 Live from the Computer History Museum in the heart of Silicon Valley, it's theCUBE. Covering OpenStack Silicon Valley 2016. Brought to you by Morantis. Now, here are your hosts, John Furrier and Lisa Martin. Okay, welcome back everyone. We are live here in Silicon Valley for the wrap up of two days of coverage of OpenStack Silicon Valley. This is theCUBE, Silicon Angels flagship program. We go out to the events and extract the signal from the noise. I'm John Furrier. My co-host, past two days, Lisa Martin. Lisa, we look back two days, we're wrapping up the show here at OpenStack. This is the open cloud conference. It's really about building and using open source, the opportunity for companies to create their own cloud. Obviously the cloud that we know, Amazon Web Services, Google, among others, Azure, Microsoft, among others, VMware, has some cloud action going on. But in general, this is kind of a new developer community and we've heard from everyone. We've heard from luminaries like Lutucker to entrepreneurs like Patrick Riley from the big players, the companies, entrepreneurs. And we've got a good cross-section of the industry here. And it's playing out like a reality show on Silicon Valley HBO, but not on HBO. We're live here on theCUBE. Your thoughts, what's your perspective? I learned a lot and what's your thoughts? Oh absolutely, I agree 100%. I learned a lot as well. I think what we're seeing here, especially being in the heart of Silicon Valley here at the Computer History Museum, Google's down the street, is this is the heart of innovation. And it's really what the community of open source is showing is that they're not afraid of the big bad wolves. The big bad wolves need to play here. The spirit of innovation is really what, in some cases, drives complexity, but there are people there that are ready to solve that complexity or at least shift it around. I think what we're seeing is that the technology community is embracing the change. Where are we going next? And how are they helping enterprises, smaller organizations to really abstract the technology to focus on meeting the expectations of the customers? And the thing that jumps out at me at this show is the velocity of the pace of change and the developers who are hard charging, really strong developers in this ecosystem because you're talking about app developers, infrastructure guys kind of coming together, dev ops are the best of breed developers and they're in the trenches and they're moving super fast. So it's like whitewater rapids, level five kind of category of just super change. These guys are tech athletes. So I find it one interesting that they've survived and now thriving, but yet the future is so bright. As Lutaka was pointing out, is that a complete sea change of digital transformation where it's no longer those tech guys doing stuff. It is part of the DNA of all companies because there is a march towards a fully digital company. And if a company isn't fully digital, that means that they will not be competitive. And ultimately, either on a downward slide to irrelevance or in some cases going out of business. So again, a company can pop out of nowhere. The innovator's dilemma is no longer the old model. We heard that from Joe Weinman yesterday. This new dynamics, the Ubers, the Airbnb's and the big guys like Apple and Google still contributing. And then you got Facebook to making their own hardware, virtual reality, augmented reality. These are the top line messages in this industry, yet the lowly enterprise who's been doing stuff the same way for multiple decades is looking at this trend and really having a tough choice. They got to be relevant or they will be irrelevant. Absolutely. And one of the things that you brought up, I think is key is speed. It's that everything needs to happen right now, right now, right now. And there are all these companies that are coming up that are born from the innovations that we were seeing in the open source community that are enabling this making it possible so that the Ubers of the world are kind of the models for the Wells Fargo's of the world to become software technologies. But your point and lose was great is that digital transformation, you make one wrong step and there is no business there. And there's certainly competition waiting in the wings to take over. So I think we're in a time of incredible speed, but there's also incredible capabilities to enable that speed. Yeah, and we had used an example on day one yesterday. We talked about Jet.com was sold to Walmart for three plus billion dollars. Wasn't even around two years ago. And this is the kind of example that enterprises can either do themselves or a new entrant, a new entrepreneurial opportunity could come in and really differentiate on one feature and really change the landscape of a business. So the open stack community using data and all this great stuff is about really making that happen fast. And literally overnight success can decimate an existing incumbent. If they're too slow. Another thing, I agree. Another thing about digital transformation that's key that we heard Joe Weinman talked about, Lou Tucker talked about it as well today is that digital transformation is predicated upon the business and the IT folks aligning. Much easier said than done. We've also heard from a number of folks who said, you know, the challenge with cloud deployments, whether it's on open stack or not, isn't technology. It's all of these things in the way. And part of that's people and processes. So really to become a successful digital business takes time when you don't have it. But it also is absolutely essential that there's alignment within the corporation. They know what problem are we trying to solve? What do our customers want? How do we do that? It's exciting for me and covering all the years now, seventh year at theCUBE is you hear things and it just pops in your head and you go, I just can't get rid of that thought. And Lou Tucker made a comment when we were asking him about what's changed over the years and we've seen and he's certainly seen a lot of change, a lot of wealth creation, a lot of value creation. He's got a product in the computers museum itself. But he said something profound and it stuck with me. And I'm calling it the Starbucks developer. And that's what's in my head. I can't get rid of that. He made a comment that now the barriers of software are such that someone can go to Starbucks, whip up an app and provision in the cloud and literally on their way to essentially making a difference in someone's lives. I've never heard that term. We'll call it the Starbucks developer. But that represents the future. It could be an enterprise developer, it could be an entrepreneur. That Starbucks developer is this new breed. It's not so much that I went to a computer science degree. It could be anyone. Right, and that's what's so exciting and I think that's what this community is showing that there is that opportunity. Of course we're in Silicon Valley where you go to a Starbucks and maybe the wallpaper is ones and zeros. But I love that, that you're right, that that speed and that innovation. The possibilities are endless and it's going to take this fresh talent coming in who maybe hasn't been burned by some of the things in the biases in the past to help drive that. And I think the timing is right for that. I think also the open stock has shown that you talked about from survive to thrive. They've done that. They're now on the cusp of really showing companies how to start opening up new revenue streams and monetizing it. That time is now. We're on the cusp of that. And I'm constantly intrigued by the open source business model. We talk about all the time in the queue, but the comments we're hearing in the hallways here is that this now dynamic is so game-changing and the fear in the hallways here in Silicon Valley is that the VC is going to get their claws into the deals and that's a worry because when VCs put a big investment, say in Docker, for instance, which we love Docker, DockerCon. You know, they have a lot of money in that. They got to get that money out. They're investors. They're not philanthropy. So that is an interesting forcing function which actually could cause an imbalance in these ecosystems. So the thing that I'm watching right now and I haven't heard a lot of it and I haven't seen any smoke yet, but kind of the whisper in the hallways is as the land grab and the growth happens with growth comes a land grab. Commercial opportunities is people are worried that the VC is going to get their claws into these startups that are funded to leverage an ecosystem or use open source. So again, this balance in the organic communities of open source, now that it's a tier one, it's about contribution and giving back and we heard conversations that Amazon takes from open source but doesn't give back. So there's going to be I think this new dynamic of someone's going to have to take the prize off the table in terms of revenue. Who is that going to be? And we're also in this new dynamic of the developers being in charge and the buyers being in control. So from a transparency perspective, where does that leave OpenStack and the ecosystem partners when the buyers can get access to anything that they're looking for? I'm just curious what your take is on that. Well, I think that's a great point. I think that the reason why OpenStack is successful is because they have put the developers in charge. When OpenStack had a really interesting moment when it first came out on the scene, it was a vendor love fest and it was felt not authentic. And then what happened is the foundation got down to its roots and said, hey, contribute with code, let your code do the talking. And since then you've seen this OpenStack foundation being shepherd and nurtured by the notion of contribution or developers in charge. But I think in general, this goes to a whole nother level in all ecosystems and certainly even into the enterprise, which is the business model, the technology model and the data modeling is all upside down. It's the reverse of what it was. In fact, the success format that people are implementing is, whatever the old way was, we're just going to do the opposite because that seems to be the common trend across all kind of processes is that it's the reverse of what it once was. So that's an interesting kind of dynamic and certainly scary for people, not just culturally, but just operationally. So I think this digital transformation is going to be a lot more awkward than we think, but the benefits would be significant in my mind. So that's kind of my take on it. So I think this OpenStack, this buyer led journey, the discovery and how people interact and a connected network will ultimately play out in a way that might not be the way the suppliers or the vendors who sell stuff want it to be. So that's going to be a very interesting dynamic. Definitely. Well, great to have you there this week. It's been fun co-hosting with you. It has been fun. I've enjoyed it, John. We had a great time. OpenStack, Silicon Valley, OpenStack SV, go to siliconangle.com, check out all the latest information on innovation around tech. Also go to wikibon.com, where you get great research. There's some free content on there as well as a subscription to siliconangle.tv to find out when the next CUBE event will be. And of course, go to YouTube for all the videos. And with us at CUBE Live, we'll see you at the next show. Thanks for watching. And this is a wrap from OpenStack SV in Silicon Valley. I'm John Furrier with Lisa Martin. Thanks for watching.