 Live from Boston, Massachusetts, it's theCUBE, covering Red Hat Summit 2017, brought to you by Red Hat. In 1993, two years before the height of Microsoft's dominance and amidst the sea of Unix competitors, Red Hat was founded. And the company baked over the course of about 20 years and became a dominant open source company and has leading the trend toward cloud and hybrid cloud and containers. Welcome to Boston, everybody. Welcome to Red Hat Summit. This is theCUBE, the worldwide leader in live tech coverage. I'm here with Stu Miniman and Rebecca Knight. My co-hosts for the week, folks. Great to see you guys. Stu, this is your 100th Red Hat Summit. It's only my fourth because it's the fourth of theCUBE, 13th year of the show itself, Dave, but great to be back here in Boston, you know, our home stadium for Rebecca, you and me. So glad to have a little gloomy today, but supposed to be nice weather by the time they take 4,000 of the 6,000 attendees here to Fenway on Wednesday, supposed to be some nice weather. Beautiful New England, Red Hat Summit this week, OpenStack Summit next week, so great to be in the hub. And Rebecca, I felt like, well, first of all, great to be working with you for the first time for us together. I thought the open was right in your wheelhouse. They opened with a video and the theme was can machines think? What did you make of that? So what really strikes me about this conference is that it's about the technology. It's about the new, the digital transformation that Red Hat is helping facilitate all these companies making, but it's also about really reimagining the workplace of the future. And the theme this year is about the individual, empowering the individual. So much of what we're going to hear is about how do we engage developers to make this digital transformation for these companies? How do we give them the tools they need, not only just the technology, but also the change in mindset and the change in behaviors that they need to collaborate with others, not only within their own teams, but within different parts of the organization to make these changes. So Red Hat's been on a tear for anybody who follows the company. They do about $2.4 billion a year in revenue, but more importantly, $3 billion in bookings. What, unlike many companies who are doing a shift from legacy, trying to keep alive their old business and bring up the new business, Red Hat has a number of tailwinds and one of those is subscription business. Take a company like Oracle, for instance, or IBM that's shifting from a model of upfront perpetual license into a subscription model. Red Hat, Stu, has always been there and you're seeing it in the numbers, a billion dollars plus on the balance sheet. Just really great momentum. The stock price is up. What's your take on that? I mean, Dave, we've watched so many companies and technologies where you have this huge wave of hype and then how does revenue go? Does it follow? Does it peak and then does it crash? Linux is one of those kind of slow burn growths. I mean, I remember back, I started working with Red Hat back in 2000 and when I talked to enterprises back then, it's like, hey, are you using Linux? They're like, no, and they're like, wait, Bob in the back corner, he's been using Linux stuff and he's doing cool stuff. And I watched over the next five to 10 years it was the slow growth. It just kind of permeated every corner of what we did. I've mentioned when we do this show, it's like Red Hat, a $15 billion market cap, whatever, but we wouldn't have Google if it wasn't for the Linux adoption in the world today. So much of the internet is based on that and you commented during the keynote, Dave, you look at the developer wave, the cloud wave, containers, the shifting to kind of a subscription model rather than kind of the capex. All of those are things that kind of help lift Red Hat. It's where they're growing. It's why they've had 60 consecutive quarters of revenue growth. Now it's not the 50% revenue growth like some of the cloud guys today or not explosive but steady, solid, their customers love them, great excitement here, great geek show, lots of hoodies and backpacks at the show here and exciting to watch and we've got lots of new technologies and announcements and things to dig into the next three days. Well it's interesting, Rebecca, Stu and I had the pleasure, we were hanging out with some big MIT brains last year in London talking about the second machine age and how humans have always replaced machines or machines have always replaced humans and now it's in the cognitive world and so you see, again, the theme of this morning, a lot of it was AI related and of course the controversy there is that as machines replace humans it hollows out the core of the middle working class but the reality is is that everything is getting digitized and those types of skills are going to be fundamental for growth in personal vocations, the economy. What do you think? I agree completely, I think that really the future is going to be humans and machines working side by side together and I mean last year Jim Whitehurst was up here at Red Hat talking about how so much of what we still need to see from human workers is creativity, is judgment, is thought, is insight and right now machines still aren't quite there yet and the question is teaching machines to think and really having these two beings working together collaborating together and that really is where we're seeing this change. We talk all the time in theCUBE about companies are essentially all companies are becoming software companies Mark Andre since the software's eating the world, Mark Benioff said there'll be more SaaS companies coming from non-tech firms than tech firms and behind all that, Stu, we heard a bunch of sort of geeky technologies today but what are the things that are powering Red Hat's momentum? We talked about hybrid cloud, open source, containers help us unpack all that stuff. Yeah, so first of all, right, what is that next kind of billion dollar opportunity and one of the main pieces for Red Hat is OpenShift. Now, when we first started covering this show it was like, ah, we know about infrastructure as a service and software as a service but maybe platform as a service is where it's going and that's kind of where OpenShift was and today Paz, we said it a year or two ago Paz is kind of Pase where OpenShift is a solution that creates a platform that allows Red Hat to deliver newer technologies as a service. So containers in Kubernetes, I didn't hear Kubernetes mentioned in the keynote but Red Hat is the largest enterprise contributor. It's basically Google, a bunch of independent people and then Red Hat is major contributor Kubernetes helping to drive that adoption that whole next generation application development is where Red Hat is key, that migration to microservices so as we see that transition it was interesting to see kind of the application discussion it was how can we help you build those new apps but then how do we take our existing apps? At the Google show, at this show, at some other shows it's been kind of the lift and shift movement is kind of cool again and not cool because we're doing it's helping to take those legacy applications move them into a more modern era and that's where kind of OpenShift there was like the announcement of the OpenShift.io all the tools they have from Ansible and JBoss all of these open source projects that Red Hat is very much a core part of that are going to help drive that next wave and help drive them. There was an announcement, it was mentioned briefly today I know they're going to talk more about tomorrow but the press release went out about a deeper partnership with Amazon web services I think this is likely going to be the number one thing we talk about leaving the show which is deeper partnership to say my application can live in AWS on OpenShift or it can live in my data center on-premises and still using AWS services with OpenShift so that whole hybrid or multi-cloud story that we build out Red Hat's trying to make a good place why they should be there and extend for AWS because we know that that's the place that they need to compete against Microsoft with all their entire Azure play VMware trying to play that so multi-faceted, really interesting dynamics from competitive standpoint and the opportunity to be billions of dollars of opportunity for a company like Red Hat. Great, we've got to wrap up we will be covering those announcements and others that AWS announcement knocks down all the major clouds now Azure, Google, AWS, IBM, I guess Oracle's left but in China. It's a port Oracle application but yeah. In terms of clouds. All right so keep it right there everybody we'll be back wall to wall coverage here from Boston at the Red Hat Summit here's theCUBE, we'll be right back.