 San Francisco, it's theCUBE covering Red Hat Summit 2018. Brought to you by Red Hat. Hey, welcome back everyone. This is theCUBE live in San Francisco for Red Hat Summit 2018. I'm John Furrier, the co-host of theCUBE and this week for three days of wall-to-wall coverage, my co-host analyst is John Troyer, the co-founder of Tech Reckoning and Advisory and Community Development Services firm, industry legend, formerly VMware. He was at theCUBE in 2010. Our first ever theCUBE nine years ago, John, day one wrap up. Let's analyze what we heard and dissect and put Red Hat into day one in the books. But clearly it's a red letter day for Red Hat, so to speak, your thoughts? Big day for OpenShift, I think, and Hybrid Cloud, right? We just saw a lot of signs here that we'll talk about that it's real. There's real enterprises here, real deployments in the cloud, multi-cloud, on-site, Hybrid Cloud and I think there's really no doubt about that. They really brought the team out. And Red Hat's become a bellwether relative to the tech industry because if you look at what they do, they have so many irons on the fires, but the most important is that they have huge customer base in the enterprise, which they've earned over decades of work. Being the open source renegade to the open source darling and tier one citizen, they got a huge install base and they got to manage it so they can't just throw spaghetti at the wall. They got to have big solutions. They're very technical company, very humble, but they do make some good tech bets. Absolutely, we'll be talking with the folks from CoreOS tomorrow. They have a couple of other things we'll be talking about. A lot of interesting partnerships. The most, you know, the thing here, Linux is real and it's the 20 year growth and it's real in the enterprise and I mean the top line thing, the top line slogan, John, is Kubernetes the new Linux for the cloud. I got to say there's some reality there. Yeah, there's no doubt about it. I mean, I just have my notes here. Just my summary for the day is on that point, the new wave is here, okay? The glue layer that Kubernetes and containers provide on top of say Linux, in this case OpenShift, a alternative past layer just a few years ago becomes the centerpiece of Red Hat's architecture, really providing some amazing benefits. So I think what's clear is that this new shift, this new wave is massive and we've heard on theCUBE multiple references to TCP, IP, HTTP, these are seminal moments where there's a massive inflection point where the game just radically changes for the better. Wealth creation happens, startups boom, new brands emerge that we've never heard of that just come out of the woodwork. Entrepreneurial activity hits an all time high, M&A, all these things are coming, right? So John, I was really impressed. We talked to a number of folks who are involved with technologies that some people might call legacy, right? The Java programmers, the IBM web sphere folks, you look at these technologies, solid, proven, tested, but yet still are here and adapted for today, right? And they talked about how they're fitting into OpenShift, how they're fitting into modern application development and you're not leaving those people behind. They're really here. And the old joke going back to say Microsoft when Steve Ballman was the CEO, hell will freeze over when Linux is in Microsoft's ecosystem. Look today, no further than what's going on in their developer conference called Microsoft Build where Linux is the centerpiece of their open source strategy and Microsoft has transformed themselves into a total open source world. So, you know, now you got Oracle giving up Java E calling in Jakarta, essentially bringing Java into the Eclipse community. Huge moves, kind of a nuanced point, but that's another signal of the shifts going on out in the open where communities aren't just yesterday's open source model, a new generation of open source actors are coming in, a new model. I think the CNCF is showing at the Linux Foundation proves that you can have commercialization downstream with open source projects as that catalyst point as a big deal. And I think that is happening at a new level and it's super exciting to see. Yeah, I mean, open source is the new normal. Sure, that works. It's in the enterprise. But that doesn't mean that open source disappears. It actually means that open source and communities and companies coming together to drive innovation actually gets more and more important. I kind of thought, well, you know, it's open source. Well, everybody does open source, but actually the dynamics we're seeing of these both large companies partnering with small companies, foundations like you talk about the Linux, various parts of the Linux Foundation, Cloud Foundry Foundation, et cetera, right? Are really making a big impact. Well, we had earlier on assistant general counsel David Levine and bringing about open source. I think one key thing that's notable as this next generation of open source wave comes is the business model of open source and operationalizing it in not just software development lifecycle, but in the business operations. So for example, spending resources on managing proprietary products with the have open source components separate from the community is a resource that you don't have to spend anymore. If you just contribute everything to open source, that energy can go away. So I think open source projects and the product monetization component, not new concepts is now highlighted as a bona fide competitive advantage across the company, not just proven, but like operationally sound, legally verified, certified. And I think also you have to look at the distribution of open source versus the operation and management of open source. We see a lot of managed Kubernetes coming out. And in fact, what we didn't talk about today, Microsoft big announcement here at the show, Microsoft is on Azure is running a managed open shift. Not Kubernetes, they already have Kubernetes. They're running a managed open shift. Another way of adding value to an open source platforms directly to the IT operator. Honestly, do you think these kind of deals would happen if you go back four years and three years ago? Oh, no way. Azure running an open shift. Absolutely. I mean, were you crazy? The, you know, the kingdom has turned upside down. Absolutely. So this is a notable point. I want to get your reaction is because I see this absolutely as validation to the new wave being here with Kubernetes containers as a de facto rallying point and inflection point. Big deals are happening. IBM and Red Hat, big deal. We just talked about them with the players here. Two bellwethers saying, we're getting behind containers and Kubernetes in a big way. From that relationship, essentially, it changes the game literally overnight for IBM. Changes the game for Red Hat. I think a little bit more for IBM than Red Hat, although Red Hat gets a ton of benefit, but IBM instantly gets a cloud strategy that has a real scalable product market to it. Arvin, the head of research laid that out. IBM now can go and compete with major players on deals with the private cloud. More deals are coming. Absolutely. This is the beginning. Now that everyone's snapped into the place and saying, okay, Kubernetes and containers, we now understand this, the rallying cry, a de facto standard, I think a formation is going to happen in the next six to 12 months of major, major players. Now, I mean, we aren't a not, one size does not fit all world, John. So I mean, we will continue to see healthy ecosystems. I mean, Mesosphere and DCOS is still out there. Docker is still out there, right? You will see very functional communities and functioning application platforms and cloud platforms, but you got to say the momentum is here. No, I mean, look at Docker, Mesosphere. Look at when things like this happen, this is my opinion, so I'm just going to say it out there. When you have de facto standards that happen like this, it's an opportunity to differentiate. So I think what's going to happen is Docker, Mesosphere and others, including the legacy guys like IBM and others, they have to differentiate their products. They have to be software companies. So I think Docker, I think it's come to, and we'll find out at DockerCon, but my opinion looking at from the outside is, I think Docker's realized, look, we can't make money from containers. Kubernetes is happening. We're a great standard in that, let's be a software company. Let's differentiate around Kubernetes. So this is just more pressure or more call to action to deliver good software. Hey, it's never been, somebody said, it's never been a better time to be in IT and IT infrastructure, right? This is the tools we have available to us. Super powerful. Another key point I want to get your reaction on with Kubernetes and containers, this kind of de facto standardization is breathing new life into good initiatives and legacy projects. So you think about OpenStack, okay? OpenStack gets a nice segmented approach. It's now clear where the swim lanes are. You're an app developer, you go over here, and if you're a network and infrastructure guy, you're going here, but middleware apps. We talked to the Red Hat guys here, we talked to IBM. Those legacy and apps can put a container around it and don't have to be thrown away and take their natural course. I think it's going to be a through line through this whole week. A second life is for legacy and stuff. And then, too, cloud is in its second inning because now you have the enablement for cloud, your reaction. The enablement of cloud. Yeah, I mean, look at IBM. IBM has cloud and the market share is dependent on who you believe. They're not in the top three, but they're not double digits according to synergy research. They might have to be a little bit higher, but still, if you compare public cloud, they're small. But if you look at IBM's entire and small base and saying if they have a specialty cloud that can be assembled quickly and scaled, they're going to be instantly successfully overnight. Yeah, I think a few years ago, there was always a few years back, it always looks confusing, right? A few years back, we were still arguing public cloud. Private cloud is private cloud dead. What is a true private cloud? Is that even valuable? I still see people on Twitter making fun of anybody who's not 100% into the full public cloud, which means they must not have talked to a lot of IT folks who have to business to run today. So I think you're seeing it's a multi-valent world, multi-cloud, there's going to be differentiated clouds, there's going to be operational clouds, there's going to be financial clouds. It seems clear that from the perspective of right now, here in San Francisco in 2018, that the purpose of public private hybrid seems pretty clear. Just like the purpose of, like I say, we're going to, in two weeks we'll be in open stack summit, the purpose of that seems pretty clear. It's funny, it's like I had this argument in Andy Jassy, he thinks everything should go to the public cloud because he has one of the public clouds, but he's kind of right, and we talk about it this way with him, I said, if everything is running cloud operation, we're talking about cloud ops, we're talking about how it's managed, how it's deployed, code bases across the board. If everything is cloudified from an operation standpoint, the difference between on-prem and cloud and IoT Edge is there's no difference, stuff's moving around, so you can almost treat the data center as an Edge network. So, it's essentially all cloud in my mind. And also you do have to keep in mind time horizons, right? Anybody who has to do work today, this quarter, right, has to keep in mind what portfolio of business needs and tools do I have right now versus what it's going to look like in a few years. All right, so I want to get your thoughts on your walk away from today. I'll start, my walk away from day one was talking to some of the practitioners, Macquarie Bank and Amadeus. To me, they're a tell sign, the Canadian, the coal mine, what's happening. Horizontally scalable, synchronous infrastructure, the new model is here, now we're seeing them saying things like, it's a streaming world, not just Kafka for streaming data, streaming services, levels of granularity that are orchestrated with containers and Kubernetes up and down the stack. To me, architects who think that way will have a preferred advantage over everybody else. So that to me was like, okay, we're seeing it play out. I guess I'd totally agree, right? The future isn't evenly distributed. My takeaway though is there's certainly a future here and the people we talk to today are doing real world, enterprise scale, multi-cloud, microservices and modern architectures, incorporating their legacy applications and components and they're just doing it and they're not even breaking a sweat. So I think IT has really changed. Okay, day one coverage continues, day two. Tomorrow we have three days of wall to wall coverage, day two and then finally, day three Thursday here in San Francisco, this is theCUBE's live coverage. Go to thecube.net to check out all the videos that are going to be going up as soon as they're done live here and check out all theCUBE alumni and check out silkenangle.com for all news coverage. And of course, check out Tech Reckoning, John's company's the co-founder of for John Furrier and John Troyer. That's day one in the books. Thanks for watching. See you tomorrow.