 From London, England, it's the Cube. Covering Discover 2016 London. Brought to you by Hewlett Packard Enterprise. Now, here's your host, Dave Vellante. This is HPE Discover 2016, and this is the Cube, the worldwide leader in live tech coverage. About two years ago, maybe now three years ago, John Furrier texted me and said, Jerry Tchend did his first deal, company called Docker. I said, who? Never heard of him. You will. Well, Docker is here. Roger Egan is the Senior Vice President of Sales and Channel at Docker, and a Cube alum, Scott Ramsey is also here. He's with Hewlett Packard Enterprise and runs the worldwide flexible capacity business, and Eric Brown is managing director at Accenture. Gentlemen, welcome to the Cube. Thanks for coming on. It's good to be here. So Scott, let's start with you. It's interesting when I see in your title worldwide flexible capacity. So essentially, set it up for us. You're trying to mimic the attributes of the public cloud on-prem in a hybrid environment, right? Explain that. You know that's exactly right, Dave. So we set out with flexible capacity around about four years ago, and the whole goal there was to give our clients all of the benefits of the public cloud, so the pays you go, you're able to scale up and scale back, different accounting treatments, ease of startup, all of those type of features that customers typically associate with the public cloud, but give of them all of those benefits on-premise, so they had the compliance, the control, the security of an on-premise setup, but all the economic benefits of the public cloud. Since then, we've kind of been adding to our capabilities every six months or so. We've been launching new capabilities. Recently, we launched hybrid flexible capacity with the ability to have an on-premise setup with the ability to overdraft into Microsoft Azure as a hybrid setup, and we're announcing here today, no, we've got a partnership with Docker, so we're going to be launching containers on demand. So one of the key benefits of flexible capacity is it massively simplifies our customer supply chain, giving them real agility around their infrastructure, but what we can do by adding Docker into the whole mix here is give them that microservices agility that Docker brings to the table. And then we've been partnering for some time with Eric in Accenture. They bring a lot of transformation capabilities to us as well, and they've got a lot of features they can bring to our clients in terms of moving to a containerized environment. So when Accenture comes to the table, Eric, you know that it's really hitting mainstream enterprises. I mean, in 2006, when Amazon announced its first public cloud, it was sort of this interesting experiment, and developers sort of hit it. And then the next phase almost was when the economy, you know, tanked, everybody wanted to shift toward operation, you know, OPEX from CAPEX, and now it's really going mainstream. The cloud, especially this year, it feels like mainstream enterprises, CIOs, CEOs have said, okay, it's got to be part of our fundamental strategy, but it's not, the public cloud is not everything. So, but we like the attribute. So what's happening in the cloud world and where do you fit in and integrating all this stuff? Yeah, I think a spot on, we're seeing a huge shift in the cloud world specifically, and you're seeing it become mainstream, and it seems like you can see the market changing right in front of your eyes. We're really excited about the relationship here with Docker as well. We're seeing the conversation and the dynamics around the conversation change. And specifically, as Scott was talking about, we're really seeing the dynamics change around our client's demand to really consume services, if you will, and really come with a buy versus build mentality. So, Roger, we were at DockerCon earlier this year. Yeah, yeah. Great show. Yeah. I mean, it's really, things are rocking. So give us the update from your perspective. Where do you fit in on enabling all this sort of, whether it's sort of mimicking public cloud, on-prem, hybrid IT, whatever you want to call it. Yeah, I mean, this is a perfect partnership for us, right? We've been working with HP, with Docker Ready servers. This is the natural extension of that. But what's happened since DockerCon, since we announced 1.12, we've integrated Swarm and now most recently integrated all of our products into Docker Data Center, is that the demand from the largest enterprises are exploding, and what they look for is they look for their trusted partners to help them deploy this great technology. So that's what they're looking for from us. So what we're seeing is we're naturally being pulled together in these accounts, as they're thinking about hybrid strategies. They'll be thinking about HP, as they're thinking about migrating a lot of their legacy applications and newer applications to Docker Ready and Docker Containers. They're looking to companies like Accenture to go do it. So for us, it accelerates the adoption of the technology, and it takes the risk away as a new technology. You know, if you're a, we're a relatively new technology. The platform is relatively new if you look at Docker Data Center. So having strategic partners like HP and Accenture is huge for us as we move forward. So from a customer's perspective, what does Docker specifically, but containers generally do that say virtualization couldn't do? Can maybe you could explain that to the audiences? Yeah, so I think there's a couple pieces to it. One, the containers really provide, I'll call it speed and agility, similar to what you find in a public cloud space. It really allows the client to get their developers engaged quickly in a much simpler fashion, if you will. On the second hand, it also allows them to start addressing some of Alcaca legacy applications, some of the applications that have been difficult for them to know what to do with. It allows them to put them into a nice, neat package, if you will, a container, right? And allows them to deal with them over time. And then lastly, specifically bringing in flux capacity allows the client to really consume, if you will, the entire solution all the way off the container level and a consumption of public cloud-like economic model. So when you combine all those together, it really allows them to start addressing many of the concerns they have and they're asking for us in the marketplace today. So Scott, you hear of one of the HPE's taglines is the world where everything computes. Compute obviously is, apps are distributed, that's sort of what Swarm's all about, we'll come back and talk about that, but in this whole push toward the intelligent edge and bringing compute sort of everywhere, how does this relationship fit to that sort of future? Well, I think the key for me is if you look at cutting edge technology like Docker and if you think about what actually happens with their customers are probably really curious about that technology, but how do we get into it? And I think what we are trying to do with flexible capacity is kind of figure out an easy on ramp for customers to start dabbling in these new cutting edge technologies. So what we do with flexible capacity is that we give them a no upfront outlay on ramp to getting Docker. They start to use Docker, we work with Accenture to get the kind of the transformation towards that type of new environment and then they just pay for it as they use it. So what we're doing here is providing an easy on ramp for those types of services and the expertise and guidance to allow them to make the changes to this new world. So it's a shared risk financial model, is that right? It's absolutely, we're taking away a lot of the risks from the customers from a financial perspective. Actually, it's really not a shared risk. It's the HPE's risk, essentially is it not? I mean, so how does it work? You install enough capacity based on your assessment of demand. So we work very close with the customers, assess their environment, assess what their future needs are. We install what they need today. We give them headroom to grow into for tomorrow and then as they grow, we meter what they're using and then as they need more, we install more capacity. So we, and they can shrink back down as well. So we give them the ability to consume as they grow with no financial outlay or risk. And HPE does that assessment or Accenture does that assessment? Do you do that together? It's, I would say it's a joint enterprise between us. So we work with a customer. We have our own expertise and Accenture help. So that depends on the client, but yeah, we all bring something to the table. But the capacity planning burden is essentially on the vendor in this situation. And it's your job to make sure the capacity's there if they need it. Is that right? The client capacity lies with HPE in this scenario, right? They are ensuring that the client has enough capacity. They're meeting with the client and talking about how they can provision capacity ahead of demand. So it's a really interesting program. And the customer recognizes this as OPEX on their books. Is that right? Or is it a CAPEX or can they depreciate it, you know, in any way they like it? So that's only up to the client and their accounting treatment. But in today's world, they recognize it as OPEX. And so they treat it as an OPEX accounting treatment, which is also beneficial. Okay, let's talk Docker again. So you basically, if you think about containers, they're virtually in every platform now, because of Linux, so what's next? Well, Windows, obviously, right? So Windows is there for us now. So it was just Linux, now we've announced with Microsoft what we're doing with Windows. And I think as that's come together, we've seen just an explosion in the interest. You know, it's interesting when you think about flex capacity and you think about the work that Accenture's doing. Many of our large enterprise clients who are thinking about hybrid deployments want to pay as you go, right? The legacy model of buying software and hardware upfront is going away. So now we have the ability with HPE and Accenture to be able to accommodate that. I mean, typically you think about that as a way to consume capacity in the cloud, but now you can do it on-prem. And for us, that's great. So we can leverage HPE's monitoring or metering capabilities and Accenture's deployment to go do that. The other thing that's really important that we should know is security, right? End-to-end provenance and security is something that I think is the best-kept secret in Docker, right? And when you know that a client has signed an image, a base image, you know where that came from. You can then scan that and through policy management know where that's going to be deployed and where it's allowed to be deployed is incredibly powerful, right? Very, very important. So what's the best practice there? The world is virtualized and now the world has become a containerized. What's the best practice with respect to virtualization and containers with regard to security? You know, we believe that the ultimate, I think early on, security around Docker was viewed because as a new technology is something that was a problem. Now it's become a strength of Docker. The best practice is integrating notary or Docker content trust at the front end of the application development process. So you know which developer has signed that image and that base image. Scanning it once it goes up into a shared repository of the Docker trusted registry and then through our CAS offering on the back end ensuring that there's policy management at the engine level so that you only have the images run where you want them to run. And that's an amazing amount of granularity of control over application development and portability that we've never seen before in the industry. So this is why we see government agencies, financial services sector, the major industry is taking this on because they believe it actually improves their security position as they deploy new software. Incredibly important. And I want to come back to some examples but just to clear up, a lot of people have the question is what's for pay and what's free in Docker? What's the licensing model? Where do you guys make money? Yeah, we license a product called Docker Data Center which has developer tools, the Docker trusted registry where you store and share images in a trusted way that's integrated into your LDAP and Active Directory in your back end systems. And then we have the universal control plane which is the third pillar of this offering which allows you to then orchestrate, manage, monitor all of those images in a production environment. So that's what we offer today. We license it by the nodes deployed and we either do it on an annual subscription basis or in the case of flex capacity we do it on a meter basis. How are HPE customers taking advantage of Docker today? Maybe we could talk about some examples and proof points. Yeah, let's say that we're pretty early in the relationship now but I think what we're seeing is a huge rise and kind of interest from customers. So at this moment in time, I would say that lots of inquiries, lots of discussion with customers. We've actually got our consulting team kind of helping customers grapple with how do I move from a legacy environment to a containerized environment. So I describe a lot of customers as interested trying to understand and then we'll help them make that transition over from where they are to where they need to be in the future for some of our consulting services. I mean, it seems pretty fundamental. If you're going to deliver cloud-like capabilities on-prem, you've got to have this capability as a staple. Okay, so it's early days. How do you expect customers are going to adopt this? So I expect the customers are going to adopt very similar how they started, I'll call it in the public cloud space, starting small, starting with the development community. And we've already seen that wave kind of come to shore. And then I expect to see the client starts again with I'll call it some of the new development applications and the new work that's coming out. And they're going to leave, I'll call it some of the legacy applications, some of the harder applications, some of the more prickly applications for down the road. With that being said, we're seeing clients that have already migrated many of their legacy applications and upgraded them to the new platform, the new container platform. It's allowed them to be more agile in the marketplace. It's allowed them to upgrade the application and really be able to deliver capabilities to the marketplace in a way they haven't been able to do in the past. So we've seen a handful of clients already head down that path with what I'll call the legacy apps, the legacy space. Roger, what's the, what's Docker's take on the rise of Kubernetes, right? You're seeing some action there. Furrier was at KubeCon a couple of weeks ago. And you know, they've joined the cloud native foundation and you know, they're part of this whole cloud thing too. What's your take on Kubernetes? You know, look, Kubernetes was announced to DockerCon one, right? I was there. You know, you were probably there when we did it. The beauty of Docker is the ecosystem. That's the power of Docker, right? So we believe there should be choice. We believe that swarm is, and the market is, I think dictating this with the uptick of 112 and the integration and the feedback from our customers. That's fantastic. But I think choice for customers is fantastic. And you know, we're collaborating with the entire community. And I think ultimately that's what's helped drive Docker forward so quickly. Incredibly important. And I think, you know, the collaboration that we have with companies like HP, Accenture, the entire ecosystem. If you look at the plug-in architecture of Docker and the number of partners that we have in our ecosystem that are plugged in, I mean, that's the value of Docker. It's not a rip and replace. It's not a pass. It's a cash, right? And the container as a service allows you to have that investment protection that you need moving forward. Batteries included, but swappable. You got it. You know it well. All right gentlemen, listen, thanks very much for coming to theCUBE. Congratulations on the partnership. We're looking forward to getting updates from FutureDiscoverers and other platforms. So thanks very much for coming on. Thank you for having us. I appreciate it. All right, keep right there, buddy. We'll be back. This is theCUBE, we're live from HPE Discover London 2016. Right back.