(upbeat music) >> Hello, and welcome to this startup showcase. It's great to be here and talk about some of the innovations we are doing at AWS, how we work with our partner community, especially our open source partners. My name is Deepak Singh. I run our compute services organization, which is a very vague way of saying that I run a number of things that are connected together through compute. Very specifically, I run a container services organization. So for those of you who are into containers, ECS, EKS, fargate, ECR, App Runner Those are all teams that are within my org. I also run the Amazon Linux and BottleRocketing. So anything AWS does with Linux, both externally and internally, as well as our high-performance computing team. And perhaps very relevant to this discussion, I run the Amazon open source program office. Serving at AWS for over 13 years, almost 14, involved with compute in various ways, including EC2. What that has done has given me a vantage point of seeing how our customers use the services that we build for them, how they leverage various partner solutions, and along the way, how AWS itself has gotten involved with opensource. And I'll try and talk to you about some of those factors and how they impact, how you consume our services. So why don't we get started? So for many of you, you know, one of the things, there's two ways to look at AWS and open-source and Amazon in general. One is the number of contributors you may have. And the number of repositories that contribute to. Those are just a couple of measures. There are people that I work with on a regular basis, who will remind you that, those are not perfect measures. Sometimes you could just contribute to one thing and have outsized impact because of the nature of that thing. But it address being what it is, increasingly we'll look at different ways in which we can help contribute and enhance open source 'cause we consume a lot of it as well. I'll talk about it very specifically from the space that I work in the container space in particular, where we've worked a lot with people in the Kubernetes community. We've worked a lot with people in the broader CNCF community, as well as, you know, small projects that our customers might have got started off with. For example, I want to like talking about is Argo CD from Intuit. We were very actively involved with helping them figure out what to do with it. And it was great to see how into it. And we worked, etc, came together to think about get-ups at the Kubernetes level. And while those are their projects, we've always been involved with them. So we try and figure out what's important to our customers, how we can help and then take because of that. Well, let's talk about a little bit more, here's some examples of the kinds of open source projects that Amazon and AWS contribute to. They arranged from the open JDK. I think we even now have our own implementation of Java, the Corretto open source project. We contribute to projects like rust, where we are very active in the rest foundation from a leadership role as well, the robot operating system, just to pick some, we collaborate with Facebook and actively involved with the pirates project. And there's many others. You can see all the logos in here where we participate either because they're important to us as AWS in the services that we run or they're important to our customers and the services that they consume or the open source projects they care about and how we get to those. How we get and make those decisions is often depends on the importance of that particular project. At that point in time, how much impact they're having to AWS customers, or sometimes very feel that us contributing to that project is super critical because it helps us build more robust services. I'll talk about it in a completely, you know, somewhat different basis. You may have heard of us talk about our new next generation of Amazon Linux 2022, which is based on fedora as its sub stream. One of the reasons we made this decision was it allows us to go and participate in the preneurial project and make sure that the upstream project is robust, stays robust. And that, that what that ends up being is that Amazon Linux 2022 will be a robust operating system with the kinds of capabilities that our customers are asking for. That's just one example of how we think about it. So for example, you know, the Python software foundation is something that we work with very closely because so many of our customers use Python. So we help run something like PyPy which is many, you know, if you're a Python developer, I happened to be a Ruby one, but lots of our customers use Python and helping the Python project be robust by making sure PyPy is available to everybody is something that we help provide credits for help support in other ways. So it's not just code. It can mean many different ways of contributing as well, but in the end code and operations is where we hang our happens. Good examples of this is projects that we will create an open source because it makes sense to make sure that we open source some of the core primitives or foundations that are part of our own services. A great example of that, whether this be things that we open source or things that we contribute to. And I'll talk about both and I'll talk about things near and dear to my heart. There's many examples I've picked the two that I like talking about. The first of these is firecracker. Many of you have heard about it, a firecracker for those of you who don't know is a very lightweight virtual machine manager, which allows you to run these micro VMs. And why was this important many years ago when we started Lambda and quite honestly, Fugate and foggy, it still runs quite a bit in that mode, we used to have to run on VMs like everything else and finding the right VM for the size of tasks that somebody asks for the size of function that somebody asks for is requires us to provision capacity ahead of time. And it also wastes a lot of capacity because Lambda function is small. You won't even if you find the smallest VM possible, those can be a little that can be challenging. And you know, there's a lot of resources that are being wasted. VM start at a particular speed because they have to do a whole bunch of things before the operating system spins up and the virtual machine spins up and we asked ourselves, can we do better? come up with something that allows us to create right size, very lightweight, very fast booting. What's your machines, micro virtual machine that we ended up calling them. That's what led to firecracker. And we open source the project. And today firecrackers use, not just by AWS Lambda or foggy, but by a number of other folks, there's companies like fly IO that are using it. We know people using firecracker to run Kubernetes on prem on bare metal as an example. So we've seen a lot of other folks embrace it and use it as the foundation for building their own serverless services, their own container services. And we think there's a lot of value and learnings that we can bring to the table because we get the experience of operating at scale, but other people can bring to the table cause they may have specific requirements that we may not find it as important from an AWS perspective. So that's firecracker an example of a project where we contribute because we feel it's fundamentally important to us as continually. We were found, you know, we've been involved with continuity from the beginning. Today, we are a whole team that does nothing else, but contribute to container D because container D underlies foggy. It underlies our Kubernetes offerings. And it's increasingly being used by customers directly by their placement. You know, where they're running container D instead of running a full on Docker or similar container engine, what it has allowed us to do is focus on what's important so that we can operate continuously at scale, keep it robust and secure, add capabilities to it that AWS customers need manifested often through foggy Kubernetes, but in the end, it's a win-win for everybody. It makes continuously better. If you want to use containers for yourself on AWS, that's a great way to you. You know, you still, you still benefit from all the work that we're doing. The decision we took was since it's so important to us and our customers, we wanted a team that lived in breathed container D and made sure a super robust and there's many, many examples like that. No, that we ended up participating in, either by taking a project that exists or open sourcing our own. Here's an example of some of the open source projects that we have done from an AWS on Amazon perspective. And there's quite a few when I was looking at this list, I was quite surprised, not quite surprised I've seen the reports before, but every time I do, I have to recount and say, that's a lot more than one would have thought, even though I'd been looking at it for such a long time, examples of this in my world alone are things like, you know, what work had to do with Amazon Linux BottleRocket, which is a container host operating system. That's been open-sourced from day one. Firecracker is something we talked about. We have a project called AWS peril cluster, which allows you to spin up high performance computing clusters on AWS using the kind of schedulers you may use to use like slum. And that's an open source project. We have plenty of source projects in the web development space, in the security space. And more recently things like the open 3d engine, which is something that we are very excited about and that'd be open sourced a few months ago. And so there's a number of these projects that cover everything from tooling to developer, application frameworks, all the way to database and analytics and machine learning. And you'll notice that in a few areas, containers, as an example, machine learning as an example, our default is to go with open source option is where we can open source. And it makes sense for us to do so where we feel the product community might benefit from it. That's our default stance. The CNCF, the cloud native computing foundation is something that we've been involved with quite a bit. You know, we contribute to Kubernetes, be contribute to Envoy. I talked about continuity a bit. We've also contributed projects like CDK 8, which marries the AWS cloud development kit with Kubernetes. It's now a sandbox project in Kubernetes, and those are some of the areas. CNCF is such a wide surface area. We don't contribute to everything, but we definitely participate actively in CNCF with projects like HCB that are critical to eat for us. We are very, very active in just how the project evolves, but also try and see which of the projects that are important to our customers who are running Kubernetes maybe by themselves or some other project on AWS. Envoy is a good example. Kubernetes itself is a good example because in the end, we want to make sure that people running Kubernetes on AWS, even if they are not using our services are successful and we can help them, or we can work on the projects that are important to them. That's kind of how we think about the world. And it's worked pretty well for us. We've done a bunch of work on the Kubernetes side to make sure that we can integrate and solve a customer problem. We've, you know, from everything from models to work that we have done with gravity on our arm processor to a virtual GPU plugin that allows you to share and media GPU resources to the elastic fabric adapter, which are the network device for high performance computing that it can use at Kubernetes on AWS, along with things that directly impact Kubernetes customers like the CDKs project. I talked about work that we do with the container networking interface to the Amazon control of a Kubernetes, which is an open source project that allows you to use other AWS services directly from Kubernetes clusters. Again, you notice success, Kubernetes, not EKS, which is a managed Kubernetes service, because if we want you to be successful with Kubernetes and AWS, whether using our managed service or running your own, or some third party service. Similarly, we worked with premetheus. We now have a managed premetheus service. And at reinvent last year, we announced the general availability of this thing called carpenter, which is a provisioning and auto-scaling engine for Kubernetes, which is also an open source project. But here's the beauty of carpenter. You don't have to be using EKS to use it. Anyone running Kubernetes on AWS can leverage it. We focus on the AWS provider, but we've built it in such a way that if you wanted to take carpenter and implemented on prem or another cloud provider, that'd be completely okay. That's how it's designed and what we anticipated people may want to do. I talked a little bit about BottleRocket it's our Linux-based open-source operating system. And the thing that we have done with BottleRocket is make sure that we focus on security and the needs of customers who want to run orchestrated container, very focused on that problem. So for example, BottleRocket only has essential software needed to run containers, se Linux. I just notice it says that's the lineups, but I'm sure that, you know, Lena Torvalds will be pretty happy. And seeing that SE linux is enabled by default, we use things like DM Verity, and it has a read only root file system, no shell, you can assess it. You can install it if you wanted to. We allowed it to create different bill types, variants as we call them, you can create a variant for a non AWS resource as well. If you have your own homegrown container orchestrator, you can create a variant for that. It's designed to be used in many different contexts and all of that is open sourced. And then we use the update framework to publish and secure repository and kind of how this transactional system way of updating the software. And it's something that we didn't invent, but we have embraced wholeheartedly. It's a bottle rockets, completely open source, you know, have partners like Aqua, where who develop security tools for containers. And for them, you know, something I bought in rocket is a natural partnership because people are running a container host operating system. You can use Aqua tooling to make sure that they have a secure Indiana environment. And we see many more examples like that. You may think so over us, it's all about AWS proprietary technology because Lambda is a proprietary service. But you know, if you look peek under the covers, that's not necessarily true. Lambda runs on top of firecracker, as we've talked about fact crackers and open-source projects. So the foundation of Lambda in many ways is open source. What it also allows people to do is because Lambda runs at such extreme scale. One of the things that firecracker is really good for is running at scale. So if you want to build your own firecracker base at scale service, you can have most of the confidence that as long as your workload fits the design parameters, a firecracker, the battle hardening the robustness is being proved out day-to-day by services at scale like Lambda and foggy. For those of you who don't know service support services, you know, in the end, our goal with serverless is to make sure that you don't think about all the infrastructure that your applications run on. We focus on business logic as much as you can. That's how we think about it. And serverless has become its own quote-unquote "Sort of environment." The number of partners and open-source frameworks and tools that are spun up around serverless. In which case mostly, I mean, Lambda, API gateway. So it says like that is pretty high. So, you know, number of open source projects like Zappa server serverless framework, there's so many that have come up that make it easier for our customers to consume AWS services like Lambda and API gateway. We've also done some of our own tooling and frameworks, a serverless application model, AWS jealous. If you're a Python developer, we have these open service runtimes for Lambda, rust dot other options. We have amount of number of tools that we opened source. So in general, you'll find that tooling that we do runtime will tend to be always be open-sourced. We will often take some of the guts of the things that we use to build our systems like firecracker and open-source them while the control plane, etc, AWS services may end up staying proprietary, which is the case in Lambda. Increasingly our customers build their applications and leverage the broader AWS partner network. The AWS partner network is a network of partnerships that we've built of trusted partners. when you go to the APN website and find a partner, they know that that partner meets a certain set of criteria that AWS has developed, and you can rely on those partners for your own business. So whether you're a little tiny business that wants some function fulfill that you don't have the resources for or large enterprise that wants all these applications that you've been using on prem for a long time, and want to keep leveraging them in the cloud, you can go to APN and find that partner and then bring their solution on as part of your cloud infrastructure and could even be a systems integrator, for example, to help you solve this specific development problem that you may have a need for. Increasingly, you know, one of the things we like to do is work with an apartment community that is full of open-source providers. So a great one, there's so many, and you have, we have a panel discussion with many other partners as well, who make it easier for you to build applications on AWS, all open source and built on open source. But I like to call it a couple of them. The first one of them is TIDELIFT. TIDELIFT, For those of you who don't know is a company that provides SAS based tools to curate track, manage open source catalogs. You know, they have a whole network of maintainers and providers. They help, if you're an independent open developer, or a smart team should probably get to know TIDELIFT. They provide you benefits and, you know, capabilities as a developer and maintainer that are pretty unique and really help. And I've seen a number of our open source community embraced TIDELIFT quite honestly, even before they were part of the APN. But as part of the partner network, they get to participate in things like ISP accelerate and they get to they're officially an advanced tier partner because they are, they migrated the SAS offering onto AWS. But in the end, if you're part of the open source supply chain, you're a maintainer, you are a developer. I would recommend working with TIDELIFT because their goal is making all of you who are developing open source solutions, especially on AWS, more successful. And that's why I enjoy this partnership with them. And I'm looking to do a lot more because I think as a company, we want to make sure that open source developers don't feel like they are not supported because all you have to do is read various forums. It's challenging often to be a maintainer, especially of a small project. So I think with helping with licensing license management, security identification remediation, helping these maintainers is a big part of what TIDELIFT to us and it was great to see them as part of a partner network. Another partner that I like to call sysdig. I actually got introduced to them many years ago when they first launched. And one of the things that happened where they were super interested in some of our serverless stuff. And we've been trying to figure out how we can work together because all of our customers are interested in the capabilities that cystic provides. And over the last few years, he found a number of areas where we can collaborate. So sysdig, I know them primarily in a security company. So people use cystic to secure the bills, detect, you know, do threat response, threat detection, completely continuously validate their posture, get this continuous analytics signal on how they're doing and monitor performance. At the end of it, it's a SAS platform. They have a very nice open source security stack. The one I'm most familiar with. And I think most of you are probably familiar with is Falco. You know, sysdig, a CNCF project has been super popular. It's just to go SSS what 3, 37, 40 million downloads by now. So that's pretty, pretty cool. And they have been a great partner because we've had to do make sure that their solution works at target, which is not a natural place for their software to run, but there was enough demand and interest from our customers that, you know, or both companies leaned in to make sure they can be successful. So last year sister got a security competency. We have a number of specific competencies that we for our partners, they have integration and security hub is great. partners are lean in the way cystic has onto making our customer successful. And working with us are the best partners that we have. And there's a number of open source companies out there built on open source where their entire portfolio is built on open source software or the active participants like we are that we love working with on a day to day basis. So, you know, I think the thing I would like to, as we wind this out in this presentation is, you know, AWS is constantly looking for partnerships because our partners enable our customers. They could be with companies like Redis with Mongo, confluent with Databricks customers. Your default reaction might be, "Hey, these are companies that maybe compete with AWS." but no, I mean, I think we are partners as well, like from somebody at the lower end of the spectrum where people run on top of the services that I own on Linux and containers are SE 2, For us, these partners are just as important customers as any AWS service or any third party, 20 external customer. And so it's not a zero sum game. We look forward to working with all these companies and open source projects from an AWS perspective, a big part of how, where my open source program spends its time is making it easy for our developers to contribute, to open source, making it easy for AWS teams to decide when to open source software or participate in open source projects. Over the last few years, we've made significant changes in how we reduce the friction. And I think you can see it in the results that I showed you earlier in this stock. And the last one is one of the most important things that I say and I'll keep saying that, that we do as AWS is carry the pager. There's a lot of open source projects out there, operationalizing them, running them at scale is not easy. It's not all for whatever reason. It may not have anything to do with the software itself. But our core competency is taking that and being really good at operating it and becoming experts at operating it. And then ideally taking that expertise and experience and operating that project, that software and contributing back upstream. Cause that makes it better for everybody. And I think you'll see us do a lot more of that going forward. We've been doing that for the last few years, you know, in the container space, we do it every day. And I'm excited about the possibilities. With that. Thank you very much. And I hope you enjoy the rest of the showcase. >> Okay. Welcome back. We have Deepak sing here. We just had the keynote closing keynote vice-president of compute services. Deepak. Great to a great keynote, great wisdom and insight from that session. A very notable highlights and cutting edge trends and product information. Thanks for sharing. >> No, anytime it's always good to be here. It's too bad that we still doing this virtually, but always good to talk to you, John. >> We'll get hopefully through this way pretty quickly, I want to jump right in. Cause we don't have a lot of time. I want to get some quick question. You've brought up a good things. Open source innovation. Okay. Going next level. You've seen the rise of super clouds and super apps developing at open source. You're seeing big companies contributing, you know, you mentioned Argo into it. You're seeing that dynamic where companies are forming around this. This is a rising tide. This is, this is actually real. It's not the old school of, okay, here's a project. And then someone manages support and commercialization of it. It's actually platform in cloud scale. This is next gen. >> Yeah. And actually I think it started a few years ago. We can talk about a company that, you know, you're very familiar with as part of this event, which is armory many years ago, Netflix spun off this project called Spinnaker. A Spinnaker is CISED you know, CSED system that was developed at Netflix for their own purposes, but they chose to open solicit. And since then, it's become very popular with customers who want to use it even on prem. And you have a company that spun up on it. I think what's making this world very unique is you have very large companies like Facebook that will build things for themselves like VITAS or Netflix with Spinnaker and open source them. And you can have a lot of discussion about why they chose to do so, etc. But increasingly that's becoming the default when Amazon or Netflix or Facebook or Mehta, I guess you call them these days, build something for themselves for their own needs. The first question we ask ourselves is, should it be opensource? And increasingly we are all saying yes. And here's what happens because of that. It gives an opportunity depending on how you open source it for innovation through commercial deployments, so that you get SaaS companies, you know, that are going to take that product and make it relevant and useful to a very broad number of customers. You build partnerships with cloud providers like AWS, because our customers love this open source project and they need help. And they may choose an AWS managed service, or they may end up working with this partner on a day-to-day basis. And we want to work with that partner because they're making our customers successful, which is one reason all of us are here. So you're having this set of innovation from large companies from, you know, whether they are just consumer companies like Metta infrastructure companies like us, or just random innovation that's happening in an open source project that which ends up in companies being spun up and that foster that innovative innovation and that flywheel that's happening right now. And I think you said that like, this is unique. I mean, you never saw this happen before from so many different directions. >> It really is a nice progression on the business model side as well. You mentioned Argo, which is a great organic thing that was Intuit developed. We just interviewed code fresh. They just presented here in the showcase as well. You seeing the formation around these projects develop now in the community at a different scale. I mean, look at code fresh. I mean, Intuit did it Argo and they're not just supporting it. They're building a platform. So you seeing the dynamics of tools and now emerging the platforms, you mentioned Lambda, okay. Which is proprietary for AWS and your talk powered by open source. So again, open source combined with cloud scale allows for new potential super applications or super clouds that are developing. This is a new phenomenon. This isn't just lift and shift and host on the cloud. This is actually a construction production developer workflow. >> Yeah. And you are seeing consumers, large companies, enterprises, startups, you know, it used to be that startups would be comfortable adopting some of these solutions, but now you see companies of all sizes doing so. And I said, it's not just software it's software, the services increasingly becoming the way these are given, delivered to customers. I actually think the innovation is just getting going, which is why we have this. We have so many partners here who are all in inventing and innovating on top of open source, whether it's developed by them or a broader community. >> Yeah. I liked, I liked the represent container. Do you guys have, did that drove that you've seen a lot of changes and again, with cloud scale and open source, you seeing the dynamics change, whether you're enabling that, and then you see kind of like real big change. So let's take snowflake, a big customer of AWS. They started out as a startup too, but they weren't a data warehouse. They were bringing data warehouse like functionality and then changing everything differently and making it consumable for the cloud. And hence they're huge. So that's a disruption into an incumbent leader or sector. Then you've got new capabilities emerging. What's your thoughts, Deepak? Can you share your vision on how you have the disruption to existing leaders, old guard, if you will, as you guys call them and then new capabilities as these new platforms emerge at a net new functionality, how do you see that emerging? >> Yeah. So I speak from my side of the world. I've lived in over the last few years, which has containers and serverless, right? There's a lot of, if you go to any enterprise and ask them, do you want to modernize the infrastructure? Do you want to take advantage of automated software delivery, continuous delivery infrastructure as code modern observability, all of them will say yes, but they also are still a large enterprise, which has these enterprise level requirements. I'm using the word enterprise a lot. And I usually it's a trigger word for me because so many customers have similar requirements, but I'm using it here as large company with a lot of existing software and existing practices. I think the innovation that's coming and I see a lot of companies doing that is saying, "Hey, we understand the problems you want to solve. We understand the world where you live in, which could be regulated." You want to use all these new modalities. How do we allow you to use all of them? Keep the advantages of switching to a Lambda or switching to, and a service running on far gate, but give you the same capabilities. And I think I'll bring up cystic here because we work so closely with them on Falco. As an example, I just talked about them in my keynote. They could have just said, "Oh no, we'll just support the SE2 and be done with it." They said, "No, we're going to make sure that serverless containers in particular are something that you're going to be really good at because our customers want to use them, but requires us to think differently. And then they ended up developing new things like Falco that are born in this new world, but understand the requirements of the old world. If you get what I'm saying. And I think that a real example. >> Yeah. Oh, well, I mean, first of all, they're smart. So that was pretty obvious for most people that know, sees that you can connect the dots on serverless, which is a great point, but not everyone can see that again, this is what's new and and systig was just found in his backyard. As I found out on my interview, a great, great founder, they would do a new thing. So it was a very easy to connect the dots there again, that's the trend. Well, I got to ask if they're doing that for serverless, you mentioned graviton in your speech and what came out of you mentioned graviton in your speech and what came out of re-invent this past year was all the innovation going on at the compute level with gravitron at many levels in the Silicon. How should companies and open source developers think about how to innovate with graviton? >> Yeah, I mean, you've seen examples from people blogging and tweeting about how fast their applications run and grab it on the price performance benefits that they get, whether it's on, you know, whether it's an observability or other places. something that AWS is going to embrace across a compute something that AWS is going to embrace across a compute portfolio. Obviously you can go find EC2 instances, the gravitron two instances and run on them and that'll be great. But we know that most of our customers, many of our customers are building new applications on serverless containers and serveless than even as containers increasingly with things like foggy, where they don't want to operate the underlying infrastructure. A big part of what we're doing is to make sure that graviton is available to you on every compute modality. You can run it on a C2 forever. You've been running, being able to use ECS and EKS and run and grab it on almost since launch. What do you want me to take it a step further? You elastic Beanstalk customers, elastic Beanstalk has been around for a decade, but you can now use it with graviton. people running ECS on for gate can now use graviton. Lambda customers can pick graviton as well. So we're taking this price performance benefits that you get So we're taking this price performance benefits that you get from graviton and basically putting it across the entire compute portfolio. What it means is every high level service that gets built on compute infrastructure. And you get the price performance benefits, you get the price performance benefits of the lower power consumption of arm processes. So I'm personally excited like crazy. And you know, this has graviton 2 graviton 3 is coming. >> That's incredible. It's an opportunity like serverless was it's pretty obvious. And I think hopefully everyone will jump on that final question as the time's ticking here. I want to get your thoughts quickly. If you look at what's happened with containers over the past say eight years since the original founding of the first Docker instance, if you will, to how that's evolved and then the introduction of Kubernetes and the cloud native wave we're seeing now, what is, how would you describe the relationship between the success Docker, seeing now with Kubernetes in the cloud native construct what's different and why is this combination so successful? >> Yeah. I often say that containers would have, let me rephrase that. what I say is that people would have adopted sort of the modern way of running applications, whether containers came around or not. But the fact that containers came around made that migration and that journey is so much more efficient for people. So right from, I still remember the first doc that Solomon gave Billy announced DACA and starting to use it on customers, starting to get interested all the way to the more sort of advanced orchestration that we have now for containers across the board. And there's so many examples of the way you can do that. Kubernetes being the most, most well-known one. Here's the thing that I think has changed. I think what Kubernetes or Docker, or the whole sort of modern way of building applications has done is it's taken people who would have taken years adopting these practices and by bringing it right to the fingertips and rebuilding it into the APIs. And in the case of Kubernetes building an entire sort of software world around it, the number of, I would say number of decisions people have to take has gone smaller in many ways. There's so many options, the number of decisions that become higher, but the com the speed at which they can get to a result and a production version of an application that works for them is way low. I have not seen anything like what I've seen in the last 6, 7, 8 years of how quickly the most you know, the most I would say is, you know, a company that you would think would never adopt modern technology has been able to go from, this is interesting to getting a production really quickly. And I think it's because the tooling makes it So, and the fact that you see the adoption that you see right and the fact that you see the adoption that you see right from the fact that you could do Docker run Docker, build Docker, you know, so easily back in the day, all the way to all the advanced orchestration you can do with container orchestrator is today. sort of taking all of that away as well. there's never been a better time to be a developer independent of whatever you're trying to build. And I think containers are a big central part of why that's happened. >> Like the recipe, the combination of cloud-scale, the timing of Kubernetes and the containerization concepts just explode as a beautiful thing. And it creates more opportunities and will challenges, which are opportunities that are net new, but it solves the automation piece that we're seeing this again, it's only makes things go faster. >> Yes. >> And that's the key trend. Deepak, thank you so much for coming on. We're seeing tons of open cloud innovations, thanks to the success of your team at AWS and being great participants in the community. We're seeing innovations from startups. You guys are helping enabling that. Of course, they want to live on their own and be successful and build their super clouds and super app. So thank you for spending the time with us. Appreciate. >> Yeah. Anytime. And thank you. And you know, this is a great event. So I look forward to people running software and building applications, using AWS services and all these wonderful partners that we have. >> Awesome, great stuff. Great startups, great next generation leaders emerging. When you see startups, when they get successful, they become the modern software applications platforms out there powering business and changing the world. This is the cube you're watching the AWS startup showcase. Season two episode one open cloud innovations on John Furrier your host, see you next time.

>>Welcome to this cube conversation. I'm Dave Nicholson and we're having this conversation in advance of cube con cloud native con north America, 2021. Uh, we are going to be talking specifically about a subject near and dear to my heart, and that is security. We have a very special guest from red hat, the security lead from the office of the CTO. New kinds. Welcome. Welcome to the cube Luke. >>Oh, it's great to be here. Thank you, David. Really looking forward to this conversation. >>So you have a session, uh, at a CubeCon slash cloud native con this year. And, uh, frankly, I look at the title and based on everything that's going on in the world today, I'm going to accuse you of clickbait because the title of your session is a secure supply chain vision. Sure. What other than supply chain has is in the news today, all of these things going on, but you're talking about the software supply chain. Aren't you tell, tell us about, tell us about this vision, where it came from Phyllis in. >>Yes, very much. So I do agree. It is a bit of a buzzword at the moment, and there is a lot of attention. It is the hot topic, secure supply chains, thanks to things such as the executive order. And we're starting to see an increase in attacks as well. So there's a recent statistic came out that was 620%. I believe increase since last year of supply chain attacks involving the open source ecosystem. So things are certainly ramping up. And so there is a bit of clickbait. You got me there. And um, so supply chains, um, so it's predominantly let's consider what is a supply chain. Okay. And we'll, we'll do this within the context of cloud native technology. Okay. Cause there's many supply chains, you know, many, many different software supply chains. But if we look at a cloud native one predominantly it's a mix of people and machines. >>Okay. So you'll have your developers, uh, they will then write code. They will change code and they'll typically use our, a code revision control system, like get, okay, so they'll make their changes there. Then push those changes up to some sort of repository, typically a get Harbor or get level, something like that. Then another human will then engage and they will review the code. So somebody that's perhaps a maintain will look at the code and they'll improve that a code. And then at the same time, the machine start to get involved. So you have your build servers that run tests and integration tests and they check the code is linted correctly. Okay. And then you have this sort of chain of events that start to happen. These machines, these various actors that start to play their parts in the chain. Okay. So your build system might generate a container image is a very common thing within a cloud native supply chain. >>Okay. And then that image is typically deployed to production or it's hosted on a registry, a container registry, and then somebody else might utilize that container image because it has software that you've packaged within that container. Okay. And then this sort of prolific expansion of use of coasts where people start to rely on other software projects for their own dependencies within their code. Okay. And you've got this kind of a big spaghetti of actors that are dependent on each other and feed him from each other. Okay. And then eventually that is deployed into production. Okay. So these machines are a lot of them non open source code. Okay. Even if there is a commercial vendor that manages that as a service, it's all based on predominantly open source code. Okay. And the security aspects with the supply chain is there's many junctures where you can exploit that supply chain. >>So you can exploit the human, or you could be a net ferrous human in the first place you could steal somebody's identity. Okay. And then there's the build systems themselves where they generate these artifacts and they run jobs. Okay. And then there are the production system, which pulls these down. Okay. And then there's the element of which we touched upon around libraries and dependencies. So if you look at a lot of projects, they will have approximately around a hundred, perhaps 500 dependencies that they all pull in from. Okay. So then you have the supply chains within each one of those, they've got their own set of humans and machines. And so it's a very large spaghetti beast of, of, of sort of dependence and actors and various identities that make up. >>Yeah. You're, you're describing a nightmarish, uh, scenario here. So, uh, so, so I definitely appreciate the setup there. It's a chain of custody nightmare. Yeah. >>Yes. Yeah. But it's also a wonderful thing because it's allowed us to develop in the paradigms that we have now very fast, you know, you can, you can, you can prototype and design and build and ship very fast, thanks to these tools. So they're wonderful. It's not to say that they're, you know, that there is a gift there, but security has arguably been left as a bit of an afterthought essentially. Okay. So security is always trying to it's at the back of the race. It's always trying to catch up with you. See what I mean? So >>Well, so is there a specific reason why this is particularly timely? Um, in, you know, when we, when we talk about deployment of cloud native applications, uh, something like 75% of what we think of is it is still on premesis, but definitely moving in the direction of what we loosely call cloud. Um, is why is this particularly timely? >>I think really because of the rampant adoption that we see. So, I mean, as you rightly say, a lot of, uh, it companies are still running on a, sort of a, more of a legacy model okay. Where deployments are more monolithic and statics. I mean, we've both been around for a while when we started, you would, you know, somebody would rack a server, they plug a network cable and you'd spend a week deploying the app, getting it to run, and then you'd walk away and leave it to a degree. Whereas now obviously that's really been turned on its head. So there is a, an element of not everybody has adopted this new paradigm that we have in development, but it is increasing, there is rapid adoption here. And, and many that aren't many that rather haven't made that change yet to, to migrate to a sort of a cloud type infrastructure. >>They certainly intend to, well, they certainly wished to, I mean, there's challenges there in itself, but it, I would say it's a safe bet to say that the prolific use of cloud technologies is certainly increasing as we see in all the time. So that also means the attack vectors are increasing as we're starting to see different verticals come into this landscape that we have. So it's not just your kind of a sort of web developer that are running some sort of web two.site. We have telcos that are starting to utilize cloud technology with virtual network functions. Uh, we have, um, health banking, FinTech, all of these sort of large verticals are starting to come into cloud and to utilize the cloud infrastructure model that that can save them money, you know, and it can make them, can make their develop more agile and, you know, there's many benefits. So I guess that's the main thing is really, there's a convergence of industries coming into this space, which is starting to increase the security risks as well. Because I mean, the security risks to a telco are a very different group to somebody that's developing a web platform, for example. >>Yeah. Yeah. Now you, you, uh, you mentioned, um, the sort of obvious perspective from the open source perspective, which is that a lot of this code is open source code. Um, and then I also, I assume that it makes a lot of sense for the open source community to attack this problem, because you're talking about so many things in that chain of custody that you described where one individual private enterprise is not likely to be able to come up with something that handles all of it. So, so what's your, what's your vision for how we address this issue? I know I've seen in, um, uh, some of the content that you've produced an allusion to this idea that it's very similar to the concept of a secure HTTP. And, uh, and so, you know, imagine a world where HTTP is not secure at any time. It's something we can't imagine yet. We're living in this parallel world where, where code, which is one of the four CS and cloud security, uh, isn't secure. So what do we do about that? And, and, and as you share that with us, I want to dive in as much as we can on six store explain exactly what that is and, uh, how you came up with this. >>Yes, yes. So, so the HTTP story's incredibly apt for where we are. So around the open source ecosystem. Okay. We are at the HTTP stage. Okay. So a majority of code is pulled in on trusted. I'm not talking about so much here, somebody like a red hat or, or a large sort of distributor that has their own sign-in infrastructure, but more sort of in the, kind of the wide open source ecosystem. Okay. The, um, amount of code that's pulled in on tested is it's the majority. Okay. So, so it is like going to a website, which is HTTP. Okay. And we sort of use this as a vision related to six store and other projects that are operating in this space where what happened effectively was it was very common for sites to run on HTTP. So even the likes of Amazon and some of the e-commerce giants, they used to run on HTTP. >>Okay. And obviously they were some of the first to, to, uh, deploy TLS and to utilize TLS, but many sites got left behind. Okay. Because it was cumbersome to get the TLS certificate. I remember doing this myself, you would have to sort of, you'd have to generate some keys, the certificate signing request, you'd have to work out how to run open SSL. Okay. You would then go to an, uh, a commercial entity and you'd probably have to scan your passport and send it to them. And there'll be this kind of back and forth. Then you'll have to learn how to configure it on your machine. And it was cumbersome. Okay. So a majority just didn't bother. They just, you know, they continue to run their, their websites on protected. What effectively happened was let's encrypt came along. Okay. And they disrupted that whole paradigm okay. >>Where they made it free and easy to generate, procure, and set up TLS certificates. So what happened then was there was a, a very large change that the kind of the zeitgeists changed around TLS and the expectations of TLS. So it became common that most sites would run HTTPS. So that allowed the browsers to sort of ring fence effectively and start to have controls where if you're not running HTTPS, as it stands today, as it is today is kind of socially unacceptable to run a site on HTTP is a bit kind of, if you go to HTTP site, it feels a bit, yeah. You know, it's kind of, am I going to catch a virus here? It's kind of, it's not accepted anymore, you know, and, and it needed that disruptor to make that happen. So we want to kind of replicate that sort of change and movement and perception around software signing where a lot of software and code is, is not signed. And the reason it's not signed is because of the tools. It's the same story. Again, they're incredibly cumbersome to use. And the adoption is very poor as well. >>So SIG stores specifically, where did this, where did this come from? And, uh, and, uh, what's your vision for the future with six? >>Sure. So six door, six doors, a lockdown project. Okay. It started last year, July, 2020 approximately. And, uh, a few people have been looking at secure supply chain. Okay. Around that time, we really started to look at it. So there was various people looking at this. So it's been speaking to people, um, various people at Purdue university in Google and, and other, other sort of people trying to address this space. And I'd had this idea kicking around for quite a while about a transparency log. Okay. Now transparency logs are actually, we're going back to HTTPS again. They're heavily utilized there. Okay. So when somebody signs a HTTPS certificate as a root CA, that's captured in this thing called a transparency log. Okay. And a transparency log is effectively what we call an immutable tamper proof ledger. Okay. So it's, it's kind of like a blockchain, but it's different. >>Okay. And I had this idea of what, if we could leverage this technology okay. For secure supply chain so that we could capture the provenance of code and artifacts and containers, all of these actions, these actors that I described at the beginning in the supply chain, could we utilize that to provide a tamper resistant publicly or DePaul record of the supply chain? Okay. So I worked on a prototype wherever, uh, you know, some, uh, a week or two and got something basic happening. And it was a kind of a typical open source story there. So I wouldn't feel right to take all of the glory here. It was a bit like, kind of, you look at Linux when he created a Linux itself, Linus, Torvalds, he had an idea and he shared it out and then others started to jump in and collaborate. So it's a similar thing. >>I, um, shared it with an engineer from Google's open source security team called Dan Lawrence. Somebody that I know of been prolific in this space as well. And he said, I'd love to contribute to this, you know, so can I work this? And I was like, yeah, sure though, you know, the, the more, the better. And then there was also Santiago professor from Purdue university took an interest. So a small group of people started to work on this technology. So we built this project that's called Rico, and that was effectively the transparency log. So we started to approach projects to see if they would like to, to utilize this technology. Okay. And then we realized there was another problem. Okay. Which was, we now have a storage for signed artifacts. Okay. A signed record, a Providence record, but nobody's signing anything. So how are we going to get people to sign things so that we can then leverage this transparency log to fulfill its purpose of providing a public record? >>So then we had to look at the signing tools. Okay. So that's where we came up with this really sort of clever technology where we've managed to create something called ephemeral keys. Okay. So we're talking about a cryptographic key pair here. Okay. And what we could do we found was that we could utilize other technologies so that somebody wouldn't have to manage the private key and they could generate keys almost point and click. So it was an incredibly simple user experience. So then we realized, okay, now we've got an approach for getting people to sign things. And we've also got this immutable, publicly audited for record of people signing code and containers and artifacts. And that was the birth of six store. Then. So six store was created as this umbrella project of all of these different tools that were catering towards adoption of signing. And then being able to provide guarantees and protections by having this transparency log, this sort of blockchain type technology. So that was where we really sort of hit the killer application there. And things started to really lift off. And the adoption started to really gather steam then. >>So where are we now? And where does this go into the future? One of the, one of the wonderful things about the open source community is there's a sense of freedom in the creativity of coming up with a vision and then collaborating with others. Eventually you run headlong into expectations. So look, is this going to be available for purchase in Q1? What's the, >>Yeah, I, I will, uh, I will fill you in there. Okay. So, so with six door there's, um, there's several different models that are at play. Okay. I'll give you the, the two predominant ones. So one, we plan, we plan to run a public service. Okay. So this will be under the Linux foundation and it'll be very similar to let's encrypt. So you as a developer, if you want to sign your container, okay. And you want to use six door tooling that will be available to you. There'll be non-profit three to use. There's no specialties for anybody. It's, it's there for everybody to use. Okay. And that's to get everybody doing the right thing in signing things. Okay. The, the other model for six stories, this can be run behind a firewall as well. So an enterprise can stand up their own six store infrastructure. >>Okay. So the transparency log or code signing certificates, system, client tools, and then they can sign their own artifacts and secure, better materials, all of these sorts of things and have their own tamper-proof record of everything that's happened. So that if anything, untoward happens such as a key compromise or somebody's identity stolen, then you've got a credible source of truth because you've got that immutable record then. So we're seeing, um, adoption around both models. We've seen a lot of open source projects starting to utilize six store. So predominantly key, um, Kubernetes is a key one to mention here they are now using six store to sign and verify their release images. Okay. And, uh, there's many other open-source projects that are looking to leverage this as well. Okay. And then at the same time, various people are starting to consider six door as being a, sort of an enterprise signing solution. So within red hat, our expectations are that we're going to leverage this in open shift. So open shift customers who wish to sign their images. Okay. Uh, they want to sign their conflicts that they're using to deploy within Kubernetes and OpenShift. Rather they can start to leverage this technology as open shift customers. So we're looking to help the open source ecosystem here and also dog food, this, and make it available and useful to our own customers at red hat. >>Fantastic. You know, um, I noticed the red hat in the background and, uh, and, uh, you know, I just a little little historical note, um, red hat has been there from the beginning of cloud before, before cloud was cloud before there was anything credible from an enterprise perspective in cloud. Uh, I, I remember in the early two thousands, uh, doing work with tree AWS and, uh, there was a team of red hat folks who would work through the night to do kernel level changes for the, you know, for the Linux that was being used at the time. Uh, and so a lot of, a lot of what you and your collaborators do often falls into the category of, uh, toiling in obscurity, uh, to a certain degree. Uh, we hope to shine light on the amazing work that you're doing. And, um, and I, for one appreciate it, uh, I've uh, I've, I've suffered things like identity theft and, you know, we've all had brushes with experiences where compromise insecurity is not a good thing. So, um, this has been a very interesting conversation. And again, X for the work that you do, uh, do you have any other, do you have any other final thoughts or, or, uh, you know, points that we didn't cover on this subject that come to mind, >>There is something that you touched upon that I'd like to illustrate. Okay. You mentioned that, you know, identity theft and these things, well, the supply chain, this is critical infrastructure. Okay. So I like to think of this as you know, there's, sir, they're serving, you know, they're solving technical challenges and, you know, and the kind of that aspect of software development, but with the supply chain, we rely on these systems. When we wake up each morning, we rely on them to stay in touch with our loved ones. You know, we are our emergency services, our military, our police force, they rely on these supply chains, you know, so I sort of see this as there's a, there's a bigger vision here really in protecting the supply chain is, is for the good of our society, because, you know, a supply chain attack can go very much to the heart of our society. You know, it can, it can be an attack against our democracies. So I, you know, I see this as being something that's, there's a humanistic aspect to this as well. So that really gets me fired up to work on this technology., >>it's really important that we always keep that perspective. This isn't just about folks who will be attending CubeCon and, uh, uh, uh, cloud con uh, this is really something that's relevant to all of us. So, so with that, uh, fantastic conversation, Luke, it's been a pleasure to meet you. Pleasure to talk to you, David. I look forward to, uh, hanging out in person at some point, whatever that gets me. Uh, so with that, uh, we will sign off from this cube conversation in anticipation of cloud con cube con 2021, north America. I'm Dave Nicholson. Thanks for joining us.

>> From theCUBE Studios in Palo Alto and Boston, bringing you data-driven insights from theCube and ETR, this is Breaking Analysis with Dave Vellante. >> When a piece of digital art sells for $69.3 million, more than has ever been paid for works, by Gauguin or Salvador Dali, making it created the third most expensive living artists in the world. One can't help but take notice and ask, what is going on? The latest craze around NFTs may feel a bit bubblicious, but it's yet another sign, that the digital age is now fully upon us. Hello and welcome to this week's Wikibon's CUBE insights, powered by ETR. In this Breaking Analysis, we want to take a look at some of the trends, that may be difficult for observers and investors to understand, but we think offer significant insights to the future and possibly some opportunities for young investors many of whom are fans of this program. And how the trends may relate to enterprise tech. Okay, so this guy Beeple is now the hottest artist on the planet. That's his Twitter profile. That picture on the inset. His name is Mike Winkelmann. He is actually a normal looking dude, but that's the picture he chose for his Twitter. This collage reminds me of the Million Dollar Homepage. You may already know the story, but many of you may not. Back in 2005 a college kid from England named Alex Tew, T-E-W created The Million Dollar Homepage to fund his education. And his idea was to create a website with a million pixels, and sell ads at a dollar for each pixel. Guess how much money he raised. A million bucks, right? No, wrong. He raised $1,037,100. How so you ask? Well, he auctioned off the last 1000 pixels on eBay, which fetched an additional $38,000. Crazy, right? Well, maybe not. Pretty creative in a way, way early sign of things to come. Now, I'm not going to go deep into NFTs, and explain the justification behind them. There's a lot of material that's been published that can do justice to the topic better than I can. But here are the basics, NFTs stands for Non-Fungible Tokens. They are digital representations of assets that exist in a blockchain. Now, each token as a unique and immutable identifier, and it uses cryptography to ensure its authenticity. NFTs by the name, they're not fungible. So, unlike Bitcoin, Ethereum or other cryptocurrencies, which can be traded on a like-for-like basis, in other words, if you and I each own one bitcoin we know exactly how much each of our bitcoins is worth at any point of time. Non-Fungible Tokens each have their own unique values. So, they're not comparable on a like-to-like basis. But what's the point of this? Well, NFTs can be applied to any property, identities tweets, videos, we're seeing collectables, digital art, pretty much anything. And it's really. The use cases are unlimited. And NFTs can streamline transactions, and they can be bought and sold very efficiently without the need for a trusted third party involved. Now, the other benefit is the probability of fraud, is greatly reduced. So where do NFTs fit as an asset class? Well, they're definitely a new type of asset. And again, I'm not going to try to justify their existence, but I want to talk about the choices, that investors have in the market today. The other day, I was on a call with Jay Po. He is a VC and a Principal at a company called Stage 2 Capital. He's a former Bessemer VC and one of the sharper investors around. And he was talking about the choices that investors have and he gave a nice example that I want to share with you and try to apply here. Now, as an investor, you have alternatives, of course we're showing here a few with their year to date charts. Now, as an example, you can buy Amazon stock. Now, if you bought just about exactly a year ago you did really well, you probably saw around an 80% return or more. But if you want to jump in today, your mindset might be, hmm, well, okay. Amazon, they're going to be around for a long time, so it's kind of low risk and I like the stock, but you're probably going to get, well let's say, maybe a 10% annual return over the longterm, 15% or maybe less maybe single digits, but, maybe more than that but it's unlikely that any kind of reasonable timeframe within any reasonable timeframe you're going to get a 10X return. In order to get that type of return on invested capital, Amazon would have to become a $16 trillion valued company. So, you sit there, you asked yourself, what's the probability that Amazon goes out of business? Well, that's pretty low, right? And what are the chances it becomes a $16 trillion company over the next several years? Well, it's probably more likely that it continues to grow at that more stable rate that I talked about. Okay, now let's talk about Snowflake. Now, as you know, we've covered the company quite extensively. We watched this company grow from an early stage startup and then saw its valuation increase steadily as a private company, but you know, even early last year it was valued around $12 billion, I think in February, and as late as mid September right before the IPO news hit that Marc Benioff and Warren Buffett were going to put in $250 million each at the IPO or just after the IPO and it was projected that Snowflake's valuation could go over $20 billion at that point. And on day one after the IPO Snowflake, closed worth more than $50 billion, the stock opened at 120, but unless you knew a guy, you had to hold your nose and buy on day one. And you know, maybe got it at 240, maybe you got it at 250, you might have got it at higher and at the time you might recall, I said, You're likely going to get a better price than on day one, which is usually the case with most IPOs, stock today's around 230. But you look at Snowflake today and if you want to buy in, you look at it and say, Okay, well I like the company, it's probably still overvalued, but I can see the company's value growing substantially over the next several years, maybe doubling in the near to midterm [mumbles] hit more than a hundred billion dollar valuation back as recently as December, so that's certainly feasible. The company is not likely to flame out because it's highly valued, I have to probably be patient for a couple of years. But you know, let's say I liked the management, I liked the company, maybe the company gets into the $200 billion range over time and I can make a decent return, but to get a 10X return on Snowflake you have to get to a valuation of over a half a trillion. Now, to get there, if it gets there it's going to become one of the next great software companies of our time. And you know, frankly if it gets there I think it's going to go to a trillion. So, if that's what your bet is then you know, you would be happy with that of course. But what's the likelihood? As an investor you have to evaluate that, what's the probability? So, it's a lower risk investment in Snowflake but maybe more likely that Snowflake, you know, they run into competition or the market shifts, maybe they get into the $200 billion range, but it really has to transform the industry execute for you to get in to that 10 bagger territory. Okay, now let's look at a different asset that is cryptocurrency called Compound, way more risky. But Compound is a decentralized protocol that allows you to lend and borrow cryptocurrencies. Now, I'm not saying go out and buy compound but just as a thought exercise is it's got an asset here with a lower valuation, probably much higher upside, but much higher risk. But so for Compound to get to 10X return it's got to get to $20 billion valuation. Now, maybe compound isn't the right asset for your cup of tea, but there are many cryptos that have made it that far and if you do your research and your homework you could find a project that's much, much earlier stage that yes, is higher risk but has a much higher upside that you can participate in. So, this is how investors, all investors really look at their choices and make decisions. And the more sophisticated investors, they're going to use detailed metrics and analyze things like MOIC, Multiple on Invested Capital and IRR, which is Internal Rate of Return, do TAM analysis, Total Available Market. They're going to look at competition. They're going to look at detailed company models in ARR and Churn rates and so forth. But one of the things we really want to talk about today and we brought this up at the snowflake IPO is if you were Buffet or Benioff and you had to, you know, quarter of a dollars to put in you could get an almost guaranteed return with your late in the game, but pre IPO money or a look if you were Mike Speiser or one of the earlier VCs or even someone like Jeremy Burton who was part of the inside network you could get stock or options, much cheaper. You get a 5X, 10X, 50X or even North of a hundred X return like the early VCs who took a big risk. But chances are, you're not one of these in one of these categories. So how can you as a little guy participate in something big and you might remember at the time of the snowflake IPO we showed you this picture, who are these people, Olaf Carlson-Wee, Chris Dixon, this girl Sono. And of course Tim Berners-Lee, you know, that these are some of the folks that inspired me personally to pay attention to crypto. And I want to share the premise that caught my attention. It was this. Think about the early days of the internet. If you saw what Berners-Lee was working on or Linus Torvalds, in one to invest in the internet, you really couldn't. I mean, you couldn't invest in Linux or TCP/IP or HTTP. Suppose you could have invested in Cisco after its IPO that would have paid off pretty big time, for sure. You know, he could have waited for the Netscape IPO but the core infrastructure of the internet was fundamentally not directly a candidate for investment by you or really, you know, by anybody. And Satya Nadella said the other day we have reached maximum centralization. The main protocols of the internet were largely funded by the government and they've been co-opted by the giants. But with crypto, you actually can invest in core infrastructure technologies that are building out a decentralized internet, a new internet, you know call it web three Datto. It's a big part of the investment thesis behind what Carlson-wee is doing. And Andreessen Horowitz they have two crypto funds. They've raised more than $800 million to invest and you should read the firm's crypto investment thesis and maybe even take their crypto startup classes and some great content there. Now, one of the people that I haven't mentioned in this picture is Camila Russo. She's a journalist she's turned into hardcore crypto author is doing great job explaining the white hot defining space or decentralized finance. If you're just at read her work and educate yourself and learn more about the future and be happy perhaps you'll find some 10X or even hundred X opportunities. So look, there's so much innovation going around going on around blockchain and crypto. I mean, you could listen to Warren Buffet and Janet Yellen who implied this is all going to end badly. But while look, these individuals they're smart people. I don't think they would be my go-to source on understanding the potential of the technology and the future of what it could bring. Now, we've talked earlier at the, at the start here about NFTs. DeFi is one of the most interesting and disruptive trends to FinTech, names like Celsius, Nexo, BlockFi. BlockFi let's actually the average person participate in liquidity pools is actually quite interesting. Crypto is going mainstream Tesla, micro strategy putting Bitcoin on their balance sheets. We have a 2017 Jamie diamond. He called Bitcoin a tulip bulb like fraud, yet just the other day JPM announced a structured investment vehicle to give its clients a basket of stocks that have exposure to crypto, PayPal allowing customers to buy, sell, and Hodl crypto. You can trade crypto on Robin Hood. Central banks are talking about launching digital currencies. I talked about the Fedcoin for a number of years and why not? Coinbase is doing an IPO will give it a value of over a hundred billion. Wow, that sounds frothy, but still big names like Mark Cuban and Jamaat palliate Patiala have been active in crypto for a while. Gronk is getting into NFTs. So it goes to have a little bit of that bubble feel to it. But look often when tech bubbles burst they shake out the pretenders but if there's real tech involved, some contenders emerge. So, and they often do so as dominant players. And I really believe that the innovation around crypto is going to be sustained. Now, there is a new web being built out. So if you want to participate, you got to do some research figure out things like how PolkaWorks, make a call on whether you think avalanche is an Ethereum killer dig in and find out about new projects and form a thesis. And you may, as a small player be able to find some big winners, but look you do have to be careful. There was a lot of fraud during the ICO. Craze is your risk. So understand the Tokenomics and maybe as importantly the Pump-a-nomics, because they certainly loom as dangers. This is not for the faint of heart but because I believe it involves real tech. I like it way better than Reddit stocks like GameStop for example, now not to diss Reddit. There's some good information on Reddit. If you're patient, you can find it. And there's lots of good information flowing on Discord. There's people flocking to Telegram as a hedge against big tech. Maybe there's all sounds crazy. And you know what, if you've grown up in a privileged household and you have a US Education you know, maybe it is nuts and a bit too risky for you. But if you're one of the many people who haven't been able to participate in these elite circles there are things going on, especially outside of the US that are democratizing investment opportunities. And I think that's pretty cool. You just got to be careful. So, this is a bit off topic from our typical focus and ETR survey analysis. So let's bring this back to the enterprise because there's a lot going on there as well with blockchain. Now let me first share some quotes on blockchain from a few ETR Venn Roundtables. First comment is from a CIO to diversified holdings company who says correctly, blockchain will hit the finance industry first but there are use cases in healthcare given the privacy and security concerns and logistics to ensure provenance and reduce fraud. And to that individual's point about finance. This is from the CTO of a major financial platform. We're really taking a look at payments. Yeah. Do you think traditional banks are going to lose control of the payment systems? Well, not without a fight, I guess, but look there's some real disruption possibilities here. And just last comment from a government CIO says, we're going to wait until the big platform players they get into their software. And so that is happening Oracle, IBM, VMware, Microsoft, AWS Cisco, they all have blockchain initiatives going on, now by the way, none of these tech companies wants to talk about crypto. They try to distance themselves from that topic which is understandable, I guess, but I'll tell you there's far more innovation going on in crypto than there is in enterprise tech companies at this point. But I predict that the crypto innovations will absolutely be seeping into enterprise tech players over time. But for now the cloud players, they want to support developers who are building out this new internet. The database is certainly a logical place to support a mutable transactions which allow people to do business one-on-one and have total confidence that the source hasn't been hacked or changed and infrastructure to support smart contracts. We've seen that. The use cases in the enterprise are endless asset tracking data access, food, tracking, maintenance, KYC or know your customer, there's applications in different industries, telecoms, oil and gas on and on and on. So look, think of NFTs as a signal crypto craziness is a signal. It's a signal as to how IT in other parts of companies and their data might be organized, managed and tracked and protected, and very importantly, valued. Look today. There's a lot of memes. Crypto kitties, art, of course money as well. Money is the killer app for blockchain, but in the future the underlying technology of blockchain and the many percolating innovations around it could become I think will become a fundamental component of a new digital economy. So get on board, do some research and learn for yourself. Okay, that's it for today. Remember all of these episodes they're available as podcasts, wherever you listen. I publish weekly on wikibon.com and siliconangle.com. Please feel free to comment on my LinkedIn post or tweet me @dvellante or email me at david.vellante@siliconangle.com. Don't forget to check out etr.plus for all the survey action and data science. This is Dave Vellante for theCUBE Insights powered by ETR. Be well, be careful out there in crypto land. Thanks for watching. We'll see you next time. (soft music)

>> live from Boston, Massachusetts. It's the queue covering your red. Have some twenty nineteen. You buy bread hat. >> Welcome back here to the >> B C E >> C. We're in Boston, Massachusetts, right. Had summit the six time around for us here. The Cube, proud to be a part of this event. Once again, along with student Eamon. I'm John Walls. And thank you for joining us here on the Cube. Continue our coverage. We're joined by Stormy Peters, who was the senior manager community lead at Red Hat and stormy. Good afternoon to you. Are you going after him? All right. So you think about you know I love that, you know, community lead. You know, in an open source based company. You like Red Hat. Your job is very simply expanded. Evolved ecosystem, Right? So So I mean, how are you? I guess using that that company culture that embedded culture to grow, I think it's already pretty well established. What are your reputation is for how open you guys are right to the community. And what have you What are you doing in terms of leveraging that and trying to expand on that reputation? >> Yeah. Our goal is to make sure we're supporting those upstream communities. So all of all of Red Hat software is open source, and we worked with a whole community of individuals and companies, and the upstream opens our software. And we want to make sure that we're not just contributing features that we want but that were a good player, that we're helping to make sure those communities air healthy. And so, for a number of the projects that were involved in, we actually assigned a fulltime community manager a community lead to help make sure that project is healthy. So we have someone on everything from stuff and Lester Toe fedora Toe Cooper Netease. I'm just making sure the community does, well, >> stormy. You actually did a session for analysts about about a month or so ago, and I've been involved with open source for about twenty years, and you said something that made me do a double take and had to rethink the way I look at this commune unity. And it was we used to think of open source as well. May be I worked on a project, or maybe I spent a little bit time on nights and weekends and it was just kind of giving of time. You said that a majority of people working in this, they've got day jobs that is contribution to this. It's, you know, we understand that companies like IBM and Red Hat and Google often will have that. But the majority of people that are contributing open source now that is their job or a major part of their job. Could you stand a little bit about You know, how we saw that shift? And it's just me that snuck up on. >> So I think it's stuck up on us, all of us. But I really do think it's a fundamental shift that we need to consider so that we can make sure that we're helping the ecosystem the best way possible. So when open Source first started, it was people in their free time. You know, Linus Torvalds had a project he wanted to work on. You had it, it's described. You wanted your desktop to run free software, and so you put your free time into it evenings and weekends. And if you've got a paid job, working on it like that was something to celebrate like that was everybody's dream. And these days, with software becoming more complicated, more complex, and the solutions are even bigger and greater with the cloud there more than a one person project. They're like multi people, multi company projects. And so more and more people are getting paid to work on them and they're getting forty hours a week paid time to work on these projects. They might give more, but they're getting a full time salary. And so how we include not just the individuals but the companies that are paying them to work on it, I think changes how our project's work. I think it's a huge opportunity, >> and I mean talk about that shift a little bit, if you would then and how that has, I would say mature the marketplace. But certainly it's altered the the flows of jobs and innovation and development and all that, because I kind of passed time before now full time and what comes with that? I mean, what challenges come with that we're all of a sudden It is Ah, little, it's it's a little more parent, if you will, right and that you're a little more evident in wherever you're working because it is a full time commitment outs no longer just a of casual or less than full time pursuit. >> Yeah, I think it's a good thing, but I do think adds challenges. So, for example, on boarding process, you used to know when you had an open source software project you've got. Someone was giving up on our two of their evening TTO. Learn your project so you had to make sure that getting started docks worked for them within twenty thirty minutes. Maybe these days, you know, it's really hard to install a lot of this software in twenty or thirty minutes, but someone's doing it is their day job. They're going to have a day or a week. So the on boarding process is different, which I think makes it harder for volunteers and easier for paid volunteers and paid so little a little hard to distinguish. But for people that have all day to do it, they have a little more time to get on board into the on boarding processes are take longer. I think the problem is that we can solve our more complex because someone can spend an entire week. They're not breaking their thought process up like evenings. They have, like, all day. They can work with teams across cos he can pull in lots more expertise. We have a special interest groups and projects like Santos on where we're pulling in different companies to work together. I'm so like we're working on an NFI save with Intel and others. I'm so you get you get more diversity of people that could work on it. That can dedicate more brainpower to in one one setting. >> You can't. Can you talk a little bit about? You've worked on foundations and you support foundations. Talk about special interest groups. It's pay broad and very diverse ecosystem. Sometimes the outside rose like, Oh, it's thie, open source community and like No, no, no. There is not the open source community, their communities and lots of overlap. And they work in Iraq, maybe give us a little bit of context and love to hear some examples of some of the things you're working on. >> Yes, I think the first point is like projects aren't there. How they worked. Their governance isn't isn't static like it's always changing, like you might start a project on your own in your free time and it grew and you convinced all of us to join you. And now there's twenty people working on it and you want to be able to go on vacation and then you want to leave somebody in charge. So do you give him maintainer status? Do you create a board and let people vote? So you create a foundation like someone offers you money? How do you take it like I do? You put it in your bank account. Er, do you have to start it like a nonprofit to take this money? So I think they're constantly evolving. So an example that I have is the foundation we created the set foundation thiss year last year. Recently, um, and stuff has been open. Source It was it was open source created by thinktank acquired by Red. How we created a board of advisors around it to keep all those companies involved. And it had evolved to the point where people wanted to give it money. And so it needed to be something. You know, these companies wanted to collaborate on marketing together, So we created this a foundation as ah directed funded clinics foundation and had, like thirty companies joined in the very beginning, so I think I don't know what the next stage herself will be, but they're always evolving like that. >> But so what does it do if you will? Self? How do you pick projects out if you have thirty? Voice is a lot of voice. Is a lot of people raising their hands and let's look at this. Look at that. You know how to govern that. How do you, ah, assign work? How does all that work in that kind of? That's a really open environment that you're trying to corral a little bit. >> So So we're not trying to corral. We're tryingto like we're >> organized. A better >> word. Better word. >> So that the foundation was was enable people to collaborate on the marketing side, mostly a money side they wanted to give money for, like Suffolk on event. That's happening in a couple of weeks. There's a big annual event they wanted to be able to do Seth days. I'm things that you want to give money to enable it was getting really complicated. Will you pay for the beer and I'LL pay for the food and you know we'LL do it that way. The stuff project technically is led by a group of volunteers will have paid jobs and there's a project lead person for each sub project. And then they have a monthly meeting of all of the the whole project. And then each of those sub projects has a weekly meeting and something that stuff doesn't I think, is really interesting as they record all of their team meetings like it's a video meeting and they record it and they put it on YouTube and people watch the like. I think that's awesome. But it helps them with the time zone problem to record the meeting and put it on YouTube. >> One of the other things that I find really fascinating is many enterprise Cos now you know, we know they're using open source, but they're contributing open source. I remember back the future of open source survey that was done is think it was like half of companies that you know we're using it are also contributing. What do you see? You know, we've talked to users of the show for many years, is toe You know why they see value and why'd you do it, but it would love to hear your take. >> So I do think cos air. They're using open source software, but they're contributing on DH. People talk about what you contribute, the features that you want to see, but I think you contribute to the things you find exciting and that you want to participate in contributions. Starts at like very beginning level of just filing a bug report when you see it are coming to an events and going to the happy hour for that for that project of seven Cluster have won this afternoon. This afternoon. You know there's different get togethers and you participate by meeting the people, telling them how you're using it. I'm telling them what you'd like to see What's cool. I think a lot of people in the open source world, there's an opportunity for the developers to be very close to the users in the way that's harder and proprietary software. And it's really exciting, like if you're working on something and someone comes up and says, Hey, I'm using it and here's what I like Peanuts. It's fun. >> It's working All right. >> How about career advancement? You know, everybody I know in the developer world. It's like, Well, get really is your resume these days? So I gotta imagine that just the skill set and the education is such a huge part for so many companies. >> Yeah, with more people getting paid to work on open source and they can show what they worked on on that it's more, not more coming. It's very easy to move to another job, taking your skill set with you and it's very valued and you even get to keep your community of people that you're working with as you move around and help different companies with that project. How do you >> divvy it up in a community where you know the workload is kind of equally shared? Or there's a fair share of work being done and you and you want to. Maybe some people have a different level of expertise on DH, so there's some policing that kind of has to be done or argus. Some responsibilities assign whatever >> that could be >> a little delicate. Sometimes candidates you won't get the right people doing the right things, and you'LL love, willingness and enthusiasm. But sometimes you do have to kind of decide are you gonna work on this? We're gonna work on that. >> So some projects have done a really excellent job of defining the rolls and assigning them and having like, a mentoring process to get new people there. So, for example, Cooper Netease on the release team, there's like people that worked on the release team. And then, if you're interested, you raise your hand and you like work with the the person that's in that role for, like, an entire release. And so you get like a whole released to be mentored and taught, and then the next year you're the person doing the release and you can mentor somebody else. So I think the process is help with that. And it's, I think there's some really great work. >> You're building the farm team basically right. You're bringing them along on training wheels to a certain degree and then let him ride the bike by themselves, yet makes sense. >> So speaking of getting people ready, there was something new announced this week that I'm hoping you could explain. The Red Hat Universal Base image was explained to me that this is really a subset, Terrell or being roll ready. What Does that mean? How is that going to impact developers? >> Yeah, the idea is to help developers developed in containers on Lenox and in a way that they can so the FBI is based on, Well, it's a subset of rela packages. It's a it's a container, so in the clouds face and that you can develop your app on it. And then you can share that container with anybody. Whether or not there are real user, I'm so you can share it with anybody in the world had them developed on it. But then, when you're done, it is supported on grell and open shift so you can have full enterprise support for that's >> a show like this. Inject new blood new perspective into what you do. But I would assume this is a pretty good recruiting opportunity to in a lot of respects. And you stay pretty busy over the course of these three days, meeting with a lot of new people, meeting a lot of new faces, getting a lot of new ideas, a house to show kind of fit into what you're going to do the other three hundred sixty two days in a year. >> Well, We look forward to this show for three hundred sixty four days a year, so we're always planning foreign prepping for it. It adds energy. It adds excitement. We get to connect with people. They're using the software. Hopefully, they do come to the happy hours or down to the booth and talk to us and say, Here's how we're using it. We hope to get more people involved. People that are using software that want to learn about it, get him more involved. >> Well, you've got a great job of pulling the community together. We wish you continued success in doing that. Thanks for the time today. Here in the Cube. Nice tohave you. >> Thank you very much for having >> that story. Peter is joining us from red hat back with more in just a little bit. You're watching the Red Hat Summit and you're watching exclusive coverage right here on the Q

>> Live from Toronto, Canada, it's the theCUBE, covering Global Cloud and Blockchain Summit 2018. Brought to you by theCUBE. >> Hey, everyone. Welcome back to CUBE's coverage in Toronto for the Global Cloud and Blockchain Summit, part of the big event also happening for two days, Wednesday and Thursday, the Blockchain Futurist Conference, here in Canada. I'm John Furrier, Dave Vellante here. Next guest is the founder and CEO of DigitalBits.io as well as Fusechain and serial entrepreneur and also the mastermind behind this inaugural event. First time a cloud blockchain conference has come together, bringing the two communities together. Al, great to see you. Thanks for coming on. >> Thank you for having me. Thank you for coming to Toronto, Canada. >> It's our pleasure. Certainly as you know, we love cloud. We cover all the big cloud shows. We're dominating that market in terms of coverage and access. And we just started covering blockchain in 2018 with theCUBE, although on SiliconANGLE since 2011 with the written word in journalism. But this is interesting. You are the brainchild behind this event, and I want you to explain why you came up with this event idea because this is the first time that you got two worlds coming together. You're bringing in the cloud DNA, and that can go back to like, classic networking and think big hosting providers, the Exodus and the Equinox of the world. These guys are the same guys who built YouTube's back end and Facebook. Large scale network guys with this new emerging blockchain world because there's some connections points, and it's super important, and no one's ever done that before. What's the motivation behind a cloud and blockchain summit? >> Well, if you think of the internet, all that data, all that traffic, substantial majority of it is flowing through data centers, infrastructure providers globally. And within many of those data centers you have cloud providers, whether it's cloud computing, SaaS, Software as a Service, cloud providers, you name it. And now we have upon us this emerging blockchain technology. Many are referring to it as Web3.0. And I'm obviously a big believer in that this is the next evolution of the internet. We got Internet1.0 in the 90's. We had Web2.0 with social sharing economy and so forth, and along the way, each step you had your first movers, your willing followers, and then the unwilling followed. It's been that powerful the last two occurrences that we saw with the evolution of the internet. Web3.0 is that next thing. First movers, willing followers, the unwilling. Every time you have this something very innovative, obviously there's a big engineering initially starts amongst, you know, a community of engineers, and then it starts to go mainstream. Obviously a lot happens in between conception and going mainstream. And if we look at the 90's, Linux played a substantial role in the acceleration of innovation. It really extracted, you know, it took a different approach to software, really leading open-source. >> It took down some proprietary incumbents - Unix. >> Absolutely, absolutely. And free and open-source software, but it still needed to be supported. Which version of Linux should enterprises embrace? And at that time, it was very important with what we saw emerge with things like Intel, IBM, Dell, HP, and so forth getting behind organizations like Red Hat and their version of Linux, now known as Red Hat Enterprise Linux. >> IBM put in a billion dollars into it. >> Yeah, exactly. >> Steve Woz, yeah. >> So with regard to that, you know, it was all about the hardware validating, right? These trusted vendors to the enterprise. And them kind of validating a company, or endorsing a company, in effect, like Red Hat, really helped provide a guiding light to the enterprise. Now it's not about hardware, it's about the cloud, right? Cloud computing providers and so forth. And in that ecosystem, it's not just AWS. It's not just Microsoft. There are many data center providers that have built a cloud computing offering that are supporting substantial financial institutions, substantial organizations within healthcare space insurance, and many, many other industries. So they play a very important role in supporting an enterprise, whether implementation, integration, and consumption of technologies, including new and emerging technologies. And so as we have, sort of, before us, this emergence of blockchain, obviously having lived in the cloud and infrastructure community for a number of years with that last company I had founded, know a lot of the key stakeholders. And even though I'm all in on blockchain, you know, I pop in every now and then in that world. What I found was two different extremes. You have CTO's and even CEO's of cloud computing organizations, and others within those organizations, totally high "Get It" factor. And you had the other extreme, multi-billion dollar cloud computing organizations, you know, data center organizations, where again, the leadership is still trying to figure it out, in some respects, not fully paying attention yet. And I saw that this is definitely emerging. Again, you'll have first movers, willing followers, and the unwilling. They're all going to get there. But it hadn't gotten there yet. And so with regards to this event, I saw a huge opportunity to really put something out there, allow it to ultimately take a life of it's own. There's a new organizer that's going to be coming forward and driving the ship with this event. But ultimately, there needed to be a forum, not just here in North America, but in every corner of the world, the Global Cloud and Blockchain Summit, providing this opportunity for that convergence, and for both communities to really share knowledge and accelerate, fill that gap. And I saw it's there. It is there. There's amazing things being spoken on stage as we sort of are sitting here, with leading innovators, and so forth, from both sides. There was an amazing keynote today by Anthony Di Iorio, one of the co-founders of Ethereum and founder and CEO of Decentral and Jaxx, really helping support the event today and making a contribution. His talk was phenomenal. That's kind of the thought behind it, and it's, you know, here we are. >> I want to pick up on something you said, for our audience, you know. I mean, for guys like you, Al, that are deep into it, you understand this very well. But you talked about Linux, and how, essentially, the Web was built on Linux. So if you were a Linux developer back in the day, and you wanted to "invest" in Linux, you didn't have a vehicle to do that. You could put your time in, you know? You could maybe join a company and maybe get some stock. But there was no way to directly invest in Linux. Well today, there is. With blockchain and cryptoeconomics, you actually can, whether it's tokenize your business or participate, you can buy tokens. And so it's a whole different incentive structure. And many in our audience are sort of new to this, kind of the unwilling, if you will. >> Yeah. >> And that's an amazing new way to create capital structures. >> And very powerful. I mean, prior to this tokenized revolution we're seeing here, it was a cool open-source project that as an engineer you wanted to be part of this, contribute your time, and quite often you would ask your employer to permit you to have 10%, 20% of your time to commit to these projects. Maybe you would even ask for that in your job interview. And you'd maybe get the thumbs up, you know? And so, your employer's, in effect, subsidizing your time to really contribute to projects and code that you're very passionate about. But if they got busy, economic cycles and what have you, and it's like, "You know what? We need you at 100% focus on your day job." All of a sudden, that community, that open-source community is losing perhaps a very valuable contributor, right? And there's really no way for that direct incentive from that project. And that's really what that is now. Projects can be created. You think of, you know, some blockchain's like an operating system, you now have an, you know, to use the Linux comparison, now let's say an operating system can have it's own incentive, a reward or compensation structure to really help attract engineers and other valuable contributors to not just give birth to a project, but help make it sustainable. >> Yeah. >> And, you know, eventually maybe you're quitting the day job because it's able to be free, open-source, and providing an enlightening self-interest. >> I'm getting some messages here, direct messages, listening to you talk. So I want to share them with you. One guy says, "Hey, Al. What's the deal with the different blockchains? How do I tell?" So I'm not an unwilling. I'm a wanna-believe. I'm not the front-end, but what do I pay attention to? And there's so many different chains. You got people promoting certain things. I don't know whose stats are real. You got two kids in a garage, >> Yeah. >> who just did an ICS. So the question is essentially what's the difference between all these chains? What do I have to look for? Is it latency? Who's solving these problems? What's the big deal, and how do I determine better chain from another chain? Are they all going to work together? >> Yeah. >> What's your thoughts? >> Things are moving incredibly fast right now. And it is difficult to keep up to speed. You know, maybe it was just bitcoin at one time and one chain to focus on. Then there was Ethereum and all these others. Now there's many, many more. So ultimately, it is about information, staying current with that information, doing your due diligence. But you really need to have a community that you're a part of, that you can, kind of, share in your evaluation and monitoring of what's new and emerging. >> So community's important. >> Very important, very important. Just say trusted advisors, trusted peers, and you kind of take a collective approach at this. Nonetheless, we're in this pioneering era, mass innovation happening. What's winning today, you know, may not necessarily be continuing to win tomorrow. But you really need to maintain a discipline, and take a peer approach to staying current. In terms of public chain, private chain, they're all going to play a role, and they are playing a role, in different use cases. There's clearly a use case for private chain within enterprise, within say, you know, trusted circle of supply chain participants. Maybe you want to bring some efficiencies to all that. >> So use case drives the chain. >> Yeah, absolutely. But public chain is a phenomenal phenomenon. Among other things that we hear a lot about it, it's given birth to the ICO. The new way of capital formation that is unbelievably awesome. The world has never seen anything like this, where. >> Explain that. Capital formation dynamic that you're referring to. >> Yeah, so the traditional way, whether it's in Silicon Valley or any other part of the world, you have an entrepreneur that maybe they haven't had a big exit where they can fund their own next venture on their own. You know. Smart intelligent people with a brilliant idea, and they're doing that friends and family route, right? The due diligence checklist isn't that long. It's like, you know what? Love my son. He's the smartest kid on the planet. You know, you give him a few dollars and a few other friends and family, this new emerging entrepreneur. And if there's evolution there, things are picking up traction and so forth, then maybe you're doing an angel round. And there's this sort of structured process that history's sort of define for us. And then from an angel round, you know, you have this early stage company emerging, and new milestones being reached, and then maybe there's a Series A venture capital round, and what have you. And then you have the, you know, the Series A, Series B, and so forth, right? The typical approach to things. A very regimented Silicon Valley has been a dominating force of the venture capital community, and that form of competition >> But the dynamics are different than the venture capital. >> Yeah, so that's the way that we've always, sort of, known, right? Many early stage companies, the process they go through. Many, many meetings behind closed doors, and so forth. >> Cloak and dagger, black box. >> Yeah, so concept of crowdsourcing, still beholden to the financial systems that're up there. How do you really foster community up there? And raise maybe a few million dollars? >> So what you're saying is is that it's easier to raise money now? Easier? >> It absolutely is. You have this new meeting of exchange where you have cryptocurrencies like Ether. And you're basically sharing your idea with the world, and all of a sudden, saying, "Hey, here's our token economics. We'd like to reach some capital." And then whether it's minutes, hours, or even weeks, you have capital coming to you from different corners of the world, and it's coming to you in seconds. Highly efficient. You have these universal currencies now emerging, and it's an amazing sensation, and it's a new form of capital formation, and with capital formation, you have innovation. So I believe that, you know, we're just going to continue to see an acceleration of innovation, globally happening, and not just in certain pockets of the world now, in many, many corners of the world. I mean what's happening in Asia's absolutely phenomenal in the blockchain space as well. It's not just interesting here in North America. In fact, in some respects even more interesting, depending on how you look at it. >> Describe what's happening in Asia. You guys talked about this last night in the fireside chat. >> Well, I mean some of the publicly available information is that you can just simply see, on many of the cryptocurrency exchanges out there, an insane amount of volume, more so than in any other corner of the world. And so you have a very active investor community up there, a trading community, token-buyer community, what have you. >> And where are the pockets? >> Very healthy. >> So it was China, and then things sort of shifted to Japan. >> Well, >> Where do you see the action? >> maybe where the centralized exchange in happening, but I think it's still a lot of the same people. It's not like it got shut down in a country, and those people just lost their desire. They just found an alternative means to continue to participate. >> Right. >> You know, South Korea, it's phenomenal. You have Hong Kong. You have Japan. You have Singapore, among many of the pockets. But then it's everywhere. I mean, you're meeting people from Vietnam, Thailand, India. They're all very active investor communities and utility token buyer communities. And it's very healthy. Yes, you have, you know, a correction every now and then in this market. But you have that with any sort of new, exciting innovation. But it continues to thrive up there. It's phenomenal. >> Yeah, you're seeing one of the main uses of bitcoin to buy alternative currencies. >> Yep. >> That's sucking huge amounts of volume. >> It's an easier currency. I mean, in a matter of seconds or minutes, you can have a currency go from a bedroom in Florida, you know, here in Toronto, to a project in Singapore, or vice versa, without going through bank. >> So again some more couple questions from the crowd. If you want to reach us, tweet us, either direct message or tweet @Furrier @DVellante. Happy to take your questions for the guest. But one says, "Do we buy now?" >> (laughs) >> Second was, "Do this side step the tariffs of the China, Japan, U.S. thing?" Obviously outside of the United States, we're the world power in the United States. But now that power is shifting. You see China and here in Canada, a lot of crypto-DNA here. So interesting. Your thoughts on buying? (chuckles) On the dip? Or crash? Or however you look at it? And then the international dynamic with China and Japan and others? >> So many are seeing it as a dip. I mean, the reality is, if this is new form of capital formation, it does share similar characteristics, nonetheless still to traditional or early-stage investing and venture capital, in many respects. Not every start-up succeeds. In fact, you know, over 90% traditionally don't make it. Even if they make it to a Series A round, they may not make it to a B round, right? And so, the fact that you have, some people kind of are referring to the Wild Wild West. I don't necessarily see it that way. It's just finding it's way, right? And it's going to get to a mature state. >> Well I think people look at the bubble, and they think Wild Wild West, but the interesting thing about it, you know, we talked about it off camera last night, around international is, and no one really knows what the STEEMs will be. This is going to be a completely different landscape than anything we've seen before, whether it's standards or execution. And I hear the argument all the time of "Oh, it's unregulated!" It's really the United States that's taking a more regulatory approach, you know, the SEC is essentially scaring straight everybody and saying, >> Well they're trying to figure it out. >> Well they're trying to figure it out, but also they've kind of slows things down, the process. But that being said, it might not have to be formally regulated. Because you mentioned Linux. The role of self-governing communities is a very interesting dynamic. No one's actually said and analyzed what a regulatory regime, globally, would look like, if you factor in, kind of, the open source concepts, with self governance because communities are very efficient, and we got money involved. >> Yeah. >> It can be even more efficient. That's called a marketplace. >> You know, people have disposable income, and they decide what they want to do with that disposable income. You go to a restaurant, you go buy some groceries, you invest, you maybe buy some commodities, right? And where we put that money, the value we had that we wish we could exchange for something else, some of it goes into some regulatory worlds and some doesn't. I want to go buy some you commodities at the grocery store. I mean, it's a free and open transaction. There's no KYC or AML per se and that happens. >> But food has to get to the supermart. My point is. >> Marketplaces don't require regulation. >> Exactly my point. That's my point. >> Or additional red tape, right? But where we put other capital deaths. So whether you're buying share certificate, early stage investing. There's SEC filings, perhaps. >> Who regulated Linux? >> Who regulated Linux? I mean-- >> (laughs) >> It was self governing. >> Benevolent dictatorship with Torvalds. >> But the capital formation was different in the Linux industry. >> Yeah. >> It was the more traditional path that you just described, and so those were-- >> But I guess what I'm saying is that, you know, have a token. Some token could represent a commodity. Some token could represent a security. So there needs to be that distinction and a framework of clarity so that we understand what needs to be regulated and going on that path. And so I think that's, kind of, part of finding it's way over the past 12 months or so is this distinction. Some countries were very quick to say, "Here's a framework.", like Switzerland. That clarity here is taking some time here in Canada and the U.S. >> Yeah, and I think they should let things foster and incubate a bit because you don't know the gestation period of real technology, and I think I'm cool with community-oriented governance Because people will lose a boatload of case; some will gain. But that'll all sort itself out. And with good community involvement, it'll happen faster. I just find that a better path. I mean, some people can't stay with that tension. They overreact. Some people can't handle the risk. But you got to see how it plays out at some level. >> You definitely do. But there's also an opportunity for self-governance. You know, you have-- There's the regional internet registries, right? So you have ARIN RIPE in Europe and so forth. You know, if you want an IP address and so forth, there's a self-governing body that defines policy and how these things are going to be deseminated here in North America. The government, kind of, sets off with that. >> The DNS system. >> You know, absolutely. This is valuable-- >> Yeah. You know, you have national security with internet, but how IP's are deseminated, it's self-regulated. So at the end of the day, if the community doesn't decide to say, "Hey, some of these things, well let's define self-governing bodies." And if they can play a great role in it all, fanastic. Otherwise, then maybe the government steps in" If that's the type of country it is where they like to engage. >> Al, everyone's reimagining new opportunities with blockchain and crypto. You've certainly got good venture with DigitalBits. We'll certainly have a conversation later here this week about that. I know you got to get back for a panel that you're going to go on now. So thanks for coming on. And congratulations on the inaugural Global Cloud and Blockchain Summit. Looking forward to talking more about it. So theCUBE live in Toronto for coverage of the Global Blockchain event here with cloud. And then tomorrow kicks off the big show here, the Blockchain Futurist, about 2,000 attendees. That's really going to be connecting the dots of the future. TheCube will be there as well. Stay with us for more live coverage after this break.

(soft rock music) >> Announcer: Live from Los Angeles, it's theCUBE. Covering Open Source Summit North America 2017. Brought to you by the Linux Foundation and Red Hat. >> Hello everyone, welcome to a special Cube coverage here in Los Angeles, California for The Linux Foundation's Open Source Summit in North America. I'm John Furrier, co-host of The Cube. This week I'll be co-hosting with Jeff Frick and Stu Miniman who will be here shortly. He's out getting data from the keynotes and scouring the community for information. Two days of coverage of line up here. Open source is changing the world. More than ever, open source is continuing to accelerate. Over 23 million developers now actively programming with open source. Where the world economy is now based on open source, relies on open source, and where open source and code is changing culture. Jeff, had a great keynote from the Linux Foundation open source community, and really this is an accumulation of many, many years of coverage for us in the developer community. Kind of sitting above all the different communities like Stack Overflow, all the different source foundational communities: Open Stack Summit, Cooper Netty's, KubeCon, now CNCF, a variety of other shows, and obviously industry shows. And this is now, we're seeing where open source is becoming so mainstream on a global scale, we're seeing something unprecedented in the history of the computer industry and that is the role of open source in society. And I think the number one message we're seeing is that the Linux software has been around for 25 plus years. Linus Torvalds was on stage today kind of like reminiscing. He's been Time Man of the Year, he's won the Nobel Prize in Computer Science, the Millennial Award I think it's called. Essentially the top award. 17th most important person in this decade. Linux is now a main force. People are relying on open source, and then look no further than the Equifax pact that has changed 150 plus million people in terms of their, potentially identity fraud out there. It's from open source software, so you're starting to see the reliance of open source, where a sustainable ecosystem is continuing to grow, but security is a concern, and which projects to join. There's so much action, I called it open bar and open source. There's so much goodness flowing in from Google, IBM, you name the companies out there. People are being paid to learn and write code at this point in history. This is a historic moment for the open source community. As society starts to be molded by the shape of code in the keynote they call it a Do-Acracy. For doers and builders who are changing democracy on a global scale. This is the big theme and obviously a slew of announcements on a project basis: Certification for Cooper Netty's, new people joining, the CNCF and a variety of different projects. But certainly from our standpoint and theCUBE, we covered a lot of the game of this past eight years. Certainly the Cloud and big data, and the software ecosystem. Software-defined Data Center to software eating the world, Data Science eating the world. This is only going to continue with things like Blockchain, virtual reality. And as fake news and bought networks in the cloud continuing to change the notion of what the source is, not just source code, source of information. More than ever, the role of communities will play a front and center role in all of this. >> Yeah I think that's as big of a deal as the software piece, John, is the role of communities that open source creates. And it's a different way of thinking about things. It's a different way of trying to get more innovation. It's acknowledging that the smartest people aren't necessarily in your four walls. So it's really an attitude, but I want to get your take 'cause there's a couple models of stewardship in the open source world. We're here at Open Source Summit in L.A. Linux Foundation event. Linux Foundation is taking on more and more of the stewardship of many of these projects, kind of bringing it under one roof. We see another model where the stewardship is kind of driven by one particular company, right, that's trying to build a commercial business around an open source stack, but there's a couple companies that have become almost the defacto steward for a new and evolving open source space. How do you see the pros and the cons against those two models. Ya know it's great is you got a great steward, it's maybe not so great is the steward is not so terrific and you get a conflict between the steward of the technology and the actual open source project. >> Well, Jeff, and this is the fundamental question on everyone's mind here, as we continue to see the communities grow. And also the scale out of communities as well as the number of overall lines of code. So a couple of key things, one is: We call it the ruling class, that's the elephant in the room here at the show is, we see it in politics, identity politics shaping our national level and certainly on a global scale. China blocking all block chain, ICOs, and all virtual currencies as of today. You're starting to see the intersection of geopolitics with code. Where the notion of a democracy, or democratization, or do-acracy, as one of the speakers has called it. You can think of code, lines of code, as a vote. You write a line of code, that's a vote into an ecosystem. And we're starting to see these notion of distributed labor, distributed control changing the face of capitalism. Ya know, it's really happening, and the value that corporations are creating in this new model is a real dynamic. And really what's happening is the change from a ruling class, even in the software world. The success of open source has always been based upon self-governance. Self-governance implies a group collective that manages and approves things. That group collective, some would argue, has not been inclusive over the years. Certainly the role of women in tech has been an issue. And so what you have developing is the potential for a ruling class of what shapes the future culture. Certainly there's a no-brainer with women in tech that there should be more women in tech because half the people in the world are women. They're users of software. Software is going to be relied on by all aspects of our world. Not just in Earth but also in Space. So, the notion of ruling class is changing and the inclusion is a huge deal. Onboarding new people. Building on individual successes, and building it together as a group relies on inclusion. It relies on inlcusion of people, and requires inclusion of how the self-governance goes forward. And again, this is a major concept in this world as it evolves because like I said, open source is relied on, people are leaning on it at a tier one level. Software that's powering the telescope in the North Pole, in the Antarctic to Space stations all use Linux. And this is, again, what we're seeing. Getting technology in the hands so people can use code to shape culture. That is ultimately a big thing, we're at a tipping point right now, were at an inflection point, whatever you want to call it. Open source is continuing to grow, and that culture-shaping notion of code equals culture, is really what it's all about, and the role of community is more important than ever. And inclusion is the number one factor in my opinion. >> The other interesting thing to get your take, John, is Android. So Linux has been around for a long time, everybody knows about Linux, and there was lots of flavors and it all kind of aggregated. Android is really growing as a significant factor, and I think it was announced here that Samsung has now joined the project. And there's a really interesting little gizmo now that you can take your Samsung phone, stick it in a docking station, and have it power a big giant screen and a keyboard. And so, ya know, as Android has developed as the power in the handheld devices, it's closer and closer, it's not surpassing what we have in these things. It's another big kind of shot in the arm towards the open source ecosystem that really wasn't as significant as it is today. >> Well I mean the Android Operating System is again, just an operating system in the minds of the tech world. Obviously consumers use it, device, huge market share iOS Android and even other operating systems. Who knows, maybe it'll be the year of Linux on the phone, at some point. But you're starting to see software powering devices. This is the internet of things phenomenon. This is where you start to see trends that build out of that notion, like Blockchain, like A.I. are going to start impacting lives. And that's one thing that Linus Torvalds was saying on stage was, the most rewarding thing in his career with all the accolades aside; the fact that he's had an impact on people's lives has been the number one thing that motivates him. That's what motivates most people. So I would say that the Android significance is one of pure numbers. More market share, more penetration for the user experience. And the user experience is a cultural issue. Back to culture equals code. And, inclusively powering everyone to get involved and be part of it, either as a user or a participant in the community or a coder, really is about deciding the future, and if people do not get involved and are not included, then the ruling class will decide what's best for the culture, and that is not the theme here today. The theme here in open source for the next level is letting the code and the technologists in an open collaborative self-governing way be in communities, be inclusive and shape the culture, letting the code shape the culture. And Android, again, is another straw in the camel's back that allows for more penetration and more influence. More relevance, and continued relevance of technology. Providers, coders, communities and certainly individuals. And again, collective intelligence is a group phenomenon. That is a community powered theme. That is what's going on here and again, this is to me, is very radical disruption to the global society. >> Get your take John, 'cause then you get kind of forking and things kind of move and groove, it's kind of like a river, finds another path, right. And you had the container and docker really drove a lot of activation on the container side. Google comes out strong with Cooper Netty's, another open source project that we just heard at the VMworld a week ago. Pivotal get on stage with Michael Dell and Pat Gelsinger talking about kind of a new derivation that they're kicking out that's not Cooper Netty's. I forget what it's called, a different, cube-something >> John: PKS. >> PKS. >> John: A little container service. >> Continues to evolve and kind of fork. So what's your take on kind of how these things continue to morph. >> Well that's a good point, I mean you're talking about vendors in industry. Industry is a term that they use here it's kind of a polite term for saying companies with a vol for capitalism. And capitalism, one of the factors involved in what's going on here: corporate value is not a bad thing. But capitalism driving the culture is not what it wants. Distributed labor, distributed control, changing the face and capitalism is about the role of open source. So there's a role for industry and corporations. The issue is that as vendors, in the old model, which is put stuff out there, control the standards bodies and influence the industry through their proprietary mechanisms. That's changed and they don't have the proprietary nature but they can try to use their muscle and money. That's not happening anymore, and I think forking, as you mentioned, the ability to take a piece of code and build on it, whether it's a framework or libraries out there. And writing custom code is what Jim Zemlin was talking about with us is the code sandwich. That 90 percent of the software out there is open source and only ten percent is highly differentiated. That is the programming model. So, to me I think forking is a wonderful democracy dynamic in open source. If you don't like it, you can fork it. And if it doesn't make it, then the Do-Acracy voted with their code. So, this a term you call voting with your code. We can use the term in marketing called people vote with their wallet, vote with their feet. In communities, in open source they vote with their code. So to me, forking if a good thing that provides great opportunity for innovation. The issue of vendors pushing stuff out there is what I call the calling the bullshit factor. Communities that are vibrant and sustainable they can call bullshit on this right away. So, companies can't operate on the old model, they have to ingratiate in, they have to make real contribution, and they have to be community citizens. Otherwise you're going to get called out for pushing their vendorware. And that is interesting, and I'm not saying that they are doing that but Pivotal is a great example. Ya know, Pivotal put out a pretty good service, makes Cooper Netty's manageable, Google Cloud engines tied directly to it. So any updates coming from the Google Cloud engine gets updated into Pivotal, that's the value to users. If it sucks, if it doesn't work well, people won't use it. So, voting with your code, voting with your feet, is what people will do. So there's now a new level of triangulation or a heat shield if you will from vendor dominance, throwing their muscle around and even Microsoft is here with Linux. It's a huge testament to the success of Linux, and that's really what it's all about. >> Yeah, Microsoft is here, Intel is here. A lot of big companies are here and a lot of, in the early days, people had issues with the big companies coming in. But, clearly they're a huge part of the ecosystem, they write big checks, they help fund nice events like this. So the last question for you John, before we get into it: Two days of wall to wall coverage, what are you looking for? What are some of the questions that you've got on top of your mind that we'd hope to get some answers over the next couple weeks, or couple days, excuse me. >> Well I saw a great quote up on stage, was called May The Source Be With You. And, it was kind of a Star Wars reference: May the force be with, may the source code be with you, if you will. I'm looking for things that changed people's lives, 'cause the theme in open source now is the reliance of code in all aspects of global life here on earth and in space now as we see it. That the quality of life for society depends on open source. And again, 90 percent of most great software is written in open source, ten percent is differentiated and unique. That's the model they call the code sandwich. It's easy to code, it's easier to get involved. There's more communities that are robust and vibrant. If it impacts the quality of life, so that's one thing. The second thing I'm looking for is, we're looking at some of these new future trends and I've been really thinking a lot about lately as you know in theCUBE, is the role of Blockchains and these really disrupted technologies. We've started to see the power of the user in communities where there's technologies empowering the individual at the same time creating a group dynamic where the groups can build. So, individual success can be part of something that contributes to a group that can build on top of it. That's an open source flywheel that works great. I'm looking for Blockchain, I'm looking for those new technologies that are going to be in that vein. And of course, the outcome is: Does it impact lives, does it make the quality of life better? >> Alright. Well you heard it there, we'll be here for two days of wall to wall coverage. We're at the Open Source Summit North America in L.A. It's pretty funny, right next to Staples Center. John, I don't think we've ever been right downtown L.A. You're watching theCUBE, we'll be back with our next guest after this short break, thanks for watching. (light electronic music)

>> Announcer: Live from San Jose in the heart of Silicon Valley, it's theCube. Covering DataWorks Summit 2017. Brought to you by Hortonworks. >> Hey, welcome back to theCUBE. We are live on day one of the DataWorks Summit in the heart of Silicon Valley. I'm Lisa Martin with my co-host Peter Burgess. Just chatting with our next guest about the Warriors win yesterday we're also pretty excited about that. David Hseih the SVP of Marketing from Qubole, hi David. >> David: Hey, thanks for having me. >> Welcome to theCUBE, we're glad you still have a voice after no doubt cheering on the home team last night. >> It was a close call 'cause I was yelling pretty loud yesterday. >> So talk to us about you the SVP of Marketing for Qubole. Big data platform in the cloud. You guys just had a big announcement a few weeks ago. >> David: Right. >> What are your thoughts, what's going on with Qubole? What's going on with big data? What are you seeing in the market? So you know we're a cloud-native data platform and you know when we talk to customers, we're really, you know, they're really complaining about how they're just struggling with complexity and the barriers to entry and you know, they're really crying out for help. And the good news I suppose is we're in an industry that has a very high pace of innovation. That's great right. Spark has had eight versions now in two years, but that pace of innovation is, you know, making the complexity even harder. I was watching Cloudera bragging about how their new product is a combination of 24 open source projects. You know that's tough stuff, right. So if you're a practitioner trying to get big data operationalized in your company. And trying to scale the use of data and analytics across the company. The nature of open source is it's designed for flexibility. Right, the source codes public, you have all these options, configuration settings et cetera. But moving those into production and then scaling them in a reliable way is just crushing practitioners. And so data teams are suffering, and I think frankly it's bad for our industry, because, you know, Gardner's talking about a, you know, 80% failure rate of big data projects by 2018. Think about that, what industry can survive when 70 or 80% of the projects fail? >> Well I think what's let me push on that a little bit. Because I think that the concern is about, is not about 70 to 80% of the efforts to reach an answer in a complex big data thing, it's going to fail. We can probably accommodate that, but what we can't accommodate is failure in the underlying infrastructure. >> David: Absolutely. >> So the research we've done, suggest something as well that we are seeing an enormous amount of time spent on the underlying infrastructure. And there's a lot of failures there. People would say, I have a question, I want to know if there's an answer and try to get to that answer, and not getting the answer they want, >> David: Yep. or getting a different answer. That kind of failure is still okay. >> David: Right. >> Because that's experience, you get more and more and more. >> David: Absolutely. >> So it's not the failure in the data science side or the application side. >> Actually I would say getting to an answer you don't like, is a form of success. Like you have an idea, you try it out, that's all great. >> So what Gardner is really saying it's failure in the implementation of the infrastructure. >> That's exactly right. >> So it's the administrative and operational sides. >> Correct, it's a project that didn't deliver then resolve. If the end result what you hoped, great. >> You couldn't even answer your question. >> Exactly, couldn't even answer the question. >> So let me test something on you Dave, David. We've been carrying a thesis at Wikibon for awhile that it looks like opensource is proving that it's very good at mimicking, and not quite as good at inventing. >> David: Right. >> So by that I mean if you put an operating, drop an operating system in front of Linus Torvalds he can look at that and say I can do that. >> David: Right. >> And do a great job of it. If you put a development tool same kind of thing. But big data is very complex, a lot of it, an enormous number of usecases. >> David: Correct. >> And open source has done a good job at a tool level and it looks as though the tools are being built to make other tools more valuable, >> David: Ha, right. >> As opposed to making it easy for a business to operationalize data science and the use of big data in their business. Would you agree or disagree with that? >> I yeah, I think that sort of like fundamentally the philosophy of open source. You know I'm going to do my work, something I need for me, but I'm going to share it with everybody else. And they can contribute. But at the end of the day, you know, unlike commercial software, there's sort of no one throat to choke. Right and there's nobody who is going to guarantee the interoperability and the success of the piece of software that you're trying to deploy. >> There's mot even a real coherent vision in many respects. >> David: No, absolutely not. >> What the final product's going to end up looking like. >> So what you have is a lot of really great cutting edge technology that a lot of really smart people, sort of poured their hearts and souls into. But that's a little different than trying to get to an end result. And, you know. Like it or not, commercial software packages are designed to deliver the result you pay for. Open source being sort of philosophically, very different I think breeds you know inherent complexity. And that complexity right now, is I think the root of the problem in our industry. >> So give us an example David, you know, you're a Marketing guy, I'm a marketing gal. >> Sure. >> Give us an example of a customer, maybe one of your favorite examples, where are you helping them? They're struggling here, they've made significant investments from an infrastructure perspective. They know there's value in the data, >> David: Yup. varying degrees as we've talked about before. How does Qubole get in there and start helping this usecase customer start to optimize, and really start making this big data project successful? >> That's a great question. So there's really two things, number one is that we are a SAAS based platform in the cloud and what we do basically is make big data into more of a turnkey service. So actually the other day, I was sort of surfing the internet, and we have a customer from Sonic Drive-In. You know they do hamburgers and stuff. >> Lisa: Oh yeah. >> And they're doing a bunch of big data, and this guy was at a data science meet, talking about. We didn't put him up to this, he just volunteered. He was talking about how we made his life so much easier. Why, because all of the configurations stuff, the settings, and you know, how to manage costs, was basically filling out a form and setting policy and parameters. And not having to write scripts and figure out all these configuration settings. If I set this one this way and that one that way, what happens. You know, we have a sort of more curated environment that makes that easy. But the thing that I'm really excited about is we think this is the time to really look at having data platforms that can you know, build or run autonomously. Today companies have to hire really expensive, really highly skilled, super smart data engineers, and data ops people to run their infrastructure. And you know, if you look at studies, we're about a 180,000 people short of the number of data engineers, data ops this industry needs. So try to scale by adding more smart people is super hard. Right but instead if you could start to get machines to do what people are doing. Just faster, cheaper, more reliably. Then you can scale your data platform. So we basically, made an announcement a couple weeks ago, kind of about the industry's first autonomous data platform. And what we're building, are software agents that can take over certain types of data management tasks so that data engineers don't have to do it. Or don't have to be up at three in the morning making sure everything is going right. >> And from a market segmentation perspective where's your sweet spot for that? Enterprise, SMB, somewhere in the middle? >> The bigger you have to scale. It's not about company size it's really about sort of the scope and scale of your big data efforts. So you know, the more people you have using it, then the more data you have. The more you want automation to make things easier. It's sort of true of any industry, it's certainly going to be true of the big data industry. >> Peter: Yeah more complexity in the question set, >> Correct. >> The more complexity-- >> Or the more users you have, the more it gives. Adds more data sources. >> Which presumable is going to be correlated. >> Absolutely correct. >> Which is we can use a big data project to ascertain that. >> Well in fact that sort of what we're doing. Because we're a SAAS platform we take in the metadata from what our customers are doing. What users, what clusters, what queries, which tables, all that stuff. We basically use machine learning and artificial intelligence to analyze how you're using your data platform. And tell you what you could do better or automates stuff that you don't have to do anymore. >> So we've presumed that the industry at some point of time, the big data industry at some point of time, is going to start moving it's attention to things like machine learning and A.I., you know, up into applications. >> David: Yep. >> Are we going to see the big data industry basically more pretty rapidly into more of inservice or application conversation, or is it going to kind of are we going to see a rebirth, as folks try to bring a more coherent approach to the existing, many of the tools that are here right now. >> David: Right. >> What do you think? >> Well I think, we're going to see some degree of industry consolidation, and you're going to see vendors, you know, and you're seeing it today. Try to simplify and consolidate. Right so some of that is moving stack towards applications some of that is about repackaging their offerings and adding simplicity. It's about using artificial intelligence to make the operational platform itself easier. I think you'll see a variety of those things, because you know, companies have too many places where they can stumble in their deployment. And you know, it's going to be, you know, the vendor community has to step in and simplify those things to basically gain greater adoption. >> So if you think about it, what is, I mean I have my own idea, but what do you think the metric that businesses should be using as they conceive of how to source different tools and invest in different tools, put things together. I think it's increasingly we're going to talk about time to value. What do you think? >> I think time to value is one. I think another one you could look at is the number of people who have access to the data to create insights. Right so you know, you can say a 100% of my company has access to the data and analytics that they need to help their function run better. Whatever it is, that's a pretty awesome accomplishment. And you know, there's a bunch of people who may or may not have 100% but they're pretty close, right. And they've really become a data driven enterprise. And then you have lots of companies what are sort of stuck with, okay we have this usecase running, thank goodness. Took us two years and a couple million bucks and now they're trying to figure out how to get to the next step. And so they have five users who are able to use their data platform successfully. That's you know, I think that's a big measure of success. >> So I want to talk quickly about, if I may about the cloud. >> David: Yeah. >> Because it's pretty clear there are a number of, that there are some very, very large shops. >> David: Yep. >> That are starting to conceive of important parts of their overall approach to data. >> David: Right. >> And putting things into the cloud. There's a lot of advantages of doing it that way. At the same time they're also thinking about, and how I'm going to integrate, the models that I generate out of big data back into applications that might be running in a lot of different places. >> Right. >> That suggests there's going to be a new challenge on the horizon. Of how do we think about end to end bringing applications together with predictable date of movement and control and other types of activities. >> David: Yeah. >> Do you agree that's on the horizon of how we think about end to end performance across multiple different clouds? >> I think that's coming, you know, I think I'm still surprised at how many people have not figured out that the economic and agility advantages of cloud, are so great, that'd you'd be honestly foolish not to, you know, consider cloud and have that proactive way to migrate there. And so there is just you know a shocking amount of companies that are still plotting away, you know, and building their own prime infrastructures et cetera. And they still have hesitancy and questions about the cloud. I do think that you're right, but I think what you're talking about is, you know, three to five years out for the mainstream in the industry. Certainly there are early adopters you know, who have sort of gotten there. They're talking about that now. But as sort of a mainstream phenomenon I think that's a couple years out. >> Excuse me Peter, one of the things that just kind of made me think of was, you know, these companies as what you're saying, that is till had hesitancy regarding cloud. >> Right. >> And kind of vendor lock in popped into my head. And that kid of brought me back to one of the things that you were mentioning in the beginning. Open source, complexity there. >> David: Yep. >> Are you seeing, or are you helping companies to go back to more of that commercialized proprietary software. Are you seeing a shift in enterprises being less concerned about lock-in because they want simplicity? >> You know that's a great question. I think in the big data space it's hard to avoid, you know, sort of going down the open source path. I think what people are getting concerned about is getting locked into a single cloud vendor. So more and more of the conversations we have are about, what are your multi-cloud and eventually cross-cloud capabilities? >> Peter: That's the question I just asked, right. >> Exactly so I think more and more of that's coming to the front. I was with a large, very large healthcare company a week ago, and I said, what's your cloud strategy? And they said we have a no vendor left behind policy. So you know our, we're standardized on Azure, we've got a bunch of pilots on AWS, and we're planning to move from a data warehousing vendor to Oracle in the cloud. Ha so, I think for large companies a lot of them can't control the fact that different division, departments, whatever will use different clouds. So architecturally, they're going to have to start to think about using these multi-cloud, cross-cloud you know, scenarios. And you know, most large companies, given a choice, will not bet the farm on a single cloud provider. And you know, we're great partners and we love Amazon, but every time they have you know, an S3 outage like they had a few months ago. You know, it really makes people think carefully about what their infrastructure is and how they're dealing with reliability. >> Well in fairness they don't have that many, >> They don't, it only takes one. >> That's right, that's right, and there's reasons to suspect that there will be increased specialization of services in the cloud. >> David: Correct. >> So I mean it's going to get more complex as we go as well. >> David: Oh absolutely correct. >> Not less. >> Well David Hseih, SVP of Marketing at Qubole. Thank you so much for joining, >> Thank you. >> And sharing your insights with Peter and myself. It's been very insightful. >> Right. >> So this is another great example of how we've been talking about the Warriors and food, Sonic was brought up into play here. >> David: Exactly, go Sonic. Very exciting you never know what's going to happen on theCUBE. So for David and Peter, I am Lisa Martin, You're watching Day One, of the Data Work Summit, in the heart of Silicon Valley. 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