 Live from San Francisco, it's theCUBE. Covering Red Hat Summit 2018, brought to you by Red Hat. Hello everyone, welcome back. This is day two of exclusive live coverage here in San Francisco with theCUBE. We are here at Red Hat Summit 2018. I'm John Furrier, co-host of theCUBE here this week with John Troyer, co-founder of Tech Reckoning and advisory and community development firm, industry veteran. John, great to see you. Now, day two, three days of wall-to-wall coverage at theCUBE.net is where the live stream is. John Keynotes here, CEO of Red Hat up on stage. We were coming yesterday about the new opportunity, expanded margins, expanded product opportunities, portfolios looking good. Red Hat's kind of doing great. So what do they do? They try out all their customers. I love that. Your take on the keynote. It was a nice customer-focused keynote. It's always tough when you have a CEO up on stage. You only have a few minutes to explain what you're doing. But Jim came out there, often these keynotes, as you know, right? They come out and you have a message of fear. Change or die. You're going to have to change. Digital transformation must happen now. Jim actually came out with a blog post today. Very nice. It'll be fun to talk to him about it. About a framework and how to approach this. It involved, you know, configure, enable, engage. So basically a framework that pushes a lot of power down to your people. It's an open source way. It's about transformation, but it's about enabling your workforce to get away from planning and to react to the situation at hand. However it happens in the battlefield, so to speak. And what was the big takeaway for you from a customer standpoint? What were the themes that were they were banging on? What was the core? Speed to market, speed to business value. We talked a lot about that. And then cultural change, training, right? The messages were right, right? Unless IT has enabled itself to do this, the top-down planning is not going to work. On the other hand, the CEO and the exec team has to have supported or it's not going to work either. Yeah. And I think what's exciting to me is I think, you know, Red Hat's kind of humble. I mean, they're very humble. And that's the open source ethos, but they really have a software opportunity. And I want to get your take on this because yesterday we heard all day from IBM and their partners as well as some of the practitioners or customers is that the infrastructure of the next generation cloud scale is changing. The old stacks are 30 years old. In some cases, web, HTTP has been kind of an inflection point. That's the web. And the mobile web I included in that too. But now you have a new infrastructure. Cloud scale, microservices, token economics, blockchain. I love the comment about the easy question, what's your blockchain strategy for the bank? Got a lot of laughs, but it's tongue-in-cheek interesting point. This is the teaser out there that there are new things coming. This is a huge deal for this company. Absolutely. I do think the Keystone, the keynote customers were our large organizations. They're multinational organizations, but they're actually in production in a multi-cloud global scale. And so I think that shows that it's real, let it can be done. I think a few years ago we were talking about multi-cloud as a theory, as a thing we'd like to do. I think they showed that. Today I think it's more about enabling of organizations. We're going to talk about the developer program and open innovation labs and things like that. So it's a lot about enabling IT itself. The architectures though, it's clear that they're working and they're scaling. And I think that is a big shift, an open shift perhaps. Yeah, that's a big open shift going on with open shift as the centerpiece of all the action. Another interesting note, we're going to hear from CoreOS and other folks here in the next couple of days, but to me the big surprise was, in addition to customers having that value, the partners. IBM, big announcement yesterday with Private Cloud and all that good stuff happening there. But also Brendan Burns from Microsoft flew down from Bill, Microsoft Bill going on for their show, to talk about the Azure partnership. So you got Azure and IBM, two huge enterprise customers, partners if you will, with customers aligning with Red Hat. This is a pretty big moment. Yeah, absolutely. Even in the context of just multi-cloud, where your stuff sits, right? Having Azure on board with a managed open shift that they're managing, big partnership. IBM, without being in the best way that this, I mean this in the best way possible, a full of legacy components and a legacy customer dealing with the largest companies in the world. Also on board for containerization of things like WebSphere and the DB2 and their whole cloud private. So I think in the century we'll be talking with, right? Real big enterprise scale stuff going on. And I think that's a sigh of relief for enterprise customers because the old mantra was, kill the old to bring in the new, right? And that was kind of been the tech playbook for disruptive technologies, but with containers and Kubernetes and the role opens just playing. You're seeing these new segments carry a legacy. You don't have to kill the old to bring in the new. You can bring in the new with cloud native and containerize the old and let the life cycle of those apps take their natural course. If they hang around for a purpose, maybe they hang around. If they need to transition, they transition on a new timetable. So the pressure to, quote, rip and replace is really taken away. This is a huge dynamic. This, in my opinion, should create great value for Red Hat. And IBM and Microsoft and others. I think life cycle may be the new deployment, right? In the keynote this morning, T systems talked about letting their automobile partners update apps in the cars in a matter of weeks rather than months or years, right? I mean, car technology traditionally very static, right? And now they're able to do it much faster or Lufthansa also talking about being able to deploy apps, you know, within weeks, right? A massive, back ends say the same, apps out to your customers, basically a customer transformation. I think the waves of innovation in the past and I want to just get your thoughts and reactions to my observation, which is this way that we're looking at now, this modern cloud scale wave, is bigger than all the waves combined. You look at the big waves, I think they got the PC revolution, certainly all that good stuff. But two in particular I want to point out. TCPIP was part of the OSI, the Open Systems Interconnect Standard, seven layer model. It kind of stopped at TCPIP, so four layer four and five, three and four. And so you have that dynamic which created interoperability and networks. Then you have HTTP which created the web which is actually a replacement for old legacy things, direct mail, direct response. The value proposition was kind of distracting the old. So a new way versus an old way and then an interoperability with TCPIP allowed for networks to connect. I think this wave has a little bit of both. You have new way, cloud native, to create all new experiences with software, that cloud scale, token economics is right around the horizon with blockchain which I love by the way. And then you have Kubernetes which brings this interoperability and with containers you have that ability. It sets up the perfect storm for best of the new and interoperating with multiple clouds with legacy. This to me is the first time I've seen clear visibility of that kind of conversation, your reaction. Oh absolutely, new way plus standardization, the economic effect is that IT becomes cheaper and at least becomes more capable at the same price. The things that we're seeing on stage here at this show and the things people are talking about would have taken an army of programmers years to do in years past, right? So that when that economic shift, it's a Givon's paradox, right? It's as a resource becomes cheaper, you use more of it and you can do more with it. This is the best of both worlds, theCUBE, bringing you all the live action here in San Francisco and all the commentary. We're going to have the CEO of Red Hat on today. We'll have the Chief Product Officer on tomorrow, Paul Comear. We're going to get the details, we're going to find out, talk to their customers. Of course, go to thecube.net. And we'll keep them on.com and tech reckoning. Check it out. We're going to bring you more live coverage here in San Francisco at Moscone West for Red Hat Summit 2018. Stay with us for day two of three days of coverage. We'll be right back.