[Music] thecube's coverage of red hat summit 2022 thecube has been covering red hat summit for a number of years of course the last two years were virtual coverage now the red hat summit is one of the industry's most premier events and and typically red hat summits are many thousands of people i think the last one i went to was eight or nine thousand people very heavy developer conference this year red hat has taken a different approach it's a hybrid event it's kind of a vip event at the westin in boston with a lot more executives here than we would normally expect versus developers but a huge virtual audience my name is dave vellante i'm here with my co-host paul gillin paul this is a location that you and i have broadcast from many times and um of course 2019 the summer of 2019 ibm acquired red hat and um we of course we did red hat summit that year but now we're seeing a completely new red hat and a new ibm and you wouldn't know ibm owned red hat for what they've been talking about at this conference we just came out of the keynote where uh in the in the hour-long keynote ibm was not mentioned once and only appeared the logo only appeared once on the screen in fact so this is uh very much red hat being red hat not being a subsidiary at ibm and perhaps that's justified given that ibm's track record with acquisitions is that they gradually envelop the acquired company and and it becomes part of the ibm board yeah they blue wash the whole thing right it's ironic because ibm think is going on right across the street arvin krishna is here but no presence here and i think that's by design i mean it reminds me of when you know emc owned vmware you know the vmware team didn't want to publicize that they had an ecosystem of partners that they wanted to cater to and they wanted to treat everybody equally even though perhaps behind the scenes they were forced to do certain things that they might not have necessarily wanted to because they were owned by another company and i think that you know certainly ibm's done a good job of leaving the brand separate but when they talk about the con the conference calls ibm's earnings calls you certainly get a heavy dose of red hat when red hat was acquired by ibm it was just north of three billion dollars in revenue obviously ibm paid 34 billion dollars for the company actually by today's valuations probably a bargain you know despite the market sell-off in the last several months uh but now we've heard public statements from arvind kushner that that red hat is a 5 billion plus revenue company it's a little unclear what's in there of course when you listen to ibm earnings you know consulting is their big business red hat's growing at 21 but when i remember paul when red hat was acquired stu miniman and i did a session and i said this is not about cloud this is about consulting and modernizing applications and sure there's some cloud in there with openshift but from a financial standpoint ibm was able to take red hat and jam it right into its application modernization initiatives so it's hard to tell how much of that 5 billion is actually you know legacy red hat but i guess it doesn't matter anymore it's working ibm mathematics is notoriously opaque they if the business isn't going well it'll tend to be absorbed into another number in the in the earnings report that that does show some growth so we've heard uh certainly ibm talks a lot about red hat on its earnings calls it's very clear that red hat is the growth engine within ibm i'd say it's a bit of the tail wagging the dog right now where red hat really is dictating where ibm goes with its hypercloud strategy which is the foundation not only of its technology portfolio but of its consulting business and so red hat is really in the driver's seat of of hybrid cloud and that's the future for ibm and you see that very much at this conference where uh red hat is putting out its uh series of announcements today about improvements to his hybrid cloud the new release of route 9 red hat enterprise linux 9 improvements to its hybrid cloud portfolio it very much is going its own way with that and i sense that ibm is going to go along with wherever red hat chooses to go yeah i think you're absolutely right if by the way if you go to siliconangle.com paul just published a piece on red hat reds hats their roll out of their parade which of course is as you pointed out led by enterprise linux but to your point about hybrid cloud it is the linchpin of of certainly ibm strategy but many companies hybrid cloud strategies if you think about it openshift in particular it's it's the modern application development environment for kubernetes you can get kubernetes you can buy eks you can get that for free in a lot of places but you have to do dozens and dozens of things and acquire dozens of services to do what openshift does to get the reliability the recoverability the security and that's really red hat's play and they're the the thing about red hat combining with linux their linux heritage they're doing that everywhere it's going to open shift everywhere red hat everywhere whether it's on-prem in aws azure google out to the edge you heard paul cormier today saying he expects that in the next several years hardware is going to become one of the most important you know factors i agree i think we're going to enter a hardware renaissance you've seen the work that we've done on arm i think 2017 was when red hat and arm announced kind of their initial collaboration could have even been before that today we're hearing a lot about intel and nvidia and so affinity with all of these alternative processes i think they did throw in today in the keynote power and so i think i heard that that was the other ibm branding they sort of tucked that in there but the point is red hat runs everywhere so it's fundamental to building out hybrid cloud and that is fundamental to a lot of company strategies and red hat has been all over kubernetes with openshift it's i mean it's a drum beat here uh the openshift strategy is what really makes hybrid cloud possible because kubernetes is what makes it possible to shift workloads seamlessly from platform to platform you make an interesting point about hardware we have seen kind of a renaissance in hardware these last couple of years as these specific chipsets and uh and even full-scale processors have come to market we're seeing several in the ai area right now where startups are developing full-blown chipsets and and systems uh just for ai processing and nvidia of course that's that's really kind of their stock and trade these days so uh a a company that can run across all of those different platforms a platform like like rel which can run all across those different platforms is going to have a leg up on on anybody else and the implications for application development are considerable when you when you think about we talk about a lot about these alternative processes when flash replaced the spinning disk that had a huge impact on how applications are developed developers now didn't have to wait for that that disc to spin even though it's spinning very fast it's mechanical compared to electrons forget it and and the second big piece here is how memory is actually utilized the x86 you know traditional x86 you know memory everything goes through that core processor intel for years grabbed more and more function and you're seeing now that function become dispersed in fact a lot of people think we're moving from a processor-centric world to a connect centric world meaning connecting all these piece parts alternative processors memory controllers you know storage controllers io network interface cards smartnics and things like that where the communication across those resources is now where a lot of the innovation is going you see you're seeing a lot of that and now of course applications can take advantage of that especially now at the edge which is just a whole new frontier the edge certainly is part of that equation when you look at machine learning at training machine learning models the cpu actually does relatively little work most of it is happening in gpus in these parallel processes that are going on and the cpu is kind of acting as a traffic cop and you see that in the edge as well it's the same model at the edge where more of the intelligence is going to be out in discrete devices spread across the network and the cpu is going to be less of a uh you know less of a engine of intelligence at the same time though we've got cpus with we've got 100 core cpus are on the horizon and there are even 200 and 300 core cpus that we may see in the next uh in the next couple of years so cpus aren't standing still they are evolving to become really kind of super traffic cops for all of these other processors out in the network and on the edge so it's a very exciting time to be in hardware because so much innovation is happening really at the microprocessor level well we saw this you and i lived through the pc era and we saw a whole raft of applications come about as a result of the microprocessor the shift of the microprocessor-based economy we're going to see so we are seeing something similar with mobile and the edge you know just think about some of the numbers if you think about the traditional moore's law doubling a number of transistors every let's call it two years 18 to 24 months pat gelsinger at intel promises that intel is on that pace still but if you look at the apple m1 ultra they increased the transistor density 6x in the last 15 months okay so where is this another data point is the historical moore's law curve is 40 that's moderating to somewhere down you know down in the low 30s if you look at the apple a series i mean that thing is on average increasing performance at 110 a year when you add up into the combinatorial factors of the cpu the neural processing unit the gpu all the accelerators so we are seeing a new era the thing i i i wanted to bring up paul is you mentioned ai much of the ai work that's done today is modeling that's done in the cloud and when we talk about edge we think that the future of ai is ai inferencing in real time at the edge so you may not even be persisting that data but you're going to create a lot of data you're going to be operating on that data in streams and it's going to require a whole new new architectural thinking of hardware very low cost very low power very high performance to drive all that intelligence at the edge and a lot of that data is going to stay at the edge and and that's we're going to talk about some of that today with some of the ev innovations and the vehicle innovations and the intelligence in these vehicles yeah and in talking in its edge strategy which it outlined today and the announcements that are made today red hat very much uh playing to the importance of being able to run red hat enterprise linux at the edge the idea is you do these big machine learning models centrally and then you you take the you take what results from that and you move it out to smaller processors it's the only way we can cope with it with the explosion of data that will be uh that these sensors and other devices will be generating so some of the themes we're hearing in the uh announcements today that you wrote about paul obviously rel9 is huge uh red hat enterprise linux version nine uh new capabilities a lot of edge a lot of security uh new cross portfolio capabilities for the edge security in the software supply chain that's a big conversation especially post solar winds managed ansible when you think about red hat you really i think anyway about three things rel which is such as linux it powers the internet powers everything uh you think of openshift which is application development you think about ansible which is automation so itops so that's one of the announcements ansible on azure and then a lot of hybrid cloud talk and you're gonna hear a lot of talk this week about red hat's cloud services portfolio packaging red hat as services as managed services that's you know a much more popular delivery mechanism with clients because they're trying to make it easy and this is complicated stuff and it gets more complicated the more features they add and the more the more components of the red hat portfolio are are available it's it's gonna be complex to build these hybrid clouds so like many of these so thecube started doing physical events last summer by the way and so this is this is new to a lot of people uh they're here for the first time people are really excited we've definitely noticed a trend people are excited to be back together paul cormier talked about that he talked about the new normal you can define the new normal any way you want so paul cormier gave the uh the the intro keynote bidani interviewed amex stephanie cheris interviewed accenture both those firms are coming out stephanie's coming on with the in accenture as well matt hicks talked about product innovation i loved his reference to ada lovelace that was very cool he talked about uh serena uh ramyanajan a famous mathematician who nobody knew about when he was just a kid these were ignored individuals in the 1800s for years and years and years in the case of ada lovelace for a century even he asked the question what if we had discovered them earlier and acted on them and been able to iterate on them earlier and his point tied that to open source very brilliantly i thought and um keynotes which i appreciate are much shorter much shorter intimate they did a keynote in the round this time uh which i haven't seen before there's maybe a thousand people in there so a much smaller group much more intimate setting not a lot of back and forth but uh but there is there is a feeling of a more personal feel to this event than i've seen it past red hat summits yeah and i think that's a trend that we're going to see more of where the live audience is kind of the on the ground it's going to the vip audience but still catering to the virtual audience you don't want to lose them so that's why the keynotes are a lot tighter okay paul thank you for setting up red hat summit 2022 you're watching the cube's coverage we'll be right back wall-to-wall coverage for two days right after this short break [Music] you