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

>> live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen. Brought to you by Del Technologies and its ecosystem partners. >> We're back in Del Technologies world. All the action. Fifteen thousand people here. You watching the Cube? The leader in live tech coverage? My name is Dave. Along time here with my co host student, um, in Walter Wall coverage. Drew Schulke is here Vice president of networking product Management at Del Technologies. Good to see you, Drew. >> Thanks for having us. >> You're very welcome. Text coming on. So we're talking networking. It's been an exploding business for you guys. I mean, it's one of the really shining stars of of the portfolio. We're gonna talk a little bit about why, but go back a little bit. Talk about some of the trends and networking over the past several years. Obviously, cloud is changing the way people are looking at networks here, this multi cloud thing, What's going on? >> Well, I think we won the clock back five years ago because that's what I think. We have this seminal moment in networking where we as at the time Della now Delhi emcee took an unprecedented step to say we wanted to segregate the networking stack, for We want the hardware discussion in the software discussion around networking to be distinct on DH. It wasn't, you know, novel for the network at the time, but for the rest of the industry, if you think about the way storage and servers and virtual ization head of all, not really novel. So we were really kind of playing catch up from a networking perspective, and that really opened up a whole new era of covering for us in terms of what we were doing as a networking vendor. You also look at what some of the big hyper scale companies were trying to do with their own networks. And there was this great synergy to put together this cloud computing era networking stack that was fundamentally different than what we've seen for the past twenty years. And we've just seen a massive wave of adoption and moving to this open this aggregated and software to find network ever since. >> So stools up more of a networking guy than I am, he explained to me years ago. Dave, with the Clouds Network's gonna flatten Travis going to go east west, not so much north south, he would draw the diagrams. What did that mean from a from a product perspective for you guys. >> What a member of a proper perspective for us is that we wanted to focus on to your point. This modern networking design, which is you're going to talk about the fabrics. It's all about the fabrics, which is the way we put together that network in the data center to facilitate all that east West traffic. And done correctly, it can scale toe on a massive scale. This is what all the biggest hyper skills air out there running today to support their cloud data centers, which have thousands of servers and thousands of switch, is behind it. So it's a proven model. It could be very, very effective, and ultimately, just in terms of its approach and architecture, the total cost of ownership is significantly lower than what we saw you for the previous twenty years. And then >> just true. It's really interesting, you know, that the challenger of Time is absolutely these distributed systems and it is dis aggregating. At the same time, customers are looking forward to be simplified and, you know, if you can pull things together on DH you look at You know, what I heard on the stage this morning is a lot of the cloud messaging was it was Del Plus Veum wear and partners there to put together that entire solution from a customer. I can't say OK, well, let me get a box and lend me light, load some operating system and take all these other pieces. I can't be building the stack and putting all of these pieces together. So explain how while you're dis aggregating at the end of the day, this is going to be simpler for customers. And operationally, it's something that they shouldn't have to touch too much >> so But by desegregating way, let the software guys do with the software guys do, which is software and software is a powerful tool when it comes to the network that was never really fully tapped until we opened up the switch and allowed it to be, you know, agnostic to the software that was running on top of it. So let me bring up a case in point. Big switch, A big partner of ours who had a big announcement a couple days ago where we're actually entering into an OM agreement. They've got a strong presence here, you know, through their software in that fabric that very, very large and complex fabric. They've done a great job in terms of making that fabric appear to be much simpler than it really is. And it's all about the way you present it in terms of this complexity and how do we manage that? And so our mission in working with companies like big switches to bring a level of simplicity Teo to a piece of the data center that, quite frankly, for the longest time has been thriving on complexity, where people kind of got paid by understanding how complex things were. And it really doesn't have to be that way. Software can be powerful. Software can make lives easier. Software could be an integral part of that transformation story, and networking is no different when it comes to that. >> So you got some hard news? Att, the show today We talked about that. >> Yeah, so a couple of things we have going on. So for one today, we announced a new branding of our networking hardware portfolio. So given that we are powering some of the biggest data centers in the world. We are embracing the power adjective here and going with the power switch brand of networking switches S o joining some of our fellow Delhi and see product lines with that with that power theme on it, I think it's a great transition. And so we're really excited about that. You know, we're going to have some nice themes around flipping the switch from a power perspective, open networking, which a lot of our customers are already doing today. So it's a big one that we have today. Another one that we have is we're announcing a couple of new, actually a new power switches in that portfolio. Some twenty five gigs switches that we're bringing to market really focused on a hyper converge software to find storage use case wherein a great many cases. There's a small cluster that small in size in terms of number of nodes but has a high degree of bandwidth that's required to make it perform. So we've introduced a couple of small poor count twenty five gigs switches as well at the show s so very excited about those being the first to flagship power switch switches that we're bringing to the >> market drops Really interesting. I mean, I worked a DMC and when we worked on some of the package solutions, there was storage networking pieces. But, you know, networking in general, You know, I I had advocated for years. We need to be ableto bundle this together. You want to be able to have that easy button so that I can freakin figure and put everything fainting together there. You can explain that. You know, people think HD either are like, Oh, isn't that have networking all bundled in? How is it tied together? But yet, you know, usually these air kind of separate peace, sis, >> I say, Up until a few months ago, networking was on afterthought from an HD eye perspective. And that's an interesting statement, not just from a deli and see perspective, but leading up to that few months ago. We've been working heavily, for example, with VX rail team, because while hyper convergence has a great story line around collapsing computing storage together in the value prop, there was really, really compelling that working was this kind of well, it's just going to sort of work. But if you took a You know, some deep conversations with customers around problems they saw on deployment and areas where they might be holding themselves back in terms of performance. Of those systems, networking was a common thing. And so for us, it was a no brainer to sit down with the X rail team and say, You know, how do we, you know, force the best practice in terms of the network and just automate the heck out of it? And so what we did is develop a deep set of integrations with the extra manager, where Roos ten operating system can do a handshake with the extra manager and take the number of steps to deploy and Hcea Network and reduce it by ninety six percent. So that's pretty compelling in terms of automation, and we're doing it in such a way that it's always going to be that best practice every time. So there's no guessing on Did I do it correctly? I'm not gonna have a performance issue. Why not just automate that and make it really seem with so great advancements? They're excited about even taking that further with them in additional work down the road next year. >> One of things we're hearing from executives, Adele certainly heard it from From Jeff Clark. Uh, in the analyst breakout this morning is alignment across the portfolio of del companies. Obviously, VM wears a linchpin of your multi cloud strategy. Uh, you can't talk with V M, where executives talked to them without hearing about NSX. So what do you doing with regard to NSX and NSX integration? >> Yeah, great question. So great think. Restoring that we have about NSX is in terms of what it's expecting of what we call the underlay or the physical network that's actually powering the network is they wanted to be fabric based. They wanted to be good at transport and easy to manage. And so a lot of the work that we've been trying to do with them is how do we present that network into an NSX environment so that that physical in virtual network come together in a seamless way? So that's an area that we were spending a lot of time with him. Another area you'LL be moving beyond NSX into other elements that fall within their networking and security business unit is what they're doing at the wide area network. So another big announcement that we have coming out today that I'm really excited to talk about is we've been teaming up with the fellow Claude business within VM Where to deploy what we're calling the s t win. Uh, EJ powered by v m. Where? So this is going to be a turnkey appliance coming preloaded with the fellow cloud software on it running on our new virtual edge products, which is a portfolio of products we added to the networking portfolio about a year ago. And what we believe it's going to go do is enable you know, a significant transformation story of customers that wanna shift to this software to find land. And the economics behind this way don't have enough time in the interview. You need to go into it. But the savings that customers can gain moving to a software defined when strategy just in the transport costs alone with a wider network are compelling. >> Yes, s so just, you know, put a point on that. When when we've looked at multi cloud Esti win is one of those areas that you know, customers said, Oh, this is a real enabler I can't really do multi cloud. I can have a bunch of pieces, but if I want to tie together, if I want to really do anything, they're SD wins. Enablement plain kind of why that is, >> yeah, because ATT the end of the day Look, you're you're sitting there on your call that an end point device and think about the traffic pattern that you're generating as an employee of some of that traffic is going to public Cloud A. Someone's going to public copy. Someone's going to a centralized data center. These traffic patterns, they're becoming more complex. They're carrying more and more traffic as we crank up the band with in terms of what we're trying to support. And so our customers, when they look at that, how did they bring order to that? And if you don't have a software to find approach where you could bring some level of centralization of policy and end the invisibility of all those end points, it's going to become unruly, which, which is what it's become for a great many customers. So it's very rare that I come across the customer that doesn't want to have an ston conversation to your point Because the pain points air, their traffic continues to grow. The multi cloud story means I have to direct it to several different clouds, including my own, including the others. And I gotta have an effective way to go do that. >> What is this? Flip the switch mean? >> Flip the switch. Yeah, great. So you'LL see some people walking around with flip the switch shirts. So in commemoration of our power switch brand that we're announcing today, uh, you know, we want to encourage our customers to flip the switch to open networking to embrace the modern network design that we've been talking about for the past five years that a great many of our customers have been flipping the switch to. So we've been consistently growing about to exit the market in the data center space with what we've been doing with this open networking approach, and we want to crank it up even higher. So we're inviting all our customers toe flip the switch, overto open networking. So >> give us the bottom line. Why? Del Networking summarized it for >> I don't know, working because we're going to be the company that's gonna have the conversation around a modern network that's going to enable you to be a software to find and live in that multi cloud world. Full stop. That's it. Everything we do from the lowest piece of hardware, every piece of software that we work to, the partners that we partner with are all about enabling that journey. And it's a really simple strategy. >> Awesome, Drew. Thanks so much for coming to Cuba. Great. Have appreciated. All right. Keep it right there, buddy. Back with our next guests. Right after this short break, David. Dante was too many men right back.