 All right, so we're here to talk about hybrid cloud and the incredible benefit of Linux machines. This is running Fedora, if you're interested in the community version that we're running today in Google Drive. Life is good and Macs are evil, and I will continue to say that. See, this is what happens. So you've heard a lot about hybrid cloud. It came up in the keynotes. There's a lot of sessions that are going on. So I thought we'd kind of set a baseline around hybrid. What got us to where we are today? It started with a lot of cloud washing, and those of you that have been in the industry for a while, remember when everything was called cloud, and this started in about 2006, I mean, in 2008, where it didn't matter what it was, VMware called everything they did cloud, and so there was a lot of confusion in the market of what was actually cloud and what wasn't cloud. And then we had a proliferation of asses, and this continues today. In fact, the session right before this, I saw a new one which was PC as, which is private cloud as a service, which yes, that's what it is. You're delivering private cloud as a hosted managed service, but we really love our asses, and it continues to just confuse the market of what is as a service versus what is cloud versus what is on premises, et cetera. So now we have hybrid washing, where we see a million different solutions in the market that are calling themselves hybrid, and usually that is combined with some element of open, and so you have open source or open standards, and hybrid, and multi-cloud, and all these wonderful terms, and all it has done is confuse the hell out of our customers who are trying to figure out just what kind of infrastructure is right for them as they try to improve operational efficiencies, cut costs, migrate their workloads or whatever it is that they're trying to do to help the business be successful. So what is hybrid cloud? I'll tell you what it's not, and this is what most people define it as. Usually we start talking about hybrid cloud just when we have two clouds. That is interesting, and I think a lot of people are starting to do a multi-cloud strategy where they're looking at multiple clouds within their infrastructure, but really to be hybrid is more than just slapping two clouds together or putting them. There is this concept of some kind of integration or working together harmoniously, and I look at it really from some key criteria or characteristics across the hybrid cloud environment, meaning that whether you have two public clouds or a private and public cloud or we'll talk in a minute about just an on-premise data center and a cloud, there are some things that need to happen across those environments to consider them truly hybrid. Common automation, obviously Ansible is coming out as kind of the standard when it comes to that across different cloud environments. Common orchestration, right? Kubernetes has become the layer that a lot of companies are using across a hybrid cloud environment. Monitoring, management. Policy and governance is really important when you look at hybrid cloud environments, right? Whether it's access control roles to that workload that you have in a hybrid cloud environment or the way that you're giving developers access to certain parts of the infrastructure, but the governance of those cloud environments needs to be consistent. The architecture, and I can tell you this particularly comes up if you've ever tried to do DR in a hybrid cloud environment, which I tried to do from a private cloud to a public cloud and we tried to have the architecture so it was literally a hot, hot situation and it was absolutely impossible at that time. AWS has gotten better, but if you can't do your load balancing the same way, it starts to wreak havoc on the way you're actually trying to do your DR. Security, APIs are critical, so a lot of things need to happen in concert and be consistently applied or governed across those areas to be considered hybrid. So regardless of how you define it, it's happening. So if you start to look what customers are trying to do, whether it be in government or enterprise or telco, they are looking at ways to deploy workloads in a hybrid cloud environment. This particular study was done by IDC and they were asking about what aspects of hybrid cloud have you adopted? And you can see a mix of public and private, multiple external clouds, supporting public workloads with automatic bursting, so lots of different ways that people are making hybrid cloud a reality within their environment. This is some research that we did back in September. It was actually a global research project around virtualization trends, but a lot of cloud trends came out of that too as people are trying to figure out how to align what they're doing today in the data center and move it to the cloud. And you can see in the next couple of years, they're looking a lot of on-premise private, managed private, which seems to be the theme of OpenStack this year is managed and hosted private cloud, public cloud, and platform as a service, which a lot of enterprises start to look just all in the same category. And they're moving very quickly. These were technologies instead of virtualization. So private cloud is probably a little bit higher than you would see in the general universe because these are going into guys that are dealing with the data center today. So I think private cloud becomes kind of a favorite for them. But you can see here instead of virtualization, they're looking at private cloud, they look at containers. So maybe they're just gonna skip over the whole private public and run containers on bare metal or on a virtualized environment. Public cloud is there, and even bare metal instead of virtualization. So why is all this happening? This is a term that we talk a lot about in the industry, digital transformation. Here's the way I think about this. And if you talk to people in enterprises, especially your telcos or even government, this has become kind of a standard term, which is why we use it, because customers get it. It's because everybody is having to transform. And the digital part is just pretty simple. We're overwhelmed with the amount of data that we have to manage, secure, store, process, get information from, whatever we're doing. Our users, whether they be internal or external, want those digital native experiences. And as IT leaders, we have got to deliver digital services. And we're trying to do that as we're changing the way that we do IT. So the transformation is easy. We have to change. It cannot be business as usual. We have to embrace next generation architectures. We have to change the way we're working together, add more DevOps or agile processes, and we need to use cloud native platforms, whether those be private or public or some mix of the two. But the reality is, as we're trying to do all of this cloud native, next generation architecture DevOps containers, we still are living with the reality of 79, 80% of our investments and resources are going to what we have today. And so often, especially at conferences like this, when we're talking about OpenStack and next generation cloud architectures, it's so easy to forget that we still have so much legacy IT that we are trying to manage that is keeping the wheels on the bus, as we like to say. And so the big challenge, and when I talk to customers, this is what we talk about all the time. It's like, how do we start to shift those resources and investment to these next generation platforms, to the cloud, right? So you can move the business forward and you can start to take some of that technical debt out of the way. And at the same time, we really have to show clear business value. So it's not just about innovation or technology for technology's sake, but it's about how can we show that direct business impact, whether it's be just efficiency, productivity, greater agility, but usually it's about time to market. We just have to move faster. And you heard that in all of the customer examples in the keynotes this morning. What was one of those key themes? It was we had to give developers faster access, right? We had to get these applications out faster. We had to be able to scale much faster. So it's always about some kind of faster time to market, which is translating into increased revenue or faster time to market for products or whatever it is that the business needs. So the other thing is that we need to remember it still very early. So when we're talking about hybrid cloud and multi-cloud and all of these different ideas and ways that we can move to the next generation, 52% of this particular base of research that we did globally, still had not figured out their cloud strategy. And I will tell you, it's really interesting when you're talking to customers, especially I tend to talk more to CIO level and you start asking them about their strategy. I talked to four customers last week in Nashville, Tennessee and all four said we are gonna put everything in the public cloud within the next five years. And I said, interesting, how are you gonna do that? How are you thinking about that? And you realize that that mandate has become what they think is a pure cost savings mandate, but there isn't a strategy really behind it. They just think that's what they're supposed to do and that's what they're hearing that everyone else is doing. And when you start just asking some basic questions like how are you thinking about your legacy workloads in public cloud? How are you thinking about disaster recovery? How are you thinking about security and compliance? What are you doing with your regulations today? How are you thinking about blah, blah, blah? Like you just ask them four or five questions and the whole thing kind of falls apart, right? Because they haven't really figured out what that means from an implementation standpoint. So I think we need to be careful. When we look at public cloud and we look at the success of OpenStack, it's not gonna be one or the other and that's why hybrid becomes such an important conversation. Because you've gotta look at the workloads and what is the most relevant infrastructure for that workload and I wanna talk about that more. Because at the end of the day what we should be talking about is hybrid IT, not hybrid cloud. Because everything is not gonna go into the cloud. There is going to be on-premises infrastructure whether it's your own or someone else's. I mean the favorite thing I love to talk about is behind every cloud is a fucking data center. We have a lot of infrastructure on-premise still. Sorry that was only one, I promised I wouldn't do too many. And so what we need to think about is when we look across our applications whether those be legacy or net new applications how do we think about the infrastructure that we should put that on? Whether it's physical, virtual, private or public cloud and what hybrid allows us to do is to be thinking about it as a bridge. So some things we may just go to public cloud, that's great and that may be very good for some web applications or for some things that are not mission critical or things we've gotta get done really, really fast. We just do not have time to stand up the infrastructure for our developers on-premise or in a private cloud. So it's all about looking at the workload and choosing the best infrastructure. And so how do we do that? And this is something I've been thinking a lot about because this is probably the way most conversations that I am having with customers today are leading to because we keep starting with the infrastructure. We love to talk about infrastructure and I love talking about infrastructure more than most people but the problem with that is that we're not thinking about the workload, we're not thinking about the use case, we're just thinking about the pipes. And so how do we up-level that conversation and say, okay, let's start with the application, what do we need to be successful? And we need to be okay if the answer isn't open stack. Maybe it's just virtualization. Or maybe it is public cloud. I don't know, but the problem is we keep trying to shove the infrastructure first and not thinking about what's right for that application. So these are just some of the criteria that I've been talking about with some customers and thinking about as I try to figure out how do we do a better job of thinking about the characteristics of that workload and what would be the right answer whether it be one cloud, two clouds, on-premise, whatever it is and kind of change the conversation. So if you're looking at your own organization or if you're a vendor, think about this in a different way. Instead of starting with the open stack conversation, start with the application, start with what they're trying to do for the business and back into open stack, which may or may not be the right answer. If it's a highly scalable application that they've got to really roll out globally, open stack might be the right answer, but it might not. So these are just some things to think about. And I like giving this example. This is a financial services customer that we worked with that I can't name but I kind of genericize their journey. And there's a couple of things I liked about this example. One is that they really are thinking about it in an incremental journey perspective. They're not saying, okay, our vision is this, everything's containerized, strategic hybrid cloud, go. Which we know is not the way it happens. And what they did is they actually looked at their existing infrastructure and workloads and said, are we even fully standardized? Are we fully automated? And the reality was no, they still had some mainframes. They still had some old OSs. They had like five or six flavors of OSs. So can we just get to an SOE so that we can start thinking about how to move beyond that? And they looked at their virtualized infrastructure and they had multiple hyper-Vs going, but they were looking at it very tactically. And they thought, should we be looking at virtualization more strategically? And they started looking at KVM and how that might provide a common fabric as they started thinking about going to the cloud. So at each step along the way, they would test stuff. They would look at that environment and say, okay, is this tactical? Is this strategic? Are we using this in the right way? Are we fully optimized? Are we standardized? And literally throughout their entire infrastructure started to think about that. And then they looked at the processes and they looked at how they were working with the business and how the developers were working together with the ops teams. And they started to bring more DevOps processes to their IT department. And bring in more automation because they still had a ton of manual processes. So you can see all along the way, they started to look at cloud. And what I love about this is they tested both. And so they're a big OpenStack customer now, huge OpenStack deployment, but they also looked at public cloud. And they tested both. And they did a huge OpenStack POC. They weren't sold on either. But when it came down to it, what they decided to do for them, and this is a financial services, so highly regulated, it's in Europe. It's a lot of data sovereignty issues as well. They looked at public cloud as being what they're calling tactical. That's not to say that they're not putting a lot of things in the public cloud, but they're not looking at it as mission critical or things that would be potentially against compliance or regulatory issues. But they're using it a lot, especially for internal apps and things they've got to move very quickly. Then they tested OpenStack, as I said, and they decided to make OpenStack their strategic private cloud infrastructure. And so they are slowly moving to this what they're calling strategic hybrid cloud with everything containerized. So now they're using some OpenShift. They're starting to play with Kubernetes, starting to containerize both legacy apps and moving them forward, as well as letting their developers play with net new applications using containers. And so lots of ways to do this, this is not necessarily the right road map for every company, but what you can take from this is that incremental steps and the fact that they looked at each area to figure out, am I fully optimized there? Am I thinking about this in the right way? And they had a vision where they wanted to be. And you can see it is not 100% in the public cloud. So how are customers thinking about these hybrid IT environments? This was a big piece of research we did with OpenStack users specifically. And are you planning to use OpenStack in other environments? So workloads, they're currently running on OpenStack. How are they thinking about that from a hybrid perspective? And as you can see, there's a lot of different environments both on-premise as well as public cloud. 30% said, yeah, I'm gonna run my OpenStack workloads also in the public cloud. So customers are absolutely thinking about this hybrid environment. And 28% traditional virtualization. And it's funny, because so often when something new comes around, we think that it completely displaces the thing behind it. I can't tell you how many salespeople in our organization, when containers became the hot new thing, they're like, oh, we have containers, we don't need OpenStack anymore. Or we have OpenStack, we don't need virtualization anymore. And it's just like, guys, there's a roadmap for everything and there's some way that it's relevant depending on what the customer is trying to do. So we've gotta be careful not to get too hyped into the next thing and totally throw away things that are still working fine. So just quickly about Red Hat, I'm not gonna go into products at all because I don't think we're here to do product pitches. You can go to our booth to hear that. But the way we're thinking about this is Open Hybrid Cloud. And the way I think about that is just open, secure throughout, and importantly interoperable. And really how we're leveraging the same open APIs with our partners, with our customers, within our own internal engineering, there is no difference in how we integrate across our own stuff and how we integrate with our partners or customers if they're using a very heterogeneous environment, which is every enterprise customer that we deal with, right? Across those different footprints. And importantly at the management layer. And I think this is where Hybrid Cloud really starts to differentiate in terms of how you are automating, how you're managing, whether it's with a cloud management platform or just how you're providing that common management layer and it goes back to that compliance, that governance, right? Common access and how we're able to maintain that control in a very complex environment. And I just wanted to show this, we talked about containers and how we're really thinking about it and why I think it's important. I kind of like the fact this is building blocks because it really could be, take out the red hat piece and plug in the partner piece. And with public cloud it is all partners. And so how you think about containers, Kubernetes as that common layer, like I talked about, we're looking at OpenShift as our Kubernetes implementation with management on top and other things, whether it be stuff storage, whether from the community or using red hats or other highly distributed storage system. And obviously you need an OS underneath that since containers are an OS technology but really thinking about it holistically in these different building blocks that can come together. And this is a very common combination. And I think that the combination of, when we're looking at containers, Kubernetes and Linux running on OpenStack, which obviously also requires Linux, really starts to provide a powerful combination for customers when they're thinking about the combination of their applications and their infrastructure and a whole DevOps process and how to bring that together. And from a consulting perspective, this is something that's becoming very, very common. We've built out a very large services organization. We work with a lot of partners like Accenture and different things as well. But this is one of the things that we provide both from a cloud migration, but we also have something called the discovery session which is literally a free session that we work with you and try to identify where you wanna go with the cloud. And so it's really helpful if you are trying to figure out your strategy, if you are trying to figure out how to move forward, it's a great service that we provide for our customers. And of course, we have a lot of partners that we work with across the hybrid cloud environment. So just quickly to close, I do believe that when you're starting to look at this very complex hybrid environment, that the value that Red Hat brings is that everything from the physical, virtual, private cloud working with our public cloud partners, we made a huge announcement with AWS last week at our Red Hat Summit, which brings us even closer together with that. We already worked very, very closely with Microsoft and Azure as well as Google Cloud, IBM, SoftBank, SoftLayer, SoftBank, SoftLayer and also BlueMix in the session before this talking about they're using our open stack for a managed private cloud. So really working across the ecosystem, whatever vendors you work with, however you wanna do that, we play nice with others. But we do have those common layers and technologies that you can use throughout and really enabling you to have that hybrid cloud journey. So I would welcome you to come talk to us, like I said in our booth, there's a bunch of Red Hatters here as well. And if anyone has any questions, just let me know. And thank you very much. And thanks for your patience with our technical difficulties.