>> [Announcer] 18, brought to you by Red Hat >> Well, welcome back everyone. This is theCUBE's exclusive coverage here in San Francisco, California, for Red Hat Summit 2018. I am John Furrier, co-host of theCUBE with my analyst co-host this week, John Troyer, co-founder of the TechReckoning advisory services. And our next guest is Arvind Krishna, who is the Senior Vice President of Hybrid Cloud at IBM and Director of IBM Research. Welcome back to theCUBE, good to see you. >> Thanks John and John great to meet you guys here. >> You can't get confused here you've got two John's here. Great to have you on because, you guys have been doing some deals with Red Hat, obviously the leader at open storage. You guys are one of them as well contributing to Linuxes well documented in the IBM history books on your role and relationship to Linux so check, check. But you guys are doing a lot of work with cloud, in a way that, frankly, is very specific to IBM but also has a large industry impact, not like the classic cloud. So I want to tie the knot here and put that together. So first I got to ask you, take a minute to talk about why you're here with Red Hat, what's the update with IBM with Red Hat? >> Great John, thanks for giving me the time. I'm going to talk about it in two steps: One, I'm going to talk about a few common tenets between IBM and Red Hat. Then I'll go from there to the specific news. So for the context, we both believe in Linux, I think that easy to state. We both believe in containers, I think that is the next thing to state. We'll come back talk about containers because this is a world, containers are linked to Linux containers are linked to these technologies called Kubernetes. Containers are linked to how you make workloads portable across many different environments, both private and public. Then I go on from there to say, that we both believe in hybrid. Hybrid meaning that people want the ability to run their workload, where ever they want. Be it on a private cloud, be it on a public cloud. And do it without having to rewrite everything as you go across. Okay, so let's establish, those are the market needs. So then you come back and say. And IBM has a great portfolio of Middleware, names like WebSphere and DB2 and I can go on and on. And Red Hat has a great footprint of Linux, in the Enterprise. So now you say, we've got the market need of hybrid. We've got these two thing, which between them are tens of millions, maybe hundreds of millions of end points. How do you make that need get fulfilled by this? And that's what we just announced here. So we announced that IBM Middleware will run containerized on Red Hat containers, on Red Hat Enterprise Linux. In addition, we said IBM Cloud Private, which is the ability to bring all of the IBM Middleware in a sort of a cloud-friendly form. Right you click and you install it, it keep it self up, it doesn't go down, it's elastic in a set of technologies we call IBM Cloud Private, running in turn on Red Hat OpenShift Container service on Red Hat Linux. So now for the first time, if you say I want private, I want public, I want to go here, I want to go there. You have a complete certified stack, that is complete. I think I can say, we're a unique in the industry, in giving you this. >> And this is where, kind of where, the fruit comes off the tree, for you guys. Because, we've been following you guys for years, and everyone's: Where's the cloud strategy? And first of all, it's not, you don't have a cloud strategy you have cloud products. Right, so you have delivered the goods. You got the, so just to replay. The market need we all know is the hybrid cloud, multi-cloud, choice et cetera, et cetera. >> You take Red Hat's footprint, your capabilities, your combined install base, is foundational. >> [Arvind] Right >> So, nothing needs to change. There's no lift and shift, there's no rip and replace, >> you can, it's out there it's foundational. Now on top of it, is where the action is. That where you're kind of getting at, right? >> That's correct, so we can go into somebody running, let's say, a massive online banking application or they're running a reservation system. It's using technologies from us, it's using Linux underneath and today it's all a bunch of piece pods, you have a huge complex stuff it's all hard-wired and rigidly nailed down to the floor in a few places and now you can say: Hey, I'll take the application. I don't have to rewrite the application. I can containerize it, I can put it here. And that same app now begins to work but in a way that's a lot more fluid and elastic. Or my other way: I want to do a bit more work. I want to expose a bit of it up as microservices. I want to insert some IA. You can go do that. You want to fully make it microservices enabled to be able to make it into little components >> and ultimately you can do that. >> So you can take it in sort of bite size chunks and go from one to other, at the pace that you want. >> [John F.] Now that's game changing. >> Yeah, that's what I really like about this announcement. It really brings best of breed together. You know, there is a lot of talk about containers. Legacy and we've been talking about what goes where? And do you have to break everything up? Like you were just saying. But the announcement today, WebSphere, the battle tested huge enterprise scale component, DB2, those things containerized and also in a frame work like with IBM, either with IBM microservices and application development things or others right, that's a huge endorsement for OpenShift as a platform. >> Absolutely, it is and look, we would be remiss if we didn't talk a little bit. I mean we use the word containers and containerized a lot. Yes, you're right. Containers are a really, really important technology but what containers enable is much more than prior attempts such as VM's and all have done. Containers really allow you to say: Hey, I solved the security problem, I solved the patching problem, the restart problem, all those problems that lie around the operations of a typical enterprise, can get solved with containers. VM's solved a lot about isolating the infrastructure but it didn't solve, as John was saying, the top half of the stack. And that's I think the huge power here. >> Yeah, I want to just double click on that because I think the containers thing is instrumental. Because it, first of all, being in the media and loving what we do. We're kind of a new kind of media company but traditional media is been throwing IBM under the bus since saying: Wow old guard and all these things. Here's the thing, you don't have to change anything. You got containers you can essentially wrap it up and then bring a microservice architecture into it. So you can actually leverage at cloud scale. So what interests me is that you can move instantly, >> value proposition wise, pre-existing market, cloudify it, if you will, with operational capabilities. >> Right. >> This is where I like the Cloud Private. So I want to kind of go there for a second. If I have a need to take what I have at IBM, whether it is WebSphere. Now I got developers, I got installed base. I don't have to put a migration plan away. I containerize it. Thank you very much. I do some cloud native stuff but I want to make it private. My use case is very specific, maybe it's confidential, maybe it's like a government region, Whatever. I can create a cloud operations, is that right? I can cloudify it, and run it? >> Absolutely correct, so when you look at Cloud Private, to go down that path, we said Cloud Private allows you to run on your private infrastructure but I want all these abilities you just described John. I want to be able to do microservices. I want to be able to scale up and down. I want to be able to say operations happen automatically. But it gives you all that but in the private without it having to go all the way to the public. If you cared a lot about, your in a regulated industry, you went down government or confidential data. Or you say this data is so sensitive, I don't really, I am not going to take the risk of it being anywhere else. It absolutely gives you that ability to go do that and that is what brought Cloud Private to the market for and then you combine that with OpenShift and now you get the powers of both together. >> See you guys essentially have brought to the table the years of effort with Bluemix, all that good stuff going on, you can bring it in and actually run this in any industry vertical. Pretty much, right? >> Absolutely, so if you look at part what the past has been for the entire industry. It has been a lot about constructing a public cloud. Not just us, but us and our competition. And a public cloud has certain capabilities and it has certain elasticity, it has a global footprint. But it doesn't have a footprint that is in every zip code or in every town or in every city. That's not what happens to a public cloud. So we say. It's a hybrid world meaning that you're going to run some workloads on a public cloud, I'd like to run some workloads on a private and I'd like to have the ability that I don't have to pre decide which is where. And that is what the containers and microservices, the OpenShift that combination all give you to say you don't need to pre decide. You rewrite the workload onto this and then you can decide where it runs. >> Well I was having this conversation with some folks at a recent Amazon Web services conference. Well, if you go to cloud operations, then the on premise is essentially the edge. It's not necessarily. Then the definition of on premise, really doesn't even exist. >> So if you have cloud operations, in a way, what is the data center then? It's just a connected issue. >> That's right, it's the infrastructure which is set up and then, at that point, the Software Manger, at the data center, as opposed to anything else. And that's kind of been the goal that we're all been wanting. >> Sounds like this is visibly at IBM's essentially execution plan from day one. We've been seeing it and connecting the dots. Having the ability to take either pre-existing resources, foundational things like Red Hat or what not in the enterprise. Not throwing it away. Building on top of it and having a new operating model, with software, with elastic scale, horizontally scalable, Synchronous, all these good things. Enabling microservices, with Kubernetes and containers. Now for the first time, >> I can roll out new software development life cycles in a cloud native environment without forgoing legacy infrastructure and investment. >> Absolutely, and one more element. And if you want to insert some cloud service into the environment, be it in private or in public, you can go do that. For example, you want to insert a couple of AI services >> into the middle of your application you could go do that. So the environment allows you to, do what you described and these additionals. >> I want to talk about people for a second. The titles that we haven't mentioned CIO, Business Leader, Business Unit Leaders, how are they looking at >> digital transformation and business transformation in your client bases you go out and talk to them. >> Let's take a hypothetical bank. And every bank today is looking about simple questions. How do I improve my customer experience? And everybody want, when they say customer experience, really do mean digital customer experience to make it very tangible. And what they mean by that is how do I get my end customer engaged with me through an app. The app is probably in a device like this. Some smart phone, we won't say what it is, and so how do you do that? And so they say: Well, all obviously to check your balance. You obviously want to check your credit card. You want to do all those things. The same things we do today. So that application exists, there is not much point in rewriting it. You might do the UI up but it's an app that exists. Then you say but I also want to give you information that's useful to you in the context to what you're doing. I want say, you can get a 10 second loan, not a 30 day loan, but a 10 second loan. I want to make a offer to you in the middle of you browsing credit card. All those are new customergistics, where do you construct those apps? How do you mix and match it? How do you use all the capabilities along with the data you've got to go do that? And what we're trying to now say, here is a platform that you can go, do all that on. Right, that complete lifecycle you mentioned, the development lifecycle but I got to add to it >> the data lifecycle, as well as, here is the versioning, here are my AI models, all those things, built in, into one platform. >> And scales are huge, the new competitive advantage. You guys are enabling that. So I got to ask you a question on multi cloud. Obviously, as people start building out the cloud on PRIM and with Public Cloud and the things you're laying out. I can see that going on for a while, a lot of work being done there. We're seeing that Wikibon had a true Private Cloud report what I thought was truly telling. A lot of growth there, still not going away. Public Cloud's certainly grown in numbers are clear. However, the word multicloud's being kicked around I think it's more of a future stay obviously but people have multiple clouds Will have relationships with multiple clouds. No one's going to have one cloud. It's not a winner take all game. Winner take most but you know you're have multiple clouds. What does multi cloud mean to you guys in your architecture? Is that moving workloads in real time based upon spot pricing indexes or is that just co-locating on clouds and saying I got this app on this cloud, that app on that cloud, control plane it. These are architectural questions. What the hell is multicloud? >> So there's a today, then there is a tomorrow, then there is a long future state, right? So let's take today, let's take IBM. We're on Salesforce, we're on ServiceNow, we're on Workday, we're on SuccessFactors, well all of there are different clouds. We run our own public cloud, we run our own private cloud and we have Judicial Data Center. And we might have some of the other clouds also through apps that we barter we don't even know. Okay, so that's just us. I think everyone of our clients are like this. The multicloud is here today. I begin with that first, simple statement. And I need to connect the data and can connect when thing go where. The next step, I think people, nobody's going to have even one public cloud. Even amongst the big public clouds, most people are going to have two if not more That's today and tomorrow. >> Your channel partners have clouds, by the way, your Global SI's all have clouds, theCUBE is a cloud for crying out load. >> Right, so then you go into the aspirational state and that may be the one you said, where people just spot pricing. But even if I stay back from spot pricing and completely (mumbles) I make. And I'm worrying about network and I'm worrying about radio reach. If I just backup around to but I may decide I have this app, I run it on private, well, but I don't have all the infrastructures I want to burst it today and I, where do I burst it? I got to decide which public and how do I go there? >> And that's a problem of today and we're doing that and that is why I think multicloud is here now. >> Not some point in the future. >> The prime statement there is latency, managing, service level agreements between clouds and so on and so forth. >> Access control on governance, Where does my data go? Because there may be regulatory reasons to decide where the data can flow and all those things. >> Great point about the cloud. I never thought about it that way. It is a good illustration. I would also say that, I see the same arguments in the data base world. Not everyone has DB2, not everyone has Oracle, not everyone has, databases are everywhere, you have databases part of IoT devices now. So like no one makes a decision on the database. Similar with clouds, you see a similar dynamic. It's the glue layer that, interest me. As you, how do you bring them together? So holistically looking at the 20 miles stare in the future, what is the integration strategy long-term? If you look at distributed system or an operating system there has to be an architectural guiding principle for integration, your thoughts. >> This has been a world 30 years in the making. We can say networking, everyone had their own networking standard and the, let's say the '80s probably goes back to the '70s right? You had SNA, you had TCP/IP, you had NetBIO's-- >> DECnet. DECnet. You can on and on and in the end it's TCP/IP that won out as the glue. Others by the way, survived but in packets and then TCP/IP was the glue. Then you can fast forward 15 years beyond that and HTTP became the glue, we call that the internet. Then you can fast forward and you can say, now how do I make applications portable? And I will turn round and tell you that containers on Linux with Kubernetes as orchestration is that glue layer. Now in order to make it so, just like TCP/IP, it wasn't enough to say TCP/IP you needed routing tables, you needed DNS, you needed name repository, you needed all those things. Similarly, you need all those here are called the scatlog and automation, so that's the glue layer that makes all of this work >> This is important, I love this conversation because I have been ranting on theCUBE for years. You nailed it. A new stack is developing and DNS's are old and internet infrastructure, cloud infrastructure at the global scale is seeing things like network effect, okay we see blockchain in token economics, databases, multiple databases, on structure day >> a new plethora of new things are happening that are building on top of say HTTP >> [Arvind] Correct! >> And this is the new opportunity. >> This is the new platform which is emerging and it is going to enable business to operate, as you said, >> at scale, to be very digital, to be very nimble. Application life cycles aren't always going to be months, they're going to come down to days and this is what gets enabled >> So I what you to give your opinion, personal or IBM or whatever perspective because I think you nailed the glue layer on Kubernetes, Docker, this new glue layer that and you made references to, things like HTTP and TCP, which changed the industry landscape, wealth creation, new brands emerged, companies we never heard of emerged out of this and we're all using them today. We expect a new set of brands are going to emerge, new technologies are going to emerge. In your expert opinion, how gigantic is this swarm of new innovation going to be? Just, 'cause you've seen many ways before. In you view, your minds eye, what are you expecting? >> Share your insight into how big of a shift and wave is this going to be and add some color to that. >> I think that if I take a shorter and then a longer term view. in the short term, I think that we said, that this is in the order of $100 billion, that's not just our estimate, I think even Gartner has estimated about the same number. That will be the amount of opportunity for new technologies in what we've been describing. And that is I think short term. If I go longer term, I think as much as a half but at least a fourth of the complete IT market is going to shift round to these technologies. So then the winners of those that make the shift and then by conclusion, the losers are those who don't make the shift fast enough. If half the market moves, that's huge. >> It's interesting we used to look at certain segments going back years just company, oh this company's replatformizing, >> replatforming their op lift and shift and all this stuff. What you're talking about here is so game changing because the industry is replatforming >> That's correct. It's not a company. >>It's an industry! That's right. And I think the internet era of 1995, to put that point, is perhaps the easiest analogy to what is happening. >> Not the emergence of cloud, not the emergence of all that I think that was small steps. >> What we are talking about now is back to the 1995 statement >> [John] Every vertical is upgrading their stack across what from e-commerce to whatever. >> That's right. >> It's completely modernizing. >> Correct. Around cloud. >> What we call digital transformation in a sense, yes >> I'm not a big fan of the word but I understand what you mean. Great insight Arvind, thanks for coming on theCUBE and sharing. We didn't even get to some of the other good stuff. But IBM and Red Hat doing some great stuff obviously foundational, I mean, Red Hat, Tier one, first class citizen in every single enterprise and software environment you know, now OpenSource runs the world. You guys are no stranger to Linux being the first billion dollar investment going back >> so you guys have a heritage there so congratulations on the relationship. >> I mean 18 years ago, if I remember 1999. >> I love the strategy, hybrid cloud here at IBM and Red Hat. This is theCUBE, bringing all the action here in San Francisco. I am John Furrier, John Troyer. More live coverage. Stay with us, here in theCUBE. We'll be right back. (upbeat music)

brought to you by Red Hat well welcome back everyone this two cubes exclusive coverage here in San Francisco California for Red Hat summit 20:18 I'm John Ferreira co-host of the cube with my analyst co-host this week John Troy year co-founder of The Reckoning advisory services and our next guest is Arvind Krishna who's the senior vice president of hybrid cloud at IBM Reese and director of IBM Research welcome back to the cube good to see you hey John and John Wade you guys just kick it confuse get to John's here great to have you on because you guys are doing some deals with Red Hat obviously the leader at open source you guys are one of them as well contributing to Linux it's well documented the IBM has three books on your role relationship to Linux so yeah check check but you guys are doing a lot of work with cloud in a way that you know frankly is very specific to IBM but also has a large industry impact not like the classic cloud so I want to get who tie the knot here and put that together so first I got to ask you take a minute to talk about why you're here with red hat what's the update with IBM with Red Hat yeah great John thanks and thanks for giving me the time I'm going to talk about it in two steps one I'm going to talk about a few common Tenace between IBM and Red Hat and then I'll go from there to the specific news so for the context we both believe in Linux I think that's easy to state we both believe in containers I think that's the next thing to state and we'll come back and talk about containers because this is a world containers are linked to Linux containers are linked to these technologies called kubernetes containers are linked to how you make workloads portable across many different environments both private and public then I go on from there to say and we both believe in hybrid hybrid meaning that people want the ability to run their workload wherever they want beat on a private cloud beat on a public cloud and do it without having to rewrite everything as you go across okay so let's just average those are the market needs so then you come back and say an IBM as a great portfolio of middleware names like WebSphere and db2 and I can go on and on and rather has a great footprint of Linux in the enterprise so now you say we got the market need of hybrid we got these two things which between them of tens of millions maybe hundreds of millions of endpoints how do you make that need get fulfilled by this and that's what we just announced here so we announced that IBM middleware will run containerized on RedHat containers on Red Hat Enterprise Linux in addition we said IBM cloud private which is the ability to bring all of the IBM middleware in a sort of a cloud friendly form right you click and you install it keeps itself up it doesn't go down it's elastic in a set of technologies we call IBM cloud private running in turn on Red Hat open shift container service on Red Hat Linux so now for the first time if you say I want private I want public I want to go here I want to go there you have a complete certified stack that is complete I think I can say we are unique in the industry and giving you this this and this is where this is kind of where the fruit comes on the tree off the tree for you guys you know we've been good following you guys for years you know every where's the cloud strategy and first well it's not like you don't have a cloud strategy you have cloud products right so you have to deliver the goods you've got the system replays the market need we all knows the hybrid cloud multi-cloud choice cetera et cetera right you take Red Hat's footprint your capabilities your combined install base is foundational right so and nothing needs to change there's no lifting shift there's no rip and replace you can it's out there it's foundational now on top of it is where the action is that's what we're that's what were you kind of getting at right that's correct so so we can go into somebody there running let's say a massive online banking application or the running a reservation system is using technologies from Asus using Linux underneath and today it's all a bunch of piece parts you have a huge complex stuff it's all hard wired and rigidly nailed down to the floor in a few places and I can say hey I'll take the application I don't have to rewrite the application I can containerize it I can put it here and that same app now begins to work but in a way that's a lot more fluid in elastic well by the way I want to do a bit more work I want to expose a bit of it up as micro-services I want search Samia you can go do that you want to fully make it microservices enable to be able to make it as little components and digestible you can do that so you can take it in sort of bite-sized chunks and go from one to the other at the pace that you want and that's game-changing yeah that's what I really like about this announcement it really brings the best of breed together right you did you know there's a lot of talk about containers and legacy and we you know we've been talking about what goes where and do you have to break everything up like you were just saying but the the announcement today you know WebSphere the this the you know a battle-tested huge enterprise scale component db2 those things containerized and also in a framework like with IBM we either with IBM Microsoft things or others right that's um that's a huge endorsement for open shipped as a platform absolutely it is and look we would be remiss if we didn't talk a little bit I mean we use the word containers and containers a lot yes you're right containers is a really really important technology but what containers enable is much more than prior attempts such as vm's and all have done containers really allow you to say hey I saw the security problem I solved the patching problem the restart problem all those problems that lie around the operations of a typical enterprise can get solved with containers VM sold a lot about isolating the infrastructure but they didn't solve as John was saying the top half of the stack and that's I think the huge power here yeah I want to just double click on that because I think the containers thing is instrument because you know first of all being in the media and loving what we do we're kind of a new kind of media company but traditional media has been throwing IBM under the bus and saying oh you know old guard and all these things but here's the thing you don't have to change anything you could containers you can essentially wrap it up and then bring a micro-services architecture into it so you can actually leverage at cloud scale so what interests me is is that you can move instantly value proposition wise pre-existing market cloud if I if you will with operational capabilities and this is where I like the cloud private so I want to kind of go with the ever second if I have a need to take what I have an IBM when it's WebSphere now I got developers I got installed base I'd have to put a migration plan away I containerize it thank you very much I do some cloud native stuff but I want to make it private my use case is very specific maybe it's confidential maybe it's like a government region whatever I can create a cloud operations is that right I can cloud apply it and run it absolutely correct so when you look at about private to go down that path we said well private allows you to run on your private infrastructure but I want all these abilities you just described John I want to be able to do micro services I want to be able to scale up and down I want to be able to say operations happen automatically so it gives you all that but in the private without having to go all the way to the public so if you cared a lot about you're in a regulated industry because you went down government or confidential data or you say this data is so sensitive I don't really I'm not going to take the risk of it being anywhere else it absolutely gives you that ability to go do that and and that is what we brought to our private to the market for and then you combine it with open shift and now you get the powers of both together so you guys essentially have brought to the table the years of effort with bluemix all that good stuff going on you can bring any he'd actually run this in any industry vertical pretty much right absolutely so if you look at what what the past has been for the entire industry it has been a lot about constructing a public cloud not just to us but us and our competition and a public cloud has certain capabilities and it has certain elasticity it has a global footprint but it does not have a footprint that's in every zip code or in every town or in every city that song ought to happen to the public cloud so we say it's a hybrid world meaning that you're going to run some bulk loads on a public cloud and like to run some bulk loads on a private and I'd like to have the ability that I don't have to pre decide which is where and that is what the containers the micro services the open ship that combination all gives you to say you don't need to pre decide you fucker you rewrite the workload on to this and then you can decide where it runs well I was having this conversation with some folks at and recent Amazon Web Services conference to say well if you go to cloud operations then the on-prem is essentially the edge it's not necessary then the definition of on-premise really doesn't even exist so if you have cloud operations in a way what is the data center then it's just a connected tissue that's right it's the infrastructure which you set up and then at that point the software manages the data center as opposed to anything else and that's kind of being the goal that we are all being wanted it sounds like this is visibility into IBM's essentially execution plan from day one we've been seeing in connecting the dots having the ability to take either pre-existing resources foundational things like red hat or whatnot in the enterprise not throwing it away building on top of it and having a new operating model with software with elastic scale horizontally scalable synchronous all those good things enabling micro search with kubernetes and containers now for the first time I could roll out new software development life cycles in a cloud native environment without foregoing legacy infrastructure and investment absolutely and one more element and if you want to insert some public cloud services into the environment beat in private or in public you can go do that for example you want to insert a couple of AI services into your middle of your application you can go do that so the environment allows you to do what he described and these additions we're talking about people for a second though the the titles that we haven't mentioned CIO you know business leader business unit leaders how are they looking at the digital transformation and business transformation in your client base as you go out and talk to us so let's take a hypothetical back and every bank today is looking about at simple questions how do i improve my customer experience and everyone in this a customer experience really do mean digital customer experience to make it very tangible and what they mean by that is how I get my end customer engaged with me through an app the apps probably on a device like this some smartphone we won't say what it is and and so how do you do that and so they say well well you were to check your balance you obviously want to maybe look at your credit card you want to do all those things the same things we do today so that application exists there is not much point in rewriting it you might do the UI up but it's an app that exists then you say but I also want to give you information that's useful to you in the context of what you're doing I want to say you can get a 10 second not a not a 30-day load but a ten-second law I want to make it offer to you in the middle of you browsing credit cards all those are new customer this thinks are hot where do you construct those apps how do you mix and match it how do you use all the capabilities along with the data you got to go do that and what we are trying to now say here is a platform that you can go all that do all that on right to that complete lifecycle you mentioned the development lifecycle but I got to add to the the data lifecycle as well as here is the versioning here are my area models all those things built in into one platform and scales are huge the new competitive advantage you guys are enabling that so I got to ask you on the question on on multi cloud I'll see as people start building out the cloud on pram and with public cloud the things you're laying out I can see that going on for a while a lot of work being done there we seeing that wiki bond had a true private cloud before I thought was truly telling a lot of growth they're still not going away public cloud certainly has grown the numbers are clear however the word multi clouds being kicked around I think it's more of a future state obviously but people have multiple clouds will have relationships with multiple clouds no one's gonna have one Klaus not a winner-take-all game winner take most but you're gonna have multiple clouds what does multi-cloud mean to you guys in your architecture because is that moving workloads in real time based upon spot pricing indexes or is that just co-locating on clouds and saying I got this SAP on that cloud that app on that cloud control plane did these are architectural questions it's the thing hell is multi cloud so these are today and then there is a tomorrow and then there is a long future state right so let's take today let's check IBM we're on Salesforce we're on service now we're on workday we're on SuccessFactors well all these are different clouds we run our own public cloud we run our own private cloud and we have traditional data center and we might have some of the other clouds also through apps that we bought that we don't even know okay so let's just toss I think every one of our clients is like this so multi cloud is here today I begin with that first simple statement and I need to connect the data and it comes connect when things go away the next step I think people nobody's gonna have only one even public cloud I think the big public clouds most people are gonna have to if not more that's today and tomorrow your channel partners have clouds by the way your global s lies all have clouds there's a cloud for crying out loud right so then you go into the aspirational state and that may be the one he said where people do spot pricing but even if I stay back from spot pricing and completely dynamic and of worrying about network and I'm worrying about video reach I just back up on to but I may decide it I have this app I run it on private well but I don't have all the infrastructures I want to bust it today and I've very robust it to I got to decide which public and how do I go there and that's a problem of today and we're doing that and that is why I think multi-cloud is here now not some pointed problem the problem statement there is latency managing you know service level agreements between clouds and so on and so forth governance where does my data go because there may be regulate regulate through reasons to decide where the data can flow and all the great point about the cloud I never thought about that way it's a good good illustration I would also say that I see the same argument of database world not everyone has db2 that everyone has Oracle number one has databases are everywhere you have databases part of IOT devices now so like no one makes a decision on the database similar was proud you're seeing a similar dynamic it's the glue layer that to me interest me as you how do you bring them together so holistically looking at the 20 mile stare in the future what is the integration strategy long term if you look at a distributed system or an operating system there has to be an architectural guiding principle for absolute integration you know well that's 30 years now in the making so we can say networking everybody had their own networking standards and the let's say the 80s though it probably goes back to the 70s right yeah an SN a tcp/ip you had NetBIOS TechNet deck that go on and on and in the end is tcp/ip that one out as the glue others by the way survived but in pockets and then tcp/ip was the glue then you can fast forward 15 years beyond that an HTTP became the glue we call that the internet then you can fast forward you can say now how to make applications portable and I would turn around and tell you that containers on linux with kubernetes as orchestration is that glue layer now in order to make it so just like in tcp/ip it wasn't enough to say tcp/ip you needed routing tables you needed DNS you needed name repositories you needed all those things similarly you need all those here I've called those catalogs and automation so that's the glue layer that makes all of this work this is important I love this conversation because I've been ranting on this in the queue for years you're nailed it a new stack is development DNS this is olden Internet infrastructure cloud infrastructure at the global scale is seeing things like Network effect okay we see blockchain in token economics like databases multiple database on structured data a new plethora of new things are happening that are building on top of say HTTP correct and this is the new opportunity this is the new the new platform which is emerging and it's going to enable businesses to operate you said at scale to be very digital to be very nimble application life cycles are not always going to be months they're gonna come down to days and this is what gets enabled so I want you to give your opinion personal or IBM or whatever perspective because I think you nailed the glue layer on cue and a stalker and these this new glue layer that and you made reference system things like HTTP and TCP which changed the industry landscape wealth creation new up new new brands emerged companies we've never heard of emerged out of this and we're all using them today we expect a new set of brands are gonna emerge new technologies and emerge in your expert opinion how gigantic is this swarm of new innovation gonna be just because you've seen many ways before in your view your mind's eye what are you expecting wouldn't share your your insight into how big of a shift and wave is this is going to be and add some color to that I think that if I take a take a shorter and then a longer term view in the short term I think that we said that this is on the order of 100 billion dollars that's not just our estimate I think even Gartner estimated about the same number that'll be the amount of opportunity for new technologies in what we've been describing and that is I think short term if I go longer term I think as much as 1/2 but at least 1/4 of the complete ID market is going to shift onto these technologies so then the winners are those that make the shift and then bye-bye clusion the losers of those who don't make this shift faster Afghan and stop the market moves that's that's he was interesting we used to like look at certain segments going back years oh this companies reap platform Ising we platforming they're their operative lift and shift and all this stuff what you're talking about here is so game-changing because the industries Reap lat forming that's a company that's it's an industry that's right any and I think the the the Internet era of 1995 to put that point it's perhaps the easiest analogy to what is happening not the not the emergence of cloud not the emergence of all that I think that was small steps what we're talking about now is back to the 1995 statement every vertical is upgrading their stack across the board from e-commerce to whatever that's right it's completely modernizing correct around cloud what we call digital transformation in a sense yes what not a big fan of the word but I lied I understand what you mean great insight our thanks for coming on the Kuban Sharon because we even get to some of the other good stuff but IBM and Red Hat doing some great stuff obviously foundational I mean Red Hat Tier one first-class citizen in every single enterprise and software environment you know now saw open source runs the world you guys you guys are no stranger to Linux being the first billion dollar investment going back so you guys have a heritage there so congratulations on the relationships that go around about ninety nine nine yeah and and I love the strategy hybrid cloud here at IBM and right at this the cube bring you all the action here in San Francisco I'm John for John Troy you're more live covers stay with us here in the cube Willie right back