hi everybody this is dave vellante and this is day two of the cube's coverage of falcon 2022 we're live from the aria in las vegas everybody was out last night at the brooklyn bowl awesome band customers were dancing a lot of fun a lot of business going on here todd crosley's here he's to my left he's the senior director of cloud partnerships at crowdstrike and patrick mcdowell is the global technical lead for security partners at aws these guys have been partnering for a long time and we're going to dig into that partnership gents welcome to the cube thanks for having us thanks happy birthday you're very welcome todd talk about the the history of the relationship you guys are kind of bet business on each other but take us back sure thing so you know yesterday or the day before the company turned 11 years old or so i think george talked a lot about that the other day but uh we've actually been working closely with the amazon team for more than five years at this point and it's really evolved into a strategic collaboration really so uh from an executive on down into field alignment channel alignment uh the marketing team and and the build team where we we work with patrick and his extended team on different service integrations and different uh you know effectively positive security outcomes for the customers together i mean patrick if you think about the history of aws it's like you guys realized you had lightning in a bottle and then also realized wow and ecosystem play is the way to go and when you go to re invent it's palpable the the ecosystem innovation and the the flywheel effect that you've created but what's aws's perspective on the partnership with crowdstrike yeah it's essential to us and our customers right so we've been doing deep integrations probably since i think the first big one of crowdstrike was with guard duty amazon guard duty which is our uh easy to use threat detection service in aws one click on and their threat intelligence actually build is built directly into that service so an aws customer turns on guard duty it's automatically uh being uh enhanced and enriched with falcon x threat intelligence uh by default yeah so the cloud has become the first line of defense for a lot of the csos that i talk to you know everybody's cloud first cloud first and it's like okay that's awesome because cloud has really good security but then it's okay but if there's some differences i got there's a shared security model that i have to understand and and so when you guys talk to customers i know it's you know one of the leadership principles is you got to be focused you know insanely focused on customers crowdstrike very customer focused as well that's how you sort of created this company that is doing such innovative things what are customers telling you um about how they want you to work together what kind of feedback are you getting any other examples that you might have in the future yeah sure thing i'll go first so that well so they they depend on uh the like you said this shared security model but there's ample opportunity where vendors like crowdstrike and we've worked with patrick's team extensively to to pinpoint areas where we can provide so examples of that would be like on the in compute so like you recently released the graviton processors we've had a recent success with a customer where uh they've walked down their digital transformation journey they had they were looking to switch over to the graviton processors and we work closely with patrick's team to say okay we're going to certify our sensor uh on that particular area of compute so the customer continue to enjoy crowdstrike in our single-platform cloud-first native platform to say okay you've got skill sets on the on-prem environment your endpoint environment and good news you're switching to graviton no problem we still support that and we've been able to do that by working closely with each other inclusive not just the architects but the product teams work closely together as well yeah in this customer case um you know uh crowdstrike already supported for amazon linux but this customer a very large customer of ours need to move 10 000 ec2 instances to graviton on red hat linux not amazon linux so we got crowdstrike engineering our engineering our architects and we were able to get this customer red hat support for graviton within two months right in production ready to go and unblock this migration so i love the graviton example so what i always default to when somebody says oh we're cloud native i'd say are you running on graviton uh because because graviton is is is uh amazon's custom silicon that complements what you're doing with intel what you're doing with amd and they're all kinds of different instant types but it's based on an arm system and it's delivering new levels of performance and and an energy reduction if i can use that term um and and it's on a new curve yeah and so tremendous cost savings as well right i think out of the box with no change in the application you're getting 20 and that's and i i don't even think you're really driving it as hard as you can is my assessment but you gotta be considerate of these days so but that's an example of of how you're using from a technology standpoint cloud native and then and then sort of partnering does this you know graviton one graviton true graviton three i'm sure there'll be graviton 10 someday no doubt i think it's a good example of us working closely together paying attention to the customer's needs and making sure they don't they don't miss a step and and still stop the breach and pay attention to their security needs so you're part of the apn the amazon partner network yep what do you got to do to be like certified at an elite level there you probably have to go through a lot of hoops and maybe you could describe what you guys do there and how you work together to ensure that a company is adequate and more than adequate for its customers yeah sure thing so we we've participated in and we're certified in for example the security competency area which elevates us amongst other security isvs we're one of the few that have that um we have the well we participate in the well architected program which means that we've demonstrated a common set of criteria and customer references i mean that's a example um another area where we've participated quite a bit is in in the land of digital supply chains notably aws marketplace where we've uh latched on to many of their features and capabilities and participated in strategic programs whether it be um you know including the channel partner or taking a look at traditional private offers or taking a look at like the looping in the entire ecosystem to make sure the customer gets what they need so how do you integrate with things like control tower where where are the seams and how do you make that as seamless as possible for customers or maybe you can explain what control power yeah so uh they have multiple integrations for control tower for their cspm horizon uh it automatically onboards new aws accounts so uh you know as you're vending accounts you're giving to more devops teams horizon is automatically deploying and being protected those accounts so it has those guard rails in place for customers in a nice easy to use deployment model that you don't have to think about right so control tower in general is uh it kind of gives customers guard rails an easy button if you're new to aws i'm migrating hey aws can you just tell me the best practices how should i set up my accounts i need a landing zone i'm doing migration so it's really like a wizard for getting started in aws and crowdstrike integrates that with falcon discover and as well as falcon horizon and your age so yeah you guys really don't compete um you know maybe there's some overlap overlap is better than than gaps but you know when you when you take something like you know network firewalls and things like that amazon brings that to the table and then crowdstrike will build on top of that is that correct yeah i'll take this one uh so george has said it crowdstrike is not a network security company right however they have an integration using their threat intelligence on on our amazon network firewall so aws amazon and crouchstrike coming together actually have a joint offering for customers in a space that crowdstrike has never been in before itself so i think that's very exciting so yeah yeah all those integrations that pat's talking about we've actually cataloged the whole thing on a github page where we find that's where customers go they took a look at the integration and the supporting documentation we're like okay yeah this makes sense this these two companies augment each other well and it turns out to be a good outcome and you check you'll take telemetry data from the aws cloud you can take it from you know any your agents can run anywhere right and then you bring that in to the or i guess you sort of you index it i in my term in in the aws cloud enables that because you've got virtually unlimited scaling capability and that's kind of where you guys started yeah cloud native dogma that's right yeah it's a competitive differentiator for us uh i we think it's nice we're a market leader in our space and amazon's a market leader in their space and and we've got a lot of synergy together where do you guys last question where do you guys respectively want to see the the relationship go if you had to put on your binoculars or even telescope where do you want to see this go well i think we're i think we're all in the business of accelerating positive security outcomes for the customer and the what we're doing is we're spending a lot of time educating our respective fields and respective customers to know that these these integrations do in fact exist uh they absolutely complement each other we were in a meeting uh you know maybe six ten months ago we're in a cio said i didn't know that the two that the two products work so well together speaking about the control tower and horizon particular example had i known that i would have bought it uh a lot quicker this is this is a great outcome and the fact that you're working with amazon together is a bit of a relief so that was nice yeah i'm gonna echo what george kirk said in his keynote yesterday that like security's a journey xdr is a journey and i think the work that we did on the open cyber security schema framework which is an open source common uh security language that all vendors can use including aws and crowdstrike i think that is where we're going to see uh the the industry rally around in the upcoming year there's so much security data there's a common uh now language that all products and clouds could talk to each other that's right tell tell me more about it ocsf is that right where did that come from and yeah so um it's it's a it's an open source framework and you know both crowdstrike aws and other uh you know players in the industry are like there's a common problem none of our products talk together it's all about customer benefit right so what can we do to democratize security data make things talk well play together everyone wants to do more analytics on lots of data lakes so this is where it's all coming together yeah better collaboration in industry obviously is is needed and then the other piece is education you guys both sort of refer to that that's what i when i come to conferences like this and reinforce as well as a lot of it i mean i remember the first reinforcement was like explaining the shared responsibility model now of course a lot of people understood it but a lot of people didn't when you fast forward to 2022 and reinvent it was a lot more focused on how to really exploit the capabilities that aws has and then here at crowdstrike it's like okay helping practitioners really understand how to take advantage of the full platform and and that's to your point patrick the journey all right guys hey we got to go thanks so much you for having us all right keep it right there fast and furious day two from crowdstrike's falcon 2022. you're watching thecube [Music] you

(upbeat music) >> Welcome back to Boston, Massachusetts. We're here at the Seaport. You're watching theCUBE's coverage of Red Hat Summit 2022. My name is Dave Vellante and Paul Gillin is here. He's my cohost for the next day. We are going to dig in to the famous RHEL, Red Hat Enterprise Linux. Gunnar Hellekson is here, he's the Vice President and General Manager of Red Hat Enterprise Linux. Gunnar, welcome to theCUBE. Good to see you. >> Thanks for having me. Nice to be here, Dave, Paul. >> RHEL 9 is, wow, nine, Holy cow. It's been a lot of iterations. >> It's the highest version of RHEL we've ever shipped. >> And now we're talking edge. >> Yeah, that's right. >> And so, what's inside, tell us. to keep happy with a new RHEL release. to keep happy with a new RHEL release. The first is the hardware partners, right, because they rely on RHEL to light up all their delicious hardware that they're making, then you got application developers and the ISVs who rely on RHEL to be that kind of stable platform for innovation, and then you've got the operators, the people who are actually using the operating system itself and trying to keep it running every day. So we've got on the, I'll start with the hardware side, So we've got on the, I'll start with the hardware side, which is something, as you know, RHEL success, and I think you talked about this with Matt, just in a few sessions earlier that the success of RHEL is really, hinges on our partnerships with the hardware partners and in this case, we've got, let's see, in RHEL 9 we've got all the usual hardware suspects and we've added, just recently in January, we added support for ARM servers, as general ARM server class hardware. And so that's something customers have been asking for, delighted to be shipping that in RHEL 9. So now ARM is kind of a first-class citizen, right? Alongside x86, PowerZ and all the other usual suspects. And then of course, working with our favorite public cloud providers. So making sure that RHEL 9 is available at AWS and Azure and GCP and all our other cloud friends, right? >> Yeah, you mentioned ARM, we're seeing ARM in the enterprise. We're obviously seeing ARM at the edge. You guys have been working with ARM for a long time. You're working with Intel, you're working with NVIDIA, you've got some announcements this week. Gunnar, how do you keep Linux from becoming Franken OS with all these capabilities? >> This is a great question. First is, the most important thing is to be working closely with, I mean, the whole point of Linux and the reason why Linux works is because you have all these people working together to make the same thing, right? And so fighting that is a bad idea. Working together with everyone, leaning into that collaboration, that's an important part of making it work over time. The other one is having, just like in any good relationship, having healthy boundaries. And so making sure that we're clear about the things that we need to keep stable and the places where we're allowed to innovate and striking the right balance between those two things, that allows us to continue to ship one coherent operating system while still keeping literally thousands of platforms happy. >> So you're not trying to suck in all the full function, you're trying to accommodate that function that the ecosystem is going to develop? >> Yeah, that's right. So the idea is that what we strive for is consistency across all of the infrastructures and then allowing for kind of optimizations and we still let ourselves take advantage of whatever indigenous feature might appear on, such an ARM chip or thus in a such cloud platform. But really, we're trying to deliver a uniform platform experience to the application developers, right? Because they can't be having, like there can't be kind of one version of RHEL over here and another version of RHEL over here, the ecosystem wouldn't work. The whole point of Linux and the whole point of Red Hat Enterprise Linux is to be the same so that everything else can be different. >> And what incentives do you use to keep customers current? >> To keep customers current? Well so the best thing to do I found is to meet customers where they are. So a lot of people think we release RHEL 9 at the same time we have Red Hat Enterprise Linux 8, we have Red Hat Enterprise Linux 7, all these are running at the same time, and then we also have multiple minor release streams inside those. So at any given time, we're running, let's say, a dozen different versions of RHEL are being maintained and kept up-to-date, and we do this precisely to make sure that we're not force marching people into the new version and they have a Red Hat Enterprise Linux subscription, they should just be able to sit there and enjoy the minor version that they like. And we try and keep that going for as long as possible. >> Even if it's 10 years out of date? >> So, 10 years, interesting you chose that number because that's the end of life. >> That's the end of the life cycle. >> Right. And so 10 years is about, that's the natural life of a given major release, but again inside that you have several 10-year life cycles kind of cascading on each other, right? So nine is the start of the next 10-year cycle while we're still living inside the 10-year cycle of seven and eight. So lots of options for customers. >> How are you thinking about the edge? how do you define, let's not go to the definition, but at high level. (Gunnar laughing) Like I've been in a conference last week. It was Dell Tech World, I'll just say it. They were sort of the edge to them was the retail store. >> Yeah. >> Lowe's, okay, cool, I guess that's edgy, I guess, But I think space is the edge. (Gunnar chuckling) >> Right, right, right. >> Or a vehicle. How do you think about the edge? All the above or but the exciting stuff to me is that far edge, but I wonder if you can comment. >> Yeah, so there's all kinds of taxonomies out there for the edge. For me, I'm a simple country product manager at heart and so, I try to keep it simple, right? And the way I think about the edge is, here's a use case in which somebody needs a small operating system that deploys on probably a small piece of hardware, usually varying sizes, but it could be pretty small. That thing needs to be updated without any human touching it, right? And it needs to be reliably maintained without any human touching it. Usually in the edge cases, actually touching the hardware is a very expensive proposition. So we're trying to be as hands off as possible. >> No truck rolls. >> No truck rolls ever, right, exactly. (Dave chuckling) And then, now that I've got that stable base, I'm going to go take an application. I'll probably put it in a container for simplicity's sake and same thing, I want to be able to deploy that application. If something goes wrong, I need to build a roll back to a known good state and then I need to set of management tools that allow me to touch things, make sure that everything is healthy, make sure that the updates roll out correctly, maybe do some AB testing, things like that. So I think about that as, that's the, when we talk about the edge case for RHEL, that's the horizontal use case and then we can do specializations inside particular verticals or particular industries, but at bottom that's the use case we're talking about when we talk about the edge. >> And an assumption of connectivity at some point? >> Yeah. >> Right, you didn't have to always be on. >> Intermittent, latent, eventual connectivity. >> Eventual connectivity. (chuckles) That's right in some tech terms. >> Red Hat was originally a one trick pony. I mean, RHEL was it and now you've got all of these other extensions and different markets that you expanded into. What's your role in coordinating what all those different functions are doing? >> Yes, you look at all the innovations we've made, whether it's in storage, whether it's in OpenShift and elsewhere, RHEL remains the beating heart, right? It's the place where everything starts. And so a lot of what my team does is, yes, we're trying to make all the partners happy, we're also trying to make our internal partners happy, right? So the OpenShift folks need stuff out of RHEL, just like any other software vendor. And so I really think about RHEL is yes, we're a platform, yes, we're a product in our own right, but we're also a service organization for all the other parts of the portfolio. And the reason for that is we need to make sure all this stuff works together, right? Part of the whole reasoning behind the Red Hat Portfolio at large is that each of these pieces build on each other and compliment each other, right? I think that's an important part of the Red Hat mission, the RHEL mission. >> There's an article in the journal yesterday about how the tech industry was sort of pounding the drum on H-1B visas, there's a limit. I think it's been the same limit since 2005, 65,000 a year. We are facing, customers are facing, you guys, I'm sure as well, we are, real skills shortage, there's a lack of talent. How are you seeing companies deal with that? What are you advising them? What are you guys doing yourselves? >> Yeah, it's interesting, especially as everybody went through some flavor of digital transformation during the pandemic and now everybody's going through some, and kind of connected to that, everybody's making a move to the public cloud. They're making operating system choices when they're making those platform choices, right? And I think what's interesting is that, what they're coming to is, "Well, I have a Linux skills shortage and for a thousand reasons the market has not provided enough Linux admins." I mean, these are very lucrative positions, right? With command a lot of money, you would expect their supply would eventually catch up, but for whatever reason, it's not catching up. So I can't solve this by throwing bodies at it so I need to figure out a more efficient way of running my Linux operation. People are making a couple choices. The first is they're ensuring that they have consistency in their operating system choices, whether it's on premise or in the cloud, or even out on the edge, if I have to juggle three, four different operating systems, as I'm going through these three or four different infrastructures, that doesn't make any sense, 'cause the one thing is most precious to me is my Linux talent, right? And so I need to make sure that they're consistent, optimized and efficient. The other thing they're doing is tooling and automation and especially through tools like Ansible, right? Being able to take advantage of as much automation as possible and much consistency as possible so that they can make the most of the Linux talent that they do have. And so with Red Hat Enterprise Linux 9, in particular, you see us make a big investment in things like more automation tools for things like SAP and SQL server deployments, you'll see us make investments in things like basic stuff like the web console, right? We should now be able to go and point and click and go basic Linux administration tasks that lowers the barrier to entry and makes it easier to find people to actually administer the systems that you have. >> As you move out onto these new platforms, particularly on the edge, many of them will be much smaller, limited function. How do you make the decisions about what features you're going to keep or what you're going to keep in RHEL when you're running on a thermostat? >> Okay, so let me be clear, I don't want RHEL to run on a thermostat. (everybody laughing) >> I gave you advantage over it. >> I can't handle the margins on something like that, but at the end. >> You're running on, you're running on the GM. >> Yeah, no that's, right? And so the, so the choice at the, the most important thing we can do is give customers the tools that they need to make the choice that's appropriate for their deployment. I have learned over several years in this business that if I start choosing what content a customer decide wants on their operating system I will always guess it wrong, right? So my job is to make sure that I have a library of reliable, secure software options for them, that they can use as ingredients into their solution. And I give them tools that allow them to kind of curate the operating system that they need. So that's the tool like Image Builder, which we just announced, the image builder service lets a customer go in and point and click and kind of compose the edge operating system they need, hit a button and now they have an atomic image that they can go deploy out on the edge reliably, right? >> Gunnar can you clarify the cadence of releases? >> Oh yeah. >> You guys, the change that you made there. >> Yeah. >> Why that change occurred and what what's the standard today? >> Yeah, so back when we released RHEl 8, so we were just talking about hardware and you know, it's ARM and X86, all these different kinds of hardware, the hardware market is internally. I tell everybody the hardware market just got real weird, right? It's just got, the schedules are crazy. We got so many more entrance. Everything is kind of out of sync from where it used to be, it used to be there was a metronome, right? You mentioned Moore's law earlier. It was like a 18 month metronome. Everybody could kind of set their watch to. >> Right. >> So that's gone, and so now we have so much hardware that we need to reconcile. The only way for us to provide the kind of stability and consistency that customers were looking for was to set a set our own clock. So we said three years for every major release, six months for every minor release and that we will ship a new minor release every six months and a new major release every three years, whether we need it or not. And that has value all by itself. It means that customers can now plan ahead of time and know, okay, in 36 months, the next major release is going to come on. And now that's something I can plan my workload around, that something I can plan a data center migration around, things like that. So the consistency of this and it was a terrifying promise to make three years ago. I am now delighted to announce that we actually made good on it three years later, right? And plan two again, three years from now. >> Is it follow up, is it primarily the processor, optionality and diversity, or as I was talking to an architect, system architect the other day in his premise was that we're moving from a processor centric world to a connect centric world, not just the processor, but the memories, the IO, the controllers, the nics and it's just keeping that system in balance. Does that affect you or is it primarily the processor? >> Oh, it absolutely affects us, yeah. >> How so? >> Yeah, so the operating system is the thing that everyone relies on to hide all that stuff from everybody else, right? And so if we cannot offer that abstraction from all of these hardware choices that people need to make, then we're not doing our job. And so that means we have to encompass all the hardware configurations and all the hardware use cases that we can in order to make an application successful. So if people want to go disaggregate all of their components, we have to let 'em do that. If they want to have a kind of more traditional kind of boxed up OEM experience, they should be able to do that too. So yeah, this is what I mean is because it is RHEL responsibility and our duty to make sure that people are insulated from all this chaos underneath, that is a good chunk of the job, yeah. >> The hardware and the OS used to be inseparable right before (indistinct) Hence the importance of hardware. >> Yeah, that's right. >> I'm curious how your job changes, so you just, every 36 months you roll on a new release, which you did today, you announced a new release. You go back into the workplace two days, how is life different? >> Not at all, so the only constant is change, right? And to be honest, a major release, that's a big event for our release teams. That's a big event for our engineering teams. It's a big event for our product management teams, but all these folks have moved on and like we're now we're already planning. RHEL 9.1 and 9.2 and 8.7 and the rest of the releases. And so it's kind of like brief celebration and then right back to work. >> Okay, don't change so much. >> What can we look forward to? What's the future look like of RHEL, RHEL 10? >> Oh yeah, more bigger, stronger, faster, more optimized for those and such and you get, >> Longer lower, wider. >> Yeah, that's right, yeah, that's right, yeah. >> I am curious about CentOS Stream because there was some controversy around the end of life for CentOS and the move to CentOS Stream. >> Yeah. >> A lot of people including me are not really clear on what stream is and how it differs from CentOS, can you clarify that? >> Absolutely, so when Red Hat Enterprise Linux was first created, this was back in the days of Red Hat Linux, right? And because we couldn't balance the needs of the hobbyist market from the needs of the enterprise market, we split into Red Hat Enterprise Linux and Fedora, okay? So then for 15 years, yeah, about 15 years we had Fedora which is where we took all of our risks. That was kind of our early program where we started integrating new components, new open source projects and all the rest of it. And then eventually we would take that innovation and then feed it into the next version of Red Hat Enterprise Linux. The trick with that is that the Red Hat Enterprise Linux work that we did was largely internal to Red Hat and wasn't accessible to partners. And we've just spent a lot of time talking about how much we need to be collaborating with partners. They really had, a lot of them had to wait until like the beta came out before they actually knew what was going to be in the box, okay, well that was okay for a while but now that the market is the way that it is, things are moving so quickly. We need a better way to allow partners to work together with us further upstream from the actual product development. So that's why we created CentOS Stream. So CentOS Stream is the place where we kind of host the party and people can watch the next version of Red Hat Enterprise get developed in real time, partners can come in and help, customers can come in and help. And we've been really proud of the fact that Red Hat Enterprise Linux 9 is the first release that came completely out of CentOS Stream. Another way of putting that is that Red Hat Enterprise Linux 9 is the first version of RHEL that was actually built, 80, 90% of it was built completely in the open. >> Okay, so that's the new playground. >> Yeah, that's right. >> You took a lot of negative pushback when you made the announcement, is that basically because the CentOS users didn't understand what you were doing? >> No, I think the, the CentOS Linux, when we brought CentOS Linux on, this was one of the things that we wanted to do, is we wanted to create this space where we could start collaborating with people. Here's the lesson we learned. It is very difficult to collaborate when you are downstream of the product you're trying to improve because you've already shipped the product. And so once you're for collaborating downstream, any changes you make have to go all the way up the water slide and before they can head all the way back down. So this was the real pivot that we made was moving that partnership and that collaboration activity from the downstream of Red Hat Enterprise Linux to putting it right in the critical path of Red Hat Enterprise Linux development. >> Great, well, thank you for that Gunnar. Thanks for coming on theCUBE, it's great to, >> Yeah, my pleasure. >> See you and have a great day tomorrow. Thanks, and we look forward to seeing you tomorrow. We start at 9:00 AM. East Coast time. I think the keynotes, we will be here right after that to break that down, Paul Gillin and myself. This is day one for theCUBE's coverage of Red Hat Summit 2022 from Boston. We'll see you tomorrow, thanks for watching. (upbeat music)

(light, upbeat music) >> The last decade of cloud computing introduced and popularized an operating model that emphasized, simplified IT infrastructure provisioning and management. As well, it ushered in an era of consumption-based pricing and much more facile IT management, generally. Now these principles, they've bled into traditional data centers, which have increasingly become software led, programmable and DevOps centric. Now as we enter the post isolation era, it's ironic that not only are IT executives pursuing hybrid strategies, but everyone is talking about hybrid. Hybrid work, hybrid teams, hybrid events, hybrid meetings. The world has gone hybrid and the cloud is no exception. The cloud is expanding. Public cloud models are pushing to the data center and the edge on premises infrastructure is connecting to public clouds and managing data workflows and infrastructure across clouds and out to the edge. Now most leading technology executives that I speak with, they're essentially architecting their own clouds. And what I mean by that is they're envisioning and building an abstraction layer that hides the complexity of the underlying infrastructure and manages workloads intelligently. The end customer doesn't know or care where the data is, as long as it's secure, properly governed, and could be accessed quickly, all irrespective of physical location. Now for the most part, this vision, it can't be bought off the shelf. It needs to be built by placing bets on key technology partners and leveraging the so-called API economy. In other words, picking technology vendors that I trust in programmatically codifying and automating where possible my organizational edicts and business requirements into my own cloud to uniquely support my application portfolio in my modern business processes, which by the way, are rapidly evolving. Now, a key to enabling this vision is optionality. Meaning, not getting locked into one single technology platform, but rather having the confidence that as technology evolves, which it always does, I can focus my energies on adding value to my business through process innovation and human capital growth. Hello, everyone and welcome to this cube conversation and video exclusive on a major new industry development and partnership that's designed to maximize customer infrastructure options and move the new era of hybrid cloud computing forward. We have two industry leaders joining us today. Monica Kumar is the senior vice president of marketing and cloud go-to-market from Nutanix, and David Farrell is the senior vice president and general manager for global strategic alliances at Red Hat. Folks, welcome to theCUBE. Thanks for coming on. >> Good to be here today. >> Thank you so much. >> All right, so Red Hat is the poster child for open source success and it's executing on a strategy based on Red Hat Enterprise Linux, RHEL and OpenShift, the industry's leading container platform, to drive cloud-like experiences. Nutanix is a pioneering company and was the first to truly envision and successfully bring to market a cloud operating model to data center infrastructure. So you two, are getting together and forming a deeper, more substantive relationship. So Monica, tell us about the hard news. What's the scoop? >> Yeah, of course. So, first of all, I'm so excited to be here with David Farrell from Red Hat and for those of you who may not know this, I have a very deep personal connection with Red Hat from my previous role as well. I've been working with Red Hat since the early 2000s. So it gives me great pleasure to be here on behalf of Nutanix and with David from Red Hat, to be announcing a formal strategic partnership to deliver open hybrid multi-cloud solutions. Now let me explain to you what I mean by that. This partnership that we're announcing today is going to enable best-in-class solutions for building, scaling and managing containerized and virtualized cloud native applications in of course, hyper-converged infrastructure environments. So the collaboration is going to bring together these industry-leading technologies. Enabling and integrating Red Hat OpenShift and Red Hat Enterprise Linux, onto the Nutanix cloud platform, which includes, you know, our well-known Nutanix AOS and AHV hypervisor technologies. Now the question is, why are we doing all this? It's because of, as you said, Dave, the rapid evolution of hybrid cloud strategies and adoption of containers and Kubernetes in our customer base to develop, deploy and manage apps. And what we're hearing from our customers is that they want this integration between Red Hat Technologies and Nutanix Solutions. >> Okay. Thank you, Monica. So big news David, from Red Hat's perspective. Okay. So Red Hat, Nutanix, both leaders in their respective fields. David, what spurred the decision to partner from your standpoint? >> Yeah. And listen, let me echo Monica's comments as well. So we're really excited about the partnership with Nutanix. And we're excited because Nutanix is the leader in hybrid cloud infrastructure, but we're even more excited because this is what customers have been asking us to do. And that's really at the core of the decision. I think both teams, both companies have been listening to customers and we've got a groundswell of enterprise customers around the world that are asking us to come together. Bring our technologies together from a certification perspective, which Monica spoke about, right, is number one. So RHEL and OpenShift being certified on top of AHV, right. To provide the best-in-class service for enterprise grade applications, but there's more to it than just the certification. Like customers are looking for a world-class integrated support experience as well as they go into, into production. So we also have integrated support, right. So customers can contact Nutanix, they can contact Red Hat and having that seamless, that seamless experience is really, really critical and something that our customers have been asking us for. And then we'll continue to work from a roadmap perspective as well, from an engineering perspective, to make sure that our roadmaps are aligned and the customers have assurance over time and continuity over time so that they can make investments that they know are going to pay off and be safe investments and scalable investments over the long arc of their technology horizon, so. So those are, those are kind of our view of why this is good for customers and back to your points, David, it's about choice and optionality, right? And choice and consistency, and I think the verdict is in now, in the industry, that hybrid is the future, right? Everybody kind of agrees on that, right? In certain applications and certain workloads are going to run on-prem, others are going to run on the public cloud, and customers need choice to be able to decide what's the right destination for those workloads. And that's what Red Hat's all about, that's what RHEL's all about, what OpenShift is all about, is that it runs on any cloud infrastructure. Now it runs on Nutanix HCI. >> So I liked that two, one virtual throat to choke, or maybe better put, maybe one virtual hand to shake. So David staying with you, maybe you could talk about some of the other key terms of the partnership. Maybe focus on joint solutions that the customers can expect and I'm particularly interested in the engineering collaboration. I know there's a go-to-market component, but the engineering collaboration and technology innovation that we can expect. >> Yeah. So there's a few components to it, David. One is, obviously as I talked about roadmap, right. And that's, you know, our technology teams coming together, looking at the existing roadmaps for RHEL and OpenShift, but also adjacent capabilities that are coming from the Red Hat portfolio and capabilities that are coming from our ISV ecosystems and our respective ecosystems. This is a big win for our partners, as well, that have been asking us to work together. So we'll continue to keep the radar up about what some of those functionalities and capabilities ought to be. Whether we make them or somebody else makes them to pull into the, pull into the strategy, if you will. The second big principle around joint engineering is going to be around customer experience, right. So for example, we're starting off with the agnostic installer and by the way, this is coming Thursday, right? I think we're live on Thursday, the 29th, right? So this is in market, it is GA, it's available today, the 29th, right. And then we will move to the, to the UPI- so sorry, to the IPI installer in the second half of this year, right. To provide a more automated experience and then I think on the Nutanix side, Monica can, can talk to this, that Nutanix is building APIs to also automate installation, right? So first and foremost, we're all about getting the solution and getting the jointly engineered technologies working together and providing a superior customer experience for our customers that are deploying Red Hat on top of Nutanix. And that's going to be the guiding, the guiding driver, if you will, for how we work together. >> Yeah. And let me add to that. Like you said, we are, the engineering is already bearing fruit for our customers, right. As of today, when we announcing, we already have certified versions of Red Hat Linux with AHV, number one. Number two, as you said, the agnostic installer is available. We will make the automated installer available so any customer can deploy OpenShift using the Nutanix cloud platform in the very near future, right. Those are the two sort of the beginnings of the engineering and this is going to, this is a longterm partnership, so we will continue to evolve the different configurations that we, you know, that we test and that we validate as well as we go on. So I'm really excited about the fact that we are going to be offering customers fully tested, validated configurations to deploy. (cross talk) >> Go ahead >> David if I may just in there as well, I mean, so that's on the engineering side, right. But there'll also be an important thing, customers expect us to cooperate in to engage proactively as we face them, right. So that both the Red Hat, part of the agreement is that both the Red Hat and the Nutanix field teams, right the customer teams, will also be enabled, right. We'll do technical enablement for our teams, stand up proof of technologies, right. So that we're burning in some of the technology, if you will, and working out the kinks before the customer has to, right. And this is also a key value proposition is we're doing this work upstream, both in the engineering teams and in the field engagement teams so that customers can get time to market, if you will, and speed of solution deployment. >> Got it. So we'd love to talk about the sweet spot, the ideal customer profile at ICP. So is there a particular type of customer Monica, that stands to benefit most from the partnership and the certifications that you're committing to? >> Yeah. I mean, if you look at, you know, cloud native app development, that's happening across all types of segments, but particularly, you know, enterprise customers running, in all industries practically, running tier one applications or building custom applications in the cloud would be a great focus for this. Our customers who are mature in their cloud native journeys and want to build and run cloud native workloads at scale would be another type of audience. I mean, when you really think about the gamut of customers we serve jointly together, it's all the way from, you know, mid-sized customers who are, who may want a complete solution that's built for them, to enterprise customers and even globals accounts that are actually doing a lot of custom application development and then deploying things at scale. So really, I mean, anybody who's developing applications, anybody who's running workloads, you know, database workloads, applications that they're building, analytics workloads, I think for all of them. This is a very beneficial solution and I would say specifically from a Nutanix customer perspective, we've had a demand for, you know, the certification with AHV and RHEL for a long time. So that's something our customers are very much looking forward to. We have a large number of customers who already are deploying that configuration and now they know it's fully tested, fully supported, and there's an ongoing roadmap from both companies to support it. And then as far as OpenShift goes, we are super excited about the possibilities of providing that optionality to customers and really meeting them at every level of their journey to the cloud. >> So you got the product level certifications, that to me is all about trust and it's kind of table stakes, but if I have that, now I can, I can lean in. What other kind of value dimensions should we be thinking about with regard to this, this partnership? I mean, obviously, you know, cost savings, you know, speed, things like that, but maybe you could sort of add more color to that. >> Yeah. Well, absolutely, look. I mean, anytime there's joint there's integration, there is complexity that's taken out of deployment from the customer's hands and the vendors do the work upfront, that results in a lot of different benefits. Including productivity benefits, speed to market benefits, total cost of ownership benefits, as you said. So we expect that the fact that the two companies are now going to do all this work upfront for our customers, they'll be able to deploy and do things that we're doing, you know, much faster than before, right? So that's, you know, definitely we believe, and then also joined support. I think David mentioned that, the fact that we are offering joint support as well to our customers we'll be problem solving together. So the seamless support experience will provide faster resolution for our joint customers. >> Great. David, I wonder if you could kind of share your view of you know, thinking about the Nutanix cloud platform, what makes it well suited for supporting OpenShift and cloud native workloads? >> Well, I think the, look first off, they're the leader, right. They bring the most trusted and tried HCI environment in the industry to bear for customers, right. And they deliver on the promises that Monica just went through, right, around simplicity, around ease of use, around scalability, around optionality, right. And they take that complexity away and that's what customers I think are telling both Red Hat and Nutanix, and really everybody for that matter, right. Is that they want to focus on the business outcomes, on the business value, on the applications, that differentiate them. And Nutanix really takes away a lot of that complexity for the customer at the infrastructure level, right. And then RHEL, and OpenShift and Red Hat do that as well, both at the infrastructure level and at the application level, right. So when it comes to simplicity, and when it comes to choice, but consistency, both Nutanix and Red Hat have that at the core of how we build and how we engineer products that we take to market to remove that complexity so the customers can move quickly, more cost-effectively, and have that optionality that they're after. >> Yeah and David, if I may add to that, and thank you again for saying the things you said, that's exactly why our customers choose us. One of the key factors is our distributed architecture as well, because of the way it's architected, the Nutanix cloud platform delivers an environment that's highly scalable and resilient, and it's well suited for enterprise deployments of Red Hat, OpenShift at scale. The platform also includes, you know, fully integrated unified storage, which addresses many of the challenging problems faced by operators routinely in configuring and managing storage for stateful containers, for example. So there's a lot of goodness there and the combination of Red Hat, both you know, RHEL and OpenShift, any 10x platform, I believe, offers really unparalleled value to our customers in terms of the technology we bring and the integration we bring to our customers. >> Okay, great. Last question, David, maybe you first, and then Monica, you can bring us home. Where do you guys want to see this partnership going? >> We want to see it going where, customers are getting the most value of course, right. And we would like to see obviously adoption, right. So, anytime two leaders like ourselves come together, it's all about delivering for the customer. We've got a long list of customers that have been asking us, as Monica said to do this, and it's overwhelming, right. So we're responding to that. We've got a pipeline of, of customers that we're already beginning to engage on. And so we'll measure our progress based upon adoption, right, and how customers adopt the solution, the shared solution as we go forward. How they're feeding back to us, the value that they're getting, and also encouraging them to engage with us around the roadmap and where we take the solution, right. So I think those are ways that, you know, we'll be focused on adoption and satisfaction around it across the marketplace and the degree of interaction and input we get from customers with respect to the roadmap. And Monica, how do you feel about it? >> Yeah. What's success look like Monica? >> Yeah, look, we all know that technology is a means to an end, right? And the end is solving customer problems, as David said. For us, success will be when we have many, many, many, joined happy customers that are getting benefit from our platform. To me, this is just the beginning of our relationship to help customers. The best is yet to come. I'm super excited, as I said, for many reasons, but specifically, because we know there's a huge demand out there for this integrated solution between Red Hat and Nutanix and we'll start delivering it to our customers. So we've been, we'll be working very closely with our customers to see how that option goes, and we want to delight them with this, with our joint solution. That's our goal. >> Thank you. Well, David, you kind of alluded to it. Customers have been looking forward to this for quiet some time, and number of us have been thinking about this happening and to me, the key, is you're actually putting some real muscle behind it as seen in the engineering resources. And you got to have that type of commitment before you really go forward, otherwise, it's just kind of a yeah a nice press release, nice party deal, this isn't. So congratulations on figuring this out. Good luck. And we'll be really excited to watch your progress. Appreciate you guys coming to theCUBE. Okay. And thank you for watching everybody. This is Dave Vellante for theCube. We'll see you next time. (light, upbeat music)

>> Narrator: From around the globe, it's the CUBE with digital coverage of IBM Think 2021. Brought to you by IBM. >> Welcome to the CUBE's digital coverage of IBM Think 2021. I'm Lisa Martin. Next Joining me is Leo LaBranche, director of Global Strategic Initiative at AWS. Leo, welcome to the CUBE. >> Thank you, happy to be here. So talk to me about AWS and IBM, what's going on there with the relationship? What are some of the things that are significant for both partners? >> Yeah, absolutely. You know, IBM's relationship really started with us around 2016, I would say it was a little bit more opportunistic at the time. We knew there was an opportunity to go to market together, we knew there were some great things we could do for our customers, but we hadn't quite cracked crack the code, so to speak, on, on when and where and why we are going to partner at that point. We fast forward into this sort of 2017 to 2019 timeframe. And we became, I'd say a lot more intentional about how we're going to go to market, where we are going to invest areas such as SAP, etc, we're an early one to be identified. And I'd say the ball really started rolling sort of in the 2018 timeframe, combination of a number of different things occurred, you know, the acquisition of Red Hat, obviously, you know, Red Hat is a very significant was a very significant partner with AWS prior to the acquisition. And so, post acquisition, you combine that with ramping up a workforce focused on AWS, combined with a number of different competencies that AWS or IBM really invested in, around migration as an example or SAP. And, you know, the ball really starting to roll quickly. After that, you know, I'd say the last 18 months or so, we both invested significant in the relationship, expansion around the world really, and joint resources and capability to make sure that we're going to market sort of partnered intentional way rather than sort of an opportunistic. >> Oh, go ahead. >> You know, as I was saying, so far, that's absolutely been paying off. In that we are seeing a number of wins all around the world across a broad set of industries, as well as a broad set of technologies. And so, you know, the strength of IBM consulting services in particular, but also their software, combined with the strength of our platform is really proven to be successful for our customers. >> So you said started in 2016, really started taking shape in the last couple of years, that Red Hat acquisition, talk to me about what's in this for customers, I imagine customers that are that are expanding or needing to move workloads into the cloud, or maybe more of a hybrid cloud approach. What are some of the big benefits that customers are going to gain from this partnership? >> Yeah, absolutely. In reality is, IBM has a long history and relationship with their customers, right? They run and manage many of the workloads. They really know the customer's business incredibly well. They have domain expertise and industry, and then the technology expertise from a professional services perspective to really help navigate the waters and determine what the right strategy is around moving to the cloud, right? You combine that with the the depth and breadth of the skills and capabilities and services that AWS provides. And the fact that IBM has invested significantly in making sure that their professional services are deeply steeped in our technology and capabilities. It's a great combination of really understanding the customer's needs plus the art of the possible, honestly, when it comes to technology that we provide, really can accelerate both and mitigate risk when it comes to moving to the cloud. >> That risk mitigation is key. So you guys recently AWS recently launched, I'm going to get this right Red Hat OpenShift service on AWS or ROSA, can you talk to me a little bit about ROSA? >> Yeah, so Red Hat, obviously, very well known and ultimately adopted within the enterprise. We have built a fully managed service around Red Hat on AWS. What that means is, you'll have access to essentially the capabilities that Red Hat would normally provide, but all containerized within a solution that allows you to have access to AWS services, right. The other benefit here is normally you would get sort of a multi vendor for invoicing and cost model, right. Where you get billed from Red Hat, get billed from Amazon, you get billed from IBM. In this case, it's essentially a holistic service in which there's a single sort of invoicing in vendor relationship, right. So the combination of capabilities that normally would be provided via Red Hat combined with access to cloud and all the interfaces and capabilities around OpenShift, etc, that you could do there. Plus a more interesting and beneficial commercial model. >> So streamline pricing models streamlined operating model for customers, talk to me about some of the customers that have adopted it. Give me a look into some of the industries where you've seen good adoption and some of the results that they're gaining so far. >> Yeah, absolutely. So no big surprise, right? The existing customer base that currently uses Red Hat Linux, and some of the options and OpenShift etc, that are out today are then the right customers to potentially look at this when it comes to moving forward. You know, industry wise, certainly their areas in financial services, banking, insurance, et cetera. We're also seeing some around manufacturing. A little so but some in media and Telco as well. So it's a broad swath, I mean, the applicability of Red Hat and OpenShift is somewhat universal, but the early customer basis has largely been sort of in those three areas. >> What I'm curious what the key target audiences are these Red Hat customers, are these AWS customers, IBM, all three? >> If there are existing customers that are currently using Linux or using Red Hat, if there are someone who a customer who currently has a relationship with either AWS or IBM, there's an opportunity to essentially look at it from any of the angles, if you're already on cloud, or you've already experienced AWS in some shape or form. There's an opportunity to potentially to leverage ROSA to further expand that capability and also have some more flexibility so to speak. If you're already using IBM as a professional services provider and advisory firm, then they absolutely have the expertise and understanding of this product set to help you understand how can you best leverage, right, so you can kind of look at it from either of the dimensions. If it's a customer, that's completely new to all of us, then we're happy to talk to you. But it's something that will definitely take a little bit more explanation to understand so why he should or shouldn't consider us with this multi cloud OpenShift type solution. >> Talk me from your opinion about why IBM for SAP on AWS, why should customers go that direction for their projects? >> Yeah, you know, SAP has or sorry SAP, IBM has over 40 years of experience and implementing SAP for their customers, right. And they've done I think it's over 6000 SAP migrations, 40,000 global SAP consultants around the world, right. So from a capability and depth of experience. There's a lot of nuance to doing an SAP implementation, particularly one that's then moving from on-prem to the cloud. You know, they got the experience, right. Beyond that they have industry specific solutions that are pre-configured. So I think there's 12, industry specific industry solutions pre-configured for SAP, it allows, you know, roughly 20 to 30% acceleration when it comes to implementation of platform. So combination of just depth of experience, depth of capability, combined with these solutions to accelerate, are all key reasons for sure. >> The acceleration you bring up, sorry, is interesting, because we saw in the last year, the acceleration of digital transformation projects and businesses needing to pivot again and again and again, to figure out how to survive and be successful in this very dynamic market in which we're still living. Anything industry wise specific that you saw that was really driving the acceleration and the use cases for ROSA in the last year? >> Yeah, so SAP, we saw an interesting trend as a result of what everyone's been experiencing in the last year with COVID and etc. You know, many organizations postponed large URP implementations and large SAP migrations, because of what you just said, right? They weren't entirely sure what would need to be done in order to survive either a competitive threats or more just the global threats that are occurring. So what we saw was, really none of none of the transformations went away. They were put on hold for a period of time, let's say six to nine months ago, maybe even a year ago almost. In lieu of, I would say more top line revenue generating or innovative type solutions that maybe were focused specifically at, you know, the changing dynamic with COVID. Since then we've seen a combination of those new ideas, right. Combination of the new innovation around healthcare, of course, but also public sector and, you know, a lot around employment and the engagement there. We said a combination of those new ideas and new innovations with the original goal of optimizing, transforming SAP, URP, etc. And then combining the two to allow access to the data, right, that sits inside the SAP implementation the SAP, combine the data then SAP with all these new innovations, and then ultimately use that to sort of capitalize on what the future business is going to be. That's been huge. It's been very interesting to see some organizations completely change their business model over the course of the last 12 months, in ways they probably had never intended to before, right. But it's absolutely become an opportunity and a time of a lot of challenges. >> Agree there are silver linings, and we've seen a lot of those interesting opportunities to your point that businesses probably would never have come up with. Had there not been a forcing function like we've been living with. Leo, thank you for joining me today talking to me about what's going on with IBM and AWS. We'll be excited to follow what happens with ROSA as it continues to roll out and we appreciate you joining us on the program. >> Absolutely. Thank you for your time for. >> Palo Alto branch, I'm Lisa Martin. You're watching the CUBE digital coverage of IBM Think 2021. (gentle music) (bright music)

(upbeat music) >> Narrator: From around the globe. It's theCUBE. With digital coverage of IBM Think 2021, brought to you by IBM. >> Welcome to theCUBE's digital coverage of IBM Think 2021. I'm Lisa Martin. Next joining me is Leo LaBranche, Director of global strategic initiatives at AWS. Leo, welcome to theCUBE. >> Thank you, happy to be here. >> So talk to me about AWS and IBM what's going on there with their relationship. What are some of the things that are significant for both partners? >> Yeah, absolutely, IBM's relationship really started with us around 2016. I would say it was a little bit more opportunistic at the time. We knew there was an opportunity to go to market together. We knew there were some great things we could do for our customers. But we hadn't quite cracked to crack the code so to speak on when and where and why we were going to partner at that point. You fast forward into this sort of 2017 to 2019 timeframe. And we became, I'd say a lot more intentional about how we were going to go to market, where we were going to invest areas such as SAP, et cetera. Were an early one that we identified and I'd say the ball really started rolling sort of in the 2018 timeframe. A combination of a number of different things occurred, you know, the acquisition of Red Hat, obviously, you know Red Hat is a very significant, was a very significant partner with AWS, prior to the acquisition. And so post acquisition, you combine that with ramping up a workforce, focused on AWS, combined with a number of different competencies that IBM really invested in, around migration as an example, or SAP. And, you know, the, the ball really starting to roll quickly after that, you know, I'd say the last 18 months or so we both invested significantly in the relationship expansion around the world really, and joined resources and capability to make sure that we're going to markets sort of partnered intentional way rather than sort of an opportunistic. >> Oh, go ahead. >> So I'd say so far, that's absolutely been paying off in that we are seeing a number of wins all around the world across a broad set of industries, as well as the broad set of technologies. So, you know, the strength of, of IBM's consulting services in particular, but also their software combined with the strength of our platform has really proven to be successful for our customers. >> So you said started in 2016, really started taking shape in the last couple of years, that Red Hat acquisition. Talk to me about what's in this for customers. I imagine customers that are expanding or needing to move workloads into the cloud, or maybe more of a hybrid cloud approach. What are some of the big benefits that customers are going to gain from this partnership? >> Yeah, absolutely. And the reality is IBM has a long and storied history and relationship with their customers, right? They run and manage many of the workloads. They really know the customer's business incredibly well. They have domain expertise and industry and then the technology expertise from a professional services perspective to really help navigate the waters and determine what the right strategy is around moving to the cloud, right? You combine that with the depth and breadth of the skills and capabilities and services that AWS provides. And the fact that IBM has invested significantly in making sure their professional services are deeply steeped in our technology and capabilities. It's a great combination of really understanding the customer's needs. Plus the art of the possible, honestly, when it comes to technology that we provide, really can accelerate both and mitigate risk when it comes to moving to the cloud. >> That risk mitigation is key. So you guys recently, AWS recently launched if I'm going to get this right. Red Hat OpenShift Service on AWS or ROSA. Can you talk to me a little bit about ROSA? >> Yeah so, Red Hat obviously very well known, and ultimately adopted within the enterprise. We have built a fully managed service around Red Hat on AWS. What that means is you'll have access to essentially the capabilities that that Red Hat would normally provide but all containerized within a solution that allows you to get access to AWS services, right. The other benefit here is normally you would get sort of a multi-vendor with invoicing and cost model, right? Where you get billed from Red Hat, get billed from Amazon. You get billed from IBM. In this case, it's essentially a wholistic service in which there's a single sort of invoicing and vendor relationship, right. So it's combination of capabilities that normally would be provided via Red Hat combined with access to cloud and all the interfaces and capabilities around OpenShift, et cetera, that you could do there. Plus a more interesting and beneficial commercial model. >> So streamlined pricing models, streamlined operating model for customers. Talk to me about some of the customers that have adopted it. Give me a look into some of the industries where you've seen good adoption and some of the results that they're gaining so far. (loud engine buzz in background) >> Yeah one second, sorry, it's like insanely loud. >> Man's voice: No worries, let's just take a pause. We can just, so yeah we'll go right as if Lisa just finished the question. So just take a breather as long as it needs. And then whenever you're ready whenever that's died down, just like give it a beat give it like a second and then just right as if she just asked the question. >> Answer the question then. >> Man's voice: Yeah. >> All right. >> Man's voice: I'll cut it out as if nothing happened. >> Give me two minutes. So actually on your question, I know the answer from things that I've done recently, but was there an official answer Theresa I'm supposed to give on this? >> Teresa: No, not really I mean, I think what you're talking about on Red Hat specifically >> Right, ROSA's early adoption. >> Teresa: Yeah, no I mean, there there's a product page and stuff, it's really about just the ability of customers to be able to run those solutions on the AWS console it is really the, the gist of it. And that it's fully integrated. >> I'm not sure some of the examples I know of are publicly refrenceable. >> Lisa: That's okay, you could just say, you know, customer in XYZ industry, that's totally fair. I'm not so worried about that. >> Teresa: Yeah I don't know if so ROSA. Lisa, ROSA was just launched in March and so it's brand new so I don't have the customer stories yet. So that's why I don't have them listed for Leo. >> Lisa: Oh, that's fine, that's totally fine. Maybe we can talk about, you know, since the launch was just around the corner, some of the things that have been going on, the momentum interest from customers, questions conversations can be more like that as you're launching the GTM. >> Yeah, and there's certainly a couple of industries that they have targeted I'm going to go with that as well as a couple of customers, like, >> Teresa: Thank you, Lisa. >> Lisa: Sure, of course. >> I think they went around the corner. (Lisa laughs) >> Lisa: All right, let me know and I'll re-ask the question. I'll tweak it a little bit. >> Yeah, go ahead. >> Lisa: All right, so talk to me about, ROSA just launched very recently. Talk to me about customer interest, adoption. Maybe some of the industries in particular if you're seeing any industry that's kind of really leading edge here and taking advantage of this new managed service. >> Yeah, absolutely, so no big surprise, right? The the existing customer base that currently uses Red Hat Linux, and some of the options in OpenShift, et cetera that are out today are then the right customers to potentially look at this when it comes to moving forward. You know, industry-wise certainly there are areas within financial services, banking, insurance, et cetera. We're also seeing some around manufacturing, a little less so, but some in media and telco as well. So it's, it's a broad swath of any applicability of Red Hat and OpenShift is somewhat universal but the early customer bases has largely been sort of in those three areas. >> What I'm curious what are the key target audiences are these, Red Hat customers are these AWS customers. IBM all three? >> Yeah. I mean, there isn't necessarily the perfect customer that we're necessarily looking for, as much as if there are existing customers that are currently using Linux or using Red Hat. If there are someone who, a customer who currently has a relationship with either AWS or IBM there's an opportunity to essentially look at it from any of the angles. If you're already on cloud or you've already experienced AWS in some shape or form there's an opportunity to potentially to leverage ROSA, to further expand that capability and also have some more flexibility so to speak. If you're already using IBM as a professional services provider and advisory firm then they absolutely have the expertise and understanding of this product set to help you understand how it could be best leveraged, right. So you can kind of look at it from either of the dimensions. If it's a customer that's completely new to all of us then we're happy to talk to you. But it's something that will definitely take a little bit more explanation to understand as to why you should, or shouldn't consider us with this multicloud OpenShift type solution. >> Got it, let's shift gears a bit and talk about SAP. When we think about customers looking to migrate SAP workloads to the cloud, looking at the right cloud providers those are really big, challenging strategic decisions for leadership to make. Talk to me about why when you're in those conversations AWS is the best choice. >> Absolutely, I mean, really AWS, let's say with SAP and with with many of our services is really looking to give all the options that you could conceivably need or want in order to engage in cloud migration and transformation. press AP specifically, right? There are a number of different options, right. You could go for a lift and shift or upgrade from many databases to a suite on SAP HANA could potentially look to modernize and leverage cloud services, post migration as well. And then the sort of final pinnacle of that is a complete transformation to S four or S four HANA as far as why AWS specifically beyond just choice, you know, from a cost perspective, it's pretty compelling. And we have some pretty compelling business and use cases around ultimately the cost savings that come when you move from an on-premise SAP implementation to cloud beyond that, usually the cloud migration itself is an opportunity to condense or reduce the number of instances you're paying for, from an SAP perspective, which then further reduces cost. From a reliability perspective, you know, AWS is the world's most secure, extensive reliable cloud infrastructure, right? Any of the instances that you put on AWS are instantly I'd say fairly instantly provisioned in such a way that they are provided across multiple what we call Availability Zones which is giving you sort of the resiliency and the stability that really no other cloud provider can provide. On the security front, I mean this is really a unique position in that AWS plus IBM and the security, the depth in security services you know, numerous years of professional services work that IBM has done in the security space. You know, they have roughly 8,000 or so cybersecurity experts within IBM. So the combination of their expertise in security plus the security of our platform is a great combination. I'd say the final one is around performance, right? AWS offers many more cloud native options around certified SAP instances, specifically all the way from 256 gigabyte option all the way up to 24 terabytes which is the largest of its kind. And as those who have implemented SAP know it's a very resource intensive. So having the ability to do that from a performance perspective is a key differentiator for sure. >> Talk to me from your opinion about why IBM for SAP on AWS, why should customers go that direction for their projects? >> Yeah, you know, IBM has over 40 years of experience in implementing SAP for their customers right. And they've done, I think it's over 6,000 SAP migrations, 40,000 global SAP consultants around the world. Right, so from a capability and depth of experience, you know, there's a lot of nuance to doing it. SAP implementation, particularly one that's then moving from on-prem to the cloud. You know, they've got the experience right. Beyond that they have industry specific solutions that are pre-configured. So I think that there's 12 industry specific solutions pre-configured for SAP, it allows, you know roughly 20 to 30% acceleration when it comes to implementation of platforms. So combination of just depth of experience, depth of capability combined with these solutions to accelerate are all key reasons for sure. >> The acceleration you bring up, sorry is interesting because we saw in the last year the acceleration of digital transformation projects and businesses needing to pivot again and again, and again to figure out how to survive and be successful in this very dynamic market in which we're still living. Anything industry-wise specific that you saw that was really driving the acceleration and the use cases for ROSA in the last year? >> Yeah so, you know SAP, we saw an interesting trend as a result of what's everyone's been experiencing in the last year with COVID, et cetera. You know, many organizations postponed large ERP implementations and large SAP migrations, because of what you just said, right. They weren't entirely sure what would need to be done in order to survive either a competitive threats or more just the global threats that were occurring. So what we saw was, really none of the transformations went away. They, were put on hold for a period of time let's say six to nine months ago maybe even a year ago almost. In lieu of I would say more top line revenue generating or innovative type solutions that maybe were focused specifically at, you know, the changing dynamic with COVID. Since then we've seen a combination of those new ideas, right? Combination of the new innovation around healthcare of course, but also public sector and, you know a lot around employment and then engagement there. We've seen a combination of those new ideas and new innovations with the original goal of optimizing transforming SAP ERP, et cetera. And then combining the two to allow access to the data, that sits inside the SAP implementation the SAP. Combine the data in SAP with all these new innovations and then ultimately use that to sort of capitalize on what the future businesses are going to be. That's been huge, it's been very interesting to see some organizations completely change their business model over the course of the last 12 months. In ways they probably had never intended to before right? But it's, absolutely become an opportunity in a time of a lot of challenges. >> Agreed there are silver linings and we've seen a lot of those interesting opportunities to your point that businesses probably would never have come up with had there not been a forcing function like we've been living with. Leo thank you for joining me today. Talking to me about what's going on with IBM and AWS. We'll be excited to follow what happens with ROSA as it continues to roll out. And we appreciate you joining us on the program. >> Absolutely thank you for your time. >> For Leo Labrunch I'm Lisa Martin. You're watching theCUBE's digital coverage of IBM think 2021. (upbeat music)

>> Narrator: From around the globe, It's theCUBE. With digital coverage of IBM Think 2021, brought to you by IBM. >> Welcome to theCUBE's digital coverage of IBM Think 2021. I'm Lisa Martin. Next joining me is Leo LaBranche, Director of global strategic initiatives at AWS. Leo, welcome to theCUBE. >> Thank you, happy to be here. >> So talk to me about AWS and IBM what's going on there with their relationship. What are some of the things that are significant for both partners? >> Yeah, absolutely, IBM's relationship really started with us around 2016. I would say it was a little bit more opportunistic at the time. We knew there was an opportunity to go to market together. We knew there were some great things we could do for our customers. But we hadn't quite cracked to crack the code so to speak on when and where and why we were going to partner at that point. You fast forward into this sort of 2017 to 2019 timeframe. And we became, I'd say a lot more intentional about how we were going to go to market, where we were going to invest areas such as SAP, et cetera. Were an early one that we identified and I'd say the ball really started rolling sort of in the 2018 timeframe. A combination of a number of different things occurred, you know, the acquisition of Red Hat, obviously, you know Red Hat is a very significant, was a very significant partner with AWS, prior to the acquisition. And so post acquisition, you combine that with ramping up a workforce, focused on AWS, combined with a number of different competencies that IBM really invested in, around migration as an example, or SAP. And, you know, the, the ball really starting to roll quickly after that, you know, I'd say the last 18 months or so we both invested significantly in the relationship expansion around the world really, and joined resources and capability to make sure that we're going to markets sort of partnered intentional way rather than sort of an opportunistic. >> Oh, go ahead. >> So I'd say so far, that's absolutely been paying off in that we are seeing a number of wins all around the world across a broad set of industries, as well as the broad set of technologies. So, you know, the strength of, of IBM's consulting services in particular, but also their software combined with the strength of our platform has really proven to be successful for our customers. >> So you said started in 2016, really started taking shape in the last couple of years, that Red Hat acquisition. Talk to me about what's in this for customers. I imagine customers that are expanding or needing to move workloads into the cloud, or maybe more of a hybrid cloud approach. What are some of the big benefits that customers are going to gain from this partnership? >> Yeah, absolutely. And the reality is IBM has a long and storied history and relationship with their customers, right? They run and manage many of the workloads. They really know the customer's business incredibly well. They have domain expertise and industry and then the technology expertise from a professional services perspective to really help navigate the waters and determine what the right strategy is around moving to the cloud, right? You combine that with the depth and breadth of the skills and capabilities and services that AWS provides. And the fact that IBM has invested significantly in making sure their professional services are deeply steeped in our technology and capabilities. It's a great combination of really understanding the customer's needs. Plus the art of the possible, honestly, when it comes to technology that we provide, really can accelerate both and mitigate risk when it comes to moving to the cloud. >> That risk mitigation is key. So you guys recently, AWS recently launched if I'm going to get this right. Red Hat OpenShift Service on AWS or ROSA. Can you talk to me a little bit about ROSA? >> Yeah so, Red Hat obviously very well known, and ultimately adopted within the enterprise. We have built a fully managed service around Red Hat on AWS. What that means is you'll have access to essentially the capabilities that that Red Hat would normally provide but all containerized within a solution that allows you to get access to AWS services, right. The other benefit here is normally you would get sort of a multi-vendor with invoicing and cost model, right? Where you get billed from Red Hat, get billed from Amazon. You get billed from IBM. In this case, it's essentially a wholistic service in which there's a single sort of invoicing and vendor relationship, right. So it's combination of capabilities that normally would be provided via Red Hat combined with access to cloud and all the interfaces and capabilities around OpenShift, et cetera, that you could do there. Plus a more interesting and beneficial commercial model. >> So streamlined pricing models, streamlined operating model for customers. Talk to me about some of the customers that have adopted it. Give me a look into some of the industries where you've seen good adoption and some of the results that they're gaining so far. (loud engine buzz in background) >> Yeah one second, sorry, it's like insanely loud. >> Man's voice: No worries, let's just take a pause. We can just, so yeah we'll go right as if Lisa just finished the question. So just take a breather as long as it needs. And then whenever you're ready whenever that's died down, just like give it a beat give it like a second and then just right as if she just asked the question. >> Answer the question then. >> Man's voice: Yeah. >> All right. >> Man's voice: I'll cut it out as if nothing happened. >> Give me two minutes. So actually on your question, I know the answer from things that I've done recently, but was there an official answer Theresa I'm supposed to give on this? >> Teresa: No, not really I mean, I think what you're talking about on Red Hat specifically >> Right, ROSA's early adoption. >> Teresa: Yeah, no I mean, there there's a product page and stuff, it's really about just the ability of customers to be able to run those solutions on the AWS console it is really the, the gist of it. And that it's fully integrated. >> I'm not sure some of the examples I know of are publicly refrenceable. >> Lisa: That's okay, you could just say, you know, customer in XYZ industry, that's totally fair. I'm not so worried about that. >> Teresa: Yeah I don't know if so ROSA. Lisa, ROSA was just launched in March and so it's brand new so I don't have the customer stories yet. So that's why I don't have them listed for Leo. >> Lisa: Oh, that's fine, that's totally fine. Maybe we can talk about, you know, since the launch was just around the corner, some of the things that have been going on, the momentum interest from customers, questions conversations can be more like that as you're launching the GTM. >> Yeah, and there's certainly a couple of industries that they have targeted I'm going to go with that as well as a couple of customers, like, >> Teresa: Thank you, Lisa. >> Lisa: Sure, of course. >> I think they went around the corner. (Lisa laughs) >> Lisa: All right, let me know and I'll re-ask the question. I'll tweak it a little bit. >> Yeah, go ahead. >> Lisa: All right, so talk to me about, ROSA just launched very recently. Talk to me about customer interest, adoption. Maybe some of the industries in particular if you're seeing any industry that's kind of really leading edge here and taking advantage of this new managed service. >> Yeah, absolutely, so no big surprise, right? The the existing customer base that currently uses Red Hat Linux, and some of the options in OpenShift, et cetera that are out today are then the right customers to potentially look at this when it comes to moving forward. You know, industry-wise certainly there are areas within financial services, banking, insurance, et cetera. We're also seeing some around manufacturing, a little less so, but some in media and telco as well. So it's, it's a broad swath of any applicability of Red Hat and OpenShift is somewhat universal but the early customer bases has largely been sort of in those three areas. >> What I'm curious what are the key target audiences are these, Red Hat customers are these AWS customers. IBM all three? >> Yeah. I mean, there isn't necessarily the perfect customer that we're necessarily looking for, as much as if there are existing customers that are currently using Linux or using Red Hat. If there are someone who, a customer who currently has a relationship with either AWS or IBM there's an opportunity to essentially look at it from any of the angles. If you're already on cloud or you've already experienced AWS in some shape or form there's an opportunity to potentially to leverage ROSA, to further expand that capability and also have some more flexibility so to speak. If you're already using IBM as a professional services provider and advisory firm then they absolutely have the expertise and understanding of this product set to help you understand how it could be best leveraged, right. So you can kind of look at it from either of the dimensions. If it's a customer that's completely new to all of us then we're happy to talk to you. But it's something that will definitely take a little bit more explanation to understand as to why you should, or shouldn't consider us with this multicloud OpenShift type solution. >> Got it, let's shift gears a bit and talk about SAP. When we think about customers looking to migrate SAP workloads to the cloud, looking at the right cloud providers those are really big, challenging strategic decisions for leadership to make. Talk to me about why when you're in those conversations AWS is the best choice. >> Absolutely, I mean, really AWS, let's say with SAP and with with many of our services is really looking to give all the options that you could conceivably need or want in order to engage in cloud migration and transformation. press AP specifically, right? There are a number of different options, right. You could go for a lift and shift or upgrade from many databases to a suite on SAP HANA could potentially look to modernize and leverage cloud services, post migration as well. And then the sort of final pinnacle of that is a complete transformation to S four or S four HANA as far as why AWS specifically beyond just choice, you know, from a cost perspective, it's pretty compelling. And we have some pretty compelling business and use cases around ultimately the cost savings that come when you move from an on-premise SAP implementation to cloud beyond that, usually the cloud migration itself is an opportunity to condense or reduce the number of instances you're paying for, from an SAP perspective, which then further reduces cost. From a reliability perspective, you know, AWS is the world's most secure, extensive reliable cloud infrastructure, right? Any of the instances that you put on AWS are instantly I'd say fairly instantly provisioned in such a way that they are provided across multiple what we call Availability Zones which is giving you sort of the resiliency and the stability that really no other cloud provider can provide. On the security front, I mean this is really a unique position in that AWS plus IBM and the security, the depth in security services you know, numerous years of professional services work that IBM has done in the security space. You know, they have roughly 8,000 or so cybersecurity experts within IBM. So the combination of their expertise in security plus the security of our platform is a great combination. I'd say the final one is around performance, right? AWS offers many more cloud native options around certified SAP instances, specifically all the way from 256 gigabyte option all the way up to 24 terabytes which is the largest of its kind. And as those who have implemented SAP know it's a very resource intensive. So having the ability to do that from a performance perspective is a key differentiator for sure. >> Talk to me from your opinion about why IBM for SAP on AWS, why should customers go that direction for their projects? >> Yeah, you know, IBM has over 40 years of experience in implementing SAP for their customers right. And they've done, I think it's over 6,000 SAP migrations, 40,000 global SAP consultants around the world. Right, so from a capability and depth of experience, you know, there's a lot of nuance to doing it. SAP implementation, particularly one that's then moving from on-prem to the cloud. You know, they've got the experience right. Beyond that they have industry specific solutions that are pre-configured. So I think that there's 12 industry specific solutions pre-configured for SAP, it allows, you know roughly 20 to 30% acceleration when it comes to implementation of platforms. So combination of just depth of experience, depth of capability combined with these solutions to accelerate are all key reasons for sure. >> The acceleration you bring up, sorry is interesting because we saw in the last year the acceleration of digital transformation projects and businesses needing to pivot again and again, and again to figure out how to survive and be successful in this very dynamic market in which we're still living. Anything industry-wise specific that you saw that was really driving the acceleration and the use cases for ROSA in the last year? >> Yeah so, you know SAP, we saw an interesting trend as a result of what's everyone's been experiencing in the last year with COVID, et cetera. You know, many organizations postponed large ERP implementations and large SAP migrations, because of what you just said, right. They weren't entirely sure what would need to be done in order to survive either a competitive threats or more just the global threats that were occurring. So what we saw was, really none of the transformations went away. They, were put on hold for a period of time let's say six to nine months ago maybe even a year ago almost. In lieu of I would say more top line revenue generating or innovative type solutions that maybe were focused specifically at, you know, the changing dynamic with COVID. Since then we've seen a combination of those new ideas, right? Combination of the new innovation around healthcare of course, but also public sector and, you know a lot around employment and then engagement there. We've seen a combination of those new ideas and new innovations with the original goal of optimizing transforming SAP ERP, et cetera. And then combining the two to allow access to the data, that sits inside the SAP implementation the SAP. Combine the data in SAP with all these new innovations and then ultimately use that to sort of capitalize on what the future businesses are going to be. That's been huge, it's been very interesting to see some organizations completely change their business model over the course of the last 12 months. In ways they probably had never intended to before right? But it's, absolutely become an opportunity in a time of a lot of challenges. >> Agreed there are silver linings and we've seen a lot of those interesting opportunities to your point that businesses probably would never have come up with had there not been a forcing function like we've been living with. Leo thank you for joining me today. Talking to me about what's going on with IBM and AWS. We'll be excited to follow what happens with ROSA as it continues to roll out. And we appreciate you joining us on the program. >> Absolutely thank you for your time. >> For Leo Labrunch I'm Lisa Martin. You're watching theCUBE's digital coverage of IBM think 2021. (upbeat music)

>> Announcer: From theCUBE Studios in Palo Alto and Boston, it's theCUBE! Covering IBM Think, brought to you by IBM. >> Hi everybody, welcome back to theCUBE's coverage of IBM 2020, it's the digital IBM 2020, the Think Event Experience. My name is Dave Vellante, and you are watching theCUBE. Steve Canepa is here, he's the global GM of Communications, of the Communications sector for IBM. Steve, how ya doing, good to have you on. >> Doing great Dave, thanks for having me. >> Yeah, you're very welcome. I mean, communications is sort of a broad term for the stuff you covered. Telco, Cable, Entertainment, Broadcast, Publishing, Satellite, Sports, Music, Games, I mean, Social, wow. You run the gamut. >> It's exciting times. >> Pretty big role, yeah, I'll say you've got exciting times. With so much going on in your space, and of course this pandemic is really, you know, hit the communications industry in so many different ways. Some tailwinds, some headwinds, and it's just crazy out there. What are you seeing and what are you guys doing to support clients? >> Well, first and importantly, our thoughts go out to everyone. As we're all dealing with this around the world. I have the opportunity to work with clients, in every geography, around the globe and each and everyone of them is busily dealing with how they make sure their employees are safe, how they're providing services to their customers. And, we're right there alongside them, helping them do that as well. For us in the telecommunication space, as you know, it's actually essential, it's an essential industry that's helping the world deal with this as we are all going virtual like this session we're having today. So we're working with clients to help them get their resources in place so that they can support their businesses, their network platforms, their media services in a way that they can keep the business running. Our telecommunications customers all around the globe had to get their resources and work at home environments, we work with many of them, in deploying real-time services. We also work with them in deploying call center chatbot capabilities so that they could answer questions from their customers, from other members of the community as they were coming in. So tremendous opportunity for us to help them respond to what's happening. >> It's actually quite amazing the response, when you think about telco, you think about telco infrastructure, what comes to mind is, it's hard and it's reliable, it works and all of a sudden you've got all these remote workers. The pace of the pivot has been actually quite astounding. I mean your thoughts on that. >> Yeah and it actually goes hand in glove in what way we've been preparing the industry for generally. I mean there's been this evolution that digital service providers that's been happening in the industry now for a number of years and in fact the center point of what we're doing now to help telcos virtualize and abstract those networks so that they're software based services platforms that can respond to these kinds of peak load demand issues. Not that anyone anticipated COVID, but the ability to have a platform, that can scale your business. And allow you to respond, move services where they need to be moved, be much more agile in the way you work. These are all playing in the ability to respond to it. >> Steve I want to ask you about something you said in a recent article in Forbes, you said, winners in the 5G and edge era will be those who embrace a hybrid multicloud approach." Well, first of all, I want to ask you, I mean five G can't get here fast enough, but still you're kind of predicting, my inference a five g and edge era coming this decade, like I said it can't happen soon enough. What are your thoughts on this coming era? >> In my view there's three fundamental things that are happening simultaneously. So first obviously, five g is emerging. It's showing up now. Most service providers around the world are starting to already deploy their private five g capabilities. We're seeing it show up in evolution form, in consumer marketplace. So five g is here and will continue to scale. The second key transformation that's happening is the telco network itself is becoming a hybrid cloud platform. What I mean by that is that just as when video abstracted as a service and it could be deployed over the top service platforms, enabling things like our interview that we're doing today to happen, that got loaded on top of now open IP platform. The same exact thing is happening in the network domain where the network services, data services, voice service, multimedia services are being put on an open platform architecture that allows you to respond. And then the third key thing that's happening in the market is this edge phenomenon. And this is all about the ability to move workloads, to move services out closer to where things happen and take advantage of those key five g features like ultra low latency, increased bandwidth, and of course the ability to slice the network down to dedicated to a specific application. This opens up a whole new set of services. >> Yeah I mean as I was sort of eluding to before, the reliability of telco networks has been the hallmark of that infrastructure. As we move to this more open sort of standardized environments Steve, I would imagine that one of the technical challenges is maintaining that level of reliability and predictability while at the same time being able to support remote workers, etc low latency workloads. Can you comment on that? >> Yeah so a couple of key points there. One is as you may know, IBM acquired Red Hat a little over a year ago. Red Hat has created an open platform for the telco's to modernize their core infrastructure. And the power of that is we can see is this enormous upstream community now and that community can help accelerate the rate pace of transformation is happening, bring innovation in. That's really powerful. The second is, once we go through an open platform, software based platform, we can infuse automation. Extreme levels of automation, and AI for intelligent predictive capability. And now think about the network becoming a living, breathing, responding platform where it's based on software. So we can deploy services and functions and we can automate those services and functions. That level of intelligence serves as the ability to then get out these services. >> So Steve, definitely we had I think a decent understanding of the Red Hat and the strategy around Open Shift and the container approach, hybrid multicloud. What I didn't realize is that there was specificity around the telco industry. Can you talk more specifically about what IBM is doing in that regard? >> Yeah, it's a great question. Red Hat has a very significant presence in 120 telcos around the globe. And so not only they're Red Hat Linux which is kind of a defacto standard in the marketplace, but their open stack architecture now we're moving after the Open Shift architecture. And as part of that the relationship with an enormous upstream community of talent, it's building on those platforms. And so we're able to really infuse into Red Hat the kind of requirements that are necessary for their software platform to serve as the platform, the open platform for the telcos as we go forward. It has been an incredible synergy. I think of it as kind of two puzzle pieces that fit together incredibly well. At IBM we've had the long standing relationship with all the service providers around the world and helping them transform their business and now with Red Hat we have the opportunity to really integrate what we're doing with automation and AI standpoint with all the power of that Red Hat Platform. >> So where do you see the edge fitting into this hybrid multicloud approach? Is it sort of an extension of cloud? Is it a new cloud? We know we are envisioning this seamless experience between on-prem, cloud, multicloud, and edge. >> Yeah I think of it in a kind of simple venn diagram where you have kind of this virtualized open software based telco network on one side and you have the edge on the other and in the middle you have this kind of combination where you do edge in partnership with the telco. And the idea here is that all industries are going to want to provide a next generation of insights to their customers and to their partners. The ability to move those workloads, so think about a manufacturing shop for an example. You know we've already had IoT centers, hundreds if not thousands of them. Now we can infuse video cameras and take a huge amount of data through the enhanced bandwidth of five g and bring that down to an edge platform and analyze that video data in real time, whether employees are in safe zones, maybe with COVID now even, whether or not they're taking the proper social distancing, and looking at actually everything that's coming off of that platform or manufacturing line, looking at the equipment itself and adding AI to that so that we can analyze it in real time. Edge allows us to take advantage of those five g attributes and to put it wherever that workload should run. Whether it's on the plant floor itself, in proximity to where that equipment is, or back at a central office location within the network of a telco. >> Well this is huge for the telcos because for years, I keep talking about their hardened network, but their cost per bit has been coming down. They're responsible for putting in that infrastructure, maintaining that infrastructure and then you got the over the top providers laying out content growing like crazy, has really disrupted that industry. This is going to change the way in which telcos are able to compete, is it not? >> It's a great point. Yes. If you think about the last generation of evolution you know when we went to four g and smartphones came out, think about the Apple App Store as an example. Folks started not going to the telcos anymore for those services, they went to that OTP capability to get those applications. Now think about about in this edge world as we essentially are creating platforms for innovation for businesses and all industries. And they can now innovate on those platforms and create incredible value in their business and the telcos now can add beyond just the transport capability, but artificial intelligence, automation, they can expose certain data capabilities, they can make those applications smarter, understanding proximity data, that could be applied to things like logistics or pricing or as I said operations like in manufacturing. So a tremendous new set of value in fact most analysts say a trillion dollars in value is going to be created here. And the opportunity I see is that the open network platform becomes a way for the service providers to not only capture value for themselves, but to accelerate the value for businesses in all industries. >> Well I think we're going to see some huge moves in the chess board. More M and A. I mean it's going to be a very exciting time and of course five g's at the heart of it, but Steve I wonder if you could give us IBM's point of view in terms of where we are with five g, I mean sometimes I see it pop up on my phone and I'm like come on, that's not real five g quite yet. We heard recently that Apple might somewhat delay it's new phones that maybe five g's involved in that, but it's going to take some time for that infrastructure to roll out but what's your point of view on sort of that time frame and the business impact that we can all expect? >> Yeah I know, it's a good question. And we will see it roll out over time. Some things are starting to roll out now. Think about stadiums or other venues where you have a manufacturing shop floor as an example, oil rig off the coast. I mean you have environments where you could create five g infrastructure in a private model today and then of course consumer models are going to roll out as cities continue to get deployed by the various service providers. But I think the important point which is what we've spoken about so far, is that as we start to create this platform capability around the edge and we start to transform those network themself to coincide telcos platform, we can start to capture those values today in a four g world and as five g comes along you just essentially evolve into the capabilities that that brings especially with regards to latency and bandwidth. Now some applications where slicing will be really important. Think about a medical operation where a doctor is consulting on a surgery in a remote location. Now if I know for sure that bandwidths going to be there, that doctor no longer has to be in the same location as that robotic equipment as an example. So the ability to have dedicated bandwidth which will come with five g, will be an important attribute that gets added. >> I mean the possibilities are really mind boggling. You mentioned stadiums. Now of course hopefully at some point we'll be able to go to football games again. But I mean the last decade was all about how big can you make the screen in the stadium versus this screen. This is where a lot of the action is going to be now. Replays and just the whole experience, ordering goods and services. And then of course hardened environments like oil rigs etc so really we're not just going to return to the last decade we've been talking about that a lot here. Go ahead please. >> An example that I like to mention just 'cause it kind of brings us all together, think about first responders. Now we're in the midst of the COVID thing but soon in California again unfortunately we'll probably get close to fire season. Think in a five g edge world what that might look like. So the minute that fire starts in some location in California, drones are in the air sending video down to an edge platform that's being analyzed to understand where that fire's going and importantly everything that's in it's path and how to best battle it. Sensors coming in from IoT centers in the area feeding in data. Our weather company app feeding in real time weather statistics, wind path, temperature changes, that are going to influence the way that that that fire performs. And now with the announcement we made Samsung just recently with our edge platform, the ability to have those first responders have sensors on them, Samsung devices that are measuring their vital signs and with the predictive models that are being built, we'll know whether that first responders' in distress or about to be in distress. The ability to scale our inbound communications capability digitally so that chat bots can handle this enormous increase in the amount of folks calling in to get information on what's happening in real time. And of course with the AI in that edge platform. Moving all of that physical equipment, the asset, humans, the first responders, in the optimal position at all times in order to get that fire out as soon as possible. I think it's a good example of how we can see these capabilities come together in a five g and edge world and allow us to get enormous value, saving lives, saving property, responding to an incident like that. >> I mean that's a great example of how you're going to put innovation into action 'cause you touched all points. Imagine the amount of data now that's being created and that example that you just gave, I mean it's just going exponential. Applying artificial intelligence, machine intelligence, and then the other phrase you used is real time. And we're talking about real time or near real time decisions actually being made potentially often times by the machines or in combination with humans so that these actions can be taken of course it's all occurring on an infrastructure that's sort of an expanding definition of cloud, not just on prem, not just hybrid, not just multicloud but now the edge. It's really going to be an exciting 10 years. >> You got it exactly right. And importantly, using that example, once that fire's put out, that edge platform can wind back down to where it was before the incident occurred. But all the intelligence that was gained during that, can be taken to the next incident has it happens. So this agility becomes really powerful 'cause we get the cumulative learning that happens in these models going forward. >> Amazing. So where can people go to get some more information on sort of IBM's edge approach? >> If you go to IBM.com, you'll see information on both on IBM edge solutions that we're putting forward into marketplace and what we're doing specifically with the telecommunication service providers to help them transform their networks to take advantage of this incredible opportunity. >> Well Steve, thanks so much for your time. Really great discussion. I appreciate you comin on and sharing with our community. >> My pleasure. Thank you. >> And thank you everybody. This is theCUBE's continuous coverage of IBM Think 2020, the Digital Event Experience. My name's Dave Vellante. Keep it right there, I'll be right back right after this short break. (relaxing music)

>> Announcer: Live from San Francisco, it's theCUBE, covering Google Cloud Next '19. Brought to you by Google Cloud, and its ecosystem partners. >> We're back at Google Cloud Next, at the new, improved Moscone Center. This is day two of theCUBE's coverage of Google's big Cloud show. theCUBE is a leader in live tech coverage, my name is Dave Vellante, I'm here with my co-host Stu Miniman. John Furrier is walking the floor, checking out the booth space. Ranga Rangachari is here, he's the Vice President and General Manager of Cloud Storage and hyper-converged infrastructure at Red Hat. Ranga, good to see you again. >> Hi Dave, hi Stu, good to see you again too. >> Thanks for coming on, this show it's, it's growing nicely, good thing Moscone is new and improved. How's the show going for you? >> Show's going really good. I just had a chance to walk around the booths and a lot of interesting conversations and, the Red Hat booth too, there've been a lot of interesting conversations with customers. >> A lot of tailwinds these days for Red Hat. We talk about that a lot on theCUBE, this whole notion of hybrid cloud, you guys have been on that since the early days. >> Yeah. >> Multi-cloud, omni-cloud, hyper-converged infrastructure, it's in your title. It's like that all the moons are lining up for you guys, you know is it just luck, skill, great predictions powers, what's your take? >> Well, I mean, I think it's a combination of those, but more importantly, it's about listening to our customers. I think that's what gives us, today, the permission to talk to our customers about some of these things they're doing, because when we talk to them, it's not just about solving today's problems, but also where they're headed, and anticipating where they're going, and the ability to meet their needs. So is, I think. >> So the Google partnership, we were talking earlier, it started 10 years ago with the hypervisor. >> Yup. >> And it's really evolved. Where is it today, from your perspective? >> Well, I think it continues to, it continues to cooperate in the technical community very well, and a couple of data points, one is on Kubernetes, that started four, five years ago, and that's going really strong. But more importantly, as the industry matures, there are, what I would call, special interest groups that are starting to emerge in the Kubernetes community. One thing that we are paying very close attention to is the storage SIG, which is the ability to federate storage across multiple clouds, and how do you do it seamlessly within the framework of Kubernetes, as opposed to trying to create a hack, or a one-off that some vendors attempted to do. So we try to take a very wholistic view of it, and make sure, I mean the industry we are in is trying to drive volumes, and volumes drives standards, so I think we pay very, very close attention-- >> And the objective there is leave the data in place if possible, provide secure access and fast access, provide high-speed data movement if necessary, protect the data in motion. That is a complex problem. >> It is, and that's why I think it's very important that the community together solves the problem, not just one vendor. But it's about how do you facilitate, the holy grail is how do you facilitate data portability and application portability across these hybrid clouds. And a lot of the things that you talked about are part and parcel of that, but what users don't wanna do is stitch them together. They want a simple, easy way. And most common example that we often get asked is can I migrate my data from one cloud to the other, from on-prem to a public cloud beta based on certain policies. That's a prototypical example of how federated storage and other things can help with that. >> Ranga, bring us inside some of those customer conversations, 'cause we talk on theCUBE, we go back to, customers always say I want multi-vendor, yes, I don't want lock-in, portability is a good thing, but at the end of the day, some of these things, if it's some science experiment or if it's difficult, well, sometimes it's easier just to kind of stick on a similar environment. We know the core of Red Hat, it's if I build on top of rail, then I know it can work lots of places, so where are customers at, how does that fit in to this whole discussion of multi-cloud. >> So, what I can kind of give you a perspective of the hybrid cloud, the product strategy that we've been on for better part of a decade now, is around facilitating the hybrid cloud. So if you look at the open, or the storage nature of the data nature of the conversations, it's almost two sides of the same coin. Which is, the developers want storage to be invisible. They don't wanna be in the business of stitching their lungs and their zone masking all that stuff. But yet at the same time they want storage to be ubiquitous. So, they want it to be invisible, they want it to be ubiquitous. So that's one of the key themes that we are in from our customer. >> Come on, Ranga, you guys are announcing storage list this year, right? >> Yeah, (laughs) exactly. (laughs) So that's a great point. The other part that we are also seeing from our customer conversations is, I think, let me give you, kind of the Red Hat inside out perspective. Is any products, any thing that we release to the market, the first filter that we run through is will it help our customers with our open hybrid cloud journey? So that kind of becomes the filter for any new features we add, any go-to-market motion, so that there is a tremendous amount of impedance match if you will. Between where we're going and how customers can succeed with their open hybrid cloud journey. >> So, in thinking about some of the discussions you're having with customers on their hybrid cloud strategy, specifically, what are those conversations like, what are the challenges that they're having? It's a maturity spectrum, obviously, but what are you seeing at each level of the spectrum, and where are some of those execution, formulation and execution challenges? >> So, as the industry evolves and the technology matures, the conversation change, and 12, 24 months ago it was a dramatically different conversation. It was an all around help me get there. Now the conversation is people really understand, and most of our conversations that we see, and even the other industry players are seeing this, is the conversation starts with on-prem looking out, as opposed to a cloud looking in. So, customers say look I've invested a tremendous amount of assets, intellectual horsepower into building my on-prem infrastructure and make it solid, now give me the degree of freedom for me to move certain workloads to one or many of these public clouds. So that's kind of a huge shift in the conversations we have with the customers. If you click one or a couple of levels below, the conversation talks about things like security as you pointed out. How do you ensure that if I move my workload my overall corporate compliance stuff aren't anywhere compromised. So that's one aspect. The other aspect is manageability. Can it really manage this infrastructure from a proverbial single pane of glass. So now the conversations are less about more theoretical, it's more about I've started the journey help me make this journey successful. >> So when you talk about the perspective of, I've built up this on-prem infrastructure, I've invested a ton it in, and now help me connect, I can see a mindset that would say think cloud first. Of course, the practical reality says I've got all this tactical debt. So how much of that is gonna be a potential pitfall down the road for some of these companies, in your view? >> Well, I think it's not so much of a technical debt. In one way you could call it a technical debt, but the other aspect is how do you really leverage the investment that you've made without having to just say well I'm gonna do things differently. So, that's why I think the conversations we have with our customers are mutually beneficial, because we can help them, but the same token they can help us understand where some of the road blocks are. And through our products, through our services, we can help them circumvent or mitigate some of those-- >> And those assets aren't depreciated on the books, they've gotta get a return on them, right? >> So, Ranga, we know that one of the areas that Red Hat and Google end up working a lot together is in the Cloud Native Computing Foundation. >> Yep. >> Bring us up to speed as to where we are with that storage discussion, 'cause I think back to when Docker launched it was oh, it's gonna be wonderful and everything, but we all live through virtualization, and we had to fix networking and storage challenges here, and networking seemed to go a little further along and there's been a few different viewpoints as to how storage should be looked at in the containerized and the Kubernetes SDO world that we're moving towards today. >> So one example that illustrates storage being the center of this is there is a project called Rook.io. If you're familiar with this, think of it as kind of sitting between the storage infrastructure and Kubernetes. And that is taking on a tremendous amount of traction, not just in the community, but even within the CNCF. I could be wrong here, but my understanding it's a project that's in incubation phase right now. So we are seeing a lot of industry commitment to that Rook project, and you're gonna see real, live use cases where customers are now able to fulfill the vision of data portability and storage portability across these multiple hybrid clouds. >> So Kubernetes is obviously taking off, although again, it's a maturity level. Some customers are diving in, and others maybe not so much. What are you seeing is some of the potential blockers, how are people getting started? Can you just download the code and go? What are you seeing there? >> That's a very interesting question, because we look at it as projects versus products. And, Kubernetes is a project. Phenomenal amount of velocity, phenomenal amount of innovation. But once you deploy it in your production environment, things like security, things like life cycle management, all those things have to be in place before somebody deploys it. That's why, in OpenShift you've seen the tremendous amount of market acceptance we've have with OpenShift is a proof point that it is kind of the best Kubernetes out there, because it's enterprise ready, people can deploy it, people can use it, people can scale with it, and not be worried about things like life cycle management, things like security, all the things that come into play when you deal with an upstream project. So, what we've seen from a customer basis, people start to dabble, and they'll look at Kubernetes, what's going on, and understand where the areas of innovation are. But once they start to say look I've got it deployed for some serious workloads, they look at a vendor who can provide all the necessary ingredients for them to be successful. >> We're having a good discussion earlier about customer's perspectives, I wanna get as much out of that asset as I possibly can. You said something that interested me. I wanna go back to it. Is customers want options to be able to migrate to various clouds. My question is do you sense that that's because they wanna manage their risk, they want an exit strategy? Or, are they actively moving more than once. Maybe they wanna go once and then run in the cloud. Or are you seeing a lot of active movement of that data? >> I think the first order of bit in those discussions that are about the workloads, What workload do they wanna run? And once they decide this is the, for instance, with the Google Cloud, with the MLAI type of workloads, lend themselves very well to the Google Cloud infrastructure. So when a customer says look this is the workload I wanna run on-prem, but I want the elastic capability for me to run on one of these public clouds, often the decision criteria seems to be what workload it is and where's the best place to run it in. And then, you know, the rest of the stuff comes into play. >> So, Ranga, let's step back for a second. I come out of this show, Google Cloud this year, and I'm hearing open, multi-cloud, reminds me of words I've heard going to Red Hat, some every year. Help us to kind of squint through a little bit as to where Red Hat sits in the customer. If I'm the c-suite of an enterprise customer day, where Red Hat fits in the partnership with customers, and where the partners fit into that overall story. >> So, our view is let's look at it customer end. And practically every customer that we talk to wants to embark on an open hybrid cloud storage. And I wanna kind of stress on the open part of it, because it's the easier way to say okay let me go build a hybrid cloud. The more difficult part is how do you facilitate it through open hybrid cloud story. And that's the march, if you will, that we've been on for the last five plus years. And, that business strategy and the technology strategy has not, we've been unwavering in that. And, the partners are and they say we truly believe that for us to be successful, for our customers to be successful, we need an ecosystem of partners. And the cloud providers are absolutely a critical ingredient and a critical component of the overall strategy, and I think together, with our partners, and our core technology, and our go-to-market routes, we think we can really solve our customers, we are solving them today, and we think we can continue to solve them over time. >> You talk about open, open has a lot of different definitions. And again it's suspected UNIX used to be open. (laughs) I see that potentially as one, real solid differentiator of Red Hat. I mean, your philosophy on open. What do you see as your differentiators in the marketplace? >> Well, I think the first is obviously open like you said, the second part is, I think I hinted upon it earlier, which is, projects are good. I think they are almost a fountain and of ideas and things, but I think where we spend a tremendous amount of hours of energy is to transform it from the upstream project into a product. And if you go back, Red Hat Linux, I think we've shown that Linux was in the same kind of state of vibe in other ways, 10, 20 years ago. And I think what we've shown to the industry is by being solely committed and focused on make these projects enterprise ready, I think we've shown the market leading the way, and making it successful. So I think for us, the next wave, whether it's Kubernetes, whether it's other things, it's a very similar recipe book, nothing dramatically different, but fundamentally what we want to do is help our customers take advantage of those innovations, but yet not compromise on what they need in their enterprise data centers. >> The recipe book is similar, but you've gotta make bets. You've made some pretty good bets over the years. >> Yep. >> We could debate about OpenStack, but I mean, even there. But that's not an easy thing for an open source company to do. 'Cause you've gotta pick your poison, you have to provide committers, what's the secret sauce there? >> Well, I think, first off, I think the number one secret sauce from our perspective is add more technical and intellectual horsepower to these communities. And, not so much for the sake of community, it's about does it solve a real business problem for our customers? That's the way we go about it because in the open source community, I don't even know, hundreds of thousands of open source projects are out there. And we pay, and our office of the CTO pays very close attention to all the projects out there, identify the ones that have promise, not just from our perspective but from customers' perspective, and invest in those areas. And a lot of them have succeeded, so we think we'll do well in that. >> Alright, so, Ranga, one of the biggest announcements this week is Anthos from Google. Wanna get your viewpoint as to where that fits. >> I think it's a good announcement, I haven't read through all the details, but part of it is I think it validates, to a certain extent, what Red Hat has been talking about for the last five, seven years. Which is you need a unified way to deploy, manage, provision your infrastructure, not just on public clouds, but a seamless way to connect to the on-prem. And I think Anthos is a validation of how we've been thinking about the work. So we think it's great. We think it's really good. >> Ranga Rangachari thanks so much for coming back on theCUBE >> Thank you, David! >> It's always a pleasure. >> Thank you again, Stu. >> Have a great Red Hat summit coming up in early May, theCUBE will be there, Stu will be co-hosting. You're watching theCUBE, day two of Google Cloud Next 2019 from Moscone. We'll be right back. (upbeat music)

>> Live from Boston, it's theCUBE! Covering IBM Chief Data Officers Summit. Brought to you by IBM. >> Welcome back to theCUBE's live coverage of the IBM CDO Summit here in Boston, Massachusetts. I'm your host Rebecca Knight, along with my co-host Paul Gillin. We're joined by Inderpal Bhandari, he is the Global Chief Data Officer at IBM. Thank you so much for coming back on theCUBE, Inderpal. >> It's my pleasure. >> It's great to have you. >> Thank you for having me. >> So I want to talk, I want to start by talking a little bit about your own career journey. Your first CDO job was in the early 2000s. You were one of the first CDOs, ever. In the history of Chief Data Officers. Talk a little bit about the evolution of the role and sort of set the scene for our viewers in terms of what you've seen, in your own career. >> Yes, no thank you, December 2006, I became a Chief Data Officer of a major healthcare company. And you know, it turned out at that time there were only four of us. Two in banking, one in the internet, I was the only one in healthcare. And now of course there are well over 1,999 of us and the professions taken off. And I've had the fortune of actually doing this four times now. So leading a legacy in four different organizations in terms of building that organizational capability. I think initially, when I became Chief Data Officer, the culture was one of viewing data's exhaust. Something that we had to discard, that came out of the transactions that you were, that your business was doing. And then after that you would discard this data, or you didn't really care about it. And over the course of time, people had begun to realize that data is actually a strategic asset and you can really use it to drive not just the data strategy, but the actual business strategy, and enable the business to go to the next level. And that transitions been tremendous to watch and to see. I've just been fortunate that I've been there for the full journey. >> Are you seeing any consensus developing around what background makes for a good CDO? What are the skills that a CDO needs? >> Yeah, no that's a very, very good question. My view has been evolving on that one too, over the last few years, right, as I've had these experiences. So, I'll jump to the conclusion, so that you kind of, to answer your question as opposed to what I started out with. The CDO, has to be the change agent in chief, for the organization. That's really the role of the CDO. So yes, there's the technical sharps that you have to have and you have to be able to deal with people who have advanced technical degrees and to get them to move forward. But you do have to change the entire organization and you have to be adept at going after the culture, changing it. You can't get frustrated with all the push back, that's inevitable. You have to almost develop it as an art, as you move forward. And address it, not just bottom up and lateral, but also top down. And I think that's probably where the art gets the most interesting. Because you've got to push a for change even at the top. But you can push just so far without really derailing everything that you are trying to do. And so, I think if I have to pick one attribute, it would be that the CDO has to be the change agent in chief and they have to be adept at addressing the culture of the organization, and moving it forward. >> You're laying out all of these sort of character traits that someone has to be indefatigable, inspirational, visionary. You also said during the keynote you have six months to really make your first push, the first six months are so important. When we talk about presidents, it's the first 100 days. Describe what you mean by that, you have six months? >> So if a new, and I'm talking here mainly about a large organization like an IBM, a large enterprise. When you go in, the key observation is it's a functioning organization. It's a growing concern. It's already making money, it's doing stuff like that. >> We hope. >> And the people who are running that organization, they have their own needs and demands. So very quickly, you can just become somebody who ends up servicing multiple demands that come from different business units, different people. And so that's kind of one aspect of it. The way the organization takes over if you don't really come in with an overarching strategy. The other way the organizations take over is typically large organizations are very siloed. And even at the lower levels you who have people who developed little fiefdoms, where they control that data, and they say this is mine, I'm not going to let anybody else have it. They're the only one's who really understand that curve. And so, pretty much unless you're able to get them to align to a much larger cause, you'll never be able to break down those silos, culturally. Just because of the way it's set up. So its a pervasive problem, goes across the board and I think, when you walk in you've got that, you call it honeymoon period, or whatever. My estimate is based on my experience, six months. If you don't have it down in six months, in terms of that larger cause that your going to push forward, that you can use to at least align everybody with the vision, or you're not going to really succeed. You'll succeed tactically, but not in a strategic sense. >> You're about to undertake the largest acquisition in IBM's history. And as the Chief Data Officer, you must be thinking right now about what that's going to mean for data governance and data integration. How are you preparing for an acquisition that large? >> Yeah so, the acquisition is still got to work through all the regulations, and so forth. So there's just so much we can do. It's much more from a planning stand point that we can do things. I'll give you a sense of how I've been thinking about it. Now we've been doing acquisitions before. So in that since we do have a set process for how we go about it, in terms of evaluating the data, how we're going to manage the data and so forth. The interesting aspect that was different for me on this one is I also talked back on our data strategy itself. And tried to understand now that there's going to be this big acquisition of move forward, from a planning standpoint how should I be prepared to change? With regard to that acquisition. And because we were so aligned with the overall IBM business strategy, to pursue cognition. I think you could see that in my remarks that when you push forward AI in a large enterprise, you very quickly run into this multi-cloud issue. Where you've got, not just different clouds but also unprime and private clouds, and you have to manage across all that and that becomes the pin point that you have to scale. To scale you have to get past that pin point. And so we were already thinking about that. Actually, I just did a check after the acquisition was announced, asking my team to figure out well how standardized are we with Red Hat Linux? And I find that we're actually completely standardized across with Red Hat Linux. We pretty much will have use cases ready to go, and I think that's the facet of the goal, because we were so aligned with the business strategy to begin with. So we were discovering that pinpoint, just as all our customers were. And so when the cooperation acted as it did, in some extent we're already ready to go with used cases that we can take directly to our clients and customers. I think it also has to do with the fact that we've had a partnership with Red Hat for some time, we've been pretty strategic. >> Do you think people understand AI in a business context? >> I actually think that that's, people don't really understand that. That's was the biggest, in my mind anyway, was the biggest barrier to the business strategy that we had embarked on several years ago. To take AI or cognition to the enterprise. People never really understood it. And so our own data strategy became one of enabling IBM itself to become an AI enterprise. And use that as a showcase for our clients and customers, and over the journey in the last two, three years that I've been with IBM. We've become more, we've been putting forward more and more collateral, but also technology, but also business process change ideas, organizational change ideas. So that our clients and customers can see exactly how it's done. Not that i'ts perfect yet, but that too they benefit from, right? They don't make the same mistakes that we do. And so we've become, your colleagues have been covering this conference so they will know that it's become more and more clear, exactly what we're doing. >> You made an interesting comment, in the keynote this morning you said nobody understands AI in a business context. What did you mean by that? >> So in a business context, what does it look like? What does AI look like from an AI enterprise standpoint? From a business context. So excuse me I just trouble them for a tissue, I don't know why. >> Okay, alright, well we can talk about this a little bit too while he-- >> Yeah, well I think we understand AI as an Amazon Echo. We understand it as interface medium but I think what he was getting at is that impacting business processes is a lot more complicated. >> Right. >> And so we tend to think of AI in terms of how we relate to technology rather than how technology changes the rules. >> Right and clearly its such, on the consumers side, we've all grasped this and we all are excited by its possibilities but in terms of the business context. >> I'm back! >> It's the season, yes. >> Yeah, it is the season, don't want to get in closer. So to your question with regard to how-- >> AI in a business context. >> AI in a business context. Consumer context everybody understands, but in a business context what does it really mean? That's difficult for people to understand. But eventually it's all around making decisions. But in my mind its not the big decisions, it's not the decisions we going to acquire Red Hat. It's not those decisions. It's the thousands and thousands of little decisions that are made day in and night out by people who are working the rank and file who are actually working the different processes. That's what we really need to go after. And if you're able to do that, it completely changes the process and you're going to get just such a lot more out of it, not just terms of productivity but also in terms of new ideas that lead to revenue enhancement, new products, et cetera, et cetera. That's what a business AI enterprise looks like. And that's what we've been bringing forward and show casing. In today's keynote I actually had Sonya, who is one of our data governance people, SMEs, who works on metadata generation. Really a very difficult manual problem. Data about data, specifically labeling data so that a business person could understand it. Its all been done manually but now it's done automatically using AI and its completely changed the process. But Sonya is the person who's at the forefront of that and I don't think people really understand that. They think in terms of AI and business and they think this is going to be somebody who's a data scientist, a technologist, somebody who's a very talented technical engineer, but it's not that. It's actually the rank and file people, who've been working these business processes, now working with an intelligent system, to take it to the next level. >> And that's why as you've said it's so important that the CDO is a change agent in chief. Because it is, it does require so much buy-in from, as you say, the rank and file, its not just the top decision makers that you're trying to persuade. >> Yes, you are affecting change at all levels. Top down, bottom up, laterally. >> Exactly. >> You have to go after it across the board. >> And in terms of talking about the data, it's not just data for data's sake. You need to talk about it in terms that a business person can understand. During the keynote, you described an earlier work that you were doing with the NBA. Can you tell our viewers a little bit about that? And sort of how the data had to tell a story? >> Yes, so that was in my first go 'round with IBM, from 1990 through '97. I was with IBM Research, at the Watson Research Lab, as a research staff member. And I created this program called Advanced Scout for the National Basketball Association. Ended up being used by every team on the NBA. And it would essentially suggest who to put in the line up, when you're matching lines up and so forth. By looking at a lot of game data and it was particularly useful during the Playoff games. The major lesson that came out of that experience for me, at that time, alright, this was before Moneyball, and before all this stuff. I think it was like '90, '93, '92. I think if you Google it you will still see articles about this. But the main lesson that came out for me was the first time when the program identified a pattern and suggested that to a coach during a playoff game where they were down two, zero, it suggested they start two backup players. And the coach was just completely flabbergasted, and said there's no way I'm going to do this. This is the kind of thing that would not only get me fired, but make me look really silly. And it hit me then that there was context that was missing, that the coach could not really make a decision. And the way we solved it then was we tied it to the snippets of video when those two players were on call. And then they made the decision that went on and won that game, and so forth. Today's AI systems can actually fathom all that automatically from the video itself. And I think that's what's really advanced the technology and the approaches that we've got today to move forward as quickly as they have. And they've taken hold across the board, right? In the sense of a consumer setting but now also in the sense of a business setting. Where we're applying it pretty much to every business process that we have. >> Exciting. Well Inderpal, thank you so much for coming back on theCUBE, it was always a pleasure talking to you. >> It's my pleasure, thank you. >> I'm Rebecca Knight for Paul Gillin, we will have more from theCUBE's live coverage of IBM CDO coming up in just a little bit. (upbeat music)

>> Narrator: From Chicago, it's The Cube. Covering Veritas Vision Solution Day 2018. Brought to you by Veritas. >> Welcome back to the Windy City everybody. You're watching The Cube, the leader in live tech coverage. We're goin' out to the events, we extract a signal from the noise. We're here at the Veritas Vision Solution Days in Chicago. We were just a few weeks ago we were at the iconic Tavern on the Green in New York City. We're here at the Palmer House Hotel, beautiful hotel right in downtown Chicago near the lake. It's just an awesome venue, it's great to be here. Arista Thurman III is here, he's the principle computer engineer at the Argonne National Labs. Great to see you, thanks for coming on The Cube. >> Yah, good to be here, thanks. >> So tell the audience about Argonne National Labs. What do you guys all about? >> About science, so we're all about the advancement of science. We do a lot of different experiments from technology for batteries and chemistry. The project we're working on is the advanced photon source, which is a light source that's used to collect data in experiments with a photon source. >> OK, so you're an IT practitioner, >> Arista Thurman: That is correct. >> Serving scientists. >> Arista Thurman: Yes. >> What's that like? Is that like an IT guy serving doctors? Are they kind of particular? >> Arista Thurman: A little bit. >> There's some challenges there, but yah it's great. So basically you have a unique customer base, and they have additional requirements. So, it's not like a normal customer base. They're very smart people. They have a lot of demands and needs, and we do our best to provide all the services they require. >> Yah, so given that they're technical people, they may not be IT people but they have an affinity to technology. First of all, it must be hard to BS them, right? (laughter) >> Arista Thurman: No doubt, no doubt. >> They'd cut through that, so you got to be straight with them. And they're probably pretty demanding, right? I mean, they have limited resources and limited time and limited budgets, and they're probably pounding you pretty hard. Is that the case, or are they more forgiving? >> They're great people to work with, but there can be some challenges. I mean, it's unique in the idea that they work on multiple platforms. So it's from Unix to Linux to Mac. Multiple computers in their offices, multiple data requirements. And a lot of things happen without a lot of process and planning. Some things are ad hoc. So, it puts a little bit of strain sometimes on you to try to make everything happen in the amount of time they have. And everything is There's some challenges with regard to how to get things done in a timely fashion when you don't know what's going to happen with some of these experiments. >> I mean I imagine, right? They can probably deal with a lot of uncertain processes because that's kind of their lives, right? You must have to cobble things together for them to get them a solution sometimes, is that the case? >> We do sometimes. I think it's all about getting enough funding and enough resources to take care of all the different experiments. >> Dave Vellante: A balancing act. >> Yah. >> Dave Vellante: Ya so you look after, compute and storage. >> Arista Thurman: Yes. >> Right, so talk about what's happening generally there and then specifically data protection. >> So in general, my primary focus is Linux. Linus administration, Red Hat Linux. And we've seen a lot of data growth over the last five years and we've got projection for more growth as we are planning for an upgrade. So we're going to change our bmine and make it more efficient. Have a better light source and that's all planned in the next two to three years. And so, there's a lot of extra projects on top of our normal workload. We have a lot of equipment that probably needs to be refreshed. There's resources and with IT and any kind of data management things change. So whatever we're doing today, in the next three years we'll be doing something different because things change with regard to CPU speeds, performance of IO networking, storage requirements. All those things are continually growing exponentially. And when scientists want to do more experiments and they get new resources in, it's going to require more resources for us to maintain and keep them operational at the speeds and performance they want. >> Yah, we do hundreds of events with The Cube. We do about 130 events this year, and a lot of them are so-called "big data" orientation. And when you go to those data oriented events, you hear a lot of, sort of the roots of that. Or at least similarities to the scientific technical computing areas and it's sort of evolved into big data. A lot of the disciplines are similar. So, you're talking about a lot of data here. Sometimes it's really fast data, and there's a lot of variety, presumably, in that data. So how much data are we talking about? Is it huge volumes? Maybe you could describe your data environment. >> Primarily we have things broken up into different areas. So we have some block storage, and that provides a lot of our virtual the back-end for our virtualization environments which is either Microsoft or Red Hat RHV. I would estimate that's somewhere in a petabyte range. And then we also have our NAS file systems which spread across multiple environments providing NFS version three and four and also to Windows clients CIFS and some of the Mac clients also utilize that. And that's at about a little less than a petabyte. We also have high performance computing and that's a couple petabytes, at least. And all those numbers are just estimates because we're constantly growing. >> Any given time it's changing. But you're talking about multiple petabytes. So how do you back up, how do you protect multiple petabytes? >> Well I think it has to, it's all about a balancing act 'cause it's hard to back up everything in that same time window. So we have multiple backup environments providing resources for individual platforms. Like for Windows we'd do something a little different than we'd do for Linux. And we have different retention policies. Some environments need to be retained, retention is three years and some is six months, some three months, and so you have to have a system of migrating your storage to faster discs and then layer off the tape for long term retention. It's a challenge that we're constantly fighting with. >> How do you use Veritas? You're a customer obviously? >> Yah, we've been a Veritas customer for many years and we utilize Veritas in our virtualization environments. They kind of help us out with central platform. We've actually explored other things but the most cost effective thing to us at this point has been Veritas. We utilize them to back up primarily our NAS and our black files, our black file systems that provide most of the virtualization. >> Why Veritas? What is it about them that you have an affinity for? There's a zillion other backup software vendors out there, why Veritas? >> I think we have invested a lot in Veritas over the years. Predating my time at Argonne we've been using Veritas. In my previous career, in Sun Microsystems we also had some kind of relationship with Veritas. So it's easy and I think, like I mentioned earlier, we explored other things but it wasn't cost effective to make that kind of change. And it's been a reliable product. It does require work but it has been a reliable product. >> So, you'd mentioned your Linux, Red Hat Linux. >> Arista Thurman: Yes. >> So you saw this IBM announced it's going to buy Red Hat for 34 billion dollars. What were your thoughts when you heard that news? >> I was like, "Wow, what is going to happen now?" I was like, "How is that going to impact us?" Is it going to change our licensing model? Or is it going to be a good thing, or a bad thing? Right now we just don't really know. We're just kind of waiting and seeing. But it's like, OK, I mean that's a big deal. It is a biggest deal certainly from IBM. Their biggest previous deal was I think Cognos at five billion, so this dwarfs that. The deal of course doesn't close probably till the second half of 2019. So it's going to take a while. But look, IBM is known when it buys software companies, saw this with SPSS, you've seen it with other companies that it buys, it often times will change the pricing model. How do you license Red Hat? Do you have an enterprise license agreement? Do you know offhand? >> We do have an agreement with them. >> Dave Vellante: Lock that in. Lock that long term in now before the deal goes down. >> One of my counterparts is in charge of that part of it. So I'm sure we'll be having that conversation shortly. >> Yah, interesting. Well listen, Arista thanks very much for coming on The Cube, really appreciate your insight. >> Thank you. >> It's great to meet you, all right, you're welcome. Thanks for watching everybody, it's a wrap from Chicago. This has been The Cube, Veritas Vision Days. Check out SiliconAngle.com for all the news. TheCube.net is where you'll find these videos and a lot of others. You'll see where The Cube is next. Wikibon.com for all the research. Thanks for the team here, appreciate your help on the ground. We're out from Chicago, this is Dave Vellante. We'll see ya next time.

>> Live from New York, it's theCUBE, covering theCUBE New York City 2018. Brought to you by SiliconANGLE Media and its ecosystem partners. >> Hello, everyone, welcome back. This is theCUBE live in New York City for theCUBE NYC, #CUBENYC. This is our ninth year covering the big data ecosystem, which has now merged into cloud. All things coming together. It's really about AI, it's about developers, it's about operations, it's about data scientists. I'm John Furrier, my co-host Dave Vellante. Our next guest is Brent Compton, Technical Marketing Director for Storage Business at Red Hat. As you know, we cover Red Hat Summit and great to have the conversation. Open source, DevOps is the theme here. Brent, thanks for joining us, thanks for coming on. >> My pleasure, thank you. >> We've been talking about the role of AI and AI needs data and data needs storage, which is what you do, but if you look at what's going on in the marketplace, kind of an architectural shift. It's harder to find a cloud architect than it is to find diamonds these days. You can't find a good cloud architect. Cloud is driving a lot of the action. Data is a big part of that. What's Red Hat doing in this area and what's emerging for you guys in this data landscape? >> Really, the days of specialists are over. You mentioned it's more difficult to find a cloud architect than find diamonds. What we see is the infrastructure, it's become less about compute as storage and networking. It's the architect that can bring the confluence of those specialties together. One of the things that we see is people bringing their analytics workloads onto the common platforms where they've been running the rest of their enterprise applications. For instance, if they're running a lot of their enterprise applications on AWS, of course, they want to run their analytics workloads in AWS and that's EMRs long since in the history books. Likewise, if they're running a lot of their enterprise applications on OpenStack, it's natural that they want to run a lot of their analytics workloads on the same type of dynamically provisioned infrastructure. Emerging, of course, we just announced on Monday this week with Hortonworks and IBM, if they're running a lot of their enterprise applications on a Kubernetes substrate like OpenShift, they want to run their analytics workloads on that same kind of agile infrastructure. >> Talk about the private cloud impact and hybrid cloud because obviously we just talked to the CEO of Hortonworks. Normally it's about early days, about Hadoop, data legs and then data planes. They had a good vision. They're years into it, but I like what Hortonworks is doing. But he said Kubernetes, on a data show Kubernetes. Kubernetes is a multi-cloud, hybrid cloud concept, containers. This is really enabling a lot of value and you guys have OpenShift which became very successful over the past few years, the growth has been phenomenal. So congratulations, but it's pointing to a bigger trend and that is that the infrastructure software, the platform as a service is becoming the middleware, the glue, if you will, and Kubernetes and containers are facilitating a new architecture for developers and operators. How important is that with you guys, and what's the impact of the customer when they think, okay I'm going to have an agile DevOps environment, workload portability, but do I have to build that out? You mentioned people don't have to necessarily do that anymore. The trend has become on-premise. What's the impact of the customer as they hear Kubernetese and containers and the data conversation? >> You mentioned agile DevOps environment, workload portability so one of the things that customers come to us for is having that same thing, but infrastructure agnostic. They say, I don't want to be locked in. Love AWS, love Azure, but I don't want to be locked into those platforms. I want to have an abstraction layer for my Kubernetese layer that sits on top of those infrastructure platforms. As I bring my workloads, one-by-one, custom DevOps from a lift and shift of legacy apps onto that substrate, I want to have it be independent, private cloud or public cloud and, time permitting, we'll go into more details about what we've seen happening in the private cloud with analytics as well, which is effectively what brought us here today. The pattern that we've discovered with a lot of our large customers who are saying, hey, we're running OpenStack, they're large institutions that for lots of reasons they store a lot of their data on-premises saying, we want to use the utility compute model that OpenStack gives us as well as the shared data context that Ceph gives us. We want to use that same thing for our analytics workload. So effectively some of our large customers taught us this program. >> So they're building infrastructure for analytics essentially. >> That's what it is. >> One of the challenges with that is the data is everywhere. It's all in silos, it's locked in some server somewhere. First of all, am I overstating that problem and how are you seeing customers deal with that? What are some of the challenges that they're having and how are you guys helping? >> Perfect lead in, in fact, one of our large government customers, they recently sent us an unsolicited email after they deployed the first 10 petabytes in a deca petabyte solution. It's OpenStack based as well as Ceph based. Three taglines in their email. The first was releasing the lock on data. The second was releasing the lock on compute. And the third was releasing the lock on innovation. Now, that sounds a bit buzzword-y, but when it comes from a customer to you. >> That came from a customer? Sounds like a marketing department wrote that. >> In the details, as you know, traditional HDFS clusters, traditional Hadoop clusters, sparklers or whatever, HDFS is not shared between clusters. One of our large customers has 50 plus analytics clusters. Their data platforms team employ a maze of scripts to copy data from one cluster to the other. And if you are a scientist or an engineer, you'd say, I'm trying to obtain these types of answers, but I need access to data sets A, B, C, and D, but data sets A and B are only on this cluster. I've got to go contact the data platforms team and have them copy it over and ensure that it's up-to-date and in sync so it's messy. >> It's a nightmare. >> Messy. So that's why the one customer said releasing the lock on data because now it's in a shared. Similar paradigm as AWS with EMR. The data's in a shared context, an S3. You spin up your analytics workloads on AC2. Same paradigm discussion as with OpenStack. Your spinning up your analytics workloads via OpenStack virtualization and their sourcing is shared data context inside of Ceph, S3 compatible Ceph so same architecture. I love his last bit, the one that sounds the most buzzword-y which was releasing lock on innovation. And this individual, English was not this person's first language so love the word. He said, our developers no longer fear experimentation because it's so easy. In minutes they can spin up an analytics cluster with a shared data context, they get the wrong mix of things they shut it down and spin it up again. >> In previous example you used HDFS clusters. There's so many trip wires, right. You can break something. >> It's fragile. >> It's like scripts. You don't want to tinker with that. Developers don't want to get their hand slapped. >> The other thing is also the recognition that innovation comes from data. That's what my takeaway is. The customer saying, okay, now we can innovate because we have access to the data, we can apply intelligence to that data whether it's machine intelligence or analytics, et cetera. >> This the trend in infrastructure. You mentioned the shared context. What other observations and learnings have you guys come to as Red Hat starts to get more customer interactions around analytical infrastructure. Is it an IT problem? You mentioned abstracting the way different infrastructures, and that means multi-cloud's probably setup for you guys in a big way. But what does that mean for a customer? If you had to explain infrastructure analytics, what needs to get done, what does the customer need to do? How do you describe that? >> I love the term that industry uses of multi-tenant workload isolation with shared data context. That's such a concise term to describe what we talk to our customers about. And most of them, that's what they're looking for. They've got their data scientist teams that don't want their workloads mixed in with the long running batch workloads. They say, listen, I'm on deadline here. I've got an hour to get these answers. They're working with Impala. They're working with Presto. They iterate, they don't know exactly the pattern they're looking for. So having to take a long time because their jobs are mixed in with these long MapReduce jobs. They need to be able to spin up infrastructure, workload isolation meaning they have their own space, shared context, they don't want to be placing calls over to the platform team saying, I need data sets C, D, and E. Could you please send them over? I'm on deadline here. That phrase, I think, captures so nicely what customers are really looking to do with their analytics infrastructure. Analytics tools, they'll still do their thing, but the infrastructure underneath analytics delivering this new type of agility is giving that multi-tenant workload isolation with shared data context. >> You know what's funny is we were talking at the kickoff. We were looking back nine years. We've been at this event for nine years now. We made prediction there will be no Red Hat of big data. John, years ago said, unless it's Red Hat. You guys got dragged into this by your customers really is how it came about. >> Customers and partners, of course with your recent guest from Hortonworks, the announcement that Red Hat, Hortonworks, and IBM had on Monday of this week. Dialing up even further taking the agility, okay, OpenStack is great for agility, private cloud, utility based computing and storage with OpenStack and Ceph, great. OpenShift dials up that agility another notch. Of course, we heard from the CEO of Hortonworks how much they love the agility that a Kubernetes based substrate provides their analytics customers. >> That's essentially how you're creating that sort of same-same experience between on-prem and multi-cloud, is that right? >> Yeah, OpenShift is deployed pervasively on AWS, on-premises, on Azure, on GCE. >> It's a multi-cloud world, we see that for sure. Again, the validation was at VMworld. AWS CEO, Andy Jassy announced RDS which is their product on VMware on-premises which they've never done. Amazon's never done any product on-premises. We were speculating it would be a hardware device. We missed that one, but it's a software. But this is the validation, seamless cloud operations on-premise in the cloud really is what people want. They want one standard operating model and they want to abstract away the infrastructure, as you were saying, as the big trend. The question that we have is, okay, go to the next level. From a developer standpoint, what is this modern developer using for tools in the infrastructure? How can they get that agility and spinning up isolated, multi-tenant infrastructure concept all the time? This is the demand we're seeing, that's an evolution. Question for Red Hat is, how does that change your partnership strategy because you mentioned Rob Bearden. They've been hardcore enterprise and you guys are hardcore enterprise. You kind of know the little things that customers want that might not be obvious to people: compliance, certification, a decade of support. How is Red Hat's partnership model changing with this changing landscape, if you will? You mentioned IBM and Hortonworks release this week, but what in general, how does the partnership strategy look for you? >> The more it changes, the more it looks the same. When you go back 20 years ago, what Red Hat has always stood for is any application on any infrastructure. But back in the day it was we had n-thousand of applications that were certified on Red Hat Linux and we ran on anybody's server. >> Box. >> Running on a box, exactly. It's a similar play, just in 2018 in the world of hybrid, multi-cloud architectures. >> Well, you guys have done some serious heavy lifting. Don't hate me for saying this, but you're kind of like the mules of the industry. You do a lot of stuff that nobody either wants to do or knows how to do and it's really paid off. You just look at the ascendancy of the company, it's been amazing. >> Well, multi-cloud is hard. Look at what it takes to do multi-cloud in DevOps. It's not easy and a lot of pretenders will fall out of the way, you guys have done well. What's next for you guys? What's on the horizon? What's happening for you guys this next couple months for Red Hat and technology? Any new announcements coming? What's the vision, what's happening? >> One of the announcements that you saw last week, was Red Hat, Cloudera, and Eurotech as analytics in the data center is great. Increasingly, the world's businesses run on data-driven decisions. That's great, but analytics at the edge for more realtime industrial automation, et cetera. Per the announcements we did with Cloudera and Eurotech about the use of, we haven't even talked about Red Hat's middleware platforms, such as AMQ Streams now based on Kafka, a Kafka distribution, Fuze, an integration master effectively bringing Red Hat technology to the edge of analytics so that you have the ability to do some processing in realtime before back calling all the way back to the data center. That's an area that you'll also see is pushing some analytics to the edge through our partnerships such as announced with Cloudera and Eurotech. >> You guys got the Red Hat Summit coming up next year. theCUBE will be there, as usual. It's great to cover Red Hat. Thanks for coming on theCUBE, Brent. Appreciate it, thanks for spending the time. We're here in New York City live. I'm John Furrier, Dave Vallante, stay with us. All day coverage today and tomorrow in New York City. We'll be right back. (upbeat music)

>> Narrator: Live from San Francisco, it's theCUBE. Covering Red Hat Summit 2018. Brought to you by Red Hat. >> And welcome back once again to theCUBE. We're here live and open in this open-source conference, Red Hat Summit 2018 here in Moscone Center in San Francisco. My name's John Troyer. We are coming close to the end of the day three of Red Hat Summit. Been here, catching all the live coverage on theCUBE.net. Great to have with us: our two guests here from UPS, Innovation Award winners here at the show, gentlemen, welcome. >> Thank you. >> Thank you. >> Mark Falto and Dan Savarese. So, welcome folks. So, we're going to talk about your journey to using OpenShift, how you guys picked it, what you guys stood up, and as we were just kind of, I saw the on-stage story, and as I was just talking to you now before we went live, I'm just so impressed by the time to market, time to value, that you guys were able to achieve. You and your teams. Which, if you think about it is really, the fact that this is a real story, and it's not just a marketing example is really great. We're living, and sometimes I wake up and I say we're living in wonderful times in 2018. So, Dan, kind of set the stage for us. You are a principal infrastructure architect, you're one of the folks that helped bring the system in, you were already Red Hat Linux ... >> Yes we were. >> ... users, but what were you looking at as you were trying to make this decision, and what were some of the drivers to bring OpenShift in-house? >> Well, we knew we wanted to go cloud, but we weren't sure whether it was public or private, so we felt that in order to start the transformation to cloud we should really focus on private. These boundaries to get that up and running, and a way to modernize our applications to be cloud ready. So that was the goal when we set this up. We had a very tight timeline, we had applications that wanted to go cloud, so we made the decision... >> Mark Falto: (mumbles) was knocking at the door. >> Everybody was knocking at the door. Right, so it was a matter of just what did we want to do? Like anything, we viewed a number of different private cloud solutions, and we really liked OpenShift because of it's flexibility, it's open-source capabilities, and the fact that it was... docket containers, which was our container strategy going forward, which we wanted to use. >> Was this the beginning of your container strategy? Had you been using them before? >> No, we hadn't been using them before. We just made the decision, prior to making the cloud decision, that we wanted to go containers and docket with the containers that we wanted to use. >> So, you some sort of evaluation, you say you know, this seems like something worth happening. In the olden days, we'd go off and you'd do some sort of POC, and you'd spend a couple months doing that, and then you'd look at it, and what are the toy projects? >> Dan Savarese: Right, yeah. >> You guys wanted to actions, so can you talk a little bit about that and the timeline there? >> Right, so we made the decision in late fall 2016 to do this. My team runs all the infrastructure, architecture, so we work with the applications to design new architectures for them, and basically we started working with Red Hat on success criteria that we established for the product, and then once we got through that we started having sessions with Red Hat and using collaborative dev ops approach with everybody in your organization who'd be affected by this private cloud we're putting in. So Mark, our info sec folks, our networking folks. We were on a very tight timeline, we had an application wanting to go quickly as possible, and they wanted to be up and running in like the late spring, early summer timeframe, so they didn't give us much time. So, a lot of work and effort into figuring out how we wanted our architects OpenShift for, not only to be operationally successful for us, but from an application perspective. So, it was important we do this in a collaborative manner, and get everybody's input in doing that. >> Yeah, that's something that's going to be interesting to dip into, right, because you can't just turn on speed like that. As I've been kind of jokingly referring to, right, you have to turn into kind of a dev ops in an agile organization. Even at the infrastructure layer. >> [Dan Savarese} Yep. >> So, Mark, within a few months you've got OpenShift up and running. Now you've got to put some apps on it. These are not new apps. You have all your existing portfolios still having to run, but so, yeah, what were you looking at putting up there, and how did you approach that in terms of native practice. >> Our strategy was to take new applications. We're trying to find app teams that we thought had at least a sophisticated enough process that they could take on the automation that we really wanted to drive with the platform as well, right? It was not just containerization, but the transformation in dev process that came with that. So it's get a pipeline in place. Understand how to use Jenkins, how to use the plugins that are necessary to make that happen. You need the right app teams that are ready to take that on. We had an example application as part of our edge initiative called Sipe, which that team we thought was ready to take this on, it was the only way we were really going to meet their timelines, too. So we worked with them for a number of weeks, and not just us, but we also had Red Hat partners helping us too, to freely build out the automation for the pipelines, get an example running for their complete automated pipeline. >> Right, so can you describe a little bit what it does? It's a business line app to help managers do some decision making and planning. >> Yeah, it's a decision assistance application for supervisors at hub facilities where, you know, where you move packages. >> Okay, so real business impact. Before, they had, I don't know what they were... Either papers, or... >> Most of it was manual processes, and it wasn't like the speed to market. The information wasn't real-time, so Sipe was all about driving real-time decisions in the field. >> Right, right, so it must have had an immediate impact, then. So, it sounds like you were up, and then also within a few months of it. >> Yes. Yeah, yeah. I mean, we're able to get at least a pipeline going within weeks for them, and that demonstrates the capacity to get yourself to production, right? And then, they're in production within a number of months after that. A couple of months after that. >> Yeah, that's great, and I'm assuming you'd then be able to revise it and kind of improve the functionality since. That and some other apps. >> Mark Falto: Yep, yep, yeah. >> Was that a big shift for you and your developers, to kind of get to this stance, of frequent releases and a pipeline? >> Yeah, it's a huge process shift, it's a cultural shift for app teams, they have more capability from the infrastructure than they have ever had before. So, they now have tools to deliver much faster than they're used to, so they change their team structures to help us facilitate that. They bring in Red Hat or other consultants to help them backfill their skillsets, so it's big transformation, yeah. >> Nice, nice. Now, I wanted to explore a little bit. One word you hear a lot here: hybrid cloud, multi cloud, we've been hearing that a lot this week. This particular app runs on Prem, right? >> Dan Savarese: Runs on Prem, yes. >> Let's make sure we it right, on PremiSys. >> Dan Savarese: On PremiSys, right. It runs actually, between today at the centers. >> Yeah, I'll get extra bonus points for that. But, as a portfolio that you have to manage, your IT department and infrastructure, UPS does take advantage of different clouds and different code running and different places, as well as sas and everything else, I'm sure. Can you talk a little bit about to portfolio? >> Sure, so we have a wide variety, as companies as large as UPS, you can imagine we have a lot of IT solutions. We leverage all of them to our benefits, so we have past solutions in the cloud, a lot of analytic stuff that we'll do out there, and we also have a lot of sas solutions that we use to do different various works across our organization. So, we are using cloud in multiple ways. Out next journey is hybrid cloud. How do we take OpenShift now, 'cause what we have is a situation where we need a lot of processing power for what we call out peak season, Christmas of course, right, but when we size today on OnPrem we size for that peak season. So, the challenge is for us now is how can we use OnPrem for, say, nine months out of the year, then expand into the cloud for peak season, reduce cost, and then drop that down after we're done with peak season? To really drive us really efficiently from across the spectrum. >> Right, right, right, and obviously OpenShift is going to be a probably key element to that. >> Dan Savarese: It is a key element. It is a key element. >> Yeah. You know, this only took a, this journey was, if you just look at the timeline we just talked about, really only a few months, and it seems like this was kind of a corner-turn for your engineering organization. I mean, is that inaccurate? >> I would say so, both from an infrastructure perspective, the biggest thing when you run a common environment, which we do in OpenShift, in other common environments you have no control over how the applications affect one another. For us, what we like about OpenShift, it gives us that capability, so application 'A' doesn't step on application 'B'. And, I think, for us, it just made our lives a lot easier from an operational perspective for that reason. >> Right, it wasn't about the tool, but the tool helped enable the processes, and then that yielded the time to market and time to value. >> Yeah, and from an app side, building these new architectures really requires containerization. It requires the automations, so we can't attack the proper microservice patterns and practices really without OpenShift as a platform underneath it. It's foundational. >> And I'd like to stress the fact that it really was all of us knew we had to get something done. We all came together. There was no... The silos were merely broken down. We knew we had a mission to get through, we knew had something to get done in a short period of time, and we just came together in such a strong, collaborative way of driving the solution. >> Wow, that's great, and congratulations. Innovation Award here at the show, it's been a great week here at Red Hat Summit. So, Mark Falto, Dan Savarese from UPS. Congrats, and thanks for being here on theCube. >> Well, thank you John. >> All right. Well we are here live in San Francisco. We are finishing up day three. We'll be back after a short break, and all of our live coverage of Red Hat Summit on theCube. (light percussive music)

>> Let me check. (uptempo orchestral music) (uptempo techno music) >> Live, from San Francisco, it's theCUBE! Covering Red Hat Summit 2018. Brought to you by Red Hat. >> Hey welcome back everyone, we are live here with theCUBE in San Francisco, Moscone West, for Red Hat Summit 2018. I'm John Furrier, co-host of theCUBE, with John Troyer co-host, analyst this week. the TechReckoning co-founder. Our next two guests are Ashesh Badani, vice president and general manager of OpenShift Platform and Alex Polvi, CEO of CoreOS, interview of the week because CoreOS now part of Red Hat. Congratulations, good to see you again. Thanks for coming on theCUBE. >> You're welcome. >> So obviously this is for us, we've been covering both of you guys pretty heavily and we've been commenting very positively around the acquisition of CoreOS. Two great companies that know open-source, pure open-source. You guys got the business model nailed down, these guys got great tech. You bring it together. So the first question is how's everyone doing? How's everyone feeling? And where's the overlap, if any and where's the fix? Explain the true fit of CoreOS. >> I'm going to start Alex, you want to jump in after. We're very excited right, so when we first had interactions with CoreOS, we knew this is going to be a great fit. The conversation we had earlier, both companies delivers in open-source, delivers in the mission center to take us forward regard to Kubernetes, as the container orchestration engine, and then being able to build out value for our customers around it. I think from our perspective, the work that both CoreOS did in advancing the community forward but also the work they've done around automation or their upgrades, management metering, charge back and so on. Being able to bring all those qualities into Red Hat is incredible. So I think the fits been good. It's been three months, I'll let Alex comment some more on that but we've been doing a lot of work from integration perspective around engineering, around product management. At Red Hat Summit this week, we reveal details around some of the converged road maps, which I can talk about some more as well. So we're feeling pretty good about it. >> Alex, your reaction. >> Yes, it's been three months. If you've studied CoreOS at all, you know everything that we do really centers around this concept of automated operations. And so by being part of Red Hat, we're starting to bring that to market in a much bigger and faster way of really accelerating it. The way the acquisition are really successful is either mutually beneficial to both companies and they accelerate the adoption of technology and that's definitely happening. We had the announcement yesterday with Red Hat CoreOS around the Linux distribution. Last week, we did the operator framework. It was very central to the work that we've been doing as part of CoreOS, and then as companies in a lot of ways is being part of Red Hat for three months now. This is what our company would have looked like if we ever just another 10 years along or whatever very similar, we're like a mini Red Hat, and now we're leaped ahead in a big way. >> And you guys done a good work. We've documented on theCUBE many times, and we were in Copenhagen last week. Now covering the operating framework but I want to get your reaction. You guys did a lot of great work on the tech side obviously, you can go into more detail but we've always been saying on theCUBE. If you try to force monetization in these emerging markets, you're optimizing behavior. And this was something that's gone on, we've seen containers. It's been well documented obviously what's happened. It's certainly a beautiful thing. Got Kubernetes now on top working together with that. If as an entrepreneur out there that are building companies. If you try to force the monetization too early, you really thinking differently. You guys stay true to it. Now we've got a good home with Red Hat. Talk about that dynamic because that was something that I know you guys faced at CoreOS and you've managed through it. Tempted probably many times to do something. Talk about the mission that you had, staying true to that and just that dynamic. It's challenging. >> Yeah, as we set out to build a company in general, there are really three operating principles. There is build a great technology to solve our mission which is to secure the internet through automated operations, build a great place to spend their days which is really about the people and the culture and so on. Why are we doing this, and the third was to make it sustainable and by that I mean to build their own money fountains, building out of the middle of our campus. And so by joining Red Hat it's we have a money fountain sitting there. (laughing) It's spewing off a ton of cash flow every single quarter that allows us to continue to do those first two things in perpetuity, and that third one is something every company needs in order to continue to execute towards the mission. And the thing that's so awesome about working with Red Hat is we're very much aligned and compatible. Red Hat's mission isn't exactly the same thing we are working but it's definitely compatible. It's like Apache and GPL are compatible. It's like that type of compatible. >> You both believe in open-source in a big way. Talk about the Red Hat perspectives. Now you got like a kid in a candy store. Openshift made a big bed with Kubernetes. You see now, you have the CoreOS, how has it changed in Red Hat internally? Things moving around actually accelerates the game a bit for you guys, and you're seeing new life being pumped into OpenStack. You're seeing clear line of sight with Kubernetes on the app side. We were just at KubeCon. A lot of people are pretty excited. There's clear lines of sight on what's defacto. What people are going to build around, and also differentiate. >> Right, so I'll start off by saying I really hope our CEO, Jim Whitehurst doesn't see this interview but if it goes off in terms of money factor. I'm currently make budget request. I think I know what's going on. >> Balance sheet, cashless now. It's in the public filings. If I see a fountain of money spewing off the thing, >> The ability to reinvest. >> This is a really good fit. (laughing) The way to say this, they have a great business model. >> Yeah, yeah. >> Some of us will make money, some of us will spend the money. Some of us will spend the money, it will work out well. (laughing) >> It's a great win. It's a great win. It obviously accelerates the plans. The commercialization is already there with Red Hat. This is just a good thing for everybody but the impact of you guys accelerating, just seeing OpenShift. You can boil it down to the impact of Red Hat. What is the impact? >> So in all seriousness, I think the focus for us really has been about there is so much complimentary work that's been going on with the CoreOS team that we're bringing into OpenShift, and to Red Hat in general that accelerates everything that you're seeing. You saw some amazing announcements happen this week with regard to our partnership with Microsoft and getting OpenShift out and Azure, and joint support offering. The work we're doing with IBM to get IBM middleware as well as IBM Cloud Private support integrated with OpenShift. The work that Alex referred to around automation, being able to bring that to our customers. We see all the excitement around that front as well so we want to take all Techtonic work that has been going on at CoreOS, then move that to OpenShift. Carry forward the community that CoreOS built around Container Linux, and actually inject a lot those ideas into that Linux, our flagship technology. Bring that passion and energy to bear as well, and then carry forward a lot of the other projects that they have. For example, the Quake Container Registry, that's extremely popular. Carry that forward, support our customers to use that both stand alone integrated with the OpenShift platform. Other projects like FCB that Alex has been talking about which is the underpinnings of Kubernetes plus running worldwide. So all of those things, we can bring forward, and then all the advancements that were made in place by CoreOS as they're working towards their money fountain, just plug that right into it. >> And just as a point of reference, Brendan Burns flew in yesterday. Microsoft Build is going up so he left their own conference to come down here. >> As did Scar Guthrie, right? >> That's a great testament. This is the testament. They're coming down, really laying down support. This is a real big deal. This is not a fake deal, it's real. >> And so I want to talk a little bit about specifics of the timeline, the road maps. Sometimes with these mergers or acquisitions, it's well the technology will be incorporated at some point, and then it goes away to die and you never see it again. And then the people all leave, and then you ask what was going on. But here, you actually have, I was great. You were talking to me. You have some specific timelines and we'll start to see some of the Techtonics Stack in OpenShift fairly soon. >> Yes, absolutely so the acquisition was announced three months ago and we said at that time that by Red Hat Summit, we'll lay out for you a road map and so we're now starting to do that. We put out release of some materials around some details with regard to how that's coming out. We have detailed sessions going on at Red Hat Summit around the integration plans between Red Hat, OpenShift and CoreOS with a few specific areas with regard to OpenShift. You'll start seeing the earliest versions if you will of the work that's being done. This summer, we'll deliver the full road map to you there by the end of this calendar year. With regard to, for example pieces like the Quake Container Registry that's being made available and being sold now as we speak. Customers can go get that, and we want to make sure no customer is left behind. Right, that's a principle we put out. And with regard to supporting any existing customers on Techtonic or the Container Linux space, we're doing that as we're working to integrate them into the Red Hat portfolio. Can you talk a little bit about the decision for Red Hat's atomic coast and Container Linux? Now re-named again, CoreOS. That was one of the seminal inventions that you all made as you started the company. I think it had some brilliant ideas again about security and the operational aspects but can you talk about some of those technologies and the decisions made there? >> Yeah, like I said, the acquisition of CoreOS Red Hat was about saying look what can we take that CoreOS has been doing to accelerate both work and community but also what could be doing to deliver this technology to customers. So the goal was we'll take all the atomic and the word that's been going on there have that be superseded by the work that's coming out of CoreOS Container Linux carry the community forward. Release a version of that called Red Hat CoreOS and in its initial form make that actually an underlying environment to run OpenShift in. Okay so for customers who want the automation that Alex talked about earlier. They made that available both at the underlying platform. Make it available in OpenShift platform itself via the work that's come from Techtonic, and then ultimately, Alex will talk about this some more through operators. So trusted operations from ISP or third party software that would run on the platform. All right so now if you will, we'll have full stack automation all the way through. OpenShift also support Red Hat Linux, a traditional environment for the thousands of customers that we have globally. Over a period of time, you should expect to see much of the work that's going on Red Hat CoreOS find its way into it as well. So I think this just benefits all around for us both in the near term as well as long. >> And Red Hat Container certification, where does that fit into all this? >> Yeah, a great question, so what we announced maybe was, actually was two years ago was a Container certification program. Last year, we spent some time talking about the health of those containers, and being able to provide that to customers. And this year, we're talking about trusted operations around those containers. That carries forward, we've got hundreds of ISPs that have built certified containers around it, and now with the operator framework, we've had, I think it's four ISPs demonstrating previews of their operators working with our platform as well as 60 more that are committed to building ISP operators that will be certified again. >> So people are certified in general, pretty much. I think we're very excited. The fact that we went to KubeCon last week, announced that the operating framework have been based on the ideas that the CoreOS team has been working on for at least two years. Making that available to the community and then saying for the ISPs that want a path to market. Going back to the money fountain again for the ISP that want to pass through market which is pretty much all of them. We also have the ability to do that so give them an opportunity to make sure that as wide as possible some adoption of the software at the same time help with commercialization. >> Can you guys share your definition of operator because I saw the announcement but we we're on a broader definition when we see the DevOps movement going the next level. It's all about automation and security, you mentioned that admin roles are being automated in a way to see more of an operator function within enterprise and emerging service providers. So the role operator now takes on two meanings. It's a software developer. It also is a network operator, it's also a service, so what is that, how do you guys view that role because if this continues, you're going to have automation. More administrator is going to be self healing, all this stuff is going to go on. Potentially operations is now the developers and IT all blurring together. How do you guys define the word operator in the future state? >> Well I know the scenario of great interest to you. >> So operator is the term for the piece of software that implements the automated operations. And so automated operations, what is that? Well that's what sets apart, the way I think about it is what sets apart a cloud provider verses a hosting provider. It's a set of software that really runs the thing for you and so if we're going to get into specific Kubernetes lingo, it would be an application specific controller. That's a piece of software that's implements the automated operations. And automated operation is a software that gives you that simplicity of cloud. It's at the core of a database as a service. It's both hosting but also automated operations. Those two things together make up a cloud service and that software piece is what we're decoupling from the hosting providers for the first time and allowing any open-source project or ISP brings the simplicity of cloud but in any environment. And that's what the operator is a piece of software that actually goes and implements that. >> So a microservices framework, this fits in pretty nicely. How do you see obviously? >> Microservices, there's all these terms. Microservice is more of an architecture than anything but it's saying look, there's these basic things that every operations team has to go and do. You have to go and install something, you have to upgrade it, you have to back it up, when it crashes in the middle of the night, get it going again. A lot of these things, the best practices for how you do them are all common. There's no ingenuity in it. And for those things, we can now because of Kubernetes write software that just automates it, and this was not possible five years ago. You couldn't write those software. There were things like configuration management systems and stuff like that that would allow companies to build their own custom versions of this. But to build a generic piece of software that knows how to run application like Prometheus or a database or so on. It wasn't possible to write that and that's what the first four or five years of CoreOS was is making it possible, that's why you saw all these mat and new open-source projects being built. But once it was possible it was like let's start leveraging that. You saw the first operator come out about a year ago, and I think it was our ATD operator was the first one, and we started talking about this as a concept. And now we're releasing operator framework which is from all the learnings of building the first couple. We now made a generic, so anybody can go and do it, and as part of Red Hat, we're now bringing it to the whole ISP ecosystem. So the whole plan to make automated operations ubiquitous is still well underway. >> I'd love to extend that conversation though to the operator, the person. >> Right. I think you and your team brought the perspective of the operational excellence right to the table. A lot of cloud has been driven by the role of developer and DevOps but I've always felt like well wait a minute operators the people who use to be known as IT insisted they had a lot to bring to the table too about security and about keeping things running, and about compliance and about all that good stuff. So can you talk a little bit as you see the community emerging, and as you see all these folks here. How do you talk to people who want to understand what their role is going to be with all this automation in keeping the clouds running? >> Computers use to be people too. (laughing) But we're not going to completely automate away everything because there's still parts of this wildly complex system that justifies whole conferences of thousands of people that require a whole lot of human ingenuity. What we're doing is saying let's not like do the part that is the fire drill in the middle of the might that keeps you from making forward progress. The typical role of an operations person today is just fighting fires of mundane things that don't actually add a lot of value to the business. In fact, this guy is difficult because you only get brought up when things are on fire. You never get an praise when things are going well. And so what we want to do is help the operations folks put out those fires like the security updates. Let's just roll those out automatically. The way you do those across all organizations does not need to be special and unique but they're really critical to do right. >> Well it's just automate that stuff away and let the operations team focus on moving the business forward. The parts that require the human spirit to actually go and do, and if we get to a point where a CEO of a company is like, wow, I can not come up with a new vision for this imitative 'cause my operations team are just so fast at influencing them. Then we have to start worrying about operations people's job but I don't see that happening for a very long time. >> And no one is going to be sitting around twiddling their thumbs either. >> Let me just extend that point a little bit. The whole point of operators is to encapsulate human knowledge that ISPs have and bring that in the platform and automate it. So the challenge that we've had is an operations person is required to know a lot about a lot. So the question then really is how can we at least take some of what's already known by people and be able to replicate that and that allows for every one to move forward. I think that's just forward-- >> Well, there's a bigger picture beyond that, so I agree but there is also scale. With cloud, you have scale issues. So with scale automation is a beautiful thing 'cause the fire has also grown exponentially too so you can't be operating like this. Scale matters, super. >> The reason that this stuff was invented at Google initially was not because of Google's high career per second. Is that they were, to build the application they're building required so many servers that you couldn't hire enough operations people without writing software to automate it. So they were forced to custom design the system because they had so many servers to run to build the software that they wanted to build. And other companies are just now getting to that point because every company is going through a digital transformation. They have to have thousands of servers just to run their applications. There's no way you're just going to hire the operations staff to go and do it all by hand. You have to write software to turn the operations people into mech warriors of running servers. You need to wrap them in automation in order to scale that. >> At KubeCon, she made a comment that all those operations folks at Google are software developers. >> Brand engineers. >> Brand engineering, so they're not Ops guys just pushing buttons and provisioning gear and what not. They're actually writing code. You bring up the Google piece, the other piece that we heard at KubeCon. We hear this consistently that this is now a new way to do software development. So when a former Googler went to work for another company, left Google. She went in and she said, "Oh my God, you guys don't do. "You don't use board?" To her, she's like how do you write software? So she was like young and went out in the real world and was like wait a minute, you don't do this? So this is a new model in software development at scale with these new capabilities. >> I think so and I think what's really important is the work we're doing with regards to an ecosystem perspective to help folks. So one of the top things I hear from customers all the time is this sounds fantastic. Everyone's talking about DevOps or microservices or wanting to run Kubernetes at scale. Do I have the skills? Can I keep up with the change that's in place and how do I continue going forward around that? So we announced at Red Hat Summit Managed offerings from let's say Atos and DXC where you've got goals to integrate us helping folks, or companies like Extension T systems. The CEO came and spoke today about the work we're doing with them to help connected cars, and those applications be rolled out quick and fast. I think it's going to take a village to get us to where we want to because the rate of change is so fast around all of these areas and it's not slowing down that we'll have to ensure there's more automation and then there's more enablement that's going on for our customers. >> So some clarity, can you guys comment on your reaction to obviously we've seen OpenStack has done over the years and now with well Containers, now Kubernetes. You seeing at least two ecosystems clearly identified. Application developers, cloud native and then I would call under the hood infrastructure, you got OpenStack. Almost it clarifies where people can actually focus on real problems that the Kubernetes needs. So how has the Container, maturation of Containers with Kubernetes clarified the role of the community? If this continues with automation, you can almost argue that the clarity happens everywhere. Can you comment on how you see that happening? Is it happening or is it just observation that's misguided? >> I think we're getting better with regard to fit for a purpose or fit for use case. All right, so if you start thinking about the earliest days of OpenStack. OpenStack is going to be AWS in a box, and then you realize well that's not a practical way of thinking about what a community can do a build at scale. And so when you start thinking about a Word appropriate use case for this. Now you start betting if you will, a set of scales, you set expectations around how to make that successful. I think we'll go through the same if we haven't already or even going through it with regard to Kubernetes. So not every company in the world can run Managed World call. DYI Kubernetes, don't many companies will start with that. And so the question is how do we get to the point where there's balance around it and then be able to take advantage of the work? For example, companies like Red Hat work for us was doing to help accelerate that path 'cause to the point Alex was trying to make is the value for them being able to keep up with the core release of Kubernetes? And every time a bug shows up to go off and be able to fix and patch it, and watch that or is the value building the next set of applications set on top of platforms. >> That's great, well congratulations guys. Thanks for coming on theCUBE. Appreciate the insight. Congratulations on the three months into Red Hat. Good fit, and enjoy the rest of the show. Thanks for coming on, I appreciate it. >> Thanks. >> Live from Red Hat Summit, it's theCUBE's coverage here of Red Hat and all the innovation going on out in the open. We're here in the middle of, we open the floor with Moscone West with live coverage. Stay with us for more after this short break. (uptempo techno music)

>> [Announcer] 18, brought to you by Red Hat >> Well, welcome back everyone. This is theCUBE's exclusive coverage here in San Francisco, California, for Red Hat Summit 2018. I am John Furrier, co-host of theCUBE with my analyst co-host this week, John Troyer, co-founder of the TechReckoning advisory services. And our next guest is Arvind Krishna, who is the Senior Vice President of Hybrid Cloud at IBM and Director of IBM Research. Welcome back to theCUBE, good to see you. >> Thanks John and John great to meet you guys here. >> You can't get confused here you've got two John's here. Great to have you on because, you guys have been doing some deals with Red Hat, obviously the leader at open storage. You guys are one of them as well contributing to Linuxes well documented in the IBM history books on your role and relationship to Linux so check, check. But you guys are doing a lot of work with cloud, in a way that, frankly, is very specific to IBM but also has a large industry impact, not like the classic cloud. So I want to tie the knot here and put that together. So first I got to ask you, take a minute to talk about why you're here with Red Hat, what's the update with IBM with Red Hat? >> Great John, thanks for giving me the time. I'm going to talk about it in two steps: One, I'm going to talk about a few common tenets between IBM and Red Hat. Then I'll go from there to the specific news. So for the context, we both believe in Linux, I think that easy to state. We both believe in containers, I think that is the next thing to state. We'll come back talk about containers because this is a world, containers are linked to Linux containers are linked to these technologies called Kubernetes. Containers are linked to how you make workloads portable across many different environments, both private and public. Then I go on from there to say, that we both believe in hybrid. Hybrid meaning that people want the ability to run their workload, where ever they want. Be it on a private cloud, be it on a public cloud. And do it without having to rewrite everything as you go across. Okay, so let's establish, those are the market needs. So then you come back and say. And IBM has a great portfolio of Middleware, names like WebSphere and DB2 and I can go on and on. And Red Hat has a great footprint of Linux, in the Enterprise. So now you say, we've got the market need of hybrid. We've got these two thing, which between them are tens of millions, maybe hundreds of millions of end points. How do you make that need get fulfilled by this? And that's what we just announced here. So we announced that IBM Middleware will run containerized on Red Hat containers, on Red Hat Enterprise Linux. In addition, we said IBM Cloud Private, which is the ability to bring all of the IBM Middleware in a sort of a cloud-friendly form. Right you click and you install it, it keep it self up, it doesn't go down, it's elastic in a set of technologies we call IBM Cloud Private, running in turn on Red Hat OpenShift Container service on Red Hat Linux. So now for the first time, if you say I want private, I want public, I want to go here, I want to go there. You have a complete certified stack, that is complete. I think I can say, we're a unique in the industry, in giving you this. >> And this is where, kind of where, the fruit comes off the tree, for you guys. Because, we've been following you guys for years, and everyone's: Where's the cloud strategy? And first of all, it's not, you don't have a cloud strategy you have cloud products. Right, so you have delivered the goods. You got the, so just to replay. The market need we all know is the hybrid cloud, multi-cloud, choice et cetera, et cetera. >> You take Red Hat's footprint, your capabilities, your combined install base, is foundational. >> [Arvind] Right >> So, nothing needs to change. There's no lift and shift, there's no rip and replace, >> you can, it's out there it's foundational. Now on top of it, is where the action is. That where you're kind of getting at, right? >> That's correct, so we can go into somebody running, let's say, a massive online banking application or they're running a reservation system. It's using technologies from us, it's using Linux underneath and today it's all a bunch of piece pods, you have a huge complex stuff it's all hard-wired and rigidly nailed down to the floor in a few places and now you can say: Hey, I'll take the application. I don't have to rewrite the application. I can containerize it, I can put it here. And that same app now begins to work but in a way that's a lot more fluid and elastic. Or my other way: I want to do a bit more work. I want to expose a bit of it up as microservices. I want to insert some IA. You can go do that. You want to fully make it microservices enabled to be able to make it into little components >> and ultimately you can do that. >> So you can take it in sort of bite size chunks and go from one to other, at the pace that you want. >> [John F.] Now that's game changing. >> Yeah, that's what I really like about this announcement. It really brings best of breed together. You know, there is a lot of talk about containers. Legacy and we've been talking about what goes where? And do you have to break everything up? Like you were just saying. But the announcement today, WebSphere, the battle tested huge enterprise scale component, DB2, those things containerized and also in a frame work like with IBM, either with IBM microservices and application development things or others right, that's a huge endorsement for OpenShift as a platform. >> Absolutely, it is and look, we would be remiss if we didn't talk a little bit. I mean we use the word containers and containerized a lot. Yes, you're right. Containers are a really, really important technology but what containers enable is much more than prior attempts such as VM's and all have done. Containers really allow you to say: Hey, I solved the security problem, I solved the patching problem, the restart problem, all those problems that lie around the operations of a typical enterprise, can get solved with containers. VM's solved a lot about isolating the infrastructure but it didn't solve, as John was saying, the top half of the stack. And that's I think the huge power here. >> Yeah, I want to just double click on that because I think the containers thing is instrumental. Because it, first of all, being in the media and loving what we do. We're kind of a new kind of media company but traditional media is been throwing IBM under the bus since saying: Wow old guard and all these things. Here's the thing, you don't have to change anything. You got containers you can essentially wrap it up and then bring a microservice architecture into it. So you can actually leverage at cloud scale. So what interests me is that you can move instantly, >> value proposition wise, pre-existing market, cloudify it, if you will, with operational capabilities. >> Right. >> This is where I like the Cloud Private. So I want to kind of go there for a second. If I have a need to take what I have at IBM, whether it is WebSphere. Now I got developers, I got installed base. I don't have to put a migration plan away. I containerize it. Thank you very much. I do some cloud native stuff but I want to make it private. My use case is very specific, maybe it's confidential, maybe it's like a government region, Whatever. I can create a cloud operations, is that right? I can cloudify it, and run it? >> Absolutely correct, so when you look at Cloud Private, to go down that path, we said Cloud Private allows you to run on your private infrastructure but I want all these abilities you just described John. I want to be able to do microservices. I want to be able to scale up and down. I want to be able to say operations happen automatically. But it gives you all that but in the private without it having to go all the way to the public. If you cared a lot about, your in a regulated industry, you went down government or confidential data. Or you say this data is so sensitive, I don't really, I am not going to take the risk of it being anywhere else. It absolutely gives you that ability to go do that and that is what brought Cloud Private to the market for and then you combine that with OpenShift and now you get the powers of both together. >> See you guys essentially have brought to the table the years of effort with Bluemix, all that good stuff going on, you can bring it in and actually run this in any industry vertical. Pretty much, right? >> Absolutely, so if you look at part what the past has been for the entire industry. It has been a lot about constructing a public cloud. Not just us, but us and our competition. And a public cloud has certain capabilities and it has certain elasticity, it has a global footprint. But it doesn't have a footprint that is in every zip code or in every town or in every city. That's not what happens to a public cloud. So we say. It's a hybrid world meaning that you're going to run some workloads on a public cloud, I'd like to run some workloads on a private and I'd like to have the ability that I don't have to pre decide which is where. And that is what the containers and microservices, the OpenShift that combination all give you to say you don't need to pre decide. You rewrite the workload onto this and then you can decide where it runs. >> Well I was having this conversation with some folks at a recent Amazon Web services conference. Well, if you go to cloud operations, then the on premise is essentially the edge. It's not necessarily. Then the definition of on premise, really doesn't even exist. >> So if you have cloud operations, in a way, what is the data center then? It's just a connected issue. >> That's right, it's the infrastructure which is set up and then, at that point, the Software Manger, at the data center, as opposed to anything else. And that's kind of been the goal that we're all been wanting. >> Sounds like this is visibly at IBM's essentially execution plan from day one. We've been seeing it and connecting the dots. Having the ability to take either pre-existing resources, foundational things like Red Hat or what not in the enterprise. Not throwing it away. Building on top of it and having a new operating model, with software, with elastic scale, horizontally scalable, Synchronous, all these good things. Enabling microservices, with Kubernetes and containers. Now for the first time, >> I can roll out new software development life cycles in a cloud native environment without forgoing legacy infrastructure and investment. >> Absolutely, and one more element. And if you want to insert some cloud service into the environment, be it in private or in public, you can go do that. For example, you want to insert a couple of AI services >> into the middle of your application you could go do that. So the environment allows you to, do what you described and these additionals. >> I want to talk about people for a second. The titles that we haven't mentioned CIO, Business Leader, Business Unit Leaders, how are they looking at >> digital transformation and business transformation in your client bases you go out and talk to them. >> Let's take a hypothetical bank. And every bank today is looking about simple questions. How do I improve my customer experience? And everybody want, when they say customer experience, really do mean digital customer experience to make it very tangible. And what they mean by that is how do I get my end customer engaged with me through an app. The app is probably in a device like this. Some smart phone, we won't say what it is, and so how do you do that? And so they say: Well, all obviously to check your balance. You obviously want to check your credit card. You want to do all those things. The same things we do today. So that application exists, there is not much point in rewriting it. You might do the UI up but it's an app that exists. Then you say but I also want to give you information that's useful to you in the context to what you're doing. I want say, you can get a 10 second loan, not a 30 day loan, but a 10 second loan. I want to make a offer to you in the middle of you browsing credit card. All those are new customergistics, where do you construct those apps? How do you mix and match it? How do you use all the capabilities along with the data you've got to go do that? And what we're trying to now say, here is a platform that you can go, do all that on. Right, that complete lifecycle you mentioned, the development lifecycle but I got to add to it >> the data lifecycle, as well as, here is the versioning, here are my AI models, all those things, built in, into one platform. >> And scales are huge, the new competitive advantage. You guys are enabling that. So I got to ask you a question on multi cloud. Obviously, as people start building out the cloud on PRIM and with Public Cloud and the things you're laying out. I can see that going on for a while, a lot of work being done there. We're seeing that Wikibon had a true Private Cloud report what I thought was truly telling. A lot of growth there, still not going away. Public Cloud's certainly grown in numbers are clear. However, the word multicloud's being kicked around I think it's more of a future stay obviously but people have multiple clouds Will have relationships with multiple clouds. No one's going to have one cloud. It's not a winner take all game. Winner take most but you know you're have multiple clouds. What does multi cloud mean to you guys in your architecture? Is that moving workloads in real time based upon spot pricing indexes or is that just co-locating on clouds and saying I got this app on this cloud, that app on that cloud, control plane it. These are architectural questions. What the hell is multicloud? >> So there's a today, then there is a tomorrow, then there is a long future state, right? So let's take today, let's take IBM. We're on Salesforce, we're on ServiceNow, we're on Workday, we're on SuccessFactors, well all of there are different clouds. We run our own public cloud, we run our own private cloud and we have Judicial Data Center. And we might have some of the other clouds also through apps that we barter we don't even know. Okay, so that's just us. I think everyone of our clients are like this. The multicloud is here today. I begin with that first, simple statement. And I need to connect the data and can connect when thing go where. The next step, I think people, nobody's going to have even one public cloud. Even amongst the big public clouds, most people are going to have two if not more That's today and tomorrow. >> Your channel partners have clouds, by the way, your Global SI's all have clouds, theCUBE is a cloud for crying out load. >> Right, so then you go into the aspirational state and that may be the one you said, where people just spot pricing. But even if I stay back from spot pricing and completely (mumbles) I make. And I'm worrying about network and I'm worrying about radio reach. If I just backup around to but I may decide I have this app, I run it on private, well, but I don't have all the infrastructures I want to burst it today and I, where do I burst it? I got to decide which public and how do I go there? >> And that's a problem of today and we're doing that and that is why I think multicloud is here now. >> Not some point in the future. >> The prime statement there is latency, managing, service level agreements between clouds and so on and so forth. >> Access control on governance, Where does my data go? Because there may be regulatory reasons to decide where the data can flow and all those things. >> Great point about the cloud. I never thought about it that way. It is a good illustration. I would also say that, I see the same arguments in the data base world. Not everyone has DB2, not everyone has Oracle, not everyone has, databases are everywhere, you have databases part of IoT devices now. So like no one makes a decision on the database. Similar with clouds, you see a similar dynamic. It's the glue layer that, interest me. As you, how do you bring them together? So holistically looking at the 20 miles stare in the future, what is the integration strategy long-term? If you look at distributed system or an operating system there has to be an architectural guiding principle for integration, your thoughts. >> This has been a world 30 years in the making. We can say networking, everyone had their own networking standard and the, let's say the '80s probably goes back to the '70s right? You had SNA, you had TCP/IP, you had NetBIO's-- >> DECnet. DECnet. You can on and on and in the end it's TCP/IP that won out as the glue. Others by the way, survived but in packets and then TCP/IP was the glue. Then you can fast forward 15 years beyond that and HTTP became the glue, we call that the internet. Then you can fast forward and you can say, now how do I make applications portable? And I will turn round and tell you that containers on Linux with Kubernetes as orchestration is that glue layer. Now in order to make it so, just like TCP/IP, it wasn't enough to say TCP/IP you needed routing tables, you needed DNS, you needed name repository, you needed all those things. Similarly, you need all those here are called the scatlog and automation, so that's the glue layer that makes all of this work >> This is important, I love this conversation because I have been ranting on theCUBE for years. You nailed it. A new stack is developing and DNS's are old and internet infrastructure, cloud infrastructure at the global scale is seeing things like network effect, okay we see blockchain in token economics, databases, multiple databases, on structure day >> a new plethora of new things are happening that are building on top of say HTTP >> [Arvind] Correct! >> And this is the new opportunity. >> This is the new platform which is emerging and it is going to enable business to operate, as you said, >> at scale, to be very digital, to be very nimble. Application life cycles aren't always going to be months, they're going to come down to days and this is what gets enabled >> So I what you to give your opinion, personal or IBM or whatever perspective because I think you nailed the glue layer on Kubernetes, Docker, this new glue layer that and you made references to, things like HTTP and TCP, which changed the industry landscape, wealth creation, new brands emerged, companies we never heard of emerged out of this and we're all using them today. We expect a new set of brands are going to emerge, new technologies are going to emerge. In your expert opinion, how gigantic is this swarm of new innovation going to be? Just, 'cause you've seen many ways before. In you view, your minds eye, what are you expecting? >> Share your insight into how big of a shift and wave is this going to be and add some color to that. >> I think that if I take a shorter and then a longer term view. in the short term, I think that we said, that this is in the order of $100 billion, that's not just our estimate, I think even Gartner has estimated about the same number. That will be the amount of opportunity for new technologies in what we've been describing. And that is I think short term. If I go longer term, I think as much as a half but at least a fourth of the complete IT market is going to shift round to these technologies. So then the winners of those that make the shift and then by conclusion, the losers are those who don't make the shift fast enough. If half the market moves, that's huge. >> It's interesting we used to look at certain segments going back years just company, oh this company's replatformizing, >> replatforming their op lift and shift and all this stuff. What you're talking about here is so game changing because the industry is replatforming >> That's correct. It's not a company. >>It's an industry! That's right. And I think the internet era of 1995, to put that point, is perhaps the easiest analogy to what is happening. >> Not the emergence of cloud, not the emergence of all that I think that was small steps. >> What we are talking about now is back to the 1995 statement >> [John] Every vertical is upgrading their stack across what from e-commerce to whatever. >> That's right. >> It's completely modernizing. >> Correct. Around cloud. >> What we call digital transformation in a sense, yes >> I'm not a big fan of the word but I understand what you mean. Great insight Arvind, thanks for coming on theCUBE and sharing. We didn't even get to some of the other good stuff. But IBM and Red Hat doing some great stuff obviously foundational, I mean, Red Hat, Tier one, first class citizen in every single enterprise and software environment you know, now OpenSource runs the world. You guys are no stranger to Linux being the first billion dollar investment going back >> so you guys have a heritage there so congratulations on the relationship. >> I mean 18 years ago, if I remember 1999. >> I love the strategy, hybrid cloud here at IBM and Red Hat. This is theCUBE, bringing all the action here in San Francisco. I am John Furrier, John Troyer. More live coverage. Stay with us, here in theCUBE. We'll be right back. (upbeat 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]

brought to you by Red Hat well welcome back everyone this two cubes exclusive coverage here in San Francisco California for Red Hat summit 20:18 I'm John Ferreira co-host of the cube with my analyst co-host this week John Troy year co-founder of The Reckoning advisory services and our next guest is Arvind Krishna who's the senior vice president of hybrid cloud at IBM Reese and director of IBM Research welcome back to the cube good to see you hey John and John Wade you guys just kick it confuse get to John's here great to have you on because you guys are doing some deals with Red Hat obviously the leader at open source you guys are one of them as well contributing to Linux it's well documented the IBM has three books on your role relationship to Linux so yeah check check but you guys are doing a lot of work with cloud in a way that you know frankly is very specific to IBM but also has a large industry impact not like the classic cloud so I want to get who tie the knot here and put that together so first I got to ask you take a minute to talk about why you're here with red hat what's the update with IBM with Red Hat yeah great John thanks and thanks for giving me the time I'm going to talk about it in two steps one I'm going to talk about a few common Tenace between IBM and Red Hat and then I'll go from there to the specific news so for the context we both believe in Linux I think that's easy to state we both believe in containers I think that's the next thing to state and we'll come back and talk about containers because this is a world containers are linked to Linux containers are linked to these technologies called kubernetes containers are linked to how you make workloads portable across many different environments both private and public then I go on from there to say and we both believe in hybrid hybrid meaning that people want the ability to run their workload wherever they want beat on a private cloud beat on a public cloud and do it without having to rewrite everything as you go across okay so let's just average those are the market needs so then you come back and say an IBM as a great portfolio of middleware names like WebSphere and db2 and I can go on and on and rather has a great footprint of Linux in the enterprise so now you say we got the market need of hybrid we got these two things which between them of tens of millions maybe hundreds of millions of endpoints how do you make that need get fulfilled by this and that's what we just announced here so we announced that IBM middleware will run containerized on RedHat containers on Red Hat Enterprise Linux in addition we said IBM cloud private which is the ability to bring all of the IBM middleware in a sort of a cloud friendly form right you click and you install it keeps itself up it doesn't go down it's elastic in a set of technologies we call IBM cloud private running in turn on Red Hat open shift container service on Red Hat Linux so now for the first time if you say I want private I want public I want to go here I want to go there you have a complete certified stack that is complete I think I can say we are unique in the industry and giving you this this and this is where this is kind of where the fruit comes on the tree off the tree for you guys you know we've been good following you guys for years you know every where's the cloud strategy and first well it's not like you don't have a cloud strategy you have cloud products right so you have to deliver the goods you've got the system replays the market need we all knows the hybrid cloud multi-cloud choice cetera et cetera right you take Red Hat's footprint your capabilities your combined install base is foundational right so and nothing needs to change there's no lifting shift there's no rip and replace you can it's out there it's foundational now on top of it is where the action is that's what we're that's what were you kind of getting at right that's correct so so we can go into somebody there running let's say a massive online banking application or the running a reservation system is using technologies from Asus using Linux underneath and today it's all a bunch of piece parts you have a huge complex stuff it's all hard wired and rigidly nailed down to the floor in a few places and I can say hey I'll take the application I don't have to rewrite the application I can containerize it I can put it here and that same app now begins to work but in a way that's a lot more fluid in elastic well by the way I want to do a bit more work I want to expose a bit of it up as micro-services I want search Samia you can go do that you want to fully make it microservices enable to be able to make it as little components and digestible you can do that so you can take it in sort of bite-sized chunks and go from one to the other at the pace that you want and that's game-changing yeah that's what I really like about this announcement it really brings the best of breed together right you did you know there's a lot of talk about containers and legacy and we you know we've been talking about what goes where and do you have to break everything up like you were just saying but the the announcement today you know WebSphere the this the you know a battle-tested huge enterprise scale component db2 those things containerized and also in a framework like with IBM we either with IBM Microsoft things or others right that's um that's a huge endorsement for open shipped as a platform absolutely it is and look we would be remiss if we didn't talk a little bit I mean we use the word containers and containers a lot yes you're right containers is a really really important technology but what containers enable is much more than prior attempts such as vm's and all have done containers really allow you to say hey I saw the security problem I solved the patching problem the restart problem all those problems that lie around the operations of a typical enterprise can get solved with containers VM sold a lot about isolating the infrastructure but they didn't solve as John was saying the top half of the stack and that's I think the huge power here yeah I want to just double click on that because I think the containers thing is instrument because you know first of all being in the media and loving what we do we're kind of a new kind of media company but traditional media has been throwing IBM under the bus and saying oh you know old guard and all these things but here's the thing you don't have to change anything you could containers you can essentially wrap it up and then bring a micro-services architecture into it so you can actually leverage at cloud scale so what interests me is is that you can move instantly value proposition wise pre-existing market cloud if I if you will with operational capabilities and this is where I like the cloud private so I want to kind of go with the ever second if I have a need to take what I have an IBM when it's WebSphere now I got developers I got installed base I'd have to put a migration plan away I containerize it thank you very much I do some cloud native stuff but I want to make it private my use case is very specific maybe it's confidential maybe it's like a government region whatever I can create a cloud operations is that right I can cloud apply it and run it absolutely correct so when you look at about private to go down that path we said well private allows you to run on your private infrastructure but I want all these abilities you just described John I want to be able to do micro services I want to be able to scale up and down I want to be able to say operations happen automatically so it gives you all that but in the private without having to go all the way to the public so if you cared a lot about you're in a regulated industry because you went down government or confidential data or you say this data is so sensitive I don't really I'm not going to take the risk of it being anywhere else it absolutely gives you that ability to go do that and and that is what we brought to our private to the market for and then you combine it with open shift and now you get the powers of both together so you guys essentially have brought to the table the years of effort with bluemix all that good stuff going on you can bring any he'd actually run this in any industry vertical pretty much right absolutely so if you look at what what the past has been for the entire industry it has been a lot about constructing a public cloud not just to us but us and our competition and a public cloud has certain capabilities and it has certain elasticity it has a global footprint but it does not have a footprint that's in every zip code or in every town or in every city that song ought to happen to the public cloud so we say it's a hybrid world meaning that you're going to run some bulk loads on a public cloud and like to run some bulk loads on a private and I'd like to have the ability that I don't have to pre decide which is where and that is what the containers the micro services the open ship that combination all gives you to say you don't need to pre decide you fucker you rewrite the workload on to this and then you can decide where it runs well I was having this conversation with some folks at and recent Amazon Web Services conference to say well if you go to cloud operations then the on-prem is essentially the edge it's not necessary then the definition of on-premise really doesn't even exist so if you have cloud operations in a way what is the data center then it's just a connected tissue that's right it's the infrastructure which you set up and then at that point the software manages the data center as opposed to anything else and that's kind of being the goal that we are all being wanted it sounds like this is visibility into IBM's essentially execution plan from day one we've been seeing in connecting the dots having the ability to take either pre-existing resources foundational things like red hat or whatnot in the enterprise not throwing it away building on top of it and having a new operating model with software with elastic scale horizontally scalable synchronous all those good things enabling micro search with kubernetes and containers now for the first time I could roll out new software development life cycles in a cloud native environment without foregoing legacy infrastructure and investment absolutely and one more element and if you want to insert some public cloud services into the environment beat in private or in public you can go do that for example you want to insert a couple of AI services into your middle of your application you can go do that so the environment allows you to do what he described and these additions we're talking about people for a second though the the titles that we haven't mentioned CIO you know business leader business unit leaders how are they looking at the digital transformation and business transformation in your client base as you go out and talk to us so let's take a hypothetical back and every bank today is looking about at simple questions how do i improve my customer experience and everyone in this a customer experience really do mean digital customer experience to make it very tangible and what they mean by that is how I get my end customer engaged with me through an app the apps probably on a device like this some smartphone we won't say what it is and and so how do you do that and so they say well well you were to check your balance you obviously want to maybe look at your credit card you want to do all those things the same things we do today so that application exists there is not much point in rewriting it you might do the UI up but it's an app that exists then you say but I also want to give you information that's useful to you in the context of what you're doing I want to say you can get a 10 second not a not a 30-day load but a ten-second law I want to make it offer to you in the middle of you browsing credit cards all those are new customer this thinks are hot where do you construct those apps how do you mix and match it how do you use all the capabilities along with the data you got to go do that and what we are trying to now say here is a platform that you can go all that do all that on right to that complete lifecycle you mentioned the development lifecycle but I got to add to the the data lifecycle as well as here is the versioning here are my area models all those things built in into one platform and scales are huge the new competitive advantage you guys are enabling that so I got to ask you on the question on on multi cloud I'll see as people start building out the cloud on pram and with public cloud the things you're laying out I can see that going on for a while a lot of work being done there we seeing that wiki bond had a true private cloud before I thought was truly telling a lot of growth they're still not going away public cloud certainly has grown the numbers are clear however the word multi clouds being kicked around I think it's more of a future state obviously but people have multiple clouds will have relationships with multiple clouds no one's gonna have one Klaus not a winner-take-all game winner take most but you're gonna have multiple clouds what does multi-cloud mean to you guys in your architecture because is that moving workloads in real time based upon spot pricing indexes or is that just co-locating on clouds and saying I got this SAP on that cloud that app on that cloud control plane did these are architectural questions it's the thing hell is multi cloud so these are today and then there is a tomorrow and then there is a long future state right so let's take today let's check IBM we're on Salesforce we're on service now we're on workday we're on SuccessFactors well all these are different clouds we run our own public cloud we run our own private cloud and we have traditional data center and we might have some of the other clouds also through apps that we bought that we don't even know okay so let's just toss I think every one of our clients is like this so multi cloud is here today I begin with that first simple statement and I need to connect the data and it comes connect when things go away the next step I think people nobody's gonna have only one even public cloud I think the big public clouds most people are gonna have to if not more that's today and tomorrow your channel partners have clouds by the way your global s lies all have clouds there's a cloud for crying out loud right so then you go into the aspirational state and that may be the one he said where people do spot pricing but even if I stay back from spot pricing and completely dynamic and of worrying about network and I'm worrying about video reach I just back up on to but I may decide it I have this app I run it on private well but I don't have all the infrastructures I want to bust it today and I've very robust it to I got to decide which public and how do I go there and that's a problem of today and we're doing that and that is why I think multi-cloud is here now not some pointed problem the problem statement there is latency managing you know service level agreements between clouds and so on and so forth governance where does my data go because there may be regulate regulate through reasons to decide where the data can flow and all the great point about the cloud I never thought about that way it's a good good illustration I would also say that I see the same argument of database world not everyone has db2 that everyone has Oracle number one has databases are everywhere you have databases part of IOT devices now so like no one makes a decision on the database similar was proud you're seeing a similar dynamic it's the glue layer that to me interest me as you how do you bring them together so holistically looking at the 20 mile stare in the future what is the integration strategy long term if you look at a distributed system or an operating system there has to be an architectural guiding principle for absolute integration you know well that's 30 years now in the making so we can say networking everybody had their own networking standards and the let's say the 80s though it probably goes back to the 70s right yeah an SN a tcp/ip you had NetBIOS TechNet deck that go on and on and in the end is tcp/ip that one out as the glue others by the way survived but in pockets and then tcp/ip was the glue then you can fast forward 15 years beyond that an HTTP became the glue we call that the internet then you can fast forward you can say now how to make applications portable and I would turn around and tell you that containers on linux with kubernetes as orchestration is that glue layer now in order to make it so just like in tcp/ip it wasn't enough to say tcp/ip you needed routing tables you needed DNS you needed name repositories you needed all those things similarly you need all those here I've called those catalogs and automation so that's the glue layer that makes all of this work this is important I love this conversation because I've been ranting on this in the queue for years you're nailed it a new stack is development DNS this is olden Internet infrastructure cloud infrastructure at the global scale is seeing things like Network effect okay we see blockchain in token economics like databases multiple database on structured data a new plethora of new things are happening that are building on top of say HTTP correct and this is the new opportunity this is the new the new platform which is emerging and it's going to enable businesses to operate you said at scale to be very digital to be very nimble application life cycles are not always going to be months they're gonna come down to days and this is what gets enabled so I want you to give your opinion personal or IBM or whatever perspective because I think you nailed the glue layer on cue and a stalker and these this new glue layer that and you made reference system things like HTTP and TCP which changed the industry landscape wealth creation new up new new brands emerged companies we've never heard of emerged out of this and we're all using them today we expect a new set of brands are gonna emerge new technologies and emerge in your expert opinion how gigantic is this swarm of new innovation gonna be just because you've seen many ways before in your view your mind's eye what are you expecting wouldn't share your your insight into how big of a shift and wave is this is going to be and add some color to that I think that if I take a take a shorter and then a longer term view in the short term I think that we said that this is on the order of 100 billion dollars that's not just our estimate I think even Gartner estimated about the same number that'll be the amount of opportunity for new technologies in what we've been describing and that is I think short term if I go longer term I think as much as 1/2 but at least 1/4 of the complete ID market is going to shift onto these technologies so then the winners are those that make the shift and then bye-bye clusion the losers of those who don't make this shift faster Afghan and stop the market moves that's that's he was interesting we used to like look at certain segments going back years oh this companies reap platform Ising we platforming they're their operative lift and shift and all this stuff what you're talking about here is so game-changing because the industries Reap lat forming that's a company that's it's an industry that's right any and I think the the the Internet era of 1995 to put that point it's perhaps the easiest analogy to what is happening not the not the emergence of cloud not the emergence of all that I think that was small steps what we're talking about now is back to the 1995 statement every vertical is upgrading their stack across the board from e-commerce to whatever that's right it's completely modernizing correct around cloud what we call digital transformation in a sense yes what not a big fan of the word but I lied I understand what you mean great insight our thanks for coming on the Kuban Sharon because we even get to some of the other good stuff but IBM and Red Hat doing some great stuff obviously foundational I mean Red Hat Tier one first-class citizen in every single enterprise and software environment you know now saw open source runs the world you guys you guys are no stranger to Linux being the first billion dollar investment going back so you guys have a heritage there so congratulations on the relationships that go around about ninety nine nine yeah and and I love the strategy hybrid cloud here at IBM and right at this the cube bring you all the action here in San Francisco I'm John for John Troy you're more live covers stay with us here in the cube Willie right back