 from 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 host, John Furrier. Okay, welcome back everybody. We are live here. This is SiliconANGLE, media is theCUBE, our flagship program. We go out to the events and extract the Silicon Noise. I'm John Furrier, the founder of SiliconANGLE. My next guest is Todd Moore, who's the Vice President of Open Technology with IBM. Great to see you again. Great to have you back on theCUBE. Thank you again, yeah. We're here live in Silicon Valley. So Silicon Valley is where I live, Palo Alto, where all the action is, center of the universe. You guys are in New York, all over the place, but it's a global economy powered by open source. So that's your world. We've talked about that before. So it's great to see you. We're looking forward to conversation. And me too, me too. And this is my home away from home. I spent like every other week here. Of course, IBM's all over the South Bay, which is phenomenal, great innovation. So first question. What's going on with the blue box? Jesse is, he's flamboyant. He's a shining, he's a showman, you know, if you saw the golf cart wrapped in a little box and see it driving around, I wouldn't be surprised if he shows up with it tomorrow on a trailer. And he's the incumbent winner of Cube Madness. So looking for dethrone him this year, but blue box, obviously a big acquisition. IBM's been doing a lot of these tuck-unders. You had Cloud and a bunch of other companies. This is one of many. What's the update on that? You guys have some news to share on- Yeah, today was a big news for us, right? The press release came out this morning. Blue box has now put themselves onto SoftLayer, which gives them access to the whole network of worldwide network of locations. There are SoftLayer locations. It means that enterprises, no matter where they are, now have access to, you know, private cloud as a service hosted through Blue box. And that's really exciting since you think about the fact that 90 days ago, they just became part of us, right? That's great news for them. Great outcome for his startup, his venture. Great to be part of the IBM family, I'm sure. Like I asked you a question from a customer standpoint. I'm a customer, pretend I'm a customer. Hey, IBM, Blue box, all that's nonsense. All I care about is the platform that works. Yeah, well this is the platform that works. They want a platform that works. So share with us what's going on with those platforms. What are you guys delivering? Obviously, Blue box had success by making it easier to get online. Now with SoftLayer, how does that connect in? So with Blue box and SoftLayer, what is the benefit to the customer? Yeah, so the clear benefit was it extended Blue box's reach. Actually, Jesse's not here right now because we put him on a plane and put him around the world. He'll be here around one o'clock I think and we moved his talk till tomorrow. But because it's exactly that, it's now worldwide. It's access, it's easy access to the data centers. That, you know, it's that reach now so that an enterprise customer, any place in the world, should be able to come and have Blue boxes ease of getting onboarded and ease of getting set up. You know, we've made OpenStack highly configurable, you know, with lots of bells and whistles and switches because we know there's many, many use cases that it can be there. So, you know, the developers have done a great job of building features and functions and things that people use, but it all has to be configured. And, you know, Blue box takes all that away from, you know, the thought process. They make it easy, simple, it gets you up and going quickly and, you know, that's the secret sauce, right? People want that simple experience. So, OpenStack represents a whole new way to go to the cloud and it confuses people because it's like a lot of piece parts and some engineering involved on deployment. You guys certainly make that easier. But at the end of the day, they want to have a situation where the standardization open is critical and open platform is number one criteria. So, how do you guys handle that? That there's a variety of use cases and they all want one-offs, but that might not be a bad thing if you have standardization, we've heard one of the customers- Well, yeah, we're building interoperability. So, you know, if you look at IBM and some of the contributions that we make, whether it's, you know, the core projects and things that we do, obviously, we do a lot of scalability, security, you know, all that whole host of things, storage, et cetera, but then, you know, probably one of the most important projects in OpenStack right now is RefStack, right? The work that we've done to be able to now go have an implementation tested against what we believe are the core capabilities that you have to have and have a test report that says you're passing or not and actually be able to take that data that's going on there and feed it back to the developers so that they know what people are using, what they're not using, what's failing, what's not failing. That's just absolutely powerful. And IBM, that's actually where we've put a tremendous amount of resource and time and effort into doing that. All right, talk about IBM's role in open source. Obviously, you don't give the history lesson. You go back to Linux, big part of making that whole rising tide happen, huge kudos to IBM during those days. Big risk at that time, by the way, huge. AS400 business, you look at all the mainframe and mini computer stuff, you embrace Linux. You actually change the world, it's really amazing. Now you have open source is at the center of the innovation engine. It's a renaissance. It's what, you guys are really right there. You have the history. What's going on with this? Where's the innovation? And talk about the technology and the business model. Where's the innovation on both fronts? Because now, companies are operating in the open, IBM's, HP's, Oracle's, others. It's all out in the open. So I think the innovation is that we all realize that banding together and working on the plumbing together so that we're not competing on duplicating plumbing was a really good thing to go and do, right? OpenStack is probably the best example of that. We see that in Docker. We see that all over the place. Node.js, the other foundation I go and spend a lot of time with, I'm on the border, right? And it's that recognition that as, you know, togetherness, working on the infrastructure, it's something much, much better as a result. It moves quicker. It gets the functionality that you need. It's innovative. It's leading edge. And you can have both the long-term stable world and the innovative things live side-by-side and innovate and do things. And so we're building that model up across many of these open-source initiatives. So Node, Spark, right? IBM is huge into Spark. Yeah, we covered that event. Machine learning is big for us. System ML, we're going to go do that out in the open, together with everybody. Let them learn from us, be part of what we've done and, you know, we're dedicating 3,500 guys. I'm just going to play devil's advocate. First of all, I'm very, been bullish on IBM's messaging. Going back a couple of years when I first sat down with Bob Pacino and others is that, but now it's three years into the direction and it's working. But a lot of people are like, IBM, you guys are crazy. What are you doing going open-source and leaving all your jewels on the floor? You have all this proprietary information, all this technology. Why are you blowing it with open-source? How do you answer that? I don't think we're blowing it with open-source. Obviously, that's a great lead-in for you. Shouldn't say that. So I think that- No, I'm just saying hypothetically, if people say that. I mean, people who aren't informed. But so share the data. Yeah, so what we see is the world's turned upside down. Usually, you were in a situation, you go and you talk to a CIO, a CTO. They were making all the decisions and calling all the shots. And nowadays, you don't find that at all. You find that the user, the developer, has a tremendous amount of power. And they come, they talk to you, they meet up with you in meetups and other things. You show them examples of things working with the technologies that they like. And you have your foot in the door with them, working with them, then coming off and being part of their proof of concepts and sales and other things as a result of that. Completely turned upside down as a result of it. And the investment thesis by the enterprises themselves and service providers, they need more developers. Oh, yeah. So there's really no proprietary market, if you will. I mean, there is small relative to what open is. Can you share some insight on that? So you look at Black Duck Survey. I think they do a really good job. They've been nine years, they've been doing this, right? 20% of organizations would say they ran on open source back in nine years ago, right? 80% will say they do that now. Of those organizations, there's, you know, 50% of them say they got 50% of the developers out working in open source, you know? That's the thing. So that's a tier one citizen now. So open source has moved from an alternative approach to tier one. Tier one. That's what you're basically saying. Survey show that. Okay, great. How do they, what's the next step from there? Service level agreements, SLAs, running big business. You guys have huge customers, banks, oil and gas, you name it, every vertical's got requirements to support. How do you guys take the best of open and bolt on the kind of support as needed? So we built this thing we call the open cloud architecture, right? Open cloud architecture brings all these constellations together of, you know, the various open source projects as well as our products that, you know, obviously go and implement and use those things. But it provides sort of a roadmap for the customer to be able to figure out what they should be worried about and how to go and bring it into what they're doing. And so the cloud standards customer council is a place where over 500 of our biggest customers these days are coming together to have an opinion, write papers, share how they're going and doing these things. So if you look at this, this open cloud architecture has caught on and it's now being used to help drive, you know, SLAs and security and opinions on how the clouds should come together and it's being done out in the open with the cloud standards customer council. So a big impact there as well too. Okay, question I want to ask you is, I asked you, told you earlier it was coming. Yeah, here it goes. Is there really a hybrid cloud market? Is there really a hybrid category? Or is there a market? Is it a mindset? Is it a product? Do people buy private cloud? So I mean hybrid cloud because you have private in public which are known quantities right now and hybrid just seems to be this market, market texture, is there hybrid product or is that an outcome of operating a successful interoperable distributed computing fully manageable dynamic infrastructure? Well, some people want to call it category. I think that, and obviously IBM finds it to be a category to go and sell to but it is somewhat of a outcome that happens. But it happens because you want to have portable interoperable workloads that you can run either on-prem or out in the public cloud. And you want to do it with one infrastructure, one set of tools, one set of single sign-on things that you do around security, all those things because you can then take advantage of the lowest cost best place to deploy where your workloads are. And by the way, we're heterogeneous in the world. All those legacy systems running kicks, cobalt, other things that are there, not going away anytime soon, right? They're there, they're there for a reason. People are putting pretty front ends on them and other things, but you're always going to have to solve for the fact that we live in a legacy world as well as this new cloud world that's going out and evolved. Does that make hybrid be the default? I think it's hybrid default as a result of that. It's a good way to describe customers that it's not a mutually exclusive environment. We'd love to say that the world's going to be cloud only, right, but it's not. It really is. I love when all the questions get come to my new Apple Watch, so all the tweets. Final question for you. Craig Mclucky from Google, product manager on the cloud group, was on theCUBE earlier today and he said, if you force APIification, which I love that word, APIification, kind of like, I don't know, I don't go there. If you try to force API economy into a company too early, you could really damage and taint some of the opportunities that could be coming down. You might foreclose some value. How would you, when we talked about microservices and some other stuff going on, do you agree with that and what would be your comment on that forced APIification? Yeah, so I've been working with Craig actually quite a bit, so and I understand Craig's point. I subscribe to it actually quite a bit and I did so much with OpenStack that we delayed really trying to standardize a lot of things and do the things that we're doing at RefStack because we wanted the innovation to go and settle and happen. So I think there's possibility of doing things too soon. I don't disagree with that, but then there's some level that's required. So things we're doing with the OpenContainer, the initiative that we're doing here, the project that we put into... OpenContainer for OCP, OpenContainer project. It's a work group in the Linux Foundation that we've done, right? That at least sets the stage on the basics of the container, right? Because libcontainers in there and RunC and what's gone on. But then if you look at that, how are we going to manage all that? How are we going to make all that work? You do need to set the APIs there, right? Because you want Mesos and Cloud Foundry and OpenStack and Docker and all the guys that we brought together in that to be able to do portable interoperable container work around and manage those things, right? So there will be APIs that come together and we'll figure out how to do that all together. And that's what CNCF will do for us. I always love when I have good conversations going, I got to get the time next slot, but I want to go a little bit deeper on one more question. Heard a rumor that you guys poached Monty Taylor or he moved over, I won't say it's my word, it's bad. It's a legal term, I guess you could say poaching, but you acquired new talent, Monty Taylor. Cube alumni, I've been on many times. Is it true he's working at IBM? Absolutely, yeah. And you'll be able to see Monty if you're here up on stage with Jesse, which ought to be a trip, right? You know, the two of those guys together make for good showmanship. And yeah, Monty's with us here at IBM and he's enjoying it. And he's in the OpenStack realm? Yeah, he's in the OpenStack realm. We want to scale up the public cloud in a big way and that's what Monty wants to do and that's why he came and joined us. If you look at what he's said on Twitter and other things you'll see. Yeah, Monty, we're big fans of Monty. Great to see you, choir, some great talent. Todd, thanks for joining us. We'll be right back more live from Silicon Valley. This is the Cube in Silicon Valley. We'll be right back after this short break.