a question about your relationship with hardware vendors the trend towards applications being purpose built into hardware can you speak specifically to your vision and relationship with hardware manufacturers with Oracle doing the Sun deal HP's relationship with Microsoft is there any plans to build the applications into the hardware for faster better recovery etc let me address this also the previous question about about Oracle I think the way we fundamentally look at the world is that the world is a heterogeneous world the customer landscapes are never homogeneous they are always state of change they are always in a state of evolution so the way we see on the work done with our hardware partners for example is to get rid of the layers and in fact not to crunch them and then buy hardware and then put all the layers inside the hardware if you look at what we are doing with our in memory technology for example we believe that we can get rid of several layers of the cockfest i can bring an incredible efficiency to our customers not to mention real time to our customer so we can make the gap between transaction and analytical applications go away we can make the gap between the warehouses and the transaction systems go away so layers of the stack will start to fall as you work with partners but in order to do that it is necessary to work with an ecosystem of partners which is what is announced you know all this innovation that we do comes together with Intel which makes the processors with memory vendors like Samsung as well as the companies like HP and IBM then make the hardware around that so the layers of the stack go away when you work together collaboratively with any customer partners not when you just buy on the acquisitions so you're currently integrating in with which manufacturers we are working with on the process of side with Intel good we are optimizing our in memory technologies with engines for example we are working with memory vendors all kinds of DRAM vendors we are working with companies like EMC we are working with VMware to make the software virtualizer fill across on dimension on demand on premise on device VMware can help us make it elastic across these deployments so you have to have it in your vino and single me up on the ecosystem name to work together with partners and we believe that it is a better way to deliver value to our temple on when you hear the customers they don't want them to lock it so as shall write we said these are heterogeneous environments they don't buy a stack they're buying an idea they're buying a business outcome something that can change the way they run their company and to have an open independent business software company that can work with any and all partners to give the customer what they want which is the best business idea at the lowest possible cost and the fastest time to value is the model that we believe in the 20th century model that Oracle is chosen to replicate is one of the past and we think it will be one of the past and history will play it out that way James Taylor decision management question about analytics

>> From the SiliconANGLE media office in Boston, Massachusetts, it's theCUBE. Now, here's your host, Dave Vellante. >> Hi, everybody, welcome to this CUBE Insights, powered by ETR. In this episode of the Breaking Analysis, we're going to take a look at SAP. Thursday, October 10th, SAP surprised the Street, they announced early, they preannounced their earnings, and at the same time they timed that with the announcement that CEO, longtime CEO Bill McDermot was stepping down, his contract was up for renewal in January of 2020, and he decided that he's going to turn it over to a co-CEO structure that I'll talk about a little bit, so that was big news. Spending on SAP has been holding pretty steady over the last several quarters, I'll share some ETR data with you. It's been quite a run by Bill McDermott, he started out as CEO, I think it was February of 2010, as co-CEO with Jim Hagemann Snabe, and then two years later was named the sole CEO and I'll share some data on that in terms of the performance of SAP during his tenure. But the bottom line is, we expect, based on the spending data, some continued momentum from SAP, I'll show you some data that shows a little bit of a mix in the numbers, ETR basically just dropped a report on Friday that I'll share with you as well, but the bottom line is we see some major challenges ahead for SAP, specifically from a technology integration point that I'll talk to you, and it really is not showing up yet in the spending numbers, but it's something that we're keeping an eye on, and it's something that we want to share with you, our community. So Alex, if you wouldn't mind bringing up the first slide, here. I'll make some key points, really around SAP's Q3 earnings and the CEO news. So as they say, they pre-announced earnings on October 10th after the close, 10% revenue growth, which is a nice, healthy double digit revenue growth, cloud was up considerably, Bill McDermott made the big emphasis when he was doing the rounds on how their cloud revenue is growing faster than competitors, 33%, but definitely from a smaller base, but their license revenue, their traditional on-prem businesses continues to be under pressure and decline, it's got a, SAP is a strong services business, services and maintenance business, and they're up to 12,000 customers with HANA, I'll make some comments on HANA in a little bit later. This may have some implications for Europe, we've been saying that Europe is over-banked, that banking is soft based on the ETR spending data, so this may be a little bit of a bright spot for Europe. Of course SAP with its ERP business of strong manufacturing, anybody who has a supply chain, so this may be a good sign for Europe, that's something that we're watching. And then, say McDermott steps down, we're going back to the dual CEO structure. Jennifer Morgan, who headed the cloud business, is a longtime SAP employee, and she essentially is going to be taking that role of the customer-facing CEO. Christian Kline is really, has history as product development and HANA, he did a stint in finance at SuccessFactors, and is really an operations guru, so back to that dual CEO role that you saw with Snabe and McDermott, where McDermott was really the front-facing, sales-facing individual, and Snabe was the product person. So that's kind of an interesting structure, we see that, we saw that in Oracle before Mark Hurd stepped down with Safra Catz as co-CEO, so it's not a unique structure, although it's not, certainly not common in the industry. The next thought I want to share with you is one that you may have seen before, every time that ETR does a survey, and this is data, fresh data from the October survey, every time they do a survey, they take spending intentions and they ask folks, "Are you spending more, "are you spending less, are you spending the same, "are you adding to the platform, "are you subtracting from the platform?" So they essentially ignore the, for this net score that I'm showing you now, they ignore the people that aren't spending, that are staying the same, flat, and they take the more minus the less, subtract amount, you get a net score, and the net score here is 27%. This is not uncommon for, from the data that I've seen out of ETR for a large company established legacy provider like SAP. Net score 27% is not great, but it's a holding steady score, it's not in the negatives, it's not in the red zone, and so you can see here that 32% of the survey respondents were saying they're going to spend more, 54% basically flat, but only a smaller number, 6%, saying they're going to spend less, so it's reasonable for SAP, but if you look at the trendline, Alex, bring up the next slide, look at the spending trendline from the survey for SAP since the July 16 survey, they do this every quarter, and so the blue is the net score, that green minus the red that I've talked about in the past, and you can see that sort of steady decline, but this is not a disaster, what it is, is it's a sign of spending momentum relative to previous years or previous quarters, and you can see the yellow line is also declining, that's market share, what that means is market share in terms of spend relative to other initiatives, so the categories that SAP participates in, enterprise software, et cetera, spending on SAP relative to other sectors has been in decline. If you look at, Alex, if you bring up the next slide, look at the SaaS business, you'll see that it's a much happier story. SAP's made a number of acquisitions that I'll talk about in a moment, of cloud/SaaS players, so you can see their SaaS position has been holding firm, ETR cites Concur, SuccessFactors, Ariba, Callidus, they kind of remaining stable versus a year ago, and you can see the market share's kind of ticking up, so pretty solid from the new growth, that high growth area, and that's something that the Street really pays very close attention to. The next data point that I want to show you on the next slide is actually quite fascinating, so SAP beat its forecasts, so it didn't beat and raise expectations for the rest of the year, but so what this shows is ETR's regression analysis, what the quants at ETR do, is they crunch the numbers, and they compare them to the consensus on Wall Street, and they actually forecast higher or lower, where they think that earnings are going to come in based on their spending data, so you can see here that green, you see that little RPM meter, they're in the green, that's where you want to be, 359 basis points ahead of the median forecast, so they're saying, so the ETR second half spending 10.4% versus consensus of 6.8%, very positive sign. I think it's no coincidence that SAP records B for the quarter, so based on that data collected in that October survey, it looks like there's some momentum for SAP. Now the next slide I want to show you is the stock chart, this is kind of the scorecard, if you will, for Bill McDermott's tenure, and you can see, so I went back to 2010, as I say, he started in 2010, as a co-CEO with Jim Snabe, and then look at the performance here, I mean it's been pretty solid. And so you see today it's up around 10%, as I say, they announced the earnings beat, they announced their revenue beat, and they basically affirmed expectations, maybe raised them a little bit going forward. The reason why the stock is up is the beat, but also McDermott has put in place sort of an efficiency improvement and a restructuring. They've made a promise to improve operating margins by 1% a year over the next five years. They've made a promise to get cloud gross margins to 75% by 2023. They've done a restructuring, I think it affects around 4400 people, and they're hiring data scientists and AI experts and machine learning people, and RPA folks, they acquired an RPA company a while ago, and kind of just threw that in 'cause it's such a hot space. Software coders all around the world, China, US, Europe, all over the place. And so that restructuring, the Street loves when you restructure, you cut the dead wood, so to speak. With all due respect to the folks that might be affected by this, but the Street loves that. So you're seeing the combination of the beat, and the uptick or the efficiencies taking place in the quarter, and they timed that with the McDermott announcement because they wanted to, I'm sure, time it with some positive news, so you can see the stocks up today, so that's kind of a scorecard on Bill McDermott, I have to say, pretty impressive performance over the last 10 years, or nearly 10 years. But here's the thing, we see some major challenges coming forth with SAP, and I want to talk about that a little bit. Before I do, Alex, if you would play the video from Bill McDermott answering a question that John Furrier asked several years ago, and then we'll come back and talk about it. >> I had a meeting with the CEO yesterday, and this is a very common conversation. He grew his business by acquisition, and now he's got a federation of a whole bunch of companies, and he feels like a holding company. What he wants to do is consolidate these businesses onto a common platform. He won't do it overnight because you can't shut down businesses, but the vision over the next few years is consolidate everything onto one common SAP platform, and take all the databases out and standardize everything on HANA. >> Now here's what's ironic. The core success of SAP historically has been what? It's been that they have a single, unified system, the general ledger and all the financial data and all the supply chain data, all of that is in the same place, accessible, single version of the truth if you will. What's ironic is SAP's made 31 acquisitions in the last nearly 10 years under the tenure of Bill McDermott. So in a way, SAP is becoming a tech holding company, kind of picking up on some of the things that Bill McDermott said in his little clip there. In our view, SAP's big technical challenge is to get all this stuff working together. As you all know, it's nontrivial when you make a lot of acquisitions, billions and billions of dollars of acquisitions, which by the way, they promised to stop that torrid pace of multibillion dollar acquisitions, very difficult to pull those together. Let's look at some of those acquisitions that they've made, Ariba, Concur, SuccessFactors, SuccessFactors is interesting because SuccessFactors was kind of talent management, you had kind of core HR from SAP and it's kind of been a challenge to put those things together. Think about the legacy R3 and R4 and all the on-prem manufacturing stuff that SAP still runs, that customers still run. Acquisition of Sybase, Callidus, so... SAP's answer to all this integration is to put everything in memory in HANA. So the motivation for HANA, however, in many ways was to compete more effectively with Oracle and not have to rely so much on the Oracle database and get people off Oracle. But here's the thing that SAP didn't do that Oracle did do, and I think, my opinion, Oracle got right. Oracle did Fusion, they bit the bullet and did Oracle Fusion, it took the better part of a decade, it actually took more than a decade, but every time Oracle buys a company, and every SAS application that it jams into the Red Stack, runs Fusion middleware, and runs the Oracle database. So, it's not the case with HANA. So it's kind of an integration nightmare, it's very very complex what SAP has got handed to the new regime. I think this is a daunting task, and I think this might be in part why the timing of Bill McDermott stepping down, I mean he sees that this is going to be a heavy lift, it's going to need more of a product-focused leadership team, that's why I think it's smart that SAP has maybe gone back to that two-headed monster of two CEOs, one that's customer-facing and one that's more product-oriented and R&D-oriented because they have a major integration challenge ahead of them. So as I say, SAP has promised to stop making these multibillion dollar acquisitions, they got to get to work on integration, which is going to be a major portion of the task in the next five years, so spending data from ETR shows some positive momentum relative to consensus, now remember, the Street works in a quarter, so they're on a quarterly shot clock, so if the Street says, "You're going to do this for earnings," and they do this, well, that means higher EPS, so the stock's going to go up. If you do this and you come in below, that means the stock's going to go down, so these are very tactical kinds of things. We're talking here about more longer terms, this could be a five to seven year integration challenge if not more, remember, it took Oracle 10 years plus in terms of integrating Fusion, so that's something that you need to keep an eye on, especially if you're a customer and you're getting pitched all these different services and cloud services, just got to think about the architecture for integration. Okay, this is Dave Vellante with CUBE Insights powered by ETR, thanks for watching, we'll see you next time. (techno music)

>> Announcer: Live, from Copenhagen, Denmark, it's theCUBE. Covering KubeCon and CloudNativeCon Europe 2018. Brought to you by the Cloud Native Computing Foundation and its Ecosystem Partners. >> Well everyone, welcome back to the live coverage of theCUBE here in Copenhagen, Denmark for KubeCon, Kubernetes Con 2018, part of the CNCF, Cloud Native Compute Foundation, part of the Linux Foundation. I'm John Furrier with Lauren Cooney, the founder of Spark Labs, breaking down day two, wrapping up our coverage of KubeCon and all the success that we've seen with Kubernetes, I thought it would be really appropriate to bring on the cofounder of KubeCon originally, Joseph Jacks, known as JJ in the industry, a good friend of theCUBE and part of the early formation of what is now Cloud Native. We were all riffing on that at the time. welcome back to theCUBE, great to see you. >> Thank you for having me John. >> So, for the story, for the folks out there, you know Cloud Native was really seen by the devops community, and infrastructure code was no secret to the insiders in the timeframes from 2010 through 2015, 16 timeframe, but really it was an open stack summit. A lot of people were kind of like, hey, you know, Google's got Kubernetes, they're going to open it up and this could be a real game changer, container, Docker was flying off the shelves. So we just kind of saw, right, and you were there and we were talking so there was a group of us. You were one of them. And you founded KubeCon, and bolted into the, at that time, the satellite Linux Foundation events, and then you pass it off as a good community citizen to the CNCF, so I wanted to just make sure that people knew that. What a great success. What's your impression? I mean, are you blown away? >> I am definitely blown away. I mean I think the size and scale of the European audience is remarkable. We had something like slightly less than half this in Austin last year. So to see more than that come here in Europe I think shows the global kind of growth curve as well as like, I think, Dan and someone else was asking sort of raise your hand if you've been to Kubecon Austin and very few actually, so there's a lot of new people showing up in Europe. I think it just shows the demand-- >> And Dan's been traveling around. I've seen him in China, some events I've been to. >> Joseph: All over. >> He's really working hard so props to him. We gave him some great props earlier. But he also told us Shanghai is coming online. >> Joseph: Yeah. >> So you got Shanghai, you to Barcelona next year for the European show, and of course Seattle. This is a community celebrating right now because there's a lot of high fives going on right now because there's a lot of cool, we've got some sort of core standard, defacto standard, now let's go to work. What are you working on now? You got a stealth startup? Share a little bit about it. I know you don't want to give the details out, but where is it kind of above the stack? Where you going to be playing? >> Sure, so we're not talking too much in terms of specifics and we're pretty stealthy, but I can tell you what I'm personally very excited about in terms of where Kubernetes is going and kind of where this ecosystem is starting to mature for practitioners, for enterprises. So one of the things that I think Kubernetes is starting to bring to bear is this idea of commoditizing distributed systems for everyday developers, for everyday enterprises. And I think that that is sort of the first time in sort of maybe, maybe the history of software development, software engineering and building applications, we're standardizing on a set of primitives, a set of building blocks for distributed system style programming. You know we had in previous eras things like Erlang and fault tolerant programming and frameworks, but those were sort of like pocketed into different programming communities and different types of stacks. I think Kubernetes is the one sort of horizontal technology that the industry's adopting and it's giving us these amazing properties, so I think some of the things that we're focusing on or excited about involve sort of the programming layer on top of Kubernetes in simplifying the experience of kind of bringing all stateful and enterprise workloads and different types of application paradigms natively into Kubernetes without requiring a developer to really understand and learn the Kubernetes primitives themselves. >> That's next level infrastructure as code. Yeah so as Kubernetes becomes more successful, as Kubernetes succeeds at a larger and larger scale, people simply shouldn't have to know or understand the internals. There's a lot of people, I think Kelsey and a few other people, started to talk about Kubernetes as the Linux kernel of distributed computing or distributed systems, and I think that's a really great way of looking at it. You know, do programmers make file system calls directly when they're building their applications? Do they script directly against the kernel for maybe some very high performance things. But generally speaking when you're writing a service or you're writing a microservice or some business logic, you're writing at a higher level of abstraction and a language that's doing some IO and maybe some reading and writing files, but you're using higher level abstractions. So I think by the same token, the focus today with Kubernetes is people are learning this API. I think over time people are going to be programming against that API at a higher level. And what are you doing here, the show? Obviously you're (mumbles) so you're doing some (mumbles) intelligence. Conversations you've been in, can you share your opinion of what's going on here? Your thoughts on the content program, the architecture, the decisions they've made. >> I think we've just, so lots of questions in there. What am I doing here? I just get so energized and I'm so, I just get reinvigorated kind of being here and talking to people and it's just super cool to see a lot of old faces, people who've been here for a while, and you know, one of the things that excites me, and this is just like proof that the event's gotten so huge. I walk around and I see a lot of familiar faces, but more than 80, 90% of people I've never seen before, and I'm like wow this has like gotten really super huge mainstream. Talking with some customers, getting a good sense of kind of what's going on. I think we've seen two really huge kind of trends come out of the event. One is this idea of multicloud sort of as a focus area, and you've talked with Bassam at Upbound and the sort of multicloud control plane, kind of need and demand out there in the community and the user base. I think what Bassam's doing is extremely exciting. The other, so multicloud is a really big paradigm that most companies are sort of prioritizing. Kubernetes is available now on all the cloud providers, but how do we actually adopt it in a way that is agnostic to any cloud provider service. That's one really big trend. The second big thing that I think we're starting to see, just kind of across a lot of talks is taking the Kubernetes API and extending it and wrapping it around stateful applications and stateful workloads, and being able to sort of program that API. And so we saw the announcement from Red Hat on the operator framework. We've seen projects like Kube Builder and other things that are really about sort of building native custom Kubernetes APIs for your applications. So extensibility, using the Kubernetes API as a building block, and then multicloud. I think those are really two huge trends happening here. >> What is your view on, I'm actually going to put you on test here. So Red Hat made a bet on Kubernetes years ago when it was not obvious to a lot of the other big wales. >> Joseph: From the very beginning really. >> Yeah from the very beginning. And that paid off huge for Red Hat as an example. So the question is, what bets should people be making if you had to lay down some thought leadership on this here, 'cause you obviously are in the middle of it and been part of the beginning. There's some bets to be made. What are the bets that the IBMs and the HPs and the Cisco's and the big players have to make and what are the bets the startups have to make? >> Well yeah, there's two angles to that. I mean, I think the investment startups are making, are different set of investments and motivated differently than the multinational, huge, you know, technology companies that have billions of dollars. I think in the startup category, startups just should really embrace Kubernetes for speeding the way they build reliable and scalable applications. I think really from the very beginning Kubernetes is becoming kind of compelling and reasonable even at a very small scale, like for two or three node environment. It's becoming very easy to run and install and manage. Of course it gives you a lot of really great properties in terms of actually running, building your systems, adopting microservices, and scaling out your application. And that's what's sort of like a direct end user use case, startups, kind of building their business, building their stack on Kubernetes. We see companies building products on top of Kubernetes. You see a lot of them here on the expo floor. That's a different type of vendor startup ecosystem. I think there's lots of opportunities there. For the big multinationals, I think one really interesting thing that hasn't really quite been done yet, is sort of treating Kubernetes as a first-class citizen as opposed to a way to commercialize and enter a new market. I think one of the default ways large technology companies tend to look at something hypergrowth like Kubernetes and TensorFlow and other projects is wrapping around it and commercializing in some way, and I think a deeper more strategic path for large companies could be to really embed Kubernetes in the core kind of crown jewel IP assets that they have. So I'll give you an example, like, for let's just take SAP, I'll just pick on SAP randomly, for no reason. This is one of the largest enterprise software companies in the world. I would encourage the co-CEOs of SAP, for example. >> John: There's only one CEO now. >> Is there one CEO now? Okay. >> John: Snabe left. It's now (drowned out by talking). >> Oh, okay, gotcha. I haven't been keeping up on the SAP... But let's just say, you know, a CEO boardroom level discussion of replatforming the entire enterprise application stack on something like Kubernetes could deliver a ton of really core meaningful benefits to their business. And I don't think like deep super strategic investments like that at that level are being made quite yet. I think at a certain point in time in the future they'll probably start to be made that way. But that's how I would like look at smart investments on the bigger scale. >> We're not seeing scale yet with Kubernetes, just the toe is in the water. >> I think we're starting to see scale, John. I think we are. >> John: What's the scale number in clusters? >> I'll give you the best example, which came up today, and actually really surprised me which I think was a super compelling example. The largest retailer in China, so essentially the Amazon of China, JD.com, is running in production for years now at 20,000 compute nodes with Kubernetes, and their largest cluster is a 5,000 node cluster. And so this is pushing the boundary of the sort of production-- >> And I think that may be the biggest one I've heard. >> Yeah, that's certainly, I mean for a disclosed user that's pretty huge. We're starting to see people actually talk publicly about this which is remarkable. And there are huge deployments out there. >> We saw Tyler Jewell come on from WSO2. He's got a new thing called Ballerina. New programming language, have you seen that? >> Joseph: I have, I have. >> Thoughts on that? What's your thoughts on that? >> You know, I think that, so I won't make any particular specific comments on Ballerina, I'm not extremely informed on it. I did play with a little bit, I don't want to give any of my opinions, but what I'd say, and I think Tyler actually mentioned this, one of the things that I believe is going to be a big deal in the coming years, is so, trying to think of Kubernetes as an implementation detail, as the kernel, do you interact directly with that? Do you learn that interface directly? Are you sort of kind of optimizing your application to be sort of natively aware of those abstractions? I think the answer to all of those questions is no, and Kubernetes is sort of delegated as a compiler target, and so frankly like directionally speaking, I think what Ballerina's sort of design is aspiring towards is the right one. Compile time abstraction for building distributed systems is probably the next logical progression. I like to think of, and I think Brendan Burns has started to talk about this over the last year or two. Everyone's writing assembly code 'cause we're swimming yaml and configuration based designs and systems. You know, sort of pseudodeclarative, but more imperative in static configurations. When in reality we shouldn't be writing these assembly artifacts. We should be delegating all of this complexity to a compiler in the same way that you know, we went from assembly to C to higher level languages. So I think over time that starts to make a lot of sense, and we're going to see a lot of innovation here probably. >> What's your take on the community formation? Obviously, it's growing, so, any observations, any insight for the folks watching what's happening in the community, patterns, trends you'd see, like, don't like. >> I think we could do a better job of reducing politics amongst the really sort of senior community leaders, particularly who have incentives behind their sort of agendas and sort of opinions, since they work for various, you know, large and small companies. >> Yeah, who horse in this race. >> Sure, and there's, whether they're perverse incentives or not, I think net the project has such a high quality genuine, like humble, focused group of people leading it that there isn't much pollution and negativity there. But I think there could be a higher standard in some cases. Since the project is so huge and there are so many very fast moving areas of evolution, there tends to be sort of a fast curve toward many cooks being in the kitchen, you know, when new things materialize and I think that could be better handled. But positive side, I think like the project is becoming incredibly diverse. I just get super excited to see Aparna from Google leading the project at Google, both on the hosted Saas offering and the Kubernetes project. People like Liz and others. And I just think it's an awesome, welcoming, super diverse community. And people should really highlight that more. 'Cause I think it's a unique asset of the project. >> Well you're involved in some deep history. I think we're going to be looking this as moment where there was once a KubeCon that was not part of the CNCF, and you know, you did the right thing, did a good thing. You could have kept it to yourself and made some good cash. >> It's definitely gotten really big, and it's way beyond me now at this point. >> Those guys did a good job with CNCF. >> They're doing phenomenal. I think vast majority of the credit, at this scale, goes to Chris Anasik and Dan Conn, and the events team at the Linux Foundation, CNCF, and obviously Kelsey and Liz and Michelle Noorali and many others. But blood, sweat, and tears. It's no small feat pulling off an event like this. You know, corralling the CFP process, coordinating speakers, setting the themes, it's a really huge job. >> And now they got to deal with all the community, licenses, Lauren your thoughts? >> Well they're consistent across Apache v2 I believe is what Dan said, so all the projects under the CNCF are consistently licensed. So I think that's great. I think they actually have it together there. You know, I do share your concerns about the politics that are going on a little bit back and forth, the high level, I tend to look back at history a little bit, and for those of us that remember JBoss and the JBoss fork, we're a little bit nervous, right? So I think that it's important to take a look at that and make sure that that doesn't happen. Also, you know, open stack and the stuff that we've talked about before with distros coming out or too many distros going to be hitting the street, and how do we keep that more narrow focused, so this can go across-- >> Yeah, I started this, I like to list rank and iterate things, and I started with this sheet of all the vendors, you know, all the Kubernetes vendors, and then Linux Foundation, or CNCF took it over, and they've got a phenomenal sort of conformance testing and sort of compliance versioning sheet, which lists all the vendors and certification status and updates and so on and I think there's 50 or 60 companies. On one hand I think that's great, because it's more innovation, lots of service providers and offerings, but there is a concern that there might be some fragmentation, but again, this is a really big area of focus, and I think it's being addressed. Yeah, I think the right ones will end up winning, right? >> Joseph: Right, for sure. >> and that's what's going to be key. >> Joseph: Healthy competition. >> Yes. >> All right final question. Let's go around the horn. We'll start with you JJ, wrapping up KubeCon 2018, your thoughts, summary, what's happened here? What will we talk about next year about what happened this week in Denmark? >> I think this week in Denmark has been a huge turning point for the growth in Europe and sort of proof that Kubernetes is on like this unstoppable inflection, growth curve. We usually see a smaller audience here in Europe, relative to the domestic event before it. And we're just seeing the numbers get bigger and bigger. I think looking back we're also going to see just the quality of end users and the end user community and more production success stories starting to become front and center, which I think is really awesome. There's lots of vendors here. But I do believe we have a huge representation of end users and companies actually sharing what they're doing pragmatically and really changing their businesses from Financial Times to Cern and physics projects, and you know, JD and other huge companies. I think that's just really awesome. That's a unique thing of the Kubernetes project. There's some hugely transformative companies doing awesome things out there. >> Lauren your thoughts, summary of the week in Denmark? >> I think it's been awesome. There's so much innovation happening here and I don't want to overuse that word 'cause I think it's kind of BS at some point, but really these companies are doing new things, and they're taking this to new levels. I think that hearing about the excitement of the folks that are coming here to actually learn about Kubernetes is phenomenal, and they're going to bring that back into their companies, and you're going to see a lot more actually coming to Europe next year. I also true multicloud would be phenomenal. I would love that if you could actually glue those platforms together, per se. That's really what I'm looking for. But also security. I think security, there needs to be a security seg. We talked to customers earlier. That's something they want to see. I think that that needs to be something that's brought to the table. >> That's awesome. My view is very simple. You know I think they've done a good job in CNCF and Linux Foundation, the team, building the ecosystem, keeping the governance and the technical and the content piece separate. I think they did a good job of showing the future state that we'd like to get to, which is true multicloud, workload portability, those things still out of reach in my opinion, but they did a great job of keeping the tight core. And to me, when I hear words like defacto standard I think of major inflection points where industries have moved big time. You think of internetworking, you think of the web, you think of these moments where that small little tweak created massive new brands and created a disruptor enabler that just created, changed the game. We saw Cisco coming out of that movement of IP with routers you're seeing 3Com come out of that world. I think that this change, this new little nuance called Kubernetes is going to be absolutely a defacto standard. I think it's definitely an inflection point and you're going to see startups come up with new ideas really fast in a new way, in a new modern global architecture, new startups, and I think people are going to be blown away. I think you're going to see fast rising growth companies. I think it's going to be an investment opportunity whether it's token economics or a venture backer private equity play. You're going to see people come out of the wood work, real smart entrepreneur. I think this is what people have been waiting for in the industry so I mean, I'm just super excited. And so thanks for coming on. >> Thank you for everything you do for the community. I think you truly extract the signal from the noise. I'm really excited to see you keep coming to the show, so it's really awesome. >> I appreciate your support, and again we're co-developing content in the open. Lauren great to host with you this week. >> Thank you, it's been awesome. >> And you got a great new venture, high five there. High five to the founder of KubeCon. This is theCUBE, not to be confused with KubeCon. And we're theCUBE, C-U-B-E. I'm John Furrier, thanks for watching. It's a wrap of day two global coverage here exclusively for KubeCon 2018, CNCF and the Linux Foundation. Thanks for watching. (techno music)