>> Live, from Las Vegas! It's theCUBE! Covering the VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Welcome back. We're in Las Vegas, and you're watching theCUBE's exclusive coverage of VMworld 2018. I'm Stu Miniman joined by my cohost Justin Warren, and happy to welcome to the program for the first time, James Labocki, who's a director of product management with Red Hat. And joining him is CUBE alum, Rob Young, who's the lead manager of virtualization product management strategy, also with Red Hat, wearing the shadow man logo. Rob, James, thank you so much for joining us. >> Great to be here >> Thanks for having us. >> Alright, so Rob, we touch base with Red Hat at a number of shows, you know, Red Hat Summit. We spoke with you last year at VMworld. Give us the update, Red Hat's got a nice booth here at the show, A lot of things going on, Red Hat plays in a lot of the multi-cloud environments that I hear VMware talking about, so, talk about your presence here. >> So, Red Hat has done quite a bit of growing over the course of the last year that we talked. We are focused on not only where our customers are today, but also on how our portfolio needs to evolve to where they aspire to be. And by that, I mean, RHEL is still the foundation of our business. We have Red Hat Virtualization, we have OpenStack Platform, we have the OpenShift, as you know, and what we're learning from our customers and the market, is that, on top of RHEL, customers have not only a footprint in the virtualization world, but they have an aspiration to evolve along with the market to more of a containerized world that is managed, orchestrated, delivered via Kubernetes, and we feel that our portfolio is well positioned with the pillars of our business from infrastructure to application middleware all the way through management, to allow them to act on those aspirations, not in the future but right now. So that's where we are. Our strategy is build around that vision and around that level of enablement and market dynamic, right now, so we're excited, would you agree? >> Yeah absolutely. A lot of interest in OpenShifted option, whether that's on the Vmware platform itself, out on the public clouds, and then on KVR, KVM based hypervisors with Red Hat Virtualization OpenStack Platform as well. >> Yeah it's interesting because, I've watched this adoption of containerization in the marketplace. What's the line I hear from Red Hat? It's like, Linux is containers, containers are Linux. >> Hey you got that good. >> Yeah I got the t shirt too. But, you know, here at VMworld, some people are still trying to understand that virtualization versus containers and, "How do I stack things?" "How do I do that?" What do you hear from customers? Where is their head at? Talk to us about, you know, it's pervasive in the product line so how do you think about it internally too? >> Yeah absolutely so, I think containers are absolutely Linux and Linux is fundamental to containers, so I think one of the most interesting paradigms that we're seeing, or one of the interesting trends we're seeing is that as people are beginning to adopt containers, they're also beginning to realize that they're looking to simplify their environments as they do that. And so it's presenting a lot of new opportunities and reinvigoration of other technologies. So things like traditional virtualization that they have in place today, they're looking at, maybe bringing along KVM and starting to orchestrate containers and virtual machines with Kubernetes in a consistent manner across both on-premise and public cloud providers. So, we're really excited to be involved in projects around that. We're helping drive the adoption of that. And with that reinvigoration of KVM as a hypervisor, based on that work, to bring a common orchestration layer we're seeing even reinvigoration of the ecosystem around KVM with partners of ours like Trilio, Maxta, Veeam, and so on and so forth, which have been kind of discussed in... >> Yeah, Sorry. >> Well I was just going to add to what Dave said. What we see also happening is that the Linux market 25 years ago was open-source, contributor laden. Red Hat was fully engaged there, we are seeing that very same dynamic happening in the Kubernetes environment. We actually see that as very much the equivalent of what Linux was 25 years ago, so we are contributing upstream to the Kubernetes project, but our goal really is not only to stabilize and build out Kubernetes, but also to bring the virtualization aspect that we had brought into KVM and to virtualization into the Kubernetes project and community so that we can get rid of an additional layer of complexity around the hypervisor allowing containers to be managed and deployed and to have the same isolation levels that you have with VMs now. So all that is in process now. We've got upstream work going on and we're leading a lot of those contributions in the Kubernetes community, specifically via the Kubert project so anyway... >> Leads nicely into what I wanted to ask about which was, Red Hat has a long history of open-source, and open-source is a really important part of containers in general. What are you seeing for enterprises in their adoption of open-source? I mean clearly you've watched it go from something which was once verboten, to now it's pretty much de facto. So what are you seeing customers using open-source for in this new cloud and container world? >> Yeah so I think, you know, the typical pattern we see is a lot of times previously people would look at open-source as a way to commoditize and reduce cost. That was the beginning of open-sources right, with the UNIX to Linux migrations and things of that nature. Now, open-source and really Linux is at the forefront of a lot of the innovation happening, so customers are using both those, basically, techniques inside of their environments to embrace open-source. So at one point, they're using their Linux skills to commoditize things inside their environment or reduce cost. They're also looking at it as the basis of containers, microservices, machine learning, so on and so forth, so really this common skillset of Linux is kind of on both sides, and it's really rooted in the open-source knowledge and methodologies that our customers need to be able to... >> You hit the nail right on the head when you mentioned that everything that has to do with the new modernization of the data center built on containers is open-source, and Red Hat's participation in the community is we already have credibility in the Linux world and the OpenStack world and the KVM world and the Kubernetes world as well, and what we're seeing on the customer side, specifically enterprise and public sector is, they are embracing open-source. They've actually got strategies that named open-source as part of the criteria for proof of concepts and things like that, and we believe we've been preparing for this moment for the last 25 years, for the market to really see this as an open opportunity, not only for open-source and communities, but also to enable their development staffs to extend and participate in those projects to their advantage, so it's a really good thing, for a Red Hat market. >> Yeah it's certainly encouraging to see it. Having watched it develop, it's been really nice seeing that actually get used with enterprises, and seeing that Red Hat is there, the whole way through that and as a trusted partner I'm sure gives them a lot of confidence. >> One thing I would add is just, it's not just about the ability to deliver open-source and to use it, although delivering that with along lifecycle is something that is a core competency of Red Hat as a company, but also the ability to actually affect change in those communities and get contributions back in is really key. And then, even advising customers on how to do that is something that we're, it's just to say, "Hey we do open-source," but actually providing that lifecycle around it is a whole nother story. >> Red Hat has a lot of experience living in a lot of different environments, just Linux is pervasive in the data center and in the cloud. When you talk about multi-cloud, customers need to figure out how to deal with these multi-could environments and you know, multi-cloud, multi-hypervisor, how does Red Hat help customers through this journey? >> So there's, we have a really good story there and really good enablement. There are basically four footprints that you can deploy an application on, physical, virtual; public, and private cloud, and red hat portfolio deploys nicely there, RHEL, VMs, OpenStack, OpenShift, containers, you name it. So our approach is, not only do we allow the deployment there, but also the management of it as well, and we agree with you wholeheartedly, workloads are portable, they're mobile, people are going to move them between clouds, on site, they're going to burst into clouds, so our solution to that is the management console that we provide with CloudForms, and our management vision going forward for software as a service and some other things that we're doing, is all about that heterogeneous environment. Multiple hypervisor, multiple cloud providers, multiple OSs as well, so, you know, we want people to see Red Hat as a platform to stabilize on, not a solution where they have to go out and cobble together a solution. They should be able to do everything with our product in a portfolio from a single management console, including that heterogeneous environment with multiple hypervisor, multiple cloud. So that's how we approach it and we're building on that concept, not only with CloudForms, but also with the new CoreOS Tectonic Platform that we just, acquired, that'll be part of OpenShift, and then going forward our management business unit is working on software as a service, consumption based model that allows customers to do the same thing from their phone as an example. It's that vision that we've already executed on, but it's only going to get bigger going forward. >> One thing I would add is, one thing that's fundamental to our vision is that we're actually delivering a consistency across all those footprints so, it's not one version of Kubernetes for public cloud, another version for on-premise, a different automation tool here and a different automation tool there, it's consistent right? Ansible automation across bare metal on-premise, virtualization, private, public cloud, OpenShift with the foundation of RHEL, consistent across all those for one version of Kubernetes across all of them. So I think that's a big key differentiator as opposed to some of the other visions where you have one version on public cloud, one version on private, different disparate tools tools for each of those. We really believe in simplifying that from a complexity standpoint. >> Well Rob and James, really appreciate you giving us the update on Red Hat. We'll be back with lots more coverage from VMworld 2018. For Justin Warren, I'm Stu Miniman, thanks for watching theCUBE.

live from San Francisco it's the cube covering Red Hat summit 2018 brought to you by Red Hat hey welcome back everyone we're here live in San Francisco red hat summit 2018 s cubes exclusive coverage we're out in the open in the middle of floor here as open source has always done out in the open it's the cube doing our part extracting the cylinders I'm John for the co-host of the cube with John Troy you might coast analyst this week he's the co-founder of a firm advisory firm our guest case is Paul Comey a president and products on technology of Red Hat architecting the future of red hat and products and technologies all open source great to see you again major see you so thank you coming on so great keynote today you guys have done a great job here I thought the messaging was great but the excitement was strong we just came back off of a week in Copenhagen coop con where kubernetes clearly sees the de facto standard around kubernetes the core kubernetes with a lot of room to differentiate around you got sto service meshes a lot of exciting things for application developers and then under the hood and the new life being brought into OpenStack so there's clear visibility now into what's going on swim lanes whatever we call it people kind of see it so congratulations thank you magical moment Lucky Strike all on the cards give us some color you guys been working on this for a while go back and where did it all start and when did things start clicking together for you guys well I know I sometimes sound like a broken record here but I mean the key to our success is the commercialization of Linux I mean you know Linux we started Linux as a commodity play you know it was cheaper cheaper almost as good et cetera but it became such a powerful platform all the innovation you just talked about is built around Linux it's all tied into Linux so once we lay down the Linux base and the customer and the customer data centers which is such the logical extension to go to these new technologies because it really you really need to be a Linux vendor in order to be able to do a kubernetes to release to be able to support our containers release any of these things it's all just intertwining the Linux and your model is working honestly the open source is no secret that that's open open it's over proprietary and closed but you also have a community model that's feeding into the price of technologies Jim Weider zzyx you know went into detail on hey you don't you know you have a crystal ball and technology because you're smart guys but ultimately the users in the communities give you direct feedback of what's relevant and cool at the right time this is really where kubernetes Lucky Strike for you guys was really there you saw it so the commitment you jumped in can you explain that dynamic of how the products get fed in from the communities I'll give you actually a better example of OpenShift itself so we originally started OpenShift back in 2011 and we started it as a marketing project we started it as a as a cloud-based platform to get developers out there building to our platform and a lot of our customer base saw it and came to us and said I want this as a product this is really really powerful so we made a product out of it first one kubernetes wasn't around containers weren't around we'd built it on virtual machines we had we had what we called gears to lock in and and then containers started to morph in and read by release three we transformed it to containers then we brought in kubernetes because we had worked with the Google folks earlier on that so we really listened to our customers we started at something we thought was going to be an expense and it turns out to be you know one of our hottest our hottest platform right now based on what our customers in the community told us timings everything - and the good timing is as the clouds took the scale started also becoming relevant you see Amazon success now you got as your IBM and everyone's kind of seeing that opportunity how are you guys looking at the container piece because you know we can look at the history and docker you know trying to monetize too early we've been you know we've documented that it went well in the cube many times core OS a recent acquisition big one for you guys and strategic but also a great team containers are super important talk about the role of containers specifically not so much as a business model but as a lynchpin right between how orchestration is moving and how these service messages are coming out I mean you think just real quickly what containers are first containers are just Linux carved up in a different way you still have a kernel still have user space the difference is you take just the user space you want with the application and you run it that way so all the same life cycles security issues you have to fix etc they have to do on a standard Linux have to do it in containers the first thing containers been around forever they were in units if we all if we all remember but the killer app for containers was because now when I can bring just enough two of the OS with the application I can run that to the cloud that's how we get the app out to the cloud that's how we get it onto the private cloud out to any of the public clouds how we reverse the clouds so even though they've been around for a while it's the killer app for containers so you mentioned hybrid cloud hybrid cloud multi-cloud are there are the terms it's this week we hear them a lot that been up on stage one way of putting it is is thinking about that different places of deploying but in one you are really saying that it doesn't matter where you deploy there's there's layers of an especially openshift can take you to different clouds it location doesn't matter anymore can you drill down on that a little bit absolutely I mean our our whole we took a bed I mean it sounds obvious now it always does right we took a bed on hybrid cloud I've been talking about it for six or seven years and what it means is customers are going to have applications that run on bare metal they're going to have running as virtual machines probably on VMware they're going to maybe run their private clouds maybe containers maybe across multiple clouds end of the day it's it's Linux underneath that what customers don't want is five different operating because every Linux is slightly different they don't want five different operating environments they want and want one so what we do with rel and with openshift is we give you that abstraction layer for your application to code once and you can move that app anywhere I mean the clouds the public clouds have brought a tremendous amount of innovation and I don't want to say this in a derogatory way but in some sense they're like a mainframe because they have their stack all the way up to there a flick their products are their services and so you start you start up you start up a service of server lists of lambda that's never leaving Amazon never so so it's great in many cases if that's ok for that app but there's a lot of cases you might want to run the app here one day and there the next day so you really need an abstraction layer to ensure that you have that portability and that's what shift and containers are so important right I hear things like de-facto standard and abstraction layers the bells go up opportunity because you now that's where complexity can be reduced down when you have good at rational layers but we've been interviewing folks here and the some themes have come up about the sea change that we're facing this cloud scale new Internet infrastructure going on globally and the two points are tcp/ip moment you know during that time that was networking even and that disrupted decnet today and others and then HTTP both are different HTV was all new capabilities the web disrupt the Direct Mail and other things analog leaving but he stupid created inter inter networking basis right Cisco and everything else here what containers what's interesting and I want to get your reaction to this is that with containers I don't have to kill the old to bring in the new I can do the new and then let the lifecycle of those workloads take a natural natural course this is a good thing for enterprise they don't have to rush in do a rip and replace they don't have to react attacked hire new people at massive scale talk about that dynamic is that seems to be what's happening it's exactly what's heavy you know we did a bunch of demos on stage this week I think nine of them live the coolest demo was the one where we showed we actually took a Windows virtual machine with a Windows SQL based virtual machine from VMware with tools we brought that over to a KVM environment which is it's a different format for the VM brought that to a KVM environment we then use tools to slice it up into two containers one being the app itself the other being at SQL and we deployed it out to openshift and we could eventually have deployed out to any public cloud that's significant for two reasons first of all you're now seeing kubernetes orchestrating VMs right beside containers so you can kind of see where that's going right so that's really that's interesting for the operators now because now they get they bring whittled down some of that complex it's really interest interesting for the developers because from a perspective they're going to be asked to bring these traditional virtual machines into containers in the old world they have to go to a VMware front-end to do that then they have to come over here to a route to a to a rev or rel front-end to do it now they can just bring their VM with tools over work on it split it up into containers and deploy it it's it's its efficiency adds at its best and shift without any effort without any effort really how about the impact of the customers because this is to me that the big money moment because that means an enterprise can actually progress and accelerate their digital transformation or whatever they got going on to a new architecture a new internet infrastructure we hear things like Network effect decentralized storage with with blockchain new capabilities that aren't measured by traditional older stacks that we've seen an e-commerce DNS and other things so a shifts happening the shifts have a cloud scale I say synchronous the pile are these cars with a scalable whole new way let's see what does that mean for customers what it means for customers is two things that are important the shift is happening you're getting tools and you're getting tools and platforms to make that shift more seamless and you know I'd love to say it's all red head engineers that are giving you this but the reason why it's moving so fast is because it's open so the innovation comes from anywhere it's way too big of a problem for any one customer to solve where we're just helping our customers consume it that's one thing but I think the other thing is important is that's important is not every application is going to be suited to go to a container based application so because it's all on that rel common layer our customers can still have one operating environment and have have compatibility as they do the shift but still keep their business going over here maybe forever these apps may never come off a bare-metal for example Paul I wanted to talk a little bit about Red Hat scope inside IT I love the the connection that between you know the container layer that is just Linux but and also the standards layer but you know now that we're up at threat you know with the with open shift and with multi cloud you know global huge scale operation there's a lot there's a lot more involved right cloud layout level ops is you now at Red Hat is involved with with process and and culture and you have a lot more than just you have a lot more that you're involved in helping IT with than just a Linux and some and connection to the back to the machine so can you talk a little bit about about what you're trying to do with the customer great it's a great point then when I started with a company 17 years ago we weren't talking to CIOs in fact the CIOs we were in that we were coming in the back door the operations people were bringing Linux in the back door and they the CIOs didn't even know it was run in there and but now as you said we're CIOs are trying to figure out how does public cloud fit into my IT environment how does a multiple public cloud fit in out of containers fit in what do I do with my older applications where there re architecting that's at the cio level now you know they're having to re architecture architect for the next generation computing so we've had to build services around that we have labs we have innovation labs where we bring our customers in and work with them and help them you know figure out and help them map out where they're going for the first time we actually I've had cut many customers tell me so is this is the with openshift it's the first time I've got my developers in my Ops people in the same room and we've facilitated that discussion because no one's right it's gotta be one one motion and so that's that's the interesting part for us we've really moved up the chain and our customer base because we're almost a consultative sale now to help them get to the next generation talk about the enabling aspect of this because I referenced tcp/ip and HTTP but now if you go forward and say okay we're gonna have this new environment it's not just about redheads by Linux it's about the operating system which you guys obviously offer for free and then have services around it and have stopped software how is Linux with the new capability of open shift and standards like kubernetes with containers how in your opinion is that an enabling an opportunity for ecosystem new startups and enterprises themselves because we see if this happens and continues to happen oh yeah it's going to be a new names gonna come out of the woodwork new startups gonna happen you see you see it every day I mean you wouldn't do a start-up today that wasn't software wise it wasn't based on Linux and and and that's why in all the innovation today because all the innovation today is based on Linux you know one of the things we and that we released last week a cube con is I don't know if you saw it or not we released a kubernetes SDK and it can track or OS it couldn't came with the core OS guys we put that out into the community it's really an SDK for ISVs and software but vendors to build into the api's of kubernetes in an open way so that once they get out into the commercial world they're ready that's how significant we all think that kubernetes is going to be i we think that's where the services are going to hang in the infrastructure but but having said that I think it also tells you that you know the impact that these open technologies are having on the future I wanna get into the chorus in a minute but I want to ask you about the white spaces so if someone who's that in charge of the troops inside Red Hat products and technologies where's the white space opportunities that people can dig in and and build out innovation around this major shift that you guys are on this wave where's the opportunity for the channel partners the integrators globe last night's developers anyone where's the key areas I mean with our platforms of open shift and OpenStack we have we have certified entry points via api's in storage networking management so we've got hybrid management but certainly we don't think we're gonna do everything in management by any stretch we have it we have a set of api's from management partners to plug in and by the way what I tell my my management R&D folks no hidden api same api's we use they use so so storage is another area new storage solutions networking certainly AI is one of the areas one of the things we showcased here was AI permeating through our entire product line I don't know if you saw the face recognition demo out there but it was it was pretty cool in and even if you want to consume that AI through one of the cloud providers we can pass you straight through from openshift to consume it that way as well on automation I want to get your thoughts on something we've talked a few days ago here on the cube was automation is great so let's give an example I'm automating a service you know if it's a coop with kubernetes and containers and as a memory leak right and every boots but automates I don't know so you got to have a new level of instrumentation down at the code level how do you see that playing out because now we got to be smarter about what's working and not working because I might not never know just reboots intermittently give me some mystery was a memory link could be something else but but that's so this is one of the places where using AI so we've been we've been our first stint with AI came out of our support group so we've been supporting Linux and open source for 25 years got a massive database of what failures were what the fixes were we started using AI in a support group to point our reps at a particular article based symptoms that they were hearing from our we realized we had about an 80% hit rate on you know on getting to our reps to the right to the right article so now we've built that into the products and so we use that AI like for example OpenShift IO which is at one of our developer platforms developers trying to link in a library we can tell them you know what there's a new there's a newer version of that library you know what that library has a security flaw in and at this line of code maybe you want to consider using another one but it's from our years and years of doing this that we're building that day database I mean oai is only so good as the data that you fed it and so have a certain level of granularity down to do you do it and then also ai it also is a reason why all our services are now on open shift because you're absolutely right if I've got a raw JBoss service running on raw Amazon I can't instrument that underneath because Amazon's got that layer closed if I have open shifts there and it's in the infrastructure is open shift even running in Amazon or sure anywhere we can now instrument that to look at some of the things we need to look at to recognize an event a week or or whatever Paul talk about their journey with kora West obviously we've been super excited by that we've been following Korres from the beginning great technical team pure open-source guys and in that container part of the evolution in time everyone's trying to force a business model and you're really hard to force a business model is something that too early or might not even be relevant to build the business around it might be a feature not a company kind of thing so you guys put a big price tag on them sizable chunk of cash how did it all play out you guys just like hey wow we're gonna we wait like these guys they're super technical meeting of the minds and then how that has fit in from a product and technology stand a little bit a little of all of that of course the benefit of being you know having the open source development in in your DNA as we knew them all right so we knew how good they were because they we work our guys work with them every day so that was something when they decided early on like us to go to kubernetes they became a big part of the of the community of kubernetes in our model from day one you can't be an open-source provider if you're not strong in the upstream community because how can you affect what your customers are asking you to do if you and effect upstream they were big in the upstream big and kubernetes and so at that point we that's what we just said they had done some interesting things that we hadn't got to they did a lot of the automation they were doing over-the-air updates of the container platforms a week which we hadn't got to yet they had a really good following in the community so we decided you know we paid a we paid a hefty price but at this stage of the game we really feel that we took an early bit in kubernetes we really feel that that's gonna be the future in containers if there's gonna be a place a place that you pay maybe a little more this is the place well Paul I think another example is ansible a year or two back right and that's been a remained a huge success and I can say you haven't messed it up right and it's it's it's been powerful accomplished well most acquisitions you know and in end in tears so it seems like RedHat seems to be good at this kind of an open source acquisition we we get to interview them for two years before we bring them in based on well how we work in the community but you know we're very where we're bringing in people I don't I hate to say the word M&A or acquisition I just hate that word because we're just joining forces here you know it just took a a big check to do it yeah and you guys have the business model kneel down this is good was good for court at the time for them to they didn't have to worry about having to figure out a go to market and monetize right an upstream presence which was very valuable and then trying to shoehorn a business all around it and which is difficult companies died doing it yeah I mean I can't think of many that have been that successful at it I mean it's a hard thing to do I mean look we've had a great advantage you know we've had rail in the market for 16 years and it built a base for us I'm not gonna try to I'm not gonna try to kid you on that and it's the it's the Linux base that everything's getting built around and so we just keep those those principles we've used for the last 16 years we stay true to weak true to them we could not do a proprietary piece of software now if our lives depended on it that's the DNA well how do you handle the growth you get hiring new people - that's a challenge we've been we were talking to folks about on your team and across RedHat around hiring people and and you got to maintain that eco so you have to maintain that DNA way how do you guys do that what's the is there like a special three three day you know hypnotic class a you know this is how we do it I have to tell you it's a bit easier on the engineering side because you know it's typically engineers that have been working in the community etc but you know our business unit side and other pieces where people have been coming out of big companies and they're used to a hierarchical environment we really take that into account in the interview process I'll be frank not everyone makes it through I mean RedHat is you know titles really don't matter a ringlet company yeah totally engineering as all should be by the way if biased opinion fit okay so great to have you on thanks for spending the time I know you're super busy a couple questions before we wrap up what are you most proud of as you look back now I mean someone again it's almost hindsight's 2020 looks obvious these calls but you know I interviewed Diane at OpenStack many years ago took a lot of heat for that kubernetes movement people weren't it wasn't obvious to a lot of people at that time the kubernetes bet you guys make good bets looking back what are you most proud of that's most significant or or you think people should know well those were that was a seminal moment in redhead history that decision what take us through some of the key milestones in your opinion the for the first one there's probably three or four the first one was gonna Ralph because you have to understand what we did we were in we were a completely retail when I joined the company with 50 million dollars in revenue losing two hundred and so we had a retail product we stopped it to go to route literally literally stop the product bet the company move second one was JBoss we were about 300 million in revenue we paid 425 million for JBoss now that was a big one the third one you might not recognize this one moving from Xen to KVM because Xen was going off down the the VC world trying to figure out how to monetize as a company somebody in Israel came up with a with a better model with KVM the rest of the industry was on Zen we said as a single player we're going this way that was a big bet that I don't even know we recognized the significance of at the time and in kubernetes as I said we pivoted on that in 2012 or so and I've got a lot of R&D money in that and paying on what made you go to kubernetes just curious was the has the Borg success how software is being done at Google was it the role of containers did you guys have that foresight at that time saying containers gonna have a critical role we don't want to screw that up we can bring this in we're looking at from a stack perspective or was it more of a future scenario it was a lot of it was its its heritage out of Borg and knowing the talent in Google and engineering and we talked to we had we had many many discussions we all we continually do with those guys so I think it was mostly a technical decision and what we said was at that point putting our weight behind it we just need to make the community successful so I mean we quickly figure with us in Google it was a it was a fairly good bad not as sure bet but a good bet and that's what made us go there it was really it was really a technology decision possible final question as we wrap up for the folks watching who couldn't make it here in San Francisco for Red Hat summit 2018 what's the big takeaway what's the present technology what's the North Star for you and your team and what are you guys putting as a priority what's the focus I think I think the takeaway from here is you know I think it's I think it's a pretty solid couple things are really solid it's going to be the future is going to be open source period end of story especially in the infrastructure and application development world third thing is hybrid cloud is the model it's the only practical way not every application is moving to one public cloud tomorrow and the third thing is for Red Hat that's the architecture that we build around every day we guide what are what products we build what M&A we do everything we do is around that model and open if I see a centerpiece of all the piece without all that coming thank you for coming on president of Protestant technology at Red Hat I'm John ferry with John Moyer stay with us for more live covers our third day of three days of live coverage here out in the open like open source we're doing our share bringing you the content you right back with more after this short break you

[Music] [Music] [Music] [Laughter] [Laughter] [Laughter] [Laughter] [Music] [Music] [Music] [Music] you you [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Applause] [Music] wake up feeling blessed peace you warned that Russia ain't afraid to show it I'll expose it if I dressed up riding in that Chester roasted nigga catch you slippin on myself rocks on I messed up like yes sir [Music] [Music] [Music] [Music] our program [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] you are not welcome to Red Hat summit 2018 2018 [Music] [Music] [Music] [Laughter] [Music] Wow that is truly the coolest introduction I've ever had thank you Wow I don't think I feel cool enough to follow an interaction like that Wow well welcome to the Red Hat summit this is our 14th annual event and I have to say looking out over this audience Wow it's great to see so many people here joining us this is by far our largest summit to date not only did we blow through the numbers we've had in the past we blew through our own expectations this year so I know we have a pretty packed house and I know people are still coming in so it's great to see so many people here it's great to see so many familiar faces when I had a chance to walk around earlier it's great to see so many new people here joining us for the first time I think the record attendance is an indication that more and more enterprises around the world are seeing the power of open source to help them with their challenges that they're facing due to the digital transformation that all of enterprises around the world are going through the theme for the summit this year is ideas worth exploring and we intentionally chose that because as much as we are all going through this digital disruption and the challenges associated with it one thing I think is becoming clear no one person and certainly no one company has the answers to these challenges right this isn't a problem where you can go buy a solution this is a set of capabilities that we all need to build it's a set of cultural changes that we all need to go through and that's going to require the best ideas coming from so many different places so we're not here saying we have the answers we're trying to convene the conversation right we want to serve as a catalyst bringing great minds together to share ideas so we all walk out of here at the end of the week a little wiser than when we first came here we do have an amazing agenda for you we have over 7,000 attendees we may be pushing 8,000 by the time we got through this morning we have 36 keynote speakers and we have a hundred and twenty-five breakout sessions and have to throw in one plug scheduling 325 breakout sessions is actually pretty difficult and so we used the Red Hat business optimizer which is an AI constraint solver that's new in the Red Hat decision manager to help us plan the summit because we have individuals who have a clustered set of interests and we want to make sure that when we schedule two breakout sessions we do it in a way that we don't have overlapping sessions that are really important to the same individual so we tried to use this tool and what we understand about people's interest in history of what they wanted to do to try to make sure that we spaced out different times for things of similar interests for similar people as well as for people who stood in the back of breakouts before and I know I've done that too we've also used it to try to optimize room size so hopefully we will do our best to make sure that we've appropriately sized the spaces for those as well so it's really a phenomenal tool and I know it's helped us a lot this year in addition to the 325 breakouts we have a lot of our customers on stage during the main sessions and so you'll see demos you'll hear from partners you'll hear stories from so many of our customers not on our point of view of how to use these technologies but their point of views of how they actually are using these technologies to solve their problems and you'll hear over and over again from those keynotes that it's not just about the technology it's about how people are changing how people are working to innovate to solve those problems and while we're on the subject of people I'd like to take a moment to recognize the Red Hat certified professional of the year this is known award we do every year I love this award because it truly recognizes an individual for outstanding innovation for outstanding ideas for truly standing out in how they're able to help their organization with Red Hat technologies Red Hat certifications help system administrators application developers IT architects to further their careers and help their organizations by being able to advance their skills and knowledge of Red Hat products and this year's winner really truly is a great example about how their curiosity is helped push the limits of what's possible with technology let's hear a little more about this year's winner when I was studying at the University I had computer science as one of my subjects and that's what created the passion from the very beginning they were quite a few institutions around my University who were offering Red Hat Enterprise Linux as a course and a certification paths through to become an administrator Red Hat Learning subscription has offered me a lot more than any other trainings that have done so far that gave me exposure to so many products under red hair technologies that I wasn't even aware of I started to think about the better ways of how these learnings can be put into the real life use cases and we started off with a discussion with my manager saying I have to try this product and I really want to see how it really fits in our environment and that product was Red Hat virtualization we went from deploying rave and then OpenStack and then the open shift environment we wanted to overcome some of the things that we saw as challenges to the speed and rapidity of release and code etc so it made perfect sense and we were able to do it in a really short space of time so you know we truly did use it as an Innovation Lab I think idea is everything ideas can change the way you see things an Innovation Lab was such an idea that popped into my mind one fine day and it has transformed the way we think as a team and it's given that playpen to pretty much everyone to go and test their things investigate evaluate do whatever they like in a non-critical non production environment I recruited Neha almost 10 years ago now I could see there was a spark a potential with it and you know she had a real Drive a real passion and you know here we are nearly ten years later I'm Neha Sandow I am a Red Hat certified engineer all right well everyone please walk into the states to the stage Neha [Music] [Applause] congratulations thank you [Applause] I think that - well welcome to the red has some of this is your first summit yes it is thanks so much well fantastic sure well it's great to have you here I hope you have a chance to engage and share some of your ideas and enjoy the week thank you thank you congratulations [Applause] neha mentioned that she first got interest in open source at university and it made me think red hats recently started our Red Hat Academy program that looks to programmatically infuse Red Hat technologies in universities around the world it's exploded in a way we had no idea it's grown just incredibly rapidly which i think shows the interest that there really is an open source and working in an open way at university so it's really a phenomenal program I'm also excited to announce that we're launching our newest open source story this year at Summit it's called the science of collective discovery and it looks at what happens when communities use open hardware to monitor the environment around them and really how they can make impactful change based on that technologies the rural premier that will be at 5:15 on Wednesday at McMaster Oni West and so please join us for a drink and we'll also have a number of the experts featured in that and you can have a conversation with them as well so with that let's officially start the show please welcome red hat president of products and technology Paul Cormier [Music] Wow morning you know I say it every year I'm gonna say it again I know I repeat myself it's just amazing we are so proud here to be here today too while you all week on how far we've come with opens with open source and with the products that we that we provide at Red Hat so so welcome and I hope the pride shows through so you know I told you Seven Summits ago on this stage that the future would be open and here we are just seven years later this is the 14th summit but just seven years later after that and much has happened and I think you'll see today and this week that that prediction that the world would be open was a pretty safe predict prediction but I want to take you just back a little bit to see how we started here and it's not just how Red Hat started here this is an open source in Linux based computing is now in an industry norm and I think that's what you'll you'll see in here this week you know we talked back then seven years ago when we put on our prediction about the UNIX error and how Hardware innovation with x86 was it was really the first step in a new era of open innovation you know companies like Sun Deck IBM and HP they really changed the world the computing industry with their UNIX models it was that was really the rise of computing but I think what we we really saw then was that single company innovation could only scale so far could really get so far with that these companies were very very innovative but they coupled hardware innovation with software innovation and as one company they could only solve so many problems and even which comp which even complicated things more they could only hire so many people in each of their companies Intel came on the scene back then as the new independent hardware player and you know that was really the beginning of the drive for horizontal computing power and computing this opened up a brand new vehicle for hardware innovation a new hardware ecosystem was built around this around this common hardware base shortly after that Stallman and leanness they had a vision of his of an open model that was created and they created Linux but it was built around Intel this was really the beginning of having a software based platform that could also drive innovation this kind of was the beginning of the changing of the world here that system-level innovation now having a hardware platform that was ubiquitous and a software platform that was open and ubiquitous it really changed this system level innovation and that continues to thrive today it was only possible because it was open this could not have happened in a closed environment it allowed the best ideas from anywhere from all over to come in in win only because it was the best idea that's what drove the rate of innovation at the pace you're seeing today and it which has never been seen before we at Red Hat we saw the need to bring this innovation to solve real-world problems in the enterprise and I think that's going to be the theme of the show today you're going to see us with our customers and partners talking about and showing you some of those real-world problems that we are sought solving with this open innovation we created rel back then for this for the enterprise it started it's it it wasn't successful because it's scaled it was secure and it was enterprise ready it once again changed the industry but this time through open innovation this gave the hardware ecosystem a software platform this open software platform gave the hardware ecosystem a software platform to build around it Unleashed them the hardware side to compete and thrive it enabled innovation from the OEMs new players building cheaper faster servers even new architectures from armed to power sprung up with this change we have seen an incredible amount of hardware innovation over the last 15 years that same innovation happened on the software side we saw powerful implementations of bare metal Linux distributions out in the market in fact at one point there were 300 there are over 300 distributions out in the market on the foundation of Linux powerful open-source equivalents were even developed in every area of Technology databases middleware messaging containers anything you could imagine innovation just exploded around the Linux platform in innovation it's at the core also drove virtualization both Linux and virtualization led to another area of innovation which you're hearing a lot about now public cloud innovation this innovation started to proceed at a rate that we had never seen before we had never experienced this in the past in this unprecedented speed of innovation and software was now possible because you didn't need a chip foundry in order to innovate you just needed great ideas in the open platform that was out there customers seeing this innovation in the public cloud sparked it sparked their desire to build their own linux based cloud platforms and customers are now are now bringing that cloud efficiency on-premise in their own data centers public clouds demonstrated so much efficiency the data centers and architects wanted to take advantage of it off premise on premise I'm sorry within their own we don't within their own controlled environments this really allowed companies to make the most of existing investments from data centers to hardware they also gained many new advantages from data sovereignty to new flexible agile approaches I want to bring Burr and his team up here to take a look at what building out an on-premise cloud can look like today Bure take it away I am super excited to be with all of you here at Red Hat summit I know we have some amazing things to show you throughout the week but before we dive into this demonstration I want you to take just a few seconds just a quick moment to think about that really important event your life that moment you turned on your first computer maybe it was a trs-80 listen Claire and Atari I even had an 83 b2 at one point but in my specific case I was sitting in a classroom in Hawaii and I could see all the way from Diamond Head to Pearl Harbor so just keep that in mind and I turn on an IBM PC with dual floppies I don't remember issuing my first commands writing my first level of code and I was totally hooked it was like a magical moment and I've been hooked on computers for the last 30 years so I want you to hold that image in your mind for just a moment just a second while we show you the computers we have here on stage let me turn this over to Jay fair and Dini here's our worldwide DevOps manager and he was going to show us his hardware what do you got Jay thank you BER good morning everyone and welcome to Red Hat summit we have so many cool things to show you this week I am so happy to be here and you know my favorite thing about red hat summit is our allowed to kind of share all of our stories much like bird just did we also love to you know talk about the hardware and the technology that we brought with us in fact it's become a bit of a competition so this year we said you know let's win this thing and we actually I think we might have won we brought a cloud with us so right now this is a private cloud for throughout the course of the week we're going to turn this into a very very interesting open hybrid cloud right before your eyes so everything you see here will be real and happening right on this thing right behind me here so thanks for our four incredible partners IBM Dell HP and super micro we've built a very vendor heterogeneous cloud here extra special thanks to IBM because they loaned us a power nine machine so now we actually have multiple architectures in this cloud so as you know one of the greatest benefits to running Red Hat technology is that we run on just about everything and you know I can't stress enough how powerful that is how cost-effective that is and it just makes my life easier to be honest so if you're interested the people that built this actual rack right here gonna be hanging out in the customer success zone this whole week it's on the second floor the lobby there and they'd be glad to show you exactly how they built this thing so let me show you what we actually have in this rack so contained in this rack we have 1056 physical chorus right here we have five and a half terabytes of RAM and just in case we threw 50 terabytes of storage in this thing so burr that's about two million times more powerful than that first machine you boot it up thanks to a PC we're actually capable of putting all the power needs and cooling right in this rack so there's your data center right there you know it occurred to me last night that I can actually pull the power cord on this thing and kick it up a notch we could have the world's first mobile portable hybrid cloud so I'm gonna go ahead and unplug no no no no no seriously it's not unplug the thing we got it working now well Berg gets a little nervous but next year we're rolling this thing around okay okay so to recap multiple vendors check multiple architectures check multiple public clouds plug right into this thing check and everything everywhere is running the same software from Red Hat so that is a giant check so burn Angus why don't we get the demos rolling awesome so we have totally we have some amazing hardware amazing computers on this stage but now we need to light it up and we have Angus Thomas who represents our OpenStack engineering team and he's going to show us what we can do with this awesome hardware Angus thank you Beth so this was an impressive rack of hardware to Joe has bought a pocket stage what I want to talk about today is putting it to work with OpenStack platform director we're going to turn it from a lot of potential into a flexible scalable private cloud we've been using director for a while now to take care of managing hardware and orchestrating the deployment of OpenStack what's new is that we're bringing the same capabilities for on-premise manager the deployment of OpenShift director deploying OpenShift in this way is the best of both worlds it's bare-metal performance but with an underlying infrastructure as a service that can take care of deploying in new instances and scaling out and a lot of the things that we expect from a cloud provider director is running on a virtual machine on Red Hat virtualization at the top of the rack and it's going to bring everything else under control what you can see on the screen right now is the director UI and as you see some of the hardware in the rack is already being managed at the top level we have information about the number of cores in the amount of RAM and the disks that each machine have if we dig in a bit there's information about MAC addresses and IPs and the management interface the BIOS kernel version dig a little deeper and there is information about the hard disks all of this is important because we want to be able to make sure that we put in workloads exactly where we want them Jay could you please power on the two new machines at the top of the rack sure all right thank you so when those two machines come up on the network director is going to see them see that they're new and not already under management and is it immediately going to go into the hardware inspection that populates this database and gets them ready for use so we also have profiles as you can see here profiles are the way that we match the hardware in a machine to the kind of workload that it's suited to this is how we make sure that machines that have all the discs run Seth and machines that have all the RAM when our application workouts for example there's two ways these can be set when you're dealing with a rack like this you could go in an individually tag each machine but director scales up to data centers so we have a rules matching engine which will automatically take the hardware profile of a new machine and make sure it gets tagged in exactly the right way so we can automatically discover new machines on the network and we can automatically match them to a profile that's how we streamline and scale up operations now I want to talk about deploying the software we have a set of validations we've learned over time about the Miss configurations in the underlying infrastructure which can cause the deployment of a multi node distributed application like OpenStack or OpenShift to fail if you have the wrong VLAN tags on a switch port or DHCP isn't running where it should be for example you can get into a situation which is really hard to debug a lot of our validations actually run before the deployment they look at what you're intending to deploy and they check in the environment is the way that it should be and they'll preempts problems and obviously preemption is a lot better than debugging something new that you probably have not seen before is director managing multiple deployments of different things side by side before we came out on stage we also deployed OpenStack on this rack just to keep me honest let me jump over to OpenStack very quickly a lot of our opens that customers will be familiar with this UI and the bare metal deployment of OpenStack on our rack is actually running a set of virtual machines which is running Gluster you're going to see that put to work later on during the summit Jay's gone to an awful lot effort to get this Hardware up on the stage so we're going to use it as many different ways as we can okay let's deploy OpenShift if I switch over to the deployed a deployment plan view there's a few steps first thing you need to do is make sure we have the hardware I already talked about how director manages hardware it's smart enough to make sure that it's not going to attempt to deploy into machines they're already in use it's only going to deploy on machines that have the right profile but I think with the rack that we have here we've got enough next thing is the deployment configuration this is where you get to customize exactly what's going to be deployed to make sure that it really matches your environment if they're external IPs for additional services you can set them here whatever it takes to make sure that the deployment is going to work for you as you can see on the screen we have a set of options around enable TLS for encryption network traffic if I dig a little deeper there are options around enabling ipv6 and network isolation so that different classes of traffic there are over different physical NICs okay then then we have roles now roles this is essentially about the software that's going to be put on each machine director comes with a set of roles for a lot of the software that RedHat supports and you can just use those or you can modify them a little bit if you need to add a monitoring agent or whatever it might be or you can create your own custom roles director has quite a rich syntax for custom role definition and custom Network topologies whatever it is you need in order to make it work in your environment so the rawls that we have right now are going to give us a working instance of openshift if I go ahead and click through the validations are all looking green so right now I can click the button start to the deploy and you will see things lighting up on the rack directors going to use IPMI to reboot the machines provisioned and with a trail image was the containers on them and start up the application stack okay so one last thing once the deployment is done you're going to want to keep director around director has a lot of capabilities around what we call de to operational management bringing in new Hardware scaling out deployments dealing with updates and critically doing upgrades as well so having said all of that it is time for me to switch over to an instance of openshift deployed by a director running on bare metal on our rack and I need to hand this over to our developer team so they can show what they can do it thank you that is so awesome Angus so what you've seen now is going from bare metal to the ultimate private cloud with OpenStack director make an open shift ready for our developers to build their next generation applications thank you so much guys that was totally awesome I love what you guys showed there now I have the honor now I have the honor of introducing a very special guest one of our earliest OpenShift customers who understands the necessity of the private cloud inside their organization and more importantly they're fundamentally redefining their industry please extend a warm welcome to deep mar Foster from Amadeus well good morning everyone a big thank you for having armadillos here and myself so as it was just set I'm at Mario's well first of all we are a large IT provider in the travel industry so serving essentially Airlines hotel chains this distributors like Expedia and others we indeed we started very early what was OpenShift like a bit more than three years ago and we jumped on it when when Retta teamed with Google to bring in kubernetes into this so let me quickly share a few figures about our Mario's to give you like a sense of what we are doing and the scale of our operations so some of our key KPIs one of our key metrics is what what we call passenger borders so that's the number of customers that physically board a plane over the year so through our systems it's roughly 1.6 billion people checking in taking the aircrafts on under the Amarillo systems close to 600 million travel agency bookings virtually all airlines are on the system and one figure I want to stress out a little bit is this one trillion availability requests per day that's when I read this figure my mind boggles a little bit so this means in continuous throughput more than 10 million hits per second so of course these are not traditional database transactions it's it's it's highly cached in memory and these applications are running over like more than 100,000 course so it's it's it's really big stuff so today I want to give some concrete feedback what we are doing so I have chosen two applications products of our Mario's that are currently running on production in different in different hosting environments as the theme here is of this talk hybrid cloud and so I want to give some some concrete feedback of how we architect the applications and of course it stays relatively high level so here I have taken one of our applications that is used in the hospitality environment so it's we have built this for a very large US hotel chain and it's currently in in full swing brought into production so like 30 percent of the globe or 5,000 plus hotels are on this platform not so here you can see that we use as the path of course on openshift on that's that's the most central piece of our hybrid cloud strategy on the database side we use Oracle and Couchbase Couchbase is used for the heavy duty fast access more key value store but also to replicate data across two data centers in this case it's running over to US based data centers east and west coast topology that are fit so run by Mario's that are fit with VMware on for the virtualization OpenStack on top of it and then open shift to host and welcome the applications on the right hand side you you see the kind of tools if you want to call them tools that we use these are the principal ones of course the real picture is much more complex but in essence we use terraform to map to the api's of the underlying infrastructure so they are obviously there are differences when you run on OpenStack or the Google compute engine or AWS Azure so some some tweaking is needed we use right at ansible a lot we also use puppet so you can see these are really the big the big pieces of of this sense installation and if we look to the to the topology again very high high level so these two locations basically map the data centers of our customers so they are in close proximity because the response time and the SLA is of this application is are very tight so that's an example of an application that is architectures mostly was high ability and high availability in minds not necessarily full global worldwide scaling but of course it could be scaled but here the idea is that we can swing from one data center to the unit to the other in matters of of minutes both take traffic data is fully synchronized across those data centers and while the switch back and forth is very fast the second example I have taken is what we call the shopping box this is when people go to kayak or Expedia and they're getting inspired where they want to travel to this is really the piece that shoots most of transit of the transactions into our Mario's so we architect here more for high scalability of course availability is also a key but here scaling and geographical spread is very important so in short it runs partially on-premise in our Amarillo Stata Center again on OpenStack and we we deploy it mostly in the first step on the Google compute engine and currently as we speak on Amazon on AWS and we work also together with Retta to qualify the whole show on Microsoft Azure here in this application it's it's the same building blocks there is a large swimming aspect to it so we bring Kafka into this working with records and another partner to bring Kafka on their open shift because at the end we want to use open shift to administrate the whole show so over time also databases and the topology here when you look to the physical deployment topology while it's very classical we use the the regions and the availability zone concept so this application is spread over three principal continental regions and so it's again it's a high-level view with different availability zones and in each of those availability zones we take a hit of several 10,000 transactions so that was it really in very short just to give you a glimpse on how we implement hybrid clouds I think that's the way forward it gives us a lot of freedom and it allows us to to discuss in a much more educated way with our customers that sometimes have already deals in place with one cloud provider or another so for us it's a lot of value to set two to leave them the choice basically what up that was a very quick overview of what we are doing we were together with records are based on open shift essentially here and more and more OpenStack coming into the picture hope you found this interesting thanks a lot and have a nice summer [Applause] thank you so much deeper great great solution we've worked with deep Marv and his team for a long for a long time great solution so I want to take us back a little bit I want to circle back I sort of ended talking a little bit about the public cloud so let's circle back there you know even so even though some applications need to run in various footprints on premise there's still great gains to be had that for running certain applications in the public cloud a public cloud will be as impactful to to the industry as as UNIX era was of computing was but by itself it'll have some of the same limitations and challenges that that model had today there's tremendous cloud innovation happening in the public cloud it's being driven by a handful of massive companies and much like the innovation that sundeck HP and others drove in a you in the UNIX era of community of computing many customers want to take advantage of the best innovation no matter where it comes from buddy but as they even eventually saw in the UNIX era they can't afford the best innovation at the cost of a siloed operating environment with the open community we are building a hybrid application platform that can give you access to the best innovation no matter which vendor or which cloud that it comes from letting public cloud providers innovate and services beyond what customers or anyone can one provider can do on their own such as large scale learning machine learning or artificial intelligence built on the data that's unique probably to that to that one cloud but consumed in a common way for the end customer across all applications in any environment on any footprint in in their overall IT infrastructure this is exactly what rel brought brought to our customers in the UNIX era of computing that consistency across any of those footprints obviously enterprises will have applications for all different uses some will live on premise some in the cloud hybrid cloud is the only practical way forward I think you've been hearing that from us for a long time it is the only practical way forward and it'll be as impactful as anything we've ever seen before I want to bring Byrne his team back to see a hybrid cloud deployment in action burr [Music] all right earlier you saw what we did with taking bare metal and lighting it up with OpenStack director and making it openshift ready for developers to build their next generation applications now we want to show you when those next turn and generation applications and what we've done is we take an open shift and spread it out and installed it across Asia and Amazon a true hybrid cloud so with me on stage today as Ted who's gonna walk us through an application and Brent Midwood who's our DevOps engineer who's gonna be making sure he's monitoring on the backside that we do make sure we do a good job so at this point Ted what have you got for us Thank You BER and good morning everybody this morning we are running on the stage in our private cloud an application that's providing its providing fraud detection detect serves for financial transactions and our customer base is rather large and we occasionally take extended bursts of traffic of heavy traffic load so in order to keep our latency down and keep our customers happy we've deployed extra service capacity in the public cloud so we have capacity with Microsoft Azure in Texas and with Amazon Web Services in Ohio so we use open chip container platform on all three locations because openshift makes it easy for us to deploy our containerized services wherever we want to put them but the question still remains how do we establish seamless communication across our entire enterprise and more importantly how do we balance the workload across these three locations in such a way that we efficiently use our resources and that we give our customers the best possible experience so this is where Red Hat amq interconnect comes in as you can see we've deployed a MQ interconnect alongside our fraud detection applications in all three locations and if I switch to the MQ console we'll see the topology of the app of the network that we've created here so the router inside the on stage here has made connections outbound to the public routers and AWS and Azure these connections are secured using mutual TLS authentication and encrypt and once these connections are established amq figures out the best way auda matically to route traffic to where it needs to get to so what we have right now is a distributed reliable broker list message bus that expands our entire enterprise now if you want to learn more about this make sure that you catch the a MQ breakout tomorrow at 11:45 with Jack Britton and David Ingham let's have a look at the message flow and we'll dive in and isolate the fraud detection API that we're interested in and what we see is that all the traffic is being handled in the private cloud that's what we expect because our latencies are low and they're acceptable but now if we take a little bit of a burst of increased traffic we're gonna see that an EQ is going to push a little a bi traffic out onto the out to the public cloud so as you're picking up some of the load now to keep the Layton sees down now when that subsides as your finishes up what it's doing and goes back offline now if we take a much bigger load increase you'll see two things first of all asher is going to take a bigger proportion than it did before and Amazon Web Services is going to get thrown into the fray as well now AWS is actually doing less work than I expected it to do I expected a little bit of bigger a slice there but this is a interesting illustration of what's going on for load balancing mq load balancing is sending requests to the services that have the lowest backlog and in order to keep the Layton sees as steady as possible so AWS is probably running slowly for some reason and that's causing a and Q to push less traffic its way now the other thing you're going to notice if you look carefully this graph fluctuate slightly and those fluctuations are caused by all the variances in the network we have the cloud on stage and we have clouds in in the various places across the country there's a lot of equipment locked layers of virtualization and networking in between and we're reacting in real-time to the reality on the digital street so BER what's the story with a to be less I noticed there's a problem right here right now we seem to have a little bit performance issue so guys I noticed that as well and a little bit ago I actually got an alert from red ahead of insights letting us know that there might be some potential optimizations we could make to our environment so let's take a look at insights so here's the Red Hat insights interface you can see our three OpenShift deployments so we have the set up here on stage in San Francisco we have our Azure deployment in Texas and we also have our AWS deployment in Ohio and insights is highlighting that that deployment in Ohio may have some issues that need some attention so Red Hat insights collects anonymized data from manage systems across our customer environment and that gives us visibility into things like vulnerabilities compliance configuration assessment and of course Red Hat subscription consumption all of this is presented in a SAS offering so it's really really easy to use it requires minimal infrastructure upfront and it provides an immediate return on investment what insights is showing us here is that we have some potential issues on the configuration side that may need some attention from this view I actually get a look at all the systems in our inventory including instances and containers and you can see here on the left that insights is highlighting one of those instances as needing some potential attention it might be a candidate for optimization this might be related to the issues that you were seeing just a minute ago insights uses machine learning and AI techniques to analyze all collected data so we combine collected data from not only the system's configuration but also with other systems from across the Red Hat customer base this allows us to compare ourselves to how we're doing across the entire set of industries including our own vertical in this case the financial services industry and we can compare ourselves to other customers we also get access to tailored recommendations that let us know what we can do to optimize our systems so in this particular case we're actually detecting an issue here where we are an outlier so our configuration has been compared to other configurations across the customer base and in this particular instance in this security group were misconfigured and so insights actually gives us the steps that we need to use to remediate the situation and the really neat thing here is that we actually get access to a custom ansible playbook so if we want to automate that type of a remediation we can use this inside of Red Hat ansible tower Red Hat satellite Red Hat cloud forms it's really really powerful the other thing here is that we can actually apply these recommendations right from within the Red Hat insights interface so with just a few clicks I can select all the recommendations that insights is making and using that built-in ansible automation I can apply those recommendations really really quickly across a variety of systems this type of intelligent automation is really cool it's really fast and powerful so really quickly here we're going to see the impact of those changes and so we can tell that we're doing a little better than we were a few minutes ago when compared across the customer base as well as within the financial industry and if we go back and look at the map we should see that our AWS employment in Ohio is in a much better state than it was just a few minutes ago so I'm wondering Ted if this had any effect and might be helping with some of the issues that you were seeing let's take a look looks like went green now let's see what it looks like over here yeah doesn't look like the configuration is taking effect quite yet maybe there's some delay awesome fantastic the man yeah so now we're load balancing across the three clouds very much fantastic well I have two minute Ted I truly love how we can route requests and dynamically load transactions across these three clouds a truly hybrid cloud native application you guys saw here on on stage for the first time and it's a fully portable application if you build your applications with openshift you can mover from cloud to cloud to cloud on stage private all the way out to the public said it's totally awesome we also have the application being fully managed by Red Hat insights I love having that intelligence watching over us and ensuring that we're doing everything correctly that is fundamentally awesome thank you so much for that well we actually have more to show you but you're going to wait a few minutes longer right now we'd like to welcome Paul back to the stage and we have a very special early Red Hat customer an Innovation Award winner from 2010 who's been going boldly forward with their open hybrid cloud strategy please give a warm welcome to Monty Finkelstein from Citigroup [Music] [Music] hi Marty hey Paul nice to see you thank you very much for coming so thank you for having me Oh our pleasure if you if you wanted to we sort of wanted to pick your brain a little bit about your experiences and sort of leading leading the charge in computing here so we're all talking about hybrid cloud how has the hybrid cloud strategy influenced where you are today in your computing environment so you know when we see the variable the various types of workload that we had an hour on from cloud we see the peaks we see the valleys we see the demand on the environment that we have we really determined that we have to have a much more elastic more scalable capability so we can burst and stretch our environments to multiple cloud providers these capabilities have now been proven at City and of course we consider what the data risk is as well as any regulatory requirement so how do you how do you tackle the complexity of multiple cloud environments so every cloud provider has its own unique set of capabilities they have they're own api's distributions value-added services we wanted to make sure that we could arbitrate between the different cloud providers maintain all source code and orchestration capabilities on Prem to drive those capabilities from within our platforms this requires controlling the entitlements in a cohesive fashion across our on Prem and Wolfram both for security services automation telemetry as one seamless unit can you talk a bit about how you decide when you to use your own on-premise infrastructure versus cloud resources sure so there are multiple dimensions that we take into account right so the first dimension we talk about the risk so low risk - high risk and and really that's about the data classification of the environment we're talking about so whether it's public or internal which would be considered low - ooh confidential PII restricted sensitive and so on and above which is really what would be considered a high-risk the second dimension would be would focus on demand volatility and responsiveness sensitivity so this would range from low response sensitivity and low variability of the type of workload that we have to the high response sensitivity and high variability of the workload the first combination that we focused on is the low risk and high variability and high sensitivity for response type workload of course any of the workloads we ensure that we're regulatory compliant as well as we achieve customer benefits with within this environment so how can we give developers greater control of their their infrastructure environments and still help operations maintain that consistency in compliance so the main driver is really to use the public cloud is scale speed and increased developer efficiencies as well as reducing cost as well as risk this would mean providing develop workspaces and multiple environments for our developers to quickly create products for our customers all this is done of course in a DevOps model while maintaining the source and artifacts registry on-prem this would allow our developers to test and select various middleware products another product but also ensure all the compliance activities in a centrally controlled repository so we really really appreciate you coming by and sharing that with us today Monte thank you so much for coming to the red echo thanks a lot thanks again tamati I mean you know there's these real world insight into how our products and technologies are really running the businesses today that's that's just the most exciting part so thank thanks thanks again mati no even it with as much progress as you've seen demonstrated here and you're going to continue to see all week long we're far from done so I want to just take us a little bit into the path forward and where we we go today we've talked about this a lot innovation today is driven by open source development I don't think there's any question about that certainly not in this room and even across the industry as a whole that's a long way that we've come from when we started our first summit 14 years ago with over a million open source projects out there this unit this innovation aggregates into various community platforms and it finally culminates in commercial open source based open source developed products these products run many of the mission-critical applications in business today you've heard just a couple of those today here on stage but it's everywhere it's running the world today but to make customers successful with that interact innovation to run their real-world business applications these open source products have to be able to leverage increase increasingly complex infrastructure footprints we must also ensure a common base for the developer and ultimately the application no matter which footprint they choose as you heard mati say the developers want choice here no matter which no matter which footprint they are ultimately going to run their those applications on they want that flexibility from the data center to possibly any public cloud out there in regardless of whether that application was built yesterday or has been running the business for the last 10 years and was built on 10-year old technology this is the flexibility that developers require today but what does different infrastructure we may require different pieces of the technical stack in that deployment one example of this that Effects of many things as KVM which provides the foundation for many of those use cases that require virtualization KVM offers a level of consistency from a technical perspective but rel extends that consistency to add a level of commercial and ecosystem consistency for the application across all those footprints this is very important in the enterprise but while rel and KVM formed the foundation other technologies are needed to really satisfy the functions on these different footprints traditional virtualization has requirements that are satisfied by projects like overt and products like Rev traditional traditional private cloud implementations has requirements that are satisfied on projects like OpenStack and products like Red Hat OpenStack platform and as applications begin to become more container based we are seeing many requirements driven driven natively into containers the same Linux in different forms provides this common base across these four footprints this level of compatible compatibility is critical to operators who must best utilize the infinite must better utilize secure and deploy the infrastructure that they have and they're responsible for developers on the other hand they care most about having a platform that can creates that consistency for their applications they care about their services and the services that they need to consume within those applications and they don't want limitations on where they run they want service but they want it anywhere not necessarily just from Amazon they want integration between applications no matter where they run they still want to run their Java EE now named Jakarta EE apps and bring those applications forward into containers and micro services they need able to orchestrate these frameworks and many more across all these different footprints in a consistent secure fashion this creates natural tension between development and operations frankly customers amplify this tension with organizational boundaries that are holdover from the UNIX era of computing it's really the job of our platforms to seamlessly remove these boundaries and it's the it's the goal of RedHat to seamlessly get you from the old world to the new world we're gonna show you a really cool demo demonstration now we're gonna show you how you can automate this transition first we're gonna take a Windows virtual machine from a traditional VMware deployment we're gonna convert it into a KVM based virtual machine running in a container all under the kubernetes umbrella this makes virtual machines more access more accessible to the developer this will accelerate the transformation of those virtual machines into cloud native container based form well we will work this prot we will worked as capability over the product line in the coming releases so we can strike the balance of enabling our developers to move in this direction we want to be able to do this while enabling mission-critical operations to still do their job so let's bring Byrne his team back up to show you this in action for one more thanks all right what Red Hat we recognized that large organizations large enterprises have a substantial investment and legacy virtualization technology and this is holding you back you have thousands of virtual machines that need to be modernized so what you're about to see next okay it's something very special with me here on stage we have James Lebowski he's gonna be walking us through he's represents our operations folks and he's gonna be walking us through a mass migration but also is Itamar Hine who's our lead developer of a very special application and he's gonna be modernizing container izing and optimizing our application all right so let's get started James thanks burr yeah so as you can see I have a typical VMware environment here I'm in the vSphere client I've got a number of virtual machines a handful of them that make up my one of my applications for my development environment in this case and what I want to do is migrate those over to a KVM based right at virtualization environment so what I'm gonna do is I'm gonna go to cloud forms our cloud management platform that's our first step and you know cloud forms actually already has discovered both my rev environment and my vSphere environment and understands the compute network and storage there so you'll notice one of the capabilities we built is this new capability called migrations and underneath here I could begin to there's two steps and the first thing I need to do is start to create my infrastructure mappings what this will allow me to do is map my compute networking storage between vSphere and Rev so cloud forms understands how those relate let's go ahead and create an infrastructure mapping I'll call that summit infrastructure mapping and then I'm gonna begin to map my two environments first the compute so the clusters here next the data stores so those virtual machines happen to live on datastore - in vSphere and I'll target them a datastore data to inside of my revenue Arman and finally my networks those live on network 100 so I'll map those from vSphere to rover so once my infrastructure is map the next step I need to do is actually begin to create a plan to migrate those virtual machines so I'll continue to the plan wizard here I'll select the infrastructure mapping I just created and I'll select migrate my development environment from those virtual machines to Rev and then I need to import a CSV file the CSV file is going to contain a list of all the virtual machines that I want to migrate that were there and that's it once I hit create what's going to happen cloud forms is going to begin in an automated fashion shutting down those virtual machines begin converting them taking care of all the minutia that you'd have to do manually it's gonna do that all automatically for me so I don't have to worry about all those manual interactions and no longer do I have to go manually shut them down but it's going to take care of that all for me you can see the migrations kicked off here this is the I've got the my VMs are migrating here and if I go back to the screen here you can see that we're gonna start seeing those shutdown okay awesome but as people want to know more information about this how would they dive deeper into this technology later this week yeah it's a great question so we have a workload portability session in the hybrid cloud on Wednesday if you want to see a presentation that deep dives into this topic and how some of the methodologies to migrate and then on Thursday we actually have a hands-on lab it's the IT optimization VM migration lab that you can check out and as you can see those are shutting down here yeah we see a powering off right now that's fantastic absolutely so if I go back now that's gonna take a while you got to convert all the disks and move them over but we'll notice is previously I had already run one migration of a single application that was a Windows virtual machine running and if I browse over to Red Hat virtualization I can see on the dashboard here I could browse to virtual machines I have migrated that Windows virtual machine and if I open up a tab I can now browse to my Windows virtual machine which is running our wingtip toy store application our sample application here and now my VM has been moved over from Rev to Vita from VMware to Rev and is available for Itamar all right great available to our developers all right Itamar what are you gonna do for us here well James it's great that you can save cost by moving from VMware to reddit virtualization but I want to containerize our application and with container native virtualization I can run my virtual machine on OpenShift like any other container using Huebert a kubernetes operator to run and manage virtual machines let's look at the open ship service catalog you can see we have a new virtualization section here we can import KVM or VMware virtual machines or if there are already loaded we can create new instances of them for the developer to work with just need to give named CPU memory we can do other virtualization parameters and create our virtual machines now let's see how this looks like in the openshift console the cool thing about KVM is virtual machines are just Linux processes so they can act and behave like other open shipped applications we build in more than a decade of virtualization experience with KVM reddit virtualization and OpenStack and can now benefit from kubernetes and open shift to manage and orchestrate our virtual machines since we know this virtual machine this container is actually a virtual machine we can do virtual machine stuff with it like shutdown reboot or open a remote desktop session to it but we can also see this is just a container like any other container in openshift and even though the web application is running inside a Windows virtual machine the developer can still use open shift mechanisms like services and routes let's browse our web application using the OpenShift service it's the same wingtip toys application but this time the virtual machine is running on open shift but we're not done we want to containerize our application since it's a Windows virtual machine we can open a remote desktop session to it we see we have here Visual Studio and an asp.net application let's start container izing by moving the Microsoft sequel server database from running inside the Windows virtual machine to running on Red Hat Enterprise Linux as an open shipped container we'll go back to the open shipped Service Catalog this time we'll go to the database section and just as easily we'll create a sequel server container just need to accept the EULA provide password and choose the Edition we want and create a database and again we can see the sequel server is just another container running on OpenShift now let's take let's find the connection details for our database to keep this simple we'll take the IP address of our database service go back to the web application to visual studio update the IP address in the connection string publish our application and go back to browse it through OpenShift fortunately for us the user experience team heard we're modernizing our application so they pitched in and pushed new icons to use with our containerized database to also modernize the look and feel it's still the same wingtip toys application it's running in a virtual machine on openshift but it's now using a containerized database to recap we saw that we can run virtual machines natively on openshift like any other container based application modernize and mesh them together we containerize the database but we can use the same approach to containerize any part of our application so some items here to deserve repeating one thing you saw is Red Hat Enterprise Linux burning sequel server in a container on open shift and you also saw Windows VM where the dotnet native application also running inside of open ships so tell us what's special about that that seems pretty crazy what you did there exactly burr if we take a look under the hood we can use the kubernetes commands to see the list of our containers in this case the sequel server and the virtual machine containers but since Q Bert is a kubernetes operator we can actually use kubernetes commands like cube Cpl to list our virtual machines and manage our virtual machines like any other entity in kubernetes I love that so there's your crew meta gem oh we can see the kind says virtual machine that is totally awesome now people here are gonna be very excited about what they just saw we're gonna get more information and when will this be coming well you know what can they do to dive in this will be available as part of reddit Cloud suite in tech preview later this year but we are looking for early adopters now so give us a call also come check our deep dive session introducing container native virtualization Thursday 2:00 p.m. awesome that is so incredible so we went from the old to the new from the close to the open the Red Hat way you're gonna be seeing more from our demonstration team that's coming Thursday at 8 a.m. do not be late if you like what you saw this today you're gonna see a lot more of that going forward so we got some really special things in store for you so at this point thank you so much in tomorrow thank you so much you guys are awesome yeah now we have one more special guest a very early adopter of Red Hat Enterprise Linux we've had over a 12-year partnership and relationship with this organization they've been a steadfast Linux and middleware customer for many many years now please extend a warm welcome to Raj China from the Royal Bank of Canada thank you thank you it's great to be here RBC is a large global full-service is back we have the largest bank in Canada top 10 global operate in 30 countries and run five key business segments personal commercial banking investor in Treasury services capital markets wealth management and insurance but honestly unless you're in the banking segment those five business segments that I just mentioned may not mean a lot to you but what you might appreciate is the fact that we've been around in business for over 150 years we started our digital transformation journey about four years ago and we are focused on new and innovative technologies that will help deliver the capabilities and lifestyle our clients are looking for we have a very simple vision and we often refer to it as the digitally enabled bank of the future but as you can appreciate transforming a hundred fifty year old Bank is not easy it certainly does not happen overnight to that end we had a clear unwavering vision a very strong innovation agenda and most importantly a focus towards a flawless execution today in banking business strategy and IT strategy are one in the same they are not two separate things we believe that in order to be the number one bank we have to have the number one tactic there is no question that most of today's innovations happens in the open source community RBC relies on RedHat as a key partner to help us consume these open source innovations in a manner that it meets our enterprise needs RBC was an early adopter of Linux we operate one of the largest footprints of rel in Canada same with tables we had tremendous success in driving cost out of infrastructure by partnering with rahat while at the same time delivering a world-class hosting service to your business over our 12 year partnership Red Hat has proven that they have mastered the art of working closely with the upstream open source community understanding the needs of an enterprise like us in delivering these open source innovations in a manner that we can consume and build upon we are working with red hat to help increase our agility and better leverage public and private cloud offerings we adopted virtualization ansible and containers and are excited about continuing our partnership with Red Hat in this journey throughout this journey we simply cannot replace everything we've had from the past we have to bring forward these investments of the past and improve upon them with new and emerging technologies it is about utilizing emerging technologies but at the same time focusing on the business outcome the business outcome for us is serving our clients and delivering the information that they are looking for whenever they need it and in whatever form factor they're looking for but technology improvements alone are simply not sufficient to do a digital transformation creating the right culture of change and adopting new methodologies is key we introduced agile and DevOps which has boosted the number of adult projects at RBC and increase the frequency at which we do new releases to our mobile app as a matter of fact these methodologies have enabled us to deliver apps over 20x faster than before the other point about around culture that I wanted to mention was we wanted to build an engineering culture an engineering culture is one which rewards curiosity trying new things investing in new technologies and being a leader not necessarily a follower Red Hat has been a critical partner in our journey to date as we adopt elements of open source culture in engineering culture what you seen today about red hearts focus on new technology innovations while never losing sight of helping you bring forward the investments you've already made in the past is something that makes Red Hat unique we are excited to see red arts investment in leadership in open source technologies to help bring the potential of these amazing things together thank you that's great the thing you know seeing going from the old world to the new with automation so you know the things you've seen demonstrated today they're they're they're more sophisticated than any one company could ever have done on their own certainly not by using a proprietary development model because of this it's really easy to see why open source has become the center of gravity for enterprise computing today with all the progress open-source has made we're constantly looking for new ways of accelerating that into our products so we can take that into the enterprise with customers like these that you've met what you've met today now we recently made in addition to the Red Hat family we brought in core OS to the Red Hat family and you know adding core OS has really been our latest move to accelerate that innovation into our products this will help the adoption of open shift container platform even deeper into the enterprise and as we did with the Linux core platform in 2002 this is just exactly what we did with with Linux back then today we're announcing some exciting new technology directions first we'll integrate the benefits of automated operations so for example you'll see dramatic improvements in the automated intelligence about the state of your clusters in OpenShift with the core OS additions also as part of open shift will include a new variant of rel called Red Hat core OS maintaining the consistency of rel farhat for the operation side of the house while allowing for a consumption of over-the-air updates from the kernel to kubernetes later today you'll hear how we are extending automated operations beyond customers and even out to partners all of this starting with the next release of open shift in July now all of this of course will continue in an upstream open source innovation model that includes continuing container linux for the community users today while also evolving the commercial products to bring that innovation out to the enterprise this this combination is really defining the platform of the future everything we've done for the last 16 years since we first brought rel to the commercial market because get has been to get us just to this point hybrid cloud computing is now being deployed multiple times in enterprises every single day all powered by the open source model and powered by the open source model we will continue to redefine the software industry forever no in 2002 with all of you we made Linux the choice for enterprise computing this changed the innovation model forever and I started the session today talking about our prediction of seven years ago on the future being open we've all seen so much happen in those in those seven years we at Red Hat have celebrated our 25th anniversary including 16 years of rel and the enterprise it's now 2018 open hybrid cloud is not only a reality but it is the driving model in enterprise computing today and this hybrid cloud world would not even be possible without Linux as a platform in the open source development model a build around it and while we have think we may have accomplished a lot in that time and we may think we have changed the world a lot we have but I'm telling you the best is yet to come now that Linux and open source software is firmly driving that innovation in the enterprise what we've accomplished today and up till now has just set the stage for us together to change the world once again and just as we did with rel more than 15 years ago with our partners we will make hybrid cloud the default in the enterprise and I will take that bet every single day have a great show and have fun watching the future of computing unfold right in front of your eyes see you later [Applause] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] anytime [Music]

>> Live from Las Vegas, it's theCUBE! Covering VMworld 2017. Brought to you by VMware and its ecosystem partners! (electronic music) >> Welcome back, I'm Stu Miniman and my co-host John Troyer, you're watching SiliconANGLES' production of theCUBE here at VMworld 2017 in Las Vegas. Happy to welcome to the program two first-time guests, but from a company we've talked to many times. Rex Backman and Rob Young, both with Red Hat. Rex is the senior principal marketing manager and Rob is the senior manager of Red Hat product management, gentlemen, thanks so much for joining us. >> Thanks for having us, we're happy to be here! >> So sorry, tripping over, sometimes, titles and things like that, just like acronyms go out there, sometimes. So you know, I go back, I started working with Red Hat before Red Hat Advanced Server came out, which became Red Hat Enterprise Server, then, when we talk about virtualization, it used to be RHEV, R-H-E-V, and now it's RHV! >> Yup, making it simpler! >> Sometimes the people stay in the same place and, you know, the badges change, other times things change a lot. So why don't we start with Rob, tell us a bit about how long you've been at Red Hat, your role there? >> So I've been with Red Hat now for two years, almost to the date. I come from an open source pedigree, so I worked with companies like MySQL, MongoDB, to develop not only the open source model but a community around those products, and a commercialized version that people trust in running their data centers. >> Alright, and Rex, yourself? >> I'm fairly new to Red Hat, joined about three months ago. Virtualization background, really, from the world of Microsoft. So happy to be at Red Hat, we've got a strong offering with RHEV, and we just want to help get people more educated on it and the opportunities we have to help solve their problems. >> Alright, it's always an interesting dynamic. You talk, you know, virtualization, we spent a decade, you know, VMware's ascendancy and the threat of Microsoft, you know, KVM and RHEV and everything were going to be there. There's a nice Red Hat booth on the show floor. Always, customers have had Linux sitting as guests in there and lots of those, I'm sure you probably have stats for me as to how much of that's been Red Hat over the years, but tell us about the relationship, you know, VMware, Red Hat, virtualization? >> So we see the relationship with VMware and other, you know, companies and partners within our ecosystem as very positive. If you look at the workloads that are running on VMware primarily, a lot of those are Red Hat Enterprise Linux, applications that are running on Red Hat Enterprise Linux, so we see it as a very positive relationship. And moving ahead, we see a challenge in maintaining a virtualization footprint within VMware, within the market, because of the evolution of the market. And we see that virtualization is becoming more of a commodity-based feature and the challenges that it poses to partners like VMware, going forward, to evolve along with that model in the market. >> Well, if virtualization is a commodity, and it's becoming a commodity, what's the Red Hat approach with KVM et al in terms of, it is, parts of it are commodity, but certainly, the stack and the system it plugs into is not. >> Yeah. >> I would say, it's also very foundational. Virtualization is everywhere, and I think the value that Red Hat brings to it is, you know, the capabilities we have in our team, the capabilities we derive from the open source model. And then virtualization with RHEV, bundled in with Red Hat Enterprise Linux, it's foundational. And then if you bring in other aspects of the Red Hat stack, around manageability, cloud, things of that nature, I think we have a strong offering, a good offering that people can choose from. And I think that's really important for us, is our customers have choice. And us, we differentiate ourselves on the open source model, primarily. >> Rob, it keeps becoming a more and more complex world. We've been watching, for years, it was the pull of cloud against the data center, now we're even seeing Edge pulling at the cloud. But let's go back to the data center. What's Red Hat's viewpoints, what are you hearing from customers, what do they need in the data center, and how are they viewing that these days? >> So what we see in the modern data center, one, the workloads that we see around Mode One applications or Legacy applications, that footprint is not going away. It's going to continue to have a bare metal footprint as well as a virtualized and private cloud. So what we're doing, and what our customers are asking us for, is a transition from pure virtualization or bare metal to virtualization to hybrid cloud. And what we're doing now, with our engineering efforts, not only upstream but also from a proprietary and configuration standpoint, all open source by the way, is we are giving customers the option to standardize on that virtualization platform built on KVM that shares components with hybrid cloud technologies from Mode Two. So what we see, from our customers, is that they're maintaining a Mode One, but buying and planning for Mode Two. And that's how we see the on-premise data center market heading at this point. >> Okay, I'd like you to unpack that for our audience. Because, big discussion this week is, public cloud, yeah sure, it has virtualization, but it's not VMware. So now we've got this one option, VMware and AWS starting to roll out, are you saying that my data center can really be compatible with the public clouds and, you know, the Red Hat pieces on both sides, or is it native to what AWS and Google are doing? How does that dynamic work? >> So the way we're approaching it is, we look at it, not only as a software solution, but also as a paradigm shift in more openness, APIs, things are more generic. So if you want to plug into a common framework for management, as an example, or deployment, you can easily do that via the open APIs that are available in the open source community. So as an example, we provide a management solution called Cloud Forms. And with that platform, it's part of the Red Hat stack and solution, we allow customers to manage not only the virtualized environment but also, their hybrid or private clouds, but also AWS as well. So if they've got instances running on AWS, they can manage it through one pane of glass. And this is our strategy going forward, but it's not tomorrow, this is happening today with our Red Hat Stack platform. >> Rex, you've got a background in networking, networking front and center, and networking and security even more than ever, that I've seen at VMworld. How does that fit into Red Hat's whole story? >> You know, if you look at the world of virtualization, obviously, we've gone from the story of server virtualization, network virtualization, storage virtualization, and those are the antes into the game now, and I think, Red Hat, with what we provide, and Red Hat Enterprise Linux, obviously the foundation started with, you know, the knowledge that our R&D team brings from their open source background around RHEV and server virtualization. But also, now, network virtualization capabilities, and also, what Red Hat has around storage. So I think we cover those three antes into the game of virtualization, and then, you know, it adds to the equation Rob was talking about, which is the whole Red Hat Stack, which I think is a good story, and a choice for our customers. >> I think, actually, 2017 is actually a really interesting year for virtualization. We're at an interesting era, right? 10 years ago you had some market dominance, you're looking at Microsoft and VMware like we talked about, we had Zen and KVM came up, and they were a little scary for people, right? They were developing, they weren't as mature of a stack. I do think, now, that the average admin in an average, you know, IT estate, is actually dealing with the fact that, oh, I could actually manage multiple hypervisors, look at a mixed estate, it's not as scary anymore, the technology is more mature, more manageable. Can you talk a little bit about that scenario of a mixed estate? Like, if you have, part of your data center is running VMware, what kinds of use cases and what kinds of management scenarios would you, as you start to add Red Hat virtualization to the mix? >> So the dynamic that we see and play right now is, there's a huge install-base on VMware. And a lot of customers, a lot of clients, a lot of partners are looking at that relationship now and deciding if they should invest elsewhere in other solutions. So what we provide is the ability to manage those environments, the clients for hyper-V, for VMware, for Red Hat, all within one pane of glass. But it allows customers who want the choice to manage that heterogeneous environment built on multiple hypervisors, but it allows them to evaluate if, maybe, the Red Hat solution is better for them. And if we can help them with V to V migrations as well, workload migration, mobility, I think that's the perfect scenario for Red Hat, an open source company, and choice. >> And I think some of the customers, you know, public case studies that we've promoted, some of the attributes that they've been looking at that shifted them over towards the Red Had side was performance, you know, was very important. Scalability was very important. So I think, it depends, customer to customer. >> I was actually wondering about, so do we see re-platforming as people are re-architecting? Are these green field opportunities? I imagine, again, it's all across the board. But have you seen any particularly common patterns of people standing up, maybe a new business-critical app on a new platform, maybe they're re-architecting it to be a little bit more cloud-native, any particular directions like that? >> I think, some of the things I've seen recently is an enterprise IT organization has decided to go down an open source path for their world. And then that kind of is a strong point for us. Mountain Health is a company that there's some news on, from last week, is an example of that. British Airways is another customer like that. And, you know, as Rob said. It's large companies, big brands, down to commercial companies as well, or governments, or education. So I think it could be performance, it could be open source, open source is definitely one of the drivers though. >> Yeah, and what we're seeing there with open source is, the more trust is built in open source, the more enterprise adoption, and the cost-effectiveness of working with a development team that's worldwide, a QE team that's worldwide, really helps to build the stability of the products that companies like Red Hat build subscription models around. So there's no vendor lock-in, as well, for proprietary licensing models. And we find that many customers are very open to that discussion, as opposed to, you know, the alternatives. >> One of the other discussions we've been having at VMworld for the last couple years is this whole containers discussion. VM versus containers, is it containers inside VMs, Red Hat Summit, there was huge discussion, there was the super popular t-shirt, on one side it said, Linux is containers, and on the other side it said, Containers are Linux. So where do you see that discussion? What do you think about how VMware's been looking at things? There was a big announcement about VMware and, through the pivotal activity, kind of embracing Kubernetes, Red Hat's, I'm sure, saying, welcome to the party, right? (laughing) >> So there's an interesting dynamic with containers, because containers, Kubernetes, you know, you name the project, is purely an open source play. And if you look at the projects, the contributors, most of this is going to be built on an open source model. So proprietary software companies, like VMware, are going to be challenged to adapt and evolve how they develop, how they contribute, their presence within those communities. Now, Red Hat is uniquely positioned in that our model has been, for the last 25 years, that we're purely open source. Everything we do is out in the community. And it lends itself very naturally, not only the way we've done commercialization of Linux, but we're doing that now with containers as well. And if you look at the dynamic in the market, a lot of people believe that there's VM or containers, and this is really a symbiotic or complimentary relationship. 85% of the workloads for containers runs within a virtualized environment, and containers and virtualization fill gaps for each other that's just a natural complement, and just because Red Hat is already comfortable operating in the open source environment in this way, we think we're just in a very good position to lead in both areas. >> You mentioned open source commercialization. And Jim Whitehurst, the CO of Red Hat, has been on theCUBE, Stu and I talked with him at the last Open Stack Summit. I was super impressed by his insight and grasp into the economics of open source and how Red Hat has been able to build a model like that. Can you talk at all about data centers, or IT spend in general, and capex, opex, where it's going in a more open source driven world? Where do you put your money then? >> So do you want to answer? (laughs) >> I'll take a stab at it. >> Can you now invest your money, that's a little better. >> Yeah, I think it's really interesting. And I'm going to answer this question from the perspective of a three-month Red Hat employee, but with, you know, a lot of experience in the industry with proprietary companies, if you will. I think the value, the commercialization of what Red Hat has done, there's the upstream aspects of open source and the programs available there. And then there's the downstream commercialization of what Red Hat has done, which is wrapping the value of a Red Hat subscription around that open source project. And I think what we see in our customers in terms of budget spend, you know, more on the opex side than the capex side, in our case, is looking at that price point. Because some of our customers, well, many of our customers, if not all of our customers, there is a price sensitivity. I think a lot of our customers right now, maybe this might be a crazy thing to say, may not be as price-sensitive as they used to be. Now it's more about innovation, agility, speed to market. But still, the economics is important. And I think the value Red Hat provides and the uniqueness in the model that Jim and his crew cracked early on to start Red Hat, is the ability to provide that Red Hat subscription at value for open source, and, what we see is that, most of the time, in cases, it's an attractive price point and that's how we win customers. So I think, long-winded answer to your question is, I think there's a strong future. You see more and more companies adopting open source in their programs. I think Red Hat is the leader of that and in good shape! >> Rob, why don't you just give us the final word. Conversations you're having at the show, how are people here in the VMware community embracing, is it an open source discussion, is it the innovation, and kind of, the new features, what's bringing them by to talk to Red Hat? >> I think it's a mixture. So what we're seeing is a lot of interest in Red Hat Solutions, the Red Hat Stack. And I think customers are now looking at Red Hat as a good enough alternative to more pricey alternatives, or more pricey options. And if you look at what we've done from a strategic standpoint is, much like we've done with Red Hat Enterprise Linux, we are now using Enterprise Linux as a foundational support pillar, so to speak, for the Red Hat Stack. If you look at the APIs that we generated, a lot of the interest I'm getting, the question I'm getting not only from customers, but from folks out on the show floor, other vendors, is, what's your API look like? Can I learn more about it? And to me, that's the leading edge of a wave of, maybe that partner's looking a little more red (laughs) in the days to come. So, just, my opinion. >> Absolutely, I know John Troyer and I have been talking for a few years now, that API economy, something that's been coming into this world, and that intersection between what all the Linux admins have known for a long time as to their operational model matches a lot of what we're seeing in the cloud. So Rob Young, Rex Backman, really appreciate you joining us. For John Troyer, I'm Stu Miniman, we'll be back with lots more coverage here from VMworld 2017. You're watching theCUBE. (futuristic music)

>> Announcer: Live from Boston, Massachusetts, it's The Cube covering Red Hat Summit 2017. Brought to you by Red Hat. (electronic music) >> Welcome Back to The Cube's coverage of the Red Hat Summit, Boston, Massachusetts. I'm your host Rebecca Knight, along with my cohost Stu Miniman. We are joined by Paul Cormier. He is the executive vice president and president of products and technologies here at Red Hat. Thanks so much for joining us. >> Thank you. >> I want to ask you about a point you made earlier in your keynote. You talked about the challenges the customer is facing. You talked about how last year the three big ones were cost, security, and automation. This year it's all about Cloud strategy and about the pace of innovation. What is driving this shift in customer priorities and challenges? >> I think the big thing that's driving it, I think over the previous years, people were really test driving a lot of the Cloud and the hybrid technologies. And now, as they actually start to move to the next phase and they actually have to stitch it into their environment, that's where we get real. And that's actually why we see a lot of customers here 'cause that's what we've done over the last 12 to 18 months is worked with our customers in getting this into their environment. Cloud as part of their IT environment and not the entire IT environment. So I think that's what driving it. We're solving real world problems now, and I think that's what we do best, and I think that's what open source does best. >> Paul, I thought it was a great point. I loved to see that the Cloud strategy was like the number one thing, because it is what I've been hearing when I've been talking to practitioners last year or two. I had a T-shirt that said, Blah blah cloud, because we spent so many years talking about it. In the industry it's always, Oh, there's this cool new thing and customer you need to get on it. Now, having a Cloud strategy is critical for any IT department to understand how they're going forward, where they deploy resources, where they go to their partners, like yourself, to be able to change and shift many of the things that they're doing. >> Well, what we've found, even in my own shop, right, even my own development shop, what we've found is you had a lot of departmental groups going out to the public Cloud. And now you're getting, now, because you're spending so much there and pieces going out, now the CIO gets involved, and now they want to look at it. How is this going to fit into my overall strategy? And so, at that point, the only way is hybrid. And so, the CIO now, they don't want five islands of different operating environments, they want one. As a little operating group, really doesn't care, they want their own thing, but when the CIO's now looking at an overall structure for the entire company, that's what's really driving hybrid right now. And that's really driving these implementations, and frankly, that's what's driving a lot of the desire to have this common operating environment that we've been talking about for a long time. And implementing for a long time. >> So how do you do it? When you talked about these five separate islands, but those five islands now need to work together and communicate and collaborate and come up with a unified strategy, how do you do it? >> Two things. First of all, because so much has moved to Linux, RHEL is that platform. The Cloud is about the application. One of the points that I made in my keynote this morning, kind of made it a little subtly, so maybe it didn't come through, we're not building infrastructure for the sake of building infrastructure. We're building infrastructure for the applications. And so, that's the really important part. The applications run on Linux, so the first step, the first step is really getting a common operating environment for the application. We did that 15 years ago with RHEL. So now, when you see RHEL on Bare Metal, RHEL as a virtual machine on US, VMware, or Microsoft, RHEL as a container in a private Cloud, RHEL in one of the public guys, it's the same RHEL. So, we do seven one or seven two, it's seven one or seven two, we upgrade in the same way with the same number of bits. When we have a security update for seven two, it's the same thing. So now the application really with RHEL really gets that consistency. Then, with OpenShift now we bring the infrastructure to maintain it, support it, deploy it, and manage it. And so, that's what's really, the light bulb's going on for a lot of CIO's as they've seen OpenShift, and OpenStack as well, because we're making this hybrid world now manageable and secure. But RHEL's been the key because that's the application. That's the application layer. Frankly, that is the piece that VMware didn't have, right? VMware didn't have any pieces that touched the app. Apps don't run on hypervisors, they run operating systems. And even containers, it's just a Linux OS sliced up in different way. So that's really been the key. We've been at this for 15 years. Really, if you look at it that way, we've evolved this over 15 years. >> Alright, Paul you mentioned briefly in your keynote an announcement with AWS. I know keynote tomorrow is going to go into more detail, but, we think it's a pretty big deal. I've been talking to some of the press, we talked to one of your customers, Optum, who's one of the keynote speakers. I mean, he said game changer. This is, he uses Open Shift, loves what we can do this. You were just talking about the application Affinity, and that's what infrastructure's for. Can you connect that with what we're talking about with AWS here? >> I think why this is a game changer for all of us, and mostly the customer, is because, prior to this, invoking an Amazon service for an application would mean that it could only be invoked from that infrastructure at AWS, can only be run there, frankly. And it really was limiting. With now bringing the connection points back into OpenShift the application can now invoke that Amazon service from on Amazon, or even on Premise. And it really extends the reach of Amazon to come in to really now build a hybrid environment. And I also think it's significant for our customers telling both of us, both Red Hat and Amazon, that they want want to run in a hybrid world. So, that's the game changer. It really extends both of our reaches that way while keeping that consistent operating environment with the RHEL base. >> And that's different than just saying oh, I can run a VM in an Amazon environment. >> Right, because you're running a VM as an island. Now, you're running an actual system that's spanning across the hybrid world being managed and orchestrated from one place. >> I want to talk to you about your approach to the product design and development process. In the past you have talked about the virtues of patience and how you do not build a multi-million dollar product overnight. It takes years. And yet, on the other hand, there is this desire and hunger for fast innovation and changes. How do you strike that balance with your team and also with customers? >> My wife wouldn't say I had that much patience. (laughing) >> But at least you appreciate that it's a good thing. >> No, I mean, frankly, our company and even all the way to our board of directors has been very, very supportive of that. I mean, the first thing we do is we start and ease up stream communities. And really, what we are doing now is we're really integrating multiple communities together. When it was just the OS in the past people used to say all the time there is no Linux community, there's multiple communities and our job is to bring it all together. Right now, it's that on steroids. We try to pick the right technologies and drive it. I mean, I'll give you a great example. We bought a company a few years back, Qumranet. At the time Zen was the hyper visor, the community was going to KVM, we bought the company, they had zero revenue, we had zero additional revenue because it was a hyper visor. We bought it so we could get behind the community, bolster it, and know it would go in the right direction. That is the key that no one else has really figured out, is to place yourself in these communities over the years, and drive it, drive it, drive it, and then bring that innovation into a product. I call it the difference between a project and a product. Our products are really an amalgamation of many communities put together in a platform to solve a real world problem. But you have to have the patience. RHEL has been such a successful product for us, frankly, it's fueled financially, it's fueled us and given us the ability to have the patience for all these next generation platforms. That's what's done it for us really. >> Your CEO Jim Whitehurst, in his book, talked about how from an acquisition standpoint, everything you do, it's got to be open sourced. Does that hamper you at all or are there certain technology areas, things are moving so fast, that would you buy something and keep it internal for a while until it was open source? How do you handle something like that? >> The last five or six acquisitions were not open sourced, so we open sourced them. >> Stu: Okay. >> It's just in our DNA, frankly, I think it's forced us to do it the right way, because we couldn't have a closed sourced product now if we tried. If Jim and I said we're going to have a closed sourced product we'd be in the office alone. And it's in the DNA, and it's really forced us to build better software, because we never ever think here's the line and everything below is open and above is closed. We never have to think that. It's all open. And it just forces that innovation. The landscape is littered with companies that have tried to have that line. It just doesn't work. You confuse your your engineers, you confuse your market, you confuse your customers, you confuse your partners. It's all open. And that's what really drives the innovation. >> Let's talk about recruitment and getting this war for talent that we're seeing in the tech industry. Red Hat's based in North Carolina. You're based here in Boston. Of course we have people here 70 different countries, as your CEO mentioned in his opening remarks. What are you seeing? What are the trends? What do the best and brightest developers want out of an employer? And how are you giving it to them? >> A couple things. Up here in Boston the products group is headquartered up here. Sales group is headquartered up here. So we sort of live together. One of the things we've just did, we just announced we're opening an office right across the street here, for both R&D and our customer briefing center. So one thing is-- >> Congratulations. We're excited for that. Of course you'd had the Westford facility with lots of engineers. But Boston, a block away from where GE's new headquarters going to be. >> A block away. It's about collaborating with the universities, collaborating with the students to come out of the universities. I see it around the world. No, but they want to be in the city. >> Rebecca: Yeah. >> They want to be in the city. That's the first thing. We have a thousand engineers in the Czech Republic that are core to our product. They build many of the products in the Czech Republic. We're near universities. The reason why we did Boston for the R&D is universities, just as the Czech Republic. Because now what's taught in engineering and computer science programs is Linux and open source. So when students can get out, go work for a company, we give them the freedom to really drive where the technology needs to go, that's really our recruiting draw. I would never go into our engineers and say you will implement this this way. They implement it the right way. >> Rebecca: So autonomy? >> Autonomy. >> Rebecca: And cities. (laughing) >> Paul: Well, autonomy and cities in the right places. >> Right, right. >> We're really looking for the talent that really wants to innovate. And they're coming out of the universities now doing that. So that's what's been successful for us. >> Alright, Paul we were talking about this is the 13th year of the show, it's the fourth year we've done it. The Cloud piece has really matured a lot. If you looked forward, if we come back a year from now, what do you kind of see as some of the major things that we'll want to have accomplished? What's on your plate for the next 12 months? >> One of the things that we're looking at now, I sort of ended it up in my keynote, is we really think that we've really abstracted the differences for the application layer, storage layer, application layer, management layer, across the hybrid world, but there's a lot of pieces of the infrastructure that the operations people have to deal with every day. The network stacks, the really underneath and the plumbing storage stacks. Sort of the difference between OpenShift and OpenStack. VM's being orchestrated beside containers. So we really starting to see those pieces come together. Really that application layer and that infrastructure layer coming together. We think of OpenStack as bringing the infrastructure to the hybrid world and OpenShift as bringing the application to the hybrid world. Starting to bring those pieces together. And I think that's what you'll see more of next year. Is commonality around management, orchestration, networking, storage, just more of that, and more ease of plug and play. >> Great, well Paul Cormier thank you so much for joining us. This is Rebecca Knight along with Stu Miniman. Thank you for joining us at Red Hat Summit 2017. We'll be back just after this. (electronic music)

[Voiceover] Live from the Mandalay Bay Convention Center in Las Vegas it's The Cube. Covering VMworld 2016. Brought to you by Vmware and it's ecosystems sponsors. Now, here are your hosts, John Furrier and Stu Miniman. >> Welcome back everyone we are here live in Las Vegas for VMworld 2016 at the Mandalay Convention Center. We're in the hang space where The Cube is located. I'm John Furrier with Stu Miniman. We're here with Chad Sakac the President of EMC's Converged Platform division formerly known as VCE. Welcome back. Great to see you. Fist pump. >> It's good to see you. >> Seven years we've been doing The Cube you've been on it every single year. >> I can't believe it. >> We love having you on. >> The Cube has become a fixture of VMworld for me. Seeing you guys. Your good looking faces. It puts a smile on my face. But I can't believe it's been seven years. That's insane. >> Yeah. The seven year itch as they say in VMworld. So I got to ask you. You're always candid and colorful. But you've seen the transition. You've been in the trenches. Coding. Now you're president of a division. Big division doing great. >> It's terrifying isn't it? (laughs) >> It's interesting. The Cube is bigger. We're all getting bigger. What's your take right now? You've seen the journey. Seven years. Where are we? >> VMworld has always had a huge community. One of the things that's been defining about VMware's whole journey has been the community. And that's one thing that has stayed pretty constant. Right? There's a lot of people here. This time in Vegas. Previously in San Fran. They share a passion and a love for all things that Vmware is doing. That said. It's a very different show. It's a very different context. It's a very different ecosystem. Literally at the beginning it was one product. Right? Now if you look at the keynotes they have to struggle to get all of the awesome into an hour and a half and do it in two days. Right? And they can only hit certain highlights. Sanjay did a great job today. Kit did a great job. My favorite, Yanbing. Yanbing Li has got passion, energy and loves her baby vSAN. But imagine trying to cram all of that stuff in previously in years past. If you go back seven years that would've been all of Vmworld would it had just been on just one thing. Right? And then obviously the other thing that's going on is the entire ecosystem has changed. So we're seeing consolidation in the ecosystem. But we're also seeing, I think Pat actually did the best job I've ever seen of that realistic balance of what's happening in traditional IT, private, public hybrid cloud models. And how that's going to play out over the next few years. But there' no question that public clouds are a huge part of the landscape for here. For now. For tomorrow. Forever. >> Pat got some criticism on Twitter. Also, some blog posts out there said that the keynote was a snoozer. But it was straight talk. And that's what the ecosystem wants and we're hearing. Stu might have his own opinion on this but what I'm hearing is I want to see the path. I want to see where VMware is going to be going so I can get behind that train. Clarify. Show me the straight and narrow roadways so I can turn up the gas a little bit. >> There's the expression that basically says the customer is always right. Or the people are always right. You can trust the people. Sometimes the customer is wrong. And sometimes the people are wrong. So last year they went bananas over vMotioning of VM between two clouds. Because it plays to the base. It plays to the audience who are like I love vMotion. Why wouldn't vMotion between clouds make sense? The reality of it is that while that was cool and technically accurate. This year's demonstration of basically saying no, you're not going to motion vm between on prem and public clouds very often, if at all. But you will need to be able to do things that bridge public clouds. Is actually a much more correct and relevant answer for the market. Now the difficulty is is that sometimes you're telling people things before there ready to fully internalize it. >> Embrace it. (laughs) It's shock of the system almost. Really. So you play the base. It's a lot like politics in that way. But I got to ask you the question. >> By the way. Just like in politics if you constantly play to the base you never move forward. >> Yeah. And this has always been a diverse ecosystem. So let's start with the cloud things. Obviously ecosystem is back on the table, I'd say. It's front and center. It's always been front and center but as it consolidates we're seeing its straight path. The question that people want to know is. Will everyone have fair access to the VMware as an independent company visa the new big mega merger was announced by Michael Dell just minutes ago that September seventh will be the close date. >> What are you talking about? >> Dell Technologies. >> What? (laughter) >> You can talk about it. Dell announced it. Michael tweeted about it. >> We're not bait and switching you. We'll show you his tweets if you want. >> I'm joking. I'm joking. And by the way, I'm so pumped and so excited. Frankly, I think not everybody understands exactly what's going on inside the industry. The server storage and networking ecosystems as stand alones are actually shrinking. As workloads move to SAS. As workloads move to public cloud IOS. The parts of the ecosystem that are growing are customers that are basically saying they want converged, hyper-converged and turnkey software stacks and that's they way they want to consume. They want to simplify stuff down. To be able to pull that off you have to have all the ingredients inside the stack. Increasingly, you will not be able to be competitive without having all the those components in the stack. And this is why I am passionate that convergence hyper-convergence and convergence and also turnkey software stacks will be at the center of Dell Technologies. And I keep telling Michael and he keeps agreeing which is a good thing. Right? The reality of it is is that we cannot, in spite of that statement being true, it is also true that people will continue to want variability. That may a be a declining set but it's a bigger set of customers. And the customers are like I'm all in on turnkey. So this one is smaller but growing faster this one's a much bigger ecosystem of, I'll mix and match whatever I want and put it together. Alright? So if you look at Yanbing's section. So she said HP with vSAN. Then she went VxRail and Yanbing thanks for the shout out during the session. That was awesome. They were powering basically some great events with Di data and powerful things in small packages. That's a highly integrated system. And then they brought up a customer that was totally building it themselves. Right? So it literally in a span of two minutes you had the continuum of build it yourself, a turnkey thing and it build it yourself. So will it be sustained? Yeah. Can you expect that we are going to lean in like crazy on our integrated stack? Yeah. But will we do it in exclusion of the ecosystem? No. >> There's just different use cases. >> Yeah. VxRail is winning in the marketplace because it's a highly opinionated vSphere HCIA. If you don't have vSphere. You don't like VMware it's not the HCIA for you. Right? However, more customers say yes than they say no. And that's awesome. But we know that we're going to need to create a next generation of the Microsoft Azure stack. On prem HCIA. It won't be built by the VxRail team. But there customers want it that way. And we're not talking about it a lot this week. But last week we launched VxRack new treno which is a turnkey open stack KVM SUSE based thing. Choice baby. >> So Chad, first of all the Dell deal is announced. So this is the final nail in the coffin of VCE, correct? >> Absolutely. Of course not. The reason that we are shifting the way we talk about VCE is something really simple. If I say VCE what's the first thing that appears in your brain? >> Stu: vBlock. >> Va-blah vBlock. And that's a good thing in a sense. >> How much revenue did you do last year, Chad? >> Three point five plus billion dollars. Almost entirely in vBlock and VxBlock. >> That would be a nice a public company on it's own. >> On it's own. Right. And growing at 40% cumulative annual growth rates. That is amazing. Right? >> It's not a fail. >> And by the way the thing that's interesting is that hasn't slowed down one iota in spite of the fact that everyone knows the Dell deal is going to close. However, the difficult it is is that we are no longer just he vBlock group. We have these hyper converged appliances that are growing like sync and customers are voting with their feet and their dollars. I think in a short amount of time we'll be the number one by customer, by revenue HCIA player in the market. But furthermore, we also do these turnkey cloud stacks. So realistically VCE is more of a product brand than it is a company brand. And we're no longer a separate company. We're a part of VMC and on the seventh we'll be part of Dell EMC. >> Chad, can you help us connect the dots? We've got the converged infrastructure. The platform. You've got some SUSE team. Talk about SAS and public cloud. How does Dell, EMC, VMware stay relevant going forward and play a part in that whole story? >> So it's a great question. I'm going to try to see if I can do this in an uncharacteristically concise way. Do you believe that hybrid cloud models will win? >> Stu: Sure. >> Chad: Do you really believe it? >> I mean what we have today isn't really good hybrid cloud but that's where we need to go. >> So, by the way, we need to make the on premise clouds as simple and easy to consume in utilized modes as the public clouds are. >> Stu: Love that. >> Chad: Right. However, I think that it is inherent that economics, governance, data gravity will always balance out some workloads biasing toward public. Some biasing towards private. Furthermore, do you think that there will be one cloud model that will win? Will it all be the VMware SDDC cloud? Will it all be Azure? Will it all be Amazon? Will it all be cloud foundry? Will it all be SoftLayer? >> Well Andy Jassy has an answer for you but many people will differ with that. Including Satcha and Michael and everybody else. >> I think that there's never been in the history of all time any sustained period where there's a singularity of a stack. >> VMware has done pretty good for a while. >> Yep. But, by the way, there's never been in all of history any extended period of time when there's been a singularity of a stack. Right? So our point of view is very simple. My mission in the converged platform division today is basically to build turnkey CI and HCI to power VMware powered clouds and Cloud Foundry power clouds. Tomorrow, meaning on the seventh, immediately my strategic posture toward Microsoft pivots. EMC has always had a partnership with Microsoft but nothing like Dell's. Right? So immediately, I'm going to go. Well we must have the best on and off premises version of the Microsoft Azure stack. Dell currently leads in that market but it's very early days of that. We go from having two clouds both on and off premises. To a third one that we add. And then of course there's a fourth one which says if you want to run your most mission critical, business critical, classic apps. Virtustream is the way to go for an SAP legacy landscape. That you want to put in the cloud. That needs to have an on premise variant too. So, four clouds. Each one on and off premises. Each one available in Capex or utilitized models. If we can pull that off we can be the strongest cloud player on the market bar none. I think that's cool. >> With the choice as the key sales pitch to the client which is pick the cloud that does the best job. >> The thing that's interesting is that sometimes choice is a euphemism for blah. Like I have no strategy. I have no opinion. It's just pick whatever you want and assemble it. What I'm describing is something a little different. Which is a choice between four highly opinionated turnkey offers. >> Okay. >> Right? Now of course, we'll enable customers to build there own things but I think that over time less and less customers are going to want to do that. >> And Chad, I think that points to what we've seen in the wave of converged infrastructure and cloud is we need to get out of that heterogenous mess where I've got the poor guy buried in wires. Running around. Trouble tickets and everything else like that. It needs to be simpler. We need to have the management tools. Chad, I want to get your viewpoint on VMware. One of the criticisms I've heard is kind of the cloud management stack. We've been swinging a bunch at this and we don't yet have a solution that customers are happy with. Where do you think we are? Where do we need to go? >> So, you've been around the block on this and customers who are watching this have been around the block on this. Cloud management platforms are tough. Its actually a very, very fragmented market. With very little consolidation in the past or even looking forward. Now inside that space vRealize is actually the strongest. And it's the most deployed. It's the most widely used. But again, I don't want to make it sound like ahh we're number one. Right? Clearly there's a lot of work to be done. Last night I was talking with Sajay who heads up the vRealize suite team. And what we've seen is that the team has done a lot of work out of the 6.x, 6.5 dot and you know 6.X days into the 7.X days. And customer feedback is that it's much closer to the mark. A in terms of core product workflow, upgrade-ability. All of those sorts of things. But also in the fact that it actually has extended out to be able to automate and deploy on top of Azure and AWS. In the beginnings of the extended cloud connects vision. Now that said. In those four opinionated cloud stacks. Now this is my personal opinion, here Stu. So I always have to safe harbor all that jazz. (laughs) I think that what you see is you see those highly opinionated cloud stacks. The CMP layers, the top part of it, being able to speak to each other but always favoring their own ecosystem. Right? I think that we're going to be in that mode for a long time. >> So Chad, some people might not be aware that in addition to the VCE products in there that the solutions piece and the cloud that you have. The progress that you've made. We've talked to some of your team. I think we've got Peter coming on today. Can you talk about the EHC NHC maybe even share a bit of revenue if you can. >> Yeah. Sure. First things first, it's important to understand this at its core. The original idea of VCE, which is now eight years old, was a basic premise that says we have a pile of giblets that are all awesome. However, customers struggled to assemble them. And they want to have a turnkey offer that they can lean on us to not only deploy but sustain, support as a single offering. That was the origination story. Replace server networking compute with hypervisor, IT business operations a CMP all of those things and you have the enterprise hybrid cloud. We started getting lots of feedback from customers. We love vSphere. We love vRealize. We love vRealize automation and operations. We love all of this log-in sites stuff. We're all in with Vmware can you guys give us the easy button? Right? And so we started on version one. Then on version two, version three, 3.5 and this week we announced version 4.0. Right? We're now up to hundreds of customers so it's still in the hundreds. But it is the most curated. The most turnkey way to get the VMware SDDC deployed. Now, I still think we have a long ways to go. Because we need to make it so push button, easy. And cloud foundations that Pat announced on Monday. Is a core part of that. Think of cloud foundations turning to validated designs and the enterprise hybrid cloud being the ultimate manifestations. >> Chad, just a clarification. Hundreds of customers but from a revenue standpoint that's probably bigger than the hyper-converged market. >> So you know what's fascinating. That's actually a fact. So I hadn't really thought about it. But we're currently on a revenue run rate that we don't disclose publicly, but I'm like, how do I tiptoe around this? It is larger than the largest HCIA players by a good market margin. >> Right. >> So you're talking about hundreds of millions of dollars worth of annual revenue. And customers are saying, look I'm in. I saw the keynote. I'm aligned with VM where I want to go. Right? And enterprise hybrid cloud is designed to do that. We keep reiterating on it. On virtual geek there's a whole slew of details on the 4.0 lease. And then the other thing that we started to see is we started to see customers say, I get it. With the enterprise hybrid cloud you've made my IT operations for classic IT better. How do you help my developers build the digital enterprise? Which doesn't start with infrastructure. And it doesn't start with IAS. It starts with the way developers see the world. Which is the platform layer. And we're on version 1.1 now of the native hybrid cloud which is targeted at how do we build a platform for building cloud native apps? And that starts not with infrastructure. Not with VMware. Not with EMC. Not with servers or network. It starts with cloud foundry. >> Chad, we got to wrap. I want to get one final point in and I want to get your thoughts on it. It's more of a historical perspective but also kind of a futuristic. Take your EMC hat off and put the personal Chad hat on. The ecosystem. Where is it going to go? Obviously it's consolidating. Which means it's shifting. So the old ecosystem was great and robust as you mentioned. It's not necessarily dying. It's just shifting. It's consolidating. So that means it's shifting to something else where there will be growth. Where is it moving? Where is that puck going so people can skate to where the puck will be? >> That's a great question, John. I'm always a geek at heart. I'm always going to run that vSphere cluster in my basement. It gives me joy and gratitude on cool new intel NUC. Great stuff. But in my new job. (laughs) as the leader of a big business. The broad landscape picture is fascinating. This isn't actually rocket science. You can decode it remarkably and quickly. In industries that are declining or under pressure. Secular pressure. Consolidation is inevitable and you have to pick your partners wisely. I think people underestimate how much giants that they would think of as safe and secure bets are under pressure. Michael was wise enough to take first mover advantage. Because in those periods no one has shrunk themselves to success. Right? Conversely, you see very diversified ecosystems. When you see a very diversified ecosystem ergo cloud management platforms. Ergo security, like oh my goodness, the number of security startups and players. A hyper converged startups. I count 39 of them at the last turn. Right? They go through a life cycle of explosion of ecosystems and then inevitable consolidation phase. And people look at that consolidation phase and say oh, the fun is all over. No that means that the fun has begun because your actually starting to really move the needle at customers. Right? So you can expect to see consolidation and security space. You can expect to see by the way very disruptive point technologies occur. The container ecosystem is going to explode and then consolidate. And when you see that consolidation happening the container act Sysco acquisition is one of the earlier indications in that space but just one of them. It means that it's moving from sizzle to steak. Again, look at the open stack ecosystem. About a year ago everyone was like, all the fun is over. All of them have consolidated down into the big massive players. It's because people are now getting down- >> John: Rubber is hitting the road. >> Rubber is hitting the road. >> So where is it going now? Where is the fun going to be? >> The fun is definitely going to be very much in new data fabrics and new applications. There's no rocket science there. The space that you saw the tip of the iceberg on the cloud. Cloud connection of how you can bridge. Bridge doesn't mean migrate it means create connective tissue between on premises and off premises clouds. It's going to be really, really interesting. I think one thing that is fascinating is roles for human beings that span functions. That is the new magic mojo. When I find someone who is a developer. Who understands infrastructure they've got mojo. When you find someone who understands the span of what's going on inside the ecosystem that person's got a bright future. >> As they say in baseball, the players have to have multiple tools in their bag. Chad, we got to break but great conversation. Thanks for coming on. Really appreciate it. Good seeing you. Congratulations on all your business success and September seventh is going to be the big close date for the mega transaction. >> It's going to be awesome and by the way guys, congrats to you. Seven years of this is great. I can't wait for next year. It'll be a lot of fun. >> Thanks. Chad Sakac here inside The Cube. Where all the things are happening at VMworld inside the Hang Space at the Mandalay Bay this year for VMworld 2016. I'm John Furrier with Stu Miniman. We'll be right back. You're watching The Cube. (upbeat music)

hi buddy we're back this is Dave vellante Wikibon org with Stu miniman my co-host in this segment Chad saket just here a long time cube guest good friend of the cube Chad great to see you Dave it's my pleasure as always man Stu it's good to see you my friend you know it's unbelievable right we shot and I've been talking all week we started the cube 2010 at the MC world we did SI p sapphire the week right after and then the big show for us that year was was vmworld 2010 it's the best show in town it really is it's you know we said at that greatest show on earth we're betting the house on on VMware you know as a as a topic because it is the IT economy yeah obviously spent a lot of time and as you know effort and appreciate you know the shout out that you gave us the other day on the research that we just did I appreciate the shout out that you your results found well you know it's it's all legit you know as you know we do our homework but David's do put a lot of time to that Nick Allen as well so we're really proud of that that work and at the same time things are evolving yeah I guess they want to go back to it must have been 2009 maybe we sat in a room and you chuck talked the future storage networking the up security obviously compute yep management and the whole deal and we spent a good four hours in that room yep you know I was spent after that but I was just getting started I know you would just get that much everything you laid on us that day is coming true yeah really it's really true I mean you said storage is going to be invisible eventually going to get to the network I mean you know the security pieces and on and on and on so so you know I think that that's definitely the story of this year's vmworld right the idea of what VMware is done by abstracting the control plane of networking with NSX you know prior to that integration to Sierra having talked with a lot of them to see our customers they're super happy with it but prior to that it only worked with open V switch which meant it was you know reserved for the customers who are going all-in with kvm and with Zen now in vsphere 55 it supports the distributive V switch in vsphere which means that idea of network virtualization can be applied to a large swath of customers and likewise vmware is doing the same thing for the control plane of storage which you know Stu that was starting even when you were intimately involved at it when you were at emc absolutely around control abstraction using Vasa and and the early ideas of V vols and the other thing that's going on is they're disrupting the data services plane by becoming a storage vendor with their own storage stack with v Sam yeah and we're going to talk about that yeah for sure in a second I got some time on gots do so that's it that's just your wheel so on the storage piece you know unpack for us a little bit Chad you know we talked about storage becoming invisible and we'll talk about in the network space you know what is the value of the storage array of the storage stack itself and how does that play with VMware especially as we look down to everybody's showing bball so look the name of the game is hyper automation in the end it's not storage it's not networking it's not even compute right and we talked about in the past that the design and the dream of the software-defined data center we use different words for it back you know four years ago but the vision of joe and and all of the parts of the federation of emc vmware and now the third one pivotal is to try and say how do we make all the infrastructure in essence invisible pivot even takes it further by just saying hey we'll just use paths and and get rid of even all the measures are going service for years ago right I remember it well they so really do that yes so so that the reason for it is is that it sucks when you try to provision something a workload whatever the workload maybe and the tail the long tail in the process is touching the physical infrastructure of storage networking and compute virtualization historically has tackled and I would call that problem for compute in essence solved can there be improvements for compute sure bigger faster stronger right in storage land inevitably you know we move from the stage of you talk to the storage person they provision something to you to the storage person provisions a pool of something and then you can automate that and deuce from vsphere and use it through plugins and automation ultimately though you would not even want to have that step you'd want to have the storage advertise its capabilities and then when the vm gets created it says I want out of that catalog of services this stuff and that's what Vasa and whole storage policy based management stuff from vSphere 50 51 and now 55 we're all about in networking land you don't want to have to configure VLANs you don't want to have to configure firewalls you want it to be all able to be done programmatically an only way to do that is if you can like we're just talked about with storage and with compute abstract out the network topology yeah I mean I really look at it what we've always said is we need to get rid of that undifferentiated heavy lifting so that the question I have there's there's a lot of startups in this space that have built their products for this new generation builds is a vm aware if you will or just just simple simple and the critique on emc is that this is legacy equipment and well it might be integrated and you're updating it you know this was still legacy architectures you know how does that fit into the new world so you know when you are the leader everybody will throw stones at you and occasionally even as the leader sometimes we throw stones at others and I don't like that right but I think you might be talking about our friends at perhaps tintri as an example well that they are one that they are built for virtual environments absolutely and if you take a look at it what everyone who is in this space new players emerging players we're trying to today hack at that problem tintri to write because there's no constructs at the vSphere layer for vm awareness what they do in their Nasdaq we do in our Nasdaq is to say AHA file is an object a file can be snapped a file can be replicated and if we hyper couple it into vSphere using plugins and extensions we can then manage and operate on those files right now again I'm not saying that our implement eight it's up to the customers to decide about whether emcs is better or ten trees is better and ultimately the customers choose right but basically we're all kind of trying to hack at that because right now Vasa which is the official policy communication vehicle only operates on data stores data store unit of granularity right V vols has always been the target of how we would all as an industry do that right so i would i would argue that what we showed today about you know recoverpoint and the splitter driver and being able to do tivo like functionality for a vm or replicate for a vm i would argue we more than hold our own with the competition but the right answer ultimately is actually to keep going down the path of V vols in the evolution of vaasa so that you know it can be done correctly and not fake vm awareness but actually have fundamental vm awareness I so since we started on storage I got to chime in here so a couple things so I asked Pat this this morning and his response was essentially hey it's all good these guys are on board but I'm skeptical so about what here's the here's the about what so as I said sort of off-camera Microsoft and Oracle I've already been grabbing storage function and their narrow little parts of the world but you p.m. seen a nap everybody else you've seen NEP but particularly Mabel to find ways to add value I compete very effectively there iam VMware's this horizontal player mm-hm and doing something like v san yep you know its nose software-defined this is you know the future I said to Pat well don't guys like EMC and netapp and shirts certainly HP and itachi and IBM etc don't they want to do their own software-defined he goes yes but they're sort of bought bought into this and what do you think about that as a salt as emc I think I think I don't know whether it's right to say it on camera or not I think that basically as NSX was announced and v san has been announced and everybody in the industry is known that these things are coming you know you could hear audibly people's uh what this what the you know you know you're kind of a cisco right of these in I mean so V sans idea of saying hey I'm going to glom the storage that's in the server the dads the flash the pcie-based flash and use it as a distributed storage layer is a good idea it's an idea that is real and innovation is non containable as as Pat would say you know he's a super fan of andy grove right you know is his mentor Andy Grove had a famous quote that basically said innovation can't be stopped if the incumbents don't do it new startups will arrive that will do it yeah no that's that's fair right Sam Palmisano as well said you're going to get commoditized no matter what so so but the key thing is that it will take some time for V Santa mature the 10 target was correctly positioned in the in the keynotes as use it for non-persistent VDI use it for tests and Dev customers are slowly starting to grok the idea of hey wait a second this thing by definition has to create multiple copies of the data on multiple servers so it's space efficiency is not as good right but I think what's going to occur is your people are going to start to use it and they're gonna dig it yeah they're going to want more and they're going to want more which is great right now from our standpoint EMC sales reps may not like it but EMC likes it because you know what there are portions in the market where we have had great success taking lots of share continue to outgrow the competition but there's other places where we frankly fail to serve properly and if those customers choose v san kumbaya customer happy shareholder happy it's all good right v san will expand though right and in fact as a company we embrace the idea of a software-only data service and this is a data plane thing not a control plane thing that's why we acquired scale io recently right because we're looking a look v san will be the answer for customers who love vmware and our 100% vmware and i talked to a big one today who are like yep that's us likewise i talked to a huge one that were like nope we need an answer that's like v san but works with kvm Zen and hyper-v and vsphere some people like their stacks to lock in at one point and their trade that off and your surveys showed that yeah yeah others about half a woman to live with that right and get function they get function and simplicity right and V San will be phenomenal at that as people are seeing now right i've been using the beta for a long time so I know what but the reality of it is that it's going to be a broad kind of ecosystem of traditional storage stacks embedded into hypervisor storage stacks ones that are packaged as bring your own server akv San and scale IO type things ones that are packaged as will give you the server to new tannic simplicity we live in a beautiful chaotic works hope so boyer in this piece the piece that he had stew did took a little shot at the cartel and you didn't like that you thought you shot back so no that is absolutely not not how we roll it's not how are you roll so so how do you roll hotel eat what you kill Isaac cuts hit it you know so listen to be very blunt I'd be lying if I didn't said that there weren't moments whereas EMC we don't get frustrated that hey you know VMware you you should always work with us right again it happens more in the in the field rather than from a you know our headquarters standpoint right there's times where VMware gets really grumpy when EMC is supporting hyper V or OpenStack and a customer right there's times where vmware is really angry that pivotal runs on AWS and like the announcement earlier this week was hey it works great on vsphere like so think about how weird that is it's been like running on AWS for a while now it runs on vsphere and I bchs right Joe is I think Joe Tucci i think i have an insane amount of respect for that guy he was wise enough to go i need to resist the temptation to simplify for our own internal purposes and create lock-in from the past stack through the app stack through that you know vmware stack through the emc sec and instead say you must all fight for the customer independently and EMC you have to pursue it assuming that VMware isn't a constant VMware you must pursue it as if EMC is certainly not a constant pivotal you should pursue it as if neither one of them is a constant now the one thing that I would highlight to everybody who's watching is don't understand miss understand what I'm saying at the same time whenever one of them is not the best choice for the other jogos hey hey what's up guys it's got this yeah who's got this ball so when V CHS was being stood up and they were looking at alternate storage choices Pat didn't say you have to use EMC but he knocked and said guys we're looking at different storage choices you better come in here and if you don't win on your own merits we'll go with someone else you know I think thankfully they did right and we made that argument you're saying if part of Pat's 50 billion dollar cam comes out of AMC's hog well that's the MCS problem they got to figure out how to shore it up yeah we have to figure out how to compete Chad wonder if you know you own the global se forth you know for emc in this ever complicated world it was you know it wasn't easy when you created the V specialist force but it was focused on VMware and they got a lot of weight behind that there were product managers marketing people all with vmware yep titles inside emc in this world of OpenStack and you know hyper-v and kvm how do you deal with that in the field so so that's a great question man so the first observation just while there is diversity right your survey reflects what I tend to find at my customers right which is overwhelmingly VMware within the enterprise use of some k VMS and OpenStack you know where they would have used vSphere or or the vcloud suite a little bit of dabbling in the enterprise some enterprise customers more than others the cloud service cloud service providers far more right when we were doing the V specialist thing it was an effort to rapidly ramp things up and so we built small focused team small focused product managers what's now happened over the last four years is you know if you think back man like EMC was like a no-show at vmworld 2006 right we our company got the memo focused in we won the best storage choice for VMware deepest integration blah blah blah the what's HAP makes me very happy now is that's now embedded into the product teams it no longer requires a someone watching it just happens organically gooood from a field standpoint the V specialist role many of those V specialists are now leaders of the SE orgs and all sorts of functions so it's no longer somebody thing it's now on everybody thing right but the V specialist mission which used to be makes sure that emc is the best choice for VMware has broadened out to really be best choice for the vcloud suite and VMware stack and also OpenStack to understand and reflect the fact that it's a it's a dynamic open world so so we brought to get in the hook and made me talk about networking so we're just going to ignore the hook for now and talk about networking so NSX yes awesome we saw Martines yeah a little demo up there but it's not going to be that simple why is networking so so hard and you now remember 2009 yeah showed us the roadmap yep now we're here where's it's so first things first what he demoed it is actually that simple if you can constrain a whole bunch of parameters right so if you can constrain yourself to every endpoint is a distributed virtual switch or an open V switch like that thermodynamics problem you can so know what I'm talking about so so if some assumptions its simplify rate they write it if you can if you can constrain it and say everything is connected to a distributive e switch from VMware or an open V switch from kvm and Zen and you assume that the net physical network layer is a bottomless pit of bandwidth and latency in other words you know that there will never be a contention you know at the core networking layer it actually is really that easy right now that may sound like Chad those two constraints are stupid they're not actually that stupid right within the core data center bandwidth is very easy to apply it's much easier to say I'll deploy 10 gige and then go to 40 gig e than it is to hyper design the data center with qos and manage the you know customers have demonstrated time and time again that they'll just go from one gig to 10 gig to 48 to 100 gig rather than trying to hyper engineer the whole thing inside the data center in the wam different story right right also I mean it is a true statement to say in a service provider and in most enterprises eighty ninety percent of their workloads do finish on a thing that is attached to a distributive virtual switch or a physical switch right now where it's going to get funky is that obviously I think NSX is perhaps out there in front in terms of SDN land but they're not alone you know there were lots of partners and we know that cisco has got some cool stuff that they talked about at Cisco live and that our are coming right and you can't you know this goes an amazing company and they have many beloved customers and CC IES and CCNA s around the globe that you know are going to be very interested to see what since you been see I mean interesting play and you can read all about it online and people speculation sure yeah it's going to it's going to be cool though I mean I think one thing that is fun to remember is like innovation is non-stop about it'sit's disruptions or can't be stopped they're going to happen no matter where and in the end it's fundamentally all good for the customer whether it's real CVM where NSX whatever what I love and I said this the pet and I said this did Paul Moretz when I first heard his you know vision I said you guys vmware is ambitious you know if nothing else its ambitious and it's executed on that ambition so it's toss them to watch oh and you know stay tuned for next week September the fourth speed to lead there's some exciting stuff coming from EMC we generally have learned over the years that it's not a good idea to do mega launches and big things during this week because like you said this is this is vmware show and it's the greatest show on earth right yeah okay so we'll stay tuned for that will be watching hi Chad thanks very much for coming on the cubase oh it's my pleasure guys thank you so much I keep right there buddy we're right back after this quick word