 The Cube, at OpenStack Summit at Lata 2014. Is brought to you by Brocade. Say goodbye to the status quo and hello to Brocade. And Red Hat. Here are your hosts, John Furrier and Stu Miniman. Okay, welcome back everyone. We are live for day two at Atlanta. We are here at the OpenStack Summit. This is the Cube, our flagship program. We go out to the events, extract the sizzle from the noise. I'm John Furrier with Stu Miniman. Kicking off day two, Stu, we got a big schedule today and more packed guests, a lot of action going on. So what do you expect to hear today, Stu? And then I want to get your opinion on what we heard last night at the events. Yeah, so John, we had the keynotes this morning. You had the, like, the solid fire and Ubuntu, you know, Collier got up and talked about, you know, where OpenStack has come over the last nine releases and where it needs to go over the next nine releases. So, you know, we were poking a little bit at the, you know, how far we've come and the maturity of the solution. And for me as an analyst, one of the things I look at is, you know, what are appropriate expectations? You know, a lot of the players that are involved in this space are startups. And, you know, getting 20 or 30 million dollars worth of revenue is really good for those startups. If it's the big player, you know, who typically won't even consider something as, you know, somewhat significant in this, it's getting over 100 million dollars. Then we've got a little room before, you know, OpenStack is going to get there. But, you know, you asked about last night, I mean, so some really good parties, Piston really tore it up. They had at the Opera House, it was a classy place. Place was jamming. You know, good to see the geeks, you know, you know, dancing to it. What did you hear, Stu? What's the scuttle by them? Obviously, you know, those party people start drinking a few and then they get loose lips. Yeah, so, you know, there are deployments of OpenStack. It's not like nobody's doing it. It's, you know, there are some big service providers that are, you know, getting things done. So, you know, Piston, Swisscom is, you know, well-known that that's a good client of theirs. You know, Morantis has been around for a while. And, you know, they have, what I heard is there's one customer there that, you know, definitely makes up, I forget if it's, you know, 10 or 20 percent of their overall revenue. So, you know, that tells you, in the scope of things, you know, where the revenue maturity is, if, you know, one customer can really just take up such section. But is there real revenues, Stu? I mean, people talking about real stuff being shipped and booked. So, John, how would you define real revenue if you're saying, does anybody make 100 billion? No. You know, are they making, you know, tens of millions of dollars? Yeah, there's probably a few companies making that. I was talking to one analyst that said that they predicted by 2016 the service provider market will do a billion dollars worth of OpenStack. So, I mean, that's still two years out now, John. And a billion dollars is a lot of money, but when you think about the fact that IBM and HP and everybody else are throwing billions of dollars into this, when will the companies really see their rate of return? So, I still think, you know, as we said yesterday, we've got at least another year before the revenue ramp really starts to happen. The other news, Red Hat is announcing their beta availability of Red Hat Enterprise Linux OpenStack Platform 5. So, what's going now is that, you know, Red Hat is making that available now, Stu. So, that was news from Red Hat. And again, you know, Red Hat was generous enough to step up and sponsor the Cube for OpenStack in this next three days. And so, I think it's going extremely well here for Red Hat and certainly a shout out to Brocade as well, sponsoring the Cube. But a lot of news is happening, but I want to ask you, where's the action in the stack? Is it at the storage? I'm here in storage, Cinder Deals, IBM announced something at SolidFire. Pass, obviously, Platform as a Service is the battleground as we always say. Where's the action, Stu? Yeah, so, John, great question. And if you look at who's going to make it easy for the enterprise to consume, it's great that we've got at this conference those super users, the ones that, you know, they know how to code, they know how to, you know, tweak their applications and really get involved and change the way things are done. The problem is that most enterprises, John, aren't going to be there. There was a great quote that said, if you're waiting to create a bunch of OpenStack Ninjas, you know, we're going to be waiting a while for the enterprise to do this. It takes years for IT to kind of move along and change the career tracks and train people up. That's why SolidFire announced, really, a reference architecture, which is a form of converged infrastructure at the show, partnering with the likes of Dell and Red Hat to simplify that stack so that I can, if I can take the infrastructure layer, make it easy to consume that, then I can spend my time to automate everything, because that's what we need to be able to do to, you know, change the IT infrastructure. Tim Crawford, hey, Tim, good to see you out there on CrowdChat, go to CrowdChat.net slash OpenStack. We're having our group conversation with our new engagement container. Some folks are familiar. If you want to chime in, we're watching that stream. Stu, he says, aside from the OpenStack ecosystem, what significant announcements and shifts have taken place at the OpenStack Summit? So, first of all, I don't think there's been a big announcement. What everybody's focused to hear on is, you know, this started out as a developer show, so we want to make, you know, the platform more reliable, you know, more ready to be consumed. So, you know, it's really getting the users involved and getting the operators involved and helping people along that journey to, you know, transform how they do things. And, you know, John, it's part of that whole DevOps revolution. So, you know, companies need to get behind that. And, yeah, there hasn't been, there's been a few of the vendors, you know, oh, yeah, I've got, you know, my Cinder solution and I've got some of the pieces, but it's more about, you know, building that full robust solution. Yeah, I mean, Tim, we talked about it yesterday on the wrap-up and I think, you know, one of the things you might have missed that, but what we said was, there's no real shot hurt around the world at this OpenStack so far. To me, there's a series of momentum-type announcements. New customers certainly piston with Swisscom, IBM with Cinder, SolidFire here. There's a lot of stuff kind of posting up, you know, some announcements. You know, as Dave Vellante would say, you know, the ball moved, you know, first and ten, moved the chains, you know, we haven't seen that big passing play to use the football analogy, Stu. And Tim, so the thing is, is that there's no real, you know, shots fired, there's no real action there, but I think the theme that I see is stability. You're seeing people saying, look it, this is the real deal. OpenStack is here for the long haul. Everything's out in the open. Certainly it's a huge vendor fest right now and so we get a lot of people, you know, blowing an arrear, hey, you know, we're doing all this great stuff and, you know, the customers, so there's some customers out there that are coming forward, you know, Disney was a new one, Wells Fargo, last year they had a bunch of other ones, but you know, what I heard last night, Stu, is people just don't want to come forward, it's too early. Tons of POCs going on, but the foundation is the critical thing for the story here and that is the foundation of the OpenStack foundation is set, it's strong, there's really no cracks at this point. I think people are forming, right? You're seeing, you know, the deals happening, so I think you're seeing the posture and the partnering. Yeah, and John, even some of the big vendors, I hear they're taking down some deals, the struggle that they have to deal with is, you know, if you think about the infrastructure guys, the guys that are selling servers, storage, and networking gear, if they put OpenStack in, it is opening the door to make the environment more flexible so that, you know, I hate to say it, but there's less of a lock in and so therefore, you know, some big guys selling storage solutions isn't going to bang the drum that said, hey, we helped customers move to this new environment. By the way, all my competition, why don't you come in here to try to, you know, displace me when they got the next upgrade because, you know, if I support OpenStack and, you know, it's going to make it easier for my customers to be able to move, you know, from one piece of infrastructure to another. I think also, Tim, I would say to Tim and the folks out there is that HP and IBM's presence is significant this year. I mean, they've always been involved. Last year when we were covering it, you know, they were here pretty much in a big way. We'll talk to Sargalai again today, who's the chief operating officer and vice president of HP Cloud. But bigger presence, bigger commitments, obviously on their big announcement on Helion, it was just recent, and then obviously, Blue Mix with IBM's too. So, clearly, the big guys are rallying in a big way. It's not just the toe in the water. Again, HP is on the board, so, you know, and IBM's heavily involved. So, that's a big deal, in my opinion. Again, this is more of a ground game, as well, of momentum. It's not really the big wave has crashed to hit the beach yet. So, I think that's the real story, and we're going to keep our eye on it. Again, we want to talk to customers. We want to talk to the film tree guys, too. Is that what they're called? Yeah, digital tree, I think. He did a funny segment, John. I mean, he walked out on stage looking like Zach Alfinakis. They brought the two ferns up there. All they were missing was President Obama, you know, to help pitch healthcare. Yeah, and I think that's a great customer testimony. They're clearly building an open stack, and that's the opportunity from small medium sized enterprises to service providers. So, Stu, what else are you expecting to hear from folks today? So, you know, John, it's more of, you know, how are we building the swim lanes? You know, where are companies going to, you know, get those early deployments? You know, what's the benefits to the user? The use cases that people can, you know, glom onto? And, you know, John, I think back to AWS Summit that we were at last year, I walked into that show, and everybody was talking about the future. It's like, how are we building those new apps? It was, you know, mobile, mobile, mobile, you know, all the streaming things that were going on. And, you know, there's a great vibe at this show. I mean, I love they've got the big signs of the super users here, you know, that the geeks are all out in force. But it seems very grounded in reality as to, you know, oh, we've got to fix Neutron, and we've got to, you know, do this next patch and, you know, turn the crank on what's going on. You know, I'd like to hear from some of these people to, you know, paint that picture as to where we're going. You know, you're asking every guest as to why this is the most important time. And OpenStack is important, but, you know, there's some bigger trends that seem to be more important to me. You know, that kind of, you know, overshadow what's going on. Yeah, Eileen Evans from HP, and we're on a great segment from HP. Obviously, I'm on the technical committee on board. Saw him last night as well, having a good time at the Piston Party, but Eileen basically, right, it's really early. I mean, it's still early, early days in cloud. I think the real disruption is going to happen. I think this is a multiple decade revolution, Stu. I think that, you know, this is, again, this is just early days, and I think, you know, even IBMs are the same thing that we're going to be kind of joking about. Even Lutucker, they all kind of answer the same thing on that one question. The consistent theme is, it's super early right now, and an industry's being formed. So I think that's the real positive thing that I like about this action at OpenStack. It's not the, you know, kind of like jockeying, but at the end of the day, it's still really early. Yeah, and John, we're going to dig in with the guys that are building the cloud. So companies like Dreamhost, you know, HP has their own cloud. SolidFire, you know, really cut their teeth in the service provider market. So, you know, maybe it's a little early to talk about the enterprises that are going to, you know, put this in, because it's going to be those bigger cloud deployments if they standardize an OpenStack that are going to help drive this going forward. The question that people were talking about last night is, and this was almost the point where people were talking about, and Bets was, of all the people that are attending in the exhibit, will they be around next year? And that's a good question, Stu. I mean, what do you think about that? Yeah, John, I mean, absolutely. It's hugely disruptive. You know, if you look at, you know, who's on stage and who are the big keynotes. We know that there were, you know, eight or ten companies that wanted those top four slots. So, we're going to see, you know, rotating as to who's putting the most money in. It's pretty easy to see that, you know, some of the bigger players that have been acquired pretty easily, you know, or, you know, as some of the bigger players really start to put some focus as revenue grows, you know, how many of them will be able to transition kind of across that chasm from the early adopter market. I mean, John, we haven't gone through and said, you know, who's really got, you know, their solutions and, you know, who might do an acquisition. The thing that, you know, I know you've heard plenty and I have too. There's some of these smaller companies that they might not even want to do an acquisition, but they do an acquisition for talent acquisition, you know, so acquiring those people because if you've got, you know, those really bright people that are strong in the community, it might be worth, you know, taking that company out. I think people are still really nervous. I mean, you know, when you see the big companies come in, the proprietary vendors, who are now going open, IBM and HP clearly going open source, they get nervous, right? I mean, they're a little bit nervous that, you know, and this has happened in the past. I'm not saying it's going to happen now, but that is what people are afraid of. They're afraid of strings attached to the commitment from the big guys. And that's really the ecosystem thing, but, you know, will they play nice in the sandbox? We are watching that, so, you know, it's just different times. It's all out in the open now, but, you know, with social media, we've got crowd chat, we've got Twitter, I mean, real-time communications, so we see bad behavior. It certainly will be on Twitter pretty quickly. And I think that's the real deal, Stu. I mean, what's your take on that? Do you think the community is strong enough to do that? Yeah, so, John, the term I heard over and over again at the show has been momentum. You know, if you just think of this from, you know, how many people are involved, how many companies are putting in effort, you know, there's just strong momentum there. And actually, in the keynote this morning, I'm trying to remember, I think it might have been Collier, one of the other people they said, some people think that we might need kind of that benevolent dictator of the community, but that's not the way that OpenStack works. It's about, you know, the foundation and the community and, you know, just getting everybody involved. So, you know, open source has, you know, had plenty of environments that, you know, did need that strong leader. And, you know, maybe OpenStack can show a different way, really have the community drive this forward. It's challenging and hard to do it that way. Well, you know, getting a lot of people want to know what's going to be around for next year. Tim, you know what, we'll make it a note for us, too. We'll walk around tonight. You and I will start handicapping who's going to be around next year, and who's going to make the big moves. I think right now, it's about pole position. I don't even think the race has even started. I think, you know, look at Red Hat, clearly good great pole position with Linux, and I think IBM and HP, their cars are right at the top of the line there. So, this is The Cube. We're going to be breaking it down for day two here live in Atlanta. Stay with us. We'll be right back with our next guest.