 our flagship program. We go out to the events, extract the ceiling from the noise. We're live in San Francisco, California for the Red Hat Summit, celebrating their 10th year of operation with Red Hat Summit. Certainly Red Hat has been around for more than 10 years, changing the game in the open source world. Certainly the Linux revolution has enabled massive amounts of innovation that's going to a whole nother level. We've been documenting it live here inside theCUBE. I'm John Furrier, the founder of SiliconANGLE and I'm joining my cohost, Stu Miniman, analyst at wikibon.org. And Stu, yesterday, day one, we had a great set of interviews. We had Padra from Cisco. We had the CEO of Red Hat, the EVPs, all the top dogs, the platform guys. This is an operating system play that has taken open source to a tier one viable technology. That is enabling this massive innovation cycle that we're seeing, Stu. So open source has gone from the old days of a cheap alternative to now the backbone, the bedrock, the foundation of innovation across all industries. All companies will be a technology company according to Cisco's CTO. And Red Hat's in the center of it, Stu. And they're humble. They're not the big muscle bound marketing oriented companies. Red Hat has a brand. They have an operating system. They got 10 years. So day two, what's your take on day one and what are you expecting to hear from them? Yeah, John, I think as you stated, open source has moved way beyond the price discussion. Open source can deliver quality. Open source can deliver better security even. We've talked a lot about the community. And with Red Hat at $1.3 billion, big question is, where's that next billion dollars? One of the big opportunities in front of them, of course, is OpenStack. If you look at this show, it's about 4,500 people. And John, next month you and I are gonna be partnering up again to go to the OpenStack Summit in Atlanta. And Red Hat is positioning themselves to be the Red Hat of OpenStack. They want to be the distribution of choice. We've got the head of their OpenStack group coming on the program today. And there's still some work to do on OpenStack. And Red Hat needs to kind of build their partnerships and their ecosystem. But there's a huge opportunity in front of them. Of course, the other big bet that Red Hat is pushing on is OpenShift. The CTO of Red Hat this morning talked about the blurring of the line between infrastructure as a service, which they use with OpenStack and platform as a service, which is OpenShift. So I want to dig into that a little bit more. And nice announcement this morning that Dell is endorsing Red Hat's cloud strategy. So Dell's been a little hot and cold on OpenStack. They're partnering with Red Hat and it's a nice big logo on the OpenShift ecosystem. Stu, talk about the horses on the track. Talk about the ecosystem because as you analyze this market, you got to look at kind of the macro trends at the marketplace level. You got to look at the business models, the stock prices that you said, where's the next billion dollars going to come from from Red Hat? Certainly there's the ecosystem behind that. And then you got to look at the technologies and ultimately look at the customer value, right? So if you look at stepping through that, how are you analyzing this cloud, OpenStack, OpenShift, OpenSource game because there is an infrastructure dynamic going on that is profound and quite frankly, something new that is creating an inflection point. That is the convergence of the infrastructure level, the development of cloud, private, public and hybrid with virtualization. Now we've got containers, all that above. How do you analyze the market? Yeah, so John, if you look at OpenStack, it's really like a four year old startup. So there's still a lot of discussion as to what is the place in the ecosystem that OpenStack has. There is huge investment companies like IBM and HP rallying around what's going on in OpenStack. Many companies will look at it as this is an alternative to be able to just put everything in the public environments. Obviously Amazon is the player in the public cloud and the likes of Google and Microsoft are going for the public cloud, but we know there's going to be a big market for private and hybrid clouds and OpenStack still is one of the leading contenders in that space and it is that ecosystem play which gives Red Hat a good seat at the table for that discussion. So Stu, let's go through what we're looking for in day two. Obviously OpenStack is going to be a big part of the conversation today. Yesterday we were teasing it out and everyone was like just kind of like a liberal in their eyes, well all these OpenStack quizzes, hello everyone wants to talk about OpenStack and Cloud Foundry and all the competitiveness of the platform as a service layer and that has really been a key discussion point and the crowd is certainly rabid about that topic. So I'm really interested in the OpenStack adoption and the stack. Is it baked out? What needs to get done? Where are the white spaces? Where are the battlegrounds in the stack? Because at the end of the day developers want speed to market, they want value, right? And then the ecosystem, we have Intel yesterday, Doug Fisher was amazing, I love that conversation, I replayed it again this morning, looked at it twice more. He had some really interesting discussion points around Intel and software and Intel kind of not sneaking into the market, they've been a powerhouse in software. Huge, huge, huge whale in the marketplace. Intel can set the tone big time. Cisco here, okay, for the first time and then IBM for 10 years. This isn't the big tier one players are here. Then you have a slew of startups. We saw Docker yesterday with the container really targeting multi-platform, multi-cloud interoperability for application developers. So the list goes on and on, Stu. And you know, announcements. There's some significant news. Dell announced their private cloud solution, the general availability for their enterprise path. So if anyone running Red Hat Enterprise Linux can go right to the enterprise. Stu, this is significant action. Yeah, John, it was a good series of announcements. Their partners are all stepping to the plate. As you said, we talked to Cisco pretty intensely. We're going to have IBM and Dell on today to talk about how they're partnering for software-defined environments on the IBM side and this cloud positioning on Dell. Still waiting to see how all of the changes inside of Dell, really, as Michael Dell likes to call them, the largest startup in the world right now. So Dell's a bit of a wild card out there and a partnership with Red Hat makes a lot of sense. Dell keynote this morning talked about that they're looking to become the open networking company with partnerships with Cumulus and they're doing things like open daylight. And John, as you said, at this show, I mean, docker, docker, docker. I was just joking with people on Twitter that it seems like every time you say container or docker, there's spontaneous applause and everybody gets excited. This can be, is this a pivotal technology? Is this like vMotion from VMware to allow simplicity and mobility of applications and make it simple for me to manage my applications separate from my infrastructure, which was really one of the foundational things that we're looking to get out of platform as a service. You know, and I talked to Jerry Chen over at Greylock all the time about this and this was his first investment, dockers. I always joke, hey, they're going to wear docker pants. I don't want to see that high-tech uniform coming out. But all jokes aside, docker has mind share right now, mainly because they have the container, which is not a new concept, but when you bolt that onto cloud with virtualization, you now have a path for developers to have what they need to get the kinds of applications to the market, Stu, and that's the key. And we heard that yesterday from Intel yesterday around also the business models around these companies. Will the container and business model be something that will be in front of mind? And I was having conversations with the writers from the register last night, Jack Clark, and I was talking about docker and the conversation we had, Stu, was are they going to focus too much on the business model? Will they jump and try to establish revenue versus establish proliferation and adoption? And I'm saying, if they go for the revenue model, they're crazy, they got gray lock behind them and a big slew of VCs, they should not focus on that at all, get the product in the hands of the customers, get some proliferation, get some adoption, and then build from there, because once you get that kind of adoption, Stu, you can have beachhead. The other thing that was, we talked about yesterday that we're going to continue today and I'd like to get your take on it is, can there be a red hat of film in the blank? Peter Levine and Andreessen Horowitz wrote a blog post on TechCrunch saying they'll never be a red hat of anything. And he was the CEO of ZenSource, was an early employee at Veritas, Tech Luminary, a lot of experience. We had guys yesterday saying, that's not going to be true. We got Hortonworks, which is essentially the red hat for Hadoop. And I think with cloud, you can see some of the red hat business model subscription taking hold. But again, it's not a one business model fits all. There are some other approaches, open core, et cetera. So with that, what's your key thing that you're looking for today? John, we asked Jim Whitehurst, why aren't there more billion dollar open source companies? And he said, if selling free software was easy, everyone would be doing it. So I think there's some big potential markets out there, John, that we've been digging into. You're talking to some of the smart people of the show here, Dave Cahill this morning on OpenStack said that every CIO out there is telling his staff, you got to figure out what this OpenStack is and if we need to be there. And especially guys that are already working with red hat are probably having those joint discussions as to where they go forward. So a lot of areas for new innovation and growth out there. This is theCUBE, we're day two live coverage of two days wall-to-wall coverage of the red hat summit. It's all about dev ops, it's all about software, it's all about innovation and open source at a level that we've never seen before. And with Jay Boss and Linux, you have dev and ops. Really the foundation in the enterprise and it's exciting to cover. We'll be right back with continuous coverage day two at the red hat summit. We'll be right back after this short break.