(upbeat music) >> Narrator: Live from Vancouver, Canada, It's theCUBE. Covering OpenStack Summit, North America, 2018. Brought to you by Red Hat, the OpenStack Foundation, and its ecosystem partners. >> Welcome back to theCUBE's coverage of OpenStack Summit 2018, here in Vancouver. Three days wall-to-wall coverage. I'm Stu Miniman with my cohost, John Troyer. Happy to welcome back to the program, Radhesh Balakrishnan, who is the general manager of OpenStack with Red Hat. Radhesh, great to see you. It's been a week since John talked to you, and always good to have you on at the show. >> Great to be on. Good to be here talking about OpenStack at OpenStack Summit. >> Yeah so, look, OpenStack is in the title of your job. I believe, did we have a birthday cake and a party celebrating a certain milestone? >> That is indeed true; so it's the fifth anniversary of that fact that we've had a product, Red Hat OpenStack Platform, on the market. And so, we've been doing a little bit of a look back at how far we have come in the last five years as well as looking ahead at, you know, how does the next three to five years shape as well. >> Yeah, Radhesh, I'm going to date myself and when I think back to, gosh it was 18 years ago, I was working with Linux, and there were kernels all over the place and things like that. And then, I worked for an enterprise storage company and was like, ugh, like keeping up with Chrome.org was a pain in the neck. There came out this thing called Red Hat Advanced Server that was like, oh wait, we can glom onto this, we can support this with our customers, and that eventually turned into RHEL, which, of course, kind of becomes the main standard for how to do Linux. I feel like we have a lot of similarities. >> Radhesh: Absolutely, absolutely. >> In how we did. RHOSP, I believe, is the acronym, so. >> That's exactly right, and we like to have long names. >> Which are very descriptive, but Red Hat OpenStack Platform, fundamentally, to your point brings the same valid proposition that RHEL brought to Linux, to OpenStack, with the twist that, it's not just curated OpenStack, but it's a co-engineered solution of Linux and Cavium and OpenStack. And along the way we learned that, look, it's not just OpenStack and the infrastructure solution. It's done in conjunction with the software-defined storage solution or it's done in conjunction with software-defined networking. Or, fast-forward all the way now, it's being done in conjunction with cloud-native applications running on top of it, right? But regardless, in five years we've been able to grow to address these different demands being placed at infrastructure level, and at the same time evolved to address new-use cases as well; Telco is an example of that. >> Radhesh, let's spend a couple of minutes, though, on the OpenStack Platform itself from Red Hat. Some of the things, guys, that you were bringing to market, I know we talked about, here at the show, fast-forward upgrades, for instance were, they were just introducing, and maybe some other things in the Queens release that you all are bringing forward and have engineered. >> Yeah, thanks for that question, very topical, in the sense that yesterday we launched OSP 13, which is the latest and greatest version based on Queens release. If you look at the innovation packed in that it fundamentally falls in three buckets. One is the bread part that you talked about, whereby, anybody who is standing on OSP 10, which was the prior, long-release lifecycle product, over to 13, how do you kind of get over there in a graceful manner is the first area that we have addressed. The second area is around security, because how do you make sure that OpenStack-based clouds are secure by default, from the day you roll out all the way to until you retire it, right? I don't know if there's going to be a retirement, but that's the intent of all the security enablements that we have in the product as well. And the third one, how do we make sure that containers in OpenStack can come together in a nice manner. >> Yeah, the container piece is something else that, so a lot of effort, here at the show. They announced Kata containers, which, trying to give the security of a VM, lightweight VM. How does Red Hat look at Kata containers? I know Red Hat, you know Linux's containers, you know, very strong position, fill us in on that. >> Yeah, to maybe pull back a little bit and then look at the larger picture of there is the notion of infrastructure or the open infrastructure that you need and OpenStack is a good starting point for that. And then, you overlay on top of that an application deployment management configuration, lifecycle management solution that's the container platform called OpenShift, right. These are the two centers of gravity for the stack. Now, aspects such as Kata containers or Hubbard, which is for again, similar concept of addressing how do you use virtualization in addition to containers to bring some of the value around security et cetera, right? So we are continuing to engage in all these upstream projects, but we'll be careful and methodical in bringing those technologies into our products as we go along. >> Okay, how about Edge is the other kind of major topic that we're having here, I know I've interviewed some Red Hat customers looking at NFV solutions, so some of the big telcos you know specifically that use various pieces. What do you hear from your customers and help us kind of draw that line between the NFV to the Edge. Yeah, so Edge has become the center is kind of the new joke in the sense that, from an NFV perspective, customers have already effectively addressed the CORD errors and the challenges, now it's about how do you scale that and deploy that on a massive scale, right? That's a good problem to have. Now the goodness of virtualization can be brought all the way down to the radio Edge so that a programmable network becomes the reality that a telco or a carrier can get into. So in that context, Edge becomes a series of use cases. You know, it's not just one destination. Another way to say it is there is Edge an objective and there is Edge as a noun. Edge as the objective is a set of technologies that are enabling Edge, Edge networking, right. Edge management, for example, and then Edge as a destination where you have a series of Edge locations starting from CORD error center going all the way to radio. Now, the technology answers for all these are just being figured out right now. So you can say, you know, put crudely, KBM, OpenStack, containers, and Ansible will be all good elements that will come into the picture when it comes to a solution for all these footprints. >> Nice. Radhesh, maybe let's switch over to talk about the summit here, and the people here, filled with people being productive with OpenStack, right? Either looking at it, upgrading it, inheriting it. We talked to people in a bunch of different scenarios Red Hat, huge installed base, and you are good at helping and supporting, and uplifting, and upskilling a set of operators who started with Linux and now have to be responsible for an entire cloud infrastructure. Plus, now, at this conference, we've been talking about containers, we've been talking about open dev, right. That's again broadening the scope of what an operator might have to deal with. How does Red Hat look at that? How are you and your team helping upskill and enhance the role of the operator? >> Yeah, so I think it comes down to, how do we make sure that we are understanding the journey that the operator himself or herself is taking from a career perspective, right, the skill set of evolving from Linux and core automation-related skills to going to being able to understand what does it mean to live with cloud implementation on a day-to-day basis. What does it mean to live with network function virtualization as the way in which new services are going to be deployed. So, our course curriculum has evolved to be able to address all these needs today. That's one dimension, the other dimension is how do we make sure that the product itself is so easy that the journey is getting to a point where the infrastructure is invisible, and the focus is on the application platform on top. So I think we have multiple areas of focus to get to the point where it's so relevant that it's invisible, if that paradox makes sense. That's what we're trying to make happen with OpenStack. >> Radhesh, Red Hat has a very large presence at the show here; we were noting in the keynote the underlying infrastructure didn't get a lot of discussion because it is more mature, and therefore, we can talk about everything like VGPUs and containers, and everything like that. But Red Hat has a lot in the portfolio that helps in some of those underlying pieces. So maybe you can give us some of the highlights there. >> Absolutely, so we aren't looking at OpenStack as the be-all end-all destination for customers, but rather an essential ingredient in the journey to a hybrid cloud. So when you have that lens it becomes natural to you that a portfolio of our offerings, which are either first-party or in conjunction with our partners --we have over 400 partners with whom we have joint solutions as well -- so you naturally take a holistic view and then say, "How do you optimize the experience of ceph plus OpenStack for example." So we were talking about Edge recently, right, in the context of Edge we realize that there is a particular use-case for hyperconverged infrastructure whereby you need to collocate, compute, and store it in a way that the footprint is so small and easy to manage plus you want to have one life-cycle both for OpenStack and ceph right, so to address that we announced, right at hypercloud infrastructure for cloud, as an offering that is co-engineered between ceph team, or our storage team, and the OpenStack team. Right, that's just an example of how, by bringing the rest of the portfolio, we're able to address needs being expressed by our customers today. Or you look forward in terms of use-case, one thing that we are hearing from all our large customers, such as the Amadeus's of the world is, make the experience of OpenShift on OpenStack, easy to deploy and manage, as well as reduce the penalty of running containers on VMs. Because we understand the benefits of security and all of that, but we want to be able to get that without having any penalty of using a virtual infrastructure so that's why we're heavily focused on OpenShift, on OpenStack, as the form-factor for delivering that while continuing to work on things such as Kata containers as well as, you know, Kuryrs, as technology is evolving to make communities much richer as well as the infrastructure management at OpenStack level richer. >> You brought up an interesting point, we spoke a little bit yesterday with John Allessio and Margaret Dawson, about really that kind of multi-cloud world out there, because pieces like Kubernetes and Ansible, aren't just in the data center with this one stack, it's spanning across multiple environments and when we talk to customers, they do cloud, and cloud is multiple things in multiple places and changing all the time. So I'd love to get your viewpoint on what you hear from customers, how Red Hat's helping them across all those environments. >> Absolutely, so the key differentiation we see in being able to provide to our customers is that unlike some of the other providers out there, they're where they are stitching you with a particular private cloud, with the particular public cloud, and then saying, "Hey, this is sort of the equivalent of the AOL walled gardens, if you will, right, that's being created for a particular private and public cloud. What we're saying is fundamentally three things. First is, the foundation of Linux skills from RHEL that you have is going to be what you can build on to innovate for today and tomorrow, that's number one. Secondly, you can invest in infrastructure that is 100% open using OpenStack so that you can use commodity hardware, bring in multiple use-cases which are bleeding it, such as data lags, big data, Apache Spark, or going all the way to cloud-native application, development on top of OpenStack. And then last but not least, when you are embarking on a multi-cloud journey it is important that you're not tied to innovation speed of one particular public cloud provider, or even a private cloud provider, for that matter, so being able to get to a container platform, which is OpenShift, that can run pretty much everywhere, either on PREM or on a public cloud, and give you that single pane of consistency for your application, which is where business and IT alignment is the focus right now, then I think you've got the best of all the worlds. You know, freedom from vendor-lock in, and a future-proof infrastructure and application platform that can take you to where you need to go, right. So pretty excited to be able to deliver on that consistently as of today, as well as in the coming years. >> All right, we just want to give you the final word, for people out there that ... you know, often they get their opinion based on when they first heard of something. OpenStack's been around for a number of years, five years now, with your platform. Give us the takeaway for 2018 here from OpenStack Summit as to how they should be thinking about OpenStack, in that larger picture. >> The key takeaway is that OpenStack is rock-solid, that you can bring into your environment, not just to power your virtual machine infrastructure, but also baremetal infrastructure on which you can bring in containers as well. So if you're thinking about an infrastructure fabric, either to power your telco network or to power your private cloud in its entirety OpenStack is the only place that you need to be looking at and our OpenStack platform from end to end delivers that value proposition. Now the second aspect to think about is, OpenStack is a step in the journey of a hybrid future destination that you can get to. Red Hat not only has the set of surround products and technologies to round-up the solution, but also have the largest partner ecosystem to offer you choice. So what's your excuse from getting to a hybrid cloud today if not tomorrow? >> Well, Radhesh Balakrishnan, thank you for all the updates appreciate catching up with you once again. For John Troyer, I'm Stu Minimam, getting near the end of three days wall-to-wall coverage here in Vancouver, thank you so much for watching theCUBE. (upbeat music)

(ambient Music) >> Announcer: Live from Vancouver, Canada, it's theCUBE. Covering OpenStack Summit North America 2018. Brought to you by Red Hat, The OpenStack Foundation and its ecosystem partners. >> Welcome back, this is theCUBE's coverage of OpenStack Summit 2018 in Vancouver. I'm Stu Miniman, my cohost for the week is John Troyer, happy to welcome back to the program two CUBE alumni, we have Margaret Dawson and John Alessio. Margaret is the vice-president of Portfolio Product Marketing and John is the vice-president of Global Services. Thanks so much for joining us. >> Thank you. >> Thanks for having us. >> Good to be here. >> Alright so, John has gotten the week and a half now of the red hat greatness of being at summit last week, I unfortunately missed Summit, first time in five years I hadn't been at the show, did watch some of the interviews, caught up on it, and of course we talked to a lot of your team but, Margaret, let's start with you >> Margaret: Okay. >> One of the things we were looking at was, really, it's not just a maturation of OpenStack, but it's beyond where we were, how it fits into the greater picture, something we've been observing is when you think about open sourced projects, it's not one massive stack that you just deploy, it's you take what you need, it kind of gets embedded all over the place, and help us frame for us where we are today. >> Wow, that's a big question. So I think there's a couple things, I mean, in talking to customers, I think there's a couple trends that are happening. One is one you've probably talked about a lot and we probably covered at the Red Hat Summit which is just this overall digital transformation, digital leadership, whatever you want to call it, digital disruption tends to be a thing, and open sources definitely playing, really, the critical role of that, right, you will not be able to innovate and disrupt or even manage a disruption if you're not able to get to those technologies and innovations quickly and be able to adapt to it and have it work with other things. So the need for openness, for open APIs, for open technologies, inner-operability allows us to move faster and have that innovation and agility that every enterprise and organization needs world wide. And tied to that is kind of this overall hybrid cloud, so it's not just, OpenStack is a part of a much bigger kind of solution or goal that enterprises have in order to win and transform and be a digital leader. >> Margaret, I love that. Digital transformation, absolutely something we hear time and again from customers. >> Margaret: Yup. >> John, I've got a confession to make. I'm an infrastructure person and sometimes we're always like, why, come on, we spend all our time talking about how all the widgets and doo-dads and things-- >> Margaret: Blinky lights. >> Blinky lights, up on stage we have the-- >> He missed the blinking lights >> He did miss the blinking light. >> They had a similar stack up on stage yesterday. >> Oh, that's right. >> Same fans you could hear in the back of the room. But the whole goal of infrastructure always, of course, is to run the application, the whole reason for applications is to run and transform and do-- >> John: Serve the business >> Yeah, so that's where I'm going with this is we're talking more about not only that foundational layer of OpenStack but everything that goes with it and on it so maybe you could talk about the services-- >> Sure. So I think, Stu, that's exactly what we're seeing. So if you think about the last year and what we're seeing with services and projects here on OpenStack, I think the first thing to talk about is the fact that it's been growing quite a bit, in fact, from a 2017 versus 2018 perspective, our number of OpenStack projects have increased 36% year on year globally. So we're seeing a lot of demand, but we're seeing the projects be a lot more comprehensive. So these are OpenStack projects, but they're OpenStack with Open Shift, with Cloud Form, with Suff, as an example, and this combination is, really, a very very powerful combination. In fact, it's been so powerful that we started to see some common patterns of customers building a hybrid cloud solution, using OpenStack as their kind of private cloud infrastructure, but then using Open Shift as their way to kind of deploy applications in containers in that hybrid way, that we created a whole solution, which we announced two weeks ago, when John was at our Red Hat Summit, called Containers on Cloud. And that's taking all of our best practices around combining these products together in a very comprehensive, programmatic approach to deploying those solutions together. >> And I think it's really important, I mean, as you know, I think you and I met when we were both in networking, so coming from that infrastructure background but we really all need to talk about the workload down, starting with the application, starting with the business goal, and then how the infrastructure is almost becoming a services-based abstraction layer where you just need it to be always there. >> John: Yup. >> And whether it's public cloud or private cloud or traditional infrastructure, what developers in the business want is that agility and flexibility and containers provide that. There's other kind of architectural fabrics that allow that consistency and that's when it gets really exciting. >> One thing that's really interesting to me this week at OpenStack, as we've drilled into different customers, and talking to different people, even at lunch, is one, it's real. Everyone I've talked to, stuff in deployment, it went quickly, it's rock solid, it's powering, as we know, actually a lot of that is technical infrastructure that's powering a lot of the world's infrastructure at this point. >> That's right. >> The other thing that was interesting to me is some folks I talked to were saying, "Well, actually we have enough knowledge "that we're actually doing a lot of it ourselves, "we're going upstream." However, so that's great, and that's right for some people, but what I'm kind of been interested in both just coming from Red Hat Summit is both the portfolio, the breadth of the stack, and then all the different offerings that Red Hat, you know, it's not Rel anymore, it's not just Linux anymore, there's everything that's been built up and around and on top for orchestration and management, and then also the training, the services, the support, and that sort of thing, and I was wondering, that's kind of a two-part question, but maybe you all could tackle that. What does Red Hat bring to the table then? >> So, let me just start with, again, just to kind of position what we do as global services, our number one priority is customer success with Red Hat technology, that's the first and foremost thing we do and second is really around building expertise in the ecosystem so our customers have choice and where to go to get that expertise. So, if you start to look at kind of what's been going on as it relates to OpenStack, and, again, many customers are using Upstream bits, but many customers are using Red Hat bits, we see that and we look at the number of people who are getting trained around our technology. So over the last three years, we've trained, through our fee-based programs, 55,000 people on our OpenStack portfolio and in fact from 2017 to 2018 that was up 50% year on year and so the momentum is super super strong. So, that's the first point. The second is it's not just our customers. So part of my remit is, yes, to run consulting and, yes, to drive customer enablement and training, but it's also to build an ecosystem through our business partners. Our business partners use a program we call OPEN, Online Partner Enablement Network, which actually will just be celebrating five years just like OpenStack will, we'll be celebrating five years for OPEN. And our business partner accreditations on OpenStack specifically are up 49% year on year. So we're seeing the momentum in our regional systems integrators, our global systems integrators, our partners at large, building their solutions and capabilities around OpenStack, which I think is fantastic. >> No and it helps a lot with the verticalization of that, right, 'cause every industry has slightly different things they need. The thing I that would add to that, in terms of do-it-yourself community versus a dis-ter that's supported from someone like Red Hat, is it really comes down to core competency. And so even though OpenStack has become vastly simplified from a day one, day two, ongoing management, it is still a complex project. I mean that's the power of it, it can be highly customizable, right, it is an incredibly powerful infrastructure capability and so for most people their core competency is not that, and they need that support at least initially to get it going. What we have done is a couple things. I've actually talked to customers a lot about doing that training earlier and it's for a couple reasons, one is so that they actually have the people in house that have that competency but, two, you're giving infrastructure folks a chance to be part of that future cool stuff, right? I mean, OpenStack's written in Python and there's other languages that are newer and sexier, I guess, but it's still kind of moving them towards that future and for a lot of guys that have been in the data center and the ops world for a long time, they're looking out there at developers and going, I'm not the cool kid anymore, right? So OpenStack actually is a little bit of a window, not just to help companies go through that digital transformation, but actually help your ops personnel get a taste of that future and be part of that transformation instead of being stuck in just mainframe land or whatever, so training them early in the process is a really powerful way to do a lot of things. You know, skillset, retention, as well as then you can manage more of that yourself. >> And then all the way up to Stack, right? I mean, we're talking about containers, and then there's containers but then there's container data storage, container data networking. I mean, you've got the rest of the pieces in that, in Open Shift, in the rest. >> Absolutely. >> That is correct. >> And I think, John, you were at Red Hat Summit, we had a number of different innovation award winners. So I think one good example of kind of this kind of transformation from a digital transformation perspective, but also kind of leveraging a lot of what our Stack has to offer is Cafe Pacific. And so we talked about Cafe, they were one of our innovation award winners and what their challenge really was is how do they create a new modern infrastructure that gave them more flexibility so they could be more responsive to their customers. >> Yeah. >> In the airline industry. And so what they were really looking for was really, truly a hybrid cloud solution. They wanted to be able to have some things run in their infrastructure, have some things run in the public cloud, and we worked with them over the last, little over a year now, Red Hat consulting, Red Hat training, the Red Hat engineering team, in really building a solution that leverage OpenStack, yes, but also a number of other capabilities in the Red Hat portfolio, Open Shift, so they can deploy these applications, containerized applications now both to the public cloud as well as to the private cloud, but also automation through Ansible, which we're hearing a lot about Ansible and products like Ansible here at the conference-- >> Well the Open Stock and Ansible communities are starting to really work well together, just like Kubernetes, you've got a lot of this collaboration happening at the project level not to mention when we actually productize it and take it to customers. >> Yeah, so it's been super super powerful and I think it's a good one where it really hit on what Margaret was saying, which was giving the guys in infrastructure an opportunity to be a part of this huge transformation that Cafe went through, 'cause they were a very very key part of it. >> Yeah. Well, I think we're seeing that also with the open innovation labs. So this is something, which is really an innovation incubation process, it's agile, scrum, whatever, and in those we're not just talking to the developers, we're actually combining developers, functional lines of business leaders, infrastructure, architects, who all come together in a very typical six week kind of agile methodology and what comes out of that, I don't know, I've seen it a couple times, it's magical is all I can say, but having those different perspectives and having those different people work together to innovate is so powerful and they all feel like they're moving that forward and you come out with pilots, and we've seen things where they come out with two apps at the end of six weeks or eight weeks, it's just incredible when they're all focused on that and you start to understand those different perspectives and to me that's open source culture, right? It's awesome. >> And, Margaret, I'd love to hear your perspective also on that hybrid cloud discussion because so many people look at OpenStack and be like, oh, that's private cloud. >> Margaret: Right. >> And, of course, every customer we talk to, they have a cloud strategy. And they're doing lots of SaaS, they've got public cloud, multiple, Red Hat, I know you play across all of them, big announcement with Microsoft last week, last year was Amazon big partnerships with, so is Kubernetes the story, or is Kubernetes a piece of the story, how do all these play together for customers? >> I think Kubernetes is one and so, especially when you look at the broader architectural level, OpenStack becomes obviously the private cloud and enables them to start to do things that are more cloud-native even in their own data center, or if it's hosted or management or more traditional infrastructure, but it really has to be fluid. And a lot of customers initially were saying that their strategy was cloud first, and they would say, "Oh, we're going to put "everything in the public cloud." And then you actually start going through the workloads, you start going through the cost, you start going through the data privacy, or whatever the criteria capabilities are, and that's just not practical, frankly. And so this hybrid reality with private cloud, traditional, and public is going to be the reality for a very very long time, if not forever. There's always going to be things that you want to have better control of. And so Kubernetes at the orchestration layer becomes really critical to be able to have that agility across all those environments, but you have other fabrics like that in your architecture too, we talked about Ansible, it allows you to have common automation and do those play books that you can use across all those different infrastructure, KVM, what's your virtualization fabric, and can KVM take you from traditional virtualization all through public cloud? The answer is yes. So we're going to see increasingly these kind of layers of the overall architecture that allows you to have that flexibility, that management that's still the consistency, which is what you need to keep your policies the same, your access controls, you security, your compliance, and your sanity, whereas before it was kind of Ad Hoc. People would be like, oh, we're just going to put this here, go to public cloud. We're going to do this here, and now people are finding standardizing on things like even Red Hat Enterprise Linux, that's my OS layer, and that allows me to easily do Linux containers in a secure way, et cetera, et cetera. So, doing hybrid cloud means both the agility but you got to have some consistency in order to have the security and control that you need. So it's a little bit different than what we were talking about a few years ago, even. >> And I think one of the things that we've learned in the services world is that we started this idea about 18 months ago, we called these journey adoption programs, which were really the fact that some of these transformations are big, they're not about a single project that's going to last four to six weeks, it's a journey that the customer's going to go on and so when we talk about hybrid cloud, we've actually created this adoption program which can really start with the customer in this whole discovery phase, really, what are you trying to accomplish from a business perspective then take them into a design phase, take them into a deployment phase, take them into an enablement phase, and then take them into a sustainment phase. And there's a number of different services that we'll do across consulting, training, even within Marco Bill Peters Organization, which is our customer experience and engagement organization, around what role a technical account manager can play and really help our customer in the operational phases. And so we've learned this from some of the very large deployments, like Verizon, where we've seen some very-- >> And it's cyclical, right? You can do that many times. >> We do. In fact, you absolutely do. And so we've created now a program, specifically, around hybrid clouded option to try and de-mistify it. >> Yeah. >> Because it is complex. >> Well, and the reality is, there's somewhere around 30% of organizations still do not actually have a clear cloud strategy. And we see that in our own research, our own experiences, but industry analysts come up with the exact same number. >> And Margaret, by the way, the other 70%, the ink still pretty-- >> Yeah. >> Still wet! (laughing) >> Yes, it is. I'll tell you, I love saying cloud first to people because they kind of giggle. It's like, yeah, that's our strategy but we know we don't really know what that means. >> Which cloud? >> Exactly. >> Exactly. >> All the clouds. >> Exactly. >> Alright, well Margaret and John, want to give you a final word, key takeaways you want to have or anything new to the show that you want to point out? >> I would just say we are still in early days. I think sometimes we forget that we, both in the open source communities, in the industry for a long time, tend to be 10 years ahead of where most people are and so when you hear jokes about, oh, is OpenStack still viable or is everything doing this, it's like right now we only have a very small percentage of actual enterprise workloads in the cloud and so we need to just now get to the point where we're all getting mature in this and really start to help our customers and our partners and our communities take this to the next level and work on inter-operability, and ease of use, and management. We're so mature now in technology, now let's put the polish on it, so that the consumption and the utilization can really go to the next level. >> Yeah, and I'll play off what Margaret said. I think it's very very key. When I look at where we've had the biggest success, as defined by, in that discovery phase, the customer lays out for us, here's what our business objectives were, did we achieve those business objectives, it's all about figuring out how we can create the solution and integrate into their environment today. So Margaret said I think very very well which is we have to integrate into these other solutions and every one of these big customer deployments has some Red Hat software, but it also has some other software that we're integrating into because customers have investments. So it's not about rip and replace, it's about integrate, it's about leverage, it's about time to market, and that's what most of the customers I've talked to, they're very worried about time to value, and so that's what we're trying to focus in, I think as a whole company, around Red Hat. >> Margaret: Agree. >> Absolutely. Summed it up very well. John Alessio, Margaret Dawson, thanks so much for joining us again. >> Thanks again. >> For John Troyer, I'm Stu Miniman, watch more coverage here from OpenStack Summit 2018 in Vancouver. Thanks for watching theCUBE.

(upbeat music) >> Narrator: Live from Boston Massachusetts, it's The CUBE covering OpenStack Summit 2017, brought to you by the OpenStack Foundation, Red Hat and additional ecosystem support. >> Welcome back, I'm Stu Miniman joined by my co-host John Troyer. You're watching The CUBE, the worldwide leader in live tech coverage. Happy to welcome to the program Darrell Jordan-Smith who's the Vice President of Telecommunications at Red Hat. Thanks so much for joining us. >> It's great to be here thank you >> All right so Darrell last year at the show you know the telcos were like all in force. I got to interview Verizon. We're going to have Beth who was on the keynote stage on Monday on our coverage tomorrow. I know they're a Red Hat customer. When I hear at Red Hat summit, there were some really big telcos that are red hat customers. So to tell us why telco and OpenStack you know go so well together these days? >> Well telcos are looking for a open source for innovation. They need to change the way that they deliver services today and modernize their network infrastructure to become more agile, and a lot of them are doing that because of 5G, the next generation of services that they will be deploying over their network infrastructure. They can't do that unless they have an agile infrastructure fabric and an agile software capability to deliver those applications over those networks. >> All right well there's a lot to dig into yet. Let's start with NFV was the use case last year. Well 5G IOT definitely want to get into though but my understanding, I simplified it. NFV is just how the telcos can help deliver via software services they have. I mean think about how your set-top box, I can get channels and I can get certain programming. Is that kind of what you see, and how do they do their business model? >> Yeah traditionally, they bought appliances, hardware specific appliances. They put them in network operation centers and many thousands of those around the world. In the US there's tens of thousands of them. They're really moving more to a software based model where they don't necessarily need to buy a fixed appliance with its own silicone. They're going with commercial off-the-shelf x86 based technology and they're actually deploying that in what I call next generation data centers around Open Compute platform being an architecture, where you're looking at storage, compute, networking in a scalable fashion using open source technologies to deploy that in at massive scale. >> Very different from you think about like cloud might be a place where you have services run but the telcos are pushing services with their software out to their consumers. >> Yeah they're changing the core network infrastructure to support that and at the mobile edge in these network operation centers at the edge, they're making those more agile as well in order to push as many services out closely to the customer but also to aggregate content and data that their customers would acquire. So for example, you take a video clip on your phone, there's no point in storing that in the core of the network. You want to maybe store that at the edge, where maybe some of your friends would share it at that point in time, more efficient ways of drive that. >> I wonder if you can expand a little bit. That that term edge because we hear is that the edge of the network? Is that a mobile device? Is that a sensor for IOT in the telecom world? Is it all of the above? >> Well a lot of people use it is all the above but in the context I'm using it, it's at the edge of the network. It's not the device. That is a whole separate set of conversations, and things reach a very IOT-centric. At the moment, the telecommunications companies want to make the edge more efficient. They want to build clouds around the edge. They want to aggregate all those different clouds, and they want to build agile based infrastructure. So similarly to the way that Facebook, Amazon, Netflix, Google deliver their services today, they need to get into that space in order to be agile enough to develop and deploy their next generation of applications and services. >> So at this point OpenStack in its evolution with this customer vertical, it seems like we're not only talking about a cloud but maybe a cloud of clouds. >> Yes absolutely, I mean telcos again, they typically have one of everything. They are looking at decoupled solutions in terms of their network-based infrastructure. They want to be able to manage every layer of that infrastructure independently of the other layers in order to drive maximum flexibility and agility into their infrastructure but also so they don't get locked in to any one particular vendor. That's a big, big theme in the telco space. >> So you use the words agility and flexibility. So I in a previous lifetime, I did work with some telecom providers and they were not known for those words of agility and flexibility. We're in a world now with open source, with CICD, we talked about upgradability, a lot of the talk here at OpenStack is about manageability and flexibility and building, putting containers on top. Maybe we can go there next but do you, as you work with your customers and partners in the telecom space. It seems like they've had to have a cultural shift. I see a lot of people from the carriers here, right. They're as long haired and shaggy, and barefoot as any other engineer here at OpenStack summit. Has there been a real cultural shift inside telecom to accomplish this? >> Yeah, there's a real cultural shift that's ongoing. It's got a ways to go. The telcos themselves are engineeringly orientated. So they traditionally have come from an environment where we'll build it and customers will come. Now they're looking at we need to build it quicker and faster in order to attract customers, get them to come and view our services, get them addicted to a certain degree. Maybe the wrong word but to our content. So building sticky services, trying to reduce the churn they have in their business, driving innovation through open source because I think they've realized that innovation isn't necessarily within their own company. It sits elsewhere so which is the new Uber as it were? Which is new Airbnb? What is the new WhatsApp-based application? They want to create a network infrastructure that's flexible enough with all of those attributes through API so those companies can develop innovative next-generation content and services over their network infrastructure, in order to attract and make services sticky for their customers. >> Darrell, I wonder if you can speak to the complexity of the solutions in the telco space? Last year we spoke to Verizon, and they love what they have but they had to choose some glass, walk over some hot coals to be able to get the solution together. These are big complicated solutions. We've talked in general about OpenStack, and trying to simplify some of the complexity but can you speak to some of the how long it takes to roll these out and some of the effort involved for the telcos? >> Well it's it's sort of a walk, a cruel walk run process to a lot of that because A working with open source is very different than what they traditionally have done, and as you mentioned earlier, traditionally they'll buy an application through our appliance. They'll take nine months to deploy in all their centers. Then another three to six months later, they might switch it off. In the software agile world, they've got to condense that sort of 12 to 18 month period down to maybe three or four weeks. They may stand up a service for an event like the Olympics and then take it down after the Olympics. So there's a lot of complexity and change in the way that they need to deliver those services, and that complexity isn't trivial. So it involves delivering quality of service through the deployment of next generation network infrastructure because they are regulated companies. So they've got to maintain that quality of service in order to be able to bill, and meet the regulations that they they have to adhere to in the markets that they operate their network infrastructure. Very different from the Googles, the Facebooks of the world. They don't have that sort of regulation over their head. The telcos do so they have a level of discipline that they need to achieve in terms of availability of their network infrastructure, the availability of their services, the availability of their applications, and that links into a whole quality of service experience for their customers, and linked into their operation systems support, into their billing system and the list goes on, and on and on. So what we found at Red Hat is that, that is not trivial, that is hard, and a lot of the telcos are very engineeringly oriented. It's great working with them because they really understand the difficulties, and the fact that this is particularly hard. They also know that they want to build it and own it, and understand it themselves, because it's their business model. To them, the network is an asset. It's not something that they can just outsource to someone else, that doesn't necessarily understand that same degree of that asset. So they want to get their heads around that. >> So they need that reliability. From the eyes of a service provider how mature is OpenStack right now? Is it in production? Can they trust it? We're a few more than a few years into the OpenStack evolution so where are we in deployment? >> That, number of operators are in deployment. You mentioned one on a few months ago like Verizon. >> Stu: Yeah, AT&T is on stage. >> Absolutely, AT&T-- >> Deutsche Telekom, the headlines sponsored the event. >> Exactly, I mean, and what they're doing is they're starting very pragmatically. They're looking at specific services, and they're building slowly a service upon service upon service so they go from a crawl to walking, then to a run. I think, what we're seeing in OpenStack is not if but when these guys will deploy at mass scale. We're beginning now to see a general acceptance that this is a methodology and or a technology that they can deploy and will deploy in the NFE context. The other thing that's occurring in the space is they're looking at traditional IT workloads. So a telco-based cloud if you want to use that terminology is just as capable of running IT-based workloads and services as well. So a number of them are looking at their own enterprise and running those environments. Some of them are partnering with some of our partners to build OpenStack public cloud instances. So they want to try and attract services to that environment as well. >> It's interesting you point that out. There's been that ebbing flow of can the telco players be cloud as John pointed out. I worked in telecommunications back in the '90s. Agile and fast was not the thing of the day. One of the big companies who had bought a cloud company just sold off lots of their data centers. Do they feel that they're going to compete against the Amazon, Microsoft, Googles of the world? Do they think they'll be service providers? Where do they see is their natural fit in the cloud ecosystem? >> So my role is on a global basis. In North America, they don't want to, I don't think they feel they can compete in the way that you were intimating in that regard. However, where they do think they can compete and since we're going to probably talk about 5G and IOT, that is the area where they see public cloud applications and services being developed. So they're looking at the insurance industry, the automotive industry, the manufacturing industry, and creating an environment where those applications can be built to many many thousands of millions of devices connected to them. So I think the definition of in North America, of a public cloud infrastructure is going to evolve in that direction. In other markets such as Latin America and in Europe, some of the telecommunications companies believe that they can be competitive in that space. So more recently, Orange announced that they're working with OpenStack to deploy public cloud. Telefonica, Deutsche Telekom, China Mobile, America Movil, they're all using OpenStack to try and enter that specific market space. >> Okay, please talk to us about the 5G angles here. Obviously like Mobile World Congress, it was like be number one conversation. When we went to the Open Networking Summit, it was there. You're the first person to talk about it that I heard I didn't, maybe I missed it in one of the keynotes but you know none of our interviews has come out yet. So how does that fit into the OpenStack picture? >> So 5G is the reason why telcos are building NFEI, that they were NFE because they realize that to connect all of those devices to their network-based infrastructure, they need to do it intelligently, they need to do it at the edge, and they need to have a high degree of flexibility and agility to their network-based infrastructure to create an innovation environment for application developers to connect all those devices. So we talked about smart cars as a good example around 5G. You need low latency, you need the high availability, you need to be reliable, you need to provide all of that network infrastructure as an example plus you need a portfolio of developers that are going to create all sorts of different applications for those vehicles that we driving around on the street. So that without 5G, that does not happen. You're not, you know some metropolitan areas, the amount of connectivity that you have access to in terms of the traditional cloud-based access networking infrastructure doesn't facilitate the amount of density that 5G will actually facilitate. So you need to be able to change the basis in which you're building that infrastructure to lower the cost of the network in terms of being able to drive that. >> All right and I'm curious I think about the global reach we were just talking about. Usually, the global reach of a new technology like 5G lags a little bit in the rest of the world compared to Western Europe and North America. >> Well, I think in Asia, 5G is, if I look at what they're trying to do, the leading vendors ZTE, Samsung, Huawei, they're heavily invested in 5G-based infrastructure, and they don't have, their operators in those part of the world don't have an awful lot of legacy-based infrastructure to be able to have to replace. They can get there a lot faster. The other thing is with 5G, for them, the applications and services in the way that people experience network-based access or Internet if for want of another word is very different than way that maybe we experience it here in the US or in Europe. So I think you're going to see different applications and different business models evolve in different markets in Asia than you would say here in North America. In North America, I think that it's going to take a lot of the operators different business models to look at maybe some of the higher order of applications and services that drive stickiness for their own infrastructure and network services but also some of the more advanced applications like I mentioned smart cars or smart homes, or smart cities or energy or better ways of delivering products in terms of distribution to your home, those those types of applications and services we won't necessarily in some of those other markets be there and similarly for Europe. >> All right Darrell Jordan-Smith, really appreciate you joining us, giving us all the updates on telco, how it fits with OpenStack. Jon Troyer and I will be back with lots more coverage here from the OpenStack summit 2017 in Boston. You're watching The CUBE (upbeat music)

>> From theCUBE Studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE and ETR, this is Breaking Analysis with Dave Vellante. >> While never really meant to be a consumer tech event, the rapid ascendancy of smartphones sucked much of the air out of Mobile World Congress over the years, now MWC. And while the device manufacturers continue to have a major presence at the show, the maturity of intelligent devices, longer life cycles, and the disaggregation of the network stack, have put enterprise technologies front and center in the telco business. Semiconductor manufacturers, network equipment players, infrastructure companies, cloud vendors, software providers, and a spate of startups are eyeing the trillion dollar plus communications industry as one of the next big things to watch this decade. Hello, and welcome to this week's Wikibon CUBE Insights, powered by ETR. In this Breaking Analysis, we bring you part two of our ongoing coverage of MWC '23, with some new data on enterprise players specifically in large telco environments, a brief glimpse at some of the pre-announcement news and corresponding themes ahead of MWC, and some of the key announcement areas we'll be watching at the show on theCUBE. Now, last week we shared some ETR data that showed how traditional enterprise tech players were performing, specifically within the telecoms vertical. Here's a new look at that data from ETR, which isolates the same companies, but cuts the data for what ETR calls large telco. The N in this cut is 196, down from 288 last week when we included all company sizes in the dataset. Now remember the two dimensions here, on the y-axis is net score, or spending momentum, and on the x-axis is pervasiveness in the data set. The table insert in the upper left informs how the dots and companies are plotted, and that red dotted line, the horizontal line at 40%, that indicates a highly elevated net score. Now while the data are not dramatically different in terms of relative positioning, there are a couple of changes at the margin. So just going down the list and focusing on net score. Azure is comparable, but slightly lower in this sector in the large telco than it was overall. Google Cloud comes in at number two, and basically swapped places with AWS, which drops slightly in the large telco relative to overall telco. Snowflake is also slightly down by one percentage point, but maintains its position. Remember Snowflake, overall, its net score is much, much higher when measuring across all verticals. Snowflake comes down in telco, and relative to overall, a little bit down in large telco, but it's making some moves to attack this market that we'll talk about in a moment. Next are Red Hat OpenStack and Databricks. About the same in large tech telco as they were an overall telco. Then there's Dell next that has a big presence at MWC and is getting serious about driving 16G adoption, and new servers, and edge servers, and other partnerships. Cisco and Red Hat OpenShift basically swapped spots when moving from all telco to large telco, as Cisco drops and Red Hat bumps up a bit. And VMware dropped about four percentage points in large telco. Accenture moved up dramatically, about nine percentage points in big telco, large telco relative to all telco. HPE dropped a couple of percentage points. Oracle stayed about the same. And IBM surprisingly dropped by about five points. So look, I understand not a ton of change in terms of spending momentum in the large sector versus telco overall, but some deltas. The bottom line for enterprise players is one, they're just getting started in this new disruption journey that they're on as the stack disaggregates. Two, all these players have experience in delivering horizontal solutions, but now working with partners and identifying big problems to be solved, and three, many of these companies are generally not the fastest moving firms relative to smaller disruptive disruptors. Now, cloud has been an exception in fairness. But the good news for the legacy infrastructure and IT companies is that the telco transformation and the 5G buildout is going to take years. So it's moving at a pace that is very favorable to many of these companies. Okay, so looking at just some of the pre-announcement highlights that have hit the wire this week, I want to give you a glimpse of the diversity of innovation that is occurring in the telecommunication space. You got semiconductor manufacturers, device makers, network equipment players, carriers, cloud vendors, enterprise tech companies, software companies, startups. Now we've included, you'll see in this list, we've included OpeRAN, that logo, because there's so much buzz around the topic and we're going to come back to that. But suffice it to say, there's no way we can cover all the announcements from the 2000 plus exhibitors at the show. So we're going to cherry pick here and make a few call outs. Hewlett Packard Enterprise announced an acquisition of an Italian private cellular network company called AthoNet. Zeus Kerravala wrote about it on SiliconANGLE if you want more details. Now interestingly, HPE has a partnership with Solana, which also does private 5G. But according to Zeus, Solona is more of an out-of-the-box solution, whereas AthoNet is designed for the core and requires more integration. And as you'll see in a moment, there's going to be a lot of talk at the show about private network. There's going to be a lot of news there from other competitors, and we're going to be watching that closely. And while many are concerned about the P5G, private 5G, encroaching on wifi, Kerravala doesn't see it that way. Rather, he feels that these private networks are really designed for more industrial, and you know mission critical environments, like factories, and warehouses that are run by robots, et cetera. 'Cause these can justify the increased expense of private networks. Whereas wifi remains a very low cost and flexible option for, you know, whatever offices and homes. Now, over to Dell. Dell announced its intent to go hard after opening up the telco network with the announcement that in the second half of this year it's going to begin shipping its infrastructure blocks for Red Hat. Remember it's like kind of the converged infrastructure for telco with a more open ecosystem and sort of more flexible, you know, more mature engineered system. Dell has also announced a range of PowerEdge servers for a variety of use cases. A big wide line bringing forth its 16G portfolio and aiming squarely at the telco space. Dell also announced, here we go, a private wireless offering with airspan, and Expedo, and a solution with AthoNet, the company HPE announced it was purchasing. So I guess Dell and HPE are now partnering up in the private wireless space, and yes, hell is freezing over folks. We'll see where that relationship goes in the mid- to long-term. Dell also announced new lab and certification capabilities, which we said last week was going to be critical for the further adoption of open ecosystem technology. So props to Dell for, you know, putting real emphasis and investment in that. AWS also made a number of announcements in this space including private wireless solutions and associated managed services. AWS named Deutsche Telekom, Orange, T-Mobile, Telefonica, and some others as partners. And AWS announced the stepped up partnership, specifically with T-Mobile, to bring AWS services to T-Mobile's network portfolio. Snowflake, back to Snowflake, announced its telecom data cloud. Remember we showed the data earlier, it's Snowflake not as strong in the telco sector, but they're continuing to move toward this go-to market alignment within key industries, realigning their go-to market by vertical. It also announced that AT&T, and a number of other partners, are collaborating to break down data silos specifically in telco. Look, essentially, this is Snowflake taking its core value prop to the telco vertical and forming key partnerships that resonate in the space. So think simplification, breaking down silos, data sharing, eventually data monetization. Samsung previewed its future capability to allow smartphones to access satellite services, something Apple has previously done. AMD, Intel, Marvell, Qualcomm, are all in the act, all the semiconductor players. Qualcomm for example, announced along with Telefonica, and Erickson, a 5G millimeter network that will be showcased in Spain at the event this coming week using Qualcomm Snapdragon chipset platform, based on none other than Arm technology. Of course, Arm we said is going to dominate the edge, and is is clearly doing so. It's got the volume advantage over, you know, traditional Intel, you know, X86 architectures. And it's no surprise that Microsoft is touting its open AI relationship. You're going to hear a lot of AI talk at this conference as is AI is now, you know, is the now topic. All right, we could go on and on and on. There's just so much going on at Mobile World Congress or MWC, that we just wanted to give you a glimpse of some of the highlights that we've been watching. Which brings us to the key topics and issues that we'll be exploring at MWC next week. We touched on some of this last week. A big topic of conversation will of course be, you know, 5G. Is it ever going to become real? Is it, is anybody ever going to make money at 5G? There's so much excitement around and anticipation around 5G. It has not lived up to the hype, but that's because the rollout, as we've previous reported, is going to take years. And part of that rollout is going to rely on the disaggregation of the hardened telco stack, as we reported last week and in previous Breaking Analysis episodes. OpenRAN is a big component of that evolution. You know, as our RAN intelligent controllers, RICs, which essentially the brain of OpenRAN, if you will. Now as we build out 5G networks at massive scale and accommodate unprecedented volumes of data and apply compute-hungry AI to all this data, the issue of energy efficiency is going to be front and center. It has to be. Not only is it a, you know, hot political issue, the reality is that improving power efficiency is compulsory or the whole vision of telco's future is going to come crashing down. So chip manufacturers, equipment makers, cloud providers, everybody is going to be doubling down and clicking on this topic. Let's talk about AI. AI as we said, it is the hot topic right now, but it is happening not only in consumer, with things like ChatGPT. And think about the theme of this Breaking Analysis in the enterprise, AI in the enterprise cannot be ChatGPT. It cannot be error prone the way ChatGPT is. It has to be clean, reliable, governed, accurate. It's got to be ethical. It's got to be trusted. Okay, we're going to have Zeus Kerravala on the show next week and definitely want to get his take on private networks and how they're going to impact wifi. You know, will private networks cannibalize wifi? If not, why not? He wrote about this again on SiliconANGLE if you want more details, and we're going to unpack that on theCUBE this week. And finally, as always we'll be following the data flows to understand where and how telcos, cloud players, startups, software companies, disruptors, legacy companies, end customers, how are they going to make money from new data opportunities? 'Cause we often say in theCUBE, don't ever bet against data. All right, that's a wrap for today. Remember theCUBE is going to be on location at MWC 2023 next week. We got a great set. We're in the walkway in between halls four and five, right in Congress Square, stand CS-60. Look for us, we got a full schedule. If you got a great story or you have news, stop by. We're going to try to get you on the program. I'll be there with Lisa Martin, co-hosting, David Nicholson as well, and the entire CUBE crew, so don't forget to come by and see us. I want to thank Alex Myerson, who's on production and manages the podcast, and Ken Schiffman, as well, in our Boston studio. Kristen Martin and Cheryl Knight help get the word out on social media and in our newsletters. And Rob Hof is our editor-in-chief over at SiliconANGLE.com. He does some great editing. Thank you. All right, remember all these episodes they are available as podcasts wherever you listen. All you got to do is search Breaking Analysis podcasts. I publish each week on Wikibon.com and SiliconANGLE.com. All the video content is available on demand at theCUBE.net, or you can email me directly if you want to get in touch David.Vellante@SiliconANGLE.com or DM me @DVellante, or comment on our LinkedIn posts. And please do check out ETR.ai for the best survey data in the enterprise tech business. This is Dave Vellante for theCUBE Insights, powered by ETR. Thanks for watching. We'll see you next week at Mobile World Congress '23, MWC '23, or next time on Breaking Analysis. (bright music)

(upbeat music) >> Narrator: Live from Vancouver, Canada, it's theCUBE covering OpenStack Summit North America, 2018, Brought to you by Red Hat, the OpenStack foundation, and its ecosystem partners. >> Welcome back, I'm Stew Miniman here with theCUBE's coverage of OpenStack Summit 2018 in Vancouver. My co-host is John Troyer. Happy to welcome to the program, we have Berna Devrim, who is the Senior Director of Product Marketing of Platform at Red Hat. And we are thrilled to have a customer on, Nico Wellner, who's a Unix Systems Engineer with Finanz Informatik out of Germany. Thank you both so much for joining. Alright, Berna let's start with you. Just give, your first time on the program I believe, so a little bit about your background. You've been with Red Hat less than a year so tell us your role there. >> Yeah, yeah I've been at Red Hat for nine, 10 months now. I've very very excited to be here in the Open Source community development model. It's a very unique opportunity, as I've been leading the platform's marketing, which includes Red Hat Enterprise Linux, as well as Red Hat Virtualization, and Red Hat OpenStack platform, of course, which is why we are here at OpenStack summit. >> Great. We've got Rhel, and RHV, and RHOSP, and lots of other "LMNOP's." So Nico, give us a little bit about your background. Tell us about your organization and then lets get into the mini case study we'll do with you. >> It's an honor for me to be here. Thank you very much for this. I working for Finanz Informatiks, as you said, and it's a centralized IT service provider in the S Finance Group in Germany, for savings banks and state banks. We always have about 400 institutes. Savings banks, individual savings banks. On our systems we are supporting more than 120 million accounts, bank accounts, nearly half of them online accounts. We also develop the software for the savings banks for our customers, not savings banks only. Also, assurances and state banks. We operate the applications we developed previously. It's a huge and amazing company with a lot of different groups and systems. >> Well, we're really glad you could make it here. With GDPR banging down the door in just a couple of days we expect everybody in Europe to be pretty busy getting ready for that. Tell us your role inside the organization. What's your team do? Your title has Unix in it, so what's that entail? Give us the scope of what you cover. >> I'm assistant engineer, as you said and I'm working in the department. We are integrating and operating the Unix systems, which are AIX, we have a huge AIX, and why-mite and a huge Lenox, and why-mite in our data centers. On these Lenox systems, we started with OpenStack in 2014, with testing, and went into production in 2015, half a year later. We integrated OpenStack. We operated and served for our customers internally on the OpenStack platform. We host one of our core applications, it's the internet banking for our customers, as I said for about 50 millions account. We have multiple OpenStack Clouds. My department is responsible for the clouds and for operating them well. >> Nico I wonder if we step back for a second and what led to you going down this path. Was the company figuring out its cloud strategy? Obviously financial institutions, we understand there's governance, compliance, security is a huge concern. What does Cloud mean to your team? What led you to OpenStack? Let's start with kind of that problem statement that you had. >> Yeah, it was the main reason we introduced OpenStack was the time to market was our applications, it was our environment. And it's a plummet process. Took a long time normally and the environment. With OpenStack we could dramatically increase the time to deploy the systems from days or weeks to minutes. So we solved one huge problem with OpenStack. What was another reason was vendor lock-in. We wanted to avoid vendor lock-in. So we decided for OpenStack because it's a huge open source software, great community, and very stable, in our case. So it's OpenStack for us. >> So Berna, I've actually had the opportunity to interview quite a few Red Hat customers. I remember three years ago we were actually in the other hallway here talking to FICO about their role out of Red Hat OpenStack. I hear some similar themes, but you've got access to way more customers than I do. What are you hearing from customers in general? Is this kind of the typical? Is speed and agility at the top of the list when it comes to their Cloud environment? >> Exactly Stew, just like Nico said, actually. Our customers tell us all the time that it is about speed and agility. But it's also about different types of use cases and the workloads that they're actually looking at in their environments. Very popular ones, the use cases are. For example, scale-out IS, as well as they have test environments for the clouds needs applications, for example. Also we do see that big data analytics, NFV also. So there are many different types of use cases we see from our customers. We also have been hearing that they are actually using Open Shift on top of the Red Hat OpenStack platform. Majority of them are either deploying it or planning to deploy containers. So we do see a lot of different, but similar, aspects as well. >> Yeah. Nico have you started to go down that path with containers, Kubernetes, all that stuff yet? >> Not so far. We plan to do so. In general will use containers, we are planning to. But we already started the process, but it would take a little bit. I'm saying that we're not sure if start with OpenStack, containers on OpenStack or plain, but I think that with OpenStack could be a great way to do so. Because one of the reasons is our OpenStack environment is very reliable. This is important for us, very important for us and our customers. Over the years, as I said, since 2015 we had no outage due to OpenStack and the whole environment is great for us. >> That's great. So where are you now in your Red Hat OpenStack deployment? You have an OpenStack in production and now you're already a Red Hat customer in other products and you're now going out with Red Hat OpenStack platform, is that correct? >> Yes that's correct, yeah. >> I'm kind of curious. One of the conversations around OpenStack is the component nature of it and that many OpenStack deployments are different. So as you're now deploying Red Hat and you were already on OpenStack, are the skills transferable? Do you find the the processes transferable? Do you feel that this was a good investment, no up time for three years now and now you're moving to this new platform. Do you and your team feel like you're able to properly instrument and maintain and operate it? >> I think it's the best platform for us for infrastructure and management, Lenix and why-mite. We want to in-wolf it furthermore. >> Stew: And the skills will still transfer? The skills you've known for years will still transfer to the new OpenStack? >> Yes we have only a few people working actively on the design and the architecture, and operating for OpenStack. It's turned out that we could do fine with them. Now we have huge experience with OpenStack, feel comfortable with it. We are planning to increase the OpenStack environment, slightly I think. But scale out works great for us. The OpenStack itself, in our case, we could very flexible do a systems releases, which is one important thing for us. I think the OpenStack itself is the best platform for us and our application tools. >> That's great. Berna I was at Red Hat Summit and the interesting thing there for me was the portfolio, the breadth of portfolio, right? One of the messages was clear. You've always depended on Red Hat Enterprise Lenix, and that's still there and containers are Lenix. There was lot of multi-cloud talk and stuff like that, and OpenStack was part of the mix. Can you talk a little bit about OpenStack as part of the Red Hat portfolio and what you all are bringing to the table, and how you're thinking of open shift on OpenStack and that sort of thing? >> Yeah, exactly. As you pointed out Red Hat is all about open hybrid cloud. Within that Red Hat OpenStack platform plays a big role, of course as you can imagine. What we are trying to do at OpenStack platform is to help our customers like Nico get towards the digital transformation. With that comes, again, the need for speed and agility. What we are enabling with OpenStack platform is we would like to call it powering the digital transformation through enabling our customers to accelerate their businesses by simplifying their applications and delivery as well as the services delivery, which then, of course, moves towards innovation, fast innovation at the speed of the business. At the same time, we are trying to enable IT teams to be empowered so that they can actually do the innovations at their own pace without worry, with all of the Red Hat portfolio, as you pointed out. Yeah. >> Nico, we'd love to hear your take on digital transformation. I think back, five years ago we were talking about financial institutions, oh well we need to go mobile. Well it's much more than that for most companies that I talk to. Do you consider a digital transformation in your company? How does that relate to what IT does to what the business does, to what your users need? >> It's one of our core tasks in our company to help our customers for digital transformation. Finanz Informatik itself sees itself to be the best partner for our customers to do this transformation. With leading technologies like OpenStack and a special case was Red Hat OpenStack, of course, which is a product which enables us to be flexible, secure, and fast with our environment, and to drive this process of digital transformation in the S Finance Group, Savings Finance Group. >> Alright, so you've been at this for three or four years now with OpenStack, I'd love to get what learnings you've had for peers of yours that might be earlier in their journey. What have you learned? What advice might you give them? Let's start there. >> Overall I would say the OpenStack environment is very reliable. More reliable as I thought at the beginning. But it's turned out it's really good. From the automation perspective it's a really nice, let's say tool, for our environment. I found OpenStack is a great project with a lot of software components you can combine. We have a flexible platform. We can add some components we do not have today, but are part of OpenStack community of OpenStack product at all, to enable additional functionalities to the environment, let's say for containers, for object solid, and something like that, and new services for our customers to decrease the time to market. >> Okay. One of the things that this show we're seeing is looking beyond where we've been. I think the keynote this word, people are asking to do more and in more places. Everything from containers, and edge, and server lists, and the like. What's interesting you these days as you look down the road? Different technologies that are in your roadmap in the future, inside or outside OpenStack? >> For our company, we are in the process to integrate new needs for our customers and we are planning to do a lot of big data. Maybe OpenStack could be part of the white platform forward for the future we are planning. I think it will be much more diverse in future because right now we do have one application running on it, one co-application. It's a co-application where we partnered for us. But we will maybe will spread it or enable it for other applications, because of the great experience we've made with it. >> Nico and Berna, thank you so much for giving us the updates on where you stand with OpenStack and all of your deployment. We'll be back here with lots more coverage here at OpenStack Summit 2018 in Vancouver for John Troyer. I'm Stew Miniman. Thanks for watching theCUBE. (techno music)

>> Announcer: Live from Vancouver, Canada, it's theCUBE covering OpenStack Summit North America 2018, brought to you by Red Hat, The OpenStack Foundation, and its ecosystem partners. >> Welcome back to theCUBE's coverage of OpenStack Summit 2018 in beautiful Vancouver, British Columbia. It's Victoria Day, but we're working. So for John Troyer, I'm Stu Miniman. Happy to welcome back to the program, we've got Tim Burke who's the Vice President of Infrastructure and Cloud Engineering with Red Hat, and fresh off the keynote stage we have Mark McLoughlin who's the Senior Director of Engineering for OpenStack, also with Red Hat. Gentleman, thank you so much for joining us. >> Our pleasure, thank you. >> Thank you. All right, so Mark, I'll start with you. Keynote stage, you had a good discussion about, we were talking about open source, talking about community, is the themes that we heard at Red Hat Summit last weekend and again here at OpenStack. It's a nice couple of years in a row we've had the back-to-back of those two shows, so give us a little bit encapsulation of that message. >> Sure, I mean the key message of the keynote, really, was talking about the overlapping missions between the OpenStack and Kubernetes and really kind of showing how they come together for our customers and for users generally in terms of tackling that kind of broad, open infrastructure challenge of trying to give businesses the opportunity to be free from the infrastructure providers in terms of being able to switch between infrastructure providers and also OpenStack in terms of its role offering kind of on-premise infrastructure as an alternative to the public cloud. >> Yeah, Tim, I want to get your viewpoint on some things. It's interesting, we talk about we're at the OpenStack show but we're talking about containers, we're talking about edge computing. I think about one of the other foundations, The Linux Foundation does way more than Linux these days. They're doing all the cloud native things. Reminds me a lot of Red Hat themselves, broad spectrum of products. Sometimes it can almost get a little bit overwhelming for most people to say, "Oh my god, "there's so many projects, there's so many products. "How do you help me get to where I need to go "and where I need to go tomorrow?" What are you hearing from customers? How do you manage that? >> I think a lot of this mirrors Red Hat Enterprise Linux, and back when we started it was the day of the Unix wars, right? And in the early days of Linux it was this big challenge of getting your graphics drivers and putting all these pieces together, right? And now today it's more about broader infrastructure orchestration. And you see Mark Collier, for example, from The OpenStack Foundation started today showing a list of 30 different components that you have to piece together. And really, I think that that's what Red Hat focuses on, is two things. It's one, is where do we want to take the technology tomorrow through our open source fund, ranging from Linux to OpenStack and Ceph Filesystems, for example. But it's not just that. It's how do you get these pieces to work together? And I think that that's something that hasn't traditionally been the strength of the open source community because they may stick into these silos of operation. And I think that Red Hat's focus and strength right now is to do what we did for Red Hat Enterprise Linux in the OpenStack space by pulling all of these pieces together in a consumable and supported manner. >> Yeah, it's funny you mention getting graphics cards in. Come on, with the Queen's announcement we now have the virtual GPU support, so it feels like, but you know what, we've come so far yet. We're doing some of the same things over again. What are you hearing that's just massively different about kind of the state of open source today? And we just had one of your customers on talking about their digital transformation. >> I think what's really changed over the years in open source is I think it started out, honestly, as a clone. It was like can we compete with the likes of Solaris, right? And so it was, I'd call it catch up for innovation. Now you look at open source. It's not catching up, it's leading all the innovation today whether it's all the major public clouds are based on open source technologies. When we started open source was unproven and many customers were skeptical of consuming it. Now you're seeing customers, governments, all sorts of different businesses demanding open source because they want choice, they don't want to be locked into any one vendor, and they want to be able to work collaboratively to harness the power. And I think that collective collaborative model has really pretty proven its effectiveness. >> Mark, I wanted to talk a little bit about OpenStack itself. I think last year at OpenStack Summit there was a lot of talk. People seemed to be a little bit confused or at least there was a lot of interesting architectural conversations, containers on top, containers on the bottom, what sits on the bare metal. This year both at Red Hat Summit and here and even in the industry at large I think a lot of that conversation has clarified. There's the (laughs) application layer and there's an infrastructure layer which does very hard things that the application layer does not have to worry about. How are you looking at OpenStack as a citizen of the industry and of the Stack connections with other open source and taking care of that infrastructure piece in 2018, right, which is, we're pretty far from where we started. >> No, great points. To highlight those architectural discussions and really trying to figure out the kind of layering there obviously kind of approach OpenStack as kind of the best tool for managing your infrastructure, getting your infrastructure under control, making it scalable, making it automatable, and then building an application platform on top of that. I may have confused the architectural discussion a little bit this morning with the keynote because what we actually showed in the keynote was on the rack on stage we had an OpenStack cloud running on bare metal and then we would end deploying Kubernetes. Our open shift distribution, we were deploying that also on bare metal alongside OpenStack. Whereas I think often people would assume if you're going to do Kubernetes on OpenStack you're going to do it in virtual machines that are managed by OpenStack. But we were actually showing how you can use OpenStack to manage the bare metal, that you're actually running Kubernetes directly on the bare metal but that there's still integration between Kubernetes and OpenStack when they're side by side. So maybe confused the architectural discussion a little bit more but I think it's really trying to highlight that that assumption of running Kubernetes inside virtual machines isn't necessary. >> You used one of my favorite tools in your keynote. You used Venn diagrams because it is not a thing over here and a thing over here. There's overlap and there's decisions that you'll make, and lots of customers want a platform that will guide them down that path. And they also, oh wait, but I have this custom thing that I need to do. What's the biggest problem we have in IT, is it's not standardized and nothing ever gets thrown away. It's like I want to run my docker image on a z/VM in a mainframe. Oh, Walmart does that, but they also have an OpenStack deployment. So (laughs) you hear all of these discussions out there where it's like wait, is this, you know, (laughs) is this the main thing? Is this modified? What sits on what and where? So it's and, it seems to be, and there's a lot of choices. >> Absolutely, and I think one of the really, you know, one of the really interesting things when you're working in this space is you realize that customers are making really long-term strategic decisions appear. The example I used today was BBVA, and they realized that they needed to kind of keep up with a fast-changing market and they needed an internal platform to allow them to do that. And this is about them making a long-term decision about how they were going to build that platform into the, it's a really kind of long-term and basing their business on that and its future. So that's, it's kind of humbling in terms of having that responsibility of making that work. >> Yeah, Tim, maybe we can get your comments on the ecosystem. We sure have watched three years ago when we were here HP had a big army coming in here as to they doing their distribution. Well, HP's a hardware, HPE, I should say as they are now (laughs) is a hardware partner. Red Hat works across all of the traditional infrastructure companies. This ecosystem changed. Red Hat has a broad ecosystem. What are you seeing out there? What do you get from the partners that they're asking, and how does that play? >> Yeah, I think this really, again, mirrors our approach to Red Hat Enterprise Linux. And so if you look at all the different dimensions of compute, network, and storage, we have ecosystem partners in all of those. So we have the likes for storage, we have NetApp, EMC, IBM, many others. We have backup vendors like Trilio in on that. On the network front we have Cisco, Juniper, many others. We have ecosystem partners of all the major hardware OEMs. We have ecosystem partners in Innovee and Telco, all those spaces. So I think what really is the main driver of Red Hat Enterprise Linux is the ecosystem. It's not really the kernel anymore. It's like how do you run a consistent platform across multiple footprints? And that's what Red Hat is trying to provide because today I see there is a risk of vendor lock, and just like back in the day it was mainframe, right? Try to get everything from the lowest layer to the top layer on one platform. Many of the public cloud vendors are trying to be that one-stop shop, almost analogous to the mainframe. And what we're trying to do just like we did before for his ecosystem is to provide through leveraging the power of open source a platform that people can run, a hybrid platform that they can accelerate their business not only on all the different public clouds but also on-premise as well. >> It's interesting, last week of course big announcement with Red Hat is Microsoft's up on stage. It was like cats and dogs living together. Year before, Amazon you had a big announcement with. With Kubernetes and so many of these different tools, yes, there's that vertical integration but most of the companies understand that they're going to be in a customer environment and other people are. There's no longer, it's oh, IBM of 50 years ago where I'm going to be full in on that chop. >> Right, and I see Kubernetes is also, it's a huge open source project. So this is the difference between upstream and productization. It's what Red Hat does, is we do our maintenance, our support, our hardening, creation of this ecosystem, long life cycle support. The same thing's going to happen in Kubernetes where it's you don't just grab it upstream and run with whatever happens to be in it. And I think that there's a lot of companies that are claiming that just that Kubernetes is ubiquitous. And it's like the community innovation is ubiquitous and we're all in for advancing that. But it's really, if you're going to bet your business you want something that's productized and hardened by a contributor that you can trust. >> Well Tim, I want to connect that back with some of the other stuff that we've talked about on stage today. RHEL, super solid, history of engineering. The lower levels of your Stack need to be solid because you depend (laughs) on them. We talked a little bit about, on stage, about upgrades and things like that and how people are moving forward, the release schedule. I don't know, Mark, how are you approaching both upgrades and automation with Ansible? But other, OpenStack has other components too. How are you approaching that in the OpenStack day two to day 1000 scenario? >> Well absolutely, great question because today we've just announced our upcoming Red Hat OpenStack Platform 13 release, and that's our long life cycle release. So our last long life cycle release was version 10, and we've had a couple of shorter life versions in between. But when it comes to the upstream community what's supported in terms of upgrade is between those individual versions. When we came out with version 13, with this long life version, we have to support seamless upgrades between 10 and 13 in place without disrupting workloads that are running in your environment and make it completely smooth and seamless. And we're doing that with a feature called fast forward upgrades which is completely automated with Ansible. So that's been a big part of our focus with our engineering investment for open-- >> Ansible came up a couple of times on stage both with Zuul and also with the fast forward upgrades and it might have slipped in there a couple more times. It seems like Ansible is a big part of even this community. >> No, we're very happy with Ansible and it's a really powerful tool when it comes to automation. Got an amazing community around us. Kind of real, it's been a kind of an organic growth and we've been really happy with the team since they've joined Red Hat. It's a great foundation for everything we're doing. >> And Ansible's not just a foundation with an OpenStack. It's, for example, we have Ceph integration in with Ansible. We have OpenShift is how we deploy it using Ansible. It's how we're using NREL to what we call System Roles to be able to make it easier to upgrade from one to the other. So by combining a single technology it's making it easier for us to put together an integrated portfolio. >> Great, Tim, when people leave this show what are some of the key messages you want to make sure that they've heard from Red Hat as part of this community? >> I would say that it's Red Hat is bringing an integrated portfolio Stack because it's not just about components. It's really about how can you build, develop, and deploy applications rapidly and what's the most enterprise-ready dynamic environment that enables you to do that, and that's what we think that the power of Red Hat through its credibility in the open source community to bring all of those pieces of the Stack together from top to bottom. >> Stu: All right, and Mark, we'll give you the final word. >> Yeah, I'd actually reach for what we're reinforcing a lot on this summit. We're talking about innovate, empower, and accelerate, and that's really about these businesses that are our customers who are dealing with the challenge of trying to keep up with a rapidly changing market. And they need to innovate more. They need to move faster, need to accelerate. But they also need to empower their own application developers to do that innovation, to really kind of keep pace with the market. >> All right, well Tim Burke, Mark McLoughlin, thanks so much for all of the updates here. For John Troyer, I'm Stu Miniman. Back with much more coverage here at OpenStack Summit 2018 in Vancouver. Thanks for watching theCUBE. (upbeat music) (slow tones playing)

>> Announcer: Live from San Francisco, it's theCUBE, covering Red Had SUMMIT 2018, brought to you by Red Hat. >> Hello everyone, welcome back. This is theCUBE's exclusive live coverage here in San Francisco at Red Hat SUMMIT 2018. I'm John Furrier with my co-host John Troyer. Our next guest is Arkady Kanevsky, Ph.D, Director Software Development at Dell EMC, Service Provider Business Unit. Thanks for joining us, thanks for coming on. >> Thank you for having me here. >> So we were just talking before we came on, obviously great, we're in the middle of the open here in the hall, in Moscone West. But you guys have a definition of service providers. It's very broad. It's obviously Dell EMC, you guys, Dell's tons of equipment that they sell, providing a lot of the equipment What does that, just take a quick second to describe who you guys are targeting, and your role here at Red Hat SUMMIT? >> Sure so we are a small portion within the Dell EMC portfolio and the organization I am in specifically creating a target and a solution for service providers. The service provider, you know the probably best known service providers are telecommunication service providers, AT&T, Verizon, Telestrom, you know all over the world. Very highly regulated areas, and have been around forever, and they are going through the major transformation right now from the 4G to 5G, network age, and so on. But we are also covering the much larger set of the providers. If you can think of the hosted service provider, managed service providers, those are the people who either have as a core of their business, providing the services for their customers. If you can think of the eBay, or Amazon, or Google, they have the services which are, they're running public cloud or not a public cloud for general sense, but for specific purpose which they're delivering, SalesForce, >> Yeah everyone's a service provider. If they're using cloud, they're some sort of service provider right? >> If they're delivering they're volume through the service, then they are the service providers. If you are, you know you have the businesses which are still doing the business the way they were doing before. Banks are not really service providers. They are not them, and yes they communicate with their customers through the portals, but that's not the purpose of their business. >> It's great now in 2018, we are gettin' some clarity on cloud right. We thought maybe it was all into public, now we see that actually there's a lot of use cases for smaller public clouds, hybrid clouds, private clouds depending on peoples needs. I'm curious how the service provider world, specifically like the MSBs, and the telcos of the world, are looking at how, what kinds of clouds they're going to provide, and maybe also how they partner with the bigger clouds. >> So there is a different angle there. So people, a lot of the work being done in a public cloud, initially when they try to do the development of their new application because it's the easiest way for them to do it, but once you hit the next level and you need to deliver it as a service in a special and more regulated environment, where we have certain strict security requirement. You want to protect access to the data. A lot of the time they kind of do the hybrid, go on the hybrid model because it's much more, they have better control of what they're doing. I mean some of the announcement and some of the demos, we showed that today in the keynote today and two days ago, we're clearly demonstrating this kind of approach. So we are partnering with Red Hat over developing the optimized platforms for the development and operation of those applications. All the way from RHEL Linux layer all the way up to OpenShift and beyond? >> All the way, we announced on Monday that we have our seventh joint version of Red Hat OpenStack already bundled. This is the first one where we start providing the workload optimized host, such that customer can choose to optimize from the hardware, to the operating system, to the OpenStack for their specific workload. We have a profile, pre-defined profile for NFE and we have a pre-defined profile for web based application, and of course it's open sourced, and extendible, flexible, and provide what customer expecting for their own use cases. >> How 'about the relationship between Dell, now Dell EMC, now Dell Technologies, and a variety of other things, the relationship with Red Hat. How long, how many years, how deep? How would you describe the relationship time-wise, and just duration, and depth? >> Very happy to, so we start our relationship 18 years ago, in 2001 was the first release of the laptops and the servers with a pre-installed program that on the factory, and Dell, at that time Dell was OEMing that solution for the customers. Over the years since that we started developing more and more solutions for different customer domain. We have HPC based solution, again URL based. We have SAP, we have Oracle, and variety of different Hadoop Open, Hadoop variation of the Hadoop, again on the base RHEL platforms. And most recently the OpenStack over the last five years. At the Dell Technology World last week, we announced all of the OpenShift on bare metal as a joint solution between the two companies. We have the OpenShift on OpenStack which we announced two years ago, still supportable and delivered to our customers. So the goal for us is to provide the flexibility and choices for the customers. >> What's the unique value for customers that you guys bring to the table? What's the unique value with the Red Hat relationship that's the most important? >> So the most important is the robustness of the integrated solutions, and the two companies together standing behind them. So they can go either to Red Hat or to Dell EMC and we together delivering of the solution. It is robust, it is still open and flexible, but it is also optimized all the way from hardware to the top layer of the software for their use cases. >> So customers are concerned, obviously we saw Spectre bug, and all this stuff going on with security. Red Hat customers, they're not micro-coders, I mean they have to upgrade. You guys have to take that responsibility at the hardware level, and some great certification, we know that. Going forward as the stacks become robust from, you know down to the chip level, up through applications, well you've got DevOps, you've got all these cool things happening. How are you guys keeping up with the pace to mitigate security risks and continuing the partnership? What's the story of the customer? What should they know about that particular piece? >> So obviously we are taking care of security on multiple layers from the micro-code, as you pointed out, in the solution partnering not only with Red Hat but with Intel and the hardware vendors to ensure that all of the mitigated, mitigation factors are put into place for security. But most importantly we are providing the tooling to make the benching and fixes in automated way without any disruption to the workloads which customer are running. Or minimizing the disruption for the workload so you can do all of your securities updates and for that matter, upgrades of the solution in such a way that you're minimizing the disruption for your customers. >> Okay so security, obviously hugely important. One of the themes of this event has been talking to the IT audience about kind of up-leveling digital, but you can call it digital transformation, but actually bringing more business value, and that's been really well received here as you realize all the demos, faster time to market, more business value, faster time to value. So as you talk with the customers here, and service providers. What are they asking you as a director of the software stack that has to, that you could look at as just the bottom of the stack, but in fact is hugely important to what they're doing. So what are you having to provide from the Dell side to help that acceleration? >> So the most important thing that our customer looking for is partnership. They're looking for us working with Intel, with Red Hat, and with partners specific to their area, to do together integration, and so we can provide the support and lifecyle of the solutions. >> John T: You're part of the rubber hits the road. They buy the unit, and the system, and the software from you. It better be all integrated and work. >> Correct, so again they go on this Oz with Red Hat because they want to have a flexibility so they can add more things, but what they're looking for, especially teleco providers, they would like Oz to partner all the way down to the next level-up with NFE lenders. The people who are providing them virtualized functions, so they can bring that to the solution and have level of confidence and you know peace of mind, that all of those pieces have been integrated together, validated together, and we have a continuous program where we take care of them of the full upgrade and lifecyle of not individual pieces, but the whole thing. >> Once your customers know about your relationship with Red Hat, want to get to the end of the statement, which is really even important. 'Cause I think this is important. We're seeing more and more security go from chip, to the OS, to the application layer. There's going to be more and more of that, and you got to evolve your relationship and technology. >> Yes. >> What should they know about Dell, Dell Technologies, Dell EMC, Dell proper and that's most important for them to understand, what you guys do for customers. >> So one of the most important things to understand, now we are Dell Technology. We have been Dell Technology for about a year and a lot of the integration pieces start being mature and now we can have a joint integrate solution. One of the big piece of the Dell Technology portfolio is RSA. They're probably the oldest and the most established security company in the world. And we are getting more and more integration of their tool sets into various solutions across the board. And that probably is the unique value which we as a Dell Technology can provide because we have individual pieces which are leaders in their specific field and we can put all of those pieces together to have the value to the customers through one place. >> That's exciting, well thanks for coming on and sharing the insight. We love Michael Dell, been a big fan, and Michael's been on theCUBE many times. He listens, he's probably watching right now. Hey Michael, how are you? Sorry I missed Dell EMC World, or Dell World, but John was there with Stu. Great to have you on. We've seen continuous success and a lot of skeptics on that merger, or the mergers, or the whole thing, and Pivotal just went public. Things are happening. >> Definitely, exciting time to live in. >> Yeah, thanks for coming on. More live coverage here in San Francisco at Red Hat SUMMIT 2018. I'm John Furrier, John Troyer, stay with us for more coverage after this short break. (digital music)

[Music] [Music] [Music] [Music] [Music] [Music] that will be successful in the 21st century [Music] being open is really important because it comes with a lot of trust the open-source community now has matured so much and that contribution from the community is really driving innovation [Music] but what's really exciting is the change that we've seen in our teams not only the way they collaborate but the way they operate in the way they work [Music] I think idea is everything ideas can change the way you see things open-source is more than a license it's actually a way of operating [Music] ladies and gentlemen please welcome Red Hat president and chief executive officer Jim Whitehurst [Music] all right well welcome to day two at the Red Hat summit I'm amazed to see this many people here at 8:30 in the morning given the number of people I saw pretty late last night out and about so thank you for being here and have to give a shout out speaking of power participation that DJ is was Mike Walker who is our global director of open innovation labs so really enjoyed that this morning was great to have him doing that so hey so day one yesterday we had some phenomenal announcements both around Red Hat products and things that we're doing as well as some great partner announcements which we found exciting I hope they were interesting to you and I hope you had a chance to learn a little more about that and enjoy the breakout sessions that we had yesterday so yesterday was a lot about the what with these announcements and partnerships today I wanted to spin this morning talking a little bit more about the how right how do we actually survive and thrive in this digitally transformed world and to some extent the easy parts identifying the problem we all know that we have to be able to move more quickly we all know that we have to be able to react to change faster and we all know that we need to innovate more effectively all right so the problem is easy but how do you actually go about solving that right the problem is that's not a product that you can buy off the shelf right it is a capability that you have to build and certainly it's technology enabled but it's also depends on process culture a whole bunch of things to figure out how we actually do that and the answer is likely to be different in different organizations with different objective functions and different starting points right so this is a challenge that we all need to feel our way to an answer on and so I want to spend some time today talking about what we've seen in the market and how people are working to address that and it's one of the reasons that the summit this year the theme is ideas worth it lorring to take us back on a little history lesson so two years ago here at Moscone the theme of the summit was the power of participation and then I talked a lot about the power of groups of people working together and participating are able to solve problems much more quickly and much more effectively than individuals or even individual organizations working by themselves and some of the largest problems that we face in technology but more broadly in the world will ultimately only be solved if we effectively participate and work together then last year the theme of the summit was the impact of the individual and we took this concept of participation a bit further and we talked about how participation has to be active right it's a this isn't something where you can be passive that you can sit back you have to be involved because the problem in a more participative type community is that there is no road map right you can't sit back and wait for an edict on high or some central planning or some central authority to tell you what to do you have to take initiative you have to get involved right this is a active participation sport now one of the things that I talked about as part of that was that planning was dead and it was kind of a key my I think my keynote was actually titled planning is dead and the concept was that in a world that's less knowable when we're solving problems in a more organic bottom-up way our ability to effectively plan into the future it's much less than it was in the past and this idea that you're gonna be able to plan for success and then build to it it really is being replaced by a more bottom-up participative approach now aside from my whole strategic planning team kind of being up in arms saying what are you saying planning is dead I have multiple times had people say to me well I get that point but I still need to prepare for the future how do I prepare my organization for the future isn't that planning and so I wanted to spend a couple minutes talk a little more detail about what I meant by that but importantly taking our own advice we spent a lot of time this past year looking around at what our customers are doing because what a better place to learn then from large companies and small companies around the world information technology organizations having to work to solve these problems for their organizations and so our ability to learn from each other take the power of participation an individual initiative that people and organizations have taken there are just so many great learnings this year that I want to get a chance to share I also thought rather than listening to me do that that we could actually highlight some of the people who are doing this and so I do want to spend about five minutes kind of contextualizing what we're going to go through over the next hour or so and some of the lessons learned but then we want to share some real-world stories of how organizations are attacking some of these problems under this how do we be successful in a world of constant change in uncertainty so just going back a little bit more to last year talking about planning was dead when I said planning it's kind of a planning writ large and so that's if you think about the way traditional organizations work to solve problems and ultimately execute you start off planning so what's a position you want to get to in X years and whether that's a competitive strategy in a position of competitive advantage or a certain position you want an organizational function to reach you kind of lay out a plan to get there you then typically a senior leaders or a planning team prescribes the sets of activities and the organization structure and the other components required to get there and then ultimately execution is about driving compliance against that plan and you look at you say well that's all logical right we plan for something we then figure out how we're gonna get there we go execute to get there and you know in a traditional world that was easy and still some of this makes sense I don't say throw out all of this but you have to recognize in a more uncertain volatile world where you can be blindsided by orthogonal competitors coming in and you the term uber eyes you have to recognize that you can't always plan or know what the future is and so if you don't well then what replaces the traditional model or certainly how do you augment the traditional model to be successful in a world that you knows ambiguous well what we've heard from customers and what you'll see examples of this through the course of this morning planning is can be replaced by configuring so you can configure for a constant rate of change without necessarily having to know what that change is this idea of prescription of here's the activities people need to perform and let's lay these out very very crisply job descriptions what organizations are going to do can be replaced by a greater degree of enablement right so this idea of how do you enable people with the knowledge and things that they need to be able to make the right decisions and then ultimately this idea of execution as compliance can be replaced by a greater level of engagement of people across the organization to ultimately be able to react at a faster speed to the changes that happen so just double clicking in each of those for a couple minutes so what I mean by configure for constant change so again we don't know exactly what the change is going to be but we know it's going to happen and last year I talked a little bit about a process solution to that problem I called it that you have to try learn modify and what that model try learn modify was for anybody in the app dev space it was basically taking the principles of agile and DevOps and applying those more broadly to business processes in technology organizations and ultimately organizations broadly this idea of you don't have to know what your ultimate destination is but you can try and experiment you can learn from those things and you can move forward and so that I do think in technology organizations we've seen tremendous progress even over the last year as organizations are adopting agile endeavor and so that still continues to be I think a great way for people to to configure their processes for change but this year we've seen some great examples of organizations taking a different tack to that problem and that's literally building modularity into their structures themselves right actually building the idea that change is going to happen into how you're laying out your technology architectures right we've all seen the reverse of that when you build these optimized systems for you know kind of one environment you kind of flip over two years later what was the optimized system it's now called a legacy system that needs to be migrated that's an optimized system that now has to be moved to a new environment because the world has changed so again you'll see a great example of that in a few minutes here on stage next this concept of enabled double-clicking on that a little bit so much of what we've done in technology over the past few years has been around automation how do we actually replace things that people were doing with technology or augmenting what people are doing with technology and that's incredibly important and that's work that can continue to go forward it needs to happen it's not really what I'm talking about here though enablement in this case it's much more around how do you make sure individuals are getting the context they need how are you making sure that they're getting the information they need how are you making sure they're getting the tools they need to make decisions on the spot so it's less about automating what people are doing and more about how can you better enable people with tools and technology now from a leadership perspective that's around making sure people understand the strategy of the company the context in which they're working in making sure you've set the appropriate values etc etc from a technology perspective that's ensuring that you're building the right systems that allow the right information the right tools at the right time to the right people now to some extent even that might not be hard but when the world is constantly changing that gets to be even harder and I think that's one of the reasons we see a lot of traction and open source to solve these problems to use flexible systems to help enterprises be able to enable their people not just in it today but to be flexible going forward and again we'll see some great examples of that and finally engagement so again if execution can't be around driving compliance to a plan because you no longer have this kind of Cris plan well what do leaders do how do organizations operate and so you know I'll broadly use the term engagement several of our customers have used this term and this is really saying well how do you engage your people in real-time to make the right decisions how do you accelerate a pace of cadence how do you operate at a different speed so you can react to change and take advantage of opportunities as they arise and everywhere we look IT is a key enabler of this right in the past IT was often seen as an inhibitor to this because the IT systems move slower than the business might want to move but we are seeing with some of these new technologies that literally IT is becoming the enabler and driving the pace of change back on to the business and you'll again see some great examples of that as well so again rather than listen to me sit here and theoretically talk about these things or refer to what we've seen others doing I thought it'd be much more interesting to bring some of our partners and our customers up here to specifically talk about what they're doing so I'm really excited to have a great group of customers who have agreed to stand in front of 7,500 people or however many here this morning and talk a little bit more about what they're doing so really excited to have them here and really appreciate all them agreeing to be a part of this and so to start I want to start with tee systems we have the CEO of tee systems here and I think this is a great story because they're really two parts to it right because he has two perspectives one is as the CEO of a global company itself having to navigate its way through digital disruption and as a global cloud service provider obviously helping its customers through this same type of change so I'm really thrilled to have a del hasta li join me on stage to talk a little bit about T systems and what they're doing and what we're doing jointly together so Adelle [Music] Jim took to see you Adele thank you for being here you for having me please join me I love to DJ when that fantastic we may have to hire him no more events for events where's well employed he's well employed though here that team do not give him mics activation it's great to have you here really do appreciate it well you're the CEO of a large organization that's going through this disruption in the same way we are I'd love to hear a little bit how for your company you're thinking about you know navigating this change that we're going through great well you know key systems as an ICT service provider we've been around for decades I'm not different to many of our clients we had to change the whole disruption of the cloud and digitization and new skills and new capability and agility it's something we had to face as well so over the last five years and especially in the last three years we invested heavily invested over a billion euros in building new capabilities building new offerings new infrastructures to support our clients so to be very disruptive for us as well and so and then with your customers themselves they're going through this set of change and you're working to help them how are you working to help enable your your customers as they're going through this change well you know all of them you know in this journey of changing the way they run their business leveraging IT much more to drive business results digitization and they're all looking for new skills new ideas they're looking for platforms that take them away from traditional waterfall development that takes a year or a year and a half before they see any results to processes and ways of bringing applications in a week in a month etcetera so it's it's we are part of that journey with them helping them for that and speaking of that I know we're working together and to help our joint customers with that can you talk a little bit more about what we're doing together sure well you know our relationship goes back years and years with with the Enterprise Linux but over the last few years we've invested heavily in OpenShift and OpenStack to build peope as layers to build you know flexible infrastructure for our clients and we've been working with you we tested many different technology in the marketplace and been more successful with Red Hat and the stack there and I'll give you an applique an example several large European car manufacturers who have connected cars now as a given have been accelerating the applications that needed to be in the car and in the past it took them years if not you know scores to get an application into the car and today we're using open shift as the past layer to develop to enable these DevOps for these companies and they bring applications in less than a month and it's a huge change in the dynamics of the competitiveness in the marketplace and we rely on your team and in helping us drive that capability to our clients yeah do you find it fascinating so many of the stories that you hear and that we've talked about with with our customers is this need for speed and this ability to accelerate and enable a greater degree of innovation by simply accelerating what what we're seeing with our customers absolutely with that plus you know the speed is important agility is really critical but doing it securely doing it doing it in a way that is not gonna destabilize the you know the broader ecosystem is really critical and things like GDP are which is a new security standard in Europe is something that a lot of our customers worry about they need help with and we're one of the partners that know what that really is all about and how to navigate within that and use not prevent them from using the new technologies yeah I will say it isn't just the speed of the external but the security and the regulation especially GDR we have spent an hour on that with our board this week there you go he said well thank you so much for being here really to appreciate the work that we're doing together and look forward to continued same here thank you thank you [Applause] we've had a great partnership with tea systems over the years and we've really taken it to the next level and what's really exciting about that is you know we've moved beyond just helping kind of host systems for our customers we really are jointly enabling their success and it's really exciting and we're really excited about what we're able to to jointly accomplish so next i'm really excited that we have our innovation award winners here and we'll have on stage with us our innovation award winners this year our BBVA dnm IAG lasat Lufthansa Technik and UPS and yet they're all working in one for specific technology initiatives that they're doing that really really stand out and are really really exciting you'll have a chance to learn a lot more about those through the course of the event over the next couple of days but in this context what I found fascinating is they were each addressing a different point of this configure enable engage and I thought it would be really great for you all to hear about how they're experimenting and working to solve these problems you know real-time large organizations you know happening now let's start with the video to see what they think about when they think about innovation I define innovation is something that's changing the model changing the way of thinking not just a step change improvement not just making something better but actually taking a look at what already exists and then putting them together in new and exciting lives innovation is about to build something nobody has done before historically we had a statement that business drives technology we flip that equation around an IT is now demonstrating to the business at power of technology innovation desde el punto de vista de la tecnología supone salir de plataform as proprietary as ADA Madero cloud basado an open source it's a possibility the open source que no parameter no sir Kamala and I think way that for me open-source stands for flexibility speed security the community and that contribution from the community is really driving innovation innovation at a pace that I don't think our one individual organization could actually do ourselves right so first I'd like to talk with BBVA I love this story because as you know Financial Services is going through a massive set of transformations and BBVA really is at the leading edge of thinking about how to deploy a hybrid cloud strategy and kind of modular layered architecture to be successful regardless of what happens in the future so with that I'd like to welcome on stage Jose Maria Rosetta from BBVA [Music] thank you for being here and congratulations on your innovation award it's been a pleasure to be here with you it's great to have you hi everybody so Josemaria for those who might not be familiar with BBVA can you give us a little bit of background on your company yeah a brief description BBVA is is a bank as a financial institution with diversified business model and that provides well financial services to more than 73 million of customers in more than 20 countries great and I know we've worked with you for a long time so we appreciate that the partnership with you so I thought I'd start with a really easy question for you how will blockchain you know impact financial services in the next five years I've gotten no idea but if someone knows the answer I've got a job for him for him up a pretty good job indeed you know oh all right well let me go a little easier then so how will the global payments industry change in the next you know four or five years five years well I think you need a a Weezer well I tried to make my best prediction means that in five years just probably will be five years older good answer I like that I always abstract up I hope so I hope so yah-yah-yah hope so good point so you know immediately that's the obvious question you have a massive technology infrastructure is a global bank how do you prepare yourself to enable the organization to be successful when you really don't know what the future is gonna be well global banks and wealth BBBS a global gam Bank a certain component foundations you know today I would like to talk about risk and efficiency so World Bank's deal with risk with the market great the operational reputational risk and so on so risk control is part of all or DNA you know and when you've got millions of customers you know efficiency efficiency is a must so I think there's no problem with all these foundations they problem the problem analyze the problems appears when when banks translate these foundations is valued into technology so risk control or risk management avoid risk usually means by the most expensive proprietary technology in the market you know from one of the biggest software companies in the world you know so probably all of you there are so those people in the room were glad to hear you say that yeah probably my guess the name of those companies around San Francisco most of them and efficiency usually means a savory business unit as every department or country has his own specific needs by a specific solution for them so imagine yourself working in a data center full of silos with many different Hardware operating systems different languages and complex interfaces to communicate among them you know not always documented what really never documented so your life your life in is not easy you know in this scenario are well there's no room for innovation so what's been or or strategy be BES ready to move forward in this new digital world well we've chosen a different approach which is quite simple is to replace all local proprietary system by a global platform based on on open source with three main goals you know the first one is reduce the average transaction cost to one-third the second one is increase or developers productivity five times you know and the third is enable or delete the business be able to deliver solutions of three times faster so you're not quite easy Wow and everything with the same reliability as on security standards as we've got today Wow that is an extraordinary set of objectives and I will say their world on the path of making that successful which is just amazing yeah okay this is a long journey sometimes a tough journey you know to be honest so we decided to partnership with the with the best companies in there in the world and world record we think rate cut is one of these companies so we think or your values and your knowledge is critical for BBVA and well as I mentioned before our collaboration started some time ago you know and just an example in today in BBVA a Spain being one of the biggest banks in in the country you know and using red hat technology of course our firm and fronting architecture you know for mobile and internet channels runs the ninety five percent of our customers request this is approximately 3,000 requests per second and our back in architecture execute 70 millions of business transactions a day this is almost a 50% of total online transactions executed in the country so it's all running yes running I hope so you check for you came on stage it's I'll be flying you know okay good there's no wood up here to knock on it's been a really great partnership it's been a pleasure yeah thank you so much for being here thank you thank you [Applause] I do love that story because again so much of what we talk about when we when we talk about preparing for digital is a processed solution and again things like agile and DevOps and modular izing components of work but this idea of thinking about platforms broadly and how they can run anywhere and actually delivering it delivering at a scale it's just a phenomenal project and experience and in the progress they've made it's a great team so next up we have two organizations that have done an exceptional job of enabling their people with the right information and the tools they need to be successful you know in both of these cases these are organizations who are under constant change and so leveraging the power of open-source to help them build these tools to enable and you'll see it the size and the scale of these in two very very different contexts it's great to see and so I'd like to welcome on stage Oh smart alza' with dnm and David Abraham's with IAG [Music] Oh smart welcome thank you so much for being here Dave great to see you thank you appreciate you being here and congratulations to you both on winning the Innovation Awards thank you so Omar I really found your story fascinating and how you're able to enable your people with data which is just significantly accelerated the pace with which they can make decisions and accelerate your ability to to act could you tell us a little more about the project and then what you're doing Jim and Tina when the muchisimas gracias por ever say interesado pono true projecto [Music] encargado registry controller las entradas a leda's persona por la Frontera argentina yo sé de dos siento treinta siete puestos de contrôle tienen lo largo de la Frontera tanto area the restreamer it EEMA e if looool in dilute ammonia shame or cinta me Jonas the tránsito sacra he trod on in another Fronteras dingus idea idea de la Magneto la cual estamos hablando la Frontera cantina tienen extension the kin same in kilo metros esto es el gada mint a maje or allege Estancia kaeun a poor carretera a la co de mexico con el akka a direction emulation s 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calidad de vida de atras de mettre personas SI y meet our que el delito perform a trois Natura from Dana's Argentine sigue siendo en favor de esto SI temes uno de los países mess Alberto's Allah immigration en Latin America yah hora con una plataforma mas segunda first of all I want to thank you for the interest is played for our project the National migration administration or diem records the entry and exit of people on the Argentine territory it grants residents permits to foreigners who wish to live in our country through 237 entry points land air border sea and river ways Jim dnm registered over 80 million transits throughout last year Argentine borders cover about 15,000 kilometers just our just to give you an idea of the magnitude of our borders this is greater than the distance on a highway between Mexico City and Alaska our department applies the mechanisms that prevent the entry and residents of people involved in crimes like terrorism trafficking of persons weapons drugs and others in 2016 we shifted to a more preventive and predictive paradigm that is how Sam's the system for migration analysis was created with red hats great assistance and support this allowed us to tackle the challenge of integrating multiple and varied issues legal issues police databases national and international security organizations like Interpol API advanced passenger information and PNR passenger name record this involved starting private cloud with OpenShift Rev data virtualization cloud forms and fuse that were the basis to develop Sam and implementing machine learning models and artificial intelligence our analysts consulted a number of systems and other manual files before 2016 4 days for each person entering or leaving the country so this has allowed us to optimize our decisions making them in real time each time Sam is consulted it processes patterns of over two billion data entries Sam's aim is to improve the quality of life of our citizens and visitors making sure that crime doesn't pierce our borders in an environment of analytic evolution and constant improvement in essence Sam contributes toward Argentina being one of the leaders in Latin America in terms of immigration with our new system great thank you and and so Dave tell us a little more about the insurance industry and the challenges in the EU face yeah sure so you know in the insurance industry it's a it's been a bit sort of insulated from a lot of major change in disruption just purely from the fact that it's highly regulated and the cost of so that the barrier to entry is quite high in fact if you think about insurance you know you have to have capital reserves to protect against those major events like floods bush fires and so on but the whole thing is a lot of change there's come in a really rapid pace I'm also in the areas of customer expectations you know customers and now looking and expecting for the same levels of flexibility and convenience that they would experience with more modern and new startups they're expecting out of the older institutions like banks and insurance companies like us so definitely expecting the industry to to be a lot more adaptable and to better meet their needs I think the other aspect of it really is in the data the data area where I think that the donor is now creating a much more significant connection between organizations in a car summers especially when you think about the level of devices that are now enabled and the sheer growth of data that's that that's growing at exponential rates so so that the impact then is that the systems that we used to rely on are the technology we used to rely on to be able to handle that kind of growth no longer keeps up and is able to to you know build for the future so we need to sort of change that so what I G's really doing is transform transforming the organization to become a lot more efficient focus more on customers and and really set ourselves up to be agile and adaptive and so ya know as part of your Innovation Award that the specific set of projects you tied a huge amount of different disparate systems together and with M&A and other you have a lot to do there to you tell us a little more about kind of how you're able to better respond to customer needs by being able to do that yeah no you're right so we've we've we're nearly a hundred year old company that's grown from lots of merger and acquisition and just as a result of that that means that data's been sort of spread out and fragmented across multiple brands and multiple products and so the number one sort of issue and problem that we were hearing was that it was too hard to get access to data and it's highly complicated which is not great from a company from our perspective really because because we are a data company right that's what we do we we collect data about people what they what's important to them what they value and the environment in which they live so that we can understand that risk and better manage and protect those people so what we're doing is we're trying to make and what we have been doing is making data more open and accessible and and by that I mean making data more of easily available for people to use it to make decisions in their day-to-day activity and to do that what we've done is built a single data platform across the group that unifies the data into a single source of truth that we can then build on top of that single views of customers for example that puts the right information into the into the hands of the people that need it the most and so now why does open source play such a big part in doing that I know there are a lot of different solutions that could get you there sure well firstly I think I've been sauce has been k2 these and really it's been key because we've basically started started from scratch to build this this new next-generation data platform based on entirely open-source you know using great components like Kafka and Postgres and airflow and and and and and then fundamentally building on top of red Red Hat OpenStack right to power all that and they give us the flexibility that we need to be able to make things happen much faster for example we were just talking to the pivotal guys earlier this week here and some of the stuff that we're doing they're they're things quite interesting innovative writes even sort of maybe first in the world where we've taken the older sort of appliance and dedicated sort of massive parallel processing unit and ported that over onto red Red Hat OpenStack right which is now giving us a lot more flexibility for scale in a much more efficient way but you're right though that we've come from in the past a more traditional approach to to using vendor based technology right which was good back then when you know technology solutions could last for around 10 years or so on and and that was fine but now that we need to move much faster we've had to rethink that and and so our focus has been on using you know more commoditized open source technology built by communities to give us that adaptability and sort of remove the locking in there any entrenchment of technology so that's really helped us but but I think that the last point that's been really critical to us is is answering that that concern and question about ongoing support and maintenance right so you know in a regular environment the regulator is really concerned about anything that could fundamentally impact business operation and and so the question is always about what happens when something goes wrong who's going to be there to support you which is where the value of the the partnership we have with Red Hat has really come into its own right and what what it's done is is it's actually giving us the best of both worlds a means that we can we can leverage and use and and and you know take some of the technology that's being developed by great communities in the open source way but also partner with a trusted partner in red had to say you know they're going to stand behind that community and provide that support when we needed the most so that's been the kind of the real value out of that partnership okay well I appreciate I love the story it's how do you move quickly leverage the power community but do it in a safe secure way and I love the idea of your literally empowering people with machine learning and AI at the moment when they need it it's just an incredible story so thank you so much for being here appreciate it thank you [Applause] you know again you see in these the the importance of enabling people with data and in an old-world was so much data was created with a system in mind versus data is a separate asset that needs to be available real time to anyone is a theme we hear over and over and over again and so you know really looking at open source solutions that allow that flexibility and keep data from getting locked into proprietary silos you know is a theme that we've I've heard over and over over the past year with many of our customers so I love logistics I'm a geek that way I come from that background in the past and I know that running large complex operations requires flawless execution and that requires great data and we have two great examples today around how to engage own organizations in new and more effective ways in the case of lufthansa technik literally IT became the business so it wasn't enabling the business it became the business offering and importantly went from idea to delivery to customers in a hundred days and so this theme of speed and the importance of speed it's a it's a great story you'll hear more about and then also at UPS UPS again I talked a little earlier about IT used to be kind of the long pole in the tent the thing that was slow moving because of the technology but UPS is showing that IT can actually drive the business and the cadence of business even faster by demonstrating the power and potential of technology to engage in this case hundreds of thousands of people to make decisions real-time in the face of obviously constant change around weather mechanicals and all the different things that can happen in a large logistics operation like that so I'd like to welcome on stage to be us more from Lufthansa Technik and Nick Castillo from ups to be us welcome thank you for being here Nick thank you thank you Jim and congratulations on your Innovation Awards oh thank you it's a great honor so to be us let's start with you can you tell us a little bit more about what a viet are is yeah avatars are a digital platform offering features like aircraft condition analytics reliability management and predictive maintenance and it helps airlines worldwide to digitize and improve their operations so all of the features work and can be used separately or generate even more where you burn combined and finally we decided to set up a viet as an open platform that means that we avoid the whole aviation industry to join the community and develop ideas on our platform and to be as one of things i found really fascinating about this is that you had a mandate to do this at a hundred days and you ultimately delivered on it you tell us a little bit about that i mean nothing in aviation moves that fast yeah that's been a big challenge so in the beginning of our story the Lufthansa bot asked us to develop somehow digital to win of an aircraft within just hundred days and to deliver something of value within 100 days means you cannot spend much time and producing specifications in terms of paper etc so for us it was pretty clear that we should go for an angel approach and immediately start and developing ideas so we put the best experts we know just in one room and let them start to work and on day 2 I think we already had the first scribbles for the UI on day 5 we wrote the first lines of code and we were able to do that because it has been a major advantage for us to already have four technologies taken place it's based on open source and especially rated solutions because we did not have to waste any time setting up the infrastructure and since we wanted to get feedback very fast we were certainly visited an airline from the Lufthansa group already on day 30 and showed them the first results and got a lot of feedback and because from the very beginning customer centricity has been an important aspect for us and changing the direction based on customer feedback has become quite normal for us over time yeah it's an interesting story not only engaging the people internally but be able to engage with a with that with a launch customer like that and get feedback along the way as it's great thing how is it going overall since launch yeah since the launch last year in April we generated much interest in the industry as well from Airlines as from competitors and in the following month we focused on a few Airlines which had been open minded and already advanced in digital activities and we've got a lot of feedback by working with them and we're able to improve our products by developing new features for example we learned that data integration can become quite complex in the industry and therefore we developed a new feature called quick boarding allowing Airlines to integrate into the via table platform within one day using a self-service so and currently we're heading for the next steps beyond predictive maintenance working on process automation and prescriptive prescriptive maintenance because we believe prediction without fulfillment still isn't enough it really is a great example of even once you're out there quickly continuing to innovate change react it's great to see so Nick I mean we all know ups I'm still always blown away by the size and scale of the company and the logistics operations that you run you tell us a little more about the project and what we're doing together yeah sure Jim and you know first of all I think I didn't get the sportcoat memo I think I'm the first one up here today with a sport coat but you know first on you know on behalf of the 430,000 ups was around the world and our just world-class talented team of 5,000 IT professionals I have to tell you we're humbled to be one of this year's red hat Innovation Award recipients so we really appreciate that you know as a global logistics provider we deliver about 20 million packages each day and we've got a portfolio of technologies both operational and customer tech and another customer facing side the power what we call the UPS smart logistics network and I gotta tell you innovations in our DNA technology is at the core of everything we do you know from the ever familiar first and industry mobile platform that a lot of you see when you get delivered a package which we call the diad which believe it or not we delivered in 1992 my choice a data-driven solution that drives over 40 million of our my choice customers I'm whatever you know what this is great he loves logistics he's a my choice customer you could be one too by the way there's a free app in the App Store but it provides unmatched visibility and really controls that last mile delivery experience so now today we're gonna talk about the solution that we're recognized for which is called site which is part of a much greater platform that we call edge which is transforming how our package delivery teams operate providing them real-time insights into our operations you know this allows them to make decisions based on data from 32 disparate data sources and these insights help us to optimize our operations but more importantly they help us improve the delivery experience for our customers just like you Jim you know on the on the back end is Big Data and it's on a large scale our systems are crunching billions of events to render those insights on an easy-to-use mobile platform in real time I got to tell you placing that information in our operators hands makes ups agile and being agile being able to react to changing conditions as you know is the name of the game in logistics now we built edge in our private cloud where Red Hat technologies play a very important role as part of our overage overarching cloud strategy and our migration to agile and DevOps so it's it's amazing it's amazing the size and scale so so you have this technology vision around engaging people in a more effect way those are my word not yours but but I'd be at that's how it certainly feels and so tell us a little more about how that enables the hundreds of thousands people to make better decisions every day yep so you know we're a people company and the edge platform is really the latest in a series of solutions to really empower our people and really power that smart logistics network you know we've been deploying technology believe it or not since we founded the company in 1907 we'll be a hundred and eleven years old this August it's just a phenomenal story now prior to edge and specifically the syphon ishutin firm ation from a number of disparate systems and reports they then need to manually look across these various data sources and and frankly it was inefficient and prone to inaccuracy and it wasn't really real-time at all now edge consumes data as I mentioned earlier from 32 disparate systems it allows our operators to make decisions on staffing equipment the flow of packages through the buildings in real time the ability to give our people on the ground the most up-to-date data allows them to make informed decisions now that's incredibly empowering because not only are they influencing their local operations but frankly they're influencing the entire global network it's truly extraordinary and so why open source and open shift in particular as part of that solution yeah you know so as I mentioned Red Hat and Red Hat technology you know specifically open shift there's really core to our cloud strategy and to our DevOps strategy the tools and environments that we've partnered with Red Hat to put in place truly are foundational and they've fundamentally changed the way we develop and deploy our systems you know I heard Jose talk earlier you know we had complex solutions that used to take 12 to 18 months to develop and deliver to market today we deliver those same solutions same level of complexity in months and even weeks now openshift enables us to container raise our workloads that run in our private cloud during normal operating periods but as we scale our business during our holiday peak season which is a very sure window about five weeks during the year last year as a matter of fact we delivered seven hundred and sixty-two million packages in that small window and our transactions our systems they just spiked dramatically during that period we think that having open shift will allow us in those peak periods to seamlessly move workloads to the public cloud so we can take advantage of burst capacity economically when needed and I have to tell you having this flexibility I think is key because you know ultimately it's going to allow us to react quickly to customer demands when needed dial back capacity when we don't need that capacity and I have to say it's a really great story of UPS and red hat working you together it really is a great story is just amazing again the size and scope but both stories here a lot speed speed speed getting to market quickly being able to try things it's great lessons learned for all of us the importance of being able to operate at a fundamentally different clock speed so thank you all for being here very much appreciated congratulate thank you [Applause] [Music] alright so while it's great to hear from our Innovation Award winners and it should be no surprise that they're leading and experimenting in some really interesting areas its scale so I hope that you got a chance to learn something from these interviews you'll have an opportunity to learn more about them you'll also have an opportunity to vote on the innovator of the year you can do that on the Red Hat summit mobile app or on the Red Hat Innovation Awards homepage you can learn even more about their stories and you'll have a chance to vote and I'll be back tomorrow to announce the the summit winner so next I like to spend a few minutes on talking about how Red Hat is working to catalyze our customers efforts Marko bill Peter our senior vice president of customer experience and engagement and John Alessio our vice president of global services will both describe areas in how we are working to configure our own organization to effectively engage with our customers to use open source to help drive their success so with that I'd like to welcome marquel on stage [Music] good morning good morning thank you Jim so I want to spend a few minutes to talk about how we are configured how we are configured towards your success how we enable internally as well to work towards your success and actually engage as well you know Paul yesterday talked about the open source culture and our open source development net model you know there's a lot of attributes that we have like transparency meritocracy collaboration those are the key of our culture they made RedHat what it is today and what it will be in the future but we also added our passion for customer success to that let me tell you this is kind of the configuration from a cultural perspective let me tell you a little bit on what that means so if you heard the name my organization is customer experience and engagement right in the past we talked a lot about support it's an important part of the Red Hat right and how we are configured we are configured probably very uniquely in the industry we put support together we have product security in there we add a documentation we add a quality engineering into an organization you think there's like wow why are they doing it we're also running actually the IT team for actually the product teams why are we doing that now you can imagine right we want to go through what you see as well right and I'll give you a few examples on how what's coming out of this configuration we invest more and more in testing integration and use cases which you are applying so you can see it between the support team experiencing a lot what you do and actually changing our test structure that makes a lot of sense we are investing more and more testing outside the boundaries so not exactly how things must fall by product management or engineering but also how does it really run in an environment that you operate we run complex setups internally right taking openshift putting in OpenStack using software-defined storage underneath managing it with cloud forms managing it if inside we do that we want to see how that works right we are reshaping documentation console to kind of help you better instead of just documenting features and knobs as in how can how do you want to achieve things now part of this is the configuration that are the big part of the configuration is the voice of the customer to listen to what you say I've been here at Red Hat a few years and one of my passion has always been really hearing from customers how they do it I travel constantly in the world and meet with customers because I want to know what is really going on we use channels like support we use channels like getting from salespeople the interaction from customers we do surveys we do you know we interact with our people to really hear what you do what we also do what maybe not many know and it's also very unique in the industry we have a webpage called you asked reacted we show very transparently you told us this is an area for improvement and it's not just in support it's across the company right build us a better web store build us this we're very transparent about Hades improvements we want to do with you now if you want to be part of the process today go to the feedback zone on the next floor down and talk to my team I might be there as well hit me up we want to hear the feedback this is how we talk about configuration of the organization how we are configured let me go to let me go to another part which is innovation innovation every day and that in my opinion the enable section right we gotta constantly innovate ourselves how do we work with you how do we actually provide better value how do we provide faster responses in support this is what we would I say is is our you know commitment to innovation which is the enabling that Jim talked about and I give you a few examples which I'm really happy and it kind of shows the open source culture at Red Hat our commitment is for innovation I'll give you good example right if you have a few thousand engineers and you empower them you kind of set the business framework as hey this is an area we got to do something you get a lot of good IDs you get a lot of IDs and you got a shape an inter an area that hey this is really something that brings now a few years ago we kind of said or I say is like based on a lot of feedback is we got to get more and more proactive if you customers and so I shaped my team and and I shaped it around how can we be more proactive it started very simple as in like from kbase articles or knowledgebase articles in getting started guys then we started a a tool that we put out called labs you've probably seen them if you're on the technical side really taking small applications out for you to kind of validate is this configured correctly stat configure there was the start then out of that the ideas came and they took different turns and one of the turns that we came out was right at insights that we launched a few years ago and did you see the demo yesterday that in Paul's keynote that they showed how something was broken with one the data centers how it was applied to fix and how has changed this is how innovation really came from the ground up from the support side and turned into something really a being a cornerstone of our strategy and we're keeping it married from the day to day work right you don't want to separate this you want to actually keep that the data that's coming from the support goes in that because that's the power that we saw yesterday in the demo now innovation doesn't stop when you set the challenge so we did the labs we did the insights we just launched a solution engine called solution engine another thing that came out of that challenge is in how do we break complex issues down that it's easier for you to find a solution quicker it's one example but we're also experimenting with AI so insights uses AI as you probably heard yesterday we also use it internally to actually drive faster resolution we did in one case with a a our I bought basically that we get to 25% faster resolution on challenges that you have the beauty for you obviously it's well this is much faster 10% of all our support cases today are supported and assisted by an AI now I'll give you another example of just trying to tell you the innovation that comes out if you configure and enable the team correctly kbase articles are knowledgebase articles we q8 thousands and thousands every year and then I get feedback as and while they're good but they're in English as you can tell my English is perfect so it's not no issue for that but for many of you is maybe like even here even I read it in Japanese so we actually did machine translation because it's too many that we can do manually the using machine translation I can tell it's a funny example two weeks ago I tried it I tried something from English to German I looked at it the German looked really bad I went back but the English was bad so it really translates one to one actually what it does but it's really cool this is innovation that you can apply and the team actually worked on this and really proud on that now the real innovation there is not these tools the real innovation is that you can actually shape it in a way that the innovation comes that you empower the people that's the configure and enable and what I think is all it's important this don't reinvent the plumbing don't start from scratch use systems like containers on open shift to actually build the innovation in a smaller way without reinventing the plumbing you save a lot of issues on security a lot of issues on reinventing the wheel focus on that that's what we do as well if you want to hear more details again go in the second floor now let's talk about the engage that Jim mentioned before what I translate that engage is actually engaging you as a customer towards your success now what does commitment to success really mean and I want to reflect on that on a traditional IT company shows up with you talk the salesperson solution architect works with you consulting implements solution it comes over to support and trust me in a very traditional way the support guy has no clue what actually was sold early on it's what happens right and this is actually I think that red had better that we're not so silent we don't show our internal silos or internal organization that much today we engage in a way it doesn't matter from which team it comes we have a better flow than that you deserve how the sausage is made but we can never forget what was your business objective early on now how is Red Hat different in this and we are very strong in my opinion you might disagree but we are very strong in a virtual accounting right really putting you in the middle and actually having a solution architect work directly with support or consulting involved and driving that together you can also help us in actually really embracing that model if that's also other partners or system integrators integrate put yourself in the middle be around that's how we want to make sure that we don't lose sight of the original business problem trust me reducing the hierarchy or getting rid of hierarchy and bureaucracy goes a long way now this is how we configured this is how we engage and this is how we are committed to your success with that I'm going to introduce you to John Alessio that talks more about some of the innovation done with customers thank you [Music] good morning I'm John Alessio I'm the vice president of Global Services and I'm delighted to be with you here today I'd like to talk to you about a couple of things as it relates to what we've been doing since the last summit in the services organization at the core of everything we did it's very similar to what Marco talked to you about our number one priority is driving our customer success with red hat technology and as you see here on the screen we have a number of different offerings and capabilities all the way from training certification open innovation labs consulting really pairing those capabilities together with what you just heard from Marco in the support or cee organization really that's the journey you all go through from the beginning of discovering what your business challenge is all the way through designing those solutions and deploying them with red hat now the highlight like to highlight a few things of what we've been up to over the last year so if I start with the training and certification team they've been very busy over the last year really updating enhancing our curriculum if you haven't stopped by the booth there's a preview for new capability around our learning community which is a new way of learning and really driving that enable meant in the community because 70% of what you need to know you learned from your peers and so it's a very key part of our learning strategy and in fact we take customer satisfaction with our training and certification business very seriously we survey all of our students coming out of training 93% of our students tell us they're better prepared because of red hat training and certification after Weeds they've completed the course we've updated the courses and we've trained well over a hundred and fifty thousand people over the last two years so it's a very very key part of our strategy and that combined with innovation labs and the consulting operation really drive that overall journey now we've been equally busy in enhancing the system of enablement and support for our business partners another very very key initiative is building out the ecosystem we've enhanced our open platform which is online partner enablement network we've added new capability and in fact much of the training and enablement that we do for our internal consultants our deal is delivered through the open platform now what I'm really impressed with and thankful for our partners is how they are consuming and leveraging this material we train and enable for sales for pre-sales and for delivery and we're up over 70% year in year in our partners that are enabled on RedHat technology let's give our business partners a round of applause now one of our offerings Red Hat open innovation labs I'd like to talk a bit more about and take you through a case study open innovation labs was created two years ago it's really there to help you on your journey in adopting open source technology it's an immersive experience where your team will work side-by-side with Red Hatters to really propel your journey forward in adopting open source technology and in fact we've been very busy since the summit in Boston as you'll see coming up on the screen we've completed dozens of engagements leveraging our methods tools and processes for open innovation labs as you can see we've worked with large and small accounts in fact if you remember summit last year we had a European customer easier AG on stage which was a startup and we worked with them at the very beginning of their business to create capabilities in a very short four-week engagement but over the last year we've also worked with very large customers such as Optim and Delta Airlines here in North America as well as Motability operations in the European arena one of the accounts I want to spend a little bit more time on is Heritage Bank heritage Bank is a community owned bank in Toowoomba Australia their challenge was not just on creating new innovative technology but their challenge was also around cultural transformation how to get people to work together across the silos within their organization we worked with them at all levels of the organization to create a new capability the first engagement went so well that they asked us to come in into a second engagement so I'd like to do now is run a video with Peter lock the chief executive officer of Heritage Bank so he can take you through their experience Heritage Bank is one of the country's oldest financial institutions we have to be smarter we have to be more innovative we have to be more agile we had to change we had to find people to help us make that change the Red Hat lab is the only one that truly helps drive that change with a business problem the change within the team is very visible from the start to now we've gone from being separated to very single goal minded seeing people that I only ever seen before in their cubicles in the room made me smile programmers in their thinking I'm now understanding how the whole process fits together the productivity of IT will change and that is good for our business that's really the value that were looking for the Red Hat innovation labs for us were a really great experience I'm not interested in running an organization I'm interested in making a great organization to say I was pleasantly surprised by it is an understatement I was delighted I love the quote I was delighted makes my heart warm every time I see that video you know since we were at summit for those of you who are with us in Boston some of you went on our hardhat tours we've opened three physical facilities here at Red Hat where we can conduct red head open Innovation Lab engagements Singapore London and Boston were all opened within the last physical year and in fact our site in Boston is paired with our world-class executive briefing center as well so if you haven't been there please do check it out I'd like to now talk to you a bit about a very special engagement that we just recently completed we just recently completed an engagement with UNICEF the United Nations Children's Fund and the the purpose behind this engagement was really to help UNICEF create an open-source platform that marries big data with social good the idea is UNICEF needs to be better prepared to respond to emergency situations and as you can imagine emergency situations are by nature unpredictable you can't really plan for them they can happen anytime anywhere and so we worked with them on a project that we called school mapping and the idea was to provide more insights so that when emergency situations arise UNICEF could do a much better job in helping the children in the region and so we leveraged our Red Hat open innovation lab methods tools processes that you've heard about just like we did at Heritage Bank and the other accounts I mentioned but then we also leveraged Red Hat software technologies so we leveraged OpenShift container platform we leveraged ansible automation we helped the client with a more agile development approach so they could have releases much more frequently and continue to update this over time we created a continuous integration continuous deployment pipeline we worked on containers and container in the application etc with that we've been able to provide a platform that is going to allow for their growth to better respond to these emergency situations let's watch a short video on UNICEF mission of UNICEF innovation is to apply technology to the world's most pressing problems facing children data is changing the landscape of what we do at UNICEF this means that we can figure out what's happening now on the ground who it's happening to and actually respond to it in much more of a real-time manner than we used to be able to do we love working with open source communities because of their commitment that we should be doing good for the world we're actually with red hat building a sandbox where universities or other researchers or data scientists can connect and help us with our work if you want to use data for social good there's so many groups out there that really need your help and there's so many ways to get involved [Music] so let's give a very very warm red hat summit welcome to Erica kochi co-founder of unicef innovation well Erica first of all welcome to Red Hat summit thanks for having me here it's our pleasure and thank you for joining us so Erica I've just talked a bit about kind of what we've been up to and Red Hat services over the last year we talked a bit about our open innovation labs and we did this project the school mapping project together our two teams and I thought the audience might find it interesting from your point of view on why the approach we use in innovation labs was such a good fit for the school mapping project yeah it was a great fit for for two reasons the first is values everything that we do at UNICEF innovation we use open source technology and that's for a couple of reasons because we can take it from one place and very easily move it to other countries around the world we work in 190 countries so that's really important for us not to be able to scale things also because it makes sense we can get we can get more communities involved in this and look not just try to do everything by ourselves but look much open much more openly towards the open source communities out there to help us with our work we can't do it alone yeah and then the second thing is methodology you know the labs are really looking at taking this agile approach to prototyping things trying things failing trying again and that's really necessary when you're developing something new and trying to do something new like mapping every school in the world yeah very challenging work think about it 190 countries Wow and so the open source platform really works well and then the the rapid prototyping was really a good fit so I think the audience might find it interesting on how this application and this platform will help children in Latin America so in a lot of countries in Latin America and many countries throughout the world that UNICEF works in are coming out of either decades of conflict or are are subject to natural disasters and not great infrastructure so it's really important to a for us to know where schools are where communities are well where help is needed what's connected what's not and using a overlay of various sources of data from poverty mapping to satellite imagery to other sources we can really figure out what's happening where resources are where they aren't and so we can plan better to respond to emergencies and to and to really invest in areas that are needed that need that investment excellent excellent it's quite powerful what we were able to do in a relatively short eight or nine week engagement that our two teams did together now many of your colleagues in the audience are using open source today looking to expand their use of open source and I thought you might have some recommendations for them on how they kind of go through that journey and expanding their use of open source since your experience at that yeah for us it was it was very much based on what's this gonna cost we have limited resources and what's how is this gonna spread as quickly as possible mm-hmm and so we really asked ourselves those two questions you know about 10 years ago and what we realized is if we are going to be recommending technologies that governments are going to be using it really needs to be open source they need to have control over it yeah and they need to be working with communities not developing it themselves yeah excellent excellent so I got really inspired with what we were doing here in this project it's one of those you know every customer project is really interesting to me this one kind of pulls a little bit at your heartstrings on what the real impact could be here and so I know some of our colleagues here in the audience may want to get involved how can they get involved well there's many ways to get involved with the other UNICEF or other groups out there you can search for our work on github and there are tasks that you can do right now if and if you're looking for to do she's got work for you and if you want sort of a more a longer engagement or a bigger engagement you can check out our website UNICEF stories org and you can look at the areas you might be interested in and contact us we're always open to collaboration excellent well Erica thank you for being with us here today thank you for the great project we worked on together and have a great summer thank you for being give her a round of applause all right well I hope that's been helpful to you to give you a bit of an update on what we've been focused on in global services the message I'll leave with you is our top priority is customer success as you heard through the story from UNICEF from Heritage Bank and others we can help you innovate where you are today I hope you have a great summit and I'll call out Jim Whitehurst thank you John and thank you Erica that's really an inspiring story we have so many great examples of how individuals and organizations are stepping up to transform in the face of digital disruption I'd like to spend my last few minutes with one real-world example that brings a lot of this together and truly with life-saving impact how many times do you think you can solve a problem which is going to allow a clinician to now save the life I think the challenge all of his physicians are dealing with is data overload I probably look at over 100,000 images in a day and that's just gonna get worse what if it was possible for some computer program to look at these images with them and automatically flag images that might deserve better attention Chris on the surface seems pretty simple but underneath Chris has a lot going on in the past year I've seen Chris Foreman community and a space usually dominated by proprietary software I think Chris can change medicine as we know it today [Music] all right with that I'd like to invite on stage dr. Ellen grant from Boston Children's Hospital dr. grant welcome thank you for being here so dr. grant tell me who is Chris Chris does a lot of work for us and I think Chris is making me or has definitely the potential to make me a better doctor Chris helps us take data from our archives in the hospital and port it to wrap the fastback ends like the mass up and cloud to do rapid data processing and provide it back to me in any format on a desktop an iPad or an iPhone so it it basically brings high-end data analysis right to me at the bedside and that's been a barrier that I struggled with years ago to try to break down so that's where we started with Chris is to to break that barrier between research that occurred on a timeline of days to weeks to months to clinical practice which occurs in the timeline of seconds to minutes well one of things I found really fascinating about this story RedHat in case you can't tell we're really passionate about user driven innovation is this is an example of user driven innovation not directly at a technology company but in medicine excuse me can you tell us just a little bit about the genesis of Chris and how I got started yeah Chris got started when I was running a clinical division and I was very frustrated with not having the latest image analysis tools at my fingertips while I was on clinical practice and I would have to on the research so I could go over and you know do line code and do the data analysis but if I'm always over in clinical I kept forgetting how to do those things and I wanted to have all those innovations that my fingertips and not have to remember all the computer science because I'm a physician not like a better scientist so I wanted to build a platform that gave me easy access to that back-end without having to remember all the details and so that's what Chris does for us is brings allowed me to go into the PAC's grab a dataset send it to a computer and back in to do the analysis and bring it back to me without having to worry about where it was or how it got there that's all involved in the in the platform Chris and why not just go to a vendor and ask them to write a piece of software for you to do that yeah we thought about that and we do a lot of technical innovations and we always work with the experts so we wanted to work with if I'm going to be able to say an optical device I'm going to work with the optical engineers or an EM our system I'm going to work with em our engineers so we wanted to work with people who really knew or the plumbers so to speak of the software in industry so we ended up working with the massive point cloud for the platform and the distributed systems in Red Hat as the infrastructure that's starting to support Chris and that's been actually a really incredible journey for us because medical ready medical softwares not typically been a community process and that's something that working with dan from Red Hat we learned a lot about how to participate in an open community and I think our team has grown a lot as a result of that collaboration and I know you we've talked about in the past that getting this data locked into a proprietary system you may not be able to get out there's a real issue can you talk about the importance of open and how that's worked in the process yeah and I think for the medical community and I find this resonates with other physicians as well too is that it's medical data we want to continue to own and we feel very awkward about giving it to industry so we would rather have our data sitting in an open cloud like the mass open cloud where we can have a data consortium that oversees the data governance so that we're not giving our data way to somebody else but have a platform that we can still keep a control of our own data and I think it's going to be the future because we're running of a space in the hospital we generate so much data and it's just going to get worse as I was mentioning and all the systems run faster we get new devices so the amount of data that we have to filter through is just astronomically increasing so we need to have resources to store and compute on such large databases and so thinking about where this could go I mean this is a classic feels like an open-source project it started really really small with a originally modest set of goals and it's just kind of continue to grow and grow and grow it's a lot like if yes leanest torval Linux would be in 1995 you probably wouldn't think it would be where it is now so if you dream with me a little bit where do you think this could possibly go in the next five years ten years what I hope it'll do is allow us to break down the silos within the hospital because to do the best job at what we physicians do not only do we have to talk and collaborate together as individuals we have to take the data each each community develops and be able to bring it together so in other words I need to be able to bring in information from vital monitors from mr scans from optical devices from genetic tests electronic health record and be able to analyze on all that data combined so ideally this would be a platform that breaks down those information barriers in a hospital and also allows us to collaborate across multiple institutions because many disorders you only see a few in each hospital so we really have to work as teams in the medical community to combine our data together and also I'm hoping that and we even have discussions with people in the developing world because they have systems to generate or to got to create data or say for example an M R system they can't create data but they don't have the resources to analyze on it so this would be a portable for them to participate in this growing data analysis world without having to have the infrastructure there and be a portal into our back-end and we could provide the infrastructure to do the data analysis it really is truly amazing to see how it's just continued to grow and grow and expand it really is it's a phenomenal story thank you so much for being here appreciate it thank you [Applause] I really do love that story it's a great example of user driven innovation you know in a different industry than in technology and you know recognizing that a clinicians need for real-time information is very different than a researchers need you know in projects that can last weeks and months and so rather than trying to get an industry to pivot and change it's a great opportunity to use a user driven approach to directly meet those needs so we still have a long way to go we have two more days of the summit and as I said yesterday you know we're not here to give you all the answers we're here to convene the conversation so I hope you will have an opportunity today and tomorrow to meet some new people to share some ideas we're really really excited about what we can all do when we work together so I hope you found today valuable we still have a lot more happening on the main stage as well this afternoon please join us back for the general session it's a really amazing lineup you'll hear from the women and opensource Award winners you'll also hear more about our collab program which is really cool it's getting middle school girls interested in open sourcing coding and so you'll have an opportunity to see some people involved in that you'll also hear from the open source Story speakers and you'll including in that you will see a demo done by a technologist who happens to be 11 years old so really cool you don't want to miss that so I look forward to seeing you then this afternoon thank you [Applause]

from San Francisco it's the queue covering Red Hat summit 2018 brought to you by Red Hat okay welcome back everyone we're here live in San Francisco with the cube cube coverage of red hat summit 2018 and Moscone West in San Francisco I'm John for a co-host of the Q with my co-host this week analyst John Troyer who's the co-founder of tech reckoning advisory and Community Development firm our next guest is Mike Farris is the vice president of business development at Red Hat and its architecture business architecture sitting the table doing all the deals welcome back to the cube great to see you great to be here happy to come on so red hat has always played the long game in its business you got a very community focused us you got a lot of data in front of you you got a lot of customers but now the industry deals are forming IBM deal you guys announced here and Microsoft two notables really kind of are a telltale sign of what's to come what does it mean you had two big enterprise players getting behind openshift and Red Hat what's the name so you know it means coming of age of both containers and industry standards around this and so similar to what we did with Red Hat Enterprise Linux it what started at the edge of network computing and gradually through relationship with IBM Dell HP became the standard hardware enabler applications then came on board with partners like Oracle and others going through sa P and the like now we're seeing the same thing happen in the container space where now that kubernetes has been established as the orchestration standard in the industry Red Hat has made the bet adopted on that and now starting to see the fruition of people standardizing around that the major players the cloud providers from IBM Microsoft and and applications are sitting on top of that are starting to see this as the platform that they wanted to play on and just to kind of point out just because yeah you mentioned kubernetes you guys weren't johnny-come-lately on kubernetes either you guys made the investment years ago including tsakuba you saw containers so you're it wasn't like whoo it's like yesterday it developed nicely for you I mean our open shift was actually launched in 2011 and then in 2013 we made the switch to kubernetes and made the bet on it as being the orchestration standard and you know as you saw Red Hat do with KVM and the hypervisor space you know designing everything around a standard that we could support for in the case of Linux up to ten years you know we're doing the same type of thing and making the platform the focus not the individual technology so applications that are developed ISVs that are focused with those customers on deploying those and now with major partners like IBM and Microsoft saying this is the thing that is going to live and breathe in your enterprise as you take existing applications moving them into the cloud native and space as well as also when you start building new applications on it on a fresh platform you've got you have business architecture in your title I want to talk about business architecture because with cloud scale business logic is where the innovation is and then using technology to scale that but you also have it's not always the best technology sometimes that makes the fit it could be the right technology at the right time and Jim White has mentioned that earlier in his interview today business architecture is about the win-win scenarios and open source as well as the commercialization piece can you comment on the preferred architecture of folks who want to go to the cloud and take advantage of the of the transformation happening how should they architect their business how should they think holistically around putting the pieces together whether it's vendor relationships rolling out and hiring new developers and moving to a cloud native cloud scale while preserving their existing investments so just like when we started with Linux and Red Hat Enterprise Linux in 2002 the focus has been on making sure that customers have choice as they do this and and you know it's the platform that matters and making sure that you have the scalable secure environment that you can run across these and so taking that choice theme on a standardized platform and about starting to be able to say regardless of what application you have where you need to be run or what services you need to plug in you need to make sure those are available everywhere so when when we talk to architects and business architects that are looking at pricing models and mechanisms these two things are now forefront in their design architectures when they start sitting down and so you know our focus has been how do we enable this common platform starting with Red Hat Enterprise Linux and open shift across every major cloud provider in the world and on-premise as those models start to change and so one of the announcements that we made was we're gonna be supporting open shift on Azure stack you know this opens up choice for those customers be able to say regardless from on-premise on a Red Hat OpenStack environment or a Azure stack environment or off-premise at major providers like IBM cloud and Microsoft Azure now being able to say that I've got the support across these architectures and the multiple business models that I want to be able to purchase that allow me to enter into this space like I want to drill down in that at the Microsoft announcement okay it's cuz it's multifaceted right it's not just like you can run you could run OpenShift on Azure stack on pram if you wanted to right it's it's it's it's a managed service on Asscher itself it's also integrated into some of their offerings like the now sequel server will be a Red Hat certified container as well as being a container over on their side and they're building it into their uh their dev programs and dev tools right but you'll get you get you get Red Hat credits as well if you're if you're sitting there in with the Microsoft toolset so can you talk a little bit about you know some of those points of contact maybe expand on the sure absolutely and so I think kind of the core point to recognize is you know for many years now we've been talking about containers as a packaging right well it's actually what's in the container that matters and and so from the perspective of that you know you know the position is I mean containers are Linux and and Linux is Red Hat Enterprise Linux and so when we start talking about this the foundation of this really starts from that angle and so with Microsoft we actually announced last fall that we're gonna do open shift dedicated which is the Red Hat managed service on on Amazon and Google we announced we're going to be taking that to Microsoft Azure as well but in the course of those discussions and sitting down with customers talking to the Microsoft teams you know became readily apparent that if we partnered on this and did something much more aggressive to build a higher value solution for the customer we could actually deliver something that that customer saw is not just a unified approach but actually a Microsoft offering and so what we announced yesterday and what Microsoft jointly announced with us was that that we're announcing the release and and the upcoming release of open shift on Azure which is a jointly managed and operated and supported open shift service it's actually the industry's first jointly managed service on a public cloud and so we look at those customers now can go to Microsoft get a first party offering from them be able to deploy their applications have Microsoft run the infrastructure Red Hat run the open chef platform and have that service role available so they can focus on the applications and not the infrastructure who gets the support on that is the Microsoft leading on the front you guys splitting the duties there yes that working so on the support side in 2015 we announced something called integrated hybrid support with Microsoft we actually had Red Hat associates on site in Redmond working side-by-side with Microsoft support personnel um this extends that but what we're also doing is with the open shift on Azure offering it's actually to be a Microsoft first party product they're gonna be selling in the market we will be selling in the market and so customers can call Microsoft is their first line but if they happen to call Red Hat we've got this back-end infrastructure we know how to escalate we've got joint ticketing systems we know actually how to work on this together so you know it is a combination call it a hybrid support ending the previous model you vets work absolutely not like a branding brand new thing yeah but customers who are you know large-scale as your users today will still call Microsoft and they'll be able to get to the right people through their Microsoft reps so I think one of the impacts what I see I'm gonna get your reaction this is that obviously that multi-cloud has been a big discussion and it's a future stay but that's what everyone wants choice right so they're doing a lot of work on premise and clarifying their architecture this has been a big part of today's world this seems to be a multi cloud opportunity for your customers is that kind of where you see the vein value yeah so you know when we look at the platform we want the platform to be consistent whether it's Red Hat Enterprise Linux and now open chef and have that available in a consistent way in a consistent price point and a consistent value representation to the customers regardless of where they want to go and so you know we've got customers that that will have a primary cloud and on-premise or a primary cloud and a backup and it on-premise and it's very important for their applications for the development life cycles and for their support mechanisms so they have one place to go one place to work with and focus on a singular platform that's why you know we hear us talk about this we're doing the exact same thing we did with Red Enterprise Linux we're not varying the technology we're integrating it deeper and in this case Microsoft very deeply in their infrastructure but providing the same value to customer above the line and then backing it with this jointly operated and managed service from Microsoft and containers has been a great tailwind for your business big time how has OpenShift success change your job in the past year or at all it's made it a lot harder because you know I think the evolution of containers evolution early on of the orchestration space you know people have been asking about alright are you following the community right how close to the Kerman kubernetes latest release are you you know that was a dialogue that we're now evolving in the industry to being how can I get the services that I need how do I get the support that I need and and how do I make sure it actually is secure and that you know when the next major issue comes out that that you know all my containers are up to date and so the complexity is increased from defective of we're no longer talking about certification of an ISV on Red Hat Enterprise Linux which happens to be certified on specific hardware now we're talking about living and breathing container life cycles from ISVs from end customers sitting on a platform that runs across all the public clouds and when the next security issue happens how do we make sure that the is v's containers of the end customers applications that are containers all in Red Hat Enterprise Linux containers that they actually are secure the the moment that that we release the patch across these and that's really the value in getting that across in the industry and be able to say that all of that works in concert with the new business models consumption and other things you know those are the complexities we're having to deal with now definitely a sign of 2018 right in some ways the world has come to red hat right you read has kept it it's open culture and open ethos certainly this is a signal like the new of the new Microsoft right playing with Red Hat Red Hat now also gets to support Windows containers I mean IBM although has been a supporter of open source and Linux and Red Hat for years so it is a I love the new world that a lot of our old assumptions are thrown away right and and and it's about delivering value to customers not necessarily what tribe you're in yeah and you see IBM I mean that has had a long play in the container space means starting with the bluemix environments and kind of moving into the latest thing with with IBM cloud private you know from from our perspective it's this unifying nature that says now that we can actually calm down and talk about what is enterprise need and how long it is and how do we build relationships in with IBM and with Microsoft they can really provide that so the customers can get the services they and the complexity you're talking about on your job is going to be an ecosystem opportunity for you you know making making more people come with it to the table to Red Hat so think you have a great opportunity in the ecosystem as well a final question for you is if someone's watching this video they say hey I want to do a deal with Mike I mean how are you doing deals - how do you evaluate is that a community-driven is it you know organic top down or is there a certain way that people can engage with you and read ad to do a business deal or is it ecosystem trip just take a minute to explain so the first thing we always look at is what are customers asking for and how can this help the community right those are the two things that drive the discussions at the CEO level with these partners that we're dealing with and even emerging markets I mean I sit down with small managed service providers and they want to offer OpenShift services in the same way that they've been doing Red Hat Enterprise Linux services for years and it's it's about the customers that are coming to them saying I see this as the platform I want to modernize my existing applications or start an it cloud native development using these how can we sit down and have the conversation so frankly from our perspective customers are key and so is the community and as long as we can have those two balances with relationships it's great and you mentioned the standardization when you have that kind of momentum and the industry and the communities it's going to enable a lot of opportunities and certainly you guys are doing great job so you've got a lot of we you're a busy guy yep absolutely Mike thanks for grating on the cue sharing your insights business development action going on a red hat big notable deals IBM and Microsoft just one of many that continues to be open doing the all out in the open it's the cube we're out in the open here in the middle of Moscone West I'm John four at John Torrio stay with us for more day two coverage of three days of live Red Hat summit covers be right back stay with us

[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]

>> Narrator: Live from Las Vegas. It's theCUBE. Covering VMWorld 2017. Brought to you by vmware and it's ecosystem partners. (bright pop music) >> Welcome back to theCUBE on day three of our continuing coverage of VMWorld 2017. I'm Lisa Martin. My co-host for this segment is John Troyer and we're excited to be joined by Rob Young, who is a CUBE alumni and the manager of product and strategy at Red Hat. Welcome back to theCUBE, Rob. >> Thanks, Lisa. It's great to be here. >> So, Red Hat and VMware. You've got a lot of customers in common. I imagine you've been to many many VMworlds. What are you hearing from some of the folks that you're talking to during the show this week? >> So, a lot of the interest that we're seeing is how Red Hat can help customers, VMware or otherwise, continue to maintain mode one applications, legacy applications, while planning for mode two, more cloud-based deployments. We're seeing a large interest in open-source technologies and how that model could work for them to lower cost, to innovate more quickly, deliver things in a more agile way, so there's a mixture of messages that we're getting, but we're receiving them loud and clear. >> Excellent. You guys have a big investment in OpenStack. >> Yes we do and even back in the early days when OpenStack was struggling as a technology, we recognized that it was an enabler for customers, partners, large enterprises that wanted to create and maintain their own private clouds or even to have a hybrid cloud environment to where they maintained and managed, controlled some aspect of it, while having some of the workloads on a public cloud environment as well so Red Hat has invested heavily in OpenStack to this point. We're now in our 11th version of Red Hat OpenStack platform and we continue to lead that market as far as OpenStack development, innovation, and contributions. >> Rob, we were with theCUBE at the last OpenStack summit in Boston. Big Red Hat presence there, obviously. I was very impressed at the maturity of the OpenStack market and community. I mean, we're past the hype cycle now, right? We're down to real people, real uses, real people using it. A lot of very, people with a strong business critical investment in OpenStack and many different use cases. Can you kind of give us a picture of the state of the OpenStack market and userbase now that we are past that hype cycle? >> So, I think what we're witnessing now in the market is that there's a thirst for OpenStack. One, because it's a very efficient architecture. It's very extensible. There's a tremendous ecosystem around the Red Hat distribution of OpenStack and what we're seeing from enterprises, specifically the TelCo industry, is that they see OpenStack as a way to lower their cost, raise their margins in a very competitive environment, so anywhere you see an industry or a vertical where there's very heavy competition for customers and eyeballs, that type of thing. OpenStack is going to play a role and if it's not already doing so, it's going to be there at some point because of the simplification of what was once complex but also in the cost savings, it could be realized by managing your own cloud within a hybrid cloud environment. >> You mention TelCo and specifically OpenStack kind of value for companies that need to compete for customers. Besides TelCo, what other industries are really kind of primed for embracing OpenStack technologies? >> So, we're seeing it across many industries, finance and banking, healthcare, public sector, anywhere where there's an emphasis on the move to open source and to open compute environment, open APIs. We're seeing a tremendous growth in traction and because Red Hat has been the leader in Linux, many of these same customers who trust us for Red Hat Enterprise Linux, are now looking to us for the very same reason on OpenStack platform, because much like we have done with Enterprise Linux, we have adopted an upstream community-driven project. We have made it safe to use within an environment in an enterprise way, in a supported way as well, the subscription. So, many industries, many verticals. We expect to see more, but primary-use cases, NFE and TelCo, healthcare, banking, public sector are among the top dogs out there. >> Is there a customer story that kind of stands out in your mind as really a hallmark that showcases the success of working with Red Hat and OpenStack? >> Well there are many customers, there are many partners that we have out there that we work with, but I would say that if you look at some of the, four of out of five of the large TelCos - Orange, Ericsson, Nokia, others that we've recently done business with would be really good examples of not only customer use cases but how they're using OpenStack to enable their customers to have better experience with their cell networks, with their billing, with their availability, that type of thing. And we had two press announcements that came out in May, one is an educational institution of a consortium, a very high profile Northeast learning institutions, public institutions, that are now standardized on OpenStack and that are contributing, and we've also got Oakridge, forgive me, it escapes me, but there's a case study out there on the Red Hat website that was posted on May the eighth that depicts how they're using our product and how others can do the same. >> Rob, switching over a little bit to talking a little bit more about the tech and how the levers get pulled, right, we're talking about cloud, right, another term, "past the hype cycle," right? It's a reality. And when you're talking about cloud, you're talking about scale. >> Rob: Yes. >> We mentioned Linux, OpenStack, and Red Hat kind of built on a foundation of Linux, it's super solid, super huge community, super rich, super long history, but can you talk about scale up, scale out, data center, public cloud, private, how are you seeing enterprises of various sizes address the scale problem and using technologies like the Red Hat and CloudStack to address that? >> So there's a couple things, there's many aspects to that question but what we have seen from OpenStack is when we first got involved with the project, it was very much bounded by the number of servers that you needed to deploy an OpenStack infrastructure on. What Red Hat has done, or what we've done as a company is we've looked at the components and we have unshackled them from each other, so that you can scale individual storage, individual network, individual high availability, on the number of servers that best fit your needs. So if you want to have a very large footprint with you know, many nodes of storage, you can do that. If you want to scale that just when peak season hits, you can do that as well. But we have led the community efforts to de-shackle the dependencies between components so from that aspect we have scaled the technology, now scaling operational capabilities and skillsets as well. We've also led the effort to create open APIs for management tools. We've created communities around the different components of OpenStack and other outsourced technologies - >> Automation a big part of that as well, right? >> Automation as well, so if you look at Ansible, as an example, Red Hat has a major stake in Ansible, and it is predominantly the management scripting language of choice, or the management platform of choice, so we have baked that into our products, we have made it very simple for customers to not only deploy things like OpenStack but OpenShift, CloudForms, other management capabilities that we have, but we've also added APIs to these products so that even if you choose not to use a Red Hat solution, you can easily plug in a third-party solution or a home-grown solution into our framework or our stack so that you can use our toolset, single pane of glass, to manage it all. >> So with that, can you tell us a little bit about the partner ecosystem that Red Hat has, and what you've done sounds like to expand that to make your customers successful in OpenStack deployments. >> Absolutely, so as you're aware, Red Hat Enterprise Linux, we certified most of the hardware, or all of the hardware, OEMs on Red Hat Enterprise Linux. We have a tremendous ecosystem around Enterprise Linux. For OpenStack, this is probably one of the most exciting aspects of Red Hat right now. If you look at the ecosystem and the partners that are just around OpenStack on its own, we've got an entire catalog of hundreds of partners, some at a deeper level than others, integration-wise, business-wise, whatever, but the ecosystem is growing and it's not because of Red Hat's efforts. We have customers and partners that are coming to us saying, we need a storage solution, we're using, you know, NetAMP as an example. You need to figure out a way to integrate with these guys, and certify it, make sure that it's something that we've already invested in, it's going to work with your product as well as it works with our legacy stuff. So the ecosystem around OpenStack is growing, we're also looking at growing the ecosystem around OpenShift, around Red Hat virtualization as well, so I think you'll see a tremendous amount of overlap in those ecosystem as well, which is a great thing for us. The synergies are there, and I just think it's only going to help us multiply our efforts in the market. >> Go ahead John. >> Oh Rob, talking again, partnerships, I've always been intrigued at the role of open source upstream, the open source community, and the role of the people that take that open source and then package it for customers and do the training, enablement. So can you talk maybe a little bit about some of the open source partners and maybe how the role of Red Hat in translating all that upstream code into a product that is integrated and has training, and is available for consumption from the IT side. >> Sure. So at Red Hat, we partner not only with open source community members and providers but also with proprietaries. So I just want to make sure that everybody understands we're not exclusive to who we partner with. Upstream, we look for partners that have the open source spirit and mind, so everything that they're doing that they're asking us to either consider as a component within our solution or to integrate with, we're going to make sure that they're to the letter of the law, contributing their code back, and there's no hooks or strings attached. Really the value comes in, are they providing value to their customers with the contribution and also to our combined customers, and what we're seeing in our partnerships is that many of our partners, even proprietary partners like Microsoft as an example, are looking at open source in a different way. They're providing open source options for their customers and subscription-based, consumption-based models as well, so we hope that we're having a positive impact in that way, because if you look at our industry it's really headed toward the open source, open API, open model and the proprietary model still has the place and time I believe but I think it's going to diminish over time and open source is going to be just the way people do business together. >> One of the things that you were talking about kind of reminded me of one of the things Michael Dell said yesterday during the keynote with Pat Gelsinger and that was about innovation and that you really got to, companies to be successful need to be innovating with their customers and it sounds like that's definitely one of the core elements of what you're doing with customers. You said customers and partners are bringing us together to really drive that innovation. >> Yeah, I couldn't agree more. It's an honor to be mentioned in the same breath as Michael Dell, by the way. But what we see is because of the open source model, you can release early and often, and you can fail early, and what that does is encourage innovation. So it's not only corporations like Red Hat that are contributing to upstream projects, OpenStack as an example or Linux as an example, or KVM as an example. There's also college students, there's people out there who work for Bank of America. Across the fruited plains all over the world. And the one thing that unites us is this ability to recognize the value of our contributions to an open source community, and we think that that really helps with agile development, agile delivery, and if you look at our project deliveries for OpenStack as an example, OpenStack releases a major version of its product every six months. And because of contributions that we get from our community, we're able to release our - and testing, it's not just, contributions come in many forms. Testing is a huge part of that. Because of the testing we get from a worldwide community, we're able to release shortly after a major version of upstream OpenStack because that innovation. In a pure waterfall model, it's not even possible. In an open source model, it's just the way of life . >> So as we're kind of wrapping up VMworld day three, what are some of the key takeaways for you personally from the event and that Red Hat has observed in the last couple of days here in Las Vegas. >> So there's a couple of observations that have kind of been burned into my brain. One is we believe at Red Hat, our opinion is that virtualization as a model will remain core, not only to legacy applications, mode one, but also to mode two, and the trend that we see in the model, that we see is that for mode two, virtualization is going to be a commodity feature. People are going to expect it to be baked into the operating system or into the infrastructure that they're running the operating system or their applications on. So we see that trend and we've suspected it, but coming to VMworld this week helped confirm that. And I say that because of the folks I've talked to, after sessions, at dinner, in the partner pavilion. I really see that as a trend. The other thing I see is that there's a tremendous thirst within the VMware customer base to learn more about open source and learn more about how they can, you know, leverage some of this not only to lower their total cost of ownership and not to replace VMware, but how they can complement what they've already invested in with faster, more agile-based mode two development. And that's where we see the market from a Red Hat standpoint. >> Excellent. Well there's a great TEI study that you guys did recently, Total Economic Impact, on virtualization that folks can find on the website. And Rob, we thank you for sticking around and sharing some of your insights and innovations that Red Hat is pioneering and we look forward to having you back on the show. >> Great to be here. Thanks. >> Absolutely, and for my co-host John Troyer, I'm Lisa Martin and you're watching theCUBE's continuing coverage, day three, of VMworld 2017. Stick around, we'll be right back. (bright pop music)

>> Announcer: From Boston Massachusetts it's theCUBE, covering Red Hat Summit 2017. Brought to you by Red Hat. (techno music theme) >> Welcome back to theCUBE's coverage of the Red Hat Summit. I'm Rebecca Knight, your host, with my co-host here, Stu Miniman. We are joined by Mike Ferris. He is Vice President Business Architecture at Red Hat. Thanks so much for joining us. >> You're welcome, glad to be here. >> I want to start out by talking about the Amazon announcement. We already had Jim Whitehurst on the program. He told us about the auspicious business meeting he had in Seattle, big breakfast meeting. >> Yep. >> You're a big player in how this is going to actually work in practice. Can you tell us a little bit more about it? >> Sure, so it's really exciting for us in that what we have done with Amazon is jointly delivered the power of the public cloud to hybrid and private clouds through OpenShift. A lot of what we've been talking with customers over the past several decades now, has actually been about, you know, how do you take enterprise software and make open source applicable to it? How do you really evolve your infrastructure and technologies in that context? With the emergence of the public cloud, specifically Amazon, starting in 2007, 2008, customers started taking the same technologies and using them on Amazon and we certainly grew into that model and really helped grow that evolution of customers to move to the public clouds. But what's been happening in the past couple of years, is customers have been asking, now that they're looking at things like Red Hat OpenStack, starting to look at alternative deployments and even emerging into the application platforms and container platforms, how can they take a lot of the power that specifically Amazon has been developing in the public cloud side and deliver it to those applications regardless of where they run? And so, between Jim's meeting, certainly with Andy Jassy, and then sitting down and talking about what types of evolution could we help grow, for application developers in the on-premise and hybrid environments, it really came out that the full suite of application services that Amazon has produced really provided a good stronghold for us to be able to say to the customers if we could provide those to you on-premise and give you the ability to scale and use innovative solutions from AWS, without having to worry about different interfaces, different relationships, and actually come to Red Hat and say OpenShift is the center for your application and container platforms. We thought it was an excellent example of saying we could take what Amazon's doing, deliver it inside OpenShift to those customers. >> This is a big, a really big revolutionary change. Can you just project out for us five years from now where will we be in terms of OpenShift and in terms of this partnership. >> A big piece of this is actually going back to the early promises of Java, and other polyglot platforms saying if you write an application it can run anywhere. Well now what's happening is that's starting to come true, in that with the emergence of hybrid and this concept of on and off premise. You did have the concept that you could take an application and move it. You could move it from one place to the other. Now, in having applications written to container platforms like OpenShift and having used services that may be local or may be remote, in a very consistent way, we are able to take those applications and use them everywhere. So we do see this in the next several years enabling customers and applications to be much more mobile. Leveraging resources where they're best run. It'd be able to take the platforms and have customers really grow the innovative solutions on-premise in the same way they've been able to do in the public clouds like AWS over the past several years. >> Mike, can you walk us through what the rollout of this is going to look like? When can customers get their hands on it? When is the training for all of your partners going to come? >> We're early in the phases now, with AWS, and you saw a demo today. We had an excellent demo with Amazon and Red Hat on stage showing the integration. You'll see early versions of it in the next couple of months and then customers will certainly be able to include that in their applications as we're deploying OpenShift. Likewise, in the fall or a little bit later than that. So, over the coming year you'll see this happen in the market. >> Andy Jossy in the video talked that there's, you know, thousands of Amazon services. How do we understand what's, you know, it's great to say great I can get Amazon in a small deployment but the devil's in the details and how's the networking work between my on-premises stuff and the public cloud. Can you help us unpack? And how do we look at this? >> The beauty of this is, you as a developer, maybe you've become familiar with AWS services, RDS, Route 53 et cetera. It's the same services delivered through OpenShift. So your experience and understanding, everything you've learned from Amazon, maybe doing some tests within the public cloud, or deploying other applications in the public cloud is going to look exactly the same on-premise and in the hybrid environment with OpenShift itself. So all the trainings and all the learnings that you've gone through will apply directly as well. As you start to deploy and build and deploy applications, the beauty of this, as I said, is you're going to be able to take them and use them on-premise or in the public cloud without any changes. And again, through that interface, where OpenShift will provide you the configuration, the ability to deploy and manage, for example, an RDS database, and have that be visible within your application in a very consistent way, even if you take it from one instance of OpenShift and move it to another. You can take the application and move it up into Amazon itself on OpenShift and it will run exactly the same. >> How should customers think about how they're going to be paying for this kind of thing? I think they understand that one of the things that Red Hat has done a great job is I want to start doing containers. I want to start doing OpenShift. You guys have streamlined a lot of those, you know, how the financial interactions work. You guys are, you know, subscription model as to how you do things. How do I look at this, whether I'm doing it in the public cloud, I'm doing it on-premises. How am I going to be able to compare those two. >> So, we're not announcing anything different in that model today. One of my core responsibilities for Red Hat is business architecture which really means what are the models that customers are adopting in the market? How can Red Hat respond to those and start to grow what's happening? What we've started with, with AWS here, is really a technical integration, and a services integration. Such that we will be able to help customers when they come to us with a question on their OpenShift deployment. Let's say they are using RDS, and they want to understand am I deploying it properly, is it being integrated? We will have knowledge about that, but they're still going to go directly to Amazon for their financial transaction. So buy the services from who you're actually acquiring them from, but use them together wherever you deploy them. That's really the crux of this. As we evolve, certainly we're open to looking at alternative business models. If customers start to say, well I want to acquire this everything from Red Hat or everything from Amazon it certainly would be an option but we're not yet there. >> In thinking about business models this has been a recurring question, because Red Hat's success appears to be a one off in the open source world. Why is the open source business model so challenging? As you said selling free is hard, but you're a 17 year veteran of this company. What's your perspective? >> So, multiple areas, right. One of the core ones that I always speak to customers and partners alike about is that we are very very well, internally we understand very well the difference between a product and a project. So when we go into a technology we always make sure that it's open source, whether we're acquiring a company, whether starting a project, or joining, like we did with OpenStack, a significant existing project. But that is a technical investment, it's something that we want to make sure that we have significant, not just ownership of in the community, but individuals inside the company that are involved, invested and maintainers of projects. But then, likewise, when we look at how we're going to service customers we think about long term life cycles, we think about how can we maintain our support models, our financial models, everything across that and that's what really helps turn it into a product for them, and for us specifically, and so this differentiation in talking about technology versus the business is very important to us. It does mean that we have to make some very explicit promises to customers and stick to those. Things like saying to the market, we will support our products for 10 year life cycles. Means that we have to be very rigorous with the testing, very rigorous on the updates, making sure that over that 10 years we can service the customers the way that we started to, but all from that same open source project. So it's really the purity of giving back to the community, staying involved in the community, but then also focused on the customer needs and the value that our enterprise businesses want to pay us for. >> Mike, in the keynote one of the statistics that Red Hat shared was that 59% of your customers have a multi-cloud environment. Can you share with us how your team, how you're helping customers think about that architecture, be a little bit more strategic. Our viewpoint is most customers, you know, are a lot multi-cloud because they've been very tactical, and very much done in application by application where things fit. Haven't necessarily, like they have forever with IT, had a grand strategy that pulls it all together. It's kind of like, oh I need this and therefore that did, or pricing was good. How are you helping customers with both advice and with architecture. >> It's not something that we use a lot now, but in the early days of Red Hat the word 'choice' was really a core part of vocabulary. So giving back to the community let our customers be able to say, alright, I always know that what Red Hat's doing is in the open source community and I can always do it on my own if I choose. What choice means now is being able to say back to them, well, regardless of where you're running these technologies and, for ones that you are paying Red Hat for, that you're buying subscriptions from us, we will make sure that they perform efficiently, that they have the appropriate security mechanisms in place and they work the same way across all the platforms that you deploy, and that includes things such as pricing models and business models, because we certainly don't want to introduce arbitrage, make it confusing for customers to acquire >> Rebecca: Choice overload. >> Yeah, and so in the end what we're really trying to do is make sure that when a customer goes out and deploys a technology from us they can use it wherever they want, that they can get support for what they want, and that their paying a fair price across all of those. And so when we talk about multi-cloud we're very careful about making sure that that technology works everywhere. So whether it's this integration with AWS on the services with OpenShift, or whether it's just Red Hat Enterprise Linux performing very efficiently and securely across every public cloud in the world, we're making sure that we have those hooks in place everywhere. >> When we're thinking about the cloud industry and the future and where it's going I know that you are a technology evangelist, you, yourself have 50 patents. What is, what do you see the future holding? What will we be talking about at the Red Hat Summit 2020 and 2025? >> One of my big motivations, and the company's motivations, is to continue to make technology easily consumable. You see this has already happened in the public clouds, with Amazon being able to give people credit card transactions, and start up a server literally in minutes where it used to take weeks or months for procurement. As people do this, as microservices start to emerge more, as security becomes a larger context for what they have to do in their environment to make sure that they're operating securely, our objective is to make sure that regardless of the platform we're producing, regardless of the underlying technology that we make it easy for them to be able to build and deploy and manage those environments everywhere. What that may turn into, and the hope certainly is that, you know, technology gets out of the way over time and customers, application developers can really focus on the innovation that ties back to their business, rather than which project are they using from the community or which proprietary product have they purchased. It really becomes about the businesses that they're in, rather than technology. >> You talked about security being number one in the minds of customers, also privacy. We also hear that US customers, just individuals, aren't as concerned about privacy and security as perhaps they should be. Do you see that following and just into the consumer group? Will the consumers take the lead of corporations? >> When we talk about our enterprise customers certainly security is a big piece of it, and if you look back when we started Red Hat Enterprise Linux a primary piece of that was making sure that we always had immediate response to security issues with our products in the market. That has continued as we've grown the portfolio to be the broad stack of solutions that we have today. What's happening now, and especially with this move toward containers, is all the value that we built into that security mechanism into Red Hat Enterprise Linux now starts to apply to the container environment. And I think we've said this a couple of times already, you know, containers are Linux and Linux is containers. You start to stretch that out some and that means that security is just as important, it's actually more important in an containerized application role than it was just in Linux. So this value of being able to say to a customer security's important, we've helped answer that question for Red Hat Enterprise Linux, and the other products that we've produced. Now we're able to answer that as you move into the microservices world, as you start to have applications you're developing, or other applications from ISDs that are containerized on Red Hat hosts and Red Hat containerized environments. Security's already part of that so it really becomes, you know, handed to the users for the end result. >> Mike, you've been with Red Hat for many years and we've heard culture at the core of what's doing, the question I have for you is we see just the rapid pace of change even more. How does a company like Red Hat keep up with this increasing pace. I think about what, how long it took Red Hat Enterprise Linux to get adoption and rollout and things like that versus, you know, OpenShift which was way more recent and is coming much faster and there's just that increased pace of change. What do you see that's changed, and what's the same at Red Hat for you? >> So, sameness really goes back to our commitments to community, commitments to value, and, you know, I've been here, again, 17 years and I will say that every individual in the company I trust. And that trust, the fact that the ethical nature of the way we operate, the executive leadership of the company, certainly helps me maintain that sameness across the, now approaching, decades that I've been in the company. How we keep up with the rapid pace of change, you know, that's always a challenge but everyone in the company continues to look forward to how do we help mature the value that Red Hat provides and how do we make sure we maintain our completeness and integration with the open source communities. So it's the community that's driving us, from a technology view, and the customers as well in that context but we want to make sure that we put back that and we continue to invest in the core DNA that really made Red Hat Linux, even before Red Hat Enterprise Linux successful when it started. >> Mike, thanks so much for joining us, we really appreciate it. >> Thank you. >> I'm Rebecca Knight, with Stu Miniman. We will return with more of theCube's coverage of the Red Hat Summit. (techno music theme)

>> Man: Live from Boston, Massachusetts, it's theCUBE! Covering Red Hat Summit 2017, brought to you by Red Hat. (energetic music) >> Bryan, good to see you again. >> Bryan: Thanks for having me. >> You're welcome. I said, "Good to see you again." We thought we had you on before, but maybe not. But anyway-- >> Bryan: I have lots of Rackers. >> We feel like Rackspace is one of ours, with theCUBE alone. Red Hat Summit, obviously a big show for the industry. Big show for Rackspace. But your focus is on OpenStack, you're the general manager of the OpenStack business. You guys started OpenStack, I mean, you and some others. But it was really the seed and the vision of Rackspace. So bring us up to date as to where you are now. >> Yeah, I see your point. It kind of goes back to 2010, where Rackspace and NASA essentially co-invented OpenStack and opened it up as a community project, and made it open source. Again, the intent was, how do you help leverage the innovation of a community to help build cloud infrastructure? At that time, it was really focused on public and private cloud. Rackspace over the years, certainly, our public cloud was built on OpenStack and we continue to do a lot of that focus in upstream innovation and contributing in, how do you make this platform scale very massively? Over the last several years, where we've seen great adoption of OpenStack specifically, though, is in private cloud solutions. We have built a practice over the last several years building, deploying, and operating private clouds for customers in our data centers, in their data centers, third party data centers. And that's where we've seen a lot of growth in that. >> Bryan, I wonder if you could help us unpack that a little bit. I know you and I are going to be back here in Boston down the road at the Hynes for OpenStack Summit next week. But when you hear the general discussion, OpenStack has changed a lot in the last few years. So there are people that throw stones and are like, "Oh, well, it's done, it's over." Sounds like you've got a good, robust business. Tell us where are people using it, how are they using it, what is it replacing, or helping them grow their business? >> OpenStack itself, if you think of this arc of an open source project in the rapid innovation, how quickly it's matured, over the last couple years OpenStack itself has really become a solid platform. Infrastructure as a service. In fact, I think I heard a comment as of the Barcelona summit where an analyst or media or somebody said, "OpenStack is now boring." Because a lot of the drama or rapid change has really come out of it, many of the core projects have very much matured. You do hear, "Is OpenStack dead? "Are people going straight to containers on bare metal? "Is this the end of the space?" In practice, we are seeing it is still, how am I consuming or building cloud-native apps? I'm consuming cloud services, and certainly in a private cloud context I'm looking for that power and agility that I see from a public cloud, but delivered in a private cloud form factor. We're still seeing huge adoption for OpenStack in that use case. >> Well, there's a lot of misconceptions about OpenStack over the years, and part of it is it was just sort of put out there and said, "Okay, let's see what happens." But I remember when it went public, John Furrier, other co-host of theCUBE, called it a Hail Mary against Amazon. >> Bryan: Yeah. >> Okay, well, in a way, people needed some kind of alternative. And it's really emerged as the only, correct me if I'm wrong, really the only open platform to build private clouds on. >> Bryan: Yeah. >> And when you say you hear, "Oh, is OpenStack it?", you hear that from a lot of the legacy enterprise companies who are sort of doing their own proprietary private cloud. To your point, it's become a platform with momentum. Further thoughts on that? >> Yeah, I think to your point that those that are really saying it's dead and they're doing their own proprietary cloud, that's really just virtualization at scale. They're not really consuming cloud services in the same framework that OpenStack delivers it. It is still a vibrant and growing platform. We're seeing it as the platform of choice for not just, how do I move virtualized workloads, but even for containers and other orchestrated solutions on top of that as well. It really is this underpinning technology that people are consuming for private and hybrid types of scenarios. >> Red Hat would argue, I wonder if you could weigh in on this, that in order for you to build a true hybrid cloud, we use the term true private cloud, we can extend that to true hybrid cloud, you've got to have a sort of modern infrastructure that's open on-prem. Or else you're going to be just force-fitting square pegs in round holes. >> I think there's a lot of validity to that. Especially when you think about the concept of portability or leveraging moving applications between different platforms. If I have a truly siloed infrastructure, I don't have that capability. Whereas if you look at leveraging these open platforms of OpenStack and the tooling that I could use on top of that, cloud forms and ether services, and certainly as I move into paths and containers, I now have much more portability on where I can deploy and operate these different technologies. >> Bryan, congratulations. You guys are an Innovation Award winner. Can you talk a little bit about the solutions and what you guys are working closely with Red Hat to give to your customers? >> It's really exciting. We were awarded one of their Innovator of the Year awards for cloud infrastructure. The way this came about is, Rackspace and Red Hat have a mutual customer that really came to us where they were looking for a private cloud delivered as a service. They're looking for the operational expertise that Rackspace brings in operating these technologies at scale, but were looking for a fully certified Red Hat stack. At that time, we didn't have an offering around the Red Hat OpenStack platform. We obviously have a long-standing relationship with Red Hat, and support a number of Red Hat technologies across our businesses, but in the OpenStack space we had not productized or brought to market a main service around the Red Hat OSP Platform. And so we partnered very closely with them to bring this solution to market. But it's not as simple as just saying, "Voilà, now we have our Red Hat offering." Our focus is really to bring the operators' perspective to it. So we spent eighteen months in total, if you think about from when we really kicked off this effort with them, deploying and operating and scaling and testing, and going through all the stages of patching, and upgrading and running different workload profiles and really, scalability testing. And feeding back a lot of innovation into the Red Hat team. It led to a number of enhancements that have come in later releases of RHEL OSP, which allowed us to really get to a platform that we could stand behind, provide as a main service and deliver a four nines availability SLA around it. This is the offering that we brought together. We're being recognized for some of those innovations that we fed back into it. We consume their Distributed Continuous Integration environment, so through the DCI platform we execute over 1500 tests on a daily basis, which allows us to deliver the latest release of RHEL OSP to our customers within two weeks of a given major release. We made a number of networking plainly-needed enhancements in how can we break out the bouncing from the control plane? Things that allow us to deploy and operate these solutions at a much larger scale. >> Maybe if you could speak to one of the challenges we've heard for OpenStack for years is, it's kind of complicated, and how do we do this? And I have to think, the Red Hat service and support model partnered with the fanatical support from Rackspace should be able to address some of those concerns for customers. >> That's honestly where I think we've found the most success with customers is, OpenStack itself is a very powerful tool. But it is complex. It's not something that you're just going to download and run on a VM in your laptop to gain experience with it. >> Stu: Built by rocket scientists! What do you expect? >> Literally, quite literally! So the complexity does continue to be a barrier to adoption for many enterprises. That's where our focus of being the operators and delivering it as a service has been so key for many customers. And then, given that fully compliant or certified stack from Red Hat, the software assurance that comes with that has been a great fit to a lot of customers who really grow. >> You mentioned platform as a service. Stu, earlier, you made the comment of The Platform Formerly Known As PaaS. There's a lot of discussion about PaaS, well, it's really not here anymore. Can you guys, at least start with Bryan, maybe Stu, you can chime in, what's happening with PaaS? Is it getting subsumed? I often say infrastructure's a service plus, or a SaaS minus. What's happening with PaaS? 'Cause when you talk to companies like Oracle, it's like, "Oh, our PaaS business is rockin'!" So what's really happening out there? >> I'm sure you have thoughts on this, too. I believe that PaaS is still a very strong plane. That's where many organizations, now they're embracing cloud and cloud-native development, are looking to move up the step and leverage more fabric-like services. Things that a PaaS can provide them, that integrated development environment. How do I make it easy to consume different data services? Removing the coarse-grained building blocks that I would otherwise have to orchestrate or manage myself. So we do see a lot of adoption for that. It's kind of that progression, as I'm moving up, I'm moving into cloud-native designs and architectures. Now I'm looking to really empower and enable my developers to consume these fabric services. Moving up the stack. >> Comment I'll make on it is, if you look at what's happening with the container space, you heard about what Red Hat talked, is how they take that piece. I want to be able to take my application, have how I built that and have some flexibility as to where that lives. And that was one of the core values of what PaaS was going to offer because, if I want to do Red Hat as the AMP with OpenShift, I want to do it on-premises, I want to do it in AWS, I want to do it with Google, I have that flexibility. Maybe we're just not calling it PaaS anymore. >> Yeah, I think that's good. I think if you look at the move to containerization, there are still those other components or services that I need to consume. How am I solving for identity and networking and storage and all these other components that go into it? This is where some of the PaaS frameworks can help that. >> Just one piece. Rackspace has a really interesting portfolio of services. You're partnering with all the big cloud guys. You've got private cloud. What do your customers think when you say hybrid cloud, or multi-cloud, how does that fit in to where they are today and where they're making their strategy for cloud going forward? >> Again, Rackspace does represent a very large portfolio. We are the managed cloud company. I obviously am very focused on our private cloud and OpenStack, but we have as practices, we help enable customers to either migrate to, deploy or operate on Amazon web services. Certainly, the Azure platform, and recently we announced Google Compute, providing support for that. We have customers that are coming to us looking for help in architecting or moving to these. But the reality is almost all customers, and they touched on that during the keynote here, we live in a multi-vendor strategy or multi-cloud strategy. Certain clouds, either geographically or feature-set-wise are better suited for certain applications or workloads. Many of our customers are living in that hybrid cloud world, where I'm leveraging multiple different platforms depending on workload placement or other rules to that. Where Rackspace has really stepped it is providing that cloud expertise and helping them leverage that, providing tooling to help them deploy and operate in these different environments. In some cases where it's portability, move the same application around, but oftentimes it's really workload placement and how do I more effectively use it. >> We were talking in our open about the bromide from Marc Andreessen in Software's Eating The World, and the implication, tying that into Benioff's statement that there'll be more SaaS companies coming out of non-tech companies than tech companies. You're seeing some big SaaS tech companies like Workday and Salesforce, and Infor's always been there, moving to the Amazon cloud. And others who are maybe saying, "Well, I'm not sure I want to move to the Amazon Cloud." So my specific question is, relative to SaaS takeup on things like OpenStack, what are you seeing there? >> Ironically, certainly in private cloud, that's probably one of our biggest areas of growth is companies that are launching SaaS platforms for all the same reasons that they would be using an AWS to back that, right? They have the agility and rapid growth and elasticity that they can build into it, but they're running their platform, and depending on HR, you mentioned Workday, we have another great example. Ultimate software. They run their platform. Again, it's HR management and other services they want to run in a private cloud context, but deploying that framework where they can leverage cloud-native deployment. OpenStack has been a great fit for that, and helped them grow and scale. >> What's next for you guys in your world of OpenStack? Can you give us a little road map, and what we should expect going forward? >> For us, very specifically, if you focus on the IaaS layer, we continue to be very focused on operational efficiencies. How are we helping customers get the right unit economics out of a private cloud? Getting to greater densities, higher performance, more optimal usage of their cloud as we bring more visibility to actual capacity planning and capacity management, and make sure they're really leveraging or growing their cloud as they can. And then certainly from a feature set where we continue to move up and adopt these other services. I know we touched on earlier on the PaaS. This is an area where we're starting to get a lot of customer demand saying, "Can you help us in this area? "Are there things that you could be doing?" Going straight to native Kubernetes or looking at the different PaaS frameworks like OpenShift or Cloud Foundry. These are areas that we're starting to work more and more to potentially bring services to help customers really leverage these platforms. >> Paul Cormier was talking about how, you know, early days of the Cloud everybody thought everything was going to Amazon and so forth. But everything is going to the Cloud. Whether it's a private cloud or a public cloud, I know somebody told me the other day they're running an application in VMS. Okay, so some stuff never dies. But generally, the world will be cloud. Maybe we'll stop using the words like cloud and digital. Look at a camera! It's not a digital camera. Your thoughts on that? You buy that? >> No, I think you're spot-on. There's a long tale, there's still a lot of AS/400 out there. Although with OpenPOWER, maybe you could make the argument it's coming to OpenStack anyway. It is. If you think about any greenfield development, it's all being done in cloud-native ways. If you look at folks coming out of school and new application development, nobody's developing in the context of bare metal or legacy client/server apps that are built in that framework. I think even as enterprises continue to replatform services, they're moving into that cloud way. So they can take the long-term benefits of agility and cost-savings they're looking for. So we'll become ubiquitous. You're right, at some point, we're going to stop calling it cloud. It's just the way you're consuming infrastructure. >> Final question I have for you. A piece that I hadn't heard enough about when it comes to OpenStack is that kind of application modernization and replatforming. How does OpenStack fit into that discussion with your customers? I'm worried we talked in the keynote this morning about, it's like, oh, okay. We're going to do new stuff, but we might move the old stuff. We're not just moving the old stuff and leaving it, right? >> You're absolutely right. If you think of enterprises that are adopting or going all-in on OpenStack, they have, if you go back to the pets vs. cattle analogy everybody knows, they have lots of pets that they need to care for. We've looked at it and we've actually worked very hard with many customers on, how do I leverage things like Ceph to back Nova, and help bring things like live migration and other services that help OpenStack still cater to those pets and not force them in a full cloud-native model. How can I still deliver some amount of resiliency and failover in the infrastructure so the app doesn't have to be aware of it, and that way they can have one environment to run both new cloud development, but also still care for those legacy apps. >> Excellent. Bryan, thanks very much for coming to theCUBE. It was great to have you. >> Thank you guys. >> Enjoy the rest of the show. >> Bryan: Thank you. >> Keep it right there, everybody. We'll be back with our next guest at theCUBE. We're live from Red Hat Summit in Boston. Be right back. (energetic music)