 Live from Mountain View, California, it's The Cube at OpenStack Silicon Valley brought to you by headline sponsor, Mirantis. Here are your hosts, John Furrier and Jeff Frick. Okay, welcome back everyone. We are live in Silicon Valley for the OpenStack Silicon Valley, OpenStack SV. Go to crowdchat.net slash OpenStack SV. That's the hashtag. I'm excited to have two amazing guests here to really talk about what's going on in the ecosystem, certainly in the tech business, two tech athletes, Martin Miko is the CEO of Eucalyptus Systems. Now the GM SVP is some big, huge title that's going to report to Meg Whitman at HP for HP Cloud. Martin, welcome back to The Cube. Thanks. Great to see you. Congratulations on the acquisition. And Adrian Ionale, CEO of Mirantis, who's sponsoring us, who put this amazing event together. Thanks for joining us here. Huge demand in Silicon Valley. Obviously, the show is packed 9 a.m. There's no seats in the house there. Huge push here. Why the event and what was the catalyst to pull this all together? I think there's a tremendous need for bringing people together in the valley around the power that the open source cloud can deliver for developers. So if you think about OpenStack, what it actually does, it turbocharges the productivity of software developers. And most of the software developers in the world are actually here in Silicon Valley. It's extremely important to rally Silicon Valley around the power of OpenStack and what it means for innovation in the valley. And since a lot of our customers are here, our friends are here, our partners are here, a lot of our software engineers are here, we thought there would be tremendous demand for having an event that's local here in the valley. Martin, I want to talk to you about, you've been on The Cube before at Amazon re-invent. Obviously, Amazon really setting the standard for commoditizing and innovating with the cloud. And that really is the hallmark of the cloud is get cost down, get functionality up, and OpenStack is on that same trajectory. So I want to get your perspective. You just announced the acquisition to HP, HP's all in on cloud. What does that mean? So I want to get your take. What does that mean? Obviously, you're all in now with HP. What does all in mean? That's pretty much some of the commentary coming from the web. And also the world's looking at HP because they have, they're the big 800-pound gorilla, huge ecosystem, billions of dollars in revenue, great customer base. Now cloud is a centerpiece. I know it's been close to Meg's heart from all the interviews we've done with HP execs. But what does that mean all in? So you were approached, you did the deal. Now you're going to be a leading executive? True. I think we're seeing in the world a complete shift from the client server world over to the cloud world. And you could say it was pioneered by Amazon Web Services. You could go further back and say, Sun had a cloud before that. So there's an evolution and innovation that has happened. Now it has become real. The majority of all large enterprises are building private clouds. And HP is in a unique position to deliver everything you need. Hardware, software, services, and the management of those clouds with the data centers. And there's not really anybody else who can do it at that scale, and with that focus on open source as the key building block. I know Meg certainly has been cloud on her mind for over two years now. It's part of the whole turnaround that she's architecting. How did it happen? She just got a phone call. Pink called you up. I said, hey, Martin, let's get together. Fly up. Have coffee. I mean, how did it go down? Give us some color. Yes, they reached out and said we would like to discuss these things. And when you have a good acquisition happening, there are many benefits you get on both sides, and you must have a meeting of minds. So you say, what's your mind about cloud? And I say, it's open source. And I believe in the public cloud design patterns. And then say, our view is open source. And our view is hybrid. And then I say, as eucalyptus, we've learned that we need to be able to deliver full of clouds, and we are just a software company. And HP is saying, well, we have everything. And then you build up that understanding to a point where at some point you say, OK, we have a deal. We've been watching the HP come back, certainly on the cloud side, from when it was just kind of like a small little group, skunkworks, and then SAR came in, and then all of a sudden they're putting a huge staff behind it. So it's really impressive. We know they're beefing up. They're investing in from a personnel standpoint. But I want to get your take on the open source community, because I notice you made a little reference in your keynote to the LAMP stack. And I weaved it in there. But if you look at with a LAMP stack what they did, and obviously your history of MySQL is well documented in the innovation that that created, just the overall open source penetration, just by the numbers itself, people programming on open source, investments in open source, it's always hitting a new tipping point every year. How does the LAMP stack, that revolution, what that enabled look like, and how does that compare to the cloud opportunity with open stack? Not direct similarities, but still that same enabling opportunity. What's your comments on that? Back 10, 15 years ago when you said open source, you had to explain what it was, and it was a question, what's the paradigm? What's the model? How does it work? Will it run out of juice at some point when people stop being altruistic? And we had to educate people and say, we're not doing it for reasons of altruism. We're doing it for practical reason. That all is gone now. Now people completely accept open source. And if you want to get engineers super excited about something, the code must be open. They don't get excited unless it's open. And that's how you get this massive movement behind it, because they flock around code that's open. So what do you say to developers out there that are like, hey, you know, I love Amazon. I don't trust HP. HP, I've got to put my code in HP, and they have a cloud. They are working hard, but until it's baked out, I'm not going to really move there. Certainly enterprise developers might be attracted to it more than green field developers. But certainly Amazon has won the hearts and minds of developers. You guys are trying to go in there and actually work with them, not win them over, so to speak, but to enable them to be successful. What do you say to those developers about what the opportunities are with HP Cloud? The great thing with open source is when it's all open, you don't necessarily need to think about where it came from, because it's yours. And you can do what you like with it. You can modify it. You can distribute it. You can build your stuff on it. You can take it to somebody else, run it on somebody else's infrastructure. So I don't think there's any issue there. Then, of course, if you need more, HP can provide you with the whole range of products and services. But there's nothing forcing you to take it. You can just download the helium, open stack distribution, get going, build your application, run it on whatever hardware you like. Adrian, you have a perspective on some of the deployment. Obviously, DevOps is now going mainstream, but still people are getting into the deployment side. How do you, to view that, the deployment of open stack and one of some of the recent successes? Well, one of the things that we focused on at Mirantis from the very beginning is how to make the deployment of open stack extremely easy. It's been a challenge for most of the early adopters. And some of the critics of open stack have always been very quick to point out that the deployment is hard and requires a lot of time and effort. But in fact, if you're looking at a state of the industry today, or of Mirantis open stack in particular, you can build an open stack cloud literally within 20 minutes and build up and running in production and deploy workloads. So that's a problem that we have solved. We've invested tremendously in it. And it's helped tremendously with adoption of open stack. So every single day, we have about 20 to 25 companies download Mirantis open stack, deploy it, and put workloads on top of it. That's every single calendar day. So that's a huge, huge leap from where we were, let's say, two or three years ago. So we have a unique interview here because Martin is the key guest, but I also want to bring Adrian. He's kind of co-hosting and also thought leader himself. So you're kind of a hybrid host guest right now. So I want to give you a chance to ask Martin some questions and know you had some things in your mind. So Martin, if you think about the acquisition of Eucalyptus but HP, what do you think are the biggest problems that you're going to have to overcome in order for HP to become a true floors in cloud infrastructure compared to, let's say, people like AWS? I'll be clear that whatever key problems I encounter, I will devote myself 100% to solve them and fixing them. That's what you do as a general manager of a business. So in a way, it doesn't matter what they are. We will sort them out. I think HP has the ingredients for amazing success in that there's a wealth of products to back it up. There is the most amazing team. The recent hires they have made, we have made the people there and the depth of experience is just fantastic. So whatever those challenges are, I know some of them, but let me come out to you and talk to them when I've solved them and I'll show you the results. So related to that, I have another question. One of the unique selling points of Eclipse, which I thought was a brilliant, brilliant move by yourself and your team, was to bolt yourself onto public clouds and to recognize that the future is very much a hybrid future with users wanting to leverage both public clouds and private clouds at the same time. Yet, as an open source company, you very much chosen to bolt yourself onto a proprietary standard to AWS and not, for example, to a public offering that's open source like the HP cloud. So why you've chosen AWS instead of the HP cloud as the cloud to bolt onto? Well, because we are pragmatists at Eucalyptus and AWS had and has over 80% of the market share. So we did that. And when you talk about a proprietary API, let me repeat. It's in the public cloud that the API is private. But in the private cloud, that same API is public. The Amazon API in the Eucalyptus software is completely open source available to anybody as public code. So I could challenge the statement of saying it's a proprietary API. We are showing the opposite. You can take our code and use it for your own deployments. We might. And you might. So and we should, I think to me it's relevant that open source projects many times become reference implementations of an established standard. My sequel was a reference implementation of the SQL standard Apache reference in deployment or reference installation or reference software of the HTTP standard and nearly every successful open source product has replicated a common standard. And we believe that the Amazon design pattern is a common standard, not the proprietary stuff that they keep for themselves, but the stuff that anybody can do and anybody can implement as we are showing. That's what we think there's true value in this. And it's more than just Amazon API compatibility. It's a design pattern, and it's also the behavior underneath the API. And nobody knows it like our team, and nobody has implemented it like the Eucalyptus code. So yes, have it. Download it, deploy it tomorrow, and Mirantis will have an Amazon-compatible offering. You should. I think there's a big market for it. So on that AWS compatibility question, just to kind of pivot on that, is it a moving train for you guys? Because Amazon is accelerating every reinvent, this new stuff they're adding to the stack, last year Redshift, Kinesis, certainly their integrated stack. So are you guys keeping up with that? How do you keep up with that? And will you continue to keep up with that? Let me be clear, if a leading cloud vendor is innovating and adding new services, then every player in that space will have to do something of similar value. And the notion of mimic in API makes it faster. You can be a very fast follower. And if you look at what Eucalyptus has done with a minimal team in the past 18 months, it's astonishing. And we are keeping up with that speed. And we can add more services now on top of them, because we've built the primitives. So I actually turn it around and say the only way to keep up with that fast moving train is to mimic the same API, build it on your own, open source, so that everybody can contribute and work together. So use the power of the crowd to use that leverage to get the flywheel going on the source code. Correct. Okay, so question from the crowd, give speaking of crowd, we have Tim Crawford, one of our groupies out there, Tim, good to see you. Question is, HP is a big company. The key will be integration across the ecosystem, period. Can Martin Mikos lead that effort? Martin, can you lead that effort? And then kind of the follow on question you added down there is can cloud be the glue for HP? He thinks so. Their thoughts on integrating across the ecosystem and your leadership vision for that. That's a very good question. I think it was what Adrian asked me as well. How do you in such a large corporation integrate the offerings into something that's consistent and useful for customers? And I see it as one of my central tasks there. I'm very excited about, I think I know how to do it. I'm not underestimating the complexity of it because when you have a large corporation with lots of existing install base and revenue sources, you have to, it's a balancing act of how to do it. But the determination at HP is there. From the top, from the CEO down, there's a very clear determination to go cloud across the whole corporation. I know people are very excited to see you successfully have a great acquisition with HP. You're well known in the industry, certainly in the open source community, so I think it's going to, it's a breath of fresh air, but there's always the critics. I'll be like, what's with HP? So I got to ask you, obviously you have a meeting with Megan, they don't just throw money around because they have been really tight on acquisitions. She is very clear until things get tightened up and acquisitions will not be a part of it, maybe that's happening now. But what was the conversation? What did she say? Martin, go take that hill. Was there a moonshot? Was there a specific directive by Megan, the team, that you embrace and saying we're going to take that hill or what was that, what's the high-level objective? Yeah, there was something like that. There was something like that. It was a private discussion, very fruitful and high energy and we agreed on the main topics and we said, let's go. Let's remove all obstacles and go. I think we didn't use those words, but that was the outcome of an early Saturday morning discussion that we had. And so just for formalities, it's a direct relationship. You're a direct report, two meg? I report two meg with two megs. And Martin will continue to be the CTO for the company. Yeah, Martin is the CTO of the company. He was incubating this and building it up as a service to the corporation and now he's handing it over to me. What are you most excited about in this new role? What are you going to jump in? I always, people like to jump in the deep end and start swimming. Are you going to start in the low end of the pool and work your way to the bigger challenges? What's your strategy? Well, I think there are three key things. I need to really quickly get to know the people in that group, so working with them. The people side is my top priority. My next priority is users and customers and listening to them. And the third priority is the source code. I really believe that when you build technology business, you must go deep into the technology. And in our case, it's open source code. That I, of course, I am not the guy looking at the code but I need to understand and be very clear on what we are doing as programmers and developers and architects. Why are you laughing? Because I was reading the commentary coming in on the crowd chat too. I used the word moonshot. It was no, it was not a nice play to Tim. It was a closer to referencing moonshot. But I mean, there is a huge opportunity and I think one of the things that people want to know now we're here at OpenStack over the years is certainly there's no lack of demand for what OpenStack provides. There's a ton of demand for OpenStack. People are still looking for these reference implementations. You mentioned that that's an open source ethos reference implementation. How are we doing? What is the state of the union, guys? Can you both talk about the state of the union of OpenStack? Where are we in this delivery? Where are the key enablers? And what are the key inhibitors that are slowing it down or what needs to be accelerated? Well, here's what's going well and here's what's not going so well. So what's going well is this tremendous adoption for OpenStack. There are lots of companies in many industry segments more and more deploying OpenStack clouds and working to take advantage of them. Whether it's the service providers, whether it's the web scale companies and SaaS companies and enterprises like Wells Fargo or John Deere or Home Depot and many others, they're all deploying OpenStack. They're very excited about the value that OpenStack can provide. So that's extremely good news. I think a big challenge that still yet very much remains to be tackled is to make OpenStack a lot more appealing to developers because in the end developers win. The reason AWS became so tremendously successful is because it adds enormous value to developers. The reason something like DigitalOcean is incredibly successful is because it's very, very compelling to developers. So at the end of the day, it is extremely important that OpenStack meets the needs of developers as well as or better than any other cloud platform out there. And that's not yet the case. So that's a lot of work that needs to be done there and where the OpenStack community has been traditionally focused so far is enabling a lot of flexibility underneath the stacks, a lot of the plumbing, you can exchange the plumbing, you can have a lot of configurations. So there's tremendous amount of variability and flexibility inside OpenStack, but we as a community have not paid enough attention to making the developer interface, the APIs, as compelling as useful as possible. So there is an enormous amount of work to be done there because at the end of the day, it's all about workloads and developers are the ones that create the new workloads. Yeah, that's interesting. Martin, comment on that, because you mentioned source code is one of your priorities. Obviously that will be near and dear to the developer's heart, but you have a born in the cloud DevOps trend that's exploding, obviously, some of the innovations in the startup and app community, but enterprises aren't necessarily born in the cloud. They're born on premise, but then have to be kind of born in the cloud. So talk about that dynamic of the source code and how do you get the developers pure born in the cloud to IT working with the cloud? That's a very important question. It's relevant to HPS customers because many of them, like you said, they come from Classic IT and we have a product for that side, a cloud product for the Classic IT environment and then we have another one for the native cloud environment and we are helping customers migrate from one to the other and it's a gradual shift. It's not all happening at once. It happens gradually. And we know how to help them go gradually from Classic IT to cloud. Well, we're super excited to have you guys on the queue. We appreciate Adrian co-hosting and co-guesting with Martin Miko, celebrity of the day here. Always great to chat with him. Open source legend, MySQL certainly was well documented. Now we're in a whole new era of the modern developer. Open source is tier one, first class citizen as they say. Great to see you join the ranks of HP. We'll certainly be at HP Barcelona. Maybe have a conversation with you there. And then kind of dig into this new style of IT and see how much cloud is in there. So appreciate it. Adrian, thanks for hosting this great event. This is day one of the OpenStack SV. We'll be covering all day here. This is theCUBE. I'm John Furrier, we'll be right back after this short break.