 Hello, brilliant humans, and welcome back to Las Vegas, Nevada, where we are live from the AWS re-invent show floor here with theCUBE. My name is Savannah Peterson, joined with Dave Vellante, and we have a very exciting conversation with you. Two companies you may have heard of. We've got AWS and Red Hat in-house. Manu and Joel, thank you so much for being here. Love this little fist bump to start it off. That's right. Before we even got rolling, Manu, you said that you wanted this to be the best segment of theCUBE's airing. We're doing over 100 segments, so you're going to have to bring the heat. We're ready. Let's bring it on. You're ready. All right, I'm ready. Dave's ready. Let's do it. How's the show going for you guys real quick before we dig in? Yeah, I think after COVID, it's really nice to see that we're back into the 2019 level. And you know, people just want to get out, meet people, have that human touch with each other. And I think a lot of trust gets built as a function of that. So it's super amazing to see our partners and customers here at re-invent. And you've got a few in the house. Just a few, maybe a couple. Very few shows can say that, by the way. It's maybe a handful. I think one of the things we were saying, it's almost like the entire Silicon Valley descended in the expo hall area. For a few different reasons. There's a few different stuff. Broadly defined. Yeah, yeah, yeah. So how's the show going for you so far? It's amazing. It's the 10th year, right? It's, I think I've been to five and it grows every single year. It's the, you have to be here. It's as simple as that. And customers from every single industry are here too. You don't get a lot of shows that have every single industry in almost every single location around the globe. So it's, it must be here. Well, and the personas evolved, right? I was at re-invent number two. That was my first. And it was all developers, not all, but a lot of developers. And today it's a business mix, really is. Totally is a business mix. And I just, I talked about it a little bit on the show, but the diversity on the show floor. So first time I've had to wait in line for the ladies room at a tech conference in almost a two decade career, but it is. Yeah, and it was really refreshing on some press. So clearly there's a commitment to community, but also a commitment to diversity. And it's brilliant to see on the show floor. This is a partnership that is robust and has been around for a little while. Mani, why don't you tell us a little bit about the partnership here? Yes. So Red Hand and AWS are best friends, you know, forever together. Aw, no wonder we got the fist bumps and all the good vibes coming out. I know it's great. I love that. We have a decade of working together. I think the relationship in the first phase was around running rail bundled with EC2. We have about 70,000 customers that are running rail, which are running mission-critical workloads such as SAP, Oracle databases, bespoke applications across a set of verticals. Now as more and more enterprise customers are finally endorsing and adopting public cloud, I think that business is just going to continue to grow. So a lot of progress there. The second iteration has been around developers telling Red Hand and AWS, hey, listen, it's getting competitive. We want to deliver new features faster, quicker. We want scale and we want resilience. So just the entire push towards DevOps containers. So that's the second chapter with Red Hand OpenShift on AWS which launches a joint Mani service in 2021 last year. And I think the third phase, which is super excited about, is just bringing the ease of consumption, one click deployment, and then having our customers benefit from the joint committed spend programs together. So making sure that rail and Ansible and JBoss, the entire portfolio of Red Hat products are available on AWS Marketplace. So that's the one to three iteration of our relationship. It's a decade of working together. And best friends are super committed to making sure our customers and partners continue to be successful. Yeah, he said it perfectly. 2008, I know you don't like that, but we started with RHEL on demand just in 2008 before EC2 even had a console. So the partnership has been there, like Manu says for a long time. We got the partnership, we got the products up there now, and we just got to finalize that go to market and get that gas on the fire. Yeah, so Graviton, Outpost, local zones, you're leading it to all the new stuff. So that portends, I mean, 2008, we're talking two years after the launch of S3. That's right. So in that look, so is this a harbinger of things to come with these new innovations? Yeah, I would say, you know, the innovation is a key tenant of our partnership, our relationship. So if you look at from a product standpoint, Red Hat or RHEL was one of the first platforms that made support for Graviton, which is basically 40% better price performance than any other distribution. Then that translated into making sure that RHEL is available on all of our regions globally. So this year we launched Switzerland, Spain, India, and Red Hat was available on launch there. Support for Nitro, support for Outposts, Rosa support on Outposts as well. So I think that relationship, that innovation on the product side, that's pretty visible. I think that innovation again, then translates into what we're doing on marketplace with one click deployment we spoke of. I think the third aspect of the innovation is around making sure that we are making our partners and our customers successful. So one of the things that we've done so far is, Joe leads a black belt team that really goes into each customer opportunity, making sure how can we help you be successful. We launched, and we should be able to share that on a link after this. We launched like a big playlist, which talks about every single use case on how do you get successful on running OpenShift on AWS. So that innovation on behalf of our customers, partners to make them successful, that's been a key tenet for us together as well. That's right. And that team that Manu was talking about, we're going to 10X that team this year, going into January. Our fiscal year starts in January. Love that. Yeah, we're going to have a lot of- No hiring freeze over here. Nope, no ma'am, no, that's right. And what I love about working with AWS, and Manu just said it very, all of that's customer driven. Every single event that we, that he just talked about in that timeline, it's customer driven, right? Customers wanted rel on demand. Customers want J Boss up in the cloud. Ansible this week. You know, everything's up there now. So it's just getting that go to market tight and we're going to get that done. So what's the algorithm for customer driven in terms of taking the input? Because of every customer saying, hey, I want this, I want that. Really similar question. That's what I want. And if 95% of the customers say it, Jay, maybe that's a good idea. I should do that. That's right, trends. But 30%, you might be like, 20%, how do you guys decide when to put gas on the fire? No, I think, as I mentioned, there are about 70,000 large customers that are running rel on EC2. Many of these customers are informing our product strategy. So we have close to about a couple of thousand power users. We have customer advisory boards. And these are the customers that are informing us. Hey, let's get all of the Red Hat portfolio and marketplace, support for Graviton, support for Outpost. Why are we not able to dip into the consumption, committed spend programs for both Red Hat and AWS? So it's these power users, both at the developer level, as well as the guys who are actually doing large commercial consumption. They are the ones that are informing the roadmap for both Red Hat and AWS. But do you codify the feedback? I'm like, I want to see the data data board. I don't know, it was maybe Jassy, maybe it was Bezos, that data beats intuition. So do you take that information somehow? I mean, it's global, 70,000 customers, right? And they have different weights, different spending patterns, different levels of maturity. How do you codify that? And then ultimately make the decision? Yeah, if I may. Well, you've got the strategic advisory boards, which are made up of customers and partners. And you know, you get a good, so you got to get a good slice of your customer base to get in and you got to take their feedback and you got to do something with it, right? That's the way we do it and codify it at the product level. Open sources, that's basically how we work at the product level, right? The most elegant solution in open source wins. And that's pretty much how we do that at the technology level. I would just add, I think it's also just the implicit trust that the two companies had built with each other, working in the trenches, making our customers and partners successful over the last decade. And Alex, give an example. So that manifests itself in context of like, you know, Amazon and Red Hat just published the entire roadmap for OpenShift, what are the new features that are becoming over the next six to nine to 12 months? It's open source available on GitHub. Customers can see and then they can basically come back and give feedback, like, hey, you know, we want HIPAA compliance, we just launched. That was a big request that was coming from our healthcare customers. That is not an easy process. You know, support for Graviton or NVIDIA instances. So I think it's a... Here's the thing, the reason I'm pounding on this is because you guys have a pretty high hit rate. And I think as a customer advocate, the better, you know, if you guys make bets that pay off, it's going to pay off for customers, right? And because there's a lot of failures in IT. I mean, let's face it. And I think you said the keyword bets. Place a lot of small bets. Do you have the innovation engine to do that? AWS is the perfect place to place those small bets and then you, you know, pour gas on the fire when they take off. Yeah, that's a good point. I mean, it's not expensive to experiment. Yeah, especially in the managed service world, right? And I know you love taking things to market and you're a go-to-market guy. Let's talk GTM. What's got yourself pumped about GTM for 2023? We are going to, you know, 10X the teams that's going to be focused on these products, right? So we're going to also come out with a hybrid committed spend program for our customers that meet them where they want to go. So they're coming out of the data center, going into a cloud. We're going to have a nice financial model for them to do that. And that's going to take a lot of the friction out. Yeah, I mean, you've nailed it. I think the fact that now an entire Red Hat portfolio is available on Marketplace, you can do it on one click deployment. It's deeply integrated with Amazon services. And the most important part that Joel was making, now customers can double-dip. They can drive benefit from the consumption committed spend programs, both from Red Hat and from AWS, which is amazing. Which is a game changer for many of our large customers. That's right. So we're going to really go to town on that next year. All the resources that I have, which are the technology sellers and the essays, the engineers, we're growing this team the most out of that team. So it's a global team. So when you say 10X, how many are you at now? I'm curious to see where you're headed. I can't tell you. Okay, but it's not one. Right. Oh no, there's not one. It's triple digit. Yeah, yeah. Oh sweet, awesome. And it's a very sizable team. They're actually making sure that each of our customers are successful. And then really making sure that no customer left behind policy. And it's a great point that customers love when Amazonians and Red Hat show up. They love it. And it's, they want to get more of it. And we're going to give it to them. Must feel great to be loved like that. Oh yeah. That's right. Yeah. I would say yes. Seems like it's safe to say that there's another decade of partnership between your two companies. I hope so. That's right. That's the plan. And I would say also, just the IBM coming into the mix here. Yeah. You know, Red Hat has informed the way we have turned around our partnership with IBM. Essentially, we signed the strategic collaboration agreement with the company. All of IBM's software now runs on Rosa. So that is now also providing a lot of tailwinds, both to our rail customers, Ansible, as well as Rosa customers. And I think it's a very net creative, very positive for our partnership. That's right. It's been very positive. Yeah. You guys are both very positive. Yeah. Also that. Great point, Dave. Yeah. We have a new challenge, a new tradition on theCUBE here at Reinvent. Where we're, well, it's actually kind of a glamour moment for you depending on how you leverage it. We're looking for your 30 second hot take, your Instagram reel, your sizzle, thought leadership, biggest takeaway, most important theme from this year's show. Many want to, oh, all right, Joel. I mean, I'm a GTM boy. I feel like you can spit it out. Rosa. Yeah. It is all about Rosa for us. It is all in on that. That's the native OpenShift offering on AWS. And that's the soundbite we're going to town with. Now, I don't want to forget all the other products that are in there, but Rosa is a very key push for us this year. Fantastic. All right, Manu. I think our customers, it's getting super competitive. Our customers want to innovate. Just a little bit. The enterprise customers see the cloud native companies. I want to do what these guys are doing. I want to develop features at a fast clip. I want to scale. I want to be resilient. And I think that's really the spirit that's coming out. So to Joel's point, you know, move towards containers, serverless DevOps, which was like, you know, aha, something that's happening on the side of an enterprise is not becoming mainstream. The business is demanding it. The IT is becoming the centerpiece in the business strategy. So that's been really like the aha, big thing that's happening here. Yeah. And those architectures are coming together, aren't they? That's correct. Right. You know, VMs and containers. It used to be one architecture. And then at the other end of the spectrum is serverless. People thought of those as different things. And now it's a single architecture and it's kind of right approach for the right job. And you know, compliments here to Red Hand, they do an incredible job of hiding that complexity. Yeah, yes. And making sure that, you know, for example, just make it easier for the developers to create value. And then, and you know, yeah. That's right. They were previously siloed architectures. That's right. Open ship, we want to be the place where you want to run containers or virtual machines. We want that to be this single place. Not go bolt on another piece of architecture to just do one or the other. Yeah. The hybrid cloud vision is working for IBM. No question, you know, and it's achievable. I mean, I just, I've said, unlike, you know, some of the previous, you know, visions on fixing the world with AI, hybrid cloud is actually a real problem that you're attacking and it's showing in the results. Agreed. Oh, yeah. All right, last question for you guys because it might be kind of fun. Ten years from now, we're at another, we're sitting here, we all look the same. Time has passed, but we are not aging, which is a part of the new technology that's come out in skincare. That's my, I'm just throwing that out there. Why not? What do you guys hope that you can say about the partnership and your continued commitment to community? Oh, that's a good question. You go first this time. Yeah. I think, you know, for looking into the future, you need to look into the past. And Amazon has always been driven by working back from our customers. That's like our key tenant principle number 101. A couple of people have said that on this stage this week. Yeah, yeah. And I think our partnership, I hope, over the next decade continues to keep that tenant as a centerpiece. And then whatever comes out of that, I think we are going to be working through that. Yeah, I would say this. I think you said that well, the customer innovation is going to lead us to wherever that is and it's going to be in the cloud for sure. I think we can say that in 10 years. But yeah, anything from AI to the quantum computing that IBM is really pushing behind, you know, those are going to be things that hopefully we show up on a partnership with Manu in 10 years. Maybe sooner. Well, whatever happens next, we'll certainly be covering it here on theCUBE. That's right. Thank you both for being here. Joel Manu, fantastic interview. Good to see you guys. Good to see you. Yeah, brought the energy. I think you're definitely ranking high in the top interviews for the day. We love that. Thank you for having me. Love pleasure. All right. Good job, guys. Not that you're competitive at all and thank you all for tuning in to our live coverage here from AWS ReInvent in Las Vegas, Nevada with Dave Vellante. I'm Savannah Peterson. You're watching theCUBE, the leading source for high tech coverage.