really understand that. So what does it mean now from a startup perspective, from a startup perspective, it means like, right. In addition to thinking about like hey, not do I go create an enterprise sales post, do I sell to the enterprise like what I might have done in the past? Is that the best way of moving forward, or should I be thinking about a product led growth go to market initiative? You know, build a product that is easy to use, that made self serve really works, you know, get the developers to start using to see the value to fall in love with the product and then you think about like hey, how do I go translate that into a contract with enterprise. Right? And more and more what I call particularly, you know, startups and technology companies that are focused on the developer audience are thinking about like, you know, how do I have a bottom up go to market motion? And sometime I may sort of, you know, overlap that with the top down enterprise sales motion that we know that has been going on for many, many years or decades kind of thing. But really this product led growth bottom up a go to market motion is something that we are seeing on the rise. I would say they're going to have more than half the startup that we come across today, have that in some way shape or form. And so the enterprise also needs to understand this, the CIO or the CTO needs to know that like hey, I'm not decision-making is getting de-centralized. I need to empower my engineers and my engineering managers and my engineering leaders to be able to make the right decision and trust them. I'm going to give them some guard rails so that I don't find myself in a soup, you know, sometime down the road. But once I give them the guard rails, I'm going to enable people to make the decisions. People who are closer to the problem, to make the right decision. >> Well Soma, what are some of the ways that startups can accelerate their enterprise penetration? >> I think that's another good question. First of all, you need to think about like, Hey, what are enterprises wanting to rec? Okay. If you start off take like two steps back and think about what the enterprise is really think about it going. I'm a software company, but I'm really manufacturing paper. What do I do? Right? The core thing that most enterprises care about is like, hey, how do I better engage with my customers? How do I better serve my customers? And how do I do it in the most optimal way? At the end of the day that's what like most enterprises really care about. So startups need to understand, what are the problems that the enterprise is trying to solve? What kind of tools and platform technologies and infrastructure support, and, you know, everything else that they need to be able to do what they need to do and what only they can do in the most optimal way. Right? So to the extent you are providing either a tool or platform or some technology that is going to enable your enterprise to make progress on what they want to do, you're going to get more traction within the enterprise. In other words, stop thinking about technology, and start thinking about the customer problem that they want to solve. And the more you anchor your company, and more you anchor your conversation with the customer around that, the more the enterprise is going to get excited about wanting to work with you. >> So I got to ask you on the enterprise and developer equation because CSOs and CXOs, depending who you talk to have that same answer. Oh yeah. In the 90's and 2000's, we kind of didn't, we throttled down, we were using the legacy developer tools and cloud came and then we had to rebuild and we didn't really know what to do. So you seeing a shift, and this is kind of been going on for at least the past five to eight years, a lot more developers being hired yet. I mean, at FinTech is clearly a vertical, they always had developers and everyone had developers, but there's a fast ramp up of developers now and the role of open source has changed. Just looking at the participation. They're not just consuming open source, open source is part of the business model for mainstream enterprises. How is this, first of all, do you agree? And if so, how has this changed the course of an enterprise human resource selection? How they're organized? What's your vision on that? >> Yeah. So as I mentioned earlier, John, in my mind the first thing is, and this sort of, you know, like you said financial services has always been sort of hiring people [Indistinct]. And this is like five-year old story. So bear with me I'll tell you the firewall story and then come to I was trying to, the cloud CIO or the Goldman Sachs. Okay. And this is five years ago when people were still like, hey, is this cloud thing real and now is cloud going to take over the world? You know, am I really ready to put my data in the cloud? So there are a lot of questions and conversations can affect. The CIO of Goldman Sachs told me two things that I remember to this day. One is, hey, we've got a internal edict. That we made a decision that in the next five years, everything in Goldman Sachs is going to be on the public law. And I literally jumped out of the chair and I said like now are you going to get there? And then he laughed and said like now it really doesn't matter whether we get there or not. We want to set the tone, set the direction for the organization that hey, public cloud is here. Public cloud is there. And we need to like, you know, move as fast as we realistically can and think about all the financial regulations and security and privacy. And all these things that we care about deeply. But given all of that, the world is going towards public load and we better be on the leading edge as opposed to the lagging edge. And the second thing he said, like we're talking about like hey, how are you hiring, you know, engineers at Goldman Sachs Canada? And he said like in hey, I sort of, my team goes out to the top 20 schools in the US. And the people we really compete with are, and he was saying this, Hey, we don't compete with JP Morgan or Morgan Stanley, or pick any of your favorite financial institutions. We really think about like, hey, we want to get the best talent into Goldman Sachs out of these schools. And we really compete head to head with Google. We compete head to head with Microsoft. We compete head to head with Facebook. And we know that the caliber of people that we want to get is no different than what these companies want. If you want to continue being a successful, leading it, you know, financial services player. That sort of tells you what's going on. You also talked a little bit about like hey, open source is here to stay. What does that really mean kind of thing. In my mind like now, you can tell me that I can have from given my pedigree at Microsoft, I can tell you that we were the first embraces of open source in this world. So I'll say that right off the bat. But having said that we did in our turn around and said like, hey, this open source is real, this open source is going to be great. How can we embrace and how can we participate? And you fast forward to today, like in a Microsoft is probably as good as open source as probably any other large company I would say. Right? Including like the work that the company has done in terms of acquiring GitHub and letting it stay true to its original promise of open source and community can I think, right? I think Microsoft has come a long way kind of thing. But the thing that like in all these enterprises need to think about is you want your developers to have access to the latest and greatest tools. To the latest and greatest that the software can provide. And you really don't want your engineers to be reinventing the wheel all the time. So there is something available in the open source world. Go ahead, please set up, think about whether that makes sense for you to use it. And likewise, if you think that is something you can contribute to the open source work, go ahead and do that. So it's really a two way somebody Arctic relationship that enterprises need to have, and they need to enable their developers to want to have that symbiotic relationship. >> Soma, fantastic insights. Thank you so much for joining our keynote program. >> Thank you Natalie and thank you John. It was always fun to chat with you guys. Thank you. >> Thank you. >> John we would love to get your quick insight on that. >> Well I think first of all, he's a prolific investor the great from Madrona venture partners, which is well known in the tech circles. They're in Seattle, which is in the hub of I call cloud city. You've got Amazon and Microsoft there. He'd been at Microsoft and he knows the developer ecosystem. And reason why I like his perspective is that he understands the value of having developers as a core competency in Microsoft. That's their DNA. You look at Microsoft, their number one thing from day one besides software was developers. That was their army, the thousand centurions that one won everything for them. That has shifted. And he brought up open source, and .net and how they've embraced Linux, but something that tele before he became CEO, we interviewed him in the cube at an Xcel partners event at Stanford. He was open before he was CEO. He was talking about opening up. They opened up a lot of their open source infrastructure projects to the open compute foundation early. So they had already had that going and at that price, since that time, the stock price of Microsoft has skyrocketed because as Ali said, open always wins. And I think that is what you see here, and as an investor now he's picking in startups and investing in them. He's got to read the tea leaves. He's got to be in the right side of history. So he brings a great perspective because he sees the old way and he understands the new way. That is the key for success we've seen in the enterprise and with the startups. The people who get the future, and can create the value are going to win. >> Yeah, really excellent point. And just really quickly. What do you think were some of our greatest hits on this hour of programming? >> Well first of all I'm really impressed that Ali took the time to come join us because I know he's super busy. I think they're at a $28 billion valuation now they're pushing a billion dollars in revenue, gap revenue. And again, just a few short years ago, they had zero software revenue. So of these 15 companies we're showcasing today, you know, there's a next Data bricks in there. They're all going to be successful. They already are successful. And they're all on this rocket ship trajectory. Ali is smart, he's also got the advantage of being part of that Berkeley community which they're early on a lot of things now. Being early means you're wrong a lot, but you're also right, and you're right big. So Berkeley and Stanford obviously big areas here in the bay area as research. He is smart, He's got a great team and he's really open. So having him share his best practices, I thought that was a great highlight. Of course, Jeff Barr highlighting some of the insights that he brings and honestly having a perspective of a VC. And we're going to have Peter Wagner from wing VC who's a classic enterprise investors, super smart. So he'll add some insight. Of course, one of the community session, whenever our influencers coming on, it's our beat coming on at the end, as well as Katie Drucker. Another Madrona person is going to talk about growth hacking, growth strategies, but yeah, sights Raleigh coming on. >> Terrific, well thank you so much for those insights and thank you to everyone who is watching the first hour of our live coverage of the AWS startup showcase for myself, Natalie Ehrlich, John, for your and Dave Vellante we want to thank you very much for watching and do stay tuned for more amazing content, as well as a special live segment that John Furrier is going to be hosting. It takes place at 12:30 PM Pacific time, and it's called cracking the code, lessons learned on how enterprise buyers evaluate new startups. Don't go anywhere.

>> Announcer: From the theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hey, welcome back, everybody. Jeff Frick here with theCUBE coming to you from our Palo Alto studios. Today we're going to have a CUBE conversation really about this kind of ongoing evolution of cloud, and it was a huge deal, and AWS came on the scene and really launched kind of the public cloud evolution, which not only was a different technology stack, but really a different way to think about things, a different way to think about workloads. And that has evolved to hybrid cloud and multicloud, and it just continues to evolve over time. So we're going to get some of the experts in from IBM to talk about their perspective and what they're doing all about it. So we're excited to invite our next guest. She is Briana Frank. She's the director of product management for IBM. Briana, good to see you. Where are you joining us from today? >> I am joining you from Wake Forest, North Carolina. And as you can see, I'm from my home office, but always busy working and fun doing things in the cloud and thinking about new technologies even when we're at home. >> Excellent. And also joining us, many-time CUBE alumni Jason McGee, IBM fellow, vice president and CTO of IBM Cloud Platform. Jason, great to see you again. I looked it up before we turned on the cameras. I think you've been on, like, eight times. So you're definitely a VIP in the CUBE alumni world. Where are you joining us from today? >> Yeah, I mean, I'm in Apex, which is outside of Raleigh, and great to be here again. It's always fun to talk to you guys. It's been a little while, but great to be back. >> Yeah, so let's just jump into it, right? You've all seen the memes revolving around what's driving your digital transformation. Is it the CEO, the CIO, or COVID? And we all know the answer to the question. It's really been an interesting time, right? It was kind of a light switch moment in mid-March. And then people are saying, you know, years and years of digital transformation kind of suddenly compressed into this light switch moment. But now we're months and months and months later, we're in October, and it's clear that this is not just a a one-time fix and wait till we all go back to work. This is going to continue for a while. And cloud is such a huge enabler. Had this happened five years ago, 10 years ago, 15 years ago, the ability for information workers, like the businesses that we're in, would've been much more difficult. So acknowledging that there's still a lot of people hurting, a lot, hospitality industry, restaurant industry, sports places that aggregate people, concerts. We're fortunate we're in the information industry. And I'd just love to get your perspective, Jason, on cloud as an enabling platform and really an enabling way of thinking about things that have made this transition a little bit less painful than it otherwise would've been. >> Yeah, that's a great point, Jeff, and I think on one hand it's been pretty amazing to see how much our industry in technology and IT has been able to kind of adapt to COVID, adapt to working at home, adapt to these kinds of changing models. But what's been really interesting is as someone who spends all their time thinking about cloud every day, it's been really incredible to see how much it's accelerated people's adoption of cloud. Like, obviously everyone was leveraging cloud. They had plans to move more and more workloads to cloud. But I think over the last six months we've really seen a massive acceleration, and I also think kind of a mindset shift that maybe before there was some hesitation and conversation about what things move to cloud and what things don't, and that seems to have kind of gone away, and everyone's like, this is the model that not only will carry us through moments like this, but we have newfound confidence that it's the right model for us to move the majority of our businesses to. >> Right. >> So really massive acceleration. >> Massive acceleration. And Briana, get your take, 'cause you're a product manager, so you're in the weeds on the speeds and feeds and the features and functions. Cloud as a concept sounds kind of simple, but the execution is not so simple. And we've seen kind of this morphing from moving your test dev maybe to a public cloud, IBM has a cloud, to there's some stuff that just can't go on the cloud or shouldn't go to the cloud or I'm not sure if it should go in the cloud. So now we're hearing talk of hybrid cloud and multicloud, and we're hearing pieces of public cloud in my own data center and pieces of my own data center in a public cloud. It's a pretty complicated space. I wonder if you can kind of share your perspective as this thing morphs from kind of a simple concept and a beautiful little icon to a much more complex execution in the real world. >> Well, great question and insights. And I think, building off of what Jason said, I think the most important shift I've seen is really a mind shift, a mindset shift. And there's so much more empathy that I'm seeing across the board, whether it's children running in the background or cats and pets, there's a lot more tolerance for work-life balance and a lot more empathy for how people are getting through this really challenging pandemic. And what I think is interesting is that kind of carries over into the technology. And so now where some of our clients were solving problems like keeping their workforce safe by using video analytics to see if someone's using or wearing maybe a hard hat in a construction zone. Now that use case has sort of shifted, and now it's is someone wearing a mask? Do they have a temperature? How do we make sure that the office areas are sanitized and clean so that when people go back to work, they'll be working in a safe environment? So I think that the mindset shift is really driving a lot of these technology innovations. And then of course you need cloud to make those real. So I think that's the kind of aha moment I've seen is that people are leading with empathy and that's driving kind of the next wave of innovation that I'm seeing. >> I have to say I've been doing these many, many years, and Briana, I don't think anyone has brought up empathy at the at the head end of the open. And I love that 'cause I think that's a way to think about it, right? 'Cause these are people trying to execute business activities, and it's not easy. And that's a really great take. Jason, I want to go back to you and talk about one of the things we talked about the cloud, but really it's about enabling applications, right? And really, the application now has become this first class citizen where it's, this is the app I want. Cloud enables me to use whatever infrastructure I need versus this is the infrastructure I have. Hm, what can I put on this app? So I'd love to get your take. As you said, you think about cloud all the time, but really, cloud is an app enabler. And how has, as that capability has been gifted to people, how has that made the the cloud execution a lot more complex? >> Yeah, you know, it's interesting. I think you're hitting on a really key transformation that's happened in cloud over the last few years, which is that it's gone from infrastructure kind of cost optimization to an application delivery accelerator. And what I think that's caused is everyone's starting to kind of move their thinking up the stack in cloud, and you see the rise of technologies like Kubernetes and OpenShift as a platform that enables application developers to build applications and deliver them more quickly. I think the acceleration that we've been talking about here has cemented that. At the end of the day, we're all trying to figure out in our businesses how to adapt to change. We have some new changes this year that maybe we didn't predict we would have last year. We're trying to figure out how to adapt to those to deliver new capabilities, to maybe build a digital experience for something that we didn't have a digital experience for before, 'cause now nobody is face to face. And that requires cloud to be much more application-centric. It requires cloud, you alluded to this kind of evolution. I think it's starting to drive cloud into more places. Cloud isn't about just getting into some big cloud data center somewhere. Cloud is about a style of working and a set of technologies that I want to be able to consume wherever I need them. So that kind of application-centric capability and the rise of cloud-native technologies I think go hand in hand. >> Right, so it got to us from a simple dev swiping a credit card to do a little project on Amazon to now enterprising having very complex ecosystems, right? Very complex situation because they've got lots of different clouds and lots of different apps running on lots of different clouds, and the application and the control of those is now much more complicated than probably when you just had it all in your own data center or if you're some cloud data organization and you grew up on the public cloud and you really are kind of a single app that happens to be a big one in hyperscale. So I'm curious, Briana, you guys have a ton of customers. What are they telling you about what they're doing with hybrid cloud, managing hybrid cloud, trying to get back to some of the simplicity and kind of the simplistic vision and execution when what's happening is probably increasing complexity as different apps are running on different clouds, different places. >> Yeah, great question. You know, I think that what we're hearing from our clients is really a couple of things. One is that they have to find ways to unburden their teams. They only have limited resources and the sky's the limit in terms of what's possible. So they need to be able to innovate faster, but they have to unburden the team. So the rise of "as a service" I think is really coming into its own because teams don't have time to manage things like Kubernetes. They have to go higher in the stack and really start to build and innovate for their own business differentiation. But another I think really important thing that we're hearing from our clients is that we have to meet them where they are in their journey. So what you said was great. A lot of our clients are using five to nine different clouds today, and that's extraordinarily fragmented, and being able to manage and have one way to see what workload is running where and what is running on that workload is really important. And having kind of one single pane of glass where they can manage everything is one of the single most important features that I hear that is needed. And I think the other thing that I hear a lot from clients is they need flexibility. They need flexibility for, you know, where they are in their journey. Some folks, they need to be able to deploy to existing infrastructure that they have in their data center, and others need to be able to deploy to another public cloud. And having the flexibility to run anywhere is one of the more common themes that I'm seeing. >> Right, so, and you guys built something to help with that, right? It's the IBM cloud satellite. So you just basically outlined the customer challenge, so what did you have to do to enable them to have a single pane of glass, to have more control across these disparate projects running in disparate clouds. >> Well, so one of the things that we found is our clients really, all of the agility that they need to adopt cloud data best practices, really comes from the public cloud. The public cloud services, DevOps, all the tools that allow you to really run and move faster and innovate faster, but they needed that ability to consume those public cloud services anywhere. So at the edge, on another public cloud, or in their existing infrastructure. And of course there's tons of infrastructure options. We have infrastructure for our clients that they can use. We have turnkey appliances. But really having that public cloud, cloud-native agility, but really bringing that anywhere that our clients want to run it is the key to satellite. >> Right, right. So it's not kind of what would be typically thought of as a hybrid cloud solution per se, but it's really almost kind of a level up, if I'm hearing you correctly, in controlling all the different kind of instances or instantiations of your cloud execution. That'd be accurate, Jason? >> Yeah, well, or maybe another way to think about it is it's a way of consuming hybrid, right? It's a way of consuming these hybrid cloud capabilities. Hybrid starts with a common platform, and this idea that we are using things like OpenShift as that common technology platform that enables customers to build applications once and run them anywhere. What satellite brings to the table is it takes that base technology platform and it delivers it as a cloud service, and a cloud service that's flexible enough to be anywhere. And so you kind of combine the best of both. You combine a common technology approach and you combine the as a service API-based consumption model of public cloud to get a hybrid strategy that's super flexible, right? And now really lets customers focus on the work that they're doing going faster. And at IBM, we've been pretty clear that we think the future of hybrid cloud computing is rooted in technologies like Kubernetes and OpenShift, that that's the platform of the future. The acquisition of Red Hat was motivated by that strategy. Our public cloud for the last three-plus years has been built internally on top of the same technologies. And so what we've done with satellite from a technology perspective is we've taken the things that we do in our cloud and we've used the power of of Kubernetes and OpenShift to deliver those anywhere, right? And to give customers that same experience on their infrastructure or on some other public cloud. >> Right. I love it because it's kind of cloud on cloud, if you will, but it really supports this notion of the customer experience, and even more importantly in some ways, the developer experience to make sure that your developers inside the house are feeling good, have a great productive environment so they can do a better job with what they're working on. And that that sounds like something they would really, really enjoy and be native to the way they're used to working already. >> It's interesting too, one of the kind of interesting, I don't know, adoption trends we're starting to see with approaches like satellite is if you think about cloud, I'll oversimplify, but you could say there's kind of two big transformations. One is move my workload to a public cloud, and the other is change how my team works, right? Adopt cloud-native, agile best practices. And often to get to the culture change of the team, you had to start with moving the app, but that's hard, especially for the kind of 80% of workloads that we're seeing move to cloud now where they're complex. They have lots of ties into data that you have in your data center. So it's hard to move them sometimes. So with approaches like satellite, you can kind of flip the order. You can bring the cloud in house, if you will. You can start to adopt self-service and API-based consumption and DevOps and change how your teams work and make them more efficient without moving the applications. And then later, if it makes sense to move them, you can, right? And I think that's really powerful. >> Right, right. Briana, I want to go back to you on kind of the nuts and bolts. 'Cause I don't know if you've read "Innovator's Dilemma" by Christian Clayton. You should if you haven't. But one of the things is how do you prioritize what you're building? How do you prioritize your feature stack? Because you have to, right? You have to put one in front of the other, and it's going to drive your design decisions and what you ultimately ship. So as you were thinking about satellite, what were kind of your top-level design priorities that you're really building this towards that you wanted to make sure you really nailed? >> Oh, what a great question. I love that question. I'm so passionate about product and design and I think we take it very seriously at IBM, and it's, we have an amazing design department, if you will, at IBM. And one of the things we do is just relentlessly interview our clients, and we really try to understand what their main issues are. And one of the first use cases that we we looked at was actually in the financial industry, which was, in the financial services industry, the differentiation is really all about the technology itself, and so they're constantly having to innovate at a faster pace so they can bring new features and functions to their clients but they have this dilemma where they have to, in some cases, in many cases, keep the data on-prem in a specific location. And that starts to get really interesting, because sometimes the regulations, it could be country, it could be a compliance thing, but for whatever reason, there is a specific requirement, and sometimes that comes with a fine if that data doesn't reside in that location. So having the ability to move at an incredibly fast pace and keep innovating, but keep that data on-prem and offload the management of Kubernetes and the services that allow them to move fast. That was one of the first use cases that we tackled. And I think that's a pretty important one, because if you can get that right, that starts to permeate all other industries, because you want to, you have to be secure. You have to make sure that the data resides and is on-prem and in a specific location and that it's auditable. So I think that was one of our first use cases, and that has served us really well. We also, one of the things that we do inside of IBM is that we co-develop using our own internal workloads. And so we use the data and AI team within IBM will GA with us when we GA IBM Cloud Satellite, and so their workloads are running on top of satellite. And I think that's a great way to come to market because when you're delivering an MVP, but if you can deliver an MVP that's already running a really complex AI workload, that's a pretty impressive MVP, if you ask me. So we try to do that whenever we release new products, and I think that has served us very well because it really forces us to solve the really hard problems first. We don't have a choice. We have to be able to make some pretty strategic choices upfront to be able to deliver something like that. >> That's great. Jason, I want to go back to you and talk about a little bit beyond the cloud, but things that are really interesting and happening, right? You already talked about this big enabler with containers and Kubernetes, but this next thing that's coming, right, is just edge, which is an extension of the cloud, an outpost to the cloud, but this whole concept of getting outside of the data center but actually now starting to bring the compute to the devices that generate the data as well as need that. How do you see that kind of impacting your cloud thoughts? I love that you're thinking cloud all the time. And the other piece, keying off of what Briana just said, is applied AI, right? I mean, I think we all would agree that AI and machine learning as kind of a standard, generic thing is okay, but really the application of the AI and the machine learning for specific use cases is where we're seeing huge, huge benefit. And I would imagine there's many, many kind of areas within cloud execution that AI and machine learning can start to add even more and more and more efficiencies and automation. >> Sure, sure. So maybe a couple comments. I mean, I think the edge thing is so interesting because if you really kind of step back and think about what we were talking about with cloud, what is a cloud is becoming much more diverse. Started as it's these three regions and it's becoming everybody's data centers plus on-prem, and then it's becoming edge, large edge locations, and then it's becoming devices. So clouds are becoming pervasive as a concept across all IT consumption models. And there's core technologies, even, like containers that we think apply at all those levels. They apply in the core cloud, in the data center, at the edge, in a device. And so things like satellite certainly give us a mechanism to push that boundary, to push closer to the end user. And there's a ton of scenarios motivating that. 5G telecommunications and high-speed networking for mobile devices is necessitating pushing closer to where the data's getting generated. IoT, same thing. If you think about the IoT edge case, that's massive data generation. You don't necessarily want to backhaul that all the way back to a central cloud. You want to be able to do AI and training and inferencing on that data close to where it lives. And so you need this whole idea of cloud to kind of expand, and if it doesn't, then what happens is all of these different use cases become like different technology stacks or different operational models and you get tons of complexity. So it's this really interesting intersection, and I think we're getting much more complex in how we deploy, but we're trying to put common ideas over the top of it to simplify, and I think that's pretty interesting. On the AI question, you're right, there's tons of places where AI, applied AI will come into the picture. At IBM, we're doing a ton of work on AI for IT operations and how do we apply AI modeling to monitoring, to resiliency, even to workload placement. I mean, just think about the world we just described. As a customer, maybe I have IBM cloud and I have 20 satellite locations in all our fun places in the world, and now I have to make decisions about what runs where and where should I deploy my workloads and what's the most efficient way to place workloads to get availability or better performance, and AI plays a role there. So I see a really bright future as we build out this infrastructure to then use AI as a mechanism to further simplify the customer's consumption of cloud. >> Yeah, that's great. So I want to give you both the last word before we sign off, and that was a good summary, Jason. Cloud's been around for a while and it gets tossed around, and again, now we have hybrid and multi and all these different flavors. You guys are in the weeds and you're seeing down the road a little bit. What is it about cloud that most people probably aren't talking about when you kind of look in your crystal ball, obviously don't share any secrets that you can't share, that gets you excited and makes you think, wow, we're still really, hard to believe, but really in the early days of what this really, the kind of opportunities that this opens up. And I'll go with you first, Briana. >> Well, that's a great question. I think we're already starting to see that with the example of all of the work that we're seeing in the COVID space. It just feels like whatever challenge that might lie ahead in our future, we have an ability to quickly iterate and change and adapt. It's so interesting to see how fast we can roll out new technologies and new ideas. Things that would take years to put together you can kind of put together in a week or so with a quick POC. And that's really an exciting kind of place to be that you can adapt and change so quickly. So I think that's one. And I do think your point about edge is really an important one. There's more and more opportunities to distribute workloads closer to, compute goes closer to where the users are, so therefore you're reducing latency, so you're getting instant feedback. And I think that's really going to be interesting. And then I think the third element, again, is like security and compliance. How do you know exactly that your data stays exactly where you want it to, and you can have proof and you can audit that data. I think that's really where the future's headed. >> Yeah, that's great. And Jason, to you, what's getting you up in the morning today? >> Oh, you don't want to know what gets me up today. But if we talk about what's coming, so for me, my whole career, I've really been thinking about applications. And I think one of the kind of macro trends that everyone doesn't always see that's going on in cloud is we're switching from an IT infrastructure-centric view of computing to an application-centric view. And all of these things we've been talking about are kind of steps along that journey. We're getting to a point where I can build applications, I can build them in a consistent way, I can deploy them anywhere in the world on this incredibly diverse infrastructure. As a developer, I have simple, immediate access to world-class capabilities, to specialized hardware. We are really in the midst of a transformation on how we build computing technology and really a democratization of that technology that 10 or 15 years ago you wouldn't have had the, most people would not have had the funds to stand up the technology they needed to build these things. And that's what really gets me excited, because I think about, well, then what's all the innovation that's going to come from that? As more and more developers have access to this powerful infrastructure in these diverse ways, what are they going to create? And that's what's, I think, going on under the covers. I think we're in the middle of a generational transformation of technology that will result in things we can't predict today because we'll open up so many people's ability to leverage that platform. >> What a great thought to close on, Jason, 'cause I think we hear that consistently all the time. What's the key to innovation? Give more people the access to the tools, give more people access to the data and more people the power to do something with it and create. And we hear all the time about the disadvantaged classes of people that just didn't get the opportunity, and if all those people had the same school, the same education, and now the same basically infinite compute power at their disposal, what are they going to invent? And I think it's an exciting future, and I think that's a great place to close. So we'll leave it at that. I want to thank you both for checking in. Briana, great to meet you, and Jason, always good to see you, as well. >> Yeah, nice to meet you. >> Yeah, great to be here, thank you. >> All right, thanks a lot and have a great day. >> Thank you. >> All right, that was Briana and Jason. I'm Jeff. You're watching theCUBE. Thanks for watching. We'll see you next time. (bright music)

>>Ly from San Diego, California. It's the cube covering to clock in cloud native con brought to you by red hat, the cloud native computing foundation and its ecosystem Marsh. >>Welcome back to San Diego. It's CubeCon cloud native con 2019. You're watching the cube. I'm streaming in my cohost for three days of live coverage is John Troyer and happened at welcome fresh off the keynote stage to my right is as hers as har who's the chief architect for telco at red hat and the man that was behind the scenes for a lot of it, hunting Garcia, telco solutions manager at red hat. A gentlemen, thanks so much for joining us and a very interesting keynote. So you know 5g uh, you know, my background's networking, we all watch it. Um, uh, let's say my telco provider already says that I have something related to five G on my phone that we grumble a little bit about, but we're not going to talk about that where we are going to talk about his keynote. Uh, we had a China mobile up on stage. Uh, maybe a, I love a little bit behind the scenes as you were saying. Uh, you know, the cloud native enabled not just uh, you know, the keynote and what it's living, but it gets a little bit of what >>well, sure. Um, look, when we took on this particular project to build a cloud native environment, uh, for five genes, we spent a lot of time planning and in fact this is a guy who actually did, you know, most of that work, um, to do a lot of planning in terms of picking different components and getting that together. Um, one of the things that cloud native environment allows us to do is bring things up quickly. The resilience part of it and the scale bar, right? Those are the two important components and attributes of cloud native. In fact, what happened last night was obviously one of the circuit breakers trapped and we actually lost power to that particular entire part that is onstage. I mean, nobody knows about this. I didn't talk about it as part of the keynote, but guess what? Through because it was cloud native because it was built in an automated fashion. People were able to work. Yes, they spent about three hours or so to actually get that back up. But we got it back up and running and we showed it live today. But what, I'm not trying to stress on how it failed a white fail. I'm trying to stress on how quickly things came back up and more important. The only cloud native way of doing things could have done that. Otherwise it wouldn't have been possible. All right. >>as, as the man behind the scenes there. Uh, it's great when we have, you know, here's actually the largest telco provider in the world. Uh, you know, showing what it, it's happened. So the title Kubernetes everywhere that telco edge gets a little bit of a hind, the scenes as to kind of the, the, the mission of building the solution and how you got it, you know, your, your, your customers, your partners, uh, engaged and excited to participate in. >> This is what's that very thirsting enterprise through realize. Actually, we took four months around, uh, 15 partners. And, uh, I would say partners >>because in that case, I'm taking, uh, uh, bell Canada and China mobile is a partners. They are part of the project. They were giving us a requirement, helping us all the way to it and together other, uh, more, uh, commercial partners. And of course, uh, as whatsover Allianz, like the team in the and the open interface, Allianz is, we're working with us is, was about 8,200 people working behind the scenes to get this work, uh, to have a lab, uh, directly, completely set up with a full, uh, Fuji containerized MoMA and network in France, uh, have the same in Montreal. Fuji and fogey called directly Montiel as well, uh, in one of our partners, uh, Calum labs and then bringing here the fudgey pop, uh, and have everything connected to the public cloud. So we have everything in there. So all the technology, all the mobile technology was there. >>We have enterprise technology that we're using to connect all the, all the labs and the, and the pop here with the public cloud to. Uh, um, technology and we have of course deployed as, as a, as our, uh, was mentioning. We deployed Kubernete is on the public cloud and we have as well Kubernete is open, rehabbed, open stack, uh, sorry. They had OpenShift container platform running on the, on all the premise in the lab in France and Davi, Marcia and they pop here. Uh, as I say, it was kind of an interesting enterprise. We have some hiccups last night, but uh, we were able to put that out the world telco, >>very specialized, very high service level agreements. I always want by phone to work and so a little bit, uh, uses different terminology than the rest of it sometimes. Right. And MP and VNF and VCO. But so maybe let's real to tell people a little bit like what are we actually talking about here? I mean, people also may not be following edge and, and teleco and what's actually sitting in their home town or, or it used to be embedded chips and none, it was a like Linux, but we're actually talking about installing Kubernetes clusters in a lot of different, really interesting typologies. That's absolutely true actually with the way how, and described it as perfect in the sense that we actually had Kubernetes clusters sitting in a data center environment in France, in Montreal and a remote pop that's sitting here on stage. So it was not just independent clusters but also stretch clusters where we actually had some worker nodes here that will attach back to the Montreal cluster. >>So the flexibility that it gave us was just awesome. We can't achieve that. Uh, you know, in general. But you brought up an interesting topic around, uh, you know, Getty or, uh, or, or the Teleco's operating environment, which is different and cloud native principles has, are a little bit different where they weren't very high availability, they weren't very high reliability with good amount of redundancy. Well, cloud native and actually those attributes to you. But the operational model is very different. You have to almost use codas throwaway hardware as throwaway and do a horizontal scale model to be able to build that. Whereas in the older environment, hardware was a premium switches and routers with a premium and you couldn't have a failure. So you needed all of those, you know, compliance of high availability and upgradability and so on. Here I'm upgrading processes in Linux, I'm upgrading applications. I can go deploy anytime, tear them down. Anytime I'm monitoring the infrastructure, using metrics, using telemetry. That wasn't the case before. So a different operating environment, but it provides actually better residency models than what telcos are actually yesterday. Yeah. >>Um, it's a complicated ecosystem to put all these pieces together. Uh, it gives, gives a little insight as to, uh, you know, red hats, leadership and uh, the, the, the partners that help you put it in. >>I will let him answer that. >>Um, is another, our first rodeo. We have been working on the vitro central office project with the, with the leaner foundation, uh, networking and Hopi NFV community for three last years. Uh, let's say, and the interesting part of this one is that even though we typically get with working with what the technology that they are using now, uh, we decided it's time to go with the technologies that we'll be using from now on. Um, but of course, uh, there is a set of partners that we need. We need to build the infrastructure from scratch. So for example, we have a Lenovo that was bringing all the, all the servers, uh, for the, for the set up in, uh, and here in San Diego, which actually the San Diego pub was built originally in Raleigh, Illinois, facilities and cheap all over the country to here for the show. Uh, and uh, then we have the fabric part. >>So the networking part, that's his cologne. Uh, this was working and bringing us the software defined fabric, uh, to connect all the different future. And then, then we start building this over layers on top. So we have, they had OpenShift container platform for the to completely deploy over metal servers. And then we start adding all the rest of the components, like the four G core fundamental Tran, like dividing for GFG radio from Altron, uh, together with Intel come Scott. That's his building. He started building the mobile part of it in Montreal, a San Diego. And then we add on top of that. Then we start adding the IMS core in the public cloud and then we connect everything through the by tuning. >>So a couple of things that I'd like to highlight in terms of coordinating partners, getting to know when they're ready, figuring out an onboarding process that gives them a sandbox to play with their configurations first before you connect them back into the main environment. Partitioning that working simultaneously with Malden, we had a Slack board that was full of messages every day. We had a nonstop, you know, every morning we had a scam call, right then it's like a scrum meeting every morning, just a daily stand up from eight 30 to nine 30. And we continue that all over the day. >>So as her, one of the things I really like to China mobile, uh, when they talked about in the keynote, first of all they said, you know, the problem is, you know, 20 by 2026, you know, it's, it's rainbows and unicorns and you know, 5g, uh, you know, will help enable so much around the planet. Seriously. Um, but you know, today she, she talked about major challenge in the rollout and infrastructure and service and capability. So, you know, help us understand a little bit the hype from reality of where we are with five G what we could expect. >>Absolutely. We are going through the hype phase right now, right? We are absolutely all the operators want FFG service to be delivered for sure. The reason why they want it to be delivered as they don't want to be left behind. Now there are some operators when we in more opportunistic and looking at 5g as a way to insert themselves into different conversations, IOT conversation, um, smart city conversation, right? Um, edge compute conversation. So they're being very strategic about how the big, the set of technologies, how they go deploy in that particular infrastructure and strategically offer capabilities and build partnerships. Nobody's going to rip out their existing three G four G network and replace that with 5g by 2026. It's not gonna happen, but what will happen by 2026 is an incremental phase of services that will be continued to offer. As an example, I'll give you, um, cable providers are looking at 5g as a way to get into homes because they can deploy in millimeter wave band a radio closer to the house and get a very high speed multi-gigabit high speed connection into the home without having to worry about what's your copper look like? >>Do I have fiber to the home? Do I have fiber to the business and so on. And so. So that's actually an interesting, >>okay, so you're saying solving the last mile issue in a very targeted use. >>Absolutely. So that's one. The other area might be running a partnership with BMW Toyota in, you know, some of these car companies to provide telemetry back from cars into their own, you know, operating environment so that they know what's going on, what's being used, how is it being used, how can we, how can we do provide diagnosis before the car actually begins to fail? Uh, big, you know, private environments like oil and gas mining, they are going to deploy public safety and security where all of these, you know, policemen on and safety personnel are required to now use body cams. Now you have video feeds coming from hundreds of people. There are deployment and incidents. Now you can take that information you need high speed broadband, you need the ability to analyze data and do analytics and provide feedback immediately so that they can actually act. So do three, this specific targeted use case, even a country like India where they're talking about using 5g for very specific use cases, not replacing your phone calling. >>I love that point. And it kind of ties back into some of the other things you were saying about the a agility and the operational model. And I relate it back to it. You know, my, again, my perception of some telco maybe 20 years old and that they had a tendency to do very monolithic projects. And you know, when you're out, when you're rolling out a infrastructure across the country, there's a certain, uh, monolithic nature to it. But you're talking about rolling out one, rolling out individual projects rolling out. That's also the advice we give to it. Try it with one thing, you know, try open shift with that one application and then also though, but it takes uh, the upskilling and the cultural model. So true with your telco petitioners who are, we're on Slack, they're with you and I, you know, I don't, I don't know if there's any relation, any other kinds of things to pull out about the mirror of, of the it transformation with telco transformation and colon Turner. That's actually a good point that you bring up, >>right? Look, the costs of building, if I have infrastructure from ground up is extremely high. If they want to completely revamp that. You're talking about replacing every single radio, you're talking about adding capacity more adding, you know, backhaul capacity and so on. So that isn't going to happen overnight. It's going to happen. It may take even more 10 years. Right. I mean in the most interesting thing, that stat stack that I saw was even LTE is going to grow. LTE subscriber count is going to grow for the next two years before it flatmates. So we're not going to LTE four G that's been around for a decade almost. Right. And it's going to still grow for the next two years, then it's going to flatten and then you'll start to see more 5g subscribers. Now back to the point that you were bringing up in terms of operational model change and in terms of how things will be I D principles applying it principles to telco. >>Um, there are still some challenges that we need to solve in Coobernetti's environment in particular, uh, to address the teleco side of the house. And in fact through this particular proof of concept, that was one of the things we were really attempting to highlight and shine a light on. Um, but in terms of operational models, what use applicable and it will now be totally applicable on the telco network, the CIC pipeline. There's delivery of applications and software that testing and integration, the, you know, um, operational models. Absolutely. Those, in fact, I actually have a number of service providers and telcos that I talked to who are actually thinking about a common platform for it end telco network. And they are now saying, okay, red hat, can you help us in terms of designing this type of a system. So I think what could speak to you a little bit about, uh, in this context is how the same infrastructure can be used for any kind of application. So you want to talk about how the community's platform can be used to deploy CNS and then to deploy applications and how you've shown that. Yeah. Well this is what, >>what we have been doing, right. So we have, uh, the coordinators platform does, is actually deploy and the services we have, all these partners are bringing their Cloudnative uh, function, uh, applications on top of that, that what we are calling the CNF the quantities and network functions. And basically what we were doing as well during the whole process is that we have, those partners are still developing, still finishing the software. So we were building and deploying at the same time and testing on the same time. So during the last four months, and even I can tell you even just to deny >>even last night, so the full CACD pipeline that we deploy in ID side, here it is in operation on the network side. >>Well yeah. So, so I, I want to give you the final word cause you know, John was talking about it cycles, you know, if you think about enterprises, how long they used to take to deploy things, uh, and what cloud data is doing for them. Uh, it sounds like we're going through a similar trends. >>Absolutely big in a big way. Um, telcos are actually deploying a private cloud environment and they're also leveraging public cloud in mind. In fact, sometimes they using public cloud as sandbox for their development to be completed until they get deployed and private. Claremont, they still need the private time enrollment for their own purposes, like security, data sovereignty and uh, you know, their own operational needs. So, but they want to make it as transparent as possible. And in fact, that was one of the things we want to also attempted to show, which is a public cloud today, a private cloud and bare metal, a private cloud on OpenStack. And it was like, and you know, it came together, it worked, but it is real. That's more important. And, uh, for enterprise and for telcos to be literally going down the same path with respect to their applications, their services and their operational models. I think this is really a dream come true. >>Well, congratulations on the demo. Uh, but even more importantly, congratulations on the progress. Great to see, uh, you know, the global impact that's going to have in the telecommunications market. Definitely look forward to hearing more than. >>Thank you very much. Thank you. The opportunity to >>actually be here. All right. For John Troyer, I'm Stu Miniman back with lots more here from CubeCon Claude, date of con 2019 in San Diego, California. Thanks for watching the queue.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by the M wear and its ecosystem partners. >> Welcome back here to San Francisco. Where? Mosconi Center right now. And for Veum. World 2019. Gorgeous Day outside, by the way. Great. To be here on the West Coast with Sam Warner right now is the vice president of offering management of storage at IBM. And I'm joined by Stew Minimum as well. Good to see you still haven't singing along. >> Great to see you, John. And yeah, you know, beautiful day outside. If we're in Vegas, I'm sure will be sunny, but we sure wouldn't be >> outside. No, no, I love it Here. Thanks for joining us. Glad to have you here on the Cube way. We're kind of joking. Before we came out about how you said, you know, I'm in the storage, but you have to be very careful about how you described at the some people because they want to get a riddle in unit from you. That's right away. So? So we know. What storage? What side of that? L'm what we're talking about here. Let's just talk about the big picture right now that just in terms of of what's going on in terms of stories that some of the I guess larger concerns that you have these days is people go multi cloud in hybrid cloud. Um, it presents a whole different array of challenges for you and your team. I would assume >> that's right. You know, you often hear people talking about modernizing their applications for the cloud world, and they're focused on how do they rebuild and re factor their applications for future? The other thing they really need to think about is how do they modernize their data protection? You have to think about how you're gonna manage that data in a multi cloud world. Is your data protected on premises and in the cloud, you have to think about new threats that are emerging. Organized crime is behind a lot of these data breaches, you see, and the malware attacks. You have to think about that and then you always hear about A. I am trying to unlock all of the data to get valuable insights for an organization. How can you leverage that data that in the past has just been a back up there to protect you. Now how can you use it for valuable sites for your business? So modernizing data protection that's spent a lot of time talking about these days. >> Sam VM World has always been a great ecosystem show, and over the years, certain things that have been front and center. I remember when the launch NSX networking was there many years, people called the storage world. I walked through the expo floor and you could almost say, You know, this is data protection world. I saw big booths. I see lots of pomp and circumstance. You know, big companies like IBM. Of course, I have a strong presence there, and a whole lot of startups maybe give >> us a >> little context. Is toe kind of why there's so much on data protection? Because it's not like this is a new thing, but, you know, definitely is, You know, more hot in buzzy er than that has been in a long time. >> It's a really interesting observation. Actually, we used to call this the biggest storage show there was. And now when I walked in today to the Expo floor, it was every data protection company just big and bright. And And I'll tell you, it's all the things that I mentioned, right? The whole everybody has to back up their data. If something happens, you need to be able to recover, so it's really important. And and the CEO of IBM, Ginni Rometty, always talks about data as the next gold. The best resource, right? If you can unlock that data, you get a competitive advantage, so obviously have to protect it. I think that there's this big revolution going on in data protection because of all the additional value could get out of that data. The one thing I always have to remind clients. You'll see a lot of startups you walk out on the expo floor. But it's not just your new applications that need to be backed up. It's your entire enterprise. That data. When you think about a I, it's about harvesting value from all those legacy applications as well. So I think you gotta have a full suite of data protection. >> You hit on something that I'm sure your colleagues seem throughout the industry. All they also deal with you talk about cyber resiliency and making sure that you have the best protections against what are becoming increasingly Mork complex, sophisticated intrusions. Eso How has that evolved, say, over the last 345 years to where we are now in terms of putting up that safeguard against you know, the level on actors and knowing that the stakes are that much higher now than they might have been in the past. >> You know, an IBM has always been a leader in this space. When you think about the strongest protection against cyberattacks, it's tape you can actually air gap your data, you move it off line completely. You put it on tape in the native safe. By the way, our tape business is growing like crazy because as data grows, you need somewhere to put it in. The best economics in the most safe place to store it is actually on tape. But what you see happening, the change is coming is really about adding Maur intelligence in the software because you need a certain amount of your data online. So how do you keep that data online and keep it safe? You have to be able to detect attacks, and you have to have software in your system that can actually protect the data in real time. So I think you're seeing a lot more intelligence. We'd call it a I driven data protection, And that's some of stuff we're working on our data protection portfolio. >> Sam. Wonder if you could help us unpack that a little bit because, you know, when we look at, you know, machine learning or a eye out there. You know, we've talked about intelligence and automation in the storage world for decades, but data is very much dispersed, and and I think part of it is people alone could not manage this environment that, you know, it's no longer something. I could just turn a key, unlock it and keep it in there. It's now, as you said, it's multi cloud. I've got sass applications and everywhere. So you know, where is that a I going to help in? What is IBM, you know, got available today to help >> write great great questions. So, first of all, the great thing about focusing on the data protection part of it is it is part of your whole data strategy. It needs to be, at least if it's not you have a problem, you're exposed with spectrum. Protect will actually show you which of your data is exposed and not being protected. Giving a whole list view of your environment. For example, in a V M where environment will show you all of your v EMS and show you which ones aren't protected. So, you know, and then what we do give me a real world. Examples. Since we understand what's happening at the data in real time, if we see something like the D duplication rate change, so you typically get a certain amount of data de duplicated and all this on that rate changes, something might be going on. So we'll notify the administrator. Let's say that all the sudden lots of data starts changing outside, the normal pattern will alerted Administrator and let them know that there might be some bad actors. So there's the types of things we can see in real time. And since we're part of all of the data because you have to back up your data, we have holistic view of the environment. >> Sam IBM has a long, long partnership with VM, where one of the things that really struck me leading up to the show and even in the keynote is the VM isn't necessarily what we're talking about anymore. I joked Veum, where's actually done some advertising at some shows where they put, like, container where and you look at all the acquisitions they've done put things together. You talked about cloud native pieces. So you know, where's the relationship that IBM has with the, um where where is that going? And how are you ready for that containerized micro service, multi cloud world that we're all heading towards? >> Yeah, that's a great question. And by the way, if you talk to customers, I would guess 80% plus of them will tell you that their biggest concern for their container environment is how to do data protection. And it's certainly immature compared to, ah, the ecosystems that have built up around VM where AH, however, there's a lot of focus on it were focusing on an IBM research is focusing on it, and we're building drivers that go underneath that actually do that data protection, and we'll be coming out with application aware data protection for containers over the next quarter in years to come. That's one of our big focus areas. Ah, and it has to be for both on premises on your private cloud. Also going into the public cloud. As you said, you need one holistic way of doing that. Pratt detection across >> both. How's the nature of of attacks changed in terms of of the intrusions that you're detecting now? How is that morphed as technology's advanced that I'm sure the the offense, if you will, has advanced a swell >> significantly? I mean, they become significantly more sophisticated, of course, on you see them everywhere and in fact, some of the more recent ones. I'm not going to name any names or even happening in the cloud, right? So you failed to properly deploy an application in the cloud. It's not the clouds fault, necessarily. It's how it's being used and you leave the back door open. And there's armies of people that are being paid a lot of money to find those, uh, those gaps and go after them. So it's near impossible to close all those gaps. So you need intelligence running underneath that can detect Aah these intrusions without proper awareness and protection. You know, some of these things can go six months to a year without being detected. So you gotta you gotta be more on top of the thing. >> And how exhausting is that? I mean, just in terms of of sheer, you know, brain power, if you will. But it's just the fact that you play defense all the time. You don't get the throat, the long ball yourself, right? You have to be on the safe guard. You have to be on the defensive. And I'm sure you'd like to be on the other side of the defense, everyone. So all right. A little offense, but you can't s o. How literally. How tiring is that to be on the defensive like that? >> When you talk to a C suite person in the company, this is what's keeping them up at night. They don't want to be the next one on the news, and it is daunting. Do I have an application out there with some kind of exposure? And they come to IBM because we have the experience dealing with it. We've got decades of experience dealing with security and, uh, and we have led the way, and a lot of the things you can do around data breaches and protecting your data. So So they come to us is ah, reliable partner that has the experience. There's a lot of startups out there that are entering the space. I don't think that they bring the same level of experience that we have to be able to detect and respond to those problems. >> Yeah. So, Sam, we talked about the show floor. There's a lot going on there. What? Your team doing a lot of the show. Maybe give us a little sneak peek. For those people that aren't here at the show is toe. You know what they're missing. If they if they didn't come to check out all that IBM is doing >> what we're doing so much exciting stuff. We've got a heavy focus on Sybers and leases we talked about in data protection. Ah, we're also doing a lot around cognitive and in a I and helping customers accelerate >> Ah ah, >> the insights that could get we helped create an end in data pipeline for your data. One of the big challenges for a I is bringing the data together a lot of copying of data and it slows it down. It also prevents. Ah, an enterprise from deploying, uh, the actual models in into production so they can gain insights in no time. We actually help streamline that data pipeline. Of course, we're doing a lot around Hybrid multi cloud is a company. Ah, the acquisition we recently made of Red out. We're bringing those pieces together and providing customers with the real way to manage there are modernizing manage their applications in a hybrid, multi cloud >> world data management. You know, that's a whole different slices it not that that people might be very focused in some respects on security and protection, but now you gotta manage all that stuff too. In a multi cloud environment and a hybrid environment, whole new levels of complexities, >> right? And in containers really start providing you with the ability to modernize your application deployed on premises or give you a consistent way to deploy it on the cloud. One of the things we do in our software defined storage portfolio is provide you one common management data plane that extends from on premises to the cloud. So you can really create data portability for your application as you modernize it, >> Sam. I mean, one of things I heard very loud and clear for the M. Where is, you know, we're gonna give you everything from where you are today to where you want to go. I think IBM got a little bit of legacy experience with doing those kind of solutions. >> That's right, Andi. We've been doing it for quite some time, and that's a big focus area for ours. I was joking that in the keynote this morning, a lot of it sounded very familiar to me. It's things that we've been talking about for a while. I'm excited about where the m where is going. I think it's very consistent with our strategy as a company, as an IBM company. >> Well, thanks for the time. Glad to have you here on the Cube. Good luck with the move to North Carolina guy. New York guy headed to Raleigh. So, uh, uh, you love it. The great city. Sam Warner joining us here on the Q back with more live from San Francisco. Right after this time out

>> Narrator: Live from Anaheim, California, it's theCUBE, covering Nutanix .NEXT 2019, brought to you by Nutanix. >> Welcome back everyone, to theCUBE's live coverage of Nutanix .NEXT here in Anaheim, California. I'm your host, Rebecca Knight, along with my co-host, John Ferrier. We have two guests for this segment. We have PJ Farmer, she is the Director, Cloud Product Management at TierPoint. Thanks so much for coming on theCUBE. >> Thank you, I'm very excited. >> Rebecca: And we have David Hines, VP, Architecture and Engineering at TierPoint. Thanks, David. >> Yes, thank you. >> So, for our viewers that maybe unfamiliar with TierPoint, can you tell us all about this St. Louis based company, what you do, give us an introduction. >> Oh, absolutely. So, TierPoint is a managed services, data services, and colocation provider. We have a broad footprint. We have over 40 data centers in the United States, and we have a broad portfolio of services we offer because we're really interested in meeting customers where they are in their digital transfortation, or transformation, excuse me. So everything from colo to cloud and beyond, we offer because customers come to us for a consultative approach. They have a problem, they needed solutions, and we can offer them those solutions, right. So we manage all of that. >> So you're helping them with their digital transformations and everything. >> Absolutely. >> And where does Nutanix come into play here? >> So, Nutanix is a part of that cloud services really that we're offering our customers, but also giving them a dedicated environment really that they can manage their workloads, but also have some more control, security, compliance, so that overall, the customers end up with a solution that helps them drive their business forward. And of course, TierPoint, our goal is to make sure that we're taking care of all that underlying infrastructure and systems and components, so again, the customer can focus on driving their business forward, and taking that burden off of IT and Nutanix is a great platform that really helps enable us and enable our customers, at the end of the day. >> Talk about the technical challenges you guys had before Nutanix, after Nutanix. What changed, what was the journey like, how did the door open up for them? >> Yeah, that's a great question. So, I think overall, we as technologists, work very hard to piece together solutions, varied solutions, to provide a platform for our customers that they can consume, but that is challenging, right, as a company, technology changes quickly. There are a lot of different vendors in the marketplace offering a lot of different technologies, and I think one of the things that we see as a huge value for Nutanix, is they've got a very complete platform, across the spectrum. It's not just a box with compute and storage. It is so much more than that, and so for us, that's very exciting, it's very intriguing, and something that really helps us be efficient, and also our customers, be efficient. >> So, digital transformation is something that we're talking about so much, on theCUBE in general, here at this show. What are you hearing from customers and what is sort of their bugaboos and their pain points? >> So, we recently had a customer who, their hypervisor of choice is something they're super familiar with, right. They have a great amount of comfort, but over time they can see, there could be some cost savings in Nutanix, with going with the Acropolis hypervisor that's included. So our customer came to us and said, hey, can you help us with this? Said, absolutely. So they are in our data center, we're taking care of them, we are consulting through their transformation and they are starting out with what they're comfortable with and as time changes and as they mature and transition, we're gonna help them get there, right. We're gonna help them change, if it's a hypervisor, if it's a different service, if it's a different way to set it up and present it out to their innovative IT developers, right. We're gonna help them do that. >> Talk about, can you guys share your insight into how you're operating the business? I mean obviously, you've got customers, a lot of customers. What's it like, operating this? 'Cause you got developers out there who want applications to be supported. I'm sure you got latency challenges around. We went to the cloud, a lot of multi-cloud conversations. People still gotta store stuff in their data centers or colos. So the edge, the network change, all these things are evolving. What's going on inside your company, in terms of how you operate? >> So, that's a great question. So, it is challenging to keep up with that landscape as it evolves but we are investing heavily in that. So the great thing about TierPoint, is we are in these edge markets. That is one of our real value adds, and so we're investing very heavily in our network. We also have some really strong partnerships with carriers that give us that on-ramp into the hyperscale. So it really helps complete that multi-cloud story that customers need. So yeah, they can come to us, colocate that equipment that they really have to hold on to, mainframes, mid-range servers, other legacy systems, while gaining that connectivity to those hyperscale environments. And then there's the middle, the middle where we provide a layer, like Nutanix, that gives them that enterprise type cloud. But again, it's dedicated to them, it's in our data center, it's local to their other systems, while also getting that reach to the hyperscale. So it's a really, really powerful story for us. >> On the hypervisor challenge question, this is interesting, we hear people saying, I got Hyper-Vi, I got Hyper-V, I got VMware, I wanna just use, Nutanix' got their own hypervisor. AVH has been an interesting product for Nutanix. The full stack is compelling for a lot of customers, but you guys probably have a lot of customers who wanna parole their own, or bring their own hypervisor. How do you deal with that, does that fit in to the value proposition? >> Well, I think there is some talk about the hypervisor, maybe being irrelevant, like it's obsolete, it's not something to be concerned about, and I think Dave said it earlier, best today, he said that-- >> John: You could be nice when you say that, by the way. >> I'm sorry, what? >> John: A lot of people are saying that. >> Well, yeah, a lot of people are saying that. I just think it's less of a focus, right, because TierPoint helps people focus on what is innovative, what is your business outcome, what are you really doing for your business? So I feel like the hypervisor is just less of a focus, right, than it is necessarily, not important. >> It's more commodity now. >> Yeah. >> It is, and we don't want the customers to have to focus on that, because again, IT really needs to drive business, not be a drag on business and so the less that they have to focus, as an IT organization, on the maintenance and management of infrastructure, and even up the stack towards operating systems, where we can take that burden off of them, then again, they can be a leader for their business and driving the business as a whole, not be held back. >> Okay, what's the playbook for doing that, not being a drag on the business? Because that's what everyone wants to do but they might have legacy stuff. What's the playbook? >> The playbook, is being a part of that business discussion and when the business itself is making decisions about how to drive forward, IT has that seat at the table, and again, is thinking about, how can we drive savings or cost cutting, how can we enable transactions, how can we enable the customer base? And not thinking about, oh, do I have my storage system updated, am I dealing with the old boxes that I have to replace, and do I have power and cooling problems in a data center. They don't need to be dealing with that. They need to be up front with the business, making business decisions. >> What you're talking about, really represents a complete shift in the role of the technologist. Do they have the skills to be thinking about, they obviously, can think about more than just the maintenance, and do I have the storage, and things like that. But does there need to be much more education around these business strategy questions that they should be thinking about? As you said, this is their role, to really help the business transform. >> David: Yeah. >> So, I think that often times I see people feel like they are just technology, oh, I'm just hands on keyboard, I'm doing this, but what their exposure and their natural interests, lead them to have a broad picture of how things can work, what is expected, and how do these things operate, what have I had experience with, and when they have a seat at the table and they're making, with the business decisions, they have value to add there. Right. That value is in that perspective, what they've seen, because that may not be forefront for some of the other business leaders at the table, right? And it is a collaborative discussion, that generates quality output, that generates innovation, that generates thinking outside of the box, and unique solutions that really lead the market. >> But I do think it really does, to your point, mean new education, new skills for these IT technologists and so that's part of, we've gone through this at TierPoint, transforming the engineers and the technologists that we have working on our staff and really teaching them new ways to work, new ways to think, new ways to collaborate, so that they're helping us move the business forward and not sitting behind a keyboard, isolated from the business itself. >> I was gonna ask you about the skill gap 'cause one of the things that comes up as the shift at DevOps is happening, with more development going on to make the infrastructure programmable so it's not a drag on the business, changing roles are a huge thing 'cause Nutanix essentially, the values, they enable new things to happen, the result is consolidation, so it's not consolidation as the primary. You get consolidation as a benefit of what they do. So people be like, whoa, what do I do now? But the benefit is people shift. So the IT Ops role has changed, it's best probably to get it before the operations. Where do you guys see that trend evolving? Because if this continues with AI and automation, you can almost imagine it's completely programmable infrastructure. >> Yeah, we do see a consolidation of Siloed Technologists, right, so this idea of I'm only a network engineer, I'm only a storage engineer, I'm only a cloud engineer, that is definitely going away and again, we've done this at TierPoint. We've kind of mixed those roles, right, educate the staff, but from additional education programmability, somebody'd be able to do the automation and the development in an engineering role verses having a separate development team working on that. It's gonna be really important as companies evolve their groups. >> I think you've had a lot of infrastructure engineers that 20 years ago, 15 years ago, knew Pearl, they knew scripting, they knew these things, and as time has gone on, now they know APIs, now they know RESTful APIs, now they're interacting, but we all know, in IT, it's always change and it's always learning, I mean, you got into this, right. So I think a lot of the infrastructure engineers, over time, are finding they were already automating things in some ways and they're becoming more mature in the ways that they automate things, right? I think it's a great transition as they go on, yeah. >> So, talk about the relationship with Nutanix. What's it like, partnering with them? They got a lot of momentum in enabling a partner strategy. We saw news with Hewlett Packard enterprise, potential channel opportunity there. They're a partner centric, they're partner friendly. What's it like, working with them? >> Fantastic, I mean absolutely fantastic, from go, see our customers were coming to us wanting to, they brought Nutanix to us, honestly, they came up. A lot of people that use Nutanix are like fans of Nutanix, right, you've seen some of those, and so our customers brought Nutanix to us, and as we began to see this trend, and we decided to make a private cloud product out of it, we engage with Nutanix. They've provided so many resources, they've been there for us, been very responsive. It's really been a natural and easy collaboration with them. And like you said, they do everything through partners so that has made it easy. We are another partner, right? They enable us, they know that part of their success is our success and vice versa, so it's almost like an extension of the team, which is fantastic. >> So what do you say to the new Nutanix customer that comes in, 'cause I agree with you, they're very hardcore loyal fans because they took a chance and they see benefits, so they took a chance and it paid off. It's like gambling, you put a number on the roulette wheel and it comes up black or red, whatever. They've had great success there and their promoter score is 90. But what about new people, are like, hey, I heard this Nutanix thing is out there, or software. How are you guys looking at these new opportunities, when is Nutanix a good fit? 'Cause you gotta balance it all for all your customers. >> Yeah. >> Depending on what they wanna do. >> Yeah, I mean, that's a great question. Honestly, for us it's really about enabling the higher order applications and workloads for our customers, so I don't know, unless the customer themselves is really bringing Nutanix to us, that we're having that conversation. It's really like, look, this is a solution that's gonna provide you the capabilities, and again, trying to not have the customer really worry too much about that and let us own that relationship, and as PJ mentioned, Nutanix has invested very heavily, not only in the partnership but also developing this platform and solution for us so it's been-- >> So you guys could provide it, if no one asks, just provide the best solution. >> Absolutely. >> Right. >> And that's the key, right? >> I want to ask you a question about geographics. So, I'm based in Boston, John's based in the Valley, you're a technology company based in St. Louis. I'm interested, we may just come to this with our east coast, west coast biases and I'm just, what's it like to be a technology company in St. Louis, in the heartland, do you feel part of the community? >> Oh absolutely, in fact, St. Louis really has been, you see several articles about all the startup tech in St. Louis because it is an affordable place to live. You have access to all the cities, usually direct flights, right, so from a community perspective, there's a lot more technology startups than you might think in St. Louis, but they do have access to-- >> Rebecca: And great barbecue too. >> Great barbecue, absolutely. And it really is a beautiful place. You also have lots of parks, lots of rivers, lots of outdoor, I mean, it's kinda surprising, honestly. We have a main technology center also, in Raleigh, North Carolina, so we are split between the two. >> David: Yeah. >> We do a lot of flights back and forth. >> WWT is out there too. >> RTP, yeah, the research truck will park in North Carolina, as a very big tech hub, so that split really provides a balance. There's a very big business hub in St. Louis and a lot of collaborational partnerships there from the business side, but also that Raleigh Tech Hub on the east coast is really a huge benefit to us. And a lot of our partners are there, >> PJ: And like a lot of-- >> Nutanix actually, is right there, down the street. >> We'll have to come down and visit you in North Carolina. My daughter's going to UNC >> Oh, okay. >> So I gotta find some excuses to get down there. >> That'd be great. >> Anytime. >> Maybe see your business. >> Some TierPoint shows. >> Oh, that's right. >> Exactly. >> And do a little, couple interviews. >> Anytime. >> Anytime. >> Well, thank you both so much for coming on theCUBE. It was great talking to you. >> Yeah, we really enjoyed it. >> Thank you for having us. Thank you so much. >> Thank you. >> I'm Rebecca Knight, for John Ferrier, you are watching theCUBE. (upbeat music)

>> Announcer: Live from Boston, Massachusetts. It's theCUBE, covering Red Hat Summit 2019. Brought to you by Red Hat. >> And welcome back to Boston. Here on theCUBE we continue our coverage of Red Hat Summit 2019. We just had Jim Whitehurst on, President and CEO, along with Stu Miniman, I'm John Walls. And now, we turn to the IBM side of the equation. Arvind Krishna is with us, the SVP of Cloud and Cognitive Software at IBM. Arvind, good to see you this morning. >> My pleasure to be here, what a great show. >> Yeah, absolutely, it has been. I was telling Jim he couldn't have a better week, right? Monday had good news, Tuesday great kick off, today again following through great key notes. We were talking briefly, a year ago you were with us on theCUBE and talking about IBM and its forward plans, so on and so forth. What a difference a year makes, right? (laughs) >> We couldn't predict that you'd be in the position that you are in now, so just if you can summarize the last year and maybe the last six months for you. >> Sure, and I think it's more building on what I talked to you about a year ago, I remember last May, May of 2018, in San Francisco. So I was exposing very heavily, look the world's going to move towards containers, the world has already embraced Linux, this is the time to have a new architecture that enables hybrid, much along the lines that Jim and all of the clients as well as Ginni and Satya were talking about on stage yesterday. So you put all that together and you say that is what we mentioned last year and we were clear, that is where the world is gonna go. Now you step forward a few months from there into October of 2018 and on the 29th October we announced that IBM intends to acquire Red Hat, so then you say wow, we put actually our money where our mouth was. We were talking about the strategy, we were talking about Linux containers, OpenShift, the partnership we announced last May was IBM software products together with OpenShift. We already believed in that. But now this allows us coming together, it's more like a marriage than sort of loose partners passing each other in the middle of the night. >> Right. >> And that then goes forward, you mention the news on Monday so for our viewers that don't know it, that's the news that the United States Department of Justice approved merger with no conditions. So now we've got to wait on a few other jurisdictions and then hopefully we can get together really soon. >> John: Right, right. >> So, I think back to looking at IBM over my career. I think the first time I heard the word coopetition it was related to IBM because IBM, big ego system, lots of innovation over its long history but as we know the bigger you get, the more chance that your partners are also going to overlap with you. Seeing Ginni up on stage and a little bit later seeing Satya up on stage is really interesting. You look at the public, multicloud environment, everybody doesn't need to work together, you talk to your customers, and I'm sure you find today it's not the future is hybrid and multicloud, that's where they are today even if they're trying to get their arms around all of it. So I'd love to hear your, with the mega trend of Cloud, what you're seeing that competitive but partnering dynamic. >> Look, I want to step back to just give it a little bit of context. So when you talk about companies, let's go back to the beginning of computing, of PC. The PC came from IBM operating system, DOS came from Microsoft. Then you had Windows setting up the IBM PC. So that's coopetition or is that pure partnership? Right, I mean you can take your pick of those words. Our value has always been that we, IBM, come to clients and we try to service problems that actually help them in their business outcomes. Then whoever they have inside their IT shops, that they depend upon, has to be a part of that answer. You cannot say oh, so and so is bad, they're out. So it always had to be coopetition from the lengths that we came to with our clients. We always build originally computers, other people's software are on those computers, other people provided services around it. As we went into certain software space, ISVs and so on came together. So now that you come to the world of Cloud, we hold a very fundamental belief and I think we heard a number of the clients talk about this. They are going to be on multiple public Clouds. If they are going to be on multiple public Clouds, they are also going to have traditional IT and they are also going to have private Clouds. That's the world to live in if I look at it from the viewpoint of that infrastructure. To now come to your direct question, so if that's the world they're going to live in hopefully one of those public Clouds is ours but the others are from other people. The private Cloud, we believe the standard for that should be OpenShift and should be containers. So as we go down that path, then you say if you want to take that environment and also run it on the other publics. That's good for the client, that's good for the publics, that's good for us. It's really a win, win, win. And so I think the ability to go do this and to make that play out, it really goes back to my thesis from more than a year ago where we talk about this is a new set of standards and a new set of technical protocols emerging. >> I want you to take us inside the conversations you're having with CIOs when you talk about Cloud because when Cloud first came out, it was well, the sins of IT is this heterogeneous mess and it's complex and expensive. Cloud's going to be simple, homogeneous and cheap. I look at Cloud of 2019 and I don't think I would use any of those adjectives to define what most people have for Cloud. Where are they today? Where do we need to go as an industry? >> Glass house computing, all centralized, all homogeneous, not all at heterogeneous. Oops, 15 flavors of Unix, all different, none of them really talk to each other. Oops let's go to desktop computing, we begin with a pure architecture, maybe Novell which doesn't exist, maybe it does, I don't even know. Oops, back to this complete sprawl of client server. Okay let's go to Cloud back to centralized glass house. >> You're making me dizzy. >> Oops, let's go to-- (laughing) >> Let's go to lots of public, lots of SaaS, lots of private, back to this thing. So, in each of these a different answer came on how to unite them. I think when we look at that Unix and client server sprawl, I think TCP/IP and the internet came together so that you could have all these islands talk to each other and be able to communicate. All right, great, we've got 20 years of victory on that. Now you're getting these things, how do you begin to workload across because that becomes the next level of values. Not enough to communicate. Can I really take a workload? A workload is not just a VM or just one container, it's a collection of these things integrated together in a pretty tight and complex way. And can we take it from one place and move it to the other? Because that goes to the write once, run anywhere mantra which by the way also we come to about every 20 years. I think that's the magic of this moment and if we succeed in making that happen, which I have complete conviction we will, especially together, then I think we give a huge value back and we give freedom to every CTO and every CIO. >> You paint this really interesting whoops picture, I love that, it's really a back and forth, right, we're swinging and almost there's a cyclical nature to this is what you're I think implying. What's to say in your mind that this isn't just another whoops as opposed to this being a permanent shift in the paradigm? >> I think it's, the reason I think that it's going to be cyclical is we tend to, you know whether you go to construction and real estate, you talk about capacity and factories. You see an opportunity and people tend to go one way. The only way to correct culture if you're sitting in one place is to sort of over-correct the other way, now you're over-corrected. Now you have to come back. And always when you over-correct one way, then suddenly all those other benefits you've lost, so then you've got to come back to get those benefits. After about 10 years, probably, you can debate 10 or 15, you're done. You've exploited all those benefits, now you need to go get those benefits. Because the technologies have changed, it's not just that you're going back to what was. We're going very conceptually from centralized to distributed, to centralized to distributed. And by the way, another one that's getting out from pure centralized is also Edge. Edge in effect is another distributed, so you put those together and you say I went there, but then I lost all this stuff, now I need to get back to that stuff. If you've got too much there, you'll say, no, no, no, I need to get some of this back. So it's going to go that way I think for every, if you look at it, the big arcs are back, the pendulum, what do you call it, the pendulum swing, is I think about 20 years it looks like, right? 1960, centralized, 1980, PC, 2000, you could say was the peak of the internet. Hey, 2020, we're in Cloud. So looks like about 20 years, looks like. >> All right, so, I like what you were saying when you talk about that multicloud environment, the application is really central there. IBM, of course, has a strong history, not just in middleware but in applications. What do you think will differentiate this kind of next wave of multicloud, how will the leaders emerge? >> Right, so if you look at it today, you run infrastructure. I think OpenShift has done a great job of how you help run their infrastructure. The value in our eyes in putting the services on top, both coming from open source as well as other companies that are running like an integrated package. This is all about taking the cost out of how do you deploy and develop. And if we can take the cost out of that, you're not talking about that five to 10 X as we heard a couple of the clients up on stage yesterday with Jim talk about. If we give that to everybody, you can sort of say that 70% which goes into managing your current and only 30% on innovation. Can you shift that paradigm completely? That's the big business outcome that you get. As you begin to deliver these towers of function on top of the base. You need to start at base, without one base, you don't know how to say, I can't deal with these towers of function on thirty different things underneath. That engineering answer is a terrible one. >> In terms of the infrastructure market, things keep changing, right? Consolidating, EMC doing what they're, you know what happened there. How do you see your play in that market? First off, how do you see infrastructure evolving? And then how do you see your play in that going forward? >> Infrastructure has always been big, in the end all the stuff you talk about has to run on infrastructure. I'd say the consumption model of how you get infrastructure is changing. So it used to be that many years ago, people bought all their own infrastructures. They bought boxes, they put in boxes, they did all the integration. And what came from the vendor was just a box. Then you went to, all right you can get it as a managed service or you can get it in Cloud which is also a pay by the drink but you can now turn it up and down also. So it's not a either or, people want all of these models. And so our role in infrastructure, certain things we will provide. When it comes to running really high mission critical workloads, think mainframe, think big Unix, think storage, of that ilk; we'll keep providing that. We believe there's a lot of value in that. We see the value, our clients appreciate that value. That workload turns up, but it's the mission critical part of the workload. Then in turn we also provide the more commodity infrastructure but as a service. We supply a large amount of it to our clients. It comes sometimes wrapped in a managed service, it sometimes comes wrapped as a Cloud. And we will also consume infrastructure from other Cloud providers because if people are providing base computer, network and storage, there is no reason to presume that our capabilities wouldn't run on top. If I go back to just February, we announced that Watson will now run. We said we used the moniker Watson Anywhere to make the assertion that we will run Watson anywhere that we can run the correct containerized infrastructure. >> So, Arvind, what's the single most pressing issue that you hear from organizations with respect to their technology strategy and how's IBM helping there? >> I think modernizing applications is the biggest one. So people have, typically a large enterprise will have anywhere from 3,000 to 15,000 applications. That's what runs the enterprise. We talk about everyone's becoming a software company, right, I mean that was one of the quotes and everybody is becoming a tech company that was I think what one of the clients said, hey, we think you're a bank, you're actually a tech company. What that says is that you're capturing the essence of all the business processes. You're capturing the essence of the experiences. The essence of what regulators need, the essence of how you maintain customer and customer of our clients, trust, back to them. It's maintained through this collection of applications. Now if you say I want to go change, I want to become even more client centric, I want to insert AI into the middle of my business process, I want to become more digital. All of that is modernizing applications. The big pinpoint they all have is how do I modernize them? What becomes that fabric in which I modernize? How do I know I'm not locked into yet another spaghetti mess if I go down this path? Because we've seen that movie also. So they're interested in, hey, I want to be clean at the end of this. I want freedom to be able to move it. And that is why I'm so passionate about, the fabric is based on open source, the fabric's got to be based on open standards. If you go there, there is no lock-in, and it's not a spaghetti mess, it is actually clean. Much cleaner than any other option that we can dream of is going to be. And so if we go down this path, now you can open yourself up to a much faster velocity of how you deliver innovation and value back to the business. >> Okay, so, I'd agree first of all when you talk about modernization, the applications that they have, that's the long pole in the tent. We understand compared to all the other digitization, modernization, this is the toughest challenge here. I'm a little surprised though that I didn't hear the word data because they don't necessarily articulate it but the biggest opportunity that they have has to be tied to data. >> Well to me, when I use the word application here, and you heard me use the word AI, can I insert AI in the context of an application? Now, why is it not being done today? To get the value out of AI, the data that powers the AI is stuck in all the silos, all over the place. So you've got to have, as you do this modernization, it's imperative to put the correct data architecture so that now you can do the governance, so that you can choose to unlock the appropriate parts of the data. It's really important to say the appropriate parts because neither do you want data sort of free floating around the globe, because that is the value of a company at the end of the day. And so that unlocking of that value is a huge part of this. So you're absolutely right to ask me to express it more strongly when I use the word application, I'm inclusive of not just runtime but always of the data that powers that application. >> Arvind, it was again a year ago that we were talking to you out in San Francisco and you made some rather strong thematic predictions that turned out well. I'm not going to put you on the spot here, but I can't wait to see next year. And see how this turns out. >> I can't let him go before, we had the CIO of Delta who we had on our program. >> Oh, right, right. >> In the key note, made a question about licensing, of course Jim Whitehurst said we don't have licensing but what's your answer? >> I'm willing to offer a deal to Samant. So I think that both IBM and Red Hat do a fair amount of air travel. We'll give him a common license if he can just include Red Hat for whatever IBM pays, just include all the Red Hat travel that is needed on Delta. (laughing) You know just so that the business models become clear and we can go have a robust discussion. >> Out of Raleigh that's a good deal. >> For us. >> That's what I'm saying. That is a good deal. All right, the ball is in your court, or on your runway. Whatever the case may be. Arvind, thanks for being with us. >> My pleasure. >> We appreciate it. And we'll let you know if we hear back from Rahul on that good deal. TheCUBE continues live from Boston right after this. (upbeat music)

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

>> Live from Las Vegas, it's The Cube! Covering AWS re:Invent 2018. Brought to you by Amazon Web Serices, Intel, and their ecosystem partners. >> Good to have you back here on The Cube as we continue our coverage here at AWS re:Invent day one. We're here for all three days so we have probably about three dozen guests lined up here in this particular Cube set and really a delight to be here once again. Our seventh time at this show. I'm John Walls with Justin Warren. We're now joined by Milos Marjanovic who is vice president of product management at Zayo. Milos, good to see you sir. >> Good to see you too, thanks for having us. >> You bet, and Kevin Sheehan, who's the chief technology officer at Ciena. Kevin, how are you sir? >> Very good, thank you. >> Good. >> Nice to be here. >> Let's talk about your respective companies first. Just to let folks who are watching know what you do and then what do you do together? So Milos, first off tell us a little bit about Zayo. >> Sure, so Zayo is a communications infrastructure provider. Primarily we own and operate fiber-optic networks. Now, we're here to exhibit a product called CloudLink which specializes in getting people into the cloud by bypassing the public internet. So there's some inherent values associated with that. Because we operate at the infrastructure layer, as you get up the stack and you add on software and other solutions on top of that, partners like Ciena are important for us to have more holistic solutions for our customers that want to go into AWS. >> And so, Kevin, yeah when do you come into the picture? >> Yeah, so Ciena, our DNA, we're about 20 years old as a public company. And we've become known as being the best at moving bits across the globe in terms of whether it's for your mobile phone, your iPad, whatever data is moving around the world. And then over the past five or six years we've dove in in a big way into automating the movement of those bits with software, open software, open software platforms. And that's really, with Zayo we're partnered both on moving bits and at automating the movement of the bits as well. >> Interesting. Yeah 'cause moving data around is actually really, really hard and getting that data where you need it to be, when you need it to be there is one of the really intractable problems of the multi-cloud era. So explain a bit more about how it is that you are actually helping customers to do that 'cause everyone's been struggling with this for quite some time. What's the secret? >> So yeah, I can take the first part of that anyway. So you kind of hit it, it is difficult. And I think ubiquity is key. So having a presence where our customers are. So with our fiber-optic network we have over a thousand data centers on our network. So customers that might have had a private cloud solution within a data center that are either in a hybrid model or looking to move holistically into the public cloud, it's kind of like, who are they looking to to help solve for them for their connectivity needs? And that's where Zayo I think is uniquely positioned. Their expectations and being in the public cloud is such that automation, efficiency, things like scalability is also very critical. So that's not just within the cloud environment, it has to extend to on-prem services as well. And that's really where we come in. So we want to maintain that user experience end-to-end for customers where they can log into a portal on our end, configure a connection in real-time and have that turn up, all the way up into their VPC environment with AWS. >> Right. >> Yeah and I think it's fairly complex to tie network services to cloud-based services. And then if you look at enterprise customers that have cloud services today, about 60% of them that have services now have services from more than one cloud service provider. And that's where it gets exponentially more complex and really where automation has a big play. So if you're an enterprise customer of Zayo for example, and you want to have certain types of cloud services from one service provider, maybe AWS and other types of cloud services from a different cloud service provider, you want the ability to move as, in an agile way as possible between service providers and ideally without having people involved in the middle and having it be a very slow and cumbersome process. So software automation really enables the multi-cloud experience for enterprise customers. >> Doing that at scale, as you say, any kind of complex environment or at any kind of scale, it needs to be automated for it to be repeatable and reliable and make sure that it actually works every time. So as a lot of engineering goes into making that work seamlessly, could you give us a bit of a flavor for what it is about the technology that you've created here that actually makes that work nicely and neatly across all these different environments? >> Yeah, so this is where Zayo, as I said, you know, we're an infrastructure provider and we rely on partners like Ciena to deliver some of that automation, at least parts of it. So one of the demos we recently did, we did a proof of concept where a user could log in to our e-commerce platform, it's called Tranzact with Zayo, they can configure a service, a solution end-to-end. So that's the e-commerce, the quote standpoint, and then we have open APIs between that platform and our SDN layer which is powered by Blue Planet with Ciena. And that rides across our infrastructure and so connectivity is configured on the network layer and then open APIs are on the back end with AWS to help provision it into the actual hyperscale environment as well. >> Yeah, so Milos mentioned the open API, so really to be successful at automating multiple platforms like this between multiple service providers, the foundation is open APIs that have to be able to talk to everything in an open way and in a predictable way, especially when things go wrong. So it's one thing to provision when everything's okay but when things start to go wrong you have to be able to adapt the network and adapt the services to things as they go wrong. So we have that built into our platform and fortunately events like this continue to promote openness of APIs. And then on top of Blue Planet, in addition to working with open APIs, we've become very good at creating an open dev-ops environment. So that in a true partnership with Zayo and Ciena, Zayo can go in and actually participate in the journey and actually create the software inside of our scalable infrastructure in order to differentiate themselves from their competitors. >> So what kind of an impact are you having on your customers if you're providing this multi-cloud connectivity or at least giving them confidence, I assume, to make different kinds of decisions, right? Now all of a sudden they have an opportunity to expand an operation or take on something new because you're giving them confidence that you can pull this off. Is that, are you seeing that? >> Yeah, absolutely. So we were recently announced, we were awarded rather, a Direct Connect Network Competency Partnership with AWS and so I think that award isn't necessarily just given out at random, if you will. So us being able to earn the trust of AWS and that being visible to our customers is certainly a value prop in gaining users' trust. That also opens the door for us to springboard in other value-ad solutions for our customers to have more of a turnkey approach. We talk a lot about automation, security, ease of use. That needs to continue to extend. That's a value that AWS holds dear and they expect their partners to have that same approach to the solutions as well. >> So what are you looking for at this show as a signal for where the industry is heading? You mentioned open APIs. We're seeing a lot of conversation about more openness and accepting the idea that there might be other possibilities for deployment other than just one cloud. What else are you expecting to see at this show that will signal where the industry is moving? >> Well of course huge movement to the cloud. Enterprise customers moving more and more to the cloud. You know, if you came here a few years ago things were centered around certain singular applications. And now when you walk around this show floor, pretty much anything under the sun is tied directly into the cloud and some things you never really imagined to be there this quickly. So I think, you know, openness absolutely, but then more and more movement to the cloud and then having the multi-cloud choice, multi-cloud service provider choice for the end customers. >> Yeah, and just to add to that, it's all underpinned by massive workloads as AI, ML, 5G kind of take hold and really are more broadly adopted, that is a lot of data that is moving around. So having that underpinned by a strong network backbone that has high throughput performance, things of that nature, is going to be critical to get data from the cloud to where the eyeballs are, where the users are. >> Do you think enterprises are moving everything truly into the cloud, or are they doing more of a hybrid approach? Where they're having some stuff go to the cloud, some things stay on their own premises, some things actually move out to the edge? Where do you see the enterprises moving? >> Yeah I think it depends on the application. So there's certainly some applications, depending on the type of enterprise, that are best if they're kept inside the four walls of the enterprise, and then they'll go with a hybrid approach. But you know, I think whenever possible the scale and the economics that can be reached if it's truly put into the cloud, you know, definitely pays for itself very quickly. >> Yeah I completely agree with that. I think a hybrid approach is probably going to exist into the future. Now, how that's split 70/30, 80/20, whatever that might be is yet to be determined. But as Kevin mentioned, the scalability in the public cloud ecosystem, and frankly, the immense resources that AWS is putting into some of their products that you can bolt on to kind of vanilla solutions that customers are coming in with, is very difficult to replicate. So I think the scale within the public sphere is going to be quicker, but hybrid will always exist I think. >> Before we cut you loose, what do you want to take away from here? From AWS re:Invent, from the show itself? Go back to Raleigh, head back to Denver, what is it that you take in your hip pocket that you think you can put to practice? >> I think for me it's seeing real time the rate of change that's going on inside of the industry. The thing that we've learned over the past five years or so is that, it's very hard to predict the rate of change that we're living in, right? And we're not even in, for example, a 5G world yet. But we're right on the precipice of it and I think what we're learning and what we're taking away and putting into practice is that the network really has to be as adaptive as possible because it's so hard to predict the amount of change that's coming and when the change is coming. You just know it is coming and you will have to adapt to the change. >> Yeah, and keying off the open APIs, I mean, we're not here to be vendors only. We're not here to be just partners or customers. We want to be all three. And I think the lines that used to divide that I think are now blurring. And the folks that are exhibiting here, including ourselves, I think fall into probably all three categories. And just seeing that ecosystem evolve over time, those lines will continue to blur. >> Well gentlemen, thank you both for taking the time to be here. I know you've got a lot of activity going on this week. Good luck with that, and again, we appreciate the time. >> Thanks so much. >> Thank you. Great to be here. >> Milos and Kevin. Good deal. Back with more here from AWS re:Invent. We are live on The Cube. (futuristic music)

>> Live from New York City it's theCube. Covering Lenovo Transform 2.0. Brought to you by Lenovo. >> Welcome back to theCube's live coverage of Lenovo Transform, I'm your host Rebecca Knight along with my co-host Stu Miniman. We're joined by Madhu Matta; He is the VP and GM High Performance Computing and Artificial Intelligence at Lenovo and Dr. Daniel Gruner the CTO of SciNet at University of Toronto. Thanks so much for coming on the show gentlemen. >> Thank you for having us. >> Our pleasure. >> So, before the cameras were rolling, you were talking about the Lenovo mission in this area to use the power of supercomputing to help solve some of society's most pressing challenges; and that is climate change, and curing cancer. Can you talk a little bit, tell our viewers a little bit about what you do and how you see your mission. >> Yeah so, our tagline is basically, Solving humanity's greatest challenges. We're also now the number one supercomputer provider in the world as measured by the rankings of the top 500 and that comes with a lot of responsibility. One, we take that responsibility very seriously, but more importantly, we work with some of the largest research institutions, universities all over the world as they do research, and it's amazing research. Whether it's particle physics, like you saw this morning, whether it's cancer research, whether it's climate modeling. I mean, we are sitting here in New York City and our headquarters is in Raleigh, right in the path of Hurricane Florence, so the ability to predict the next anomaly, the ability to predict the next hurricane is absolutely critical to get early warning signs and a lot of survival depends on that. So we work with these institutions jointly to develop custom solutions to ensure that all this research one it's powered and second to works seamlessly, and all their researchers have access to this infrastructure twenty-four seven. >> So Danny, tell us a little bit about SciNet, too. Tell us what you do, and then I want to hear how you work together. >> And, no relation with Skynet, I've been assured? Right? >> No. Not at all. It is also no relationship with another network that's called the same, but, it doesn't matter. SciNet is an organization that's basically the University of Toronto and the associated research hospitals, and we happen to run Canada's largest supercomputer. We're one of a number of computer sites around Canada that are tasked with providing resources and support, support is the most important, to academia in Canada. So, all academics, from all the different universities, in the country, they come and use our systems. From the University of Toronto, they can also go and use the other systems, it doesn't matter. Our mission is, as I said, we provide a system or a number of systems, we run them, but we really are about helping the researchers do their research. We're all scientists. All the guys that work with me, we're all scientists initially. We turned to computers because that was the way we do the research. You can not do astrophysics other than computationally, observationally and computationally, but nothing else. Climate science is the same story, you have so much data and so much modeling to do that you need a very large computer and, of course, very good algorithms and very careful physics modeling for an extremely complex system, but ultimately it needs a lot of horsepower to be able to even do a single simulation. So, what I was showing with Madhu at that booth earlier was results of a simulation that was done just prior us going into production with our Lenovo system where people were doing ocean circulation calculations. The ocean is obviously part of the big Earth system, which is part of the climate system as well. But, they took a small patch of the ocean, a few kilometers in size in each direction, but did it at very, very high resolution, even vertically going down to the bottom of the ocean so that the topography of the ocean floor can be taken into account. That allows you to see at a much smaller scale the onset of tides, the onset of micro-tides that allow water to mix, the cold water from the bottom and the hot water from the top; The mixing of nutrients, how life goes on, the whole cycle. It's super important. Now that, of course, gets coupled with the atmosphere and with the ice and with the radiation from the sun and all that stuff. That calculation was run by a group from, the main guy was from JPL in California, and he was running on 48,000 cores. Single runs at 48,000 cores for about two- to three-weeks and produced a petabyte of data, which is still being analyzed. That's the kind of resolution that's been enabled... >> Scale. >> It gives it a sense of just exactly... >> That's the scale. >> By a system the size of the one we have. It was not possible to do that in Canada before this system. >> I tell you both, when I lived on the vendor side and as an analyst, talking to labs and universities, you love geeking out. Because first of all, you always have a need for newer, faster things because the example you just gave is like, "Oh wait." "If I can get the next generation chipset." "If the networking can be improved." You know you can take that petabyte of data and process it so much faster. >> If I could only get more money to buy a bigger one. >> We've talked to the people at CERN and JPL and things like that. - Yeah. >> And it's like this is where most companies are it's like, yeah it's a little bit better, and it might make things a little better and make things nice, but no, this is critical to move along the research. So talk a little bit more about the infrastructure and what you look for and how that connects to the research and how you help close that gap over time. >> Before you go, I just want to also highlight a point that Danny made on solving humanity's greatest challenges which is our motto. He talked about the data analysis that he just did where they are looking at the surface of the ocean, as well as, going down, what is it, 264 nautical layers underneath the ocean? To analyze that much data, to start looking at marine life and protecting marine life. As you start to understand that level of nautical depth, they can start to figure out the nutrients value and other contents that are in that water to be able to start protecting the marine life. There again, another of humanity's greatest challenge right there that he's giving you... >> Nothing happens in isolation; It's all interconnected. >> Yeah. >> When you finally got a grant, you're able to buy a computer, how do you buy the computer that's going to give you the most bang for your buck? The best computer to do the science that we're all tasked with doing? It's tough, right? We don't fancy ourselves as computer architects; we engage the computer companies who really know about architecture to help us do it. The way we did our procurement was, 'Ok vendors, we have a set pot of money, we're willing to spend every last penny of this money, you give us the biggest and the baddest for our money." Now, it has to have a certain set of criteria. You have to be able to solve a number of benchmarks, some sample calculations that we provided. The ones that give you the best performance that's a bonus. It also has to be able to do it with the least amount of power, so we don't have to heat up the world and pay through the nose with power. Those are objective criteria that anybody can understand. But then, there's also the other criteria, so, how well will it run? How is it architected? How balanced is it? Did we get the iOS sub-system for all the storage that was the one that actually meets the criteria? What other extras do we have that will help us make the system run in a much smoother way and for a wide variety of disciplines because we run the biologists together with the physicists and the engineers and the humanitarians, the humanities people. Everybody uses the system. To make a long story short, the proposal that we got from Lenovo won the bid both in terms of what we got for in terms of hardware and also the way it was put together, which was quite innovative. >> Yeah. >> I want to hear about, you said give us the biggest, the baddest, we're willing to empty our coffers for this, so then where do you go from there? How closely do you work with SciNet, how does the relationship evolve and do you work together to innovate and kind of keep going? >> Yeah. I see it as not a segment or a division. I see High Performance Computing as a practice, and with any practice, it's many pieces that come together; you have a conductor, you have the orchestra, but the end of the day the delivery of that many systems is the concert. That's the way to look at it. To deliver this, our practice starts with multiple teams; one's a benchmarking team that understands the application that Dr. Gruner and SciNet will be running because they need to tune to the application the performance of the cluster. The second team is a set of solution architects that are deep engineers and understand our portfolio. Those two work together to say against this application, "Let's build," like he said, "the biggest, baddest, best-performing solution for that particular application." So, those two teams work together. Then we have the third team that kicks in once we win the business, which is coming on site to deploy, manage, and install. When Dr. Gruner talks about the infrastructure, it's a combination of hardware and software that all comes together and the software is open-source based that we built ourselves because we just felt there weren't the right tools in the industry to manage this level of infrastructure at that scale. All this comes together to essentially rack and roll onto their site. >> Let me just add to that. It's not like we went for it in a vacuum. We had already talked to the vendors, we always do. You always go, and they come to you and 'when's your next money coming,' and it's a dog and pony show. They tell you what they have. With Lenovo, at least the team, as we know it now, used to be the IBM team, iXsystems team, who built our previous system. A lot of these guys were already known to us, and we've always interacted very well with them. They were already aware of our thinking, where we were going, and that we're also open to suggestions for things that are non-conventional. Now, this can backfire, some data centers are very square they will only prescribe what they want. We're not prescriptive at all, we said, "Give us ideas about what can make this work better." These are the intangibles in a procurement process. You also have to believe in the team. If you don't know the team or if you don't know their track record then that's a no-no, right? Or, it takes points away. >> We brought innovations like DragonFly, which Dr. Dan will talk about that, as well as, we brought in for the first time, Excelero, which is a software-defined storage vendor and it was a smart part of the bid. We were able to flex muscles and be more creative versus just the standard. >> My understanding, you've been using water cooling for about a decade now, maybe? - Yes. >> Maybe you could give us a little bit about your experiences, how it's matured over time, and then Madhu will talk and bring us up to speed on project Neptune. >> Okay. Our first procurement about 10 years ago, again, that was the model we came up with. After years of wracking our brains, we could not decide how to build a data center and what computers to buy, it was like a chicken and egg process. We ended up saying, 'Okay, this is what we're going to do. Here's the money, here's is our total cost of operation that we can support." That included the power bill, the water, the maintenance, the whole works. So much can be used for infrastructure, and the rest is for the operational part. We said to the vendors, "You guys do the work. We want, again, the biggest and the baddest that we can operate within this budget." So, obviously, it has to be energy efficient, among other things. We couldn't design a data center and then put in the systems that we didn't know existed or vice-versa. That's how it started. The initial design was built by IBM, and they designed the data center for us to use water cooling for everything. They put rear door heat exchanges on the racks as a means of avoiding the use of blowing air and trying to contain the air which is less efficient, the air, and is also much more difficult. You can flow water very efficiently. You open the door of one of these racks. >> It's amazing. >> And it's hot air coming out, but you take the heat, right there in-situ, you remove it through a radiator. It's just like your car radiator. >> Car radiator. >> It works very well. Now, it would be nice if we could do even better by doing the hot water cooling and all that, but we're not in a university environment, we're in a strip mall out in the boonies, so we couldn't reuse the heat. Places like LRZ they're reusing the heat produced by the computers to heat their buildings. >> Wow. >> Or, if we're by a hospital, that always needs hot water, then we could have done it. But, it's really interesting how the option of that design that we ended up with the most efficient data center, certainly in Canada, and one of the most efficient in North America 10 years ago. Our PUE was 1.16, that was the design point, and this is not with direct water cooling through the chip. >> Right. Right. >> All right, bring us up to speed. Project Neptune, in general? >> Yes, so Neptune, as the name suggests, is the name of the God of the Sea and we chose that to brand our entire suite of liquid cooling products. Liquid cooling products is end to end in the sense that it's not just hardware, but, it's also software. The other key part of Neptune is a lot of these, in fact, most of these, products were built, not in a vacuum, but designed and built in conjunction with key partners like Barcelona Supercomputer, LRZ in Germany, in Munich. These were real-life customers working with us jointly to design these products. Neptune essentially allows you, very simplistically put, it's an entire suite of hardware and software that allows you to run very high-performance processes at a level of power and cooling utilization that's like using a much lower processor, it dissipates that much heat. The other key part is, you know, the normal way of cooling anything is run chilled water, we don't use chilled water. You save the money of chillers. We use ambient temperature, up to 50 degrees, 90% efficiency, 50 degree goes in, 60 degree comes out. It's really amazing, the entire suite. >> It's 50 Celsius, not Fahrenheit. >> It's Celsius, correct. >> Oh. >> Dr. Bruner talked about SciNet with the rado-heat exchanger. You actually got to stand in front of it to feel the magic of this, right? As geeky as that is. You open the door and it's this hot 60-, 65-degree C air. You close the door it's this cool 20-degree air that's coming out. So, the costs of running a data center drop dramatically with either the rado-heat exchanger, our direct to node product, which we just got released the SE650, or we have something call the thermal-transfer module, which replaces a normal heat sink. Where for an air cool we bring water cool goodness to an air cool product. >> Danny, I wonder if you can give us the final word, just the climate science in general, how's the community doing? Any technological things that are holding us back right now or anything that excites you about the research right now? >> Technology holds you back by the virtual size of the calculations that you need to do, but, it's also physics that hold you back. >> Yes. Because doing the actual modeling is very difficult and you have to be able to believe that the physics models actually work. This is one of the interesting things that Dick Peltier, who happens to be our scientific director and he's also one of the top climate scientists in the world, he's proven through some of his calculations that the models are actually pretty good. The models were designed for current conditions, with current data, so that they would reproduce the evolution of the climate that we can measure today. Now, what about climate that started happening 10,000 years ago, right? The climate was going on; it's been going on forever and ever. There's been glaciations; there's been all these events. It turns out that it has been recorded in history that there are some oscillations in temperature and other quantities that happen about every 1,000 years and nobody had been able to prove why they would happen. It turns out that the same models that we use for climate calculations today, if you take them back and do what's called paleoclimate, you start with approximating the conditions that happened 10,000 years ago, and then you move it forward, these things reproduce, those oscillations, exactly. It's very encouraging that the climate models actually make sense. We're not talking in a vacuum. We're not predicting the end of the world, just because. These calculations are right. They're correct. They're predicting the temperature of the earth is climbing and it's true, we're seeing it, but it will continue unless we do something. Right? It's extremely interesting. Now he's he's beginning to apply those results of the paleoclimate to studies with anthropologists and archeologists. We're trying to understand the events that happened in the Levant in the Middle East thousands of years ago and correlate them with climate events. Now, is that cool or what? >> That's very cool. >> So, I think humanity's greatest challenge is again to... >> I know! >> He just added global warming to it. >> You have a fun job. You have a fun job. >> It's all the interdisciplinarity that now has been made possible. Before we couldn't do this. Ten years ago we couldn't run those calculations, now we can. So it's really cool. - Amazing. Great. Well, Madhu, Danny, thank you so much for coming on the show. >> Thank you for having us. >> It was really fun talking to you. >> Thanks. >> I'm Rebecca Knight for Stu Miniman. We will have more from the Lenovo Transform just after this. (tech music)

>> Live from New York City, it's theCUBE, covering Lenovo Transform 2.0 brought to you by Lenovo. >> Welcome back to theCUBE's live coverage of Lenovo Transform here in New York City. I'm your host Rebecca Knight along with my co-host Stu Miniman. We're joined by Melissa Massa. She is the Executive Director of Hyperscale Sales. Thanks so much for coming on theCUBE. >> Thank you, thank you for having me. It's quite exciting. >> It is, it is very exciting. You're a cube newbie. >> I'm a cube newbie, yes. >> So this is very exciting. I'm sure it's the first of many visits. So Melissa we're at this real inflection point in technology and in AI as AI is ushering in this new wave with increasing use of big data and analytics and machine learning. All this means hyperscale is increasingly important. Can you just set the stage for our viewers a little bit about where we are in this-- >> Absolutely, yeah the transformation is really taking place in this industry that we know and love. And it's really amazing at how fast rapid the change is coming so if you look at in the past traditional one U two U type compute were the standard requirements right and today it's much more complex. It's becoming a much faster paced and you look at some of the big guys out there right from the top ten space. They're really helping to evolve AI and machine learning much faster as it's part of the cloud now and it's centric from the cloud space. So it's making things whether it's for personal use, for play, for business or for good humanity type areas. It's really helping involve and change the space altogether. >> One of the themes we've talked about in our kickoff there is Lenovo has a global presence, but it's also through a lot of partnerships. So Intel, Nvidia of course has to be very important in the AI space, you know, people like Microsoft and VMware. That's very much you know, some of those last ones especially look like Microsoft and VMware very much on the enterprise side. The cloud, the hyperscale, you mentioned the top 10 providers. What are the pieces, what are they looking for? What's the expertise that Lenovo brings that helps you fight in this very competitive real tight margin and very demanding ever-changing marketplace? >> You know this marketplace well? You sum it up very well, but in this in this marketplace, when you look at what the big guys are doing right and then you talk about partnerships, in our space, we don't come in and we don't have predisposition in terms of what we're going to. It's really through understanding what they're trying to do with technology and the direction they're going and it's interesting because at Lenovo we have several hundred engineers now dedicated just in our hyperscale organization, but we have 2000 engineers across the globe. So this really allows us to tap into this expertise in our organization, everything from even HPC aspects to multi socket boxes to different types of platforms, you look at ARM, you can look at AMD, look at Intel. So we don't really try to be one provider. We try to be the provider for our customers, and what their needs and where their requirements are going. >> So where have you seen the most success and we're looking forward do you see the growth coming from? >> Yeah we've started out a little bit different in this space. I think a lot of companies take a while getting their name out and getting traction, trying to grow up in what I'll call more that tier two that tier three space. Lenovo really has come into the tier one space. We're very fortunate in that aspect that we kind of are doing more of a top-down trajectory, so we've been very successful. I think you've heard Kirk talk about and you'll hear us continue to talk about the partnerships we have today with ten of the largest, truth be known, I've got pilots going on with the others. I think in a very short period of time we'll be talking about what we're doing across all of the top ten that is really unique to Lenovo, but again I think one of the reasons there's been success there is there's an availability of an engineer to engineer relationship we bring to the table that is really unique and allows our customers as they're going through this evolution with this change in the cloud space, they're realizing that there's not always the expertise they need in house. They've got to go outside and external and look for help in certain areas. One of the areas is we have an eight socket box and it's a great box with an incredibly high memory footprint and there's not a reference architecture on that box in the marketplace. Lenovo really helped develop it. So that's been a great platform for us to be able to have conversations with clients around for SAP hosting, HANA hosting and whatnot. >> Can you talk a little bit about this kind of the scale and investment Lenovo needs to have to be successful in this space? For those of us that track the hyperscales it's like you know there's tens of billions of dollars a year that they're investing in people, plant, and infrastructure. Kirk mentioned in the keynote, what was it? 42 soccer field size manufacturing facility. Is that only for hyperscale? Is it used for some of the other businesses? Help us unpack that a little yeah. >> So that's great, great question. To be in this business, you have to be incredibly committed into this business right, and I can say from YY on down through our entire leadership organization, there is a passion around this space from a hyperscale compute perspective in ensuring our success. In order to do that it really comes with making those right investments, so we can take care of these customers both near-term and long-term. This is not a short-term thing. This is an incredibly long-term plan for us and I will tell you the growth numbers they've given me over the course of the next years so that we have to make these types of investments right, so not only do we leverage our own manufacturing plants, but fortunately for Lenovo, we own. So it really helps minimize margin stacking but I've got great manufacturing facilities around the world and also now as you heard today, and the 42 football fields, we have started our own motherboard lines in our Hefei China Factory. So we'll be producing over 40,000 boards there a year with the two lines we have and then we're going to continue to grow well beyond that. >> So you are a tech veteran. You've been, at this is not your first rodeo here at Lenovo. How would you describe, I mean talking about YY's vision and the commitment he has made to hyperscale, what do you think it is that differentiates Lenovo in this very crowded and competitive tech world? >> I came from a couple of different places before Lenovo. So I had seen the OEM, I had seen the ODM aspect. And I was nervous when we launched this out of Lenovo as to how well is the market going to receive it. It's a crowded place and then you've started to see some of the other players that have been there, have faded off right. So what's really interesting about Lenovo when people ask us about what is your strategy, it's really we call it our ODM plus model and what does that mean? Well it means I'm taking the best parts of an OEM from a size, the global perspective of the markets I can get into for my clients are incredible and for an export of record, being able to get them into markets that are very challenging for others, I have a global services organization. So if you do need me to happen to come into your data center and help with other things, we have that capability too. And then also, but because I own my own manufacturing and I don't outsource anything, I keep relatively low costs to do business with. I can compete with more of that traditional ODM size and now you take the full vertical integration we have and you bring that to the table with being able to we manufacture all of our own motherboards, all the way up through our systems, it's a pretty powerful story, and I think from what we've seen the clients have really resonated with this story. They like what they're seeing from the benefits. >> Yeah it's so much we can learn, maybe you talk so much about scale, I think first of all the customer base that you talk about, 5000 servers or more is kind of the entry level for that, and just the speed that they're changing. A question we get all the time is how do people keep up with this? Give us a little bit of insight as to what you're hearing from your customers in the hyperscale market? How are they keeping to innovate, keeping to grow and how can everybody deal with kind of the pace of change today? >> It's unbelievable, I mean you look around it's immersive data. It's the network you got all this data now and you've got to get it through a pipe right and so there's all these different aspects coming. I've always told our customers look if there are areas that I can't help you with in, I'm going to tell you. I'm going to be more what's right up the middle for you guys, so we really focus on where are you going, where are you evolving, where do you need help from, how can we help to get you? I don't know if Kirk or anybody at the team has talked about it, but really breaking news for you guys because I was going to announce it in pitch today is that we are actually going to build our own white box networking products, and we're going to leave them open source from an OS perspective for our customers too, because we feel this is going to be a very key area for them. We've got the in-house talent. We've actually moved a number of engineers on our networking team directly into our hyperscale organization to get this started. >> Okay is this announcement which, congratulations by the way, is this, are you hearing that demand from the hyperscalers? Some of the hyperscalers have-- >> Absolutely. >> Kind of dipped their toe in there. I know you've been at the OCP events where we see some of the big players like Microsoft and Google. How do they fit, how does that compete against Cisco, so yeah how much of that is kind of a requirement to the customers? >> It is a requirement. I think if you're going to be all-in with these customers because we happen to have a great investment in the networking space already. Also you see Lenovo I think we're a company that we don't come with 50 years of habits right? We come as a fresh company. I never hear inside the company oh we tried that 10 years ago, and we don't want to do it again. We come with a fresh perspective and approach to building our business. We've got the networking organization inside of our company. Why not proliferate it in the next generation and why does that matter? Open matters right? Everything look at what's coming today. Open BMC, open OS. I have major customers coming into Raleigh and sitting down and talking to us about where we going from a security perspective, and how we're going to bring open security standards into this market? >> The other thing when I think about you know, YY mentioned it. Cloud network and device kind of things like IOT and the global device because everybody, AI and IOT everybody's going there. How does that play in your space? >> It just continues, the data just continues to double in massive size and scale, and there are new technologies out. People are learning to use things like the FPGA is a lot smarter and you look at like what they're able to do today from that technology and deliver one server that can take the compute power of four now. So all of that is helping to evolve this rapid pace and where we're going. >> Finally what we'll be talking about next year? I mean perhaps inked deals with the remaining four players that you are in pilot programs with. What other things are most exciting to you? >> Yeah so I think in what you're going to find is I'm launching a team that's going to go after the tier II and tier III market. And we're going to really start to invest in this space. We're going to really start to proliferate. Paul and I, you saw up on the screen. We have 33 custom boards in design today. We have a factory that we need to fill right, so we're going to continue to really push the envelope on everything we're going to be developing from a custom perspective. I think you're going to see it evolve with quite a number of products, maybe even more so beyond just your traditional server approach. We're there to help clients in other areas where they also need to manufacture maybe a part or what could be a commodity for them. And they need special attention in that particular space. We're going to continue to work with them, but I would say the biggest thing. When I'm sitting here next year is going to be the sheer size of where this hyperscale team is going and the revenue and the growth that's bringing in to Lenovo overall. >> Great well thank you so much for coming into theCUBE Melissa. >> It was nice talking to you. >> I appreciate it. Thank you. >> I'm Rebecca Knight for Stu Miniman. We will have more from theCUBE live at Lenovo Transform in just a little bit. (upbeat music)

(electronic dance music) (Intel Jingle) (ethereal electronic dance music) ♪ Okay ♪ (upbeat techno dance music) ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Yeah everybody get loose yeah ♪ ♪ Yeah ♪ ♪ Ye-yeah yeah ♪ ♪ Yeah yeah ♪ ♪ Everybody everybody yeah ♪ ♪ Whoo whoo ♪ ♪ Whoo whoo ♪ ♪ Whoo yeah ♪ ♪ Everybody get loose whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ >> As a courtesy to the presenters and those around you, please silence all mobile devices, thank you. (electronic dance music) ♪ Everybody get loose ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ (upbeat salsa music) ♪ Ha ha ha ♪ ♪ Ah ♪ ♪ Ha ha ha ♪ ♪ So happy ♪ ♪ Whoo whoo ♪ (female singer scatting) >> Ladies and gentlemen, please take your seats. Our program will begin momentarily. ♪ Hey ♪ (female singer scatting) (male singer scatting) ♪ Hey ♪ ♪ Whoo ♪ (female singer scatting) (electronic dance music) ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ Red don't go ♪ ♪ All hands are in don't go ♪ ♪ In don't go ♪ ♪ Oh red go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are red don't go ♪ ♪ All hands are in red red red red ♪ ♪ All hands are in don't go ♪ ♪ All hands are in red go ♪ >> Ladies and gentlemen, there are available seats. Towards house left, house left there are available seats. If you are please standing, we ask that you please take an available seat. We will begin momentarily, thank you. ♪ Let go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ (upbeat electronic dance music) ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ I live ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Hey ♪ ♪ Yeah ♪ ♪ Oh ♪ ♪ Ah ♪ ♪ Ah ah ah ah ah ah ♪ ♪ Just make me ♪ ♪ Just make me ♪ (bouncy techno music) >> Ladies and gentlemen, once again we ask that you please take the available seats to your left, house left, there are many available seats. If you are standing, please make your way there. The program will begin momentarily, thank you. Good morning! This is Lenovo Transform 2.0! (keyboard clicks) >> Progress. Why do we always talk about it in the future? When will it finally get here? We don't progress when it's ready for us. We need it when we're ready, and we're ready now. Our hospitals and their patients need it now, our businesses and their customers need it now, our cities and their citizens need it now. To deliver intelligent transformation, we need to build it into the products and solutions we make every day. At Lenovo, we're designing the systems to fight disease, power businesses, and help you reach more customers, end-to-end security solutions to protect your data and your companies reputation. We're making IT departments more agile and cost efficient. We're revolutionizing how kids learn with VR. We're designing smart devices and software that transform the way you collaborate, because technology shouldn't just power industries, it should power people. While everybody else is talking about tomorrow, we'll keep building today, because the progress we need can't wait for the future. >> Please welcome to the stage Lenovo's Rod Lappen! (electronic dance music) (audience applauding) >> Alright. Good morning everyone! >> Good morning. >> Ooh, that was pretty good actually, I'll give it one more shot. Good morning everyone! >> Good morning! >> Oh, that's much better! Hope everyone's had a great morning. Welcome very much to the second Lenovo Transform event here in New York. I think when I got up just now on the steps I realized there's probably one thing in common all of us have in this room including myself which is, absolutely no one has a clue what I'm going to say today. So, I'm hoping very much that we get through this thing very quickly and crisply. I love this town, love New York, and you're going to hear us talk a little bit about New York as we get through here, but just before we get started I'm going to ask anyone who's standing up the back, there are plenty of seats down here, and down here on the right hand side, I think he called it house left is the professional way of calling it, but these steps to my right, your left, get up here, let's get you all seated down so that you can actually sit down during the keynote session for us. Last year we had our very first Lenovo Transform. We had about 400 people. It was here in New York, fantastic event, today, over 1,000 people. We have over 62 different technology demonstrations and about 15 breakout sessions, which I'll talk you through a little bit later on as well, so it's a much bigger event. Next year we're definitely going to be shooting for over 2,000 people as Lenovo really transforms and starts to address a lot of the technology that our commercial customers are really looking for. We were however hampered last year by a storm, I don't know if those of you who were with us last year will remember, we had a storm on the evening before Transform last year in New York, and obviously the day that it actually occurred, and we had lots of logistics. Our media people from AMIA were coming in. They took the, the plane was circling around New York for a long time, and Kamran Amini, our General Manager of our Data Center Infrastructure Group, probably one of our largest groups in the Lenovo DCG business, took 17 hours to get from Raleigh, North Carolina to New York, 17 hours, I think it takes seven or eight hours to drive. Took him 17 hours by plane to get here. And then of course this year, we have Florence. And so, obviously the hurricane Florence down there in the Carolinas right now, we tried to help, but still Kamran has made it today. Unfortunately, very tragically, we were hoping he wouldn't, but he's here today to do a big presentation a little bit later on as well. However, I do want to say, obviously, Florence is a very serious tragedy and we have to take it very serious. We got, our headquarters is in Raleigh, North Carolina. While it looks like the hurricane is just missing it's heading a little bit southeast, all of our thoughts and prayers and well wishes are obviously with everyone in the Carolinas on behalf of Lenovo, everyone at our headquarters, everyone throughout the Carolinas, we want to make sure everyone stays safe and out of harm's way. We have a great mixture today in the crowd of all customers, partners, industry analysts, media, as well as our financial analysts from all around the world. There's over 30 countries represented here and people who are here to listen to both YY, Kirk, and Christian Teismann speak today. And so, it's going to be a really really exciting day, and I really appreciate everyone coming in from all around the world. So, a big round of applause for everyone whose come in. (audience applauding) We have a great agenda for you today, and it starts obviously a very consistent format which worked very successful for us last year, and that's obviously our keynote. You'll hear from YY, our CEO, talk a little bit about the vision he has in the industry and how he sees Lenovo's turned the corner and really driving some great strategy to address our customer's needs. Kirk Skaugen, our Executive Vice President of DCG, will be up talking about how we've transformed the DCG business and once again are hitting record growth ratios for our DCG business. And then you'll hear from Christian Teismann, our SVP and General Manager for our commercial business, get up and talk about everything that's going on in our IDG business. There's really exciting stuff going on there and obviously ThinkPad being the cornerstone of that I'm sure he's going to talk to us about a couple surprises in that space as well. Then we've got some great breakout sessions, I mentioned before, 15 breakout sessions, so while this keynote section goes until about 11:30, once we get through that, please go over and explore, and have a look at all of the breakout sessions. We have all of our subject matter experts from both our PC, NBG, and our DCG businesses out to showcase what we're doing as an organization to better address your needs. And then obviously we have the technology pieces that I've also spoken about, 62 different technology displays there arranged from everything IoT, 5G, NFV, everything that's really cool and hot in the industry right now is going to be on display up there, and I really encourage all of you to get up there. So, I'm going to have a quick video to show you from some of the setup yesterday on a couple of the 62 technology displays we've got on up on stage. Okay let's go, so we've got a demonstrations to show you today, one of the greats one here is the one we've done with NC State, a high-performance computing artificial intelligence demonstration of fresh produce. It's about modeling the population growth of the planet, and how we're going to supply water and food as we go forward. Whoo. Oh, that is not an apple. Okay. (woman laughs) Second one over here is really, hey Jonas, how are you? Is really around virtual reality, and how we look at one of the most amazing sites we've got, as an install on our high-performance computing practice here globally. And you can see, obviously, that this is the Barcelona supercomputer, and, where else in New York can you get access to being able to see something like that so easily? Only here at Lenovo Transform. Whoo, okay. (audience applauding) So there's two examples of some of the technology. We're really encouraging everyone in the room after the keynote to flow into that space and really get engaged, and interact with a lot of the technology we've got up there. It seems I need to also do something about my fashion, I've just realized I've worn a vest two days in a row, so I've got to work on that as well. Alright so listen, the last thing on the agenda, we've gone through the breakout sessions and the demo, tonight at four o'clock, there's about 400 of you registered to be on the cruise boat with us, the doors will open behind me. the boat is literally at the pier right behind us. You need to make sure you're on the boat for 4:00 p.m. this evening. Outside of that, I want everyone to have a great time today, really enjoy the experience, make it as experiential as you possibly can, get out there and really get in and touch the technology. There's some really cool AI displays up there for us all to get involved in as well. So ladies and gentlemen, without further adieu, it gives me great pleasure to introduce to you a lover of tennis, as some of you would've heard last year at Lenovo Transform, as well as a lover of technology, Lenovo, and of course, New York City. I am obviously very pleasured to introduce to you Yang Yuanqing, our CEO, as we like to call him, YY. (audience applauding) (upbeat funky music) >> Good morning, everyone. >> Good morning. >> Thank you Rod for that introduction. Welcome to New York City. So, this is the second year in a row we host our Transform event here, because New York is indeed one of the most transformative cities in the world. Last year on this stage, I spoke about the Fourth Industrial Revolution, and our vision around the intelligent transformation, how it would fundamentally change the nature of business and the customer relationships. And why preparing for this transformation is the key for the future of our company. And in the last year I can assure you, we were being very busy doing just that, from searching and bringing global talents around the world to the way we think about every product and every investment we make. I was here in New York just a month ago to announce our fiscal year Q1 earnings, which was a good day for us. I think now the world believes it when we say Lenovo has truly turned the corner to a new phase of growth and a new phase of acceleration in executing the transformation strategy. That's clear to me is that the last few years of a purposeful disruption at Lenovo have led us to a point where we can now claim leadership of the coming intelligent transformation. People often asked me, what is the intelligent transformation? I was saying this way. This is the unlimited potential of the Fourth Industrial Revolution driven by artificial intelligence being realized, ordering a pizza through our speaker, and locking the door with a look, letting your car drive itself back to your home. This indeed reflect the power of AI, but it just the surface of it. The true impact of AI will not only make our homes smarter and offices more efficient, but we are also completely transformed every value chip in every industry. However, to realize these amazing possibilities, we will need a structure built around the key components, and one that touches every part of all our lives. First of all, explosions in new technology always lead to new structures. This has happened many times before. In the early 20th century, thousands of companies provided a telephone service. City streets across the US looked like this, and now bundles of a microscopic fiber running from city to city bring the world closer together. Here's what a driving was like in the US, up until 1950s. Good luck finding your way. (audience laughs) And today, millions of vehicles are organized and routed daily, making the world more efficient. Structure is vital, from fiber cables and the interstate highways, to our cells bounded together to create humans. Thankfully the structure for intelligent transformation has emerged, and it is just as revolutionary. What does this new structure look like? We believe there are three key building blocks, data, computing power, and algorithms. Ever wondered what is it behind intelligent transformation? What is fueling this miracle of human possibility? Data. As the Internet becomes ubiquitous, not only PCs, mobile phones, have come online and been generating data. Today it is the cameras in this room, the climate controls in our offices, or the smart displays in our kitchens at home. The number of smart devices worldwide will reach over 20 billion in 2020, more than double the number in 2017. These devices and the sensors are connected and generating massive amount of data. By 2020, the amount of data generated will be 57 times more than all the grains of sand on Earth. This data will not only make devices smarter, but will also fuel the intelligence of our homes, offices, and entire industries. Then we need engines to turn the fuel into power, and the engine is actually the computing power. Last but not least the advanced algorithms combined with Big Data technology and industry know how will form vertical industrial intelligence and produce valuable insights for every value chain in every industry. When these three building blocks all come together, it will change the world. At Lenovo, we have each of these elements of intelligent transformations in a single place. We have built our business around the new structure of intelligent transformation, especially with mobile and the data center now firmly part of our business. I'm often asked why did you acquire these businesses? Why has a Lenovo gone into so many fields? People ask the same questions of the companies that become the leaders of the information technology revolution, or the third industrial transformation. They were the companies that saw the future and what the future required, and I believe Lenovo is the company today. From largest portfolio of devices in the world, leadership in the data center field, to the algorithm-powered intelligent vertical solutions, and not to mention the strong partnership Lenovo has built over decades. We are the only company that can unify all these essential assets and deliver end to end solutions. Let's look at each part. We now understand the important importance data plays as fuel in intelligent transformation. Hundreds of billions of devices and smart IoTs in the world are generating better and powering the intelligence. Who makes these devices in large volume and variety? Who puts these devices into people's home, offices, manufacturing lines, and in their hands? Lenovo definitely has the front row seats here. We are number one in PCs and tablets. We also produces smart phones, smart speakers, smart displays. AR/VR headsets, as well as commercial IoTs. All of these smart devices, or smart IoTs are linked to each other and to the cloud. In fact, we have more than 20 manufacturing facilities in China, US, Brazil, Japan, India, Mexico, Germany, and more, producing various devices around the clock. We actually make four devices every second, and 37 motherboards every minute. So, this factory located in my hometown, Hu-fi, China, is actually the largest laptop factory in the world, with more than three million square feet. So, this is as big as 42 soccer fields. Our scale and the larger portfolio of devices gives us access to massive amount of data, which very few companies can say. So, why is the ability to scale so critical? Let's look again at our example from before. The early days of telephone, dozens of service providers but only a few companies could survive consolidation and become the leader. The same was true for the third Industrial Revolution. Only a few companies could scale, only a few could survive to lead. Now the building blocks of the next revolution are locking into place. The (mumbles) will go to those who can operate at the scale. So, who could foresee the total integration of cloud, network, and the device, need to deliver intelligent transformation. Lenovo is that company. We are ready to scale. Next, our computing power. Computing power is provided in two ways. On one hand, the modern supercomputers are providing the brute force to quickly analyze the massive data like never before. On the other hand the cloud computing data centers with the server storage networking capabilities, and any computing IoT's, gateways, and miniservers are making computing available everywhere. Did you know, Lenovo is number one provider of super computers worldwide? 170 of the top 500 supercomputers, run on Lenovo. We hold 89 World Records in key workloads. We are number one in x86 server reliability for five years running, according to ITIC. a respected provider of industry research. We are also the fastest growing provider of hyperscale public cloud, hyper-converged and aggressively growing in edge computing. cur-ges target, we are expand on this point soon. And finally to run these individual nodes into our symphony, we must transform the data and utilize the computing power with advanced algorithms. Manufactured, industry maintenance, healthcare, education, retail, and more, so many industries are on the edge of intelligent transformation to improve efficiency and provide the better products and services. We are creating advanced algorithms and the big data tools combined with industry know-how to provide intelligent vertical solutions for several industries. In fact, we studied at Lenovo first. Our IT and research teams partnered with our global supply chain to develop an AI that improved our demand forecasting accuracy. Beyond managing our own supply chain we have offered our deep learning supply focused solution to other manufacturing companies to improve their efficiency. In the best case, we have improved the demand, focused the accuracy by 30 points to nearly 90 percent, for Baosteel, the largest of steel manufacturer in China, covering the world as well. Led by Lenovo research, we launched the industry-leading commercial ready AR headset, DaystAR, partnering with companies like the ones in this room. This technology is being used to revolutionize the way companies service utility, and even our jet engines. Using our workstations, servers, and award-winning imaging processing algorithms, we have partnered with hospitals to process complex CT scan data in minutes. So, this enable the doctors to more successfully detect the tumors, and it increases the success rate of cancer diagnosis all around the world. We are also piloting our smart IoT driven warehouse solution with one of the world's largest retail companies to greatly improve the efficiency. So, the opportunities are endless. This is where Lenovo will truly shine. When we combine the industry know-how of our customers with our end-to-end technology offerings, our intelligent vertical solutions like this are growing, which Kirk and Christian will share more. Now, what will drive this transformation even faster? The speed at which our networks operate, specifically 5G. You may know that Lenovo just launched the first-ever 5G smartphone, our Moto Z3, with the new 5G Moto model. We are partnering with multiple major network providers like Verizon, China Mobile. With the 5G model scheduled to ship early next year, we will be the first company to provide a 5G mobile experience to any users, customers. This is amazing innovation. You don't have to buy a new phone, just the 5G clip on. What can I say, except wow. (audience laughs) 5G is 10 times the fast faster than 4G. Its download speed will transform how people engage with the world, driverless car, new types of smart wearables, gaming, home security, industrial intelligence, all will be transformed. Finally, accelerating with partners, as ready as we are at Lenovo, we need partners to unlock our full potential, partners here to create with us the edge of the intelligent transformation. The opportunities of intelligent transformation are too profound, the scale is too vast. No company can drive it alone fully. We are eager to collaborate with all partners that can help bring our vision to life. We are dedicated to open partnerships, dedicated to cross-border collaboration, unify the standards, share the advantage, and market the synergies. We partner with the biggest names in the industry, Intel, Microsoft, AMD, Qualcomm, Google, Amazon, and Disney. We also find and partner with the smaller innovators as well. We're building the ultimate partner experience, open, shared, collaborative, diverse. So, everything is in place for intelligent transformation on a global scale. Smart devices are everywhere, the infrastructure is in place, networks are accelerating, and the industries demand to be more intelligent, and Lenovo is at the center of it all. We are helping to drive change with the hundreds of companies, companies just like yours, every day. We are your partner for intelligent transformation. Transformation never stops. This is what you will hear from Kirk, including details about Lenovo NetApp global partnership we just announced this morning. We've made the investments in every single aspect of the technology. We have the end-to-end resources to meet your end-to-end needs. As you attend the breakout session this afternoon, I hope you see for yourself how much Lenovo has transformed as a company this past year, and how we truly are delivering a future of intelligent transformation. Now, let me invite to the stage Kirk Skaugen, our president of Data Center growth to tell you about the exciting transformation happening in the global Data C enter market. Thank you. (audience applauding) (upbeat music) >> Well, good morning. >> Good morning. >> Good morning! >> Good morning! >> Excellent, well, I'm pleased to be here this morning to talk about how we're transforming the Data Center and taking you as our customers through your own intelligent transformation journey. Last year I stood up here at Transform 1.0, and we were proud to announce the largest Data Center portfolio in Lenovo's history, so I thought I'd start today and talk about the portfolio and the progress that we've made over the last year, and the strategies that we have going forward in phase 2.0 of Lenovo's transformation to be one of the largest data center companies in the world. We had an audacious vision that we talked about last year, and that is to be the most trusted data center provider in the world, empowering customers through the new IT, intelligent transformation. And now as the world's largest supercomputer provider, giving something back to humanity, is very important this week with the hurricanes now hitting North Carolina's coast, but we take this most trusted aspect very seriously, whether it's delivering the highest quality products on time to you as customers with the highest levels of security, or whether it's how we partner with our channel partners and our suppliers each and every day. You know we're in a unique world where we're going from hundreds of millions of PCs, and then over the next 25 years to hundred billions of connected devices, so each and every one of you is going through this intelligent transformation journey, and in many aspects were very early in that cycle. And we're going to talk today about our role as the largest supercomputer provider, and how we're solving humanity's greatest challenges. Last year we talked about two special milestones, the 25th anniversary of ThinkPad, but also the 25th anniversary of Lenovo with our IBM heritage in x86 computing. I joined the workforce in 1992 out of college, and the IBM first personal server was launching at the same time with an OS2 operating system and a free mouse when you bought the server as a marketing campaign. (audience laughing) But what I want to be very clear today, is that the innovation engine is alive and well at Lenovo, and it's really built on the culture that we're building as a company. All of these awards at the bottom are things that we earned over the last year at Lenovo. As a Fortune now 240 company, larger than companies like Nike, or AMEX, or Coca-Cola. The one I'm probably most proud of is Forbes first list of the top 2,000 globally regarded companies. This was something where 15,000 respondents in 60 countries voted based on ethics, trustworthiness, social conduct, company as an employer, and the overall company performance, and Lenovo was ranked number 27 of 2000 companies by our peer group, but we also now one of-- (audience applauding) But we also got a perfect score in the LGBTQ Equality Index, exemplifying the diversity internally. We're number 82 in the top working companies for mothers, top working companies for fathers, top 100 companies for sustainability. If you saw that factory, it's filled with solar panels on the top of that. And now again, one of the top global brands in the world. So, innovation is built on a customer foundation of trust. We also said last year that we'd be crossing an amazing milestone. So we did, over the last 12 months ship our 20 millionth x86 server. So, thank you very much to our customers for this milestone. (audience applauding) So, let me recap some of the transformation elements that have happened over the last year. Last year I talked about a lot of brand confusion, because we had the ThinkServer brand from the legacy Lenovo, the System x, from IBM, we had acquired a number of networking companies, like BLADE Network Technologies, et cetera, et cetera. Over the last year we've been ramping based on two brand structures, ThinkAgile for next generation IT, and all of our software-defined infrastructure products and ThinkSystem as the world's highest performance, highest reliable x86 server brand, but for servers, for storage, and for networking. We have transformed every single aspect of the customer experience. A year and a half ago, we had four different global channel programs around the world. Typically we're about twice the mix to our channel partners of any of our competitors, so this was really important to fix. We now have a single global Channel program, and have technically certified over 11,000 partners to be technical experts on our product line to deliver better solutions to our customer base. Gardner recently recognized Lenovo as the 26th ranked supply chain in the world. And, that's a pretty big honor, when you're up there with Amazon and Walmart and others, but in tech, we now are in the top five supply chains. You saw the factory network from YY, and today we'll be talking about product shipping in more than 160 countries, and I know there's people here that I've met already this morning, from India, from South Africa, from Brazil and China. We announced new Premier Support services, enabling you to go directly to local language support in nine languages in 49 countries in the world, going directly to a native speaker level three support engineer. And today we have more than 10,000 support specialists supporting our products in over 160 countries. We've delivered three times the number of engineered solutions to deliver a solutions orientation, whether it's on HANA, or SQL Server, or Oracle, et cetera, and we've completely reengaged our system integrator channel. Last year we had the CIO of DXE on stage, and here we're talking about more than 175 percent growth through our system integrator channel in the last year alone as we've brought that back and really built strong relationships there. So, thank you very much for amazing work here on the customer experience. (audience applauding) We also transformed our leadership. We thought it was extremely important with a focus on diversity, to have diverse talent from the legacy IBM, the legacy Lenovo, but also outside the industry. We made about 19 executive changes in the DCG group. This is the most senior leadership team within DCG, all which are newly on board, either from our outside competitors mainly over the last year. About 50 percent of our executives were now hired internally, 50 percent externally, and 31 percent of those new executives are diverse, representing the diversity of our global customer base and gender. So welcome, and most of them you're going to be able to meet over here in the breakout sessions later today. (audience applauding) But some things haven't changed, they're just keeping getting better within Lenovo. So, last year I got up and said we were committed with the new ThinkSystem brand to be a world performance leader. You're going to see that we're sponsoring Ducati for MotoGP. You saw the Ferrari out there with Formula One. That's not a surprise. We want the Lenovo ThinkSystem and ThinkAgile brands to be synonymous with world record performance. So in the last year we've gone from 39 to 89 world records, and partners like Intel would tell you, we now have four times the number of world record workloads on Lenovo hardware than any other server company on the planet today, with more than 89 world records across HPC, Java, database, transaction processing, et cetera. And we're proud to have just brought on Doug Fisher from Intel Corporation who had about 10-17,000 people on any given year working for him in workload optimizations across all of our software. It's just another testament to the leadership team we're bringing in to keep focusing on world-class performance software and solutions. We also per ITIC, are the number one now in x86 server reliability five years running. So, this is a survey where CIOs are in a blind survey asked to submit their reliability of their uptime on their x86 server equipment over the last 365 days. And you can see from 2016 to 2017 the downtime, there was over four hours as noted by the 750 CXOs in more than 20 countries is about one percent for the Lenovo products, and is getting worse generation from generation as we went from Broadwell to Pearlie. So we're taking our reliability, which was really paramount in the IBM System X heritage, and ensuring that we don't just recognize high performance but we recognize the highest level of reliability for mission-critical workloads. And what that translates into is that we at once again have been ranked number one in customer satisfaction from you our customers in 19 of 22 attributes, in North America in 18 of 22. This is a survey by TVR across hundreds of customers of us and our top competitors. This is the ninth consecutive study that we've been ranked number one in customer satisfaction, so we're taking this extremely seriously, and in fact YY now has increased the compensation of every single Lenovo employee. Up to 40 percent of their compensation bonus this year is going to be based on customer metrics like quality, order to ship, and things of this nature. So, we're really putting every employee focused on customer centricity this year. So, the summary on Transform 1.0 is that every aspect of what you knew about Lenovo's data center group has transformed, from the culture to the branding to dedicated sales and marketing, supply chain and quality groups, to a worldwide channel program and certifications, to new system integrator relationships, and to the new leadership team. So, rather than me just talk about it, I thought I'd share a quick video about what we've done over the last year, if you could run the video please. Turn around for a second. (epic music) (audience applauds) Okay. So, thank you to all our customers that allowed us to publicly display their logos in that video. So, what that means for you as investors, and for the investor community out there is, that our customers have responded, that this year Gardner just published that we are the fastest growing server company in the top 10, with 39 percent growth quarter-on-quarter, and 49 percent growth year-on-year. If you look at the progress we've made since the transformation the last three quarters publicly, we've grown 17 percent, then 44 percent, then 68 percent year on year in revenue, and I can tell you this quarter I'm as confident as ever in the financials around the DCG group, and it hasn't been in one area. You're going to see breakout sessions from hyperscale, software-defined, and flash, which are all growing more than a 100 percent year-on-year, supercomputing which we'll talk about shortly, now number one, and then ultimately from profitability, delivering five consecutive quarters of pre-tax profit increase, so I think, thank you very much to the customer base who's been working with us through this transformation journey. So, you're here to really hear what's next on 2.0, and that's what I'm excited to talk about today. Last year I came up with an audacious goal that we would become the largest supercomputer company on the planet by 2020, and this graph represents since the acquisition of the IBM System x business how far we were behind being the number one supercomputer. When we started we were 182 positions behind, even with the acquisition for example of SGI from HP, we've now accomplished our goal actually two years ahead of time. We're now the largest supercomputer company in the world. About one in every four supercomputers, 117 on the list, are now Lenovo computers, and you saw in the video where the universities are said, but I think what I'm most proud of is when your customers rank you as the best. So the awards at the bottom here, are actually Readers Choice from the last International Supercomputing Show where the scientific researchers on these computers ranked their vendors, and we were actually rated the number one server technology in supercomputing with our ThinkSystem SD530, and the number one storage technology with our ThinkSystem DSS-G, but more importantly what we're doing with the technology. You're going to see we won best in life sciences, best in data analytics, and best in collaboration as well, so you're going to see all of that in our breakout sessions. As you saw in the video now, 17 of the top 25 research institutions in the world are now running Lenovo supercomputers. And again coming from Raleigh and watching that hurricane come across the Atlantic, there are eight supercomputers crunching all of those models you see from Germany to Malaysia to Canada, and we're happy to have a SciNet from University of Toronto here with us in our breakout session to talk about what they're doing on climate modeling as well. But we're not stopping there. We just announced our new Neptune warm water cooling technology, which won the International Supercomputing Vendor Showdown, the first time we've won that best of show in 25 years, and we've now installed this. We're building out LRZ in Germany, the first ever warm water cooling in Peking University, at the India Space Propulsion Laboratory, at the Malaysian Weather and Meteorological Society, at Uninett, at the largest supercomputer in Norway, T-Systems, University of Birmingham. This is truly amazing technology where we're actually using water to cool the machine to deliver a significantly more energy-efficient computer. Super important, when we're looking at global warming and some of the electric bills can be millions of dollars just for one computer, and could actually power a small city just with the technology from the computer. We've built AI centers now in Morrisville, Stuttgart, Taipei, and Beijing, where customers can bring their AI workloads in with experts from Intel, from Nvidia, from our FPGA partners, to work on their workloads, and how they can best implement artificial intelligence. And we also this year launched LICO which is Lenovo Intelligent Compute Orchestrator software, and it's a software solution that simplifies the management and use of distributed clusters in both HPC and AI model development. So, what it enables you to do is take a single cluster, and run both HPC and AI workloads on it simultaneously, delivering better TCO for your environment, so check out LICO as well. A lot of the customers here and Wall Street are very excited and using it already. And we talked about solving humanity's greatest challenges. In the breakout session, you're going to have a virtual reality experience where you're going to be able to walk through what as was just ranked the world's most beautiful data center, the Barcelona Supercomputer. So, you can actually walk through one of the largest supercomputers in the world from Barcelona. You can see the work we're doing with NC State where we're going to have to grow the food supply of the world by 50 percent, and there's not enough fresh water in the world in the right places to actually make all those crops grow between now and 2055, so you're going to see the progression of how they're mapping the entire globe and the water around the world, how to build out the crop population over time using AI. You're going to see our work with Vestas is this largest supercomputer provider in the wind turbine areas, how they're working on wind energy, and then with University College London, how they're working on some of the toughest particle physics calculations in the world. So again, lots of opportunity here. Take advantage of it in the breakout sessions. Okay, let me transition to hyperscale. So in hyperscale now, we have completely transformed our business model. We are now powering six of the top 10 hyperscalers in the world, which is a significant difference from where we were two years ago. And the reason we're doing that, is we've coined a term called ODM+. We believe that hyperscalers want more procurement power than an ODM, and Lenovo is doing about $18 billion of procurement a year. They want a broader global supply chain that they can get from a local system integrator. We're more than 160 countries around the world, but they want the same world-class quality and reliability like they get from an MNC. So, what we're doing now is instead of just taking off the shelf motherboards from somewhere, we're starting with a blank sheet of paper, we're working with the customer base on customized SKUs and you can see we already are developing 33 custom solutions for the largest hyperscalers in the world. And then we're not just running notebooks through this factory where YY said, we're running 37 notebook boards a minute, we're now putting in tens and tens and tens of thousands of server board capacity per month into this same factory, so absolutely we can compete with the most aggressive ODM's in the world, but it's not just putting these things in in the motherboard side, we're also building out these systems all around the world, India, Brazil, Hungary, Mexico, China. This is an example of a new hyperscale customer we've had this last year, 34,000 servers we delivered in the first six months. The next 34,000 servers we delivered in 68 days. The next 34,000 servers we delivered in 35 days, with more than 99 percent on-time delivery to 35 data centers in 14 countries as diverse as South Africa, India, China, Brazil, et cetera. And I'm really ashamed to say it was 99.3, because we did have a forklift driver who rammed their forklift right through the middle of the one of the server racks. (audience laughing) At JFK Airport that we had to respond to, but I think this gives you a perspective of what it is to be a top five global supply chain and technology. So last year, I said we would invest significantly in IP, in joint ventures, and M and A to compete in software defined, in networking, and in storage, so I wanted to give you an update on that as well. Our newest software-defined partnership is with Cloudistics, enabling a fully composable cloud infrastructure. It's an exclusive agreement, you can see them here. I think Nag, our founder, is going to be here today, with a significant Lenovo investment in the company. So, this new ThinkAgile CP series delivers the simplicity of the public cloud, on-premise with exceptional support and a marketplace of essential enterprise applications all with a single click deployment. So simply put, we're delivering a private cloud with a premium experience. It's simple in that you need no specialists to deploy it. An IT generalist can set it up and manage it. It's agile in that you can provision dozens of workloads in minutes, and it's transformative in that you get all of the goodness of public cloud on-prem in a private cloud to unlock opportunity for use. So, we're extremely excited about the ThinkAgile CP series that's now shipping into the marketplace. Beyond that we're aggressively ramping, and we're either doubling, tripling, or quadrupling our market share as customers move from traditional server technology to software-defined technology. With Nutanix we've been public, growing about more than 150 percent year-on-year, with Nutanix as their fastest growing Nutanix partner, but today I want to set another audacious goal. I believe we cannot just be Nutanix's fastest growing partner but we can become their largest partner within two years. On Microsoft, we are already four times our market share on Azure stack of our traditional business. We were the first to launch our ThinkAgile on Broadwell and on Skylake with the Azure Stack Infrastructure. And on VMware we're about twice our market segment share. We were the first to deliver an Intel-optimized Optane-certified VSAN node. And with Optane technology, we're delivering 50 percent more VM density than any competitive SSD system in the marketplace, about 10 times lower latency, four times the performance of any SSD system out there, and Lenovo's first to market on that. And at VMworld you saw CEO Pat Gelsinger of VMware talked about project dimension, which is Edge as a service, and we're the only OEM beyond the Dell family that is participating today in project dimension. Beyond that you're going to see a number of other partnerships we have. I'm excited that we have the city of Bogota Columbia here, an eight million person city, where we announced a 3,000 camera video surveillance solution last month. With pivot three you're going to see city of Bogota in our breakout sessions. You're going to see a new partnership with Veeam around backup that's launching today. You're going to see partnerships with scale computing in IoT and hyper-converged infrastructure working on some of the largest retailers in the world. So again, everything out in the breakout session. Transitioning to storage and data management, it's been a great year for Lenovo, more than a 100 percent growth year-on-year, 2X market growth in flash arrays. IDC just reported 30 percent growth in storage, number one in price performance in the world and the best HPC storage product in the top 500 with our ThinkSystem DSS G, so strong coverage, but I'm excited today to announce for Transform 2.0 that Lenovo is launching the largest data management and storage portfolio in our 25-year data center history. (audience applauding) So a year ago, the largest server portfolio, becoming the largest fastest growing server OEM, today the largest storage portfolio, but as you saw this morning we're not doing it alone. Today Lenovo and NetApp, two global powerhouses are joining forces to deliver a multi-billion dollar global alliance in data management and storage to help customers through their intelligent transformation. As the fastest growing worldwide server leader and one of the fastest growing flash array and data management companies in the world, we're going to deliver more choice to customers than ever before, global scale that's never been seen, supply chain efficiencies, and rapidly accelerating innovation and solutions. So, let me unwrap this a little bit for you and talk about what we're announcing today. First, it's the largest portfolio in our history. You're going to see not just storage solutions launching today but a set of solution recipes from NetApp that are going to make Lenovo server and NetApp or Lenovo storage work better together. The announcement enables Lenovo to go from covering 15 percent of the global storage market to more than 90 percent of the global storage market and distribute these products in more than 160 countries around the world. So we're launching today, 10 new storage platforms, the ThinkSystem DE and ThinkSystem DM platforms. They're going to be centrally managed, so the same XClarity management that you've been using for server, you can now use across all of your storage platforms as well, and it'll be supported by the same 10,000 plus service personnel that are giving outstanding customer support to you today on the server side. And we didn't come up with this in the last month or the last quarter. We're announcing availability in ordering today and shipments tomorrow of the first products in this portfolio, so we're excited today that it's not just a future announcement but something you as customers can take advantage of immediately. (audience applauding) The second part of the announcement is we are announcing a joint venture in China. Not only will this be a multi-billion dollar global partnership, but Lenovo will be a 51 percent owner, NetApp a 49 percent owner of a new joint venture in China with the goal of becoming in the top three storage companies in the largest data and storage market in the world. We will deliver our R and D in China for China, pooling our IP and resources together, and delivering a single route to market through a complementary channel, not just in China but worldwide. And in the future I just want to tell everyone this is phase one. There is so much exciting stuff. We're going to be on the stage over the next year talking to you about around integrated solutions, next-generation technologies, and further synergies and collaborations. So, rather than just have me talk about it, I'd like to welcome to the stage our new partner NetApp and Brad Anderson who's the senior vice president and general manager of NetApp Cloud Infrastructure. (upbeat music) (audience applauding) >> Thank You Kirk. >> So Brad, we've known each other a long time. It's an exciting day. I'm going to give you the stage and allow you to say NetApp's perspective on this announcement. >> Very good, thank you very much, Kirk. Kirk and I go back to I think 1994, so hey good morning and welcome. My name is Brad Anderson. I manage the Cloud Infrastructure Group at NetApp, and I am honored and privileged to be here at Lenovo Transform, particularly today on today's announcement. Now, you've heard a lot about digital transformation about how companies have to transform their IT to compete in today's global environment. And today's announcement with the partnership between NetApp and Lenovo is what that's all about. This is the joining of two global leaders bringing innovative technology in a simplified solution to help customers modernize their IT and accelerate their global digital transformations. Drawing on the strengths of both companies, Lenovo's high performance compute world-class supply chain, and NetApp's hybrid cloud data management, hybrid flash and all flash storage solutions and products. And both companies providing our customers with the global scale for them to be able to meet their transformation goals. At NetApp, we're very excited. This is a quote from George Kurian our CEO. George spent all day yesterday with YY and Kirk, and would have been here today if it hadn't been also our shareholders meeting in California, but I want to just convey how excited we are for all across NetApp with this partnership. This is a partnership between two companies with tremendous market momentum. Kirk took you through all the amazing results that Lenovo has accomplished, number one in supercomputing, number one in performance, number one in x86 reliability, number one in x86 customers sat, number five in supply chain, really impressive and congratulations. Like Lenovo, NetApp is also on a transformation journey, from a storage company to the data authority in hybrid cloud, and we've seen some pretty impressive momentum as well. Just last week we became number one in all flash arrays worldwide, catching EMC and Dell, and we plan to keep on going by them, as we help customers modernize their their data centers with cloud connected flash. We have strategic partnerships with the largest hyperscalers to provide cloud native data services around the globe and we are having success helping our customers build their own private clouds with just, with a new disruptive hyper-converged technology that allows them to operate just like hyperscalers. These three initiatives has fueled NetApp's transformation, and has enabled our customers to change the world with data. And oh by the way, it has also fueled us to have meet or have beaten Wall Street's expectations for nine quarters in a row. These are two companies with tremendous market momentum. We are also building this partnership for long term success. We think about this as phase one and there are two important components to phase one. Kirk took you through them but let me just review them. Part one, the establishment of a multi-year commitment and a collaboration agreement to offer Lenovo branded flash products globally, and as Kurt said in 160 countries. Part two, the formation of a joint venture in PRC, People's Republic of China, that will provide long term commitment, joint product development, and increase go-to-market investment to meet the unique needs to China. Both companies will put in storage technologies and storage expertise to form an independent JV that establishes a data management company in China for China. And while we can dream about what phase two looks like, our entire focus is on making phase one incredibly successful and I'm pleased to repeat what Kirk, is that the first products are orderable and shippable this week in 160 different countries, and you will see our two companies focusing on the here and now. On our joint go to market strategy, you'll see us working together to drive strategic alignment, focused execution, strong governance, and realistic expectations and milestones. And it starts with the success of our customers and our channel partners is job one. Enabling customers to modernize their legacy IT with complete data center solutions, ensuring that our customers get the best from both companies, new offerings the fuel business success, efficiencies to reinvest in game-changing initiatives, and new solutions for new mission-critical applications like data analytics, IoT, artificial intelligence, and machine learning. Channel partners are also top of mind for both our two companies. We are committed to the success of our existing and our future channel partners. For NetApp channel partners, it is new pathways to new segments and to new customers. For Lenovo's channel partners, it is the competitive weapons that now allows you to compete and more importantly win against Dell, EMC, and HP. And the good news for both companies is that our channel partner ecosystem is highly complementary with minimal overlap. Today is the first day of a very exciting partnership, of a partnership that will better serve our customers today and will provide new opportunities to both our companies and to our partners, new products to our customers globally and in China. I am personally very excited. I will be on the board of the JV. And so, I look forward to working with you, partnering with you and serving you as we go forward, and with that, I'd like to invite Kirk back up. (audience applauding) >> Thank you. >> Thank you. >> Well, thank you, Brad. I think it's an exciting overview, and these products will be manufactured in China, in Mexico, in Hungary, and around the world, enabling this amazing supply chain we talked about to deliver in over 160 countries. So thank you Brad, thank you George, for the amazing partnership. So again, that's not all. In Transform 2.0, last year, we talked about the joint ventures that were coming. I want to give you a sneak peek at what you should expect at future Lenovo events around the world. We have this Transform in Beijing in a couple weeks. We'll then be repeating this in 20 different locations roughly around the world over the next year, and I'm excited probably more than ever about what else is coming. Let's talk about Telco 5G and network function virtualization. Today, Motorola phones are certified on 46 global networks. We launched the world's first 5G upgradable phone here in the United States with Verizon. Lenovo DCG sells to 58 telecommunication providers around the world. At Mobile World Congress in Barcelona and Shanghai, you saw China Telecom and China Mobile in the Lenovo booth, China Telecom showing a video broadband remote access server, a VBRAS, with video streaming demonstrations with 2x less jitter than they had seen before. You saw China Mobile with a virtual remote access network, a VRAN, with greater than 10 times the throughput and 10x lower latency running on Lenovo. And this year, we'll be launching a new NFV company, a software company in China for China to drive the entire NFV stack, delivering not just hardware solutions, but software solutions, and we've recently hired a new CEO. You're going to hear more about that over the next several quarters. Very exciting as we try to drive new economics into the networks to deliver these 20 billion devices. We're going to need new economics that I think Lenovo can uniquely deliver. The second on IoT and edge, we've integrated on the device side into our intelligent devices group. With everything that's going to consume electricity computes and communicates, Lenovo is in a unique position on the device side to take advantage of the communications from Motorola and being one of the largest device companies in the world. But this year, we're also going to roll out a comprehensive set of edge gateways and ruggedized industrial servers and edge servers and ISP appliances for the edge and for IoT. So look for that as well. And then lastly, as a service, you're going to see Lenovo delivering hardware as a service, device as a service, infrastructure as a service, software as a service, and hardware as a service, not just as a glorified leasing contract, but with IP, we've developed true flexible metering capability that enables you to scale up and scale down freely and paying strictly based on usage, and we'll be having those announcements within this fiscal year. So Transform 2.0, lots to talk about, NetApp the big news of the day, but a lot more to come over the next year from the Data Center group. So in summary, I'm excited that we have a lot of customers that are going to be on stage with us that you saw in the video. Lots of testimonials so that you can talk to colleagues of yourself. Alamos Gold from Canada, a Canadian gold producer, Caligo for data optimization and privacy, SciNet, the largest supercomputer we've ever put into North America, and the largest in Canada at the University of Toronto will be here talking about climate change. City of Bogota again with our hyper-converged solutions around smart city putting in 3,000 cameras for criminal detection, license plate detection, et cetera, and then more from a channel mid market perspective, Jerry's Foods, which is from my home state of Wisconsin, and Minnesota which has about 57 stores in the specialty foods market, and how they're leveraging our IoT solutions as well. So again, about five times the number of demos that we had last year. So in summary, first and foremost to the customers, thank you for your business. It's been a great journey and I think we're on a tremendous role. You saw from last year, we're trying to build credibility with you. After the largest server portfolio, we're now the fastest-growing server OEM per Gardner, number one in performance, number one in reliability, number one in customer satisfaction, number one in supercomputing. Today, the largest storage portfolio in our history, with the goal of becoming the fastest growing storage company in the world, top three in China, multibillion-dollar collaboration with NetApp. And the transformation is going to continue with new edge gateways, edge servers, NFV solutions, telecommunications infrastructure, and hardware as a service with dynamic metering. So thank you for your time. I've looked forward to meeting many of you over the next day. We appreciate your business, and with that, I'd like to bring up Rod Lappen to introduce our next speaker. Rod? (audience applauding) >> Thanks, boss, well done. Alright ladies and gentlemen. No real secret there. I think we've heard why I might talk about the fourth Industrial Revolution in data and exactly what's going on with that. You've heard Kirk with some amazing announcements, obviously now with our NetApp partnership, talk about 5G, NFV, cloud, artificial intelligence, I think we've hit just about all the key hot topics. It's with great pleasure that I now bring up on stage Mr. Christian Teismann, our senior vice president and general manager of commercial business for both our PCs and our IoT business, so Christian Teismann. (techno music) Here, take that. >> Thank you. I think I'll need that. >> Okay, Christian, so obviously just before we get down, you and I last year, we had a bit of a chat about being in New York. >> Exports. >> You were an expat in New York for a long time. >> That's true. >> And now, you've moved from New York. You're in Munich? >> Yep. >> How does that feel? >> Well Munich is a wonderful city, and it's a great place to live and raise kids, but you know there's no place in the world like New York. >> Right. >> And I miss it a lot, quite frankly. >> So what exactly do you miss in New York? >> Well there's a lot of things in New York that are unique, but I know you spent some time in Japan, but I still believe the best sushi in the world is still in New York City. (all laughing) >> I will beg to differ. I will beg to differ. I think Mr. Guchi-san from Softbank is here somewhere. He will get up an argue very quickly that Japan definitely has better sushi than New York. But obviously you know, it's a very very special place, and I have had sushi here, it's been fantastic. What about Munich? Anything else that you like in Munich? >> Well I mean in Munich, we have pork knuckles. >> Pork knuckles. (Christian laughing) Very similar sushi. >> What is also very fantastic, but we have the real, the real Oktoberfest in Munich, and it starts next week, mid-September, and I think it's unique in the world. So it's very special as well. >> Oktoberfest. >> Yes. >> Unfortunately, I'm not going this year, 'cause you didn't invite me, but-- (audience chuckling) How about, I think you've got a bit of a secret in relation to Oktoberfest, probably not in Munich, however. >> It's a secret, yes, but-- >> Are you going to share? >> Well I mean-- >> See how I'm putting you on the spot? >> In the 10 years, while living here in New York, I was a regular visitor of the Oktoberfest at the Lower East Side in Avenue C at Zum Schneider, where I actually met my wife, and she's German. >> Very good. So, how about a big round of applause? (audience applauding) Not so much for Christian, but more I think, obviously for his wife, who obviously had been drinking and consequently ended up with you. (all laughing) See you later, mate. >> That's the beauty about Oktoberfest, but yes. So first of all, good morning to everybody, and great to be back here in New York for a second Transform event. New York clearly is the melting pot of the world in terms of culture, nations, but also business professionals from all kind of different industries, and having this event here in New York City I believe is manifesting what we are trying to do here at Lenovo, is transform every aspect of our business and helping our customers on the journey of intelligent transformation. Last year, in our transformation on the device business, I talked about how the PC is transforming to personalized computing, and we've made a lot of progress in that journey over the last 12 months. One major change that we have made is we combined all our device business under one roof. So basically PCs, smart devices, and smart phones are now under the roof and under the intelligent device group. But from my perspective makes a lot of sense, because at the end of the day, all devices connect in the modern world into the cloud and are operating in a seamless way. But we are also moving from a device business what is mainly a hardware focus historically, more and more also into a solutions business, and I will give you during my speech a little bit of a sense of what we are trying to do, as we are trying to bring all these components closer together, and specifically also with our strengths on the data center side really build end-to-end customer solution. Ultimately, what we want to do is make our business, our customer's businesses faster, safer, and ultimately smarter as well. So I want to look a little bit back, because I really believe it's important to understand what's going on today on the device side. Many of us have still grown up with phones with terminals, ultimately getting their first desktop, their first laptop, their first mobile phone, and ultimately smartphone. Emails and internet improved our speed, how we could operate together, but still we were defined by linear technology advances. Today, the world has changed completely. Technology itself is not a limiting factor anymore. It is how we use technology going forward. The Internet is pervasive, and we are not yet there that we are always connected, but we are nearly always connected, and we are moving to the stage, that everything is getting connected all the time. Sharing experiences is the most driving force in our behavior. In our private life, sharing pictures, videos constantly, real-time around the world, with our friends and with our family, and you see the same behavior actually happening in the business life as well. Collaboration is the number-one topic if it comes down to workplace, and video and instant messaging, things that are coming from the consumer side are dominating the way we are operating in the commercial business as well. Most important beside technology, that a new generation of workforce has completely changed the way we are working. As the famous workforce the first generation of Millennials that have now fully entered in the global workforce, and the next generation, it's called Generation Z, is already starting to enter the global workforce. By 2025, 75 percent of the world's workforce will be composed out of two of these generations. Why is this so important? These two generations have been growing up using state-of-the-art IT technology during their private life, during their education, school and study, and are taking these learnings and taking these behaviors in the commercial workspace. And this is the number one force of change that we are seeing in the moment. Diverse workforces are driving this change in the IT spectrum, and for years in many of our customers' focus was their customer focus. Customer experience also in Lenovo is the most important thing, but we've realized that our own human capital is equally valuable in our customer relationships, and employee experience is becoming a very important thing for many of our customers, and equally for Lenovo as well. As you have heard YY, as we heard from YY, Lenovo is focused on intelligent transformation. What that means for us in the intelligent device business is ultimately starting with putting intelligence in all of our devices, smartify every single one of our devices, adding value to our customers, traditionally IT departments, but also focusing on their end users and building products that make their end users more productive. And as a world leader in commercial devices with more than 33 percent market share, we can solve problems been even better than any other company in the world. So, let's talk about transformation of productivity first. We are in a device-led world. Everything we do is connected. There's more interaction with devices than ever, but also with spaces who are increasingly becoming smart and intelligent. YY said it, by 2020 we have more than 20 billion connected devices in the world, and it will grow exponentially from there on. And users have unique personal choices for technology, and that's very important to recognize, and we call this concept a digital wardrobe. And it means that every single end-user in the commercial business is composing his personal wardrobe on an ongoing basis and is reconfiguring it based on the work he's doing and based where he's going and based what task he is doing. I would ask all of you to put out all the devices you're carrying in your pockets and in your bags. You will see a lot of you are using phones, tablets, laptops, but also cameras and even smartwatches. They're all different, but they have one underlying technology that is bringing it all together. Recognizing digital wardrobe dynamics is a core factor for us to put all the devices under one roof in IDG, one business group that is dedicated to end-user solutions across mobile, PC, but also software services and imaging, to emerging technologies like AR, VR, IoT, and ultimately a AI as well. A couple of years back there was a big debate around bring-your-own-device, what was called consumerization. Today consumerization does not exist anymore, because consumerization has happened into every single device we build in our commercial business. End users and commercial customers today do expect superior display performance, superior audio, microphone, voice, and touch quality, and have it all connected and working seamlessly together in an ease of use space. We are already deep in the journey of personalized computing today. But the center point of it has been for the last 25 years, the mobile PC, that we have perfected over the last 25 years, and has been the undisputed leader in mobility computing. We believe in the commercial business, the ThinkPad is still the core device of a digital wardrobe, and we continue to drive the success of the ThinkPad in the marketplace. We've sold more than 140 million over the last 26 years, and even last year we exceeded nearly 11 million units. That is about 21 ThinkPads per minute, or one Thinkpad every three seconds that we are shipping out in the market. It's the number one commercial PC in the world. It has gotten countless awards but we felt last year after Transform we need to build a step further, in really tailoring the ThinkPad towards the need of the future. So, we announced a new line of X1 Carbon and Yoga at CES the Consumer Electronics Show. And the reason is not we want to sell to consumer, but that we do recognize that a lot of CIOs and IT decision makers need to understand what consumers are really doing in terms of technology to make them successful. So, let's take a look at the video. (suspenseful music) >> When you're the number one business laptop of all time, your only competition is yourself. (wall shattering) And, that's different. Different, like resisting heat, ice, dust, and spills. Different, like sharper, brighter OLA display. The trackpoint that reinvented controls, and a carbon fiber roll cage to protect what's inside, built by an engineering and design team, doing the impossible for the last 25 years. This is the number one business laptop of all time, but it's not a laptop. It's a ThinkPad. (audience applauding) >> Thank you very much. And we are very proud that Lenovo ThinkPad has been selected as the best laptop in the world in the second year in a row. I think it's a wonderful tribute to what our engineers have been done on this one. And users do want awesome displays. They want the best possible audio, voice, and touch control, but some users they want more. What they want is super power, and I'm really proud to announce our newest member of the X1 family, and that's the X1 extreme. It's exceptionally featured. It has six core I9 intel chipset, the highest performance you get in the commercial space. It has Nvidia XTX graphic, it is a 4K UHD display with HDR with Dolby vision and Dolby Atmos Audio, two terabyte in SSD, so it is really the absolute Ferrari in terms of building high performance commercial computer. Of course it has touch and voice, but it is one thing. It has so much performance that it serves also a purpose that is not typical for commercial, and I know there's a lot of secret gamers also here in this room. So you see, by really bringing technology together in the commercial space, you're creating productivity solutions of one of a kind. But there's another category of products from a productivity perspective that is incredibly important in our commercial business, and that is the workstation business . Clearly workstations are very specifically designed computers for very advanced high-performance workloads, serving designers, architects, researchers, developers, or data analysts. And power and performance is not just about the performance itself. It has to be tailored towards the specific use case, and traditionally these products have a similar size, like a server. They are running on Intel Xeon technology, and they are equally complex to manufacture. We have now created a new category as the ultra mobile workstation, and I'm very proud that we can announce here the lightest mobile workstation in the industry. It is so powerful that it really can run AI and big data analysis. And with this performance you can go really close where you need this power, to the sensors, into the cars, or into the manufacturing places where you not only wannna read the sensors but get real-time analytics out of these sensors. To build a machine like this one you need customers who are really challenging you to the limit. and we're very happy that we had a customer who went on this journey with us, and ultimately jointly with us created this product. So, let's take a look at the video. (suspenseful music) >> My world involves pathfinding both the hardware needs to the various work sites throughout the company, and then finding an appropriate model of desktop, laptop, or workstation to match those needs. My first impressions when I first seen the ThinkPad P1 was I didn't actually believe that we could get everything that I was asked for inside something as small and light in comparison to other mobile workstations. That was one of the I can't believe this is real sort of moments for me. (engine roars) >> Well, it's better than general when you're going around in the wind tunnel, which isn't alway easy, and going on a track is not necessarily the best bet, so having a lightweight very powerful laptop is extremely useful. It can take a Xeon processor, which can support ECC from when we try to load a full car, and when we're analyzing live simulation results. through and RCFT post processor or example. It needs a pretty powerful machine. >> It's come a long way to be able to deliver this. I hate to use the word game changer, but it is that for us. >> Aston Martin has got a lot of different projects going. There's some pretty exciting projects and a pretty versatile range coming out. Having Lenovo as a partner is certainly going to ensure that future. (engine roars) (audience applauds) >> So, don't you think the Aston Martin design and the ThinkPad design fit very well together? (audience laughs) So if Q, would get a new laptop, I think you would get a ThinkPad X P1. So, I want to switch gears a little bit, and go into something in terms of productivity that is not necessarily on top of the mind or every end user but I believe it's on top of the mind of every C-level executive and of every CEO. Security is the number one threat in terms of potential risk in your business and the cost of cybersecurity is estimated by 2020 around six trillion dollars. That's more than the GDP of Japan and we've seen a significant amount of data breach incidents already this years. Now, they're threatening to take companies out of business and that are threatening companies to lose a huge amount of sensitive customer data or internal data. At Lenovo, we are taking security very, very seriously, and we run a very deep analysis, around our own security capabilities in the products that we are building. And we are announcing today a new brand under the Think umbrella that is called ThinkShield. Our goal is to build the world's most secure PC, and ultimately the most secure devices in the industry. And when we looked at this end-to-end, there is no silver bullet around security. You have to go through every aspect where security breaches can potentially happen. That is why we have changed the whole organization, how we look at security in our device business, and really have it grouped under one complete ecosystem of solutions, Security is always something where you constantly are getting challenged with the next potential breach the next potential technology flaw. As we keep innovating and as we keep integrating, a lot of our partners' software and hardware components into our products. So for us, it's really very important that we partner with companies like Intel, Microsoft, Coronet, Absolute, and many others to really as an example to drive full encryption on all the data seamlessly, to have multi-factor authentication to protect your users' identity, to protect you in unsecured Wi-Fi locations, or even simple things like innovation on the device itself, to and an example protect the camera, against usage with a little thing like a thinkShutter that you can shut off the camera. SO what I want to show you here, is this is the full portfolio of ThinkShield that we are announcing today. This is clearly not something I can even read to you today, but I believe it shows you the breadth of security management that we are announcing today. There are four key pillars in managing security end-to-end. The first one is your data, and this has a lot of aspects around the hardware and the software itself. The second is identity. The third is the security around online, and ultimately the device itself. So, there is a breakout on security and ThinkShield today, available in the afternoon, and encourage you to really take a deeper look at this one. The first pillar around productivity was the device, and around the device. The second major pillar that we are seeing in terms of intelligent transformation is the workspace itself. Employees of a new generation have a very different habit how they work. They split their time between travel, working remotely but if they do come in the office, they expect a very different office environment than what they've seen in the past in cubicles or small offices. They come into the office to collaborate, and they want to create ideas, and they really work in cross-functional teams, and they want to do it instantly. And what we've seen is there is a huge amount of investment that companies are doing today in reconfiguring real estate reconfiguring offices. And most of these kind of things are moving to a digital platform. And what we are doing, is we want to build an entire set of solutions that are just focused on making the workspace more productive for remote workforce, and to create technology that allow people to work anywhere and connect instantly. And the core of this is that we need to be, the productivity of the employee as high as possible, and make it for him as easy as possible to use these kind of technologies. Last year in Transform, I announced that we will enter the smart office space. By the end of last year, we brought the first product into the market. It's called the Hub 500. It's already deployed in thousands of our customers, and it's uniquely focused on Microsoft Skype for Business, and making meeting instantly happen. And the product is very successful in the market. What we are announcing today is the next generation of this product, what is the Hub 700, what has a fantastic audio quality. It has far few microphones, and it is usable in small office environment, as well as in major conference rooms, but the most important part of this new announcement is that we are also announcing a software platform, and this software platform allows you to run multiple video conferencing software solutions on the same platform. Many of you may have standardized for one software solution or for another one, but as you are moving in a world of collaborating instantly with partners, customers, suppliers, you always will face multiple software standards in your company, and Lenovo is uniquely positioned but providing a middleware platform for the device to really enable multiple of these UX interfaces. And there's more to come and we will add additional UX interfaces on an ongoing base, based on our customer requirements. But this software does not only help to create a better experience and a higher productivity in the conference room or the huddle room itself. It really will allow you ultimately to manage all your conference rooms in the company in one instance. And you can run AI technologies around how to increase productivity utilization of your entire conference room ecosystem in your company. You will see a lot more devices coming from the node in this space, around intelligent screens, cameras, and so on, and so on. The idea is really that Lenovo will become a core provider in the whole movement into the smart office space. But it's great if you have hardware and software that is really supporting the approach of modern IT, but one component that Kirk also mentioned is absolutely critical, that we are providing this to you in an as a service approach. Get it what you want, when you need it, and pay it in the amount that you're really using it. And within UIT there is also I think a new philosophy around IT management, where you're much more focused on the value that you are consuming instead of investing into technology. We are launched as a service two years back and we already have a significant number of customers running PC as a service, but we believe as a service will stretch far more than just the PC device. It will go into categories like smart office. It might go even into categories like phone, and it will definitely go also in categories like storage and server in terms of capacity management. I want to highlight three offerings that we are also displaying today that are sort of building blocks in terms of how we really run as a service. The first one is that we collaborated intensively over the last year with Microsoft to be the launch pilot for their Autopilot offering, basically deploying images easily in the same approach like you would deploy a new phone on the network. The purpose really is to make new imaging and enabling new PC as seamless as it's used to be in the phone industry, and we have a complete set of offerings, and already a significant number customers have deployed Autopilot with Lenovo. The second major offering is Premier Support, like in the in the server business, where Premier Support is absolutely critical to run critical infrastructure, we see a lot of our customers do want to have Premier Support for their end users, so they can be back into work basically instantly, and that you have the highest possible instant repair on every single device. And then finally we have a significant amount of time invested into understanding how the software as a service really can get into one philosophy. And many of you already are consuming software as a service in many different contracts from many different vendors, but what we've created is one platform that really can manage this all together. All these things are the foundation for a device as a service offering that really can manage this end-to-end. So, implementing an intelligent workplace can be really a daunting prospect depending on where you're starting from, and how big your company ultimately is. But how do you manage the transformation of technology workspace if you're present in 50 or more countries and you run an infrastructure for more than 100,000 people? Michelin, famous for their tires, infamous for their Michelin star restaurant rating, especially in New York, and instantly recognizable by the Michelin Man, has just doing that. Please welcome with me Damon McIntyre from Michelin to talk to us about the challenges and transforming collaboration and productivity. (audience applauding) (electronic dance music) Thank you, David. >> Thank you, thank you very much. >> We on? >> So, how do you feel here? >> Well good, I want to thank you first of all for your partnership and the devices you create that helped us design, manufacture, and distribute the best tire in the world, okay? I just had to say it and put out there, alright. And I was wondering, were those Michelin tires on that Aston Martin? >> I'm pretty sure there is no other tire that would fit to that. >> Yeah, no, thank you, thank you again, and thank you for the introduction. >> So, when we talk about the transformation happening really in the workplace, the most tangible transformation that you actually see is the drastic change that companies are doing physically. They're breaking down walls. They're removing cubes, and they're moving to flexible layouts, new desks, new huddle rooms, open spaces, but the underlying technology for that is clearly not so visible very often. So, tell us about Michelin's strategy, and the technology you are deploying to really enable this corporation. >> So we, so let me give a little bit a history about the company to understand the daunting tasks that we had before us. So we have over 114,000 people in the company under 170 nationalities, okay? If you go to the corporate office in France, it's Clermont. It's about 3,000 executives and directors, and what have you in the marketing, sales, all the way up to the chain of the global CIO, right? Inside of the Americas, we merged in Americas about three years ago. Now we have the Americas zone. There's about 28,000 employees across the Americas, so it's really, it's really hard in a lot of cases. You start looking at the different areas that you lose time, and you lose you know, your productivity and what have you, so there, it's when we looked at different aspects of how we were going to manage the meeting rooms, right? because we have opened up our areas of workspace, our CIO, CEOs in our zones will no longer have an office. They'll sit out in front of everybody else and mingle with the crowd. So, how do you take those spaces that were originally used by an individual but now turn them into like meeting rooms? So, we went through a large process, and looked at the Hub 500, and that really met our needs, because at the end of the day what we noticed was, it was it was just it just worked, okay? We've just added it to the catalog, so we're going to be deploying it very soon, and I just want to again point that I know everybody struggles with this, and if you look at all the minutes that you lose in starting up a meeting, and we know you know what I'm talking about when I say this, it equates to many many many dollars, okay? And so at the end the day, this product helps us to be more efficient in starting up the meeting, and more productive during the meeting. >> Okay, it's very good to hear. Another major trend we are seeing in IT departments is taking a more hands-off approach to hardware. We're seeing new technologies enable IT to create a more efficient model, how IT gets hardware in the hands of end-users, and how they are ultimately supporting themselves. So what's your strategy around the lifecycle management of the devices? >> So yeah you mentioned, again, we'll go back to the 114,000 employees in the company, right? You imagine looking at all the devices we use. I'm not going to get into the number of devices we have, but we have a set number that we use, and we have to go through a process of deploying these devices, which we right now service our own image. We build our images, we service them through our help desk and all that process, and we go through it. If you imagine deploying 25,000 PCs in a year, okay? The time and the daunting task that's behind all that, you can probably add up to 20 or 30 people just full-time doing that, okay? So, with partnering with Lenovo and their excellent technology, their technical teams, and putting together the whole process of how we do imaging, it now lifts that burden off of our folks, and it shifts it into a more automated process through the cloud, okay? And, it's with the Autopilot on the end of the project, we'll have Autopilot fully engaged, but what I really appreciate is how Lenovo really, really kind of got with us, and partnered with us for the whole process. I mean it wasn't just a partner between Michelin and Lenovo. Microsoft was also partnered during that whole process, and it really was a good project that we put together, and we hope to have something in a full production mode next year for sure. >> So, David thank you very, very much to be here with us on stage. What I really want to say, customers like you, who are always challenging us on every single aspect of our capabilities really do make the big difference for us to get better every single day and we really appreciate the partnership. >> Yeah, and I would like to say this is that I am, I'm doing what he's exactly said he just said. I am challenging Lenovo to show us how we can innovate in our work space with your devices, right? That's a challenge, and it's going to be starting up next year for sure. We've done some in the past, but I'm really going to challenge you, and my whole aspect about how to do that is bring you into our workspace. Show you how we make how we go through the process of making tires and all that process, and how we distribute those tires, so you can brainstorm, come back to the table and say, here's a device that can do exactly what you're doing right now, better, more efficient, and save money, so thank you. >> Thank you very much, David. (audience applauding) Well it's sometimes really refreshing to get a very challenging customers feedback. And you know, we will continue to grow this business together, and I'm very confident that your challenge will ultimately help to make our products even more seamless together. So, as we now covered productivity and how we are really improving our devices itself, and the transformation around the workplace, there is one pillar left I want to talk about, and that's really, how do we make businesses smarter than ever? What that really means is, that we are on a journey on trying to understand our customer's business, deeper than ever, understanding our customer's processes even better than ever, and trying to understand how we can help our customers to become more competitive by injecting state-of-the-art technology in this intelligent transformation process, into core processes. But this cannot be done without talking about a fundamental and that is the journey towards 5G. I really believe that 5G is changing everything the way we are operating devices today, because they will be connected in a way like it has never done before. YY talked about you know, 20 times 10 times the amount of performance. There are other studies that talk about even 200 times the performance, how you can use these devices. What it will lead to ultimately is that we will build devices that will be always connected to the cloud. And, we are preparing for this, and Kirk already talked about, and how many operators in the world we already present with our Moto phones, with how many Telcos we are working already on the backend, and we are working on the device side on integrating 5G basically into every single one of our product in the future. One of the areas that will benefit hugely from always connected is the world of virtual reality and augmented reality. And I'm going to pick here one example, and that is that we have created a commercial VR solution for classrooms and education, and basically using consumer type of product like our Mirage Solo with Daydream and put a solution around this one that enables teachers and schools to use these products in the classroom experience. So, students now can have immersive learning. They can studying sciences. They can look at environmental issues. They can exploring their careers, or they can even taking a tour in the next college they're going to go after this one. And no matter what grade level, this is how people will continue to learn in the future. It's quite a departure from the old world of textbooks. In our area that we are looking is IoT, And as YY already elaborated, we are clearly learning from our own processes around how we improve our supply chain and manufacturing and how we improve also retail experience and warehousing, and we are working with some of the largest companies in the world on pilots, on deploying IoT solutions to make their businesses, their processes, and their businesses, you know, more competitive, and some of them you can see in the demo environment. Lenovo itself already is managing 55 million devices in an IoT fashion connecting to our own cloud, and constantly improving the experience by learning from the behavior of these devices in an IoT way, and we are collecting significant amount of data to really improve the performance of these systems and our future generations of products on a ongoing base. We have a very strong partnership with a company called ADLINK from Taiwan that is one of the leading manufacturers of manufacturing PC and hardened devices to create solutions on the IoT platform. The next area that we are very actively investing in is commercial augmented reality. I believe augmented reality has by far more opportunity in commercial than virtual reality, because it has the potential to ultimately improve every single business process of commercial customers. Imagine in the future how complex surgeries can be simplified by basically having real-time augmented reality information about the surgery, by having people connecting into a virtual surgery, and supporting the surgery around the world. Visit a furniture store in the future and see how this furniture looks in your home instantly. Doing some maintenance on some devices yourself by just calling the company and getting an online manual into an augmented reality device. Lenovo is exploring all kinds of possibilities, and you will see a solution very soon from Lenovo. Early when we talked about smart office, I talked about the importance of creating a software platform that really run all these use cases for a smart office. We are creating a similar platform for augmented reality where companies can develop and run all their argumented reality use cases. So you will see that early in 2019 we will announce an augmented reality device, as well as an augmented reality platform. So, I know you're very interested on what exactly we are rolling out, so we will have a first prototype view available there. It's still a codename project on the horizon, and we will announce it ultimately in 2019, but I think it's good for you to take a look what we are doing here. So, I just wanted to give you a peek on what we are working beyond smart office and the device productivity in terms of really how we make businesses smarter. It's really about increasing productivity, providing you the most secure solutions, increase workplace collaboration, increase IT efficiency, using new computing devices and software and services to make business smarter in the future. There's no other company that will enable to offer what we do in commercial. No company has the breadth of commercial devices, software solutions, and the same data center capabilities, and no other company can do more for your intelligent transformation than Lenovo. Thank you very much. (audience applauding) >> Thanks mate, give me that. I need that. Alright, ladies and gentlemen, we are done. So firstly, I've got a couple of little housekeeping pieces at the end of this and then we can go straight into going and experiencing some of the technology we've got on the left-hand side of the room here. So, I want to thank Christian obviously. Christian, awesome as always, some great announcements there. I love the P1. I actually like the Aston Martin a little bit better, but I'll take either if you want to give me one for free. I'll take it. We heard from YY obviously about the industry and how the the fourth Industrial Revolution is impacting us all from a digital transformation perspective, and obviously Kirk on DCG, the great NetApp announcement, which is going to be really exciting, actually that Twitter and some of the social media panels are absolutely going crazy, so it's good to see that the industry is really taking some impact. Some of the publications are really great, so thank you for the media who are obviously in the room publishing right no. But now, I really want to say it's all of your turn. So, all of you up the back there who are having coffee, it's your turn now. I want everyone who's sitting down here after this event move into there, and really take advantage of the 15 breakouts that we've got set there. There are four breakout sessions from a time perspective. I want to try and get you all out there at least to use up three of them and use your fourth one to get out and actually experience some of the technology. So, you've got four breakout sessions. A lot of the breakout sessions are actually done twice. If you have not downloaded the app, please download the app so you can actually see what time things are going on and make sure you're registering correctly. There's a lot of great experience of stuff out there for you to go do. I've got one quick video to show you on some of the technology we've got and then we're about to close. Alright, here we are acting crazy. Now, you can see obviously, artificial intelligence machine learning in the browser. God, I hate that dance, I'm not a Millenial at all. It's effectively going to be implemented by healthcare. I want you to come around and test that out. Look at these two guys. This looks like a Lenovo management meeting to be honest with you. These two guys are actually concentrating, using their brain power to race each others in cars. You got to come past and give that a try. Give that a try obviously. Fantastic event here, lots of technology for you to experience, and great partners that have been involved as well. And so, from a Lenovo perspective, we've had some great alliance partners contribute, including obviously our number one partner, Intel, who's been a really big loyal contributor to us, and been a real part of our success here at Transform. Excellent, so please, you've just seen a little bit of tech out there that you can go and play with. I really want you, I mean go put on those black things, like Scott Hawkins our chief marketing officer from Lenovo's DCG business was doing and racing around this little car with his concentration not using his hands. He said it's really good actually, but as soon as someone comes up to speak to him, his car stops, so you got to try and do better. You got to try and prove if you can multitask or not. Get up there and concentrate and talk at the same time. 62 different breakouts up there. I'm not going to go into too much detai, but you can see we've got a very, very unusual numbering system, 18 to 18.8. I think over here we've got a 4849. There's a 4114. And then up here we've got a 46.1 and a 46.2. So, you need the decoder ring to be able to understand it. Get over there have a lot of fun. Remember the boat leaves today at 4:00 o'clock, right behind us at the pier right behind us here. There's 400 of us registered. Go onto the app and let us know if there's more people coming. It's going to be a great event out there on the Hudson River. Ladies and gentlemen that is the end of your keynote. I want to thank you all for being patient and thank all of our speakers today. Have a great have a great day, thank you very much. (audience applauding) (upbeat music) ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ba do ♪

>> Announcer: Live, from San Francisco, it's theCUBE. Covering Red Hat Summit 2018. Brought to you by Red Hat. >> Hello everyone, welcome back, this is day three of theCUBE's exclusive coverage of Red Hat Summit 2018, live in San Francisco, California, at Moscone West. We're out in the open, in the middle of the floor here, I'm John Furrier, your co-host, with my co-host to speak, John Troyer, co-founder of TechReckoning, advisory and community development firm, our next guest is CUBE alumni Kim Stevenson, Senior Vice President, General Manager of the Data Center Group Solution segment at Lenovo, great to see you. >> Hey, how are you? >> Thanks for coming on, so Red Hat Summit, Lenovo, okay, how does that fit together for you guys, Data Center obviously is cloud now, and you got on-premise-- >> We're both in Raleigh (Kim laughs) >> You moved to Raleigh, news, what's the update? Where's that connection with an hybrid cloud is taking this world by storm? >> Yeah, so, we're a great partner with Red Hat, and we're very focused on enabling that hybrid enterprise through hybrid cloud. So one of the things that we've done, we do a lot of co-development, but one of the things is we've taken our systems management software, which is Xclarity, and we're the first to embed that into cloud forms, so that we can move assets, public assets to private assets, and vice versa, and that wouldn't be possible without working really closely with Red Hat, so-- >> Well Red Hat's been very strong at support, and you go to the RHL side, on the operating system side, very reliable, it's got years and years of experience, but it's always been kind of let's certify the hardware, and now that you have a hardware at the baseline moving up the stack, you have OpenShift, getting huge success, Kubernetes, now you've got multiple clouds, which has other hardware, security becomes a concern, we hear that, okay, security being on top of that's a really big deal. How does that change the game for you guys, how are you guys adjusting to that, because it requires everyone to do more work, but now you got automation playing a role, take us through that relationship between from the hardware all the way up to the stack. >> Yeah, and it is the weakest link issue, right, that every piece of the solution has to be secure in and its own right, and the solution has to be secure, right? So, we do a lot in the hardware environment through our supply chain, we have efficacy of every part and component that goes in, every piece of software loaded through manufacturing, one of the benefits of having your own manufacturing organization, so we know what give is a secure platform when there is ready to go. But then as you start to add the software, this is where things like containers become really important, and the ability to do monitoring of the environment, without having to stop the environment. And, so, we have a lot of investment going in OpenShift, and we've launched recently a DevOps practice, based on OpenShift, to actually accelerate the deployment of more and more containers, to again, figure out the security by design versus security after the fact. The problem with monitoring is it's after the fact. You want to design in, and you need to rethink the application structure in order to be able to do that. >> Talk about Lenovo's strategy and innovation around enterprise and emerging tech, because, consumerization of IT has been topic, we talk about going way back, many, many years, but actually, the role of consumer hardware products is becoming more and more enterprise, as IoT for instance, becomes a critical piece of the network, whether it's new wearables for humans, or a security camera on a network, the edge of the network is now the IoT device, but also the data center can be considered an edge, a big edge, right? So, you have now devices everywhere, that's not so much consumer-ish, it really has to be enterprise, and cloud enabled. What are you guys doing in the innovation area there? What are some of the things that Lenovo's doing to move the needle on really making a seamless IoT edge, secure, and functional? >> Yeah, so, one of the things, if you look back at the last ten years of IT, right, we've spent a lot of time as IT organizations consolidating data centers, and then, basically, getting rid of people in IT, right? The simplicity of an AWS, and Azure Stack, has actually driven down the number of operational people in IT. And now you're hitting this wave where, on-prem private clouds, are becoming more and more important. It could be the analytic workloads, it could be your blockchain workloads, but the workloads that you want to keep on-prem, and you're going, "Holy crap, I need a robust "operational organization to actually "make this come to life." So that was one of my predictions for this year, was operational simplicity rises in importance, and our response to that from a Lenovo solution is to build fully-integrated appliances. So we have fully-integrated private cloud appliances based on Azure Stack, based on Nutanix, based on VMware's vSAN, ready nodes, so that you pick either at the software layer only, or you can pick a fully-integrated appliance where it's integrated in the factory, that's what I call rack-and-roll, comes with white glove support, and you need far less operational people. And if you want to know, I mean, it's mimicking that simplicity that AWS offers, right? So it's really an application team that now can manage this entire operational environment. >> So is that targeted towards folks who are transitioning to cloud operations? One of the things about true private cloud is, they're essentially rebooting their organizations to be cloud operations, essentially. >> That's right, yeah. >> And so they want that plug-and-play, if you will, I use that old term, but, just out of the box, and then it becomes a resource on the network, is that what you-- >> Yeah, well everybody says, they say the hardware doesn't matter, well it matters (laughs), you know, because it what makes everything run. But what they mean by that is they don't want to mess with it, it needs to be a no-fuss, no-muss, it needs to be there like a utility, but not have to have the resource dedication that used to exist, where I needed storage admins, and database admins, and server admins. That level of monitoring and management has to be abstracted to the software layer, and you have to then be able to integrate your resource components to be able to do that, and look at it as a system, not as a component. And that's where we're headed with our strategy. >> Yeah, Kim, that's a great consumption model, right? An increasing part of the market, converged infrastructure, hybrid conversion infrastructure, like you say rack and, what'd you use? >> Rack-and-roll. >> Rack-and-roll, I like that. But the hardware does matter, right? A few years ago, if you'd listen to some people, we were going to be inside public clouds with some sort of undifferentiated pools of x86 servers out there, but it turns out the actual hardware, and the integration pieces, do matter. John mentioned IoT, AI, we've seen some examples of it here at the show, real world examples, and then for that, hardware really starts to matter. Can you talk a little bit about how Lenovo's looking to some of these emerging tech? >> At the beginning of the year, we formed an IoT division specifically to focus on IoT, and it really is bringing the edge to life, that's the mission of that particular organization. And so, we see sort of the remote office, branch office concept that has long since, I mean, it goes back to AS/400 days, right? You had branch office computing. But, reinventing itself in a modern way into these edge servers that can be rugged-ized, for, you know, we have edge servers in windmills, as an example, to manage and monitor a windmill farm, right? To optimize generation with wind shifts, those kinds of things, but it could be a closet, right, and it could-- >> It's not a data center. >> It's not a data center, is in a physical construct of a data center, is in the functionality provided, it is a data center, and so, we have from our PC group one of the things I'm pretty interested about is we have these things called stackables, so they're about five by eight inches of a PC, and then you can magnetically connect a battery to a magnetically projector to it through magnets, and you can get basically a stack of computing power. So, we've looked at that from our PC colleagues, and said, "Huh, that's the future of the edge, "but it needs to be ZEON class, "it needs to be enterprised as manageability,", and so it won't be five inches by eight inches when we're done, but, it will use some of that IP in the stackable nature, that will allow you, then I can put that stackable unit on the back of a television monitor for a smart display, I could put it back on a kiosk, or a vending machine, or, and all of the sudden, now I can get really different customer experience at the edge, and then I can parse data, maybe I don't need that data, to go back to the cloud, maybe I do need some of that, for, you know, machine-learning capabilities, I want to create big data sets back in the cloud, you can create that level of intelligence at the edge, and parse the data, to where you think the appropriate destination for that data is. >> How important is the IoT edge for you guys, and what should customers who are trying to merge cultures of OT, Operational Technology, with IT? 'Cause now you have IP devices. Which, it creates a security potential, but, there's now policy involved, you got to write software apps for it, you got unique use cases, talk about the importance of the IoT edge, for Lenovo, and what customers should be thinking about when they architect. >> So, my starting point is every piece of equipment becomes an IP-enabled device that will generate and collect data, you're going to have to figure out how to use that data, right? I said to our facilities leader, not too long ago, I said, I pointed at the table, at the conference table we were at, "What do you think this is?" And he's like, "Uh, it's table," and I'm like, "Hmm, no, to me, this is a smart table. "It could be IP-connected, and we could figure out, "is it the right value for this particular room," and you could just get into these crazy things, some will make sense, some won't make sense, but basically, I think every company is looking at how do they make their products and services smart by wrapping them with IT-enabled services. So that creates a new edge. We used to think of endpoints as PCs and phones, now there are cars, and you know, any form of transportation vehicle, they're windmills, they're semi-conductor equipment, you name it. And, that is sort of the new, that's where we are trying to attack, from the IoT perspective, what we're trying to help customers understand is, it's that data collection use case analysis that will enable them. One of my favorite examples is Ford has a prototype product, it's not a car, it's a baby crib. Now, why, right? So, through autonomous driving, they collect a bunch of data, everybody knows that when new parents have a cranky baby in the middle of the night, what do you do, you put 'em in the car, you take 'em for a ride, right? So this baby crib mimics the motion of a car, mimics the sound of an engine, and mimics the streetlights. There's no more taking your baby for a ride in the middle of the night, you put 'em in the bed, yeah, we've all done it! And this is why these endpoint devices collecting data to figure out these new products and services, and I just think, whether they ever bring that to market or not is not the point-- >> It's new experiences. >> It's a brilliant idea, and gives you a really good illustration of how creating these smart-enabled endpoints will allow you to generate new business opportunities. >> That's been a real theme here at the show, getting beyond the technology, right? Transformation is kind of a buzz word, but, I loved that they didn't put a huge amount of tech on stage, they really did talk to the people here, attendees, about, "Look, you've got to step up, "you've got to have new ideas, "you've got to affect the business." How are you, as you talk with both of your customers and inside Lenovo, addressing those kind of transformation and business ad sorts of deals? >> Yeah, look, I said today, and I really believe this, there's a new mandate for IT. The table stakes of keeping the business running, of course we have to keep the business running and running well, right? But really, every IT leader should be thinking about how do they redefine the customer experience for their organization, how they drive extreme productivity, through AI and blockchain and stuff, companies today are extraordinarily inefficient. We all live in a company, and we can tell you it's inefficient, right? But, you now have the ability to affordably drive out that inefficiency through this level of extreme productivity, and then everybody needs to be thinking about the future of the company, what are you in the business of, and how do you wrap those with new products and services, whether it's adjacent markets that you're going to create, or it's enhancements of your existing product, so you can reach new customers, new markets, and that's a far more interesting role for IT, but you can't give up the ship either, right? You cannot let operational performance decline while you're operating on the new mandate, which is why new operating models for IT, and the hyper-converged infrastructures, and in-- >> Containers have been a great help there too-- >> Containers, right, we just have to fundamentally re-architect, so that it's easy to actually drive change, flawless change, into the enterprise, and, the volume of change for our future is twice as great as what we've experienced in the past, and if you accept that as a premise, you'll rethink how you've done your architecture, and how you promote code into production, and how you manage that code going forward. >> We always love having you on theCUBE, 'cause you always do predictions, so I want to go back and get some predictions from you. What's your predictions next year, what do you see happening, you know, by the way, you have been right in a lot of your predictions, so, we have the tapes, we can go back and look at the videos. (laughs) Ah, I guess you were right on that one! What's your predictions this year, I mean obviously you've seen a lot going on, we are talking about, here on theCUBE, seeing what's going on with Kubernetes, change to OpenShift, that a new internet infrastructure's being recast, with compatibility modes, with containers, and Kubernetes for orchestration, cloud scale, you can come up with IoTs, a new infrastructure, and upgrade, is coming. So there's a lot of things happening. So what's your prediction, what's going to happen over the next year? >> Yeah, so I actually believe this is the first year that we have human capacity in IT organizations to reinvent the enterprise structure, which comes led with an enterprise architecture discussion. We've been moving more cloud to the cloud SaaS applications, you know, infrastructure as a service, and that is now absorbed enough into that you can stand back and look at it, so I do believe that, I call it data centers go micro, that the era of data center consolidation is over, that we will be more data centers, they just will be micro-data centers, because they will reflect the edge of every company, and those endpoint aggregation that you need to do to figure out what your data analysis is going to be. I also think that the operational simplicity that operating models are going to be redefined, as more and more private clouds get deployed, the structure of an IT organization has typically looked like this, you have four basic functions, you have IT engineering, IT operations, application development, and applications maintenance. That's typically the structure. I think you're going to see a collapsing of that. There actually is no reason for four independent functions, you need to organize by line of business, and the business outcome you're trying to drive, and, workers are going to need to be more versatile, in terms of being able to span, you're going to abstract a lot from the infrastructure, right, so you need to be able to manage at a higher level, therefore you can't organize in that discreet manner, and I think you'll start to see that come life-- >> John: Like horizontally scalable people. >> Sounds like horizontally scalable people, yeah. >> You've been a CIO at Intel, you have a lot of varieties of roles sittin' on some boards, you're now in an executive role at Lenovo, you're managing products, your responsibilities are building, shipping and business performance as well. How has your role changed? You've been there for about what, a year and a 1/2 or so? >> Yep, just about a year. >> Just about a year, what's the energy like, what are you bringing to the teams, what's your vision, what's your to do list within Lenovo to take it to the next level? >> Yeah, so when I started with Lenovo because I considered Lenovo the underdog, in the data center industry, which was going through phenomenal change, right? And so, the underdog has the best opportunity to capture hearts and minds and share when the industry's going through change, and so that's what attracted me. And it's been true. We organized, about this time last year, by customer segment, to serve the unique needs of our customers in terms of hyper-scaling customers, high performance compute and enterprise, both at the software-defined and traditional layer. And, in that one year, we've won six out of the ten top hyper-scalers in the world, from zero to six in a year, we consider that to be great, and we learn so much from their, they're doing a lot of customization, and they're two, three, four years ahead of what the general enterprise will consume, and so we're able to take that then and pull it back into our private cloud deployment strategy, into our enterprise management, software management, and strategy, because we see what they're doing, and use that as a virtual cycle of life, and we've got a lot of momentum in that area. And our employees are just excited about how much progress we've made in a year. And I would say if you pulled ten of 'em, nine out of ten would've said they wouldn't have believed we could make so much progress in one year. And that's a good feeling to have. Now, there's more work to do (laughs). >> Yeah, you have product leadership, you've got some great products, it's now just focus and getting on the right wave, right? I mean, 'cause the industry is changing! >> Kim: The industry is changing-- >> So you can move the needle big time. >> Yeah, and we've chosen from a software perspective, we've chosen a deep partnership model, with Red Hat as one of the partners, and so, if I look forward, and I would say, "Look, "we're going to have to go deeper and partner more broadly "across the ISV sphere to continue to bring "these tightly integrated appliances "in simple cloud deployment models to the market," and that's what you'll see us do next. >> Well it's exciting for you, and congratulation on that, and they're lucky to have you, and we know from when you were at Intel, you've seen the playbook, you know? (laughs) A lot of change going on, so great to see you, congratulations, we sure did love covering Lenovo, a lot of great action, thanks for your support, and thanks for coming on, sharing your insights here on theCUBE again, appreciate it. >> Thanks for having me. >> Kim Stevenson here outside theCUBE for Red Hat Summit 2018, live in San Francisco, I'm John Furrier with John Troyer, we'll be back with more, after this short break. (bright electronic music) (soothing music) >> Oftentimes the communities already know about a facility that's a problematic because, they smell it, they see it, but, again, they don't have the evidence to basically prove that whatever's happening with their health is related to that facility. (bright music) If you have a low-cost instrument that's easy to use, then all of the sudden, science becomes something that everyday people can do. (bright music) (somber electronic music) >> Hi I'm John Furrier, the co-founder of SiliconANGLE Media, and co-host of theCUBE. I've been in the tech business since I was 19, first programming on minicomputers in a large enterprise, and then worked at IBM and Hewlett Packard, a total of nine years in the enterprise, various jobs from programming, training, consulting, and ultimately, as an executive salesperson, and then started my first company in 1997. And moved to Silicon Valley in 1999, I've been here ever since. I've always loved technology, and I loved covering, you know, emerging technology. I was trained as a software developer, and loved business. And I loved the impact of software, and technology, to business. To me, creating technology that starts a company and creates value and jobs is probably one of the most rewarding things I've every been involved in. And, I bring that energy to theCUBE, because theCUBE is where all the ideas are, and where the experts are, where the people are, and I think what's most exciting about theCUBE is that we get to talk to people who are making things happen. Entrepreneurs, CEO of companies, venture capitalists, people who are really on a day-in and day-out basis, building great companies. And the technology business has just not a lot of real time, live TV coverage, and theCUBE is a nonlinear TV operation, we do everything that the TV guys on cable don't do. We do longer interviews, we ask tougher questions, we ask sometimes some light questions, we talk about the person, and what they feel about. It's not prompted, and scripted, it's a conversation, it's authentic. And for shows that have theCUBE coverage, it makes the show buzz, it creates excitement, and more importantly, it creates great content, and great digital assets, that can be shared instantaneously through the world. Over 31 million people have viewed theCUBE, and that is the result of great content, great conversations, and I'm so proud to be part of theCUBE, we're a great team. Hi, I'm John Furrier, thanks for watching theCUBE. (soothing music) >> Man: One of the community's goals.

[Music] and y'all know that these [Music] ladies and gentlemen please take your seats and silence your cellphone's our program will begin shortly ladies and gentlemen please welcome Red Hat executive vice president and chief people officer dallisa Alexander an executive vice president and chief marketing officer Tim Layton [Music] hi everyone we're so excited to kick off this afternoon day 2 at the Red Hat summit we've got a stage full of stories about people making amazing contributions with open source well you know dallisa you and I both been coming to this event for a long long time so what keeps you coming back well you know the summit started as a tech conference an amazing tech conference but now it's expanded to be so much more this year I'm really thrilled that we're able to showcase the power of open source going way beyond the data center and beyond the cloud and I'm here also on a secret mission oh yes I'm here to make sure you don't make too many bad dad jokes so there's no such thing as a bad dad they're just dad jokes are supposed to be bad but I promise to keep it to my limit but I do have one okay I may appeal to the geeks in the audience okay so what do you call a serving tray full of empty beer cans yeah we container platform well that is your one just the one that's what I only got a budget of one all right well you know I have to say though in all seriousness I'm with you yeah I've been coming to the summit since its first one and I always love to hear what new directions people are scoring what ideas they're pursuing and the perspectives they bring and this afternoon for example you're gonna hear a host of different perspectives from a lot of voices you wouldn't often see on a technology mainstage in our industry and it's all part of our open source series live and I have to say there's been a lot of good buzz about this session all week and I'm truly honored and inspired to be able to introduce them all later this afternoon I can tell you over the course the last few weeks I've spent time with all of them and every single one of them is brilliant they're an innovator they're fearless and they will restore your faith in the next generation you know I can't wait to see all these stories all of that and we've got some special guests that are surprised in store for us you know one of the things that I love about the people that are coming on the stage today with us is that so many of them teach others how to code and they're also bringing more people that are very different in to our open-source communities helping our community is more innovative and impactful and speaking of innovative and impactful that's the purpose of our open brand project right that's right we're actually in the process of exploring a refresh of our mark and we'd really like your help as well because we're doing this all in the open we've we've been doing it already in the open and so please join us in our feedback zone booth at the summit to tell us what you think now it's probably obvious but I'm big into Red Hat swag I've got the shirt I've got my pen I've got the socks so this is really important to me personally especially that when my 15 year old daughter sees me in my full regalia she calls me adorable okay that joke was fed horrible as you're done it wasn't it wasn't like I got way more well Tim thanks for helping us at this stage for today it's time to get started with our first guest all right I'll be back soon thank you the people I'm about to bring on the stage are making outstanding contributions to open source in new and brave ways they are the winners of the 2018 women and open source Awards the women in open source awards was created to highlight the contributions that women are making to open source and to inspire new generations to join the movement our judges narrowed down the panel a very long list just ten finalists and then the community selected our two winners that were honoring today let's learn a little bit more about them [Music] a lot of people assume because of my work that I must be a programmer engineer when in fact I specifically chose and communications paths for my career but what's fascinating to me is I was able to combine my love of Communications and helping people with technology and interesting ways I'm able to not be bound by the assumptions that everybody has about what the technology can and should be doing and can really ask the question of what if it could be different I always knew I wanted to be in healthcare just because I feel like has the most impact in helping people a lot of what I've been working on is geared towards developing technology and the health space towards developing world one of the coolest things about open-source is bringing people together working with other people to accomplish amazing things there's so many different projects that you could get involved in you don't even have to be the smartest person to be able to make impact when you're actually developing for someone I think it's really important to understand the need when you're pushing innovation forward sometimes the cooler thing is not [Music] for both of us to have kind of a health care focus I think it's cool because so many people don't think about health care as being something that open-source can contribute to it took a while for it to even get to the stage where it is now where people can open-source develop on concepts and health and it's an untapped potential to moving the world for this award is really about highlighting the work of dozens of women and men in this open source community that have made this project possible so I'm excited for more people to kind of turn their open-source interest in healthcare exciting here is just so much [Music] I am so honored to be able to welcome to the stage some brilliant women and opensource first one of our esteemed judges Denise Dumas VP of software engineering at Red Hat she's going to come up and share her insights on the judging process Denise so you've been judging since the very beginning 2015 what does this judge this being a judge represents you what does the award mean to you you know every year it becomes more and more challenging to select the women an opensource winner because every year we get more nominees and the quality of the submissions well there are women involved in so many fabulous projects so the things that I look for are the things that I value an open source initiative using technology to solve real world problems a work ethic that includes sin patches and altruism and I think that you'll see that this year's nominees this year's winners really epitomize those qualities totally agree shall we bring them on let's bring them on let's welcome to the stage Zoe de gay and Dana Lewis [Music] [Applause] [Applause] [Music] alright let's take a seat [Applause] well you both have had an interesting path to open-source zuy you're a biomedical engineering student any of it you have a degree in public relations tell us what led to your involvement and open source yeah so coming to college I was new I was interested in science but I didn't want to be a medical doctor and I didn't want to get involved in wet lab research so through classes I was taking oh that's why I did biomedical engineering and through classes I was taking I found the classroom to be very dry and I didn't know how how can I apply what I'm learning and so I got involved in a lot of entrepreneurship on campus and through one of the projects I was asked to build a front end and I had no idea how to go about doing that and I had some basic rudimentary coding knowledge and what happened was I got and was digging deep and then found an open source library that was basically building a similar thing that I needed and that was where I learned about open source and I went from there now I'm really excited to be able to contribute to many communities and work on a variety of projects amazing contributions Dana tell us about your journey well I come from a non-traditional background but I was diagnosed with type 1 diabetes at the age of 14 and over the next couple years got really frustrated with the limitations of my own diabetes devices but felt like I couldn't change them because that wasn't my job as a patient but it was actually through social media I discovered someone who had solved one of the problems that I had been found having which was getting date off my diabetes device and that's how I learned about open source was when he was willing to share his code with me so when we turned around and made this hybrid closed-loop artificial pancreas system it was a no brainer to make our work open source as well that's right absolutely and we see using the hash tag we are not waiting can you tell us about that yeah so this hash tag was created actually before I even discovered the open source diabetes world but I loved it because it really illustrates exactly the fact that we have this amazing technology in our hands in our pockets and we can solve some of our most common problems so yes you could wait but waiting is now a choice with open source we have the ability to solve some of our hardest problems even problems dealing with life and death that's great so zuy with the vaccine carrier system that you helped to build how were you able to identify the need and where did you build it yes so I think before you even build anything first need to understand what is the problem that you're trying to solve and that really was the case when starting this project I got to collaborate with engineers in Kampala Uganda and travel there and actually interview stakeholders in the medical field medical doctors as well as pharmaceutical companies and from there I really got to understand the health system there as well as what is how do vaccines enter the country and how can we solve this problem and that's how we came up with the solution for an IOT based vaccine carrier tracking system I think it's really important especially today when products might be flashy to also understand what is the need behind it and how do we solve problems with these products yeah yeah it's so interesting how both of you have this interest in health care Dana how do you see open-source playing a role in healthcare but first before you answer that tell us about your shirt so this shirt has the code of my artificial pancreas on it and I love it as an illustration of no thank you I love it as an illustration of how open-source is more than we think it is I've just been blown away by the contributions of people in my open-source communities and I think that that is what we should apply to all of healthcare there's a lot of tools and technologies that are solving real world problems and I think if we take what we know in technology and apply it to healthcare we'll solve a lot of problems more quickly but it really needs to be recognizing everything an open source it's the documentation it's the collaboration it's the problem-solving it's working together to take technologies that we didn't previously think we're applicable and finding new ways to apply it it's a great answer Sooey yeah I think especially where healthcare is related to people and open-source is the right way to collaborate with people all over the world especially in the project I've been working on we're looking at vaccines in Uganda but the same system can be applied in any other country and then you can look at cross countries health systems there and from there it becomes bigger and bigger and I think it's really important for people who have an idea and want to take it further to know that open-source is a way that you could actually take your idea further whether you have a technical background or not so yeah stories are amazing you're just an inspiration for everyone in open-source I want to thank you so much for joining us here today let's give another round of applause to our winners [Applause] [Music] you know the tagline for the award is honor celebrate inspire and I feel like we've been doing that today very very well and I know that so many people have been inspired today especially the next generation who go on to do things we can't even dream of yet [Music] I think collabs important because we need to make sure we get younger children interested in technology so that they understand the value of it but also that there are a lot of powerful women in technology and they can be one of them I hope after this experience maybe we'll get some engineers and some girls working our hot so cool right well we have some special guests convite for the club stage now I'd like to invite Tim back and also introduce Red Hat's own Jamie Chappell along with our collab students please welcome Gabby tenzen Sofia lyric Camila and a Volyn [Applause] you've been waiting for this moment for a while we're so excited hear all about your experiences but Jamie first tell us about collab sure so collab is red hats way of teaching students about the power of open source and collaboration we kicked off a little over a year ago in Boston and that was so successful that we decided to embark on an East Coast tour so in October we made stops at middle schools in New York DC and Raleigh and these amazing people over here are from that tour and this week they have gone from student to teacher so they've hosted two workshops where they have taught Red Hat summit attendees how to turn raspberry pies into digital cameras they assigned a poem song of the open road by Walt Whitman and they've been working at the open source stories booth helping to curate photos for an installation we're excited to finish up tomorrow so amazing and welcome future women in open source we want to know all about your experiences getting involved can you tell us tenzen tell us about something you've learned so during my experience with collab I learned many things but though however the ones that I valued the most were open source and women empowerment I just I was just so fascinated about how woman were creating and inventing things for the development of Technology which was really cool and I also learned about how open source OH was free and how anyone could access it and so I also learned that many people could you know add information to it so that other people could you learn from it and use it as well and during Monday's dinner I got this card saying that the world needed more people like you and I realized through my experience with collab that the world does not only need people like me but also everyone else to create great technology so ladies you know as you were working on your cameras and the coding was there a moment in time that you had an AHA experience and I'm really getting this and I can do this yes there was an aha moment because midway through I kind of figured out well this piece of the camera went this way and this piece of the camera did it go that way and I also figured out different features that were on the camera during the camera build I had to aha moments while I was making my camera the first one was during the process of making my camera where I realized I was doing something wrong and I had to collaborate with my peers in order to troubleshoot and we realize I was doing something wrong multiple times and I had to redo it and redo it but finally I felt accomplished because I finished something I worked hard on and my second aha moment was after I finished building my camera I just stared at it and I was in shock because I built something great and it was so such a nice feeling so we talked a lot about collaboration when we were at the lab tell us about how learning about collaboration in the lab is different than in school so in school collaboration is usually few and far between so when we went to collab it allowed us to develop new skills of creativity and joining our ideas with others to make something bigger and better and also allowed us to practice lots of cooperation an example of this is in my group everybody had a different problem with their pie camera and we had to use our different strengths to like help each other out and everybody ended up assembling and working PI camera great great awesome collaboration in collab and the school is very different because in collab we were more interactive more hands-on and we had to work closer together to achieve our own goals and collaboration isn't just about working together but also combining different ideas from different people to get a product that is so much better than some of its parts so girls one other interesting observation this actually may be for the benefit of the folks in our audience but out here we have represented literally hundreds and hundreds of companies all of whom are going to be actually looking for you to come to work for them after today we get first dibs that's right but um you know if you were to have a chance to speak to these companies and say what is it that they could do to help inspire you know your your friends and peers and get them excited about open source what would you say to them well I'm pretty sure we all have app store and I'm pretty sure we've all downloaded an app on that App Store well instead of us downloading app State well the computer companies or the phone companies they could give us the opportunity to program our own app and we could put it on the App Store great idea absolutely I've got to tell you I have a 15 year old daughter and I think you're all going to be an inspiration to her for the same absolutely so much so I see you brought some cameras why don't we go down and take a picture let's do it [Applause] all right I will play my very proud collab moderator role all right so one two three collab okay one two three [Applause] yeah so we're gonna let leave you and let you tell us more open source stories all right well thank you great job thank you all and enjoy the rest of your time at Summit so appreciate it thanks thank you everyone pretty awesome pretty awesome and I would just like to say they truly are fedorable that's just um so if you would like to learn more as you heard the girls say they're actually Manning our open-source stories booth at the summit you know please come down and say hello the stories you've seen thus far from our women and open-source winners as well as our co-op students are really bringing to life the theme of this year's summit the theme of ideas worth exploring and in that spirit what we'd like to do is explore another one today and that is how open-source concepts thrive and expand in the neverending organic way that they do much like the universe metaphor that you see us using here it's expanding in new perspectives and new ideas with voices beyond their traditional all starting to make open-source much bigger than what it was originally started as fact open-source goes back a long way long before actually the term existed in those early days you know in the early 80s and the like most open-source projects were sort of loosely organized collections of self-interested developers who are really trying to build low-cost more accessible replicas of commercial software yet here we are 2018 the world is completely different the open-source collaborative development model is the font of almost all original new innovation in software and they're driven from communities communities of innovation RedHat of course has been very fortunate to have been able to build an extraordinary company you know whose development model is harnessing these open-source innovations and in turning them into technologies consumable by companies even for their most mission-critical applications the theme for today though is we see open-source this open source style collaboration and innovation moving beyond just software this collaborative community innovation is starting to impact many facets of society and you're starting to see that even with the talks we've had already too and this explosion of community driven innovation you know is again akin to this universe metaphor it expands in all directions in a very organic way so for red hat you know being both beneficiaries of this approach and stewards of the open collaboration model we see it important for us to give voice to this broader view of open source stories now when we say open source in this context of course will meaning much more than just technology it's the style of collaboration the style of interaction it's the application of open source style methods to the innovation process it's all about accelerating innovation and expanding knowledge and this can be applied to a whole range of human endeavors of course in education as we just saw today on stage in agriculture in AI as the open source stories we shared at last year's summit in emerging industries like healthcare as we just saw in manufacturing even the arts all these are areas that are now starting to benefit from collaboration in driving innovation but do we see this potentially applying to almost any area of human endeavor and it expands again organically expanding existing communities with the addition of new voices and new participants catalyzing new communities and new innovations in new areas as we were talking about and even being applied inside organizations so that individual companies and teams can get the same collaborative innovation effects and most profound certainly in my perspective is so the limitless bounds that exist for how this open collaboration can start to impact some of humankind's most fundamental challenges we saw a couple of examples in fact with our women and open-source winners you know that's amazing but it also potentially is just the tip of the iceberg so we think it's important that these ideas you know as they continue to expand our best told through storytelling because it's a way that you can embrace them and find your own inspirations and that's fundamentally the vision behind our open-source stories and it's all about you know building on what's come before you know the term we use often is stay the shoulders are giants for a lot of the young people that you've seen on this stage and you're about to see on this stage you all are those giants you're the reason and an hour appears around the world are the reasons that open-source continues to expand for them you are those giants the other thing is we all particularly in this room those of us have been around open-source we have an open-source story of our own you know how were you introduced the power of open-source how did you engage a community who inspired you to participate those are all interesting elements of our personal open-source stories and in most cases each of them are punctuated by you here my question to the girls on stage an aha moment or aha moments you know that that moment of realization that enlightens you and causes you to think differently and to illustrate I'm going to spend just a few minutes sharing my open-source story for for one fundamental reason I've been in this industry for 38 years I am a living witness to the entire life of open-source going back to the early 80s I've been doing this in the open-source corner of the industry since the beginning if you've listened to Sirhan's command-line heroes podcasts my personal open story will actually be quite familiar with you because my arc is the same as the first several podcast as she talked about I'm sort of a walking history lesson in fact of open source I wound up at most of the defining moments that should have changed how we did this not that I was particularly part of the catalyst I was just there you know sort of like the Forrest Gump of open-source I was at all these historical things but I was never really sure how it went up there but it sure was interesting so with that as a little bit of context I'm just gonna share my aha moment how did I come to be you know a 59 year old in this industry for 38 years totally passionate about not just open source driving software innovation but what open source collaboration can do for Humanity so in my experience I had three aha moments I just like to share with you the first was in the early 80s and it was when I was introduced to the UNIX operating system and by the way if you have a ha moment in the 80s this is what it looks like so 1982 mustache 19 where were you 2018 beard that took a long time to do all right so as I said my first aha moment was about the technology itself in those early days of the 80s I became a product manager and what at the time was digital equipment corporation's workstation group and I was immediately drawn to UNIX I mean certainly these this is the early UNIX workstation so the user interface was cool but what I really loved was the ability to do interactive programming via the shell but by a--basically the command line and because it was my day job to help figure out where we took these technologies I was able to both work and learn and play all from the same platform so that alone was was really cool it was a very accessible platform the other thing that was interesting about UNIX is it was built with networking and and engagement in mind had its own networking stack built in tcp/ip of course and actually built in a set of services for those who've been around for a while think back to things like news groups and email lists those were the first enablers for cross internet collaboration and that was really the the elements that really spoke to me he said AHA to me that you know this technology is accessible and it lets people engage so that was my first aha moment my second aha moment came a little bit later at this point I was an executive actually running Digital Equipment Corporation UNIX systems division and it was at a time where the UNIX wars were raging right all these companies we all compartmentalized Trump those of the community and in the end it became an existential threat to the platform itself and we came to the point where we realized we needed to actually do something we needed to get ahead of this or UNIX would be doomed the particular way we came together was something called cozy but most importantly the the technique we learned was right under our noses and it was in the area of distributed computing distributed client-server computing inherently heterogenous and all these same companies that were fierce competitors at the operating system level were collaborating incredibly well around defining the generation of client-server and distributed computing technologies and it was all being done in open source under actually a BSD license initially and Microsoft was a participant Microsoft joined the open group which was the converged standards body that was driving this and they participated to ensure there was interoperability with Windows and and.net at the time now it's no spoiler alert that UNIX lost right we did but two really important things came out of that that sort of formed the basis of my second aha moment the first is as an industry we were learning how to collaborate right we were leveraging open source licenses we realized that you know these complex technologies are best done together and that was a huge epiphany for the industry at that time and the second of course is that event is what opened the door for Linux to actually solve that problem so my second aha was all about the open collaboration model works now at this point to be perfectly candidates late 1998 well we've been acquired by compacts when I'm doing the basically same role at Compaq and I really had embraced what the potential impact of this was going to be to the industry Linux was gaining traction there were a lot of open source projects emerging in distributed computing in other areas so it was pretty clear to me that the in business impact was going to be significant and and that register for me but there was seem to be a lot more to it that I hadn't really dropped yet and that's when I had my third aha moment and that was about the passion of open-source advocates the people so you know at this time I'm running a big UNIX group but we had a lot of those employees who were incredibly passionate about about Linux and open source they're actively participating so outside of working a lot of things and they were lobbying more and more for the leadership to embrace open source more directly and I have to say their passion was contagious and it eventually spread to me you know they were they were the catalyst for my personal passion and it also led me to rethink what it is we needed to go do and that's a passion that I carry forward to this day the one driven by the people and I'll tell you some interesting things many of those folks that were with us at Compaq at the time have gone on to be icons and leaders in open-source today and many of them actually are involved with with Red Hat so I'll give you a couple of names that some of whom you will know so John and Mad Dog Hall work for me at the time he was the person who wrote the first edition of Linux for dummies he did that on his own time when he was working for us he he coined he was part of the small team that coined the term open source' some other on that team that inspired me Brian Stevens and Tim Burke who wrote the first version to rent out Enterprise Linux actually they did that in Tim Burke's garage and cost Tim's still with Red Hat today two other people you've already seen him on stage today Denise Dumas and Marko bill Peter so it was those people that I was fortunate enough to work with early on who had passion for open-source and much like me they carry it forward to this day so the punchline there is they ultimately convinced us to you know embrace open-source aggressively in our strategy and one of the interesting things that we did as a company we made an equity investment in Red Hat pre-ipo and a little funny sidebar here I had to present this proposal to the compact board on investing in Red Hat which was at that time losing money hand over fist and they said well Tim how you think they're gonna make money selling free software and I said well you know I don't really know but their customers seem to love them and we need to do this and they approve the investment on the spot so you know how high do your faith and now here we are at a three billion dollar run rate of this company pretty extraordinary so from me the third and final ha was the passion of the people in the way it was contagious so so my journey my curiosity led me first to open source and then to Red Hat and it's been you know the devotion of my career for over the last thirty years and you know I think of myself as pretty literate when it comes to open source and software but I'd be the first one to admit I would have never envisioned the extent to which open source style collaboration is now being brought to bear on some of the most interesting challenges in society so the broader realization is that open source and open can really unlock the world's potential when applied in the collaborative innovative way so what about you you know you many of you particular those have been around for a while you probably have an open source story of your own for those that maybe don't or they're new to open source are new to Red Hat your open source story may be a single inspiration away it may happen here at the summit we certainly hope so it's how we build the summit to engage you you may actually find it on this stage when I bring up some of the people who are about to follow me but this is why we tell open-source stories and open source stories live so each of you hopefully has a chance to think about you know your story and how it relates over source so please take advantage of all the things that are here at the summit and and find your inspiration if you if you haven't already so next thing is you know in a spirit of our telling open source stories today we're introducing our new documentary film the science of collective discovery it's really about citizen scientists using open systems to do serious science in their backyards and environmental areas and the like we're going to preview that I'm gonna prove it preview it today and then please come see it tonight later on when we preview the whole video so let's take a look I may not have a technical scientific background but I have one thing that the scientists don't have which is I know my backyard so conventional science happens outside of public view so it's kind of in this black box so most are up in the ivory tower and what's exciting about citizen science is that it brings it out into the open we as an environmental community are engaging with the physical world every day and you need tools to do that we needed to democratize that technology we need to make it lightweight we need to make it low-cost we needed to make it open source so that we could put that technology in the hands of everyday people so they go out and make those measurements where they live and where they breathe when you first hear about an environmental organization you mostly hear about planting trees gardens things like that you don't really think about things that are really going to affect you hey we're the air be more they'd hold it in their hand making sure not to cover the intake or the exhaust I just stand here we look at the world with forensic eyes and then we build what you can't see so the approach that we're really centered on puts humans and real issues at the center of the work and I think that's the really at the core of what open source is social value that underlies all of it it really refers to sort of the rights and responsibilities that anyone on the planet has to participate in making new discoveries so really awesome and a great story and you know please come enjoy the full video so now let's get on with our open stories live speakers you're going to really love the rest of the afternoon we have three keynotes and a demo built in and I can tell you without exaggeration that when you see and hear from the young people we're about to bring forward you know it's truly inspirational and it's gonna restore totally your enthusiasm for the future because you're gonna see some of the future leaders so please enjoy our open source stories live presentation is coming and I'll be back to join you in a little bit thanks very much please welcome code newbie founder Saran yep Eric good afternoon how y'all doing today oh that was pretty weak I think you could do better than that how y'all doing today wonderful much better I'm Saran I am the founder of code newbie we have the most supportive community of programmers and people learning to code this is my very first Red Hat summits I'm super pumped super excited to be here today I'm gonna give you a talk and I'm going to share with you the key to coding progress yes and in order to do that I'm gonna have to tell you a story so two years ago I was sitting in my hotel room and I was preparing for a big talk the next morning and usually the night before I give a big talk I'm super nervous I'm anxious I'm nauseous I'm wondering why I keep doing this to myself all the speakers backstage know exactly what I'm what I'm talking about and the night before my mom knows this so she almost always calls just to check in to see how I'm doing to see how I'm feeling and she called about midnight the night before and she said how are you how are you doing are you ready and I said you know what this time I feel really good I feel confident I think I'm gonna do a great job and the reason was because two months ago I'd already given that talk in fact just a few days prior they had published the video of that talk on YouTube and I got some really really good positive feedback I got feedback from emails and DMS and Twitter and I said man I know people really like this it's gonna be great in fact that video was the most viewed video of that conference and I said to my office said you know what let's see how many people loved my talk and still the good news is that 14 people liked it and a lot more people didn't and I saw this 8 hours before I'm supposed to give that exact same talk and I said mom I gotta call you back do you like how I did that to hang up the phone as if that's how cellphones work yeah and so I looked at this and I said oh my goodness clearly there's a huge disconnect I thought they were really liked they were I thought they were into it and this showed me that something was wrong what do you do what do you do when you're about to give that same talk in 8 hours how do you begin finding out what the problem is so you can fix it I have an idea let's read the comments you got to believe you gotta have some optimism come on I said let's read the comments because I'm sure we'll find some helpful feedback some constructive criticism some insights to help me figure out how to make this talk great so that didn't happen but I did find some really colorful language and some very creative ideas of what I could do with myself now there are some kids in the audience so I will not grace you with these comments but there was this one comment that did a really great job of capturing the sentiment of what everyone else was saying I can only show you the first part because the rest is not very family-friendly but it reads like this how do you talk about coding and not fake societal issues see the thing about that talk is it wasn't just a code talk it was a code and talk is about code and something else that talked touched on code and social justice I talked a lot about how the things that we build the way we build them affect real people and their problems and their struggles and that was absolutely not okay not okay we talk about code and code only not the social justice stuff it also talked about code and diversity yeah I think we all know the diversity is really about lowering the bar it forces us to talk about people and their issues and their problems in their history and we just don't do that okay absolutely inappropriate when it comes to a Tech Talk That Talk touched on code and feelings and feelings are squishy they're messy they're icky and a lot of us feel uncomfortable with feelings feelings have no place in technology no place in code we want to talk about code and code I want you to show me that API and when you show me that new framework that new tool that's gonna solve my problems that's all I care about I want to talk about code and give me some more code with it now I host a podcast called command line heroes it's an original podcast from Red Hat super excited about it if you haven't checked it out and totally should and what I love about this show as we talk about these really important moments and open swords these inflection points moments where we see progress we move forward and what I realized looking back at those episodes is all of those episodes have a code and something let's look at a few of those the first two episodes focused on the history of operating systems as a two-part episode part 1 and part 2 and there's lots of different ways we can talk about operating systems for these two episodes we started by talking about Windows and Mac OS and how these were two very powerful very popular operating systems but a lot of a lot of developers were frustrated with them they were closed you couldn't see inside you can see what it was doing and I the developer want to know what it's doing on my machine so we kind of had a little bit of a war one such developer who was very frustrated said I'm gonna go off and do my own thing my name is Linus this thing is Linux and I'm gonna rally all these other developers all these other people from all over the old to come together and build this new thing with me that is a code and moment in that case it was code and frustration it was a team of developers a world of developers literally old world of developers who said I'm frustrated I'm fed up I want something different and I'm gonna do something about it and what's really beautiful about frustration is it the sign of passion we're frustrated because we care because we care so much we love so deeply then we want to do something better next episode is the agile revolution this one was episode three now the agile revolution is a very very important moment in open-source and technology in general and this was in response to the way that we used to create products we used to give this huge stack of specs all these docs from the higher-ups and we'd take it and we go to our little corner and we lightly code and build and then a year with Pastor here's a pass a few years have passed and we'd finally burst forth with this new product and hope that users liked it and loved it and used it and I know something else will do that today it's okay no judgment now sometimes that worked and a lot of times it didn't but whether or not it actually worked it hurt it was painful these developers not enjoy this process so what happened a dozen developers got together and literally went off into their own and created something called the agile manifesto now this was another code and moment here it's code and anger these developers were so angry that they literally left civilization went off into a mountain to write the agile manifesto and what I love about this example is these developers did not work at the same company we're not on the same team they knew each other from different conferences and such but they really came from different survive and they agreed that they were so angry they were going to literally rewrite the way we created products next as an example DevOps tear down the wall this one is Episode four now this is a bit different because we're not talking about a piece of technology or even the way we code here we're talking about the way we work together the way that we collaborate and here we have our operations folks and our developers and we've created this new kind of weird place thing called DevOps and DevOps is interesting because we've gotten to a point where we have new tools new toys so that our developers can do a lot of the stuff that only the operations folks used to be able to do that thing that took days weeks months to set up I can do it with a slider it's kind of scary I can do it with a few buttons and here we have another code and moment and here that blink is fear for two reasons the operations focus is looking over the developer folks and thinking that was my job I used to be able to do that am I still valuable do I have a place in this future do I need to retrain there's also another fear which is those developers know what they're doing do they understand the security implications they appreciate how hard it is or something to scale and how to do that properly and I'm really interested in excited to see where we go with that where we take that emotion if we look at all of season one of the podcast we see that there's always a code and whether it's a code and frustration a code and anger or a code and fear it always boils down to code and feelings feelings are powerful in almost every single episode we see that that movement forward that progress is tied back to some type of Oshin and for a lot of us this is uncomfortable feelings make us feel weird and a lot of those YouTube commenters definitely do not like this whole feeling stuff don't be like those YouTube commenters there's one thing you take away from this whole talk let it be that don't be like these YouTube commenters feelings are incredibly powerful so the next time that you're working on a project you're having a conversation about a piece of software or a new piece of technology and you start to get it worked up you get angry you get frustrated maybe you get worried you get anxious you get scared I hope you recognize that feeling as a source of energy I hope you take that energy and you help us move forward I would take that to create the next inflection point that next step in the right direction feelings are your superpowers and I hope you use your powers for good thank you so much [Applause] please welcome jewel-box chief technology officer Sara Chipps [Music] Wow there's a lot of you out here how's it going I know there's a lot of you East Coasters here as well and I'm still catching up on that sleep so I hope you guys are having a great experience also my name is Sarah I'm here from New York I have been a software developer for 17 years it's longer than some of the people on stage today I've been alive big thanks to the folks at Red Hat for letting us come and tell you a little bit about jewel box so without further ado I'm gonna do exactly that okay so today we're gonna do a few things first I'm gonna tell you why we built jewel BOTS and why we think it's a really important technology I'm gonna show you some amazing magic and then we're gonna have one of the jewel bus experts come as a special guest and talk to you more about the deep technology behind what we're building so show hands in the audience who here was under 18 years old when they started coding it's hard for me to see you guys yep look around I'd have to say at least 50% of you have your hands up all right keep your hand up if you were under 15 when you started coding I think more hands up just what is it I don't know how that mouth works but awesome okay great yeah a little of I think about half of you half of you have your hands up that's really neat I've done a bunch of informal polls on the internet about this I found that probably about two-thirds of professional coders were under 18 when they started coding I myself was 11 I was a homeschooled kid so a little weird I'm part of the generation and some of you maybe as well is the reason we became coders is because we were lonely not because we made a lot of money so I was 11 this is before the internet was a thing and we had these things called BBS's and you would call up someone else's computer in your town and you would hang out with people and chat with them and play role-playing games with them it didn't have to be your town but if it wasn't your mom would yell at you for a long distance fees and I got really excited about computers and coding because of the community that I found online okay so this is sometimes the most controversial part of this presentation I promised you that they dominate our lives in many ways even if you don't even if you don't even know a 9 to 14 year old girl even if you just see them on the street sometimes they are deciding what you and I do on a regular basis hear me out for a second here so who here knows who this guy is okay you don't have to raise your hands but I think most people know who this guy is right so this guy used to be this guy and then teenage girls were like I think this guy has some talent to him I think that he's got a future and now he's a huge celebrity today what about this guy just got his first Oscar you know just kind of starting out well this guy used to be this guy and I'm proud to tell you that I am one of the many girls that discovered him and decided this guy has a future all right raise your hand if you listen to Taylor Swift just kidding I won't make you do it but awesome that's great so Taylor Swift we listen to Taylor Swift because these girls discovered Taylor Swift it wasn't a 35 year old that was like this Taylor Swift is pretty neat no one cares what we think but even bigger than that these huge unicorns that all of us some of us work for some of us wish we invented these were discovered by young teenage girls no one is checking to see what apps were using they're finding new communities in these thin in these platforms and saying this is how I want to commune with my friends things like Instagram snapchat and musically all start with this demographic and then we get our cues from them if you don't know what musically is I promise you ask your nearest 9 to 14 year old friend if you don't do that you'll hear about it in a few years but this demographic their futures are all at risk everyone here knows how much the field of software development is growing and how important technical literacy is to the future of our youth however just 18% of computer science graduates are girls just 19% of AP computer science test takers and just 15% of Google's tech force identify as female so we decided to do something about that we were inspired by platforms like MySpace and Geocities things like Neopets and minecraft all places where kids find something they love and they're like okay to make this better all I have to do is learn how to code I can totally do that and so we wanted to do that so we talked to 200 girls we went to schools we sat down with them and we were like what makes you tick what are you excited about and what we heard from them over and over again is their friends their friends and their community are pivotal to them and this time in their lives so when we started talking to them about a smart friendship bracelet that's when they started really freaking out so we built Jewel BOTS and Jewel BOTS has an active online community where girls can work together share code that they've built and learn from each other help each other troubleshoot sometimes the way they work is when you are near your friends your bracelets light up the same color and you can use them to send secret messages to each other and you can also code them so you can say things like when all my swimming friends are together in the same room all of our bracelets should go rainbow colors which is really fun you can even build games jewel BOTS started shipping about a year and a half ago about after a lot of work and we are about to ship our 12,000 jewel bot we're in 38 city sorry 38 countries and we're just getting started okay so now it's time for the magic and I have an important question does anyone here want to be my friend pick me all right someone today Gary oh I don't have many friends that's awesome I'm so glad that we'll be friends okay it's awesome so we just need to pair our jewel BA okay okay and in order to do that we're gonna hold the magic button in the middle down for two seconds so one locomotive two locomotive great and then we got a white flashing I'm gonna do yours again I did it wrong locomotive two locomotive it's we're adults we can't do it okay it's a good that are smart alright so now we get to pick our friendship color I'm gonna pick red hat red does that work for you sure okay great so now I just picked a red hat red and my jewel bot is saying alright Tim's jewel bot do you want to be my friend and imageable about it's like I'm thinking about it I think so okay now we're ready okay great so now we're red friends when we're together our bracelets are going to be red and I will send you a secret message when it's time for you to come out and trip and introduce the next guest awesome well thank you so much thank you tailor gun so glad we could be friends and if only people would start following me on Twitter it'd be a great day awesome alright so now you can see the not so technical part of jewel box they use bluetooth to sense when your friends are nearby so they would work in about a 30 meter hundred foot range but to tell you about the actual technology part I'm going to introduce is someone much more qualified than I am so Ellie is one of our jewel box ambassadors she's an amazing YouTube channel that I would please ask you to check out and subscribe she's le G Joel BOTS on YouTube she's an amazing coder and I'm really excited to introduce you today to Ellie Galloway come on out Ellie [Applause] hello my name is le gallais I'm gonna show you how I got coding and then show you some coding in action I first started coding at a6 when my dad helped me code a game soon after I program form a code for Minecraft then my dad had shown me jo bot I keep coding because it helps people for instance for instance you could code auto crack to make it a lot smarter so it can help make people stay run faster but what about something more serious what if you could help answer 911 calls and give alerts before we start I have three main steps to share with you I often use these steps to encoding my jaw bot and continue to use some of these now step one read the instructions and in other words this means for Jabba to memorize the colors and positions a way to memorize these because it's tricky is to remember all the colors and positions you O type will be capital and remember that the positions are either short for north west south west north east and south east step to learn the basic codes when it comes to coding you need to work your way up step 3 discover feel free to discover once you mastered everything now let's get to coding let's use or let's first use combining lights so under void loop I'm going to put LED turn on single s/w and blue and before we make sure that this works we got to put LED LED okay now let's type this again LED dot turn on single now let's do SW green now we have our first sketch so let's explain what this means led LED is a function that to control the LED lights LED turn on single SW blue tells that SW light to turn blue and green flashes so quickly with the blue it creates aqua now let's do another code lets you i'm going to use a more advanced command to make a custom color using RGB let's use a soft pink using 255 105 and 180 now let's type this in the button press function so let's do LED led LED dot set light and now we can do let's do position 3 255 105 and 180 now let's explain what this means the first one stands for the position the three others stand for red green and blue our GPS can only go up to 255 but there are 256 levels but if you count the first one as zero then get 255 so let's first before we move on let's show how this works so this is it before and now let's turn it on to see how our aqua turned out now let's see how our RGB light turned out so we are looking for a soft pink so let's see how it looks think about how much the code you write can help people all around the world these are ideas are just the beginning of opening a new world in technology a fresh start is right around the corner I hope this helped you learn a little bit about coding and even made you want to try it out for yourself thank you [Applause] alright alright alright I need your help for a second guys alright one second really really fascinating we're short on time today is Ellie's 11th birthday and I think we should give her the biggest present that she's gonna get today and it's something none of us have experienced and that is thousands of people saying happy birthday Elliott wants so when I say three can I get a happy birthday Elly one two three happy birthday Elly great job that's the best part of my job okay so those are that's two of us we're just getting started this numbers out Dana would almost shipped 12,000 jewel BOTS and what I'm really excited to tell you about is that 44% of our users don't just play with their jewel bots they code them and they're coding C do you even code C I don't know that you do but we have 8 to 14 year olds coding C for their jewel box we also have hundreds of events where kids come and they learn how to code for the first time here's how you can help we're open source so check out our github get involved our communities online you can see the different features that people's are asking for we're also doing events all over the world a lot of people are hosting them at their companies if you're interested in doing so reach out to us thank you so much for coming and learning about jewel box today enjoy the rest of your summit [Music] ladies and gentlemen please welcome hacker femme au founder Femi who Bois de Kunz [Music] good afternoon red hat summit 2018 i'm femi holiday combs founder of hacker femme Oh I started coding when I was 8 when I was 9 I set up South London raspberry jam through crowdfunding to share my passion for coding with other young people who might not otherwise be exposed to tech since then I've run hundreds of coding and robot workshops across the UK and globally in 2017 I was awarded an inaugural legacy Diana award by their Royal Highnesses Prince William and Prince Harry my service and community we welcome young people who have autism or like me tract syndrome because coding linked me up to a wider community of like-minded people and I'm trying to do the same for those who might also benefit from this I also deliver workshops to corporate companies and public organizations whilst feeding back ideas and resources into my community work we like to cascade our knowledge and experience to other young coders so that they can benefit too we're learning new tech every day we're starting to use github to document and manage our coding projects we've no dread we're using the terminal and beginning to really appreciate Linux as we explore cybersecurity and blockchain it's been quite a journey from South London to the world-famous Tate Modern museum to Bangladesh to this my first trip to the States and soon to China where I hope to translate my microwave workshops into Mandarin on this journey I'm noticed it is increasingly important for young coders to have collaborative and community led initiatives and enterprise and career ready skills so my vision now is to run monthly meetups and in collaboration with business partners help a hundred young disadvantaged people to get jobs in the digital services in fact out of all the lessons I've learned from teaching young coders they all have one thing in common the power of open source and the importance of developing community and today I want to talk about three of those lessons the value of reaching out and collaborating the importance of partnering event price and the ability to self organize and persist which translated into English means having a can-do attitude getting stuff done when you reach out when you show curiosity you realize you're not alone in this diverse community no matter who you are and where you're from from coding with minecraft to meeting other young people with jams I found there are people like me doing things I like doing I get to connect with them that's where open-source comes to the fourth second the open source community is so vast then it crosses continents it's so immersed perspectives that it can take you to amazing places out of space even that's my code running on the International Space Station's Columbus module let's take a lesson and playing was an audio representation for the frequencies recorded in space my team developed Python code to measure and store frequency readings from the space station and that was down linked back to earth to my email box Thomas who's 10 developed an audio file using audacity and importing it back into Python how cool is that Trulli collaboration can take you places you never thought possible because that's how the community works when you throw a dilemma a problem a tip the open source community comes back with answers when you give the community gives back tenfold that's how open source expands but in that vast starscape how do you know what to focus on there are so many problems to solve where do I start your world enterprice enterprise software is very good at solving problems what's the big problem how about helping the next generation be ready for the future I want to do more for the young coding community so I'm developing entrepreneurial business links to get that done this is a way to promote pathways to deal with future business problems whether in FinTech healthcare or supply chains a meeting the skill shortage it is a case for emerging in it's a case for investing in emerging communities and young change enablers throwing a wider net equates to being fully inclusive with a good representation of diversity you know under the shadow of the iconic show back in London there are pockets of deprivation where young people can't even get a job in a supermarket many of them are interested in tech in some way so my goal for the next three years is to encourage young people to become an active part of the coding community with open source we have the keys to unlock the potential for future innovation and technological development with young coders we have the people who have to face these problems working on them now troubleshooting being creative connecting with each other finding a community discovering their strengths along the way for me after running workshops in the community for a number of years when I returned from introducing coding to young street kids in Bangladesh I realized I had skills and experience so I set up my business hacker Famicom my first monetized fehmi's coding boot camp at Rice London Barclays Bank it was a sellout and a few weeks later shows my second I haven't looked back since but it works the opposite way - all the money raised enable me to buy robots for my community events and I was able to cascade my end price knowledge across to other young coders - when you focus on business problems you get active enthusiastic support from enterprise and then you can take on anything the support is great and we have tons of ideas but what does it really take to execute on those ideas to get things done can-do attitudes what open source needs you've seen it all this week we're all explorers ideator z' thinkers and doers open source needs people who can make the ideas happen get out there and see them through like I did setting up Safford and raspberry jam as an inclusive space to collaborate and learn together and that that led to organizing the young coders conference this was about organizing our own two-day event for our partners in industry to show they value young people and wanted to invest in our growth it doesn't stop there oh nice now I'm setting up monthly coding meetups and looking at ways to help other young people to access job opportunities in end price and digital services the underlying ethos remains the same in all I do promoting young people with the desire to explore collaborative problem-solving when coding digital making and building enterprise you fled having the confidence to define our journey and pathways always being inclusive always encouraging innovation and creativity being doers does more than get projects done makes us a pioneering force in the community dreaming and doing is how we will make exponential leaps my generation is standing on the shoulders of giants you the open-source pioneers and the technology you will built so I'd love to hear about your experiences who brought you into the open-source community who taught you as we go to upscale our efforts we encounter difficulties have you and how did you overcome them please do come to talk to me I'll be in the open-source stories booth both today and tomorrow giving workshops or visit the Red Hat page of my website hack Famicom I really value your insights in conclusion I'd like I'd like to ask you to challenge yourself you can do this by supporting young coders find the crowdfunding campaign kick-start their ideas into reality I'm proof that it works it's so awesome to be an active part of the next exponential leap together thank you [Applause] so unbelievable huh you know he reminds me of be at that age not even close and I can tell you I've spent a lot of time with Femi and his mom grace I mean what you see is what you get I mean he's incredibly passionate committed and all that stuff he's doing that long list of things he's doing he's going to do so hopefully today you get a sense of what's coming in the next generation the amazing things that people are doing with collaboration I'd also like to thank in addition to femi I'd like to thank Sauron Sarah and Ellie for equally compelling talks around the open source stories and again as I mentioned before any one of you can have an open source story that can be up here inspiring others and that's really our goal in telling these stories and giving voice to the things that you've seen today absolutely extraordinary things are happening out there and I encourage you to take every advantage you can hear this week and as is our theme for the summit please keep exploring thank you very much [Applause] [Music]

[Music] [Music] [Music] [Music] ladies and gentlemen please welcome Red Hat senior vice president of engineering Matt Hicks [Music] welcome back I hope you're enjoying your first day of summit you know for us it is a lot of work throughout the year to get ready to get here but I love the energy walking into someone on that first opening day now this morning we kick off with Paul's keynote and you saw this morning just how evolved every aspect of open hybrid cloud has become based on an open source innovation model that opens source the power and potential of open source so we really brought me to Red Hat but at the end of the day the real value comes when were able to make customers like yourself successful with open source and as much passion and pride as we put into the open source community that requires more than just Red Hat given the complexity of your various businesses the solution set you're building that requires an entire technology ecosystem from system integrators that can provide the skills your domain expertise to software vendors that are going to provide the capabilities for your solutions even to the public cloud providers whether it's on the hosting side or consuming their services you need an entire technological ecosystem to be able to support you and your goals and that is exactly what we are gonna talk about this afternoon the technology ecosystem we work with that's ready to help you on your journey now you know this year's summit we talked about earlier it is about ideas worth exploring and we want to make sure you have all of the expertise you need to make those ideas a reality so with that let's talk about our first partner we have him today and that first partner is IBM when I talk about IBM I have a little bit of a nostalgia and that's because 16 years ago I was at IBM it was during my tenure at IBM where I deployed my first copy of Red Hat Enterprise Linux for a customer it's actually where I did my first professional Linux development as well you and that work on Linux it really was the spark that I had that showed me the potential that open source could have for enterprise customers now iBM has always been a steadfast supporter of Linux and a great Red Hat partner in fact this year we are celebrating 20 years of partnership with IBM but even after 20 years two decades I think we're working on some of the most innovative work that we ever have before so please give a warm welcome to Arvind Krishna from IBM to talk with us about what we are working on Arvind [Applause] hey my pleasure to be here thank you so two decades huh that's uh you know I think anything in this industry to going for two decades is special what would you say that that link is made right Hatton IBM so successful look I got to begin by first seeing something that I've been waiting to say for years it's a long strange trip it's been and for the San Francisco folks they'll get they'll get the connection you know what I was just thinking you said 16 it is strange because I probably met RedHat 20 years ago and so that's a little bit longer than you but that was out in Raleigh it was a much smaller company and when I think about the connection I think look IBM's had a long long investment and a long being a long fan of open source and when I think of Linux Linux really lights up our hardware and I think of the power box that you were showing this morning as well as the mainframe as well as all other hardware Linux really brings that to life and I think that's been at the root of our relationship yeah absolutely now I alluded to a little bit earlier we're working on some new stuff and this time it's a little bit higher in the software stack and we have before so what do you what would you say spearheaded that right so we think of software many people know about some people don't realize a lot of the words are called critical systems you know like reservation systems ATM systems retail banking a lot of the systems run on IBM software and when I say IBM software names such as WebSphere and MQ and db2 all sort of come to mind as being some of that software stack and really when I combine that with some of what you were talking about this morning along hybrid and I think this thing called containers you guys know a little about combining the two we think is going to make magic yeah and I certainly know containers and I think for myself seeing the rise of containers from just the introduction of the technology to customers consuming at mission-critical capacities it's been probably one of the fastest technology cycles I've ever seen before look we completely agree with that when you think back to what Paul talks about this morning on hybrid and we think about it we are made of firm commitment to containers all of our software will run on containers and all of our software runs Rell and you put those two together and this belief on hybrid and containers giving you their hybrid motion so that you can pick where you want to run all the software is really I think what has brought us together now even more than before yeah and the best part I think I've liked we haven't just done the product in downstream alignment we've been so tied in our technology approach we've been aligned all the way to the upstream communities absolutely look participating upstream participating in these projects really bringing all the innovation to bear you know when I hear all of you talk about you can't just be in a single company you got to tap into the world of innovation and everybody should contribute we firmly believe that instead of helping to do that is kind of why we're here yeah absolutely now the best part we're not just going to tell you about what we're doing together we're actually going to show you so how every once you tell the audience a little bit more about what we're doing I will go get the demo team ready in the back so you good okay so look we're doing a lot here together we're taking our software and we are begging to put it on top of Red Hat and openshift and really that's what I'm here to talk about for a few minutes and then we go to show it to you live and the demo guard should be with us so it'll hopefully go go well so when we look at extending our partnership it's really based on three fundamental principles and those principles are the following one it's a hybrid world every enterprise wants the ability to span across public private and their own premise world and we got to go there number two containers are strategic to both of us enterprise needs the agility you need a way to easily port things from place to place to place and containers is more than just wrapping something up containers give you all of the security the automation the deploy ability and we really firmly believe that and innovation is the path forward I mean you got to bring all the innovation to bear whether it's around security whether it's around all of the things we heard this morning around going across multiple infrastructures right the public or private and those are three firm beliefs that both of us have together so then explicitly what I'll be doing here number one all the IBM middleware is going to be certified on top of openshift and rel and through cloud private from IBM so that's number one all the middleware is going to run in rental containers on OpenShift on rail with all the cloud private automation and deployability in there number two we are going to make it so that this is the complete stack when you think about from hardware to hypervisor to os/2 the container platform to all of the middleware it's going to be certified up and down all the way so that you can get comfort that this is certified against all the cyber security attacks that come your way three because we do the certification that means a complete stack can be deployed wherever OpenShift runs so that way you give the complete flexibility and you no longer have to worry about that the development lifecycle is extended all the way from inception to production and the management plane then gives you all of the delivery and operation support needed to lower that cost and lastly professional services through the IBM garages as well as the Red Hat innovation labs and I think that this combination is really speaks to the power of both companies coming together and both of us working together to give all of you that flexibility and deployment capabilities across one can't can't help it one architecture chart and that's the only architecture chart I promise you so if you look at it right from the bottom this speaks to what I'm talking about you begin at the bottom and you have a choice of infrastructure the IBM cloud as well as other infrastructure as a service virtual machines as well as IBM power and IBM mainframe as is the infrastructure choices underneath so you choose what what is best suited for the workload well with the container service with the open shift platform managing all of that environment as well as giving the orchestration that kubernetes gives you up to the platform services from IBM cloud private so it contains the catalog of all middle we're both IBM's as well as open-source it contains all the deployment capability to go deploy that and it contains all the operational management so things like come back up if things go down worry about auto scaling all those features that you want come to you from there and that is why that combination is so so powerful but rather than just hear me talk about it I'm also going to now bring up a couple of people to talk about it and what all are they going to show you they're going to show you how you can deploy an application on this environment so you can think of that as either a cloud native application but you can also think about it as how do you modernize an application using micro services but you don't want to just keep your application always within its walls you also many times want to access different cloud services from this and how do you do that and I'm not going to tell you which ones they're going to come and tell you and how do you tackle the complexity of both hybrid data data that crosses both from the private world to the public world and as well as target the extra workloads that you want so that's kind of the sense of what you're going to see through through the demonstrations but with that I'm going to invite Chris and Michael to come up I'm not going to tell you which one's from IBM which runs from Red Hat hopefully you'll be able to make the right guess so with that Chris and Michael [Music] so so thank you Arvind hopefully people can guess which ones from Red Hat based on the shoes I you know it's some really exciting stuff that we just heard there what I believe that I'm I'm most excited about when I look out upon the audience and the opportunity for customers is with this announcement there are quite literally millions of applications now that can be modernized and made available on any cloud anywhere with the combination of IBM cloud private and OpenShift and I'm most thrilled to have mr. Michael elder a distinguished engineer from IBM here with us today and you know Michael would you maybe describe for the folks what we're actually going to go over today absolutely so when you think about how do I carry forward existing applications how do I build new applications as well you're creating micro services that always need a mixture of data and messaging and caching so this example application shows java-based micro services running on WebSphere Liberty each of which are then leveraging things like IBM MQ for messaging IBM db2 for data operational decision manager all of which is fully containerized and running on top of the Red Hat open chip container platform and in fact we're even gonna enhance stock trader to help it understand how you feel but okay hang on so I'm a little slow to the draw sometimes you said we're gonna have an application tell me how I feel exactly exactly you think about your enterprise apps you want to improve customer service understanding how your clients feel can't help you do that okay well this I'd like to see that in action all right let's do it okay so the first thing we'll do is we'll actually take a look at the catalog and here in the IBM cloud private catalog this is all of the content that's available to deploy now into this hybrid solution so we see workloads for IBM will see workloads for other open source packages etc each of these are packaged up as helm charts that are deploying a set of images that will be certified for Red Hat Linux and in this case we're going to go through and start with a simple example with a node out well click a few actions here we'll give it a name now do you have your console up over there I certainly do all right perfect so we'll deploy this into the new old namespace and will deploy notate okay alright anything happening of course it's come right up and so you know what what I really like about this is regardless of if I'm used to using IBM clout private or if I'm used to working with open shift yeah the experience is well with the tool of whatever I'm you know used to dealing with on a daily basis but I mean you know I got to tell you we we deployed node ourselves all the time what about and what about when was the last time you deployed MQ on open shift you never I maybe never all right let's fix that so MQ obviously is a critical component for messaging for lots of highly transactional systems here we'll deploy this as a container on the platform now I'm going to deploy this one again into new worlds I'm gonna disable persistence and for my application I'm going to need a queue manager so I'm going to have it automatically setup my queue manager as well now this will deploy a couple of things what do you see I see IBM in cube all right so there's your stateful set running MQ and of course there's a couple of other components that get stood up as needed here including things like credentials and secrets and the service etc but all of this is they're out of the box ok so impressive right but that's the what I think you know what I'm really looking at is maybe how a well is this running you know what else does this partnership bring when I look at IBM cloud private windows inches well so that's a key reason about why it's not just about IBM middleware running on open shift but also IBM cloud private because ultimately you need that common management plane when you deploy a container the next thing you have to worry about is how do I get its logs how do I manage its help how do I manage license consumption how do I have a common security plan right so cloud private is that enveloping wrapper around IBM middleware to provide those capabilities in a common way and so here we'll switch over to our dashboard this is our Griffin and Prometheus stack that's deployed also now on cloud private running on OpenShift and we're looking at a different namespace we're looking at the stock trader namespace we'll go back to this app here momentarily and we can see all the different pieces what if you switch over to the stock trader workspace on open shipped yeah I think we might be able to do that here hey there it is alright and so what you're gonna see here all the different pieces of this op right there's d b2 over here I see the portfolio Java microservice running on Webster Liberty I see my Redis cash I see MQ all of these are the components we saw in the architecture picture a minute ago ya know so this is really great I mean so maybe let's take a look at the actual application I see we have a fine stock trader app here now we mentioned understanding how I feel exactly you know well I feel good that this is you know a brand new stock trader app versus the one from ten years ago that don't feel like we used forever so the key thing is this app is actually all of those micro services in addition to things like business rules etc to help understand the loyalty program so one of the things we could do here is actually enhance it with a a AI service from Watson this is tone analyzer it helps me understand how that user actually feels and will be able to go through and submit some feedback to understand that user ok well let's see if we can take a look at that so I tried to click on youth clearly you're not very happy right now here I'll do one quick thing over here go for it we'll clear a cache for our sample lab so look you guys don't actually know as Michael and I just wrote this no js' front end backstage while Arvin was actually talking with Matt and we deployed it real-time using continuous integration and continuous delivery that we have available with openshift well the great thing is it's a live demo right so we're gonna do it all live all the time all right so you mentioned it'll tell me how I'm feeling right so if we look at so right there it looks like they're pretty angry probably because our cache hadn't been cleared before we started the demo maybe well that would make me angry but I should be happy because I mean I have a lot of money well it's it's more than I get today for sure so but you know again I don't want to remain angry so does Watson actually understand southern I know it speaks like eighty different languages but well you know I'm from South Carolina to understand South Carolina southern but I don't know about your North Carolina southern alright well let's give it a go here y'all done a real real know no profanity now this is live I've done a real real nice job on this here fancy demo all right hey all right likes me now all right cool and the key thing is just a quick note right it's showing you've got a free trade so we can integrate those business rules and then decide to I do put one trade if you're angry give me more it's all bringing it together into one platform all running on open show yeah and I can see the possibilities right of we've not only deployed services but getting that feedback from our customers to understand well how well the services are being used and are people really happy with what they have hey listen Michael this was amazing I read you joining us today I hope you guys enjoyed this demo as well so all of you know who this next company is as I look out through the crowd based on what I can actually see with the sun shining down on me right now I can see their influence everywhere you know Sports is in our everyday lives and these guys are equally innovative in that space as they are with hybrid cloud computing and they use that to help maintain and spread their message throughout the world of course I'm talking about Nike I think you'll enjoy this next video about Nike and their brand and then we're going to hear directly from my twitting about what they're doing with Red Hat technology new developments in the top story of the day the world has stopped turning on its axis top scientists are currently racing to come up with a solution everybody going this way [Music] the wrong way [Music] please welcome Nike vice president of infrastructure engineering Mike witig [Music] hi everybody over the last five years at Nike we have transformed our technology landscape to allow us to connect more directly to our consumers through our retail stores through Nike comm and our mobile apps the first step in doing that was redesigning our global network to allow us to have direct connectivity into both Asia and AWS in Europe in Asia and in the Americas having that proximity to those cloud providers allows us to make decisions about application workload placement based on our strategy instead of having design around latency concerns now some of those workloads are very elastic things like our sneakers app for example that needs to burst out during certain hours of the week there's certain moments of the year when we have our high heat product launches and for those type of workloads we write that code ourselves and we use native cloud services but being hybrid has allowed us to not have to write everything that would go into that app but rather just the parts that are in that application consumer facing experience and there are other back-end systems certain core functionalities like order management warehouse management finance ERP and those are workloads that are third-party applications that we host on relevent over the last 18 months we have started to deploy certain elements of those core applications into both Azure and AWS hosted on rel and at first we were pretty cautious that we started with development environments and what we realized after those first successful deployments is that are the impact of those cloud migrations on our operating model was very small and that's because the tools that we use for monitoring for security for performance tuning didn't change even though we moved those core applications into Azure in AWS because of rel under the covers and getting to the point where we have that flexibility is a real enabler as an infrastructure team that allows us to just be in the yes business and really doesn't matter where we want to deploy different workload if either cloud provider or on-prem anywhere on the planet it allows us to move much more quickly and stay much more directed to our consumers and so having rel at the core of our strategy is a huge enabler for that flexibility and allowing us to operate in this hybrid model thanks very much [Applause] what a great example it's really nice to hear an IQ story of using sort of relish that foundation to enable their hybrid clout enable their infrastructure and there's a lot that's the story we spent over ten years making that possible for rel to be that foundation and we've learned a lot in that but let's circle back for a minute to the software vendors and what kicked off the day today with IBM IBM s one of the largest software portfolios on the planet but we learned through our journey on rel that you need thousands of vendors to be able to sport you across all of your different industries solve any challenge that you might have and you need those vendors aligned with your technology direction this is doubly important when the technology direction is changing like with containers we saw that two years ago bread had introduced our container certification program now this program was focused on allowing you to identify vendors that had those shared technology goals but identification by itself wasn't enough in this fast-paced world so last year we introduced trusted content we introduced our container health index publicly grading red hats images that form the foundation for those vendor images and that was great because those of you that are familiar with containers know that you're taking software from vendors you're combining that with software from companies like Red Hat and you are putting those into a single container and for you to run those in a mission-critical capacity you have to know that we can both stand by and support those deployments but even trusted content wasn't enough so this year I'm excited that we are extending once again to introduce trusted operations now last week we announced that cube con kubernetes conference the kubernetes operator SDK the goal of the kubernetes operators is to allow any software provider on kubernetes to encode how that software should run this is a critical part of a container ecosystem not just being able to find the vendors that you want to work with not just knowing that you can trust what's inside the container but knowing that you can efficiently run that software now the exciting part is because this is so closely aligned with the upstream technology that today we already have four partners that have functioning operators specifically Couchbase dynaTrace crunchy and black dot so right out of the gate you have security monitoring data store options available to you these partners are really leading the charge in terms of what it means to run their software on OpenShift but behind these four we have many more in fact this morning we announced over 60 partners that are committed to building operators they're taking their domain expertise and the software that they wrote that they know and extending that into how you are going to run that on containers in environments like OpenShift this really brings the power of being able to find the vendors being able to trust what's inside and know that you can run their software as efficiently as anyone else on the planet but instead of just telling you about this we actually want to show you this in action so why don't we bring back up the demo team to give you a little tour of what's possible with it guys thanks Matt so Matt talked about the concept of operators and when when I think about operators and what they do it's taking OpenShift based services and making them even smarter giving you insight into how they do things for example have we had an operator for the nodejs service that I was running earlier it would have detected the problem and fixed itself but when we look at it what really operators do when I look at it from an ecosystem perspective is for ISVs it's going to be a catalyst that's going to allow them to make their services as manageable and it's flexible and as you know maintainable as any public cloud service no matter where OpenShift is running and to help demonstrate this I've got my buddy Rob here Rob are we ready on the demo front we're ready awesome now I notice this screen looks really familiar to me but you know I think we want to give folks here a dev preview of a couple of things well we want to show you is the first substantial integration of the core OS tectonic technology with OpenShift and then the other thing is we are going to dive in a little bit more into operators and their usefulness so Rob yeah so what we're looking at here is the service catalog that you know and love and openshift and we've got a few new things in here we've actually integrated operators into the Service Catalog and I'm going to take this filter and give you a look at some of them that we have today so you can see we've got a list of operators exposed and this is the same way that your developers are already used to integrating with products they're right in your catalog and so now these are actually smarter services but how can we maybe look at that I mentioned that there's maybe a new view I'm used to seeing this as a developer but I hear we've got some really cool stuff if I'm the administrator of the console yeah so we've got a whole new side of the console for cluster administrators to get a look at under the infrastructure versus this dev focused view that we're looking at today today so let's go take a look at it so the first thing you see here is we've got a really rich set of monitoring and health status so we can see that we've got some alerts firing our control plane is up and we can even do capacity planning anything that you need to do to maintenance your cluster okay so it's it's not only for the the services in the cluster and doing things that you know I may be normally as a human operator would have to do but this this console view also gives me insight into the infrastructure itself right like maybe the nodes and maybe handling the security context is that true yes so these are new capabilities that we're bringing to open shift is the ability to do node management things like drain and unscheduled nodes to do day-to-day maintenance and then as well as having security constraints and things like role bindings for example and the exciting thing about this is this is a view that you've never been able to see before it's cross-cutting across namespaces so here we've got a number of admin bindings and we can see that they're connected to a number of namespaces and these would represent our engineering teams all the groups that are using the cluster and we've never had this view before this is a perfect way to audit your security you know it actually is is pretty exciting I mean I've been fortunate enough to be on the up and shift team since day one and I know that operations view is is something that we've you know strived for and so it's really exciting to see that we can offer that now but you know really this was a we want to get into what operators do and what they can do for us and so maybe you show us what the operator console looks like yeah so let's jump on over and see all the operators that we have installed on the cluster you can see that these mirror what we saw on the Service Catalog earlier now what we care about though is this Couchbase operator and we're gonna jump into the demo namespace as I said you can share a number of different teams on a cluster so it's gonna jump into this namespace okay cool so now what we want to show you guys when we think about operators you know we're gonna have a scenario here where there's going to be multiple replicas of a Couchbase service running in the cluster and then we're going to have a stateful set and what's interesting is those two things are not enough if I'm really trying to run this as a true service where it's highly available in persistent there's things that you know as a DBA that I'm normally going to have to do if there's some sort of node failure and so what we want to demonstrate to you is where operators combined with the power that was already within OpenShift are now coming together to keep this you know particular database service highly available and something that we can continue using so Rob what have you got there yeah so as you can see we've got our couch based demo cluster running here and we can see that it's up and running we've got three members we've got an off secret this is what's controlling access to a UI that we're gonna look at in a second but what really shows the power of the operator is looking at this view of the resources that it's managing you can see that we've got a service that's doing load balancing into the cluster and then like you said we've got our pods that are actually running the software itself okay so that's cool so maybe for everyone's benefit so we can show that this is happening live could we bring up the the Couchbase console please and keep up the openshift console both sides so what we see there we go so what we see on the on the right hand side is obviously the same console Rob was working in on the left-hand side as you can see by the the actual names of the pods that are there the the couch based services that are available and so Rob maybe um let's let's kill something that's always fun to do on stage yeah this is the power of the operator it's going to recover it so let's browse on over here and kill node number two so we're gonna forcefully kill this and kick off the recovery and I see right away that because of the integration that we have with operators the Couchbase console immediately picked up that something has changed in the environment now why is that important normally a human being would have to get that alert right and so with operators now we've taken that capability and we've realized that there has been a new event within the environment this is not something that you know kubernetes or open shipped by itself would be able to understand now I'm presuming we're gonna end up doing something else it's not just seeing that it failed and sure enough there we go remember when you have a stateful application rebalancing that data and making it available is just as important as ensuring that the disk is attached so I mean Rob thank you so much for you know driving this for us today and being here I mean you know not only Couchbase but as was mentioned by matt we also have you know crunchy dynaTrace and black duck I would encourage you all to go visit their booths out on the floor today and understand what they have available which are all you know here with a dev preview and then talk to the many other partners that we have that are also looking at operators so again rub thank you for joining us today Matt come on out okay this is gonna make for an exciting year of just what it means to consume container base content I think containers change how customers can get that I believe operators are gonna change how much they can trust running that content let's circle back to one more partner this next partner we have has changed the landscape of computing specifically with their work on hardware design work on core Linux itself you know in fact I think they've become so ubiquitous with computing that we often overlook the technological marvels that they've been able to overcome now for myself I studied computer engineering so in the late 90s I had the chance to study processor design I actually got to build one of my own processors now in my case it was the most trivial processor that you could imagine it was an 8-bit subtractor which means it can subtract two numbers 256 or smaller but in that process I learned the sheer complexity that goes into processor design things like wire placements that are so close that electrons can cut through the insulation in short and then doing those wire placements across three dimensions to multiple layers jamming in as many logic components as you possibly can and again in my case this was to make a processor that could subtract two numbers but once I was done with this the second part of the course was studying the Pentium processor now remember that moment forever because looking at what the Pentium processor was able to accomplish it was like looking at alien technology and the incredible thing is that Intel our next partner has been able to keep up that alien like pace of innovation twenty years later so we're excited have Doug Fisher here let's hear a little bit more from Intel for business wide open skies an open mind no matter the context the idea of being open almost only suggests the potential of infinite possibilities and that's exactly the power of open source whether it's expanding what's possible in business the science and technology or for the greater good which is why-- open source requires the involvement of a truly diverse community of contributors to scale and succeed creating infinite possibilities for technology and more importantly what we do with it [Music] you know what Intel one of our core values is risk-taking and I'm gonna go just a bit off script for a second and say I was just backstage and I saw a gentleman that looked a lot like Scott Guthrie who runs all of Microsoft's cloud enterprise efforts wearing a red shirt talking to Cormier I'm just saying I don't know maybe I need some more sleep but that's what I saw as we approach Intel's 50th anniversary these words spoken by our co-founder Robert Noyce are as relevant today as they were decades ago don't be encumbered by history this is about breaking boundaries in technology and then go off and do something wonderful is about innovation and driving innovation in our industry and Intel we're constantly looking to break boundaries to advance our technology in the cloud in enterprise space that is no different so I'm going to talk a bit about some of the boundaries we've been breaking and innovations we've been driving at Intel starting with our Intel Xeon platform Orion Xeon scalable platform we launched several months ago which was the biggest and mark the most advanced movement in this technology in over a decade we were able to drive critical performance capabilities unmatched agility and added necessary and sufficient security to that platform I couldn't be happier with the work we do with Red Hat and ensuring that those hero features that we drive into our platform they fully expose to all of you to drive that innovation to go off and do something wonderful well there's taking advantage of the performance features or agility features like our advanced vector extensions or avx-512 or Intel quick exist those technologies are fully embraced by Red Hat Enterprise Linux or whether it's security technologies like txt or trusted execution technology are fully incorporated and we look forward to working with Red Hat on their next release to ensure that our advancements continue to be exposed and their platform and all these workloads that are driving the need for us to break boundaries and our technology are driving more and more need for flexibility and computing and that's why we're excited about Intel's family of FPGAs to help deliver that additional flexibility for you to build those capabilities in your environment we have a broad set of FPGA capabilities from our power fish at Mac's product line all the way to our performance product line on the 6/10 strat exten we have a broad set of bets FPGAs what i've been talking to customers what's really exciting is to see the combination of using our Intel Xeon scalable platform in combination with FPGAs in addition to the acceleration development capabilities we've given to software developers combining all that together to deliver better and better solutions whether it's helping to accelerate data compression well there's pattern recognition or data encryption and decryption one of the things I saw in a data center recently was taking our Intel Xeon scalable platform utilizing the capabilities of FPGA to do data encryption between servers behind the firewall all the while using the FPGA to do that they preserve those precious CPU cycles to ensure they delivered the SLA to the customer yet provided more security for their data in the data center one of the edges in cyber security is innovation and route of trust starts at the hardware we recently renewed our commitment to security with our security first pledge has really three elements to our security first pledge first is customer first urgency we have now completed the release of the micro code updates for protection on our Intel platforms nine plus years since launch to protect against things like the side channel exploits transparent and timely communication we are going to communicate timely and openly on our Intel comm website whether it's about our patches performance or other relevant information and then ongoing security assurance we drive security into every one of our products we redesigned a portion of our processor to add these partition capability which is adding additional walls between applications and user level privileges to further secure that environment from bad actors I want to pause for a second and think everyone in this room involved in helping us work through our security first pledge this isn't something we do on our own it takes everyone in this room to help us do that the partnership and collaboration was next to none it's the most amazing thing I've seen since I've been in this industry so thank you we don't stop there we continue to advance our security capabilities cross-platform solutions we recently had a conference discussion at RSA where we talked about Intel Security Essentials where we deliver a framework of capabilities and the end that are in our silicon available for those to innovate our customers and the security ecosystem to innovate on a platform in a consistent way delivering that assurance that those capabilities will be on that platform we also talked about things like our security threat technology threat detection technology is something that we believe in and we launched that at RSA incorporates several elements one is ability to utilize our internal graphics to accelerate some of the memory scanning capabilities we call this an accelerated memory scanning it allows you to use the integrated graphics to scan memory again preserving those precious cycles on the core processor Microsoft adopted this and are now incorporated into their defender product and are shipping it today we also launched our threat SDK which allows partners like Cisco to utilize telemetry information to further secure their environments for cloud workloads so we'll continue to drive differential experiences into our platform for our ecosystem to innovate and deliver more and more capabilities one of the key aspects you have to protect is data by 2020 the projection is 44 zettabytes of data will be available 44 zettabytes of data by 2025 they project that will grow to a hundred and eighty s data bytes of data massive amount of data and what all you want to do is you want to drive value from that data drive and value from that data is absolutely critical and to do that you need to have that data closer and closer to your computation this is why we've been working Intel to break the boundaries in memory technology with our investment in 3d NAND we're reducing costs and driving up density in that form factor to ensure we get warm data closer to the computing we're also innovating on form factors we have here what we call our ruler form factor this ruler form factor is designed to drive as much dense as you can in a 1u rack we're going to continue to advance the capabilities to drive one petabyte of data at low power consumption into this ruler form factor SSD form factor so our innovation continues the biggest breakthrough and memory technology in the last 25 years in memory media technology was done by Intel we call this our 3d crosspoint technology and our 3d crosspoint technology is now going to be driven into SSDs as well as in a persistent memory form factor to be on the memory bus giving you the speed of memory characteristics of memory as well as the characteristics of storage given a new tier of memory for developers to take full advantage of and as you can see Red Hat is fully committed to integrating this capability into their platform to take full advantage of that new capability so I want to thank Paul and team for engaging with us to make sure that that's available for all of you to innovate on and so we're breaking boundaries and technology across a broad set of elements that we deliver that's what we're about we're going to continue to do that not be encumbered by the past your role is to go off and doing something wonderful with that technology all ecosystems are embracing this and driving it including open source technology open source is a hub of innovation it's been that way for many many years that innovation that's being driven an open source is starting to transform many many businesses it's driving business transformation we're seeing this coming to light in the transformation of 5g driving 5g into the networked environment is a transformational moment an open source is playing a pivotal role in that with OpenStack own out and opie NFV and other open source projects were contributing to and participating in are helping drive that transformation in 5g as you do software-defined networks on our barrier breaking technology we're also seeing this transformation rapidly occurring in the cloud enterprise cloud enterprise are growing rapidly and innovation continues our work with virtualization and KVM continues to be aggressive to adopt technologies to advance and deliver more capabilities in virtualization as we look at this with Red Hat we're now working on Cube vert to help move virtualized workloads onto these platforms so that we can now have them managed at an open platform environment and Cube vert provides that so between Intel and Red Hat and the community we're investing resources to make certain that comes to product as containers a critical feature in Linux becomes more and more prevalent across the industry the growth of container elements continues at a rapid rapid pace one of the things that we wanted to bring to that is the ability to provide isolation without impairing the flexibility the speed and the footprint of a container with our clear container efforts along with hyper run v we were able to combine that and create we call cotta containers we launched this at the end of last year cotta containers is designed to have that container element available and adding elements like isolation both of these events need to have an orchestration and management capability Red Hat's OpenShift provides that capability for these workloads whether containerized or cube vert capabilities with virtual environments Red Hat openshift is designed to take that commercial capability to market and we've been working with Red Hat for several years now to develop what we call our Intel select solution Intel select solutions our Intel technology optimized for downstream workloads as we see a growth in a workload will work with a partner to optimize a solution on Intel technology to deliver the best solution that could be deployed quickly our effort here is to accelerate the adoption of these type of workloads in the market working with Red Hat's so now we're going to be deploying an Intel select solution design and optimized around Red Hat OpenShift we expect the industry's start deploying this capability very rapidly I'm excited to announce today that Lenovo is committed to be the first platform company to deliver this solution to market the Intel select solution to market will be delivered by Lenovo now I talked about what we're doing in industry and how we're transforming businesses our technology is also utilized for greater good there's no better example of this than the worked by dr. Stephen Hawking it was a sad day on March 14th of this year when dr. Stephen Hawking passed away but not before Intel had a 20-year relationship with dr. Hawking driving breakthrough capabilities innovating with him driving those robust capabilities to the rest of the world one of our Intel engineers an Intel fellow which is the highest technical achievement you can reach at Intel got to spend 10 years with dr. Hawking looking at innovative things they could do together with our technology and his breakthrough innovative thinking so I thought it'd be great to bring up our Intel fellow Lema notch Minh to talk about her work with dr. Hawking and what she learned in that experience come on up Elina [Music] great to see you Thanks something going on about the breakthrough breaking boundaries and Intel technology talk about how you use that in your work with dr. Hawking absolutely so the most important part was to really make that technology contextually aware because for people with disability every single interaction takes a long time so whether it was adapting for example the language model of his work predictor to understand whether he's gonna talk to people or whether he's writing a book on black holes or to even understand what specific application he might be using and then making sure that we're surfacing only enough actions that were relevant to reduce that amount of interaction so the tricky part is really to make all of that contextual awareness happen without totally confusing the user because it's constantly changing underneath it so how is that your work involving any open source so you know the problem with assistive technology in general is that it needs to be tailored to the specific disability which really makes it very hard and very expensive because it can't utilize the economies of scale so basically with the system that we built what we wanted to do is really enable unleashing innovation in the world right so you could take that framework you could tailor to a specific sensor for example a brain computer interface or something like that where you could actually then support a different set of users so that makes open-source a perfect fit because you could actually build and tailor and we you spoke with dr. Hawking what was this view of open source is it relevant to him so yeah so Stephen was adamant from the beginning that he wanted a system to benefit the world and not just himself so he spent a lot of time with us to actually build this system and he was adamant from day one that he would only engage with us if we were commit to actually open sourcing the technology that's fantastic and you had the privilege of working with them in 10 years I know you have some amazing stories to share so thank you so much for being here thank you so much in order for us to scale and that's what we're about at Intel is really scaling our capabilities it takes this community it takes this community of diverse capabilities it takes two births thought diverse thought of dr. Hawking couldn't be more relevant but we also are proud at Intel about leading efforts of diverse thought like women and Linux women in big data other areas like that where Intel feels that that diversity of thinking and engagement is critical for our success so as we look at Intel not to be encumbered by the past but break boundaries to deliver the technology that you all will go off and do something wonderful with we're going to remain committed to that and I look forward to continue working with you thank you and have a great conference [Applause] thank God now we have one more customer story for you today when you think about customers challenges in the technology landscape it is hard to ignore the public cloud these days public cloud is introducing capabilities that are driving the fastest rate of innovation that we've ever seen in our industry and our next customer they actually had that same challenge they wanted to tap into that innovation but they were also making bets for the long term they wanted flexibility and providers and they had to integrate to the systems that they already have and they have done a phenomenal job in executing to this so please give a warm welcome to Kerry Pierce from Cathay Pacific Kerry come on thanks very much Matt hi everyone thank you for giving me the opportunity to share a little bit about our our cloud journey let me start by telling you a little bit about Cathay Pacific we're an international airline based in Hong Kong and we serve a passenger and a cargo network to over 200 destinations in 52 countries and territories in the last seventy years and years seventy years we've made substantial investments to develop Hong Kong as one of the world's leading transportation hubs we invest in what matters most to our customers to you focusing on our exemplary service and our great product and it's both on the ground and in the air we're also investing and expanding our network beyond our multiple frequencies to the financial districts such as Tokyo New York and London and we're connecting Asia and Hong Kong with key tech hubs like San Francisco where we have multiple flights daily we're also connecting Asia in Hong Kong to places like Tel Aviv and our upcoming destination of Dublin in fact 2018 is actually going to be one of our biggest years in terms of network expansion and capacity growth and we will be launching in September our longest flight from Hong Kong direct to Washington DC and that'll be using a state-of-the-art Airbus a350 1000 aircraft so that's a little bit about Cathay Pacific let me tell you about our journey through the cloud I'm not going to go into technical details there's far smarter people out in the audience who will be able to do that for you just focus a little bit about what we were trying to achieve and the people side of it that helped us get there we had a couple of years ago no doubt the same issues that many of you do I don't think we're unique we had a traditional on-premise non-standardized fragile infrastructure it didn't meet our infrastructure needs and it didn't meet our development needs it was costly to maintain it was costly to grow and it really inhibited innovation most importantly it slowed the delivery of value to our customers at the same time you had the hype of cloud over the last few years cloud this cloud that clouds going to fix the world we were really keen on making sure we didn't get wound up and that so we focused on what we needed we started bottom up with a strategy we knew we wanted to be clouded Gnostic we wanted to have active active on-premise data centers with a single network and fabric and we wanted public clouds that were trusted and acted as an extension of that environment not independently we wanted to avoid single points of failure and we wanted to reduce inter dependencies by having loosely coupled designs and finally we wanted to be scalable we wanted to be able to cater for sudden surges of demand in a nutshell we kind of just wanted to make everything easier and a management level we wanted to be a broker of services so not one size fits all because that doesn't work but also not one of everything we want to standardize but a pragmatic range of services that met our development and support needs and worked in harmony with our public cloud not against it so we started on a journey with red hat we implemented Red Hat cloud forms and ansible to manage our hybrid cloud we also met implemented Red Hat satellite to maintain a manager environment we built a Red Hat OpenStack on crimson vironment to give us an alternative and at the same time we migrated a number of customer applications to a production public cloud open shift environment but it wasn't all Red Hat you love heard today that the Red Hat fits within an overall ecosystem we looked at a number of third-party tools and services and looked at developing those into our core solution I think at last count we had tried and tested somewhere past eight different tools and at the moment we still have around 62 in our environment that help us through that journey but let me put the technical solution aside a little bit because it doesn't matter how good your technical solution is if you don't have the culture and the people to get it right as a group we needed to be aligned for delivery and we focused on three core behaviors we focused on accountability agility and collaboration now I was really lucky we've got a pretty fantastic team for whom that was actually pretty easy but but again don't underestimate the importance of getting the culture and the people right because all the technology in the world doesn't matter if you don't have that right I asked the team what did we do differently because in our situation we didn't go out and hire a bunch of new people we didn't go out and hire a bunch of consultants we had the staff that had been with us for 10 20 and in some cases 30 years so what did we do differently it was really simple we just empowered and supported our staff we knew they were the smart ones they were the ones that were dealing with a legacy environment and they had the passion to make the change so as a team we encouraged suggestions and contributions from our overall IT community from the bottom up we started small we proved the case we told the story and then we got by him and only did did we implement wider the benefits the benefit through our staff were a huge increase in staff satisfaction reduction and application and platform outage support incidents risk free and failsafe application releases work-life balance no more midnight deployments and our application and infrastructure people could really focus on delivering customer value not on firefighting and for our end customers the people that travel with us it was really really simple we could provide a stable service that allowed for faster releases which meant we could deliver value faster in terms of stats we migrated 16 production b2c applications to a public cloud OpenShift environment in 12 months we decreased provisioning time from weeks or occasionally months we were waiting for hardware two minutes and we had a hundred percent availability of our key customer facing systems but most importantly it was about people we'd built a culture a culture of innovation that was built on a foundation of collaboration agility and accountability and that permeated throughout the IT organization not those just those people that were involved in the project everyone with an IT could see what good looked like and to see what it worked what it looked like in terms of working together and that was a key foundation for us the future for us you will have heard today everything's changing so we're going to continue to develop our open hybrid cloud onboard more public cloud service providers continue to build more modern applications and leverage the emerging technology integrate and automate everything we possibly can and leverage more open source products with the great support from the open source community so there you have it that's our journey I think we succeeded by not being over awed and by starting with the basics the technology was key obviously it's a cool component but most importantly it was a way we approached our transition we had a clear strategy that was actually developed bottom-up by the people that were involved day to day and we empowered those people to deliver and that provided benefits to both our staff and to our customers so thank you for giving the opportunity to share and I hope you enjoy the rest of the summer [Applause] I got one thanks what a great story would a great customer story to close on and we have one more partner to come up and this is a partner that all of you know that's Microsoft Microsoft has gone through an amazing transformation they've we've built an incredibly meaningful partnership with them all the way from our open source collaboration to what we do in the business side we started with support for Red Hat Enterprise Linux on hyper-v and that was truly just the beginning today we're announcing one of the most exciting joint product offerings on the market today let's please give a warm welcome to Paul correr and Scott Scott Guthrie to tell us about it guys come on out you know Scot welcome welcome to the Red Hat summer thanks for coming really appreciate it great to be here you know many surprises a lot of people when we you know published a list of speakers and then you rock you were on it and you and I are on stage here it's really really important and exciting to us exciting new partnership we've worked together a long time from the hypervisor up to common support and now around hybrid hybrid cloud maybe from your perspective a little bit of of what led us here well you know I think the thing that's really led us here is customers and you know Microsoft we've been on kind of a transformation journey the last several years where you know we really try to put customers at the center of everything that we do and you know as part of that you quickly learned from customers in terms of I'm including everyone here just you know you've got a hybrid of state you know both in terms of what you run on premises where it has a lot of Red Hat software a lot of Microsoft software and then really is they take the journey to the cloud looking at a hybrid of state in terms of how do you run that now between on-premises and a public cloud provider and so I think the thing that both of us are recognized and certainly you know our focus here at Microsoft has been you know how do we really meet customers with where they're at and where they want to go and make them successful in that journey and you know it's been fantastic working with Paul and the Red Hat team over the last two years in particular we spend a lot of time together and you know really excited about the journey ahead so um maybe you can share a bit more about the announcement where we're about to make today yeah so it's it's it's a really exciting announcement it's and really kind of I think first of its kind in that we're delivering a Red Hat openshift on Azure service that we're jointly developing and jointly managing together so this is different than sort of traditional offering where it's just running inside VMs and it's sort of two vendors working this is really a jointly managed service that we're providing with full enterprise support with a full SLA where the you know single throat to choke if you will although it's collectively both are choke the throats in terms of making sure that it works well and it's really uniquely designed around this hybrid world and in that it supports will support both Windows and Linux containers and it role you know it's the same open ship that runs both in the public cloud on Azure and on-premises and you know it's something that we hear a lot from customers I know there's a lot of people here that have asked both of us for this and super excited to be able to talk about it today and we're gonna show off the first demo of it just a bit okay well I'm gonna ask you to elaborate a bit more about this how this fits into the bigger Microsoft picture and I'll get out of your way and so thanks again thank you for coming here we go thanks Paul so I thought I'd spend just a few minutes talking about wouldn't you know that some of the work that we're doing with Microsoft Asher and the overall Microsoft cloud I didn't go deeper in terms of the new offering that we're announcing today together with red hat and show demo of it actually in action in a few minutes you know the high level in terms of you know some of the work that we've been doing at Microsoft the last couple years you know it's really been around this this journey to the cloud that we see every organization going on today and specifically the Microsoft Azure we've been providing really a cloud platform that delivers the infrastructure the application and kind of the core computing needs that organizations have as they want to be able to take advantage of what the cloud has to offer and in terms of our focus with Azure you know we've really focused we deliver lots and lots of different services and features but we focused really in particular on kind of four key themes and we see these four key themes aligning very well with the journey Red Hat it's been on and it's partly why you know we think the partnership between the two companies makes so much sense and you know for us the thing that we've been really focused on has been with a or in terms of how do we deliver a really productive cloud meaning how do we enable you to take advantage of cutting-edge technology and how do we kind of accelerate the successful adoption of it whether it's around the integration of managed services that we provide both in terms of the application space in the data space the analytic and AI space but also in terms of just the end-to-end management and development tools and how all those services work together so that teams can basically adopt them and be super successful yeah we deeply believe in hybrid and believe that the world is going to be a multi cloud and a multi distributed world and how do we enable organizations to be able to take the existing investments that they already have and be able to easily integrate them in a public cloud and with a public cloud environment and get immediate ROI on day one without how to rip and replace tons of solutions you know we're moving very aggressively in the AI space and are looking to provide a rich set of AI services both finished AI models things like speech detection vision detection object motion etc that any developer even at non data scientists can integrate to make application smarter and then we provide a rich set of AI tooling that enables organizations to build custom models and be able to integrate them also as part of their applications and with their data and then we invest very very heavily on trust Trust is sort of at the core of a sure and we now have more compliant certifications than any other cloud provider we run in more countries than any other cloud provider and we really focus around unique promises around data residency data sovereignty and privacy that are really differentiated across the industry and terms of where Iser runs today we're in 50 regions around the world so our region for us is typically a cluster of multiple data centers that are grouped together and you can see we're pretty much on every continent with the exception of Antarctica today and the beauty is you're going to be able to take the Red Hat open shift service and run it on ashore in each of these different locations and really have a truly global footprint as you look to build and deploy solutions and you know we've seen kind of this focus on productivity hybrid intelligence and Trust really resonate in the market and about 90 percent of Fortune 500 companies today are deployed on Azure and you heard Nike talked a little bit earlier this afternoon about some of their journeys as they've moved to a dot public cloud this is a small logo of just a couple of the companies that are on ashore today and what I do is actually even before we dive into the open ship demo is actually just show a quick video you know one of the companies thing there are actually several people from that organization here today Deutsche Bank who have been working with both Microsoft and Red Hat for many years Microsoft on the other side Red Hat both on the rel side and then on the OpenShift side and it's just one of these customers that have helped bring the two companies together to deliver this managed openshift service on Azure and so I'm just going to play a quick video of some of the folks that Deutsche Bank talking about their experiences and what they're trying to get out of it so we could roll the video that'd be great technology is at the absolute heart of Deutsche Bank we've recognized that the cost of running our infrastructure was particularly high there was a enormous amount of under utilization we needed a platform which was open to polyglot architecture supporting any kind of application workload across the various business lines of the third we analyzed over 60 different vendor products and we ended up with Red Hat openshift I'm super excited Microsoft or supporting Linux so strongly to adopting a hybrid approach we chose as here because Microsoft was the ideal partner to work with on constructs around security compliance business continuity as you as in all the places geographically that we need to be we have applications now able to go from a proof of concept to production in three weeks that is already breaking records openshift gives us given entities and containers allows us to apply the same sets of processes automation across a wide range of our application landscape on any given day we run between seven and twelve thousand containers across three regions we start see huge levels of cost reduction because of the level of multi-tenancy that we can achieve through containers open ship gives us an abstraction layer which is allows us to move our applications between providers without having to reconfigure or recode those applications what's really exciting for me about this journey is the way they're both Red Hat and Microsoft have embraced not just what we're doing but what each other are doing and have worked together to build open shift as a first-class citizen with Microsoft [Applause] in terms of what we're announcing today is a new fully managed OpenShift service on Azure and it's really the first fully managed service provided end-to-end across any of the cloud providers and it's jointly engineer operated and supported by both Microsoft and Red Hat and that means again sort of one service one SLA and both companies standing for a link firmly behind it really again focusing around how do we make customers successful and as part of that really providing the enterprise-grade not just isolates but also support and integration testing so you can also take advantage of all your rel and linux-based containers and all of your Windows server based containers and how can you run them in a joint way with a common management stack taking the advantage of one service and get maximum density get maximum code reuse and be able to take advantage of a containerized world in a better way than ever before and make this customer focus is very much at the center of what both companies are really centered around and so what if I do be fun is rather than just talk about openshift as actually kind of show off a little bit of a journey in terms of what this move to take advantage of it looks like and so I'd like to invite Brendan and Chris onstage who are actually going to show off a live demo of openshift on Azure in action and really walk through how to provision the service and basically how to start taking advantage of it using the full open ship ecosystem so please welcome Brendan and Chris we're going to join us on stage for a demo thanks God thanks man it's been a good afternoon so you know what we want to get into right now first I'd like to think Brandon burns for joining us from Microsoft build it's a busy week for you I'm sure your own stage there a few times as well you know what I like most about what we just announced is not only the business and technical aspects but it's that operational aspect the uniqueness the expertise that RedHat has for running OpenShift combined with the expertise that Microsoft has within Azure and customers are going to get this joint offering if you will with you know Red Hat OpenShift on Microsoft Azure and so you know kind of with that again Brendan I really appreciate you being here maybe talk to the folks about what we're going to show yeah so we're going to take a look at what it looks like to deploy OpenShift on to Azure via the new OpenShift service and the real selling point the really great part of this is the the deep integration with a cloud native app API so the same tooling that you would use to create virtual machines to create disks trade databases is now the tooling that you're going to use to create an open chip cluster so to show you this first we're going to create a resource group here so we're going to create that resource group in East us using the AZ tool that's the the azure command-line tooling a resource group is sort of a folder on Azure that holds all of your stuff so that's gonna come back into the second I've created my resource group in East us and now we're gonna use that exact same tool calling into into Azure api's to provision an open shift cluster so here we go we have AZ open shift that's our new command line tool putting it into that resource group I'm gonna get into East us alright so it's gonna take a little bit of time to deploy that open shift cluster it's doing a bunch of work behind the scenes provisioning all kinds of resources as well as credentials to access a bunch of different as your API so are we actually able to see this to you yeah so we can cut over to in just a second we can cut over to that resource group in a reload so Brendan while relating the beauty of what you know the teams have been doing together already is the fact that now open shift is a first-class citizen as it were yeah absolutely within the agent so I presume not only can I do a deployment but I can do things like scale and check my credentials and pretty much everything that I could do with any other service with that that's exactly right so we can anything that you you were used to doing via the my computer has locked up there we go the demo gods are totally with me oh there we go oh no I hit reload yeah that was that was just evil timing on the house this is another use for operators as we talked about earlier today that's right my dashboard should be coming up do I do I dare click on something that's awesome that was totally it was there there we go good job so what's really interesting about this I've also heard that it deploys you know in as little as five to six minutes which is really good for customers they want to get up and running with it but all right there we go there it is who managed to make it see that shows that it's real right you see the sweat coming off of me there but there you can see the I feel it you can see the various resources that are being created in order to create this openshift cluster virtual machines disks all of the pieces provision for you automatically via that one single command line call now of course it takes a few minutes to to create the cluster so in order to show the other side of that integration the integration between openshift and Azure I'm going to cut over to an open shipped cluster that I already have created alright so here you can see my open shift cluster that's running on Microsoft Azure I'm gonna actually log in over here and the first sign you're gonna see of the integration is it's actually using my credentials my login and going through Active Directory and any corporate policies that I may have around smart cards two-factor off anything like that authenticate myself to that open chef cluster so I'll accept that it can access my and now we're gonna load up the OpenShift web console so now this looks familiar to me oh yeah so if anybody's used OpenShift out there this is the exact same console and what we're going to show though is how this console via the open service broker and the open service broker implementation for Azure integrates natively with OpenShift all right so we can go down here and we can actually see I want to deploy a database I'm gonna deploy Mongo as my key value store that I'm going to use but you know like as we talk about management and having a OpenShift cluster that's managed for you I don't really want to have to manage my database either so I'm actually going to use cosmos DB it's a native Azure service it's a multilingual database that offers me the ability to access my data in a variety of different formats including MongoDB fully managed replicated around the world a pretty incredible service so I'm going to go ahead and create that so now Brendan what's interesting I think to me is you know we talked about the operational aspects and clearly it's not you and I running the clusters but you do need that way to interface with it and so when customers are able to deploy this all of this is out of the box there's no additional contemporary like this is what you get when you create when you use that tool to create that open chef cluster this is what you get with all of that integration ok great step through here and go ahead don't have any IP ranges there we go all right and we create that binding all right and so now behind the scenes openshift is integrated with the azure api's with all of my credentials to go ahead and create that distributed database once it's done provisioning actually all of the credentials necessary to access the database are going to be automatically populated into kubernetes available for me inside of OpenShift via service discovery to access from my application without any further work so I think that really shows not only the power of integrating openshift with an azure based API but actually the power of integrating a Druze API is inside of OpenShift to make a truly seamless experience for managing and deploying your containers across a variety of different platforms yeah hey you know Brendan this is great I know you've got a flight to catch because I think you're back onstage in a few hours but you know really appreciate you joining us today absolutely I look forward to seeing what else we do yeah absolutely thank you so much thanks guys Matt you want to come back on up thanks a lot guys if you have never had the opportunity to do a live demo in front of 8,000 people it'll give you a new appreciation for standing up there and doing it and that was really good you know every time I get the chance just to take a step back and think about the technology that we have at our command today I'm in awe just the progress over the last 10 or 20 years is incredible on to think about what might come in the next 10 or 20 years really is unthinkable you even forget 10 years what might come in the next five years even the next two years but this can create a lot of uncertainty in the environment of what's going to be to come but I believe I am certain about one thing and that is if ever there was a time when any idea is achievable it is now just think about what you've seen today every aspect of open hybrid cloud you have the world's infrastructure at your fingertips and it's not stopping you've heard about this the innovation of open source how fast that's evolving and improving this capability you've heard this afternoon from an entire technology ecosystem that's ready to help you on this journey and you've heard from customer after customer that's already started their journey in the successes that they've had you're one of the neat parts about this afternoon you will aren't later this week you will actually get to put your hands on all of this technology together in our live audience demo you know this is what some it's all about for us it's a chance to bring together the technology experts that you can work with to help formulate how to pull off those ideas we have the chance to bring together technology experts our customers and our partners and really create an environment where everyone can experience the power of open source that same spark that I talked about when I was at IBM where I understood the but intial that open-source had for enterprise customers we want to create the environment where you can have your own spark you can have that same inspiration let's make this you know in tomorrow's keynote actually you will hear a story about how open-source is changing medicine as we know it and literally saving lives it is a great example of expanding the ideas it might be possible that we came into this event with so let's make this the best summit ever thank you very much for being here let's kick things off right head down to the Welcome Reception in the expo hall and please enjoy the summit thank you all so much [Music] [Music]

(upbeat techno music) >> Announcer: Good morning ladies and gentlemen. This is Lenovo Transform. Please welcome to the stage Lenovo's Rod Lappin. (upbeat instrumental) >> Alright, ladies and gentlemen. Here we go. I was out the back having a chat. A bit faster than I expected. How are you all doing this morning? (crowd cheers) >> Good? How fantastic is it to be in New York City? (crowd applauds) Excellent. So my name's Rod Lappin. I'm with the Data Center Group, obviously. I do basically anything that touches customers from our sales people, our pre-sales engineers, our architects, et cetera, all the way through to our channel partner sales engagement globally. So that's my job, but enough of that, okay? So the weather this morning, absolutely fantastic. Not a cloud in the sky, perfect. A little bit different to how it was yesterday, right? I want to thank all of you because I know a lot of you had a lot of commuting issues getting into New York yesterday with all the storms. We have a lot of people from international and domestic travel caught up in obviously the network, which blows my mind, actually, but we have a lot of people here from Europe, obviously, a lot of analysts and media people here as well as customers who were caught up in circling around the airport apparently for hours. So a big round of applause for our team from Europe. (audience applauds) Thank you for coming. We have some people who commuted a very short distance. For example, our own server general manager, Cameron (mumbles), he's out the back there. Cameron, how long did it take you to get from Raleigh to New York? An hour-and-a-half flight? >> Cameron: 17 hours. >> 17 hours, ladies and gentleman. That's a fantastic distance. I think that's amazing. But I know a lot of us, obviously, in the United States have come a long way with the storms, obviously very tough, but I'm going to call out one individual. Shaneil from Spotless. Where are you Shaneil, you're here somewhere? There he is from Australia. Shaneil how long did it take you to come in from Australia? 25 hour, ladies and gentleman. A big round of applause. That's a pretty big effort. Shaneil actually I want you to stand up, if you don't mind. I've got a seat here right next to my CEO. You've gone the longest distance. How about a big round of applause for Shaneil. We'll put him in my seat, next to YY. Honestly, Shaneil, you're doing me a favor. Okay ladies and gentlemen, we've got a big day today. Obviously, my seat now taken there, fantastic. Obviously New York City, the absolute pinnacle of globalization. I first came to New York in 1996, which was before a lot of people in the room were born, unfortunately for me these days. Was completely in awe. I obviously went to a Yankees game, had no clue what was going on, didn't understand anything to do with baseball. Then I went and saw Patrick Ewing. Some of you would remember Patrick Ewing. Saw the Knicks play basketball. Had no idea what was going on. Obviously, from Australia, and somewhat slightly height challenged, basketball was not my thing but loved it. I really left that game... That was the first game of basketball I'd ever seen. Left that game realizing that effectively the guy throws the ball up at the beginning, someone taps it, that team gets it, they run it, they put it in the basket, then the other team gets it, they put it in the basket, the other team gets it, and that's basically the entire game. So I haven't really progressed from that sort of learning or understanding of basketball since then, but for me, personally, being here in New York, and obviously presenting with all of you guys today, it's really humbling from obviously some of you would have picked my accent, I'm also from Australia. From the north shore of Sydney. To be here is just a fantastic, fantastic event. So welcome ladies and gentlemen to Transform, part of our tech world series globally in our event series and our event season here at Lenovo. So once again, big round of applause. Thank you for coming (audience applauds). Today, basically, is the culmination of what I would classify as a very large journey. Many of you have been with us on that. Customers, partners, media, analysts obviously. We've got quite a lot of our industry analysts in the room. I know Matt Eastwood yesterday was on a train because he sent a Tweet out saying there's 170 people on the WIFI network. He was obviously a bit concerned he was going to get-- Pat Moorhead, he got in at 3:30 this morning, obviously from traveling here as well with some of the challenges with the transportation, so we've got a lot of people in the room that have been giving us advice over the last two years. I think all of our employees are joining us live. All of our partners and customers through the stream. As well as everybody in this packed-out room. We're very very excited about what we're going to be talking to you all today. I want to have a special thanks obviously to our R&D team in Raleigh and around the world. They've also been very very focused on what they've delivered for us today, and it's really important for them to also see the culmination of this great event. And like I mentioned, this is really the feedback. It's not just a Lenovo launch. This is a launch based on the feedback from our partners, our customers, our employees, the analysts. We've been talking to all of you about what we want to be when we grow up from a Data Center Group, and I think you're going to hear some really exciting stuff from some of the speakers today and in the demo and breakout sessions that we have after the event. These last two years, we've really transformed the organization, and that's one of the reasons why that theme is part of our Tech World Series today. We're very very confident in our future, obviously, and where the company's going. It's really important for all of you to understand today and take every single snippet that YY, Kirk, and Christian talk about today in the main session, and then our presenters in the demo sections on what Lenovo's actually doing for its future and how we're positioning the company, obviously, for that future and how the transformation, the digital transformation, is going ahead globally. So, all right, we are now going to step into our Transform event. And I've got a quick agenda statement for you. The very first thing is we're going to hear from YY, our chairman and CEO. He's going to discuss artificial intelligence, the evolution of our society and how Lenovo is clearly positioning itself in the industry. Then, obviously, you're going to hear from Kirk Skaugen, our president of the Data Center Group, our new boss. He's going to talk about how long he's been with the company and the transformation, once again, we're making, very specifically to the Data Center Group and how much of a difference we're making to society and some of our investments. Christian Teismann, our SVP and general manager of our client business is going to talk about the 25 years of ThinkPad. This year is the 25-year anniversary of our ThinkPad product. Easily the most successful brand in our client branch or client branch globally of any vendor. Most successful brand we've had launched, and this afternoon breakout sessions, obviously, with our keynotes, fantastic sessions. Make sure you actually attend all of those after this main arena here. Now, once again, listen, ask questions, and make sure you're giving us feedback. One of the things about Lenovo that we say all the time... There is no room for arrogance in our company. Every single person in this room is a customer, partner, analyst, or an employee. We love your feedback. It's only through your feedback that we continue to improve. And it's really important that through all of the sessions where the Q&As happen, breakouts afterwards, you're giving us feedback on what you want to see from us as an organization as we go forward. All right, so what were you doing 25 years ago? I spoke about ThinkPad being 25 years old, but let me ask you this. I bet you any money that no one here knew that our x86 business is also 25 years old. So, this year, we have both our ThinkPad and our x86 anniversaries for 25 years. Let me tell you. What were you guys doing 25 years ago? There's me, 25 years ago. It's a bit scary, isn't it? It's very svelte and athletic and a lot lighter than I am today. It makes me feel a little bit conscious. And you can see the black and white shot. It shows you that even if you're really really short and you come from the wrong side of the tracks to make some extra cash, you can still do some modeling as long as no one else is in the photo to give anyone any perspective, so very important. I think I might have got one photo shoot out of that, I don't know. I had to do it, I needed the money. Let me show you another couple of photos. Very interesting, how's this guy? How cool does he look? Very svelte and athletic. I think there's no doubt. He looks much much cooler than I do. Okay, so ladies and gentlemen, without further ado, it gives me great honor to obviously introduce our very very first guest to the stage. Ladies and gentlemen, our chairman and CEO, Yuanqing Yang. or as we like to call him, YY. A big round of applause, thank you. (upbeat techno instrumental) >> Good morning everyone. Thank you, Rod, for your introduction. Actually, I didn't think I was younger than you (mumbles). I can't think of another city more fitting to host the Transform event than New York. A city that has transformed from a humble trading post 400 years ago to one of the most vibrant cities in the world today. It is a perfect symbol of transformation of our world. The rapid and the deep transformations that have propelled us from the steam engine to the Internet era in just 200 years. Looking back at 200 years ago, there was only a few companies that operated on a global scale. The total value of the world's economy was around $188 billion U.S. dollars. Today, it is only $180 for each person on earth. Today, there are thousands of independent global companies that compete to sell everything, from corn and crude oil to servers and software. They drive a robust global economy was over $75 trillion or $1,000 per person. Think about it. The global economy has multiplied almost 450 times in just two centuries. What is even more remarkable is that the economy has almost doubled every 15 years since 1950. These are significant transformation for businesses and for the world and our tiny slice of pie. This transformation is the result of the greatest advancement in technology in human history. Not one but three industrial revolutions have happened over the last 200 years. Even though those revolutions created remarkable change, they were just the beginning. Today, we are standing at the beginning of the fourth revolution. This revolution will transform how we work (mumbles) in ways that no one could imagine in the 18th century or even just 18 months ago. You are the people who will lead this revolution. Along with Lenovo, we will redefine IT. IT is no longer just information technology. It's intelligent technology, intelligent transformation. A transformation that is driven by big data called computing and artificial intelligence. Even the transition from PC Internet to mobile Internet is a big leap. Today, we are facing yet another big leap from the mobile Internet to the Smart Internet or intelligent Internet. In this Smart Internet era, Cloud enables devices, such as PCs, Smart phones, Smart speakers, Smart TVs. (mumbles) to provide the content and the services. But the evolution does not stop them. Ultimately, almost everything around us will become Smart, with building computing, storage, and networking capabilities. That's what we call the device plus Cloud transformation. These Smart devices, incorporated with various sensors, will continuously sense our environment and send data about our world to the Cloud. (mumbles) the process of this ever-increasing big data and to support the delivery of Cloud content and services, the data center infrastructure is also transforming to be more agile, flexible, and intelligent. That's what we call the infrastructure plus Cloud transformation. But most importantly, it is the human wisdom, the people learning algorithm vigorously improved by engineers that enables artificial intelligence to learn from big data and make everything around us smarter. With big data collected from Smart devices, computing power of the new infrastructure under the trend artificial intelligence, we can understand the world around us more accurately and make smarter decisions. We can make life better, work easier, and society safer and healthy. Think about what is already possible as we start this transformation. Smart Assistants can help you place orders online with a voice command. Driverless cars can run on the same road as traditional cars. (mumbles) can help troubleshoot customers problems, and the virtual doctors already diagnose basic symptoms. This list goes on and on. Like every revolution before it, intelligent transformation, will fundamentally change the nature of business. Understanding and preparing for that will be the key for the growth and the success of your business. The first industrial revolution made it possible to maximize production. Water and steam power let us go from making things by hand to making them by machine. This transformed how fast things could be produced. It drove the quantity of merchandise made and led to massive increase in trade. With this revolution, business scale expanded, and the number of customers exploded. Fifty years later, the second industrial revolution made it necessary to organize a business like the modern enterprise, electric power, and the telegraph communication made business faster and more complex, challenging businesses to become more efficient and meeting entirely new customer demands. In our own lifetimes, we have witnessed the third industrial revolution, which made it possible to digitize the enterprise. The development of computers and the Internet accelerated business beyond human speed. Now, global businesses have to deal with customers at the end of a cable, not always a handshake. While we are still dealing with the effects of a digitizing business, the fourth revolution is already here. In just the past two or three years, the growth of data and advancement in visual intelligence has been astonishing. The computing power can now process the massive amount of data about your customers, suppliers, partners, competitors, and give you insights you simply could not imagine before. Artificial intelligence can not only tell you what your customers want today but also anticipate what they will need tomorrow. This is not just about making better business decisions or creating better customer relationships. It's about making the world a better place. Ultimately, can we build a new world without diseases, war, and poverty? The power of big data and artificial intelligence may be the revolutionary technology to make that possible. Revolutions don't happen on their own. Every industrial revolution has its leaders, its visionaries, and its heroes. The master transformers of their age. The first industrial revolution was led by mechanics who designed and built power systems, machines, and factories. The heroes of the second industrial revolution were the business managers who designed and built modern organizations. The heroes of the third revolution were the engineers who designed and built the circuits and the source code that digitized our world. The master transformers of the next revolution are actually you. You are the designers and the builders of the networks and the systems. You will bring the benefits of intelligence to every corner of your enterprise and make intelligence the central asset of your business. At Lenovo, data intelligence is embedded into everything we do. How we understand our customer's true needs and develop more desirable products. How we profile our customers and market to them precisely. How we use internal and external data to balance our supply and the demand. And how we train virtual agents to provide more effective sales services. So the decisions you make today about your IT investment will determine the quality of the decisions your enterprise will make tomorrow. So I challenge each of you to seize this opportunity to become a master transformer, to join Lenovo as we work together at the forefront of the fourth industrial revolution, as leaders of the intelligent transformation. (triumphant instrumental) Today, we are launching the largest portfolio in our data center history at Lenovo. We are fully committed to the (mumbles) transformation. Thank you. (audience applauds) >> Thanks YY. All right, ladies and gentlemen. Fantastic, so how about a big round of applause for YY. (audience applauds) Obviously a great speech on the transformation that we at Lenovo are taking as well as obviously wanting to journey with our partners and customers obviously on that same journey. What I heard from him was obviously artificial intelligence, how we're leveraging that integrally as well as externally and for our customers, and the investments we're making in the transformation around IoT machine learning, obviously big data, et cetera, and obviously the Data Center Group, which is one of the key things we've got to be talking about today. So we're on the cusp of that fourth revolution, as YY just mentioned, and Lenovo is definitely leading the way and investing in those parts of the industry and our portfolio to ensure we're complimenting all of our customers and partners on what they want to be, obviously, as part of this new transformation we're seeing globally. Obviously now, ladies and gentlemen, without further ado once again, to tell us more about what's going on today, our announcements, obviously, that all of you will be reading about and seeing in the breakout and the demo sessions with our segment general managers this afternoon is our president of the data center, Mr. Kirk Skaugen. (upbeat instrumental) >> Good morning, and let me add my welcome to Transform. I just crossed my six months here at Lenovo after over 24 years at Intel Corporation, and I can tell you, we've been really busy over the last six months, and I'm more excited and enthusiastic than ever and hope to share some of that with you today. Today's event is called "Transform", and today we're announcing major new transformations in Lenovo, in the data center, but more importantly, we're celebrating the business results that these platforms are going to have on society and with international supercomputing going on in parallel in Frankfurt, some of the amazing scientific discoveries that are going to happen on some of these platforms. Lenovo has gone through some significant transformations in the last two years, since we acquired the IBM x86 business, and that's really positioning us for this next phase of growth, and we'll talk more about that later. Today, we're announcing the largest end-to-end data center portfolio in Lenovo's history, as you heard from YY, and we're really taking the best of the x86 heritage from our IBM acquisition of the x86 server business and combining that with the cost economics that we've delivered from kind of our China heritage. As we've talked to some of the analysts in the room, it's really that best of the east and best of the west is combining together in this announcement today. We're going to be announcing two new brands, building on our position as the number one x86 server vendor in both customer satisfaction and in reliability, and we're also celebrating, next month in July, a very significant milestone, which will we'll be shipping our 20 millionth x86 server into the industry. For us, it's an amazing time, and it's an inflection point to kind of look back, pause, but also share the next phase of Lenovo and the exciting vision for the future. We're also making some declarations on our vision for the future today. Again, international supercomputing's going on, and, as it turns out, we're the fastest growing supercomputer company on earth. We'll talk about that. Our goal today that we're announcing is that we plan in the next several years to become number one in supercomputing, and we're going to put the investments behind that. We're also committing to our customers that we're going to disrupt the status quo and accelerate the pace of innovation, not just in our legacy server solutions, but also in Software-Defined because what we've heard from you is that that lack of legacy, we don't have a huge router business or a huge sand business to protect. It's that lack of legacy that's enabling us to invest and get ahead of the curb on this next transition to Software-Defined. So you're going to see us doing that through building our internal IP, through some significant joint ventures, and also through some merges and acquisitions over the next several quarters. Altogether, we're driving to be the most trusted data center provider in the industry between us and our customers and our suppliers. So a quick summary of what we're going to dive into today, both in my keynote as well as in the breakout sessions. We're in this transformation to the next phase of Lenovo's data center growth. We're closing out our previous transformation. We actually, believe it or not, in the last six months or so, have renegotiated 18,000 contracts in 160 countries. We built out an entire end-to-end organization from development and architecture all the way through sales and support. This next transformation, I think, is really going to excite Lenovo shareholders. We're building the largest data center portfolio in our history. I think when IBM would be up here a couple years ago, we might have two or three servers to announce in time to market with the next Intel platform. Today, we're announcing 14 new servers, seven new storage systems, an expanded set of networking portfolios based on our legacy with Blade Network Technologies and other companies we've acquired. Two new brands that we'll talk about for both data center infrastructure and Software-Defined, a new set of premium premiere services as well as a set of engineered solutions that are going to help our customers get to market faster. We're going to be celebrating our 20 millionth x86 server, and as Rod said, 25 years in x86 server compute, and Christian will be up here talking about 25 years of ThinkPad as well. And then a new end-to-end segmentation model because all of these strategies without execution are kind of meaningless. I hope to give you some confidence in the transformation that Lenovo has gone through as well. So, having observed Lenovo from one of its largest partners, Intel, for more than a couple decades, I thought I'd just start with why we have confidence on the foundation that we're building off of as we move from a PC company into a data center provider in a much more significant way. So Lenovo today is a company of $43 billion in sales. Absolutely astonishing, it puts us at about Fortune 202 as a company, with 52,000 employees around the world. We're supporting and have service personnel, almost a little over 10,000 service personnel that service our servers and data center technologies in over 160 countries that provide onsite service and support. We have seven data center research centers. One of the reasons I came from Intel to Lenovo was that I saw that Lenovo became number one in PCs, not through cost cutting but through innovation. It was Lenovo that was partnering on the next-generation Ultrabooks and two-in-ones and tablets in the modem mods that you saw, but fundamentally, our path to number one in data center is going to be built on innovation. Lastly, we're one of the last companies that's actually building not only our own motherboards at our own motherboard factories, but also with five global data center manufacturing facilities. Today, we build about four devices a second, but we also build over 100 servers per hour, and the cost economics we get, and I just visited our Shenzhen factory, of having everything from screws to microprocessors come up through the elevator on the first floor, go left to build PCs and ThinkPads and go right to build server technology, means we have some of the world's most cost effective solutions so we can compete in things like hyperscale computing. So it's with that that I think we're excited about the foundation that we can build off of on the Data Center Group. Today, as we stated, this event is about transformation, and today, I want to talk about three things we're going to transform. Number one is the customer experience. Number two is the data center and our customer base with Software-Defined infrastructure, and then the third is talk about how we plan to execute flawlessly with a new transformation that we've had internally at Lenovo. So let's dive into it. On customer experience, really, what does it mean to transform customer experience? Industry pundits say that if you're not constantly innovating, you can fall behind. Certainly the technology industry that we're in is transforming at record speed. 42% of business leaders or CIOs say that digital first is their top priority, but less than 50% actually admit that they have a strategy to get there. So people are looking for a partner to keep pace with that innovation and change, and that's really what we're driving to at Lenovo. So today we're announcing a set of plans to take another step function in customer experience, and building off of our number one position. Just recently, Gartner shows Lenovo as the number 24 supply chains of companies over $12 billion. We're up there with Amazon, Coca-Cola, and we've now completely re-architected our supply chain in the Data Center Group from end to end. Today, we can deliver 90% of our SKUs, order to ship in less than seven days. The artificial intelligence that YY mentioned is optimizing our performance even further. In services, as we talked about, we're now in 160 countries, supporting on-site support, 50 different call centers around the world for local language support, and we're today announcing a whole set of new premiere support services that I'll get into in a second. But we're building on what's already better than 90% customer satisfaction in this space. And then in development, for all the engineers out there, we started foundationally for this new set of products, talking about being number one in reliability and the lowest downtime of any x86 server vendor on the planet, and these systems today are architected to basically extend that leadership position. So let me tell you the realities of reliability. This is ITIC, it's a reliability report. 750 CIOs and IT managers from more than 20 countries, so North America, Europe, Asia, Australia, South America, Africa. This isn't anything that's paid for with sponsorship dollars. Lenovo has been number one for four years running on x86 reliability. This is the amount of downtime, four hours or more, in mission-critical environments from the leading x86 providers. You can see relative to our top two competitors that are ahead of us, HP and Dell, you can see from ITIC why we are building foundationally off of this, and why it's foundational to how we're developing these new platforms. In customer satisfaction, we are also rated number one in x86 server customer satisfaction. This year, we're now incentivizing every single Lenovo employee on customer satisfaction and customer experience. It's been a huge mandate from myself and most importantly YY as our CEO. So you may say well what is the basis of this number one in customer satisfaction, and it's not just being number one in one category, it's actually being number one in 21 of the 22 categories that TBR talks about. So whether it's performance, support systems, online product information, parts and availability replacement, Lenovo is number one in 21 of the 22 categories and number one for six consecutive studies going back to Q1 of 2015. So this, again, as we talk about the new product introductions, it's something that we absolutely want to build on, and we're humbled by it, and we want to continue to do better. So let's start now on the new products and talk about how we're going to transform the data center. So today, we are announcing two new product offerings. Think Agile and ThinkSystem. If you think about the 25 years of ThinkPad that Christian's going to talk about, Lenovo has a continuous learning culture. We're fearless innovators, we're risk takers, we continuously learn, but, most importantly, I think we're humble and we have some humility. That when we fail, we can fail fast, we learn, and we improve. That's really what drove ThinkPad to number one. It took about eight years from the acquisition of IBM's x86 PC business before Lenovo became number one, but it was that innovation, that listening and learning, and then improving. As you look at the 25 years of ThinkPad, there were some amazing successes, but there were also some amazing failures along the way, but each and every time we learned and made things better. So this year, as Rod said, we're not just celebrating 25 years of ThinkPad, but we're celebrating 25 years of x86 server development since the original IBM PC servers in 1992. It's a significant day for Lenovo. Today, we're excited to announce two new brands. ThinkSystem and ThinkAgile. It's an important new announcement that we started almost three years ago when we acquired the x86 server business. Why don't we run a video, and we'll show you a little bit about ThinkSystem and ThinkAgile. >> Narrator: The status quo is comfortable. It gets you by, but if you think that's good enough for your data center, think again. If adoption is becoming more complicated when it should be simpler, think again. If others are selling you technology that's best for them, not for you, think again. It's time for answers that win today and tomorrow. Agile, innovative, different. Because different is better. Different embraces change and makes adoption simple. Different designs itself around you. Using 25 years of innovation and design and R&D. Different transforms, it gives you ThinkSystem. World-record performance, most reliable, easy to integrate, scales faster. Different empowers you with ThinkAgile. It redefines the experience, giving you the speed of Cloud and the control of on-premise IT. Responding faster to what your business really needs. Different defines the future. Introducing Lenovo ThinkSystem and ThinkAgile. (exciting and slightly aggressive digital instrumental) >> All right, good stuff, huh? (audience applauds) So it's built off of this 25-year history of us being in the x86 server business, the commitment we established three years ago after acquiring the x86 server business to be and have the most reliable, the most agile, and the most highest-performing data center solutions on the planet. So today we're announcing two brands. ThinkSystem is for the traditional data center infrastructure, and ThinkAgile is our brand for Software-Defined infrastructure. Again, the teams challenge themselves from the start, how do we build off this rich heritage, expanding our position as number one in customer satisfaction, reliability, and one of the world's best supply chains. So let's start and look at the next set of solutions. We have always prided ourself that little things don't mean a lot. Little things mean everything. So today, as we said on the legacy solutions, we have over 30 world-record performance benchmarks on Intel architecture, and more than actually 150 since we started tracking this back in 2001. So it's the little pieces of innovation. It's the fine tuning that we do with our partners like an Intel or a Microsoft, an SAP, VMware, and Nutanix that's enabling us to get these world-record performance benchmarks, and with this next generation of solutions we think we'll continue to certainly do that. So today we're announcing the most comprehensive portfolio ever in our data center history. There's 14 servers, seven storage devices, and five network switches. We're also announcing, which is super important to our customer base, a set of new premiere service options. That's giving you fast access directly to a level two support person. No automated response system involved. You get to pick up the phone and directly talk to a level two support person that's going to have end-to-end ownership of the customer experience for ThinkSystem. With ThinkAgile, that's going to be completely bundled with every ThinkAgile you purchase. In addition, we're having white glove service on site that will actually unbox the product for you and get it up and running. It's an entirely new set of solutions for hybrid Cloud, for big data analytics and database applications around these engineered solutions. These are like 40- to 50-page guides where we fine-tuned the most important applications around virtual desktop infrastructure and those kinds of applications, working side by side with all of our ISP partners. So significantly expanding, not just the hardware but the software solutions that, obviously, you, as our customers, are running. So if you look at ThinkSystem innovation, again, it was designed for the ultimate in flexibility, performance, and reliability. It's a single now-unified brand that combines what used to be the Lenovo Think server and the IBM System x products now into a single brand that spans server, storage, and networking. We're basically future-proofing it for the next-generation data center. It's a significantly simplified portfolio. One of the big pieces that we've heard is that the complexity of our competitors has really been overwhelming to customers. We're building a more flexible, more agile solution set that requires less work, less qualification, and more future proofing. There's a bunch of things in this that you'll see in the demos. Faster time-to-service in terms of the modularity of the systems. 12% faster service equating to almost $50 thousand per hour of reduced downtime. Some new high-density options where we have four nodes and a 2U, twice the density to improve and reduce outbacks and mission-critical workloads. And then in high-performance computing and supercomputing, we're going to spend some time on that here shortly. We're announcing new water-cooled solutions. We have some of the most premiere water-cooled solutions in the world, with more than 25 patents pending now, just in the water-cooled solutions for supercomputing. The performance that we think we're going to see out of these systems is significant. We're building off of that legacy that we have today on the existing Intel solutions. Today, we believe we have more than 50% of SAP HANA installations in the world. In fact, SAP just went public that they're running their internal SAP HANA on Lenovo hardware now. We're seeing a 59% increase in performance on SAP HANA generation on generation. We're seeing 31% lower total cost to ownership. We believe this will continue our position of having the highest level of five-nines in the x86 server industry. And all of these servers will start being available later this summer when the Intel announcements come out. We're also announcing the largest storage portfolio in our history, significantly larger than anything we've done in the past. These are all available today, including some new value class storage offerings. Our network portfolio is expanding now significantly. It was a big surprise when I came to Lenovo, seeing the hundreds of engineers we had from the acquisition of Blade Network Technologies and others with our teams in Romania, Santa Clara, really building out both the embedded portfolio but also the top racks, which is around 10 gig, 25 gig, and 100 gig. Significantly better economics, but all the performance you'd expect from the largest networking companies in the world. Those are also available today. ThinkAgile and Software-Defined, I think the one thing that has kind of overwhelmed me since coming in to Lenovo is we are being embraced by our customers because of our lack of legacy. We're not trying to sell you one more legacy SAN at 65% margins. ThinkAgile really was founded, kind of born free from the shackles of legacy thinking and legacy infrastructure. This is just the beginning of what's going to be an amazing new brand in the transformation to Software-Defined. So, for Lenovo, we're going to invest in our own internal organic IP. I'll foreshadow: There's some significant joint ventures and some mergers and acquisitions that are going to be coming in this space. And so this will be the foundation for our Software-Defined networking and storage, for IoT, and ultimately for the 5G build-out as well. This is all built for data centers of tomorrow that require fluid resources, tightly integrated software and hardware in kind of an appliance, selling at the rack level, and so we'll show you how that is going to take place here in a second. ThinkAgile, we have a few different offerings. One is around hyperconverged storage, Hybrid Cloud, and also Software-Defined storage. So we're really trying to redefine the customer experience. There's two different solutions we're having today. It's a Microsoft Azure solution and a Nutanix solution. These are going to be available both in the appliance space as well as in a full rack solution. We're really simplifying and trying to transform the entire customer experience from how you order it. We've got new capacity planning tools that used to take literally days for us to get the capacity planning done. It's now going down to literally minutes. We've got new order, delivery, deployment, administration service, something we're calling ThinkAgile Advantage, which is the white glove unboxing of the actual solutions on prem. So the whole thing when you hear about it in the breakout sessions about transforming the entire customer experience with both an HX solution and an SX solution. So again, available at the rack level for both Nutanix and for Microsoft Solutions available in just a few months. Many of you in the audience since the Microsoft Airlift event in Seattle have started using these things, and the feedback to date has been fantastic. We appreciate the early customer adoption that we've seen from people in the audience here. So next I want to bring up one of our most important partners, and certainly if you look at all of these solutions, they're based on the next-generation Intel Xeon scalable processor that's going to be announcing very very soon. I want to bring on stage Rupal Shah, who's the corporate vice president and general manager of Global Data Center Sales with Intel, so Rupal, please join me. (upbeat instrumental) So certainly I have long roots at Intel, but why don't you talk about, from Intel's perspective, why Lenovo is an important partner for Lenovo. >> Great, well first of all, thank you very much. I've had the distinct pleasure of not only working with Kirk for many many years, but also working with Lenovo for many years, so it's great to be here. Lenovo is not only a fantastic supplier and leader in the industry for Intel-based servers but also a very active partner in the Intel ecosystem. In the Intel ecosystem, specifically, in our partner programs and in our builder programs around Cloud, around the network, and around storage, I personally have had a long history in working with Lenovo, and I've seen personally that PC transformation that you talked about, Kirk, and I believe, and I know that Intel believes in Lenovo's ability to not only succeed in the data center but to actually lead in the data center. And so today, the ThinkSystem and ThinkAgile announcement is just so incredibly important. It's such a great testament to our two companies working together, and the innovation that we're able to bring to the market, and all of it based on the Intel Xeon scalable processor. >> Excellent, so tell me a little bit about why we've been collaborating, tell me a little bit about why you're excited about ThinkSystem and ThinkAgile, specifically. >> Well, there are a lot of reasons that I'm excited about the innovation, but let me talk about a few. First, both of our companies really stand behind the fact that it's increasingly a hybrid world. Our two companies offer a range of solutions now to customers to be able to address their different workload needs. ThinkSystem really brings the best, right? It brings incredible performance, flexibility in data center deployment, and industry-leading reliability that you've talked about. And, as always, Xeon has a history of being built for the data center specifically. The Intel Xeon scalable processor is really re-architected from the ground up in order to enhance compute, network, and storage data flows so that we can deliver workload optimized performance for both a wide range of traditional workloads and traditional needs but also some emerging new needs in areas like artificial intelligence. Second is when it comes to the next generation of Cloud infrastructure, the new Lenovo ThinkAgile line offers a truly integrated offering to address data center pain points, and so not only are you able to get these pretested solutions, but these pretested solutions are going to get deployed in your infrastructure faster, and they're going to be deployed in a way that's going to meet your specific needs. This is something that is new for both of us, and it's an incredible innovation in the marketplace. I think that it's a great addition to what is already a fantastic portfolio for Lenovo. >> Excellent. >> Finally, there's high-performance computing. In high-performance computing. First of all, congratulations. It's a big week, I think, for both of us. Fantastic work that we've been doing together in high-performance computing and actually bringing the best of the best to our customers, and you're going to hear a whole lot more about that. We obviously have a number of joint innovation centers together between Intel and Lenovo. Tell us about some of the key innovations that you guys are excited about. >> Well, Intel and Lenovo, we do have joint innovation labs around the world, and we have a long and strong history of very tight collaboration. This has brought a big wave of innovation to the marketplace in areas like software-defined infrastructure. Yet another area is working closely on a joint vision that I think our two companies have in artificial intelligence. Intel is very committed to the world of AI, and we're committed in making the investments required in technology development, in training, and also in R&D to be able to deliver end-to-end solutions. So with Intel's comprehensive technology portfolio and Lenovo's development and innovation expertise, it's a great combination in this space. I've already talked a little bit about HPC and so has Kirk, and we're going to hear a little bit more to come, but we're really building the fastest compute solutions for customers that are solving big problems. Finally, we often talk about processors from Intel, but it's not just about the processors. It's way beyond that. It's about engaging at the solution level for our customers, and I'm so excited about the work that we've done together with Lenovo to bring to market products like Intel Omni-Path Architecture, which is really the fabric for high-performance data centers. We've got a great showing this week with Intel Omni-Path Architecture, and I'm so grateful for all the work that we've done to be able to bring true solutions to the marketplace. I am really looking forward to our future collaboration with Lenovo as we have in the past. I want to thank you again for inviting me here today, and congratulations on a fantastic launch. >> Thank you, Rupal, very much, for the long partnership. >> Thank you. (audience applauds) >> Okay, well now let's transition and talk a little bit about how Lenovo is transforming. The first thing we've done when I came on board about six months ago is we've transformed to a truly end-to-end organization. We're looking at the market segments I think as our customers define them, and we've organized into having vice presidents and senior vice presidents in charge of each of these major groups, thinking really end to end, from architecture all the way to end of life and customer support. So the first is hyperscale infrastructure. It's about 20% on the market by 2020. We've hired a new vice president there to run that business. Given we can make money in high-volume desktop PCs, it's really the manufacturing prowess, deep engineering collaboration that's enabling us to sell into Baidu, and to Alibaba, Tencent, as well as the largest Cloud vendors on the West Coast here in the United States. We believe we can make money here by having basically a deep deep engineering engagement with our key customers and building on the PC volume economics that we have within Lenovo. On software-defined infrastructure, again, it's that lack of legacy that I think is propelling us into this space. We're not encumbered by trying to sell one more legacy SAN or router, and that's really what's exciting us here, as we transform from a hardware to a software-based company. On HPC and AI, as we said, we'll talk about this in a second. We're the fastest-growing supercomputing company on earth. We have aspirations to be the largest supercomputing company on earth, with China and the U.S. vying for number one in that position, it puts us in a good position there. We're going to bridge that into artificial intelligence in our upcoming Shanghai Tech World. The entire day is around AI. In fact, YY has committed $1.2 billion to artificial intelligence over the next few years of R&D to help us bridge that. And then on data center infrastructure, is really about moving to a solutions based infrastructure like our position with SAP HANA, where we've gone deep with engineers on site at SAP, SAP running their own infrastructure on Lenovo and building that out beyond just SAP to other solutions in the marketplace. Overall, significantly expanding our services portfolio to maintain our number one customer satisfaction rating. So given ISC, or International Supercomputing, this week in Frankfurt, and a lot of my team are actually over there, I wanted to just show you the transformation we've had at Lenovo for delivering some of the technology to solve some of the most challenging humanitarian problems on earth. Today, we are the fastest-growing supercomputer company on the planet in terms of number of systems on the Top 500 list. We've gone from zero to 92 positions in just a few short years, but IDC also positions Lenovo as the fast-growing supercomputer and HPC company overall at about 17% year on year growth overall, including all of the broad channel, the regional universities and this kind of thing, so this is an exciting place for us. I'm excited today that Sergi has come all the way from Spain to be with us today. It's an exciting time because this week we announce the fastest next-generation Intel supercomputer on the planet at Barcelona Supercomputer. Before I bring Sergi on stage, let's run a video and I'll show you why we're excited about the capabilities of these next-generation supercomputers. Run the video please. >> Narrator: Different creates one of the most powerful supercomputers for the Barcelona Supercomputer Center. A high-performance, high-capacity design to help shape tomorrow's world. Different designs what's best for you, with 25 years of end-to-end expertise delivering large-scale solutions. It integrates easily with technology from industry partners, through deep collaboration with the client to manufacture, test, configure, and install at global scale. Different achieves the impossible. The first of a new series. A more energy-efficient supercomputer yet 10 times more powerful than its predecessor. With over 3,400 Lenovo ThinkSystem servers, each performing over two trillion calculations per second, giving us 11.1 petaflop capacity. Different powers MareNostrum, a supercomputer that will help us better understand cancer, help discover disease-fighting therapies, predict the impact of climate change. MareNostrom 4.0 promises to uncover answers that will help solve humanities greatest challenges. (audience applauds) >> So please help me in welcoming operations director of the Barcelona Supercomputer Center, Sergi Girona. So welcome, and again, congratulations. It's been a big week for both of us. But I think for a long time, if you haven't been to Barcelona, this has been called the world's most beautiful computer because it's in one of the most gorgeous chapels in the world as you can see here. Congratulations, we now are number 13 on the Top500 list and the fastest next-generation Intel computer. >> Thank you very much, and congratulations to you as well. >> So maybe we can just talk a little bit about what you've done over the last few months with us. >> Sure, thank you very much. It is a pleasure for me being invited here to present to you what we've been doing with Lenovo so far and what we are planning to do in the next future. I'm representing here Barcelona Supercomputing Center. I am presenting high-performance computing services to science and industry. How we see these science services has changed the paradigm of science. We are coming from observation. We are coming from observation on the telescopes and the microscopes and the building of infrastructures, but this is not affordable anymore. This is very expensive, so it's not possible, so we need to move to simulations. So we need to understand what's happening in our environment. We need to predict behaviors only going through simulation. So, at BSC, we are devoted to provide services to industry, to science, but also we are doing our own research because we want to understand. At the same time, we are helping and developing the new engineers of the future on the IT, on HPC. So we are having four departments based on different topics. The main and big one is wiling to understand how we are doing the next supercomputers from the programming level to the performance to the EIA, so all these things, but we are having also interest on what about the climate change, what's the air quality that we are having in our cities. What is the precision medicine we need to have. How we can see that the different drugs are better for different individuals, for different humans, and of course we have an energy department, taking care of understanding what's the better optimization for a cold, how we can save energy running simulations on different topics. But, of course, the topic of today is not my research, but it's the systems we are building in Barcelona. So this is what we have been building in Barcelona so far. From left to right, you have the preparation of the facility because this is 160 square meters with 1.4 megabytes, so that means we need new piping, we need new electricity, at the same time in the center we have to install the core services of the system, so the management practices, and then on the right-hand side you have installation of the networking, the Omni-Path by Intel. Because all of the new racks have to be fully integrated and they need to come into operation rapidly. So we start deployment of the system May 15, and we've now been ending and coming in production July first. All the systems, all the (mumbles) systems from Lenovo are coming before being open and available. What we've been installing here in Barcelona is general purpose systems for our general workload of the system with 3,456 nodes. Everyone of those having 48 cores, 96 gigabytes main memory for a total capacity of about 400 terabytes memory. The objective of this is that we want to, all the system, all the processors, to work together for a single execution for running altogether, so this is an example of the platinum processors from Intel having 24 cores each. Of course, for doing this together with all the cores in the same application, we need a high-speed network, so this is Omni-Path, and of course all these cables are connecting all the nodes. Noncontention, working together, cooperating. Of course, this is a bunch of cables. They need to be properly aligned in switches. So here you have the complete presentation. Of course, this is general purpose, but we wanted to invest with our partners. We want to understand what the supercomputers we wanted to install in 2020, (mumbles) Exascale. We want to find out, we are installing as well systems with different capacities with KNH, with power, with ARM processors. We want to leverage our obligations for the future. We want to make sure that in 2020 we are ready to move our users rapidly to the new technologies. Of course, this is in total, giving us a total capacity of 13.7 petaflops that it's 12 times the capacity of the former MareNostrum four years ago. We need to provide the services to our scientists because they are helping to solve problems for humanity. That's the place we are going to go. Last is inviting you to come to Barcelona to see our place and our chapel. Thank you very much (audience applauds). >> Thank you. So now you can all go home to your spouses and significant others and say you have a formal invitation to Barcelona, Spain. So last, I want to talk about what we've done to transform Lenovo. I think we all know the history is nice but without execution, none of this is going to be possible going forward, so we have been very very busy over the last six months to a year of transforming Lenovo's data center organization. First, we moved to a dedicated end-to-end sales and marketing organization. In the past, we had people that were shared between PC and data center, now thousands of sales people around the world are 100% dedicated end to end to our data center clients. We've moved to a fully integrated and dedicated supply chain and procurement organization. A fully dedicated quality organization, 100% dedicated to expanding our data center success. We've moved to a customer-centric segment, again, bringing in significant new leaders from outside the company to look end to end at each of these segments, supercomputing being very very different than small business, being very very different than taking care of, for example, a large retailer or bank. So around hyperscale, software-defined infrastructure, HPC, AI, and supercomputing and data center solutions-led infrastructure. We've built out a whole new set of global channel programs. Last year, or a year passed, we have five different channel programs around the world. We've now got one simplified channel program for dealer registration. I think our channel is very very energized to go out to market with Lenovo technology across the board, and a whole new set of system integrator relationships. You're going to hear from one of them in Christian's discussion, but a whole new set of partnerships to build solutions together with our system integrative partners. And, again, as I mentioned, a brand new leadership team. So look forward to talking about the details of this. There's been a significant amount of transformation internal to Lenovo that's led to the success of this new product introduction today. So in conclusion, I want to talk about the news of the day. We are transforming Lenovo to the next phase of our data center growth. Again, in over 160 countries, closing on that first phase of transformation and moving forward with some unique declarations. We're launching the largest portfolio in our history, not just in servers but in storage and networking, as everything becomes kind of a software personality on top of x86 Compute. We think we're very well positioned with our scale on PCs as well as data center. Two new brands for both data center infrastructure and Software-Defined, without the legacy shackles of our competitors, enabling us to move very very quickly into Software-Defined, and, again, foreshadowing some joint ventures in M&A that are going to be coming up that will further accelerate ourselves there. New premiere support offerings, enabling you to get direct access to level two engineers and white glove unboxing services, which are going to be bundled along with ThinkAgile. And then celebrating the milestone of 25 years in x86 server compute, not just ThinkPads that you'll hear about shortly, but also our 20 million server shipping next month. So we're celebrating that legacy and looking forward to the next phase. And then making sure we have the execution engine to maintain our position and grow it, being number one in customer satisfaction and number one in quality. So, with that, thank you very much. I look forward to seeing you in the breakouts today and talking with many of you, and I'll bring Rod back up to transition us to the next section. Thank you. (audience applauds) >> All right, Kirk, thank you, sir. All right, ladies and gentlemen, what did you think of that? How about a big round of applause for ThinkAgile, ThinkSystems new brands? (audience applauds) And, obviously, with that comes a big round of applause, for Kirk Skaugen, my boss, so we've got to give him a big round of applause, please. I need to stay employed, it's very important. All right, now you just heard from Kirk about some of the new systems, the brands. How about we have a quick look at the video, which shows us the brand new DCG images. >> Narrator: Legacy thinking is dead, stuck in the past, selling the same old stuff, over and over. So then why does it seem like a data center, you know, that thing powering all our little devices and more or less everything interaction today is still stuck in legacy thinking because it's rigid, inflexible, slow, but that's not us. We don't do legacy. We do different. Because different is fearless. Different reduces Cloud deployment from days to hours. Different creates agile technology that others follow. Different is fluid. It uses water-cooling technology to save energy. It co-innovates with some of the best minds in the industry today. Different is better, smarter. Maybe that's why different already holds so many world-record benchmarks in everything. From virtualization to database and application performance or why it's number one in reliability and customer satisfaction. Legacy sells you what they want. Different builds the data center you need without locking you in. Introducing the Data Center Group at Lenovo. Different... Is better. >> All right, ladies and gentlemen, a big round of applause, once again (mumbles) DCG, fantastic. And I'm sure all of you would agree, and Kirk mentioned it a couple of times there. No legacy means a real consultative approach to our customers, and that's something that we really feel is differentiated for ourselves. We are effectively now one of the largest startups in the DCG space, and we are very much ready to disrupt. Now, here in New York City, obviously, the heart of the fashion industry, and much like fashion, as I mentioned earlier, we're different, we're disruptive, we're agile, smarter, and faster. I'd like to say that about myself, but, unfortunately, I can't. But those of you who have observed, you may have noticed that I, too, have transformed. I don't know if anyone saw that. I've transformed from the pinstripe blue, white shirt, red tie look of the, shall we say, our predecessors who owned the x86 business to now a very Lenovo look. No tie and consequently a little bit more chic New York sort of fashion look, shall I say. Nothing more than that. So anyway, a bit of a transformation. It takes a lot to get to this look, by the way. It's a lot of effort. Our next speaker, Christian Teismann, is going to talk a lot about the core business of Lenovo, which really has been, as we've mentioned today, our ThinkPad, 25-year anniversary this year. It's going to be a great celebration inside Lenovo, and as we get through the year and we get closer and closer to the day, you'll see a lot more social and digital work that engages our customers, partners, analysts, et cetera, when we get close to that birthday. Customers just generally are a lot tougher on computers. We know they are. Whether you hang onto it between meetings from the corner of the Notebook, and that's why we have magnesium chassis inside the box or whether you're just dropping it or hypothetically doing anything else like that. We do a lot of robust testing on these products, and that's why it's the number one branded Notebook in the world. So Christian talks a lot about this, but I thought instead of having him talk, I might just do a little impromptu jump back stage and I'll show you exactly what I'm talking about. So follow me for a second. I'm going to jaunt this way. I know a lot of you would have seen, obviously, the front of house here, what we call the front of house. Lots of videos, et cetera, but I don't think many of you would have seen the back of house here, so I'm going to jump through the back here. Hang on one second. You'll see us when we get here. Okay, let's see what's going on back stage right now. You can see one of the team here in the back stage is obviously working on their keyboard. Fantastic, let me tell you, this is one of the key value props of this product, obviously still working, lots of coffee all over it, spill-proof keyboard, one of the key value propositions and why this is the number one laptop brand in the world. Congratulations there, well done for that. Obviously, we test these things. Height, distances, Mil-SPEC approved, once again, fantastic product, pick that up, lovely. Absolutely resistant to any height or drops, once again, in line with our Mil-SPEC. This is Charles, our producer and director back stage for the absolute event. You can see, once again, sand, coincidentally, in Manhattan, who would have thought a snow storm was occurring here, but you can throw sand. We test these things for all of the elements. I've obviously been pretty keen on our development solutions, having lived in Japan for 12 years. We had this originally designed in 1992 by (mumbles), he's still our chief development officer still today, fantastic, congratulations, a sand-enhanced notebook, he'd love that. All right, let's get back out front and on with the show. Watch the coffee. All right, how was that? Not too bad (laughs). It wasn't very impromptu at all, was it? Not at all a set up (giggles). How many people have events and have a bag of sand sitting on the floor right next to a Notebook? I don't know. All right, now it's time, obviously, to introduce our next speaker, ladies and gentlemen, and I hope I didn't steal his thunder, obviously, in my conversations just now that you saw back stage. He's one of my best friends in Lenovo and easily is a great representative of our legendary PC products and solutions that we're putting together for all of our customers right now, and having been an ex-Pat with Lenovo in New York really calls this his second home and is continually fighting with me over the fact that he believes New York has better sushi than Tokyo, let's welcome please, Christian Teismann, our SVP, Commercial Business Segment, and PC Smart Office. Christian Teismann, come on up mate. (audience applauds) >> So Rod thank you very much for this wonderful introduction. I'm not sure how much there is to add to what you have seen already back stage, but I think there is a 25-year of history I will touch a little bit on, but also a very big transformation. But first of all, welcome to New York. As Rod said, it's my second home, but it's also a very important place for the ThinkPad, and I will come back to this later. The ThinkPad is thee industry standard of business computing. It's an industry icon. We are celebrating 25 years this year like no other PC brand has done before. But this story today is not looking back only. It's a story looking forward about the future of PC, and we see a transformation from PCs to personalized computing. I am privileged to lead the commercial PC and Smart device business for Lenovo, but much more important beyond product, I also am responsible for customer experience. And this is what really matters on an ongoing basis. But allow me to stay a little bit longer with our iconic ThinkPad and history of the last 25 years. ThinkPad has always stand for two things, and it always will be. Highest quality in the industry and technology innovation leadership that matters. That matters for you and that matters for your end users. So, now let me step back a little bit in time. As Rod was showing you, as only Rod can do, reliability is a very important part of ThinkPad story. ThinkPads have been used everywhere and done everything. They have survived fires and extreme weather, and they keep surviving your end users. For 25 years, they have been built for real business. ThinkPad also has a legacy of first innovation. There are so many firsts over the last 25 years, we could spend an hour talking about them. But I just want to cover a couple of the most important milestones. First of all, the ThinkPad 1992 has been developed and invented in Japan on the base design of a Bento box. It was designed by the famous industrial designer, Richard Sapper. Did you also know that the ThinkPad was the first commercial Notebook flying into space? In '93, we traveled with the space shuttle the first time. For two decades, ThinkPads were on every single mission. Did you know that the ThinkPad Butterfly, the iconic ThinkPad that opens the keyboard to its size, is the first and only computer showcased in the permanent collection of the Museum of Modern Art, right here in New York City? Ten years later, in 2005, IBM passed the torch to Lenovo, and the story got even better. Over the last 12 years, we sold over 100 million ThinkPads, four times the amount IBM sold in the same time. Many customers were concerned at that time, but since then, the ThinkPad has remained the best business Notebook in the industry, with even better quality, but most important, we kept innovating. In 2012, we unveiled the X1 Carbon. It was the thinnest, lightest, and still most robust business PC in the world. Using advanced composited materials like a Formula One car, for super strengths, X1 Carbon has become our ThinkPad flagship since then. We've added an X1 Carbon Yoga, a 360-degree convertible. An X1 Carbon tablet, a detachable, and many new products to come in the future. Over the last few years, many new firsts have been focused on providing the best end-user experience. The first dual-screen mobile workstation. The first Windows business tablet, and the first business PC with OLED screen technology. History is important, but a massive transformation is on the way. Future success requires us to think beyond the box. Think beyond hardware, think beyond notebooks and desktops, and to think about the future of personalized computing. Now, why is this happening? Well, because the business world is rapidly changing. Looking back on history that YY gave, and the acceleration of innovation and how it changes our everyday life in business and in personal is driving a massive change also to our industry. Most important because you are changing faster than ever before. Human capital is your most important asset. In today's generation, they want to have freedom of choice. They want to have a product that is tailored to their specific needs, every single day, every single minute, when they use it. But also IT is changing. The Cloud, constant connectivity, 5G will change everything. Artificial intelligence is adding things to the capability of an infrastructure that we just are starting to imagine. Let me talk about the workforce first because it's the most important part of what drives this. The millennials will comprise more than half of the world's workforce in 2020, three years from now. Already, one out of three millennials is prioritizing mobile work environment over salary, and for nearly 60% of all new hires in the United States, technology is a very important factor for their job search in terms of the way they work and the way they are empowered. This new generation of new employees has grown up with PCs, with Smart phones, with tablets, with touch, for their personal use and for their occupation use. They want freedom. Second, the workplace is transforming. The video you see here in the background. This is our North America headquarters in Raleigh, where we have a brand new Smart workspace. We have transformed this to attract the new generation of workers. It has fewer traditional workspaces, much more meaning and collaborative spaces, and Lenovo, like many companies, is seeing workspaces getting smaller. An average workspace per employee has decreased by 30% over the last five years. Employees are increasingly mobile, but, if they come to the office, they want to collaborate with their colleagues. The way we collaborate and communicate is changing. Investment in new collaboration technology is exploding. The market of collaboration technology is exceeding the market of personal computing today. It will grow in the future. Conference rooms are being re-imagined from a ratio of 50 employees to one large conference room. Today, we are moving into scenarios of four employees to one conference room, and these are huddle rooms, pioneer spaces. Technology is everywhere. Video, mega-screens, audio, electronic whiteboards. Adaptive technologies are popping up and change the way we work. As YY said earlier, the pace of the revolution is astonishing. So personalized computing will transform the PC we all know. There's a couple of key factors that we are integrating in our next generations of PC as we go forward. The most important trends that we see. First of all, choose your own device. We talked about this new generation of workforce. Employees who are used to choosing their own device. We have to respond and offer devices that are tailored to each end user's needs without adding complexity to how we operate them. PC is a service. Corporations increasingly are looking for on-demand computing in data center as well as in personal computing. Customers want flexibility. A tailored management solution and a services portfolio that completes the lifecycle of the device. Agile IT, even more important, corporations want to run an infrastructure that is agile, instant respond to their end-customer needs, that is self provisioning, self diagnostic, and remote software repair. Artificial intelligence. Think about artificial intelligence for you personally as your personal assistant. A personal assistant which does understand you, your schedule, your travel, your next task, an extension of yourself. We believe the PC will be the center of this mobile device universe. Mobile device synergy. Each of you have two devices or more with you. They need to work together across different operating systems, across different platforms. We believe Lenovo is uniquely positioned as the only company who has a Smart phone business, a PC business, and an infrastructure business to really seamlessly integrate all of these devices for simplicity and for efficiency. Augmented reality. We believe augmented reality will drive significantly productivity improvements in commercial business. The core will be to understand industry-specific solutions. New processes, new business challenges, to improve things like customer service and sales. Security will remain the foundation for personalized computing. Without security, without trust in the device integrity, this will not happen. One of the most important trends, I believe, is that the PC will transform, is always connected, and always on, like a Smart phone. Regardless if it's open, if it's closed, if you carry it, or if you work with it, it always is capable to respond to you and to work with you. 5G is becoming a reality, and the data capacity that will be out there is by far exceeding today's traffic imagination. Finally, Smart Office, delivering flexible and collaborative work environments regardless on where the worker sits, fully integrated and leverages all the technologies we just talked before. These are the main challenges you and all of your CIO and CTO colleagues have to face today. A changing workforce and a new set of technologies that are transforming PC into personalized computing. Let me give you a real example of a challenge. DXC was just formed by merging CSE company and HP's Enterprise services for the largest independent services company in the world. DXC is now a 25 billion IT services leader with more than 170,000 employees. The most important capital. 6,000 clients and eight million managed devices. I'd like to welcome their CIO, who has one of the most challenging workforce transformation in front of him. Erich Windmuller, please give him a round of applause. (audience applauds). >> Thank you Christian. >> Thank you. >> It's my pleasure to be here, thank you. >> So first of all, let me congratulation you to this very special time. By forming a new multi-billion-dollar enterprise, this new venture. I think it has been so far fantastically received by analysts, by the press, by customers, and we are delighted to be one of your strategic partners, and clearly we are collaborating around workforce transformation between our two companies. But let me ask you a couple of more personal questions. So by bringing these two companies together with nearly 200,00 employees, what are the first actions you are taking to make this a success, and what are your biggest challenges? >> Well, first, again, let me thank you for inviting me and for DXC Technology to be a part of this very very special event with Lenovo, so thank you. As many of you might expect, it's been a bit of a challenge over the past several months. My goal was really very simple. It was to make sure that we brought two companies together, and they could operate as one. We need to make sure that could continue to support our clients. We certainly need to make sure we could continue to sell, our sellers could sell. That we could pay our employees, that we could hire people, we could do all the basic foundational things that you might expect a company would want to do, but we really focused on three simple areas. I called it the three Cs. Connectivity, communicate, and collaborate. So we wanted to make sure that we connected our legacy data centers so we could transfer information and communicate back and forth. We certainly wanted to be sure that our employees could communicate via WIFI, whatever locations they may or may not go to. We certainly wanted to, when we talk about communicate, we need to be sure that everyone of our employees could send and receive email as a DXC employee. And that we had a single-enterprise directory and people could communicate, gain access to calendars across each of the two legacy companies, and then collaborate was also key. And so we wanted to be sure, again, that people could communicate across each other, that our legacy employees on either side could get access to many of their legacy systems, and, again, we could collaborate together as a single corporation, so it was challenging, but very very, great opportunity for all of us. And, certainly, you might expect cyber and security was a very very important topic. My chairman challenged me that we had to be at least as good as we were before from a cyber perspective, and when you bring two large companies together like that there's clearly an opportunity in this disruptive world so we wanted to be sure that we had a very very strong cyber security posture, of which Lenovo has been very very helpful in our achieving that. >> Thank you, Erich. So what does DXC consider as their critical solutions and technology for workplace transformation, both internally as well as out on the market? >> So workplace transformation, and, again, I've heard a lot of the same kinds of words that I would espouse... It's all about making our employees productive. It's giving the right tools to do their jobs. I, personally, have been focused, and you know this because Lenovo has been a very very big part of this, in working with our, we call it our My Style Workplace, it's an offering team in developing a solution and driving as much functionality as possible down to the workstation. We want to be able, for me, to avoid and eliminate other ancillary costs, audio video costs, telecommunication cost. The platform that we have, the digitized workstation that Lenovo has provided us, has just got a tremendous amount of capability. We want to streamline those solutions, as well, on top of the modern server. The modern platform, as we call it, internally. I'd like to congratulate Kirk and your team that you guys have successfully... Your hardware has been certified on our modern platform, which is a significant accomplishment between our two companies and our partnership. It was really really foundational. Lenovo is a big part of our digital workstation transformation, and you'll continue to be, so it's very very important, and I want you to know that your tools and your products have done a significant job in helping us bring two large corporations together as one. >> Thank you, Erich. Last question, what is your view on device as a service and hardware utility model? >> This is the easy question, right? So who in the room doesn't like PC or device as a service? This is a tremendous opportunity, I think, for all of us. Our corporation, like many of you in the room, we're all driven by the concept of buying devices in an Opex versus a Capex type of a world and be able to pay as you go. I think this is something that all of us would like to procure, product services and products, if you will, personal products, in this type of a mode, so I am very very eager to work with Lenovo to be sure that we bring forth a very dynamic and constructive device as a service approach. So very eager to do that with Lenovo and bring that forward for DXC Technology. >> Erich, thank you very much. It's a great pleasure to work with you, today and going forward on all sides. I think with your new company and our lineup, I think we have great things to come. Thank you very much. >> My pleasure, great pleasure, thank you very much. >> So, what's next for Lenovo PC? We already have the most comprehensive commercial portfolio in the industry. We have put the end user in the core of our portfolio to finish and going forward. Ultra mobile users, like consultants, analysts, sales and service. Heavy compute users like engineers and designers. Industry users, increasingly more understanding. Industry-specific use cases like education, healthcare, or banking. So, there are a few exciting things we have to announce today. Obviously, we don't have that broad of an announcement like our colleagues from the data center side, but there is one thing that I have that actually... Thank you Rod... Looks like a Bento box, but it's not a ThinkPad. It's a first of it's kind. It's the world's smallest professional workstation. It has the power of a tower in the Bento box. It has the newest Intel core architecture, and it's designed for a wide range of heavy duty workload. Innovation continues, not only in the ThinkPad but also in the desktops and workstations. Second, you hear much about Smart Office and workspace transformation today. I'm excited to announce that we have made a strategic decision to expand our Think portfolio into Smart Office, and we will soon have solutions on the table in conference rooms, working with strategic partners like Intel and like Microsoft. We are focused on a set of devices and a software architecture that, as an IoT architecture, unifies the management of Smart Office. We want to move fast, so our target is that we will have our first product already later this year. More to come. And finally, what gets me most excited is the upcoming 25 anniversary in October. Actually, if you go to Japan, there are many ThinkPad lovers. Actually beyond lovers, enthusiasts, who are collectors. We've been consistently asked in blogs and forums about a special anniversary edition, so let me offer you a first glimpse what we will announce in October, of something we are bring to market later this year. For the anniversary, we will introduce a limited edition product. This will include throwback features from ThinkPad's history as well as the best and most powerful features of the ThinkPad today. But we are not just making incremental adjustments to the Think product line. We are rethinking ThinkPad of the future. Well, here is what I would call a concept card. Maybe a ThinkPad without a hinge. Maybe one you can fold. What do you think? (audience applauds) but this is more than just design or look and feel. It's a new set of advanced materials and new screen technologies. It's how you can speak to it or write on it or how it speaks to you. Always connected, always on, and can communicate on multiple inputs and outputs. It will anticipate your next meeting, your next travel, your next task. And when you put it all together, it's just another part of the story, which we call personalized computing. Thank you very much. (audience applauds) Thank you, sir. >> Good on ya, mate. All right, ladies and gentlemen. We are now at the conclusion of the day, for this session anyway. I'm going to talk a little bit more about our breakouts and our demo rooms next door. But how about the power with no tower, from Christian, huh? Big round of applause. (audience applauds) And what about the concept card, the ThinkPad? Pretty good, huh? I love that as well. I tell you, it was almost like Leonardo DiCaprio was up on stage at one stage. He put that big ThinkPad concept up, and everyone's phones went straight up and took a photo, the whole audience, so let's be very selective on how we distribute that. I'm sure it's already on Twitter. I'll check it out in a second. So once again, ThinkPad brand is a core part of the organization, and together both DCG and PCSD, what we call PCSD, which is our client side of the business and Smart device side of the business, are obviously very very linked in transforming Lenovo for the future. We want to also transform the industry, obviously, and transform the way that all of us do business. Lenovo, if you look at basically a summary of the day, we are highly committed to being a top three data center provider. That is really important for us. We are the largest and fastest growing supercomputing company in the world, and Kirk actually mentioned earlier on, committed to being number one by 2020. So Madhu who is in Frankfurt at the International Supercomputing Convention, if you're watching, congratulations, your targets have gone up. There's no doubt he's going to have a lot of work to do. We're obviously very very committed to disrupting the data center. That's obviously really important for us. As we mentioned, with both the brands, the ThinkSystem, and our ThinkAgile brands now, highly focused on disrupting and ensuring that we do things differently because different is better. Thank you to our customers, our partners, media, analysts, and of course, once again, all of our employees who have been on this journey with us over the last two years that's really culminating today in the launch of all of our new products and our profile and our portfolio. It's really thanks to all of you that once again on your feedback we've been able to get to this day. And now really our journey truly begins in ensuring we are disrupting and enduring that we are bringing more value to our customers without that legacy that Kirk mentioned earlier on is really an advantage for us as we really are that large startup from a company perspective. It's an exciting time to be part of Lenovo. It's an exciting time to be associated with Lenovo, and I hope very much all of you feel that way. So a big round of applause for today, thank you very much. (audience applauds) I need to remind all of you. I don't think I'm going to have too much trouble getting you out there, because I was just looking at Christian on the streaming solutions out in the room out the back there, and there's quite a nice bit of lunch out there as well for those of you who are hungry, so at least there's some good food out there, but I think in reality all of you should be getting up into the demo sessions with our segment general managers because that's really where the rubber hits the road. You've heard from YY, you've heard from Kirk, and you've heard from Christian. All of our general managers and our specialists in our product sets are going to be out there to obviously demonstrate our technology. As we said at the very beginning of this session, this is Transform, obviously the fashion change, hopefully you remember that. Transform, we've all gone through the transformation. It's part of our season of events globally, and our next event obviously is going to be in Tech World in Shanghai on the 20th of July. I hope very much for those of you who are going to attend have a great safe travel over there. We look forward to seeing you. Hope you've had a good morning, and get into the sessions next door so you get to understand the technology. Thank you very much, ladies and gentlemen. (upbeat innovative instrumental)