 It's easy to look back through history and trace a straight line of technological progress to this point Like a freight train of awesome just barreling toward tomorrow land in reality Sometimes change brings struggle, but we keep advancing keep adapting Keep searching for that next thing because exciting discovery feeds the soul To advance at once as one on target on top and on to the next one The next page the next stage to boldly go together as a community Creating the tech of tomorrow with the wisdom of yesteryear Red Hat Summit 2014 What's next? Wow, this is amazing It's incredible to see so many people here. Wow. It's our first time in San Francisco This is our 10-year anniversary of the Red Hat Summit. And so thank you for celebrating it with us This is my seventh summit since I've been at Red Hat and to watch the growth that we've had The interest in Red Hat and as importantly the growth in open source and the interest in open innovations truly extraordinary Raise your hands if this is your first summit Wow That's amazing. Well, welcome. I hope you'll find that that a Red Hat Summit is different than in the other vendor show that you might go to I'm going to talk a little more in a few minutes about our mission statement But our mission statement starts off to be the catalysts and communities of Contributors customers and partners So you are all part of our mission statement I hope that shows through and what we try to accomplish During our summits and so it's phenomenal to have you all here Technology is advancing. It's such an extraordinary rate and I know people say that But in preparing for the summit this year I went back and looked at my keynote from last year and I looked at where things were whether that was with OpenStack or Even with Lennox or so many of the other cloud technologies and I look and think that must be from five years ago The pace of innovation really is exploding and we're seeing it Across technology again, whether that's cloud whether that's big data mobile social, etc It's extraordinary to see the pace of technology and what's happening So the theme this year is advance We want to talk about how we as an industry continue to move forward and I'll talk in detail in a few minutes But when I say we as an industry, it's not what red hats doing It's not what anyone vendors doing and it's not what anyone Users doing it's how together we're going to advance in this industry You know normally on Thursday of the keynotes or Thursday of the summit we get together We talk about the innovation award winners But when we look at how fast technology is changing and the importance of innovation that we're all looking to drive This year we decided to integrate the innovation awards into my keynote and So as you know every year we have a set of categories Where we give innovation awards and those are an infrastructure? emerging technologies Ecosystem and knowledge exchange What we call accelerate integrate and automate and application development And I'd like to highlight some of those winners and what they're doing through the course of my keynote So you'll hear more about those now what we do is those are winners in categories I'm getting ready to show you the names of those winners and congratulate them But over the course of the week you'll have a chance to vote on which of these case studies which of these Users or innovators will be innovator of the year and so you'll have opportunities to vote through the course of the week The winners in those categories are Chris, which is the Center for Railway Information Systems in India then Yang technical University Hennepin home health care OSTL Benario and set us all And again through my keynote you'll hear some videos and some audio of what some of these customers are doing and how they're using Open-source technologies to define their own future infrastructure So again, you'll hear this you'll have an opportunity to hear more about the case studies And I strongly encourage you to cast your votes and we'll see who the winner is Technology today it is truly moving at an extraordinary pace. It's amazing to watch If you just look at the pace of the underlying technologies, you know Moore's law continues to march forward at its Normal pace if you look at Criter's law or butters law that govern basically similar laws for Storage and network they continue to march forward at extraordinary pace I want to argue even more profound is The move we are seeing to all call the industrialization of IT Right as IT moves from being Custom Applications that start maybe all the way down to the chip level, but certainly at the hardware level up through the application As we move from that to common Commodities modular standard infrastructure and applications that are then built to run on that infrastructure we're seeing truly an explosion in The speed and the functionality that we're seeing in applications around us something we've never seen before It's the reason we see things like big data emerge Right no longer is it about building a true custom stack from the bottom up it's about a common infrastructure on which applications can be built and that's leading to just a massive explosion in the speed and pace of innovation and For traditional enterprises, it's now about how do you keep the lights on? How do you run your traditional apps or your kind of stateful? Traditional apps and at the same time tap into the pace of this innovation, right? And when I say innovation, I'm not just talking about technology as you all know and one of things I hope we'll have an opportunity to have a dialogue on through the sessions over the next few days It's not it's about technology, but it's also about systems. It's about processes It's about culture because changing the way we develop and run applications is much more than just the underlying technologies I Ended my keynote last year by making the statement a Technology choice today is a choice of the innovation model That you're choosing to build your next-generation infrastructure on and what I was specifically talking about is do you want to build your technology on a Traditional proprietary stack or do you believe in the power of the open innovation model? Do you believe that any single vendor Can do the same as as a broad industry coalition of vendors and users could do together, right? Do you believe that the power of cloud can be harnessed by one company can one company hire an engineering team? CTO and an organization that can guess where all the future of technology is going Or given the rate of change do you want to bet on a vibrant community of people working together of vendors of Users practitioners and visionaries working together and I articulated well that obviously the open innovation model was superior and I want to come back and talk a little bit more through my talk today about How red hat works to help you consume that technology and that's going to be the theme I would like to talk about today, but before I do that I just want to give you one example of what I mean that the power of open innovation I want to so our Our mission statement is to be the catalysts and communities of customers contributors and partners building technology the open-source way I'm going to start off talking about the beginning of that catalysts and communities of customers contributors and partners One of the key things we work to try to do is ensure that the technologies we bring our Technologies that have the richest ecosystem of innovation happening and Just to pick one example that most of you I'm sure have heard of today, but I bet 95 percent of people had of you had not heard of this last year Docker and the power of containers as a new way to build distribute and manage applications I'll be honest When I did my keynote last year, I went back and I went through all kind of detailed notes about what we saw and what we thought We're gonna happen in the future Didn't even know what Docker was at the time and the idea that Container and can take containerization of applications could get the kind of traction that's gotten never crossed my mind Now maybe somewhere within red hat it had crossed someone's mind But it certainly hadn't risen to anything that I'd heard about Over the last less than 12 months that community has gone from zero to over 350 contributors driving a whole new way to develop and deploy applications But the important part here is while red hat didn't predict it What red hat did do is ensure that we've been involved in the appropriate Communities of innovation that are happening and so if you've made a bet on red hat in our technologies You've made a bet not that we can guess where technology is going But that we've chosen the communities of innovation that are occurring and so those things are happening in our ecosystem You'll hear a lot more about some of the things we're doing with Docker and more broadly on containers over the next several days But importantly, it's not red hat running to catch up It's that innovation happening in the open ecosystem and by choosing an open versus proprietary ecosystem You inherit the benefits of innovation that's happening not at red hat, but broadly in open communities around the world Now similar types of innovation are happening Not just in containers, but across most of the major growth areas and information technology So cloud big data You know mobile have a whole new range of of cloud applications And this is not just about the technology. It's also about the methodologies with which these applications are Written and deployed so trends like DevOps or continuous delivery Again, I'm not up here trying to say listen to red hat because we have it figured out That's not the point. The point is be involved in an ecosystem an open ecosystem where Thought leaders where the large site to users and vendors are working together in the same ecosystem to figure that out and You inherit that benefit and that's what we're really working to do now In terms of talking about what red hat brings to the table I'll come back and talk a little bit more about choosing the right Ecosystems of innovation to be involved in But it's also about how do you actually take that innovation and drive it through into your traditional? IT stacks. I have the pleasure of Traveling around the world and meeting with CIOs around the world On you know in talking to them about their key strategic issues And one of the biggest single issues I have is I love all this cool new technology out there but I have a massive infrastructure that I got to run today and These are stateful apps, right? These are traditional scale-up type applications and how do I think about? managing that in the Context of all this change that we're seeing happening out there And you'll hear a lot of analogies in the same ones you hear around the world These are pretty universal, you know, you got to change the tire while the bus is moving or you got to change the engine on the plane while it's in flight and those are good Visual analogies of what's going on. Unfortunately. I've never heard of somebody changing a tire while a bus is Driving or changing an engine certainly while planes in flight But for those of you who didn't raise your hand before you know I'm a little bit of a student of history and I really do try to look back at historical analogs To provide context and lessons learned for today So I couldn't go back and look for historical analogs for Changing a tire or an engine on an airplane But when I thought about what would be a good analog to go back and look at lessons learned for how to take an existing Infrastructure and augment with new Start thinking about transportation systems in cities right a traditional city You have a whole set of logistics associated with running it, but cities are growing and changing and you need to augment and add to it And these are saying well, let me look at what cities have done around transportation and how they've changed over time So the first example I want to talk about I'm gonna take you back a little bit before the industrial revolution here I'm gonna take you back to September 2nd 1666 It's a random date. Well on September 2nd 1666 at a bakery Charles trainers back bakery if you want to I always hate to put name because that's always a signing blame But he's well long since dead. So Charles trainers at his bakery did not put out the fire appropriately This is on putting lane in London The bakery caught fire and over the next just few hours All of London went up in flames known as the Great Fire of London. In fact, it got so hot I thought this was a cool factoid. I love cool fact oids. I'm a geek that way It got so hot that the lead roof of St. Paul's Cathedral literally melted Now why do I bring this up as? Horrific as that was by the way very few people died luckily most people got out But as horrific as that was One could look as an analogy. It's kind of a cool thing to look at How many CIOs have I talked to you say if I just didn't have all this installed base think of the cool things that I could do All right now you have a city with no installed base And at the time there were phenomenal designs that were developed around how London could rebuild with broad-wide vistas With plazas piazzas to rival Paris or some of the great cities of the rest of Europe And for those of you who know something about history the short answer for what happened was King Charles the second said can't afford it We're just gonna rebuild on the existing infrastructure That's actually not quite right. What actually happened is as the plans were being drawn up For how to remodel London in a much more modern open way, which would make it a fundamentally different city than it is today Myriad constituencies arose. How do you handle property rights of people different people thought well if I do this I'm gonna profit a little more doing that and it was expensive. I tell you added it up. It got to be such a hassle that in the end London rebuilt on its existing infrastructure and The congestion taxes and the issues that London faces today are a result now. I love London It's one of my favorite cities But if any of you have been stuck in taxis for hours in London, no, wow, it would have been great if they had done something different What I find interesting about that is how many CIOs do I talk to you say got a brilliant idea? I may be willing to fund it But I have so many different constituencies with a narrow view of the world and in this case the people have property rights or the people who have You know a specific way they thought they were gonna profit on London and the whole thing fell apart and to some CIOs have that same issue right even when given an opportunity to do something in Greenfield the number of constraints and the number of Consistency's to manage is really really hard So now I had my team look and say okay Well, there's a good example most people know about the Great Fire of London But let's talk about a city who's done it really really well because there's got to be some great lessons to learn from a city Who's really done it well Unfortunately have some sobering news for you It was really really really hard to find a city that had done a really good job of managing their existing Infrastructure, but also writing and planning for the future. It's hard And so I'm not up here to say that it's easy. It's difficult It's gonna be difficult for any IT department in the same way to say how do I take running what I'm doing today? But also access the innovation of the future. I did have a city and I have to do have to put it up here because the winner is This is Copenhagen. Is there anybody from Copenhagen here? All right, I see one one person waving their hand So hopefully you'll agree with this if you actually look Copenhagen has done a pretty phenomenal job of Managing growth and building infrastructure. That's pedestrian walkways. That's public transportation That's roadways to really really manage its growth and and its infrastructure So you say well, what did Copenhagen do? Well that other cities have it and I have three hypotheses The first is you may or may not know this Denmark is a constitutional monarchy And I got to tell you I've had a lot of CIOs say to me if I were king I would do blah blah blah and I'd make it work and Maybe that's true, but let's be honest CIOs are rarely kings So the second hypothesis here, this was actually an idea that came from Deepak Avandi from IBM who's speaking next It's gonna be a phenomenal keynote So definitely stick around for that and his logic was well if you think about Copenhagen One of its most prominent features one of its most famous features is Tivoli Gardens And he says well maybe anything that's that anything in infrastructure that that's close to Tivoli Must run well So I'll let you draw your own conclusions on that now in all seriousness only thinking came come up with was Decades of hard work hard work eye on the prize people working together Collaborating trying to drive the new solution There is no simple answer for how you continue to manage the old and move to the new and if any single vendors telling you Here it is and here's the roadmap Be careful And it's not just that it's hard to do in any one case It's that there's no one-size-fits-all in the same way that every city is different Every IT infrastructure is different There is no one proscribed answer for how a company needs to innovate or a way that it can change its own infrastructure on That note let's hear from a couple of our innovation award winners on how they've thought about the problem It's interesting interesting to see a common theme Across these which basically How do you take advantage of that innovation in a world? That's hard to see and at the same time do it in a way where you put it in production That you get the reliability the consistency and the stability that you need this same challenge that I talked about with cities of managing and driving innovation while also continuing to manage and live and Both cost and performance of the existing is something that every enterprise faces All right, how do you predict and deliver against the Changing needs of your user base. How do you determine what? Innovations are going to stick in which ones are going to fade away, right? How do you continue to deliver? existing services while upgrading for the future, right? Basically in short, how do you keep the traffic moving today while you're building the the future? infrastructure you need for tomorrow and It's actually even more difficult today than it was because the innovation. We're seeing is no longer spoon-fed by one vendor Right last year when I talked about the power of open innovation I talked about the power of hundreds or thousands of people working together about how Users massive IT users the Google's and Amazon's Facebook's LinkedIn and Twitter's of the world are driving their own destiny and open source But what I also talked about is those companies aren't writing this code. They're not driving this innovation For enterprise uses they're driving it for their own needs So when you start thinking about How do you drive? How do you think about this level of innovation? How do you build it into your own IT futures when there is no one vendor to go point at and say what's my upgrade path? How do I do this? This is when you truly need a partner who can help you make sense of that innovation and Help you then ultimately drive it into your infrastructure Red Hat strives to do both first help you access or be the innovation be involved in the innovation Catalyze those communities and I want to spend a minute talking about this because I talked a lot about this last year About the power of open innovation, but what I feedback frankly I got back was okay. That's great But what exactly role is red hat playing at it? So we start off with the first point that I started off talking about Our mission statement only focus on the first half to be the catalyst in communities of customers contributors and partners Now what does that really mean what it means is we strive to be involved in the communities Where we find the richest most powerful innovation happening again less of a value judgment about what's the best? Technology and much more of a value judgment from us around what are the best architectures of participation? Now let me talk let me just show you a few examples of that I talked a little bit about Docker which happened in our ecosystem But another obviously great example is OpenStack So OpenStack is a project we got involved with a couple years ago that we really do see as the future of infrastructure as a service and Again, we've become involved. We're by far the largest contributor now to OpenStack But importantly we chose that we became involved in the community and we're working to drive it Less because where we thought OpenStack was two years ago and much more because of the power of the community Users involved vendors involved and in this case, we're looking to bring this to you as an enterprise project Let me take a different one Software to find networking obviously a long-term Area for innovation that holds massive massive potential So in this case, this isn't a product But Red Hat gets involved early in the communities we see with the most Potential so Open Daylight is a SDN consortium that was founded Less than two years ago and already it one interrupts best of SDN Categories and the grand award the best of all categories just a few weeks ago This isn't a product yet But these are areas that Red Hat works to get involved in and starts catalyzing communities Well before we're ever actually gonna deliver a product and as that community develops and as that technology materializes We hope to be good contributors to that project bringing the needs that you have into those technologies and over time If and when it becomes ready and we think becomes robust enough the communities reach to the point then again We can move it to the next level Now let me show you a completely different community one that we don't directly Work with as a product Hadoop Obviously Hadoop is a core core product project in big data and the potential for big data and what can be done with Hadoop is massive So from a Red Hat perspective, we are involved in this community We're involved in the community to make sure we can give you a storage layer that can go beyond Hadoop so you can use your operational store to run Hadoop We're working hard to make sure Hadoop works well with a whole set of middleware tools so you can pull Data in a way that you're this consistent that you're used to from other data sources and importantly We're working broadly with the community to make sure it runs on open stack So when you look at a new project like Hadoop, we want to make sure that you can run it on your next generation infrastructure So again, this isn't a product that we are looking to commercialize It's how we can get involved in communities to serve you in this case It's not to serve you to deliver you a product But it's to serve you to make sure that the other projects and products that you are interested in will work long-term in our infrastructure so That's the first half of what we do ensure that we're involved in the appropriate Communities where innovation is happening so you can confidently know that with a partner at Red Hat We're continually making sure we're involved in the communities that you care about and where the best innovation is happening But there's a second key part of what we do And it's around helping you consume these technologies Don't confuse the innovation model with the consumption model And what I mean by that is when we look at the best innovation communities They're frankly the most chaotic there where you have hundreds or thousands of people Contributing where you have tons of different ideas pulling it ripping it in multiple directions and bluntly some of our competitors Will observe that and use that to sell against open source. They'll say Open stack. There are 20 different distributions of open stack and there are hundreds of people. It's chaotic Yes, and that's why innovation is happening and innovation is happening so quickly We strive to help you Consume those products in a consumable Stable supportable way look at Linux Linux is the single most chaotic open source project out there Thousands of contributors strong opinions pulling at multiple directions hundreds of distributions But frankly Some of the most mission critical Systems in the world run on Red Hat Enterprise Linux stock exchanges trading platforms nuclear submarines Things that are way too mission critical to even virtualize are running on Red Hat Enterprise Linux on top of an Innovation model that's the most chaotic in the world Which is our second part of our mission statement creating better technology the open source way We strive to bring you that level of stability so we can take that the mass chaos and make it consumable for our enterprise customers Let's hear a little bit again from our Innovation award winners their thoughts on how they're consuming red hats technologies If we chose to not innovate We would get swallowed up by the competition Manera in Novos proyectos reliability and security and agility put the end in all uppercase letters and make the font a little bit bigger and bold It underlined it my talisa you got to have all free Open source technology was innovation Faster solution and this process the red hat solutions have provided a cost-efficient scalable and innovative way to allow a unified management of a hybrid environment With red hat and their knowledge and what they bring to the table here I feel we are more than capable and set for the future So what we hear over and over again from our innovation award winners, but more broadly from enterprise IT customers is that Change continues to accelerate and the ability to confidently address that change to continue to innovate But do it in a way and still meet The reliability skin scalability requirements that traditional enterprise customers have is a challenge We are in a once in a decade Paradigm shift and IT architectures and from an infrastructure point of view when we think about those architectures None of us want to be London hate to insult London. I really do love London It's one of favorite cities in the world, but from an infrastructure perspective We don't want to rebuild a new architecture on the same lines That our prior architecture was built You need to manage what you have But you do need to build an architecture that it doesn't able you to change and allows for continuous Improvement that leverages open user-driven innovation like the power mass collaboration and ensures you have access To the latest innovations We don't have all the answers at red hat I'm not up here to say trust red hat will hold your hands will get you through it all But what we are saying is collectively the people in this room and more broadly the industry Has those answers? No one vendor has those answers, right? It's a combination of the visionaries and the practitioners, right? The users the vendors the partners the service providers all working together to bring their components together Which will ultimately figure out this morass of the world we live in in the world We're looking to go to and so we use the term all hands on cloud And it really is going to take the entire industry working together to drive this new change again, there's no one vendor who's Defined cloud computing. It's the very fact that it isn't one vendor that its users and vendors in and Service providers and others working together to bring this this about that means we all need to work together To make this change possible The next few days is exactly about that. It's about participation. It's about having a dialogue and it's about working together Sure, we have a lot of sessions and we have a lot of partners who are doing sessions and hopefully those serve as the catalyst For dialogues that you have, but if there's one thing I can encourage you to do It's meet new people. It's share an idea. Let's get the dialogue started Let's it really truly advance together So with that said I'd like to introduce our next keynote speaker Deepak Avandi I have to say Deepak lives about a mile from where I live in Raleigh, North Carolina But I only see him on a coast normally the west coast so He is a phenomenal partner. He's been a great friend of mine From IBM. This is I think the I don't know the 10th year in a row that they've been our leads Sponsor so please give a warm welcome to Deepak Avandi. Thank you Thank you Jim and you know by the way he mentioned Tivoli so I became the general manager of the Tivoli division And one of the things that teams educated me on is Tivoli There's another bit of trivia here Tivoli spelled backwards is what I love it They told me it's I love it and I love that because what I really believe is life is all about passion Whatever you work on you better be passionate about it and for me another thing that I love is Being here with all of you today at the 10th anniversary of this event because I remember back in now It was 1999. I was actually the first director of Linux strategy at IBM and I still remember all the conversations we were having in our monk as to wait a minute. This thing is free It's developed by open source We don't control what's going on with the OS and people are gonna put this in the enterprise Yep, and the fact that we're here 10 years later I mean 15 14 years later It is just a thrill for me to be here and to be at this event with red hat What I would like to do over the next 30 minutes or so is share with you IBM's point of view as to where we see things going why this partnership with red hat is so important to us and On cloud in particular, how do we see things evolving? So first of all we do studies right every year we talk to CFOs. We talk to CMOs. We talk to CEOs Which factors are influencing your company and your industry the most? And for many many years like you know in the 2006 2007 2008 what we kept hearing is the number one factor Market factors GDP inflation demand How am I going to deal with all these factors right but now last couple years in a row? The CEOs are saying the number one factor is technology It's technology technology is driving a lot of change It's creating opportunities to build a competitive advantage Maybe the only thing that can enable companies to build a competitive advantage And when you think about it Look, I've been in the industry a couple decades. I don't remember a time When there was this much disruption happening all at once Whether it's mobile social, you know all about big data analytics cloud It's all around us and it is creating enormous opportunities for companies to seize a competitive advantage IBM's point of view Three things we are putting a lot of focus on Three things data and analytics is one cloud, which I'll talk about a little bit more and then engagement So first big data and analytics look There is so much data getting generated all I don't have to quote any numbers You've seen all this stuff. There's tons of data Structured unstructured data in motion data at rest You've got data within your enterprise that you could actually analyze to get some insights But there's tons outside your enterprise that particularly when you connect it with the data you have within your enterprise can give you tremendous insights Opportunities are enormous. I would argue in any industry any decision Can be made better through the use of data and analytics and we are seeing proof points happening all over the place so analytics whether it's Descriptive predictive prescriptive or cognitive. I'm telling you the next frontier It's cognitive computing and to me it's because you see use cases every day People can serve customers better. They reduce churn. They do better customer retention. Those use cases are great What I really get excited about is when a partnership with the New York Genome Center And they're gonna work with us to find a better cure for cancer for brain cancer to be precise. Think about it All these physicians there's so much information out there They don't have time to even digest all that stuff let alone make better treatment based on all the latest research We are talking about very very accurate Agenosis and we're talking about personalized treatment treatment based on genetics We are gonna see a lot of new innovation because of analytics then when you talk about engagement think about how all of us buy things today We don't listen to advertising as much as mention to someone we trust Who reads documentation today if something doesn't work you go online figure it out the way we buy the way we get support and The way we respond when things don't go the way we want them to go Everything is changing but again. It's creating a lot of opportunity for vendors and for companies Five minutes is the response time that people expect We are living in an instant gratification world and this again is creating tons and tons of opportunity And this is where we're putting a lot of investments now. Let's talk a bit about cloud I really wanted to focus a little bit more on cloud for this talk So cloud first of all is open up tremendous. It's opening up tremendous possibilities for business leaders Business leaders are the ones who are at the front lines and also the back office But they need to move with greater speed or you get left behind It could be talking numbers coming out with new offerings You know we keep talking about dev ops, but even in line of business. They got to get something out there It may not be perfect. I don't care. I want to embed analytics I want to learn as I go and I want to adjust I want to adapt I want to constantly tune they got to move with speed They got to move with speed cloud enables them to do a lot of things that before they couldn't do Because now you're in this world of speed and agility and one of the other things we hear Because over the last four or five years. We've built a lot of solutions for line of business marketing We've got because you know again a lot of it through acquisitions and then we added organic capabilities Unica core metrics tea leave demand tech for price optimization adding analytics into everything we do for marketing For for risk officers. We've got solutions. So every line of business HR What we are seeing more and more is line of business would say it you're not moving fast enough for me So I'm gonna go procure some services that I need directly and what we're starting to see is the pendulum shifting So now line of business is telling IT. I still need that speed. I still need that agility, but be the bro Because I don't want to have to deal with governance. I don't want to deal with security I don't want to deal with all these vendor negotiations. So now line of business is saying I got a move at speed But a partner with IT now IT. What's going on with IT? If you look at every IT organization, I'm telling you for the last decade or more They are not seeing their budgets go up through the roof. They're being asked to do more with less 70% of IT budgets are there just to keep the lights on and then they're being asked by line of business move faster move faster. Let's go cloud is opening new possibilities for IT managers. Why? Because of virtualization by the way not just for compute. We're talking storage. We're talking networking like Jim was talking about Software-defined environments software-defined data center enabling you to get greater Efficiencies out of what you have through consolidation and through optimization of your workloads It's freeing up the resources that are enabling you to invest in innovation on The innovation front cloud is enabling you to move with greater speed We'll talk a bit about how you can start composing applications instead of writing from scratch Which brings us to the third key constituent developers Boy, I'll tell you if I had to make a bet over the next several years It's going to be this kingmaker thing coming through developers are going to be more and more of the most important constituent Within an enterprise. They are the ones who are going to decide which technologies get deployed They're the ones who are going to decide which APIs to actually publish and use and consume World is going to move more and more towards developers and again when you think of cloud What they're enabling developers to do is compose applications using API's and what they'll be able to do with DevOps is get something out They don't have the time to wait for 12 months to get a new release out the door You're talking about days and weeks. So now you also need to give a lot of flexibility the whole To some they want to have direct access to the infrastructure whether it's using open stack API's that I'll talk a little bit about Or I just want to compose my application using point-and-click platform as a service all the capabilities and again What we'll talk a bit about is the importance of standards and openness as we move to this world So again our point of view The future is composable business When line of business developers and it work together To move with greater speed just like when we think of composing applications using API's These API's are enabling companies to build new business models to come up with new offerings Really deconstruct their business processes into atomic units that they can then reconstruct for a new business model Every business process is getting instrumented with analytics. So you make better decisions again A lot of this is being dictated by the need to move with greater speed So future composable business now in order to get to compose composable business our point of view dynamic cloud Of course, it's hybrid public private But it all starts with workloads first of all But a dynamic cloud is one that adapts to the changing business needs The ability to move workloads to the environment that is best suited at that given time adaptive responsive hybrid cloud we believe is Critical to a composable business and in order for this to become real Open standards become absolutely fundamental. I Would argue without open standards some of these other things are just not possible and It doesn't matter which layer you're talking about infrastructure as a service platform as a service software as a service All these standards become really important. That's why you see us here at the red hat summit That's why you see us talking about open stack so much, but it's not just that we're talking about for patterns using Oasis and Tosca or Chef not everything has to be, you know Well, the fact or does your standard standards is where communities come together and vendors agree to do things in a standardized way Open stack. We'll talk more about In even things like link data and OSLC when you start talking about DevOps a key part of DevOps is automation But the ability to link a lot of tools together through link data is absolutely critical So we believe that standards will become increasingly important in this space and Then again, what do standards give you clearly to our clients, right? They give you a choice look I've been in the industry for a while, right? I remember I started all my Programming days with Unix. I'm a vi guy. I'm old school. Of course I started back in college with assembler a little bit, but I'm a C and vi guy I Still remember when you know from Unix back in the 90s and tea came along and People said oh, that's it for Unix and tea will rule some of you are probably too young to remember that But then after that came Linux and what I've seen in the industry is when something new comes along the old doesn't always go away The world is heterogeneous and we believe the world in the foreseeable future will continue to be heterogeneous Giving clients choice is really important interoperability is really important and again speed of innovation becomes really important one of the reasons why Linux has done so well is because the rate and speed with which communities innovate are Always going to win compared to a model that is more proprietary Look, no matter how great a vendor is you can only get so many smart people within that enterprise Compared to having people coming together because they want to work on something why I tell you they're gonna win hands down We've seen it happen and we're gonna continue to see it happen going forward. That's why we're such big believers in it in fact Another example of our support for open standards is something that you may not expect open power So this is sort of a chip system software ecosystem Think also when you think of people who are building servers today, who do you think up? You're probably thinking I got you know HP maybe IBM Dell Cisco How about Google? How about Facebook? More and more companies are building custom servers because the workloads that they're running are very different than what we had ten years ago big data analytics So basically open power is a consortium That IBM has formed now we have 25 members Google Samsung and It basically enables you to if you're running if you want to have a custom server Running in a Linux data center open power The ability to custom develop custom servers with the whole ecosystem around it as I said We've got 21 partners already and we've got dozens more that we are in conversations with an example of how open Standards go all the way down to the chip level Now the other area that Jim pointed to is open stack. We think open stack is incredibly important Because it provides you the cloud operating system almost it creates a level of abstraction Between hardware with your compute network storage and the applications that you're gonna run on pop and that Abstraction is really really valuable as you start moving to a software defined world So whether you're running open stack on an on-premise infrastructure or running it out in the cloud It provides you that portability that interoperability that we think is absolutely key And this is another thing that red hat and IBM are very aligned on if you look at the number of Contributions that red hat and IBM are making we're in the top three 85% of open stack implementations on Linux KVM having a big big success in this world and will continue to partner with the communities and with red hat here and you know one thing about Working with open source communities that You know I sort of personally experienced and we saw with Linux over a decade ago That open source to us is all about coming to the communities with humility to say look We want to be a valued member and we want to contribute, right? We want to add value where we think we've got some unique capabilities to Accelerate the innovation So what you see with open stack of course, you know We go in alphabetical orders going from e to f to g now to ice house The number of people working on open stack inside of IBM has gone up sevenfold We're making contributions in the area of security quality and what have you but again our approach With participation in communities is we're like anybody else We have certain assets and some ideas that we want to bring and what I love the most About participating with open communities is the meritocracy the best ideas win and that's why innovation is so much faster In the open world and then we also partner together, right? So when we look at red hat and IBM we go to market There's a lot of clients that buy Solutions that have components from IBM and red hat and there's hundreds of clients out there thousands of clients But an example that I wanted to share with you which I thought was almost interesting You know, it's a German consulting firm a small company That was writing applications for cloud first on a mobile device right Nova tech and They want to you know the application had embedded analytics for fleet of cars and trucks basically for Gas Utilization and for route optimization. It was basically built-in analytics They came to us on a Friday afternoon. They said look I really want to understand the workload create a pattern for it and basically orchestrate this on a cloud So based on a Linux operating environment We've got a product called smart cloud orchestrator, which is built on open stack And it basically does orchestration supporting standards like chef and Tosca and we said knock yourself out 48 hours later They had the pattern defined in Tosca. They had it running on soft layer, which is IBM's infrastructure as a service 48 hours and then a few weeks ago when we had a big conference in Vegas We also announced servicing age, which is IBM's service management offerings as a service running on soft layer And they within a day even had that integrated with their workloads Examples of people moving in speed in this case speed to automate the patterns of how their workload ought to be provisioned and run Another area where we're partnering and putting a lot of focus is power KVM We just announced this there's ability to have KVM take full advantage of power All the multi-threading all the IO all the large memory access Because we think it's really important for people to create these hyper visors on whichever systems you're running on in our case power And we're announcing that is again something that we're collaborating on and pretty excited about that so look at the end of the day The reason red hat and IBM are such good partners is because the belief in the importance of open standards and Open source as the way to accelerate innovation And that's why I'm really here and and I'm really proud for 10 years This event that we're having and for IBM to be the premier sponsor and Again, we're gonna have a great party on Wednesday that I hope you guys Show up and join but again, it's a great event And we are all sort of thrilled to be here with you and at the end of the day If there are a few things that I'll just leave behind with you as far as IBM's point of view We really believe that all the different Disruptions that are taking place right now are creating once-in-a-generation opportunity for innovation and value creation We believe composable businesses where things are headed Dynamic cloud is essential to a composable business and open standards make dynamic clouds a possibility Thank you very much for your time. All right. Deepak. Thank you Alright everyone well As I said earlier on this is our 10th anniversary And we want to do something kind of fun to kick off the 10th anniversary But at the same time We also have things that we know work well and so how do you combine those two Who was here or not here, but at the summit last year in Boston Do you remember the entertainment we had on Thursday night? Was that a fun event I have to say That was a logistical and amazing thing So we were gonna have an outdoor party on Thursday night at the summit and it was pouring down rain Like pouring down rain at the last minute we got a phenomenal venue and we had I have to say probably one of the most fun evenings I've ever had at Red Hat and so To celebrate our first ten years and to think about our future We thought we would start this year by throwing a little party So this is a little bit about the current ten years, but hey here's to the next ten years at Red Hat