 in the computer museum in the heart of Silicon Valley extracting the signal from the noise. It's theCUBE covering OpenStack Silicon Valley 2015. Brought to you by Morantis. Now your hosts, John Furrier and Jeff Rick. Okay, welcome back everyone. We are live here in Silicon Valley. This is theCUBE SiliconANGLE Media's flagship program. We go out to the events to extract the signal from the noise. I'm John Furrier with my co-host, Jeff Frick. Two days of wall-to-wall coverage. Again, OpenStack Summit, I mean sorry, OpenStack Silicon Valley here in Silicon Valley. Of course, one exit down from our office in Palo Alto where it's a computer history museum where all the actions, Jeff, wrap up in the segment on day one, just to wrap up. Bottom line, I think OpenStack has got some momentum. The Silicon Valley one has more Kool-Aid I think than all the shows involved. I mean, given Kool-Aid injection here, the pump up, the hype, Silicon Valley innovation, it's just, it's in the air here naturally to begin with. But now OpenStack is at that point where they need to lap the field. This is the point now where OpenStack needs to throttle it up, break out of the pack, really demonstrate value. A lot of bets are on the table. IBM, Cisco, Intel, a lot of startups looking for that white space to thrive and survive. Starters looking for the M&A. The ones that didn't make it are gone. So this is happening, the developer community is rocking. So in my assessment, again, a continuation of our theme in Vancouver and Seattle last week, it's time to hit the road. Hit the road, speed it, gas it up, take it to the next level. Well, there's a lot of conversations about, there's five cloud platforms, five dominant cloud platforms. Amazon, Azure, Google Cloud Platform, VMware, and OpenStack. So the question is, is OpenStack legitimately in that fifth spot? Which it seems to be, and if not, who's in the sixth that's been at their tail? It doesn't seem to be anyone else out there. And so with that opportunity, it does seem like they can secure it. And what amazes me again, and looking back in the last year since we were here, John, is all the big plays that all the main infrastructure providers have made big bets in this space. They've bought in talent, they've bought in technology, and they seem to be really behind it because this is the way to develop, or to deliver and develop the cloud, the private cloud for the enterprise. Yeah, and we ask all the people that showed up here in the Cube one question, is hybrid cloud legit? Is it real? And we've got a variety of answers, and the consistent answer is, it's misunderstood. You have technical definition, Craig Mclucky from Google really laid out a cogent argument that hybrid cloud really doesn't exist as a product, and that's a collection of tooling and platforms, abstraction layers that create an environment for cross-platform interoperability, extending out seamlessly into the internet of things, also supported by Lutaker on the same front, both technologists, and then others, and other technologists and business people all agree, no, hybrid cloud is the top level category, private and public are subordinate underneath, because ultimately it's about, you don't care what the resource is, that is notion of hybrid cloud. Again, Jeff, I don't think it's a product, it's not a category, there's no one, two, and three leaders yet, because categorically it's all one pie, so I think what's going to happen is you're going to see a convergence of private and public, ultimately under one category, call it hybrid cloud today, but ultimately, the cloud. Well, I think you're right, John, I think if you're the guy that's managing the development in your organization, you need both options, right? You need the public option, and you need the private option, depending on the workload and the application that you're developing, so you need a hybrid, you need hybrid solutions in terms of where you're going to put things and having options and choices, but within a particular workload, those exist in one space or the other, but then I do think there is a connection, there's an interface, there's a way that the private and the public are exchanging information based on the workload requirements, we've seen a lot of promotion with Amazon Direct Connect, I thought it was pretty interesting that Monty was talking about having private clouds inside the same data centers as public clouds in the IBM instance, so now that we have the Direct Connect that doesn't have the street in the middle, in the pipe between the private cloud application and the public cloud application, now we've broken across the street, we're inside the same building, we're inside the same data centers, I like to say, eventually we're going to jump across the sheet metal, and where does that delineation become between the private cloud and the public cloud? The other insight, Jeff, I'd like to share with you and the audience out there is this is a validation of our thesis, Dave and I have talked on theCUBE many times, the dominance of Amazon Web Services continues to impact the big players, Oracle and IBM, here we have IBM folks saying, and we've confirmed it many times, but clearly saying, hey, we're building a big public cloud, they're taking on Amazon directly, with all that trajectory on Amazon, IBM's going to try to move the goalpost and change the game, clearly, Amazon's being taken on directly by Amazon, in Oracle's speech by Larry Ellison at the cloud launch which we covered live, Larry Ellison replaced IBM's name on this chart with AWS, so again, IBM has always been Oracle's key competitor, now it's Amazon, IBM has always looked at the market, now Amazon's in the mix, again, Amazon Web Services is the competitive target because they're taking territory, that's one. The second insight that I would like to share is from Luke Tucker, they asked him the bubble question and what advice he would give first-time entrepreneurs and developers who haven't lived through even the dot-com bubble or any cycle of innovation, and he said, the innovation's so great in the enterprise, if developers focus on the technology, they can write out any bubble. I thought that was the best advice I've heard relative to how to manage the bubble dynamic if you're a first-timer, keep your eye on the technology innovation, not the business and the financial stuff, that'll sort of stuff out, I'm not saying live poor, but don't be making decisions based upon some dynamic in the capital market, so great advice by Luke Tucker, again, legend in the industry. Yeah, absolutely, and I thought it was a great point as well, there's the financial side of the bubble and the unicorns and the billion dollar valuations and all that conversation, and then there's the real rubber meets the road where there is a whole lot of enterprise value being unlocked, I go back to it over and over again, it's kind of like when ERP first came in, when there was just a ton of efficiencies that ERP could wring out of the system and there was a whole another level of value unlocked, with cloud computing, the elasticity, the orchestration, the availability on demand, the not having huge capital investments, you had the VC on talking about how easy it is to do a start up these days, you don't have these tremendous capital demands, I think it is real value, it is a real opportunity and while there may be some bubble valuations in particular instances, at the end of the day we are living through a pretty dynamic and exciting period in the tech industry. The other comments I'd like to share is we had Marantis co-founder on and chairman, talking about the funding, 100 million additional top up of the tank, little dry powder, which is going to be helpful if there's any kind of financial bubble, but moreover the intel relationship, Marantis should absolutely take Marantis to a whole other level, credit to Marantis for having this event, one identifying a big void in the market by bringing an open stack to Silicon Valley and making it not their event, and they bring us in, we're happy to support them here at theCUBE in the second year doing that, huge. He just, Marantis as much as it's clear, they want platforms that work, customers don't care, they want TAPX and OPEX management and workload mobility. The other thing that's interesting is that the cloud native conversation with Google is very important because Craig Mclucky really laid out kind of Google's perspective, and I think Google is a great example of a company that's living cloud native, even with all the stuff and all the tentacles of their products and services from search to Android to the Google X and the moonshots that they're running, Google really has a great position and they have great engineering, so again, that was another great insight, and again, this is all about the enterprise and the enterprise needs new tooling, new technology. So again, Opus stack is poised, I think there's a lot more to do, Jeff, and hearing Vivek Metra from August Capital was the need from App Formix. Entrepreneurs are getting older. I mean, he's been around. I mean, so to win in the enterprise as August Capital's VC general partner pointed out, Vivek, it's not easy. So don't be enamored, you got a prototype, it's act two of the venture development process in the enterprise. He pointed out, I thought was an amazing piece of insight. Vivek from August Capital, great investor, super conversation with him and his portfolio company from SUNY. Again, he's from X, Microsoft Azure. It's an old man's game now, I think, in the cloud. So I'm not going to, I'm too early to judge yet, but maybe the young guns can surprise me. Well, and Madura from Platform 9, a bunch of VMware folks that spun out, saw an opportunity to do it a different way and do it with OpenStack. So they've got enterprise experience, they've been doing it at VMware for a long time and they're another startup. But I do want to just tell everyone, if you haven't watched the Craig McClecky interview from today, watch it, it was very powerful. And I thought the other thing that he said right at the end of his interview, John, is some people are probably skeptical, is get involved with Google open source. You can get involved in their cloud, not necessarily by having to be ad oracle, but you can get involved as part of the open source project. And it's really a fascinating thing to watch. We did open compute project where Facebook is kind of opening the kimono in the way they run at scale. Google's kind of opening the kimono in the way that they run at scale, where these huge scale internet companies are sharing the way that you do this and enterprises are adopting it via the vehicle of open source. Pretty interesting times. Yeah, and Todd Moore, who was the VP of Open Technologies and Open Platforms at IBM, talked about the innovation on the business model. I thought that was very relevant. I'll see Lou Tucker, who we just mentioned earlier, another great interview to watch. But the surprise interview that I wish I had more time to go drill down on was Lisa Marie Nampe from HP. We talked a lot about HP, her book. But one of the things that she's doing that's impressive to me, Jeff, is an area that we're passionate about. That is women in tech, women in leadership, and diversity, and in technology. And I think what she's doing at Open Stack, and she was on the panel in Seattle, is really compelling. So look for a follow up with Lisa Marie on that leadership and women in tech and diversity. We're going to be at the Grace Hopper event coming up, which is going to be in Houston. Huge event, and you're going to see a lot more coverage. Getting a lot of requests. So again, tell us more about what's going on there. Yes, so again, Grace Hopper celebration of women in computing. We hadn't heard of it, John, till last year. We actually got tipped off from a friend at Intel, and it's 10,000 women basically getting excited about technology. And it's not just jobs at technology companies. It's engineering. It's real technology jobs. It's kind of a hiring show. It's also showing the leadership. As you said, it's not just women in technology, but it's women in leadership roles. So we're excited this year to bring the whole cube down for three days of coverage. It's going to be fantastic. If you haven't checked it out, Anita Borg Institute, Grace Hopper celebration on women computing. Unfortunately, if you don't have tickets, I think they sold out in a week, John. So it's on a growth trajectory. But you can watch it live on the cube. We'll be there. That's the middle of October. Yeah, and we're going to be back tomorrow with live coverage tomorrow here at Open Stack. Obviously we've got VMworld next week. We're gearing up for. But remember, go to wikibon.com and check out the research. It's really, really growing fast. I promised Vivek I'd get him some research over the August capital. Take a look at. He was very interested in that. Obviously a lot of startups are already using it. And silkenangle.com, silkenangle.tv for all the footage and all the videos from today. And we'll continue to bring the signal from the noise. We'll see you tomorrow here for day two of Open Stack Silicon Valley. I'm John Furrier with Jeff Frick. We'll see you tomorrow. Thanks for watching.