>> Narrator: From around the globe, it's theCUBE. With digital coverage of AWS re:Invent 2020. Sponsored by intel, AWS, and our community partners. >> Welcome back to the CUBE's coverage of the AWS re:Invent 2020. Three weeks we're here, covering re:Invent. It's virtual. We're not in person. Normally we are on the floor. Instructing *signal from the noise, but we're virtual. This is theCUBE Virtual. We are theCUBE Virtual. I'm John Furrier, your host. Got a great interview here today. Satish Balakrishnan, Vice president of hosted platforms for Red Hat joining us. Satish, great to see you. Thanks for coming on. >> Thank you, John. Great to see you again. >> I wish we were in person, but we're remote because of the pandemic. But it's going to be a lot of action going on, a lot of content. Red Hat's relationship with AWS, and this is a really big story this year, at many levels. One is your relationship with Red Hat, but also the world's evolved. Clearly hybrid cloud's in play. Now you got multiple environments with the edge and other clouds around the corner. This is a huge deal. Hybrids validated multiple environments, including the edge. This is big. On premise in the cloud. What's your new update for your relationship? >> Absolutely, John, yeah. this is so you know, if anything this year has accelerated digital transformation, right The joke that COVID-19 is the biggest digital accelerator, digital transformation accelerator is no joke. I think going back to our relationship with AWS, as you rightly pointed out, we have a very storied and long relationship with AWS, we've been with AWS partnering with AWS since 2007, when we offered the Red Hat Enterprise Linux on AWS since then, you know, we've made a lot of strides, but not in the middle of our products that are layered on AWS, as well as back in 2015, we offered OpenShift dedicated Red Hat OpenShift dedicated, which is our managed offering on AWS, you know, and since then we made a bunch of announcements right around the service broker, and then you know, the operators operator hub, and the operators that AWS has for services to be accessed from Kubernetes. As well as you know, the new exciting joint service that we announced. So you know, by AWS and Red Hat, increasingly, right, our leaders in public cloud and hybrid cloud and are approached by IT decision makers who are looking for guidance or on changing requirements, and they know how they should be doing application development in a very containerized and hybrid cloud world. So you know, excited to be here. And and this is a great event, you know, three week event, but you know, usually we were in Las Vegas, but you know, this week, this year, we will do it on workshop. But you know, nevertheless, the same excitement. And you know, I'm sure there's going to be same set of announcements that are going to come out of this event as well. >> Yeah, we'll keep track of it. Because it's digital. I think it's going to be a whole another user experience personally on the Discovery sites Learning Conference. But that's great stuff. I want to dig into the news, cause I think the relevant story here that you just talked about, I want to dig into the announcement, the new offering that you have with AWS, it's a joint offering, I believe, can you take a minute to explain what was and what's discussed? Cause you guys announced some stuff in May. Now you have OpenShift services. Is it on AWS? Can you take a minute to explain the news here? >> Absolutely John yeah. So I think we had really big announcement in May, you know, the first joint offering with AWS and it is Red Hat open shift service on AWS, it's a joint service with Red Hat and AWS, we're very excited to partner with them, and you know, be on the AWS console. And you know, it's great to be working with AWS engineering team, we've been making a lot of really good strides, it just amplify, as you know, our managed services story. So we are very excited to have that new offering that's going to be completely integrated with AWS console transacted through you know AWS marketplace, but you know, customers will get all the benefit of AWS service, like you know, how just launch it off the console, basically get, you know there and be part of the enterprise discount program and you we're very really excited and you know, that kind of interest has been really, really amazing. So we just announced that, you know, it's in preview we have a lot of customers already in preview, and we have a long list of customers that are waiting to get on this program. So but this offering, right, we have three ways in which you can consume OpenShift on AWS. One is, as I mentioned previously OpenShift dedicated on AWS, which we've had since 2015. Then we have OpenShift container platform, which is our previous self managed offering. And that's been available on AWS, also since 2015. And then, of course, this new service that are that OpenShift servers on AWS. So there's multiple ways in which customers can consume AWS and leverage the power of both OpenShift and AWS. And what I want to do here as well, right, is to take a moment to explain, you know what Red Hat's been doing in managed services, because then it's not very natural for somebody to say, oh, what's the Red Hat doing in managed services? You know, Red Hat believes in choice, right. We are all about try for that it's infrastructure footprint that's public cloud on-prem. It's managed or self managed, that's also tries to be offered to customers. And we've been doing managed services since 2011. That's kind of like a puzzling statement, people will be like, what? And yeah, it is true that we've been doing this since 2011. And in fact, we are one of the, you know, the earliest providers of managed Kubernetes. Since 2015. Right, I think there's only one other provider other than us, who has been doing managed Kubernetes, since then, which is kind of really a testament to the engineering work that Red Hat's been doing in Kubernetes. And, you know, with all that experience, and all the work that we've done upstream and building Kubernetes and making Kubernetes, really the you know, the hybrid cloud platform for the entire IT industry, we are excited to bring this joint offering. So we can bring all the engineering and the management strengths, as well as combined with the AWS infrastructure, and you know and other AWS teams, to bring this offering, because this is really going to help our customers as they move to the cloud. >> That's great insight, thanks for explaining that managed service, cause I was going to ask that question, but you hit it already. But I want to just follow up on that. Can you just do a deeper dive on the offering specifically, on what the customer benefits are here from having this managed service? Because again, you said, You Red Hats get multiple choice consumption vehicles here? What's the benefits? what's under the what's the deep dive? >> Absolutely, absolutely is a really, really good question. right as I mentioned, first thing is choice. like we start with choice customers, if they want, self managed, and they can always get that anywhere in any infrastructure footprint. If they're going to the cloud, most customers tend to think that you know, I'm going to the cloud because I want to consume everything as a service. And that's when all of these services come into play. But before we even get to the customer benefits, there's a lot of advantages to our software product as well. But as a managed service, we are actually customer zero. So we go through this entire iteration, right. And you probably everybody's familiar with, how we take open source projects, and we pull them into enterprise product. But we take it a second step, after we make it an enterprise product, we actually ship it to our multi tenant software system, which is called OpenShift Online, which is publicly available to millions of customers that manage exports on the public Internet, and then all the security challenges that we have to face through and fix, help solidify the product. And then we moved on to our single tenant OpenShift dedicated or you know soon to be the Red Hat OpenShift service on AWS but, you know, pretty much all of Red Hat's mission critical applications, like quedado is a service that's serving like a billion containers, billion containers a month. So that scale is already been felt by the newly shipped product, so that you know, any challenges we have at scale, any challenges, we have security, any box that we have we fix before we really make the product available to all our customers. So that's kind of a really big benefit to just that software in general, with us being a provider of the software. The second thing is, you know, since we are actually now managing customers clusters, we exactly know, you know, when our customers are getting stock, which parts of the stock need to improve. So there's a really good product gap anticipation. So you know, as much as you know, we want still really engage with customers, and we continue to engage with customers, but we can also see the telemetry and the metrics and figure out, you know, what challenges our customers' facing. And how can we improve. Other thing that, you know, helps us with this whole thing is, since we are operators now, and all our customers are really operators of software, it gives us better insights into what the user experience should be, and in how we can do things better. So there's a whole lot of benefits that Red Hat gets out of just being a managed service provider. Because you know, drinking our own champagne really helps us you know, polish the champagne and make it really better for all our customers that are consuming. >> I always love the champagne better than dog food because champagne more taste better. Great, great, great insight. Final question. We only have a couple minutes left, only two minutes left. So take the time to explain the big customer macro trend, which is the on premise to cloud relationship. We know that's happening. It's an operating model on both sides. That's clear as it is in the industry. Everyone knows that. But the managed services piece. So what drives an organization and transition from an on-prem Red Hat cloud to a managed service at Amazon? >> Is a really good question. It does many things. And it really starts with the IT and technology strategy. The customer has, you know, it could be like a digital transformation push from the CEO. It could be a cloud native development from the CPO or it could just be a containerization or cost optimization. So you have to really figure out you know, which one of this and it could be multiple and many customers, it could be all four of them and many customers that's driving the move to the cloud and driving the move to containerization with OpenShift. And also customers are expanding into new businesses, they got to be more agile, they got to basically protect the stuff. Because you know, there are a lot of competitors, you know, that, and b&b and other analogies, you know, how they take on a big hotel chains, it's kind of, you know, customers have to be agile IT is, you know, very strategic in these days, you know, given how everything is digital, and as I pointed out, it has coverts really like the number one digital transformation(mumbles). So, for example, you know, we have BMW is a great customer of ours that uses OpenShift, for all the connected car infrastructure. So they run it out of, you know, their data centers, and, you know, they suddenly want to go to a new geo syn, in Asia, you know, they may not have the speed to go build a data center and do things, so they'll just move to the cloud very easily. And from all our strategy, you know, I think the world is hybrid, I know there's going to be a that single cloud, multi cloud on-pram, it's going to be multiple things that customers have. So they have to really start thinking about what are the compliance requirements? What is the data regulations that they need to comply to? Is that a lift and shift out(mumbles) gistic things? So they need to do cloud native development, as well as containerization to get the speed out of moving to the cloud. And then how are they measuring availability? You know, are they close to the customer? You know, what is the metrics that they have for, you know, speed to the customer, as well, as you know, what databases are they using? So we have a lot of experience with this. Because, you know, this is something that, you know, we've been advocating, you know, for at least eight years now, the open hybrid cloud, a lot of experience with open innovation labs, which is our way of telling customers, it's not just about the technology, but also about how you change processes and how you change other things with people aspects of it, as well as continued adoption programs and a bunch of other programs that Red Hat has been building to help customers with this transformation. >> Yeah, as a speed game. One of the big themes of all my interviews this week, a couple weeks here at reInvent has been speed. And BMW, what a great client. Yeah, shifting into high gear with BMW with OpenShift, you know, little slogan there, you know, free free attribute. >> Thank you, John, >> Shifting the idea, you know, OpenShift. Congratulations, and great announcement. I love the direction always been a big fan of OpenShift. I think with Kubernetes, a couple years ago, when that kind of came together, you saw everything kind of just snap into place with you guys. So congratulations Satish. Final question. What is the top story that people should take away from you this year? Here at reInvent? What's the number one message that you'd like to share real quick? >> Yeah, I think number one is, you know, we have a Joint Service coming soon with AWS, it is one of it's kind work for us. And for AWS, it's the first time that we are partnering with them at such a deep level. So this is going to really help accelerate our customers' move to the cloud, right to the AWS cloud, and leverage all of AWS services very natively like they would if they were using another container service that's coming out of AWS and it's like a joint service. I'm really, really excited about the service because, you know, we've just seen that interest has been exploding and, you know, we look forward to continuing our collaboration with AWS and working together and you know, helping our customers, you know, move to the cloud as well as cloud native development, containerization and digital transformation in general. >> Congratulations, OpenShift on AWS. big story here, >> I was on AWS. I want to make sure that you know we comply with the brand >> OpenShifts on open shift service, on AWS >> on AWS is a pretty big thing. >> Yeah, and ecosys everyone knows that's a super high distinction on AWS has a certain the highest form of compliment, they have join engineering everything else going on. Congratulations thanks for coming on. >> Thank you John. Great talking to you. >> It's theCUBE virtual coverage we got theCUBE virtual covering reInvent three weeks we got a lot of content, wall to wall coverage, cube virtualization. We have multiple cubes out there with streaming videos, we're doing a lot of similar live all kinds of action. Thanks for watching theCUBE (upbeat music)