 Live from Vancouver, Canada, it's theCUBE at OpenStack Summit Vancouver 2015. Brought to you by headline sponsors EMC and Joypling by Red Hat and Cisco with additional sponsorship by Brocade and HP. And now your hosts, John Furrier and Stu Miniman. Hello everybody, welcome to theCUBE. We are live in Vancouver. We're at Columbia, this is theCUBE, our flagship program. We go out to the events and extract the signals from noise. We are at the OpenStack Summit in Vancouver for three days of wall-to-wall coverage here at theCUBE, SiliconANGLE Media's production. I'm John Furrier, I'll be hosting this week with my partner in crime, Stu Miniman, who is the OpenStack analyst at Wikibon.com and we've been covering OpenStack, I've got it for a long time, Stu. And this is our, I think our fourth year doing OpenStack, third full CUBE. We first drove up to Portland a couple of years ago. It's been a whirlwind, again, documenting, again, the continuation of the cloud coverage we have, and obviously enterprise coverage on SiliconANGLE and Wikibon, Stu. You know, I think we have the most definitive CUBE cloud videos as this evolution of cloud continues. We have seen a transformation just within the OpenStack community and outside OpenStack with cloud, with Amazon, with VMware, Google, yet to hit the Azure show yet, but we've seen all the bodies being buried, new startups being created, the incumbent big whales pivoting around cloud, IBM, HP, Red Hat, Cisco, among others, and there's been a lot of changes. We've seen the emergence of cloud foundry at the past layer, but a real focus on infrastructure as a service. A lot of stuff getting done. SAF is a big part of this announcement. We've got Kilo, Identity Federation, and companies have come and gone. We've seen the heads of a couple companies move, some companies sold, going out of business, consolidation, Maranta still doing well. Stu, what's the state of the OpenStack Foundation bottom line? What is the state of the union today? I mean, honestly, the big hope for the enterprise and cloud is OpenStack. Is it happening? What's going on? Is it dominated by the big players? What's the action? Yeah, so John, five years now we've been watching OpenStack. I remember when it came out, I think Dave Vellante said, it was the Hail Mary of the traditional infrastructure vendors to stay relevant in a world where Amazon and Google were taking over. Third year we're doing the big show. You and I were down in Atlanta last year. And OpenStack's made a lot of progress. We're Kilo's now out, there's stability in a bunch of the programs, starting to see some big name companies talking about what they're doing. In the keynote this morning, you had Walmart on stage, talking about, you know, it's not surprising that Walmart, a global retail giant, doesn't turn to Amazon for their infrastructure. So they're throwing a ton of people and resources to leverage OpenStack and talk about how great it is. TD Bank was up on stage talking about how a financial company, good enterprise type of use case can be out there. But John, in many ways, I have some of the same questions I had a couple of years ago, which is when we surveyed at Wikibon, our user community, looking at the cloud marketplace in general, about 15% of them said, I'm ready to either test or put OpenStack in production. And over half of the people said, I'm waiting for it to become more mature. So when will OpenStack be ready for more mainstream adoption and kind of cross that chasm? And, you know, we want to see what we get out of this week's. Kilo's now announced, Liberty's the next step. You know, we have 11 releases now on this six month cycle of releases. So OpenStack is making progress. Last year, my word of the week was really momentum. You had some of the big companies coming in. And here, I mean, John, almost between six and 7,000 people, the keynote just got let out, seeing the stream of people behind us here. A lot of change, a lot of excitement, but still a lot of open questions on OpenStack. Well, folks that are watching there, you can see that we are in the middle of the sunlight here, this opening segment, the sun is right in front of us. We are in a beautiful place at the convention center in Vancouver. We're looking out on the cruise ships here, great downtown, but the sun will be with us for the next hour. Apologize for that. But we were at a great location. We were on the floor, right in front of all the main action. You can see behind us so you can see through the shadows, all the stuff's happening. So the sunlight will be with us for a little bit. So apologize for that. Not much we can do about the sun. I got to wear shades, the future's so bright. Shades required here at OpenStack. So Stu, yeah, here's my take on OpenStack. OpenStack's got always, as I said, OpenStack SV, the Marantos event in the last year at Atlanta has to move faster. You have to see more action on speed of deployments, speed of feature releases. They got to harden the IIS, infrastructure as a service features. You've seen that with Kila, you've seen that with Seth, you're seeing Cisco come in. But the story to me is the big players. You're seeing a dominance of the big players coming in. And if you look at the overall contributions, HP alone is contributing more code than ever before. So I'm watching HP. They have hundreds of employees here in the cloud group dedicated to OpenStack. Red Hat, you now see Cisco. You are starting to see the big vendors, not just throwing lip service at OpenStack, but delivering. And I think that's the key story. And the question is what distributions will be relevant if they are relevant at all? And Marantos obviously has a business model based on that. And that's going to be the question we're going to ask folks. Yeah, so John, actually I don't think the distribution is where there's the big battle. I like Marantos has been making a pivot. They're partnering with a bunch of companies. They're doing more with Cloud Foundry, moving up the stack. The big, big question that I have for OpenStack is today, if you want to do it, you need to turn some partners that can help you with services, help give you that nice bear hug of a good big company to put it together. And actually not just a big company, but some of the smaller companies, companies like Blue Box, like Marantos that we said, Pistons still here and kicking. Even after Nebula went under and we had a ton of acquisitions over the last year. What we've been talking at Wikibon though is that if you're growing the business through a lot of professional services and a lot of non-standard engagements, you were in trouble because while in the 90s, the marginal economics of software was Microsoft every time they print a new CD, it didn't cost them anything. Today, Amazon has turned what it was traditionally outsourcing your services into the marginal economics of software. So every time Amazon spins up a new service, every time Amazon puts a thousand new customers on, it really doesn't cost them that much. Today, OpenStack is not at that marginal economics. So they need to really bake that software and get that put into solutions that customers can consume and easily use on their private cloud environment, on-premises, as well as the public cloud offerings, which are still a little uneven. We've got Rackspace out there, you've got Healy on that you mentioned, Cisco's going to be here with the InterCloud. So the distributions, yeah, they're important because people want to take this technology and put it in their data centers. I think last year the numbers I saw was 75% of these deployments were really done in private cloud environments, but it's really going to be that mix of what's going on, so. So we've got the live shades here from Ubuntu. We're rocking and rolling. It's so bright, we've got the shades here and we've got the freebies coming in. I'll stick with my Ray-Bans. Stu, I want to just get a shout out to the community at OpenStack. I want to say that theCUBE is proud to be here. I want to thank the foundation, all of our sponsors that support theCUBE. We love talking to all the top people in the industry. We love documenting and getting the data and sharing that with you, whether it's on Twitter, on Facebook, on CrowdChat, on wikibon.com, wikibon.org, and SiliconANGLE, and again our goal is to get that signal extracted and share that as fast as possible and get some great data out in the network. So Stu, let's talk about the sponsors that have got us here. Let's give a shout out to the sponsors. Sure, John, so right, one of the things we say is there's more money coming to OpenStack now, some of the big players, some of the smaller players, so really thank you to our sponsors here. Brocade was one of our sponsors. Last year is back here. Also, Cisco with a joint sponsorship with Red Hat. I expect to hear from Brocade and Cisco. How are we doing with Neutron? Because last year, we knew the compute and the storage projects were in good shape, but networking needed a lot of work. We've got EMC, who of course we were just at with EMC World as our other headline sponsor here. So EMC, you know, broad position. Randy Bice is going to be one of our first guests. Dave and I did a great interview with Randy recently. That was one of the acquisitions in the last year. In this space, the cloud scaling kind of moved inside. How does open source really impact what's happening at EMC? And of course, HP Healian is also a sponsor here. So good roundup of some of the big contributors and big players, and we're going to dig in deep with them and a ton of editorial guests. Everything from the Cloud Foundry Summit, containers continues to be a hot topic with Magnum and everything going on here. So I'm excited for three days, John. Yes, and support the sponsors, because they're the ones who allow us to bring our crew and expand our team every year, include the social, include more footage, and without the sponsors, we would not be able to be here and do some awesome coverage, again, covering the editorial angle as well. And again, it's a good collaborative, shared social media experience. We're excited to sit down on all the top execs. And of course, if you want to sponsor theCUBE, we can come to your place. We do events again, but it's all about getting that data out, Stu. So we're looking forward to a great week, wall-to-wall coverage. I know there's going to be a lot of action in the hallways, a lot of parties. And what I love about these events with theCUBE, not only get to sit down with the execs and the entrepreneurs, Stu, is that we get to go out after hours and get the metadata, because it's all about the metadata, right? We want to understand what's happening in report to you, what we believe are the big movements in the cloud business. And again, it's really fast right now, being efficient, large scale, and very easy to use and stand up cloud. And the big players are Microsoft, VMware, you're seeing EMC, you got all the top guys, pushing hard on these enterprise-grade solutions, Stu, the challenge for OpenStack is can they do that? That's the question we're going to ask. Where are we? Where's the meat on the bone? Where's the rubber meat in the road? And ultimately, is the code hardened? Is it viable? Will this dog hunt? That is what we will be searching for. Yeah, and John, when you talk to me about putting together this show, we want the builders and we want to talk to some of the moneymen. So we're going to have some of the VCs on. We've got some of the project technical leads on for some of the pieces. And Dave Meyer, who's going to come on from Brocade said, code is the key of the land. So, talking to some of these people that are contributing, because so many of the people here at the show are helping to build that OpenStack, so it's that wave of open source. And how do people monetize that and how do people consume it? Because OpenStack is huge. And which business models do? Which business models we're going to understand? Where's the money being made? But more importantly, again, the builders. And the real deal here is the big companies, from the rack spaces to the HPs, you name it, they are actually really contributing some solid code. This isn't like a press release, kind of hyped up marketing program. Really some real work getting done. We want to digest that and separate the winners from the losers and help you get the data. Again, this is the queue. We are live for three days of wall-to-wall coverage here in Vancouver, British Columbia. Stu, great town. You're out and about with your wife. Tell us what's the scene here like in Vancouver. Oh my God. John, I mean, first of all, we're right down here at the harbor. Canada Place is right out here. A giant cruise ship right off the bow here. I had sushi last night, which was some of the best sushi I've ever had. I think I'm ruined to be able to go back to kind of the East Coast here. I mean, there's sea planes flying. There's lots of outdoor activities. It's a very bicycle-friendly city, which was really surprised me, as I would expect it being a little bit cold. Gorgeous John, after being trapped in Vegas for kind of three weeks, it is so awesome to come out here. Smell the ocean, love Boston Lake, right? Oh, I mean, I love the ocean smell. And I got to see some of the sites. And as you said, there's some great parties at some of the locations here. Really kind of modestly priced for food and drinking everything here, even though I hear real estate's ridiculous around here. But it's gorgeous. I was excited to make this. A lot of hockey on TV. Love that as well. I mean, being from the East Coast. Again, Mr. Cube, we'll be back with more coverage here live in Vancouver at OpenStack Summit. Mr. Cube, I'm John Furrier with Stu Miniman. We'll be back after this short break.