>>from around the globe, it's >>the cube >>With digital coverage of IBM think 2021 brought to you by IBM Hello welcome back to the cubes coverage of IBM Think 2021. I'm john for your host of the cube had a great conversation here about cloud data, AI and all things. C X O from KPMG is Vinod Swaminathan who's the strategy head of strategy of Ai data and cloud as well as the C. I. O advisory at KPMG you know thanks for coming on the cube. >>My pleasure jOHn thanks for having me. >>So you guys have an interesting perspective, you sit between the business value being created from technology and the clients trying to put it to work um and KPMG impeccable reputation over the years obviously bringing great business value to clients. You guys do that. Um you're in the middle of the hot stuff cloud data and Ai um Ai is great if you have the data and the architecture do that in cloud scale brings so many new good things to the table. Um how is this playing out right now in your mind because we're here at IBM think where the story is transformed, transformation is the innovation. Innovation does set the table for net new capabilities at scale. This seems to be a common thread here. What's your take on the current situation? >>Well, let me start with the fundamental premise that we're seeing playing out with many of our clients and that is, clients are beginning to connect the different silos within their business to better respond to what their customers are asking for. Um you know, we we tend to work with large enterprises, very well established businesses and we're also fortunate to serve the needs of high growth companies as well. So we're in a very unique position as a trusted advisor to both legacy companies transforming and high growth companies looking to drive the transformation in the industry as well. So there are a few things that we're seeing right the first and foremost is responding quickly and effectively to very rapidly changing customer needs. And I think the pandemic really you know put a spotlight on how fast organizations had to pivot and I have to commend a lot of these organizations and doing a phenomenal job, I would argue, spit band aiding and gluing together a response to what their customers expected. Right? So as I look at post pandemic, we're seeing a lot of clients now looking to take stock of things that they did during the pandemic, how they address customer demand to really smooth them out and streamline as a strategy, how they're going to become more customer driven at KPMG. We call this the connected enterprise where you really work effectively across the front, middle and back office in an enterprise to seamlessly address the client. Right? Anything you do in finance really is driven by what your customers want. It's no longer, hey finance sit in the back office, right. Anything you do in marketing is no longer hey I'm doing it just to address the demand side of the equation, right? It's very integral to connect marketing with fulfillment. Right? So we call this the connected enterprise. So that transformation is only possible if customers and our clients are able to effectively leverage cloud from an architectural perspective. And when I say cloud, what we're seeing, smarter clients of ours start to think about is cloud in its entirety. So it's not just the public cloud, it's the cloud architecture, right? The ability to scale up scale out right scale down, right, irrespective of where all of this sits from an infrastructure perspective. So cloud is very critical for becoming that connected enterprise. Uh The data pieces integral, I think the data business today represents trillions of dollars. I think everybody has bought into the fact that data is the new oil and all of that good stuff that we've heard. Uh but it really is a trillion dollar business and it has some unique challenges. So being connected requires, right? That are that an enterprise become very data driven? I think it's hard to escape ai it's everywhere. To the point where we don't even uh we're not even conscious of ai at work, Right? So I think uh five years ago a I was a novel concept today. It's the expectation of customers who interact with big brands that ai is an integral part of how they are being served. Right, So cloud data ai architecture sort of the ingredients if you will. And then cool technology really starts to bring this connected concept together and post pandemic. We're going to start to see a lot of rationalization uh and big investments and moving forward in this trajectory. >>It's interesting cloud data now you, the way you talk about it makes me think about like just the constant of the old Os I stack right? You have infrastructure and cloud, you have data in the middle layer and then A. I. Is that that wonder area where the upside takes advantage of that data? Um Very cool insight. You know. Thanks for sharing that. The question I have for you put the pandemic I want to get your reaction to some conversations I've had in the industry and they tend to go like this. Um When we come out of the pandemic this is like a C X. O. Talking to Ceo. Or C. I. O. Or C. So when we come out of the pandemic we need a growth strategy, we need to be hidden, we need to be on the upswing, okay, not on the downswing or still trying to figure it out. Um And and that's a cool conversation because there's been to use cases that we've identified companies that had no has had a headwind because of the pandemic, either because of business disruption or the second categories, they've had a tail when they had a business opportunity. So the ones that had a headwind, they would retool, they used the pandemic to retool and the ones that had the tailwind would use the pandemic to either bring net new capabilities or or transform and innovate. So either way that's a successful use case. The ones who didn't do anything aren't going to survive much. We know that, but in those two cases they're not mutually exclusive. That's what the smart money's been doing. The smart teams. What's your advice now that we're in that mode where we're coming around the corner? How do companies get on that uptick? What have you guys advise into clients? What are you hearing and what, what's your reaction to that concept? >>Well, I think every company that is going to be on the survivors list post pandemic actually has digitally transformed, um, you know, even if they don't want to acknowledge it right in a lot of different ways. Um, so I think that's here to stay. Um, what I, and I'll give you a simple example, um, you know, I, I belong to a local club, you know, kitchen shut down, you know, no activities. I was amazed that it took them only four days John four days to actually bring a digital reservation system online through their mobile app. So in the past, the mobile app was simply for me to go look at the directory. But now I can do so many more things. Right? And I was talking to my club CI. All right. I mean, really not a C I. O. But you know, it was uh, it was, it was a staff member who was charged with driving the digital transformation. So there you go >>right to consult you, you know. >>Um, but what he talked to me about was fascinating. And this is what we're going to see, right? So first he said, another was so easy to bring some of those, you know, interactive experience type capabilities online to serve our customer base. It made us think, why the hell didn't we do it before? Alright, so, back to your question, I think post pandemic, we're going to see a lot of companies recognizing that low code, no code, right? Cloud AI capabilities are very much within the reach of the average business user, right? In companies like IBM have done a phenomenal job of demystifying the technology and trying to make it much more accessible for the business user. We're going to see continued momentum, right? And adopting these kinds of simple technologies to transform right business processes, customer interaction, so on and so forth. Right? So we we see that coming out of the pandemic, there's no stopping that. I think the second thing we see is a very firm commitment at the leadership level um that you know, stopping or slowing down these kinds of activities is a non starter at the board level. That's a nonstarter at the management committee level, right? Don't come to me saying we need to slow down things. Come to me saying we need to speed up things, right? But that said, we're seeing rationalization, conversations begin to happen and that starts with the strategy, right, tailwind or headwind, irrespective of which side of the equation you fell right in that, in that dynamic, what we're seeing is clients coming back and saying, all right, we know our strategy needs to be different. Let's make sure that we have a strategy that aligns better with um where our customers want to go, where the industry is headed. And let's acknowledge that there are technological capabilities now, but actually turbocharge the execution of the strategy. Technology is not the strategy, it's still connected enterprise thought, How do I serve my customers whose expectations have dramatically changed coming out of the pandemic? And that's why I gave you the club example. I never want to call anybody to make a reservation anymore. I mean even the local hair salon has a queuing system and a reservation system because you know, that's just the way it is. Right? So there are some simple things that have happened on the customer side of uh, you know, the equation, which is forcing a lot of our clients to start, you know, accelerating their digital investments. Um, you know, rather than decelerating, >>it's interesting. That's great insight. I think just to summarize that, I think you're pointing out is the obvious, hey, it works the indifference of the digital to go the next level and see X. O. S and C I. O. S have had, you know, either politics or blockers or just will it work? And I think with the pandemic necessity is the mother of all inventions. You say, hey, we got to get back on business that the economics and the user experience is more than acceptable. It's actually preferred. I think that club example really highlights that expectation change and I >>think that's an interesting architecture discussion right? And I don't mean that technically I think businesses are starting to think about how are they architected, right. And this is where the connected enterprise concept from KPMG is resonating because now you know, we see our clients no longer thinking about finance, sales, marketing, right? And fulfillment right? That's how the architect of their business. Before now they're realizing that they need to sort of put it on its side. Right, I love the cube analogy, I'm going to borrow it, they're flipping the cube on the side and pulling out a whole new business architecture which by the way is enabled and supported by an underlying technology architecture that's very different. Right? So I think businesses are going to get re architected in technology companies like IBM and Red Hot are going to be right there helping clients go through that re architected along with partners like us, >>the script has been flipped, the cube has been turned and I think this was the revelation. The economics are clear. So I gotta ask you, I mean I've always been I've been joking with IBM the president like it, but I've been saying that, you know, business now is software enabled and the operating systems, distributed computing. As you mentioned, these subsystems are part of this fabric and red hat there and operating systems company. Um, so kind of in a good position with what Marvin's doing. If you think about if you look at squint through and connect the dots, I mean you're looking at an underlying operating system that's open and connected to business, it's not just software apps that run something like an ear piece system, it's an business software model for the entire company completely instrumented. This is what hybrid cloud is. Could you, could you take a few minutes to talk about the relationship that you guys have with IBM on how you guys are working together to bring this hybrid cloud vision to their customers into the market. >>So KPMG and IBM go back about 20 plus years long standing relationship. Um in fact, I kid around with many of my fellow partners here at KPMG that IBM is the only relationship that we did not divest off when we went through our let's flip management consulting off from our accounting business, so on and so forth that everybody went through. Right? So very long standing relationship, you know, we're a trusted partner of IBM but we're very different from a lot of the partners that IBM has were business consultants, right? We don't have, you know, we help clients think through their business first before we get into the technology implementation. So I don't have armies of IBM certified engineers sitting on the bench looking for work to do. It's actually the other way around. Right? So it's been a great marriage when IBM has phenomenal technology in this case, you know, they have been leaders in AI, we've got an AI based relationship now going back five years, um you know, where we consumed Watson proved to ourselves and the world that it can be done very innovatively supporting business transformation. And now we're able to together with IBM effectively have that conversation with clients, right? Because we're client number zero, uh we're big into a hybrid, multi cloud, um you know, we're big red hat customers. Uh you know, we use red hat in our own modernization of several different workloads. So our relationship with IBM is very strong, were a good supplier to them as well, so we help them with their strategy and go to market as well. So an interesting sort of relationship. Um look when we work with clients, we typically tend to, you know, take a trusted advisor role with clients. Our brand speaks to the trust that we're able to bring when we talk to clients. Uh I kid around um you know, when you're going through a transformation, you probably want the town skeptic holding your hand. That's us, right? We're very risk averse. We like working with clients who you know, kind of want that, you know, critical look when they're investing in technology driven transformation. Um you know, some of the things that IBM has done is pretty phenomenal. Right? So for example, I don't see um you know, I don't see a lot of providers out there who give clients the kind of options that IBM gives with their multi cloud capabilities. Right? So show me conversational ai capability that can run on private cloud, that can run on google amazon IBM and a whole bunch of other cloud providers. Right, So I think as IBM invests in that open right philosophy and obviously the Red hat acquisition only further enhances that. Right, um it's a great opportunity for us to be able to take very powerful KPMG value propositions um you know, enabled by this kind of IBM technology. Right, so that's how we tend to go to market. Um one of the solutions were offering with IBM is called the KPMG data mesh. It's built on IBM cloud pack for data, which is enabled by red hats open shift and it's a very innovative solution in the marketplace that fundamentally asked the question to clients, why are you spending inordinate amount of time and resources moving data around in order to become data driven? Uh it just amazes me john how much money is being thrown at, you know, moving data around, particularly as you get into this complex hybrid, multi cloud world. Right. How many times am I going to move data from, you know, a mainframe database into my, you know, cloud repository before I can start doing uh, you know, real higher value work. Right, So KPMG data mesh enabled by the IBM cloud back, the data says, hey, legal data, wherever it is. You know, we can take up to 30 of costs out and really get you on this journey to become data driven without spending the first nine months of every project building a data warehouse or building an expensive data where data lake. Right? Because all of those, frankly our 20th century mindset, right? So if I can leave the data where it is your favorite terminology virtually is the data and really focus on what do I do with the data as opposed to you know, how do I move the data? Right. It really starts to change the mindset around becoming data driven. Right, so that's a great example of a solution where we've married our value proposition to clients around connected and trusted and leveraged IBM technology right? In a hybrid multi cloud >>but no great insight. Love the focus. Hybrid cloud, congratulations on your KPMG mesh solution. Their cloud mesh awesome. Taking advantage of the IBM work and love your perspective on the industry. I think you you called it right. I think that's a great perspective. That's the way we're on big transformation innovation wave. Thanks for coming on the key. Appreciate it. >>Absolutely my pleasure. Thanks for having me have a good day. >>Okay, Cube coverage of IBM think 2021. I'm John for your host of the Cube. Thanks for watching.

>>mhm Yes. >>Welcome back to the cubes coverage of red hat summit 2021 virtual. I'm john for a host of the cube we're here in Palo alto. Were remote with our great guest here cube alumni. I've been on many times chris wright, Senior vice president and CTO of red hat chris great to see you. Always a pleasure to have you on the screen here too. But we're not in person but thanks for coming in remote. >>Yeah, you bet. Glad to be here. >>Not only were talking about speeds and feeds, digital transformation going under the hood here we're gonna talk about red hats, expanded collaboration with boston University to help fund education and research for open source projects. So you guys have a huge relationship with boston University. Talk about this continued commitment. What's the news, what's the, what's the story? >>Well, we have a couple different things going on uh and and the relationship we have with the EU is many years in. So this itself isn't brand new. Um one of the things that's important to highlight here is we are giving something north of $550 million dollars worth of software to be you really in pursuit of running uh powering and running scaled infrastructure. That's part of the open hybrid class. Um and that's that's an important piece which we can touch on a little bit as we talk to this conversation. The other one is like I said, this isn't a new relationship with the U. And what we're doing now is really expanding the relationship. So we've we've built a great connection directly with the You were substantially expanding that. Um The original relationship we had was a $5 million relationship spread over five years now. We're talking about a $20 million Relationship spread over five years. So really a significant expansion. And of course that expansion is connected to some of the work that we plan to do together in this open hybrid cloud infrastructure and research space. So a lot of things coming together at once to really really advance the red hat ca laboratory at the U. That combined effort in bringing you know, cloud research and open source and all these things together >>and a lot of actually going on. So basically the boston area lot of universities, but I love the shirt you're wearing with his red hat innovation in the open. This is kind of one of those things you also mentioned out of this huge subscription of software grant that's going to be you just a huge number give value for for the boston University. But you also have another project that's been going on the collaborative research and education agreement called red hat collaborative orI Okay, this was in place. You mentioned that. How's that tying in because that was pre existing. Now. You've got the grant, you got your funding more and more research. Talk about how this connects into the open cloud initiative because this is kind of interesting. You're not bringing hybrid cloud kind of research and practical value in A i ops is hot. You can't you can't go anywhere these days without having great observe ability. Cloud native more and more is more complex and you've got these young students and researchers dying and get their hands on it. Take us through the connection between the CA laboratory and open open cloud. >>So the CA laboratory is a clever name that just talks about collaboration and research laboratory type research. And initially the CA laboratory focus was on the infrastructure running the cloud and some of the application workloads that can run on top of an open cloud infrastructure uh that are that's very data centric. And so this is uh an opportunity for multidisciplinary work looking at modeling for um for health care, for example for how you can improve imaging and we've had a great results in this collaboration. Um We've talked at times about the relationship with the boston Children's Hospital and the chris project not related to me, but just similar acronym that spells chris. Um and these things come together in part through connecting relationships to academia, where academia as research is increasingly built in on and around open source software. So if you think of two parallel worlds, open source software development, just the activity of building open source software, it brings so many people together and it moves so quickly that if you're not directly connected to that as an academic researcher, you risk producing academic research results that aren't relevant because it's hard for them to connect back to these large, fast moving projects, which may have invented a solution to the problem you've been focused on as an academic if you're not directly connected. So we see academia and open source coming together to build really a next generation of understanding of the scientific in depth and he's joining the >>train operations you're talking about here though, this is significant because there's dollars behind it, right? There's real money, it's not >>just the right software, >>it's it's a center, it's a joint operation. >>That's right. And so when you think about just the academic research of producing um ideas that manifest themselves as code and software projects, we want to make sure we're first connecting the software projects to open source communities in with our own engineering experience, bringing code into these open, open source projects to just advance the the feeds and speeds and speeds, the kind of functionality the state of the art of the actual project. We're also taking this to a new level with this expanded relationship and that is software today. When you, when you operate software as a cloud, a critical part of the software is the operationalization of that software. So software just sitting there on the shelf doesn't do anybody any good. Even if the shelf is an open source project, it's a tar ball waiting for you to download. If you don't ever grab it and run it, it's not doing anybody any good. And if the challenge of running it is substantial enough that it stops you from using that software, you've created a barrier to the value that's locked inside that project. The focus here is how can we take that the operations experience of running a cloud, which itself is a big complex distributed system, tie some of those experiences back into the projects that are used to build that infrastructure. So you're taking not just the output of the project, but also the understanding of what it takes to run a project and bringing that understanding and even the automation and code associated with that back into the project. So, your operational izing this open source software and you're building deeper understanding of what it means to operate things that scale, including data and data sets that you can use to build models that show how you can create the remediation and closed loop systems with AI and machine learning, you know, sort of synthesizing all the data that you generate out of a big distributed infrastructure and feed that back into the operations of that same infrastructure. So a lot going on there at the same time operationalization as as an open source initiative but also um really the understanding advancement of A I and data centric operations, so ai ops and closed the remediation. >>Yeah, I mean, devops developer and operations to operationalize it and certainly cloud Native put an emphasis on Day two operations, which leads a lot more research, a lot more uh student work on understanding the coding environment. Um so with that I got to ask um I asked you about this uh massachusetts focused or this open cloud initiative because you guys are talking about this open cloud initiative including this massachusetts. Open Cloud, what is that? What is the massachusetts? Open Cloud sounds like you're offering a kind of open person, not just bu but other um Yeah, institutions. >>That's right. So the the M o C massachusetts open cloud is itself a cross um organizational collaboration bringing together five different academic institutions in New England In massachusetts. It's bu it's Harvard mit, its Northeastern and its U. Mass. Coming together to support a common set of infrastructure which is cloud. It's a cloud that runs in a data center and then um it serves a couple of different purposes. One is research on clouds directly. So what does it mean to run a cloud? What does it look like from a research point of view to understand large scale distributed systems? And then the other is more on top. When you have a cloud you can run workloads and those workloads scaled out to do say data processing, looking at the implications of across different fields which could be natural sciences, could be medicine, could be, even political science or social science is really a multidisciplinary view of what it means to leverage a cloud and run data centric workloads on top. So two different areas that are of a focus for the M. O. C. And this becomes this sort of vehicle for collaboration between Red Hat View and the Red Hot Laboratory. >>So I have to ask only because I'm a big fan of the area and I went to one of those schools, is there like a bean pot for technical hackathons where you get all the schools matched up against each other on the mass open cloud and compete for who gets bragging rights and the text city there. >>It's a great question. Not yet. But I'll jot that down here in hell. Up on that. >>Happy to sponsor. We'll we'll do the play by play coverage, you know. Great. >>I love that. Yeah, kind of twitch tv style. The one thing that there is which is very practical is academic research grants themselves are competitive, right? People are vying for research dollars to put together proposals, Bring those proposals to um the agency that's that's that's giving out grants and winning those grants is certainly prestigious. It's important as part of her research institutes continue to fund the work that they're doing. Uh Now we've been associated uh through the work we've done to date with the U. With Yeah almost $15 million 20 papers. So there's there's a lot of work you can't quite call the play by play. It's a >>scoreboard. I mean their numbers you can put numbers on the board. I mean that's what's one of the things you can measure. But let me ask you on those grants. So you're saying this is just the bu you guys actually have data on um the impact of the relationship in terms of grants and papers and stuff like that academic work. >>That's right. That's right. And so those numbers that I'm giving you are examples of how we've worked together with the u to help their faculty generate grant dollars that then fund some of the research that's happening there together with redhead engineers and on and on the infrastructure like the massachusetts Open cloud. >>That's a good way to look at the scoreboard. It's a good point. We have to research that if you don't mind me asking on this data that you have um are all those projects contributing to open source or do they have to be? That's just generic. Is that all of you all papers around bu is part of the research. In other words, I'm trying to think if I'm in open source, has this contributed to me as an >>open source? Yeah, it's a big and complex question because there's so much research that can happen through a research institution. And those research grants tend to be governed with agreements and some of those agreements have intellectual property rights um front and center and might require things like open source software as a result, the stuff that we're working on clearly isn't that focus area of open source software and and research activities that help kind of propel our understanding forward of what does it mean to do large scale distributed systems creation and then operation. So how do you develop software that does it? How do you how do you run the software that builds these big large distributed systems? So we're focused in that area. Um some of the work that we facilitated through that focus includes integrating non open source software that might be part of um same medical imaging. So for example work we've done with the boston Children's Hospital That isn't 100 doesn't require us to be involved 100 of the open source pieces. All the infrastructure there to support it is. And so we're learning how we can build integrated pipelines for data analysis and image analysis and data sharing across different institutions uh at the open source project level. Well maybe we have a specific imaging program that is not generated from this project. And of course that's okay with >>us. You know chris you bring up a good point with all those conversations. I could see this really connecting the dots. Most computer science programs. Most engineering programs haven't really traditionally focused on it at the scale we're talking about because we look at cloud scale but now scaling with hybrid it's real engineering going on to think about the large scale. We know all the big hyper scale ear's right so it's not just I. T. Provisioning you know network connection and doing some I. T. Work. We're talking about large scale. So I have to ask you as you guys look at these relationships with academics uh academia like like bu and others um how are the students responding to this? Are you guys seeing any specific graduate level advancements? Because you're talking about operational roles that are becoming so important whether it's cyber security and as cloud needed because once more data driven you need to have all this new scale engineered up. That's >>what how >>do you look at that? >>There's two different pieces that I would highlight. One is just the data science itself. So schools still need to produce data scientists. And having data is a big part of being a data scientist and knowing what your what your goals are with that data and then experimenting with different techniques, whether it's algorithms or tools. It's a big part of being a data scientist sort of spelunking through the data. So we're helping produce data. We're looking at data science efforts around data that's used to operationalize infrastructure, which is an interesting data science endeavor by itself. The other piece is really what you highlighted, which is there's an emergence of a skill set in the industry, often referred to as SRE site reliability engineering. Um it is a engineering discipline. And if you back up a little bit and you start thinking about what are the underlying principles behind large scale distributed systems, you get to some information theory and computer science. So this isn't just something that you might think of as um some simple training of a few key tools and knowing how to interpret a dashboard. And you're good to go, this is a much more sophisticated view of what does it mean to really operate large scale infrastructure, which to date, there aren't a lot of these large scale infrastructures available to academics to research because their commercial endeavors >>and their new to me. I was talking to some young folks my son's age and daughters age and I was saying, you know, architect in a building, a skyscraper isn't trivial. You can't just do that overnight. There's a lot of engineering that goes on in that science, but you're bringing kind of operating systems theory, systems thinking to distributed computing. I mean that's combination of a interdisciplinary shift and you got, I won't say civil engineering, but like concept is there, you've got structure, you've got networks, they're changing and then you've got software so again completely new area. >>That's right and there's not a lot of even curriculum that explores this space. So one of the opportunity, there's a great program that really focuses on um that that space of site reliability engineering or operational izing software. Um And then the other piece that I'm I'm really excited about is connecting to open source communities so that as we build software, we have a way to run and operationalize that software that doesn't have to be directly tied to a commercial outlet. So products running in the cloud will have a commercial S. L. A. And commercial agreements between the user and the producer of that service. How do you do that in open source context? How do you leverage a community, bring that community software to a community run service, learn through the running of that service. How to best build architect the service itself and then operationalized with the tooling and automation that service? How do you, how do you bring that into the open source community? And that's something that we've been referring to as the operate first initiative. How do you get the operationalization of software? Really thought of as a primary focal point in the software project where you normally think about the internals of software, the features, the capabilities of functionality, less about the operationalization. So important shift at the open source project level, which is something that I think will really be interesting and we'll see a lot of reaping a lot of rewards. Just an open source communities directly. >>Yeah, speed and durability. Certainly having that reliability is great. You know, I love talking with you guys at red hat because, you know, software, you know, open source and you know, operating systems because as it comes together in this modern era, what a great, great fit, great work you're doing with Boston University's and the mass open cloud initiative. Congratulations on that. I got I got to ask you about this Red Hat Graduate Fellows program you have because this kind of speaks to what you guys are doing, you have this kind of this redhead graduate fellows network and the work that's being done. Does that translate into red hat at all? From an engineering standpoint? How does that, how does that work together? >>Basically, what we do is we support um PhD students, we support post docs. So there's a real direct support to the, you know, that is the Red Jack Graduate Fellow program on our focus there is connecting those um uh academics, the faculty members and the students to our engineers to work together on key research initiatives that we think will help drive open source software agendas forward really broad can be in all different areas from security to virtualization too, the operating systems to cloud distributed systems, uh and one of the things that we've discovered is it creates a great relationship with the university and we find students that will be excited to leave university and come into the the industry workforce and work at Red hat. So there is a direct talent relationship between the work that we do at bu and the talent that we can bring into red hat, which is awesome. Uh We know these people we've worked with well with them, but also we're kind of expanding understanding of open source across, you know, more and more of academia, which I think is really valuable and important for red hat. We just go out to the the industry at large, um, and helping bring a set of skills to the industry that whether they're coming, whether these are students that come into red hat or go elsewhere into the industry, these are important skills to have in the industry. So we look at the, how do you work in open source communities? How to operationalize software at scale? These are important things. They didn't >>expand, expand the territory if you will in terms of systems thinking. We just talked about great collaboration. You guys do a great job chris great to have you on a quick final word from you on this year at red hat summer. I know it's virtual again, which we could be in person, but we're starting to come out of the covid kind of post covid right around the corner. Um, what's the update? How would you describe the current state of red hat? Obviously you guys still got that, that vibe. You still pumping strong a lot going on. What's the current? What's the current, uh, bumper sticker? What's the vibe? >>Well, in many ways, because we're so large and distributed. Um, the last year has been, uh, can't say business as usual because it's been an impact on everybody, but it hasn't required us to fundamentally change. And as we work across open source communities, there's been a lot of continuity that's come through a workforce that's gone completely distributed. People are anxious to get to the next phase, whatever back to normal means. Uh, and people at Red Hat are no different. So we're looking forward to what it can mean to spend time with colleagues in offices, were looking forward to what it means to spend time together with our friends and families and travel and all those things. But from a, from a business point of view, Red Hat's focus on the open hybrid cloud and that distributed view of how we work with open source communities. That's something that's, it's only continued to grow and pick up over the course of the last year. So it's clearly an important area for the industry and we've been busier than ever the last year. So, uh, interesting, interesting times for everybody. >>Well, it's great to see and I love how the culture maintains its its relevance, its coolness intersection between software, Open Source and systems. Great, Great working congratulations chris. Thanks for coming on. >>Thank you. >>All right. I'm John for here with the Cube for Red Hat Summit 2021. Thanks for watching. Mhm.

>>from around the globe, >>it's the cube with digital coverage of IBM >>Think 2021 brought to you by IBM Hello welcome back to the cubes coverage of IBM Think 2021. I'm john for your host of the cube had a great conversation here about cloud data, AI and all things. C X O from KPMG is Vinod Swaminathan who's the strategy head of strategy of Ai data and cloud as well as the C. I. O advisory at KPMG you know thanks for coming on the cube. >>My pleasure jOHn thanks for having me. >>So you guys have an interesting perspective, you sit between the business value being created from technology and the clients trying to put it to work um and KPMG impeccable reputation over the years obviously bringing great business value to clients. You guys do that. Um you're in the middle of the hot stuff cloud data and Ai um Ai is great if you have the data and the architecture do that in cloud scale brings so many new good things to the table. Um how is this playing out right now in your mind because we're here at IBM think where the story is transformed, transformation is the innovation. Innovation does set the table for net new capabilities at scale. This seems to be a common thread here. What's your take on the current situation? >>Well, let me start with the fundamental premise that we're seeing playing out with many of our clients and that is, clients are beginning to connect the different silos within their business to better respond to what their customers are asking for. Um you know, we we tend to work with large enterprises, very well established businesses and we're also fortunate to serve the needs of high growth companies as well. So we're in a very unique position as a trusted advisor to both legacy companies transforming and high growth companies looking to drive the transformation in the industry as well. So there are a few things that we're seeing right the first and foremost is responding quickly and effectively to very rapidly changing customer needs. And I think the pandemic really, you know put a spotlight on how fast organizations had to pivot and I have to commend a lot of these organizations and doing a phenomenal job, I would argue, spit band aiding and gluing together a response to what their customers expected. Right? So as I look at post pandemic, we're seeing a lot of clients now looking to take stock of things that they did during the pandemic, how they address customer demand to really smooth them out and streamline as a strategy, how they're going to become more customer driven KPMG. We call this the connected enterprise where you really work effectively across the front, middle and back office in an enterprise to seamlessly address the client. Right? Anything you do in finance really is driven by what your customers want. It's no longer, hey finance sit in the back office, right. Anything you do in marketing is no longer hey I'm doing it just to address the demand side of the equation, right? It's very integral to connect marketing with fulfillment. Right? So we call this the connected enterprise. So that transformation is only possible if customers and our clients are able to effectively leverage cloud from an architectural perspective. And when I say cloud, what we're seeing, smarter clients of ours start to think about is cloud in its entirety. So it's not just the public cloud, it's the cloud architecture, right? The ability to scale up scale out right scale down, right, irrespective of where all of this sits from an infrastructure perspective. So cloud is very critical for becoming that connected enterprise. Uh The data pieces integral, I think the data business today represents trillions of dollars. I think everybody has bought into the fact that data is the new oil and all of that good stuff that we've heard. Uh but it really is a trillion dollar business and it has some unique challenges. So being connected requires, right that are that an enterprise become very data driven? I think it's hard to escape ai it's everywhere to the point where we don't even uh we're not even conscious of ai at work, Right? So I think uh five years ago a I was a novel concept today. It's the expectation of customers who interact with big brands that ai is an integral part of how they are being served. Right? So cloud data ai architecture sort of the ingredients if you will. And then cool technology really starts to bring this connected concept together and post pandemic. We're going to start to see a lot of rationalization uh and big investments and moving forward in this trajectory. >>It's interesting cloud data now you, the way you talk about it makes me think about like this the constant of the old Os I stack right? You have infrastructure and cloud, you have data in the middle layer and then A. I is that that wonder area where the upside takes advantage of that data? Um Very cool insight. You know, Thanks for sharing that. The question I have for you put the pandemic I want to get your reaction to some conversations I've had in the industry and they tend to go like this. Um when we come out of the pandemic this is like a C X O. Talking to Ceo. Or C. I. O. Or C. So when we come out of the pandemic we need a growth strategy, we need to be hidden, we need to be on the upswing, okay? Not on the downswing or still trying to figure it out. Um And and that's a cool conversation because there's been to use cases that we've identified companies that had no has had a headwind because of the pandemic either because of business disruption or the second categories, they've had a tail when they had a business opportunity. So the ones that had a headwind, they would retool, they used the pandemic to retool and the ones that had the tailwind would use the pandemic to either bring net new capabilities or or transform and innovate. So either way that's a successful use case. The ones who didn't do anything aren't going to survive much. We know that, but in those two cases they're not mutually exclusive. That's what the smart money's been doing. The smart teams. What's your advice now that we're in that mode where we're coming around the corner? How do companies get on that uptick? What have you guys advise into clients? What are you hearing and what, what's your reaction to that concept? >>Well, I think every company that is going to be on the survivors list post pandemic actually has digitally transformed, um, you know, even if they don't want to acknowledge it right in a lot of different ways. Um, so I think that's here to stay. Um, what I, and I'll give you a simple example, um, you know, I, I belong to a local club, you know, kitchen shut down, you know, no activities. I was amazed that it took them only four days John four days to actually bring a digital reservation system online through their mobile app. So in the past, the mobile app was simply for me to go look at the directory. But now I can do so many more things. Right? And I was talking to my club CI. All right. I mean, really not a C I. O. But you know, it was uh, it was, it was a staff member who was charged with driving the digital transformation. So there you go. >>Good consultant, you, you know, uh >>but what he talked to me about was fascinating. And this is what we're going to see. Right? So first he said, another was so easy to bring some of those, you know, interactive experience type capabilities online to serve our customer base. It made us think, why the hell didn't we do it before. Alright, so, back to your question, I think post pandemic, we're going to see a lot of companies recognizing that low code, no code, right? Cloud AI capabilities are very much within the reach of the average business user, right? In companies like IBM have done a phenomenal job of demystifying the technology and trying to make it much more accessible for the business user. We're going to see continued momentum, right? And adopting these kinds of simple technologies to transform right business processes, customer interaction, so on and so forth. Right? So we we see that coming out of the pandemic, there's no stopping that. I think the second thing we see is a very firm commitment at the leadership level um that you know, stopping or slowing down these kinds of activities is a non starter at the board level. That's a nonstarter at the management committee level, right? Don't come to me saying we need to slow down things, Come to me saying we need to speed up things, right? But that said, we're seeing rationalization, conversations begin to happen and that starts with the strategy, right, tailwind or headwind, irrespective of which side of the equation you fell right in that, in that dynamic, what we're seeing is clients coming back and saying, all right, we know our strategy needs to be different. Let's make sure that we have a strategy that aligns better with um where our customers want to go, where the industry is headed. And let's acknowledge that there are technological capabilities now, but actually turbocharge the execution of the strategy. Technology is not the strategy, it's still connected enterprise thought. How do I serve my customers whose expectations have dramatically changed coming out of the pandemic? And that's why I gave you the club example. I never want to call anybody to make a reservation anymore. I mean, even the local hair salon has a queuing system and a reservation system because you know, that's just the way it is, Right? So there are some simple things that have happened on the customer side of uh, you know, the equation, which is forcing a lot of our clients to start, you know, accelerating their digital investments. Um, you know, rather than decelerating, >>it's interesting. That's great insight. I think just to summarize that, I think you're pointing out is the obvious, hey, it works the indifference of the digital to go the next level and see X O. S and C I O. S have had, you know, either politics or blockers or just will it work? And, and I think with the pandemic necessity is the mother of all inventions. You say, hey, we got to get back on business that the economics and the user experience is more than acceptable. It's actually preferred. I think that club example really highlights that expectation change and I >>think that's an interesting architecture discussion right? And I don't mean that technically I think businesses are starting to think about how are they architect right. And this is where the connected enterprise concept from KPMG is resonating because now you know we see our clients no longer thinking about finance, sales marketing right and fulfillment right? That's how the architect of their business before now they're realizing that they need to sort of put it on its side. Right, I love the cube analogy, I'm going to borrow it, they're flipping the cube on the side and pulling out a whole new business architecture which by the way is enabled and supported by an underlying technology architecture that's very different. Right? So I think businesses are going to get re architected in technology companies like IBM and Red Hot are going to be right there helping clients go through that re architected along with partners like us. >>The script has been flipped and the cube has been turned and I think this was the revelation. The economics are clear. So I gotta ask you, I mean I've always been I've been joking with IBM the president like it, but I've been saying that, you know, business now is software enabled and the operating systems, distributed computing. As you mentioned, these subsystems are part of this fabric and red hat there and operating systems company. Um so kind of in a good position with what Marvin's doing. If you think about if you look at squint through and connect the dots, I mean you're looking at an underlying operating system that's open and connected to business, it's not just software apps that run something like an ear piece system, it's an business software model for the entire company completely instrumented. This is what hybrid cloud is, could you, because you take a few minutes to talk about the relationship that you guys have with IBM on how you guys are working together to bring this hybrid cloud vision to their customers and to the market. >>So KPMG and IBM go back about 20 plus years long standing relationship. Um In fact, I kid around with many of my fellow partners here at KPMG that IBM is the only relationship that we did not divest off when we went through our let's flip management consulting off from our accounting business, so on and so forth that everybody went through, right? So very long standing relationship, you know, we're a trusted partner of IBM well we're very different from a lot of the partners that IBM has were business consultants, right? We don't have, you know, we help clients think through their business first before we get into the technology implementation. So I don't have armies of IBM certified engineers sitting on the bench looking for work to do. It's actually the other way around. Right? So it's been a great marriage when IBM has phenomenal technology in this case. You know, they have been leaders in AI, we've got an AI based relationship now going back five years, um you know, where we consumed Watson proved to ourselves and the world that it can be done very innovatively supporting business transformation. And now we're able to, together with IBM effectively have that conversation with clients, right? Because we're client number zero, uh we're big into a hybrid, multi cloud, um you know, we're big red hat customers. Uh you know, we use red hat in our own modernization of several different workloads. So our relationship with IBM is very strong, were a good supplier to them as well, so we help them with their strategy and go to market as well. So an interesting sort of relationship. Um look, when we work with clients, we typically tend to, you know, take a trusted advisor role uh with clients, our brand speaks to the trust that we're able to bring when we talk to clients. Uh I kid around um you know, when you're going through a transformation, you probably want the town skeptic holding your hand. That's us, right? We're very risk averse. We like working with clients who you know, kind of want that, you know, critical look when they're investing in technology driven transformation. Um you know, some of the things that IBM has done is pretty phenomenal. Right? So for example, I don't see um you know, I I don't see a lot of providers out there who give clients the kind of options that IBM gives with their multi cloud capabilities. Right? So, you know, show me conversational ai capability that can run on private cloud, that can run on google amazon IBM and a whole bunch of other cloud providers. Right? So I think as IBM invests in that open right philosophy and obviously the red hat acquisition only further enhances that, right, um it's a great opportunity for us to be able to take very powerful KPMG value propositions um you know, enabled by this kind of IBM technology, Right? So that's how we tend to go to market. Um one of the solutions were offering with IBM is called the KPMG data mesh. It's built on IBM cloud pack for data, which is enabled by red hats open shift and it's a very innovative solution in the marketplace that fundamentally asked the question to clients, why are you spending inordinate amount of time and resources moving data around in order to become data driven? Uh it just amazes me john how much money is being thrown at, you know, moving data around, particularly as you get into this complex hybrid, multi cloud world. Right. How many times am I going to move data from, you know, a mainframe database into my, you know, cloud repository before I can start doing uh real higher value work. Right, So KPMG data mesh enabled by the IBM cloud packed the data says, hey, legal data, wherever it is. You know, we can take up to 30 of costs out and really get you on this journey to become data driven without spending the first nine months of every project building a data warehouse or building an expensive data where data lake, Right? Because all of those, frankly our 20th century mindset, right? So if I can leave the data where it is, your favorite terminology virtually is the data and really focus on what do I do with the data as opposed to, you know, how do I move the data? Right. It really starts to change the mindset around becoming data driven. Right, so that's a great example of a solution where we've married our value proposition to clients around connected and trusted and leveraged IBM technology. Right? In a hybrid multi cloud one, >>you know, a great insight, love the focus. Hybrid cloud, congratulations on your KPMG mesh solution, their cloud mesh, awesome. Taking advantage of the IBM work and love your perspective on the industry. I think you you called it right? I think that's a great perspective. That's the way we're on big transformation innovation wave. Thanks for coming on the key, appreciate it. >>Absolutely my pleasure. Thanks for having me have a good day. >>Okay, Cube coverage of IBM think 2021. I'm John for your host of the Cube. Thanks for watching. Mhm >>mm.

>> live from Boston, Massachusetts. It's the queue covering your red. Have some twenty nineteen brought to you by bread hat >> and welcome back to the Red Hat Summit. We're live in the B, C, E C, the Boston Convention and Exposition Center, along with two metal men. I'm John Walls were joined by Stephanie Cheer us. Who is the vice president? GM and Red had Enterprise. Lennox? Yes. Good to see here. >> Nice to see you teach >> back in Boston, right back >> in Boston. Home turf. >> You feel at home here? I would give you a big day for you. Right. Relic comes out generally available now a big impact on the marketplaces. Talk about that baby that you've given birth through here today. >> Wear so excited and, you know, having put in all the time. Part of this is representing all the work the team has done and the communities have done. When you think about all the work that goes into a Lennox distribution, it is everybody. It's the communities, It's the partners. So we released the Red Hat Enterprise Lennox eight beta in November mid November. We've had forty thousand downloads of that beta since November. People who have provided feedback and comments, suggestions, all of that fed into what we've released today as the Red Hat Enterprise Lennox eight. General availability. So it's a big day, and part of it is we're just so proud of how we've done it and what we've done. And we've really redefined what are not the value of an operating system with Red Hat Enterprise on its eight >> Dannic students, even saying earlier. Excuse me still, but you're saying there's many years in the making, right? Twenty fourteen It was That was the last was when. Seven. >> That's right. It's been five years. >> And so Hobart Theatre, editor of Process That You went through especially, you know, through that beta stage of a little interested in that are a lot interested in that. In terms of of the changes that were still made at that time that once you heard from users and actually put it into practice, >> yes, so we one of the things that part of our subscription model is getting feedback from customers. It's critical for us and tow advocate for those asks upstream because, of course, everything we do is done upstream. So this is part of the way we build, I would say relate was quite different in the sense that I focus all the features and functions we put into it into two pockets. We wanted to make sure that it helped customers with all the changes that have happened in the industry, helped them run their business better. So things like, Is it hard to find Lenox skills? How did we build a Web console to make that easier? Is it hard to orchestrate a data center? We put in a new capability that's a rules based engine, as a software is a service offering in every rail subscription that takes all that we have learned in the market to how to run an efficient Lennox data center. And it sends that out an assassin offering toe every rail subscription owner right that helps them be more efficient. And then there's the whole set of features and functions we put in to help customers grow the business things like container tooling so they can take that one step into containers right from the operating system. Application streams pull in new versions, so I look at everything we've done. Is it relate, really focuses on running the business better, more efficiently and helping grow the business. It's combination of those two things, and the feedback has been great, right? The relic Beta was great. Some tweaks, some tuning. Some. I like how this is too hard. Take out the friction. That's what we were working on since November. >> Stephanie. It is fascinating to me because, you know, I remember last year Saturn with the right hat team. They talked about just that. The amount of change that goes in tow. Lennox, you know, talk about, you know, it's twenty one point six million lines of code. Over the last two years, a third of the code base has changed, and it's something that you know, since it's open source. There's a lot of visibility by the community has been coming for years, yet something you've been working on for five years. We know how much change there's been in the industry. You just talk a little bit about how you balance those dynamics of, you know, that the caves of released cycle. I understand there's going to be a very systematic approach going forward, as how releases are how right that looks at things >> and and one of the roles that we see that we play in the industry is sitting between all the innovation and the outlook work that's being done in the communities and the enterprise, customers who need to know that they're going to run this hardware and it's gonna work. They're going to run this application and it's going to work, and we serve to bridge that gap in between. We advocate for our customers upstream. We make sure that innovation has tried true and tested by the time it reaches them in rail and we sit in that bridge. So to your point, we're constantly getting input from customers about things that are critical to them, things like life cycle capabilities. Now in an upstream community, they probably don't care about a ten year life cycle. But if you're running it on the floor of a data center, they do and we bridge that gap, feeding that back and forth, and it is a bit of a balance. We need to make sure we're pulling in the next generation of things that are important. But we're also protecting what's important to accustom, earthy, enterprise level and honestly stew. It's a constant given take and a constant balance. But, you know, there are a few things that we hold on principle one, it will always be upstream first to it will always serve our customers. In the enterprise. We do it on their behalf. So you know, the beauty of open source is everyone can play in the three million communities that exist in all of that innovation, the challenges everyone can play. So now how do you take that and run your business on it? That's where we come in. So this is why it's so important in this subscription, we constantly get that input from customers. >> Yeah, absolutely way. When we look at this face in the cloud world, I'm kind of used tto running on the latest and greatest on platform. Takes care of it. And as we you know, customer state, they're living in that hybrid and multi cloud world, and we need to bridge from the old. Okay, I'm running in minus two because I haven't finished testing it yet. I want to make sure I've got the latest security one of Les trois and care of the latest features. So I need to be ableto balance both of those, and it's challenging. >> It is challenging and to your point balancing, that is, you know, we had focused on relate because we really wanted to change the >> value. >> Um, but now moving forward, What we've heard from customers is it's a real business advantage for them to know when they're going to get a new release so they can time it with their hardware updates and their eyes. V update. So, as you mentioned as we head into rally, much more predictable life cycle will have minor releases every six months, major releases every three years. And, you know, as an engineer, you always say what I want to have this and I want to have this and and then sometimes it can divert your schedule. What we've heard from our customers is No, no, no. My schedule is really important. I need to plan. I need to predict. So now we put the schedule first. Going forward will put in everything we can into that version and prioritize what we can. But schedule became very important customers. So, to your point, predictable life cycle is important in relative, >> so huge impact in the business that way, you're giving them stability and certainty and predictability. Let's talk about the economic impact, if you will, because you did a fascinating study. I DC did it for you about this global economic impact that's being realised by rail. And the figures are there beyond impressive. They're staggering in terms of positive economic contributions. Wouldn't talk about that a little bit. >> Yeah, absolutely. You know, when I when I think about what we all want to do every day, we all want to have impact. It's not always easy to measure impact. And so when we worked with I D. C. And we asked them to go off and do this study, it really was about measuring and economic impact in the world, and I was even flabbergasted at the numbers. But if you look at all the applications and the software that run on rent had Enterprise Lennox, collectively, it will touch ten trillion dollars of business revenue this year. That's amazing. I think partly partly that speaks to several things. It speaks to the importance of Lennox and the market and where it stands with respect to being running core business and mission critical work made what dollars in sense touch, as well as where the new applications are being written. That's the importance of Lennox. I think it's also an astounding statement to say Lennox is built around an ecosystem. It's built by communities, and when you start to make that self sustaining, that's the kind of impact that it can have. But it's incredible. >> Yeah, I loved we had one of the customers we had already was DBS Bank, and they talked about the financial industry on DH. You know, security and innovation and helping to become a technology company themselves. And it's not sitting in a silo. And they had insourced rather than outsourced, and its partnership with Red Hat that that helps enable a lot of that transformation for, you know, company that people don't necessarily think of, you know, banking as you know, that driver of technology innovation, >> right? And when they looked at when they looked at for customers, for customers who use it just is, you say, because they kind of are now technology companies. How do they look at the value of rail? Roughly, it was about a fifty fifty split between savings and productivity, which feeds into savings and growth right, new revenue being driven. So it really ties back to clinics being Yes, what we run and how do we maximize efficiency for it? And yet how do we grow our business? So it's it's It's absolutely, I mean the use of the software that's being run on Red Hot enterprise Lennox will will reach economic benefits for those customers of a trillion dollars a year. That's huge. That's huge. So it's great. >> Yeah, So out of that ten trillion, I don't know if you could put it in the buckets if you can, but just or maybe the most impressive buckets, if you will, is it through efficiency is the truth time say, visit through better higher production? Uh, I mean, where are those big chunk gains being realised? >> So they provided a breakout of productivity and cost savings in the center and then revenue growth. And honestly, it's a fifty fifty split between savings and growth, and I think that's a huge statement, right about not only what can be done to do cost savings, because that starts to change the way you know everyone starts to think of. A commodity is no once I get into a commodity, I'm going to just save money, and I'm going to pull every cent out. But when its strategic, that's when you grow. And so to me, seeing a fifty percent split pea to and what I can save with it and what I can grow with it. The operating system is anything but a commodity, right? It's a complete strategic decision for a company. So it was great, >> right? So Stephanie would talk. Talk about economic impact. Something I always loved to talk about at this show is what's happening with jobs. Six year we've been doing this show in the early years. It was that Lennox operating model is just becoming pervasive. You look at what happened in the cloud, lookit what topping and software to find, whether it be networking or other piece of the environment. If you understand Lennox, chances are those operating models or what they're using in your that time to get up to speed on those new skills is going to be smaller, can talk about what you're seeing kind of thie ecosystem of jobs, not just, you know, red hat. You know the customers using it, but but even beyond. >> Yeah, so we see that. I mean that this study will show that but nine hundred thousand jobs are being driven by the rail ecosystem. That's massive. That's massive. And and while many of those companies air global, a lot of that is domestic. So I think that as we look at the skills group, that air moving forward and you look at even the operating system adoption and they're operating system adoption of Lennox and those skills customers right now are saying Lennox skills are hard to find. We're working to make it easier. But nine hundred thousand jobs, that's all. That's a lot of work being driven by this ecosystem alone. >> Well, you said jobs where you just talked about difficulty in some respects. What about educating the modern workforce or or an updated workforce? I mean, what kind of impact can you have on that? Or do you want tohave on that in terms of finding the right people in order to keep driving you forward? Because I think a lot of people share that concern is just coming up with that, that brain power, if you will, that that firepower to keep this innovative cycle to keep it rolling like it like it is. Where you going for that? How you doing that? >> You know, I think I think there's a couple. There's clearly things we can do in the product we added in something called Web Console. It's built off the upstream called cockpit, but it comes in and it is. You know, you can run your Lennox service now from your phone off of a Web portal, and it'Ll be shown in a demo tomorrow morning, which is is just the coolest toe Launch up your system Jets grade, and we worked very closely to make sure that the gooey and the feel and the way it was done with similar toe windows. Because many companies certainly have Windows installations, they have Lennox installations. The more we can make the most of the skills that customers have and be able to have that be cross compatible is really important, and clearly we have. The market has recognized the importance of developers not only as influencers but developed, but developing the next applications. What will come down the pipeline in? Let's face it, many customers, we're seeing all. I didn't know my developer was doing this, but they're coming in with real, you know, growth opportunities for the business. So we have really put in a play for developers. We have developer subscriptions that they can use. So a very focused effort with our team to reach out to the developers, make sure they have the tools they need, the capabilities they need. We've put in build a pod, man and scope eo right into the rail sub so that, you know, they can start to build their containers right from the OS. >> All right, So, Stephanie, we've talked a bunch about relate. And I know that Hunza session you're going to be in the keynote today. >> Yes. Give us >> a You know, a key nugget or two that, you know, it might be overlooked if if if you didn't shine a light on it, you know, love to get your take on what you're geeking out on when it comes to relate. >> Yeah, So I'm actually one of the things and and I know you'LL have a deep dive on this later. One of the things that I love about it is we have pulled in This relate launch is very much to me. A Portfolio launch Redhead is a portfolio company of enterprise software. It's not a product company. We're not just an OS company, although that's important. We're portfolio company. So what you'LL see in the relative announcement is really how it ties to the rest of the portfolio. Red Hat Enterprise Lennox Core OS As part of feeding into open shift, that's important. Having universal base image be the way we allow developers. We allow eyes ves to build containers that are ready to deliver that well experience on open shift Iran. Well, that's huge for us. Pulling in capabilities like management within sites, pulling that directly into every sub. Every rail. Six seven eight sub. Right to me, we've taken Rail eight is the first real step where we launch a product, but it's a portfolio launch. And, uh, and that's partly why it makes me so excited, right? I mean, being in relics like being being in all the products, that red hat, because where the foundation of it, that's what I hope people walk away feeling right that the OS is important and its core to the whole portfolio that red hat can deliver, >> but we look forward to the keynote tonight. Yes. You're gonna knock it out of the park as you always do. Thanks for joining us. And maybe if you have a little expertise on the side, give Brad Stevenson call Celtics coach. I think you could use a win right now. Every celtics on thin ice right now, but Red Hat very much Bruins once. All right? Okay. All right, >> I'll take it. >> It's a win, right, Stephanie? Thank you. Thanks, Joe. It's a pleasure to have you back with more for the redhead summit. You're watching the cue. >> How well

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

(energetic music) >> Live from Orlando Florida, it's theCUBE, covering Microsoft Ignite. Brought to you by Cohesity, and theCUBE's ecosystem partners. >> Welcome back everyone, to theCUBE's live coverage of Microsoft Ignite here in Orlando, Florida. I'm your host, Rebecca Knight, along with my cohost, Stu Miniman. We're joined by Lynn Lucas. She is the CMO of Cohesity. Thanks so much for coming on the program, Lynn. >> Oh, just so excited to be here with you guys and host you in the Cohesity booth for the first time at Microsoft Ignite. >> It's been a lot of fun. There's a lot of buzz around here, and it's fun to be right, to be your neighbor. Exactly. >> Great. >> So today, there's been a lot of news, some new exciting announcements of integrations with Microsoft. I wonder if you can walk our viewers a little bit through what Cohesity announced today. >> Absolutely. So, we have been partners with Microsoft for some time, and today, we announced extensions to our capabilities with Microsoft Azure and Office 365. So Cohesity now extends data protection and backup for Office 365, including granular recovery of mailboxes and granular search for discovery purposes. We also have extended our integration with the Azure data box, and we also are increasing our DR capabilities for our customers with Azure so we now have fail back from the Azure Cloud for disaster recovery purposes. So, just continuing to see tremendous growth, hundreds of Microsoft customers with Cohesity, and these new capabilities are going to expand the possibilities for them. >> Lynn, it's an interesting conversation these days 'cause, you know, in our research, and we've talked about this, data's at the center of everything, and the challenge for customers is data's everywhere. You look here at the Microsoft show, well, I've got all my traditional stuff, I've got my SaaS stuff, my PubliCloud stuff, now Edge with the data box things there. Microsoft plays across there, and it sounds like Cohesity is playing in all of these areas, too. >> Absolutely, and I thought, you know, Sacha did such a good job in the keynote yesterday of really laying out the imperative for digital transformation, data being at the heart of it, but also laying out one of the key challenges which he pointed out, which is the data silos. And, I think Cohesity is right smack in the center of that conversation because we've always been about consolidating secondary data silos. And, you know, our partnership with Microsoft, really, I think, reinforces what they've been talking about, which is also a hybrid strategy that the bulk of customers that we talk to see that their data is going to be on premise, it's going to be in the cloud, and increasingly, it's goinna at the Edge, and we span all of those locations to create this one operating environment so that things like the new open data initiative, I think, will be much easier for customers because they won't be wondering, well, is my data all in one place to be operated on? >> So, talk about the problem of the data silos, because, as you said, it's one of the biggest challenges that companies face today. They are data rich and yet, this data's here and this data's here. Can you describe a little bit about what kind of problems this is for companies, and why this matters? >> So, I think it's just something folks are starting to really get a handle on. As I talked to individual folks here at the show, you'd be surprised at how many aren't even really sure, maybe, how many islands they have, you know, so, even mapping where is all my data, I think, is a capability that many organizations are still getting their arms around. And the challenge, of course, is that in today's world, it's very expensive to move large data sets, and so you want to bring compute to the data, which is what a hyper-convergence in Cohesity is about. And, when you look at the imperatives at the board level, the CEO level, they increasingly see that data becomes really the true competitive advantage for most organizations, and yet, if they can't operate or bring compute to that data and do something with it, they're really at a handicap. We call, you know, some of the newer companies are kind of data-centric or data natives, the Air BNB's, the, maybe, Netflixes of the world, not everyone aspires to be them. As well, not everyone has the resources that those companies may have had or just stay short period of time. Most organizations have the benefit of years of data. We want to level the playing field and allow them to become competitive with their data by providing that single foundation. >> Yeah, Lynn, it's a big show here. They said thirty thousand people and a really diverse ecosystem. What really surprised me is the spectrum of customers that you have here. I mean, we know Microsoft has a long history in higher education. We spoke to one of your customers, Brown University, and of course, long history they have with Microsoft. What are some of the things that you're hearing from customers, maybe, what's different at this show than some of the other, cloud and kind of younger shows that we might go to. This show's been around about almost thirty years now, so. >> Yeah, you know, isn't it, you know, I hate to give our ages but, I think we've been doing this for a while now, right? And Microsoft has been part of the IT ecosystem in a major way, and it's great to see the vibrancy here and how they're talking about AI and ML and moving forward with it. You know, what strikes me here is that a lot of the organizations here are now really understanding the pragmatism of having a hybrid strategy of what makes sense in the cloud as well as what may continue to be on prem for them. I think we complement that well. I'm really excited, too, about the idea that we are going to be using machine learning to be doing a lot more that humans simply can't keep up with in terms of the data growth and then doing something productive with that. And I think that's a conversation that we're just tapping the surface of here at this show. >> Yeah, you've said something that really resonated with me. You know, we have people that have been in the industry a while and, I look at you, your founder, Mohit, and this isn't his first rodeo. He'd been looking at data back from a couple of generations of solutions, and people are very excited. Machine learning, as you said, we used to talk about automation and intelligence around this environment. Now, I lived in the storage industry for quite a while, and we've talked about it but it feels more real when I talk to the architects and the people building this stuff. They are just so excited about what we will be able to do today that we talked about a decade or so ago but now really can make reality for customers. >> No, absolutely, and I think, you know, we have our own investment in that. Helios, which we announced just last month, you know, provides that machine learning capability because what we hear from our customers is what they love is the ability to have simplicity because, let's face it, IT environments continue to grow in complexity. They're looking for ways to subtract that complexity so they can apply their talents to solving the primary mission, as I call it, of their organization, whether that be public sector or private sector, adoing that in a simpler way. You know, look, one of the great stories that one of our customers is talking about here is how Cohesity helped him with a standard thing that most IT organizations have, which is, we're going to do a power shut down and we've got to perform a DR failover, and this particular organization, University of Pennsylvania Annenberg, had a set of twelve websites which, the professors and the students rely on, and it was going to take them literally almost a month to try to move them, and they didn't have that kind of time, and with Cohesity, with our DR capabilities, he was able to do that literally with a few clicks, kept the community of professors and students happy, and didn't spend, more importantly, twenty days trying to rebuild websites for a standard IT event, right? That's the kind of real life story in terms of what IT gets back that they can invest in other more important focus areas for their business. >> Well, for their business and also, just for their lives giving people their time back, their weekends back, their time at night >> Weekends and nights, right? >> With their families, yeah. >> We all need that. >> Satya Nadella is such a proponent of an improving workplace productivity, even five percent, he says, can make this big difference. Can you talk a little bit about how you view that workplace productivity at Cohesity and your approach to giving people either time to concentrate on more value for their companies or just their lives? >> So, again, a super story that we have from another customer that is here at Microsoft, and is an Azure customer, and a Cohesity customer. HKS, one of the world's most respected architectural firms, designed AT&T Stadium, there's a new major pediatric hospital going in in Dubai. They operate in ninety-four countries with remote designers and architects, and because of their inefficient backup processes and archive processes, they literally were having their associates have to work weekends as well as losing time on their projects, and time is money, and they, you know, in some cases, are penalized if they don't make certain dates. And so, I think, these are really pragmatic examples. On average here, pulling some of the folks here, I've heard that they can get a day a week back, sometimes for their administrator who now doesn't have to do repetitive manual tasks anymore. >> One of the things we always love digging into is, you talk about people's jobs and some of the new careers that are happening. We talked to one guest earlier this week. He said, if you're a customer and you learn Azure as what you're doing, like, you're resume is gold. We've talked to, and the really early Edge, like site reliability engineering, he said, don't put SRE on your resume or every recruiter will be calling you up and you won't even be able to answer your phone. Cohesity, you're doing a bit of hiring also. Maybe you could talk about- >> We are! >> What are you seeing from customers and what are you looking for internally? >> We have tremendous good fortune, we grew three hundred percent in revenues year over year, we're hiring in our RTP offices, in our San Jose, in India, around the globe. You know, we look for the best and the brightest, a lot of engineering talent, marketing talent as well, really, across the board but, you know, I think to the point you just made for the IT folks that are here, looking forward as to how you are going to help your business with your data infrastructure or data flows throughout their organization is, to me, where some of the career movement is happening when you hear the talk about how important it is to so many aspects of the business. >> And what are the sort of challenges that you're having with hiring, or are you? I mean, you're a red hot company, but, are you finding it difficult to find the kind of skills, the kind of talent that you want? I mean, what is, what's the candidate pool like? >> You know, so, I think what's really interesting, we are red hot, we have a lot of applicants so, I'd say, in general, no, we're very blessed that way. I think, though, more businesses, including ours, are finding it's difficult to get, say, those data scientists, right? Some of these also front end or back end developers, you know, it's not just the technical companies that are recruiting for that anymore. It's not just the Cohesitys and the Microsofts that are looking for that talent, but it's now also the Netflixes or, you know, the eBays, et cetera, right? They are all looking for the type of talent that we are and so, in general, I think that this bodes well for young people or folks really anywhere in their career watching about, thinking about, where the talent needs are, and there's a lot of activity and interest in people with those kinds of skills. >> You know, let me just follow up on that. So, Cohesity is a Silicon Valley-based company but, as you mentioned, you've got an RTP location. We've seen quite a lot of Silicon Valley-based companies that are starting to do a lot more hiring outside 'cause it's, I'm going to be honest, really expensive to live in the valley these days. So, any commentary on that dynamic? >> Well, you know, I think you're in Boston, not the lowest cost market either in the country. >> True, it's true! >> Yeah, you know, I think with a lot of the technology that's out there, you know, people don't have to be co-located, and we certainly also look to develop and invest in other communities around the globe, so we're not looking solely in San Jose but also in RTP, we've got headquarters in Europe as well as, of course, in India. So we look for talent everywhere, and, my own personal team, you know, I have folks basically around the US as well as across parts of the globe because talent, in many cases, is what matters and where you are physically, you know, some of the great technology that's out there can help break down those barriers of time and distance. >> Finally, this conference, it's thirty thousand people from five thousand different companies around the world. What is going to be, I mean, we're only on day two, but, what's been your big take-away so far? What's the vibe you're getting here at Ignite? >> You know, the vibe has been one of energy, of excitement. I've talked to a lot of folks from around the globe. I've been actually, pretty amazed at some of the people from different countries around the globe that are here, which is fantastic to see that draw in, and I feel like there's a general sense of excitement that technology and what Microsoft's doing can help solve some of the bigger challenges that are here, in the world, and for their own businesses, and we really look forward to Cohesity helping them lay that great data infrastructure foundation, consolidate their silos and help them build a foundation for, you know, doing more with their data. >> Great. Lynn Lucas, thank you so much for coming on theCube. It was great, great talking to you. >> Thank you. >> I'm Rebecca Knight for Stu Miniman. We will have more from Microsoft Ignite and theCube's live coverage coming up in just a little bit. (electronic music)

>> Announcer: Live from Boston, Massachusetts it's the Cube, covering Red Hat Summit 2017. Brought to you by Red Hat. >> Welcome back to Boston, everybody. This is Red Hat Summit and this is the Cube, the leader in live tech coverage. I'm Dave Vellante, with my co-host, Stu Miniman and Matt Hicks is here. Is the Vice President of the software engineering for OpenShift and management, at Red Hat. Matt, welcome to the Cube. >> Thank you very much, good to be here. >> So this is where all the action is, is management and management of Clouds and inter Clouds and intra clouds, and it's the sort of next big battleground and you guys seem to be, doin really well there. Have a lot of momentum. >> It's been a good year. I think it's going to be a great year going forward, cause it, it adds a lot of customer value you know, they're seeing the drive to get applications across all these environments, and I think we've hit a good balance of what we can provide in OpenShift, or middle work portfolio management and you hear a lot of customers talking about it all through summits. >> Well we saw some pretty sick demos this morning. I got to ask ya, it was basically the reference model, was okay, got some web logic, and web sphere apps. You know, wink, wink. And you want to modernize them, and so you guys just showed like a five click modernization process. Is it really that simple? Are people really, really doing that? >> Yeah. We have customers that have moved thousands of applications like that, and they're all different sorts of applications. But going from, a proprietary EE stack to getting on something closer to EAP. To deploying it on OpenShift, that is our bread and butter. And it's great because EAP can take advantage of OpenShift, lets customers re-platform the apps that they have. And like we said on Key Net, it sort of frees up your time then to start building the fun stuff. Building the next apps, and you know we've had a ton of success with that. >> Matt so we had the opportunity to talk to some of the innovation award winners. What we haven't actually gotten to cover too much yet, is all the news. So there were a number of announcements in your space, wonder if you could help us, kind of unpack for our audience. >> Sure thing. So we, You will hear a lot about the, just the enterprise production adoption, of the new technologies. Because one of the things for us, it's easy to come up and talk about new technologies. We like actually bringing customers up that have taken that new technology to production. So that's one of the big themes you'll see here at Summit. We launched OpenShift IO. Which for us actually had great success of OpenShift as Hybrid Net platform, Prod. But as you heard from United Health Group, Optum this morning. They have 10,000 plus developers to roll that out to. And we knew we needed to close the gap on how to get empowered developers. So OpenShift IO was the new Cloud based services for that. We will also announce and talk about our container health index. So when you start really making the bed on containers, how do you know what's inside of em, how do you get a simple grading system to understand like A through F. How well maintained is this. As well as being able to look under the covers and understand what goes into that A or what goes into that F. >> And maybe explain that a little bit more, because I think about like, you know, okay, I remember like in the virtualization world, I understood that. So many of containers live a lot shorter life, so, is there, is this just a dashboard that rolls that up, because I want to know probably the general health of what's going on, because there's no way humans going to be able to keep track of it. And I mean, we're not all Google with two billion containers, being brought up and killed every week. But it tends to be, at least from what I've seen, tell me if you see otherwise, that most containers are still much shorter lived than OS's. Or you know, VM4B4. >> You know I think that's, it's one of the advantages. Is that they can be pretty volatile, like that effect. You know, we have capabilities, like in OpenShift, like Image Streams driven to say, "How do you respond and incorporate this?" At the end of the day, if you can grab a container that in our world has an A rating, no security vulnerabilities today, and in a week, you could have multiple critical CVE's, that have been open that now affect that container. And so the benefit of containers is, you can re-roll em, and you can consume that update, but if you don't know about it, and you stay on that old version, you carry the same risk as if you had an out of date OS, that was very static. >> Yeah, I think that answers back to, you know, Ben Gustav, that golden image. And they would pardon that, and they'd leave it that way for two to five years. Right. And we all laughed because my friends in the security space is like, that's the biggest problem we have, is you're not ready for that. So this is, understanding what you've got out there, being able to address that, remediate, you know, push out changes, or know like hey, if you haven't, this is what you're at risk of. >> Absolutely. And that creates for us, it creates this foundation of, both trust between our customers and Red Hat, with their consuming. But then also between Red Hat and our ISV's. Because most of out ISV's, they're not in the Linux business or they're building specialized middle work capabilities on our products. So it's equally important for them to understand that if they're on an out of date version of RHEL, and they've embedded that into their container, that can cause as many problems, and they need to apply the updates in their stack as our customers. >> But that kind of gets to the business model a little bit. And you're engineering, but so I have an engineering question. But, I think most people in our audience understands that you know, Red Hat is a company built on, open source. And you know people say, "Why buy the cows, the milk is free." Well you've perfected that model, you know, 2.4 billion dollars in revenue. Three billion dollars in bookings. So you're obviously doing something right, although, not many have been able to, actually nobody's been able to create a business model like this. My question is from an engineering stand point. When, you're built on open source, and you're not, driven toward a proprietary mindset of okay, let's lock them in to the next REV. How does that change, sort of the engineering mindset, the culture and the protocol going forward. >> I love it. I have been in Red Hat 11 plus years, and everyday you're not tied into, dropping a new feature and pushing customers to that new version for revenue. And so it changes our mindset of, how do we provide value across the entire range of supported offerings that we have. In the case of RHEL, you could stay on some versions of RHEL for quite a while, and we provide value there in keeping that thing working. But at the same point, we're constantly moving this along, adding new innovation. We're able to provide value there. And it, as an engineer, it is refreshing. Sorry. >> I'll chat for a minute. So you, you know, a lot of companies that are 20 plus years old, are criticized. Oh, they don't, innovate. You hear that all the time. They do incremental R and D. And it's true. They may spend a lot on R and D, but R and D is like a feature here, or another feature there. Design, to just keep putting the crumbs out. And what you're saying is, incremental is not, really fundamental part of your plan. >> Absolutely. We can, you know, we want to provide the same value for our customer if they're on RHEL six, or they're looking towards the next major version of RHEL. And they can move anywhere on that life cycle, and that's what they get as part of their subscription. Same thing with OpenShift. And that choice of customers, of being able to take a product, consume anywhere on the life cycle of it, it's good for customers and it's nice for us, because they're just different ways that you innovate. Of driving like, the next new great feature. Then you have other customers, that you are going to provide value through stability. >> So, when you, we go to a lot of these events, as you can imagine. And when you talk to the traditional, you know, software players, you get this massive dose, of well we do that too. We do containers, and, you know, we do Cloud, and we do Hybrid, and. So help us understand, the difference between how they do it and how you do Cloud. >> I think for us, if we picked containers, you know, I was talking to a group of customers this morning of every upstream technology we pick, that we're going to pull together into our products, We don't just pick em up and re-package em and give em to a customer, because we're a support business. So if it breaks at 3 a.m and I have to re-roll a kernel to be able to fix it, I have to understand every piece in the stack. So we start with, we're going to drive a contributor position in the technologies. We pick our bets and we go all in on those areas. So Cooper Netties will carry you know with Google as you know a great technical partner, we run the majority of the SIGs with them. We have a top contributor position, and that we invest really heavily in understanding that technology inside and out. And I think that's what shows in the customer value of we could certainly take stuff, repackage it and ship it. It doesn't carry the same value as being able to work with a customer, drive new features into the product and keep them running in PROD. >> Matt so you mentioned Cooper Netties. And I was actually a little surprised this morning in the key note, I didn't hear Cooper Netties. And I think the reason was, because I heard a lot about OpenShift, and that's just your mechanism for rolling that out there. I'm assuming your customers kind of understand that maybe you could help, you know, explain that a little bit more. >> Absolutely. And so, OpenShift is our enterprise, distribution Cooper Netties is, and that's sort of the business we're in. We have Linux and RHEL is our enterprise distribution of that. We now have Cooper Netties, this really popular community. OpenShift is our distribution of that, and for our customers. >> I was just saying, I guess you couldn't call it RECK. Which, Red Hat Enterprise, Cooper Nettie, probably wouldn't be a good idea. >> The world changes too fast. You pick names a long time ago. But it's a nice motto, because we know it. It's what we've done for a long time, and it builds on everything we've done with RHEL and it connects our middleware portfolio as well. So I've been on the op side, and I've been on the development side, and I love seeing us address stuff right in the gap there for customers. And I think that's why we're seeing so much customer traction. It's a sweet spot for where they've had pain, and it adds a lot of value for em. >> Could you speak a little bit of your customers. Where are they with containers, Cooper Netties, that whole adoption. >> A lot of them in production. Which is nice. It's nice from a support business, because if you have excitement, or if you have early traction, we're a subscription business, so we want to make sure you know, the more customers use it, the more you know, they're going to grow and actually utilize it. And when you hear customers like UHG saying, the 4000 projects built on OpenShift there. Those are, they have built up significant deployments on that, and Barkways, and I know we have a whole list of em that are here today. And so I like that fact of, it's not just a cool technology. Customers have taken all the way into production. And they're being really successful with it. which as an engineer you love. You want to see people using your products and solving problems with them. >> Absolutely. Matt you talked about the ethos of commitment and committers, to open source projects. One of the challenges for a company like yours, is you got to support a lot of different projects. So though, you saying, you make your bets. We've talked a lot about okay, will there ever be another Red Hat that emerges in the big data space. You see Cloud air, and Hortonworks, and they're always sort of lookin at those guys, as possibility. But they always sight the challenge of having to support so many projects. How do you manage that and did you, you've been with Red Hat for a while, did you hit a tipping point, at some point? Cause I mean certainly you have software margin, 80, 90% you know margins. You got a great operating you know margins. So you've crossed that chasm so to speak to pick a bromide, but, others have had such a challenge. Is it because they have to support those projects and it just takes a long time? And you guys baked over 20 years. I wonder if you can give us some insight there. >> You know, I think it's as much art as it is science, I would love to say. Like this is a you know, cold formula that we apply but, we have a good gut feeling for, if you're going to back a technology, or an upstream project, you want to make sure that it's going to expand beyond your own investment, and we've certainly made a lot of wrong bets that the technology doesn't evolve. But you've got to be able to change, and when we see some of the early indicators like in Cooper Netties. Those are the ones where, we like how it's governed, we like how it's structured, we like the other players that are in there, and that's just been one of the unique aspect of Red Hat, is we pick pretty well. >> So Matt, I'm wondering if you're willing to comment, we were at Dockercon a couple of weeks ago, they've done a shift to, how they're managing kind of, but the Moby project to do the open source stuff, what's your take on that? What's Red Hat's positioning there? It's been an interesting dynamic between Docker and Red Hat to watch the last couple of years. >> Yeah you know, I think Moby for us, it's one of, it's about 16 hundred different upstream projects that we pull in across our portfolios. And so, we're certainly watching it, and we're seeing them evolve. We've been involved for the technology for a while now, but we don't necessarily know where that's going to go right now. But we certainly look a it like we do, you know the whole, breath of open source projects we pull in. >> What else is on your horizon? What's exciting you these days? >> You know, I think just seeing the reality of Hybrid Cloud becoming, it's becoming real for our customers. Where they're able, you know, you probably saw some of the Amazon announcements today where, you're able to take services, that might be in the public Cloud and now pull them on Premise. You heard customers talk about taking OpenShift and running that all the way out to the public Cloud. And we love that aspect, because you know, being able to use infrastructure to power applications, I think it's going to change IT and, then all the pieces that emanate around that, it's exciting for ISV's, it's exciting you know, around our management products from Ansible to Cloud forms. It's just a lot that we can do there. >> On the management products, you know, what Dave said, one of the Bromides out there, when I became an analyst seven years ago, it's like we can say, well it's security and management are the biggest problems we have. I feel like I can go to that well anytime I need to do. How are we doing in industry and management. Obviously you've got your position, but you know, as the surface area of the landscape is just expanding exponentially, every. You talked about how many customers are multi Cloud today. So you know, we know there's not a single thing that can do everything but, how are we doing as an industry, in Red Hot specifically? >> I think form Red hat's position, we've had a lot of success with Ansible. Just becoming a core automation technology, cause I think the one common thread is, you have so many choices, you have so many pieces, you have to start automating them. How we did IT 15 years ago, just will not. It won't scale anymore. I think building up from that stack. How you move to policy based management, that's earlier in the space. But there is a ton of capabilities and we've seen customers using, you know from our perspective, it's combining Cloud forms on orchestration, and satellite for content, Ansible for automation. Because I describe it, so I have the operation teams that run our OpenShift online environments. That's a, a relatively small group of people that manages millions of applications. And they change faster than a human could push a button. And so, as customers get into that world, you know we're certainly not in the Google world yet, but when you get that 4A it changes how you have to manage it. It has to become automated, it has to become policy driven, and then it's fun. I like it. Like doing ops in the 90s versus how you do it today. It is refreshing as an operator to just have these tools are your fingertips. >> High frequency application development. Matt thanks very >> It really is! >> Much for coming on the Cube. It's great to see you, and congratulations and good luck going forward. >> Fantastic, thanks S. >> You're welcome. Alright keep it right there everybody. Stu and I will be right back with our next guest. This is Cube, we're live from Red Hat Summit in Boston. We'll be right back. (upbeat music)