 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 hosts, John Furrier and Jeff Frick. It goes flagship program theCUBE, where we go out to the events and extract the system of noise. I'm John Furrier, the founder of Silicon Ames. I'm Jeff Frick, general manager of our CUBE and co-host here for the second day of two days of live coverage. Again, wall-to-wall coverage in Silicon Valley. And this is the OpenStack community in the Valley. A lot of companies are here, more companies than end users. And it really is a combination of people looking to see what other people are doing and looking for the leaders to kind of demonstrate the successes that they're having. And yesterday, we talked with a lot of folks, Lou Tucker, we talked to IBM, we talked to HP, talked to some of the thought leaders in the cloud space really about the race to compete with Amazon web services in the enterprise. So Jeff, I want to get your take on today. We have a great lineup. We're going to hear from Intel and Mirantis. Mirantis recently secured $100 million investment and we're led by Intel Capital. Again, Intel put a big bet on Cloudera in the big data space and now a big bet on Mirantis. And this is Intel really putting some money in the table. I call it the blind stakes in terms of a poker. You know, the blind is 100 million as an option. And Intel really is going to look at integrating in to the chip set. And I think this is a great deal, similar to the Cloudera investment that Intel did. Phenomenal approach by Intel. People might be skeptical of, hey, they're overpaying. I don't think so. I think OpenStack is a contender. Right now it's at a critical junction in its life. It's at an inflection point. And Jeff, OpenStack really is about that moment in time right now where it is going to either tip the scales for adoption and certainly and or fall back behind the rest of the pack. So I think we're at that critical juncture. We're going to be at VMworld next week. We're going to hear from the rest of the industry but the industry is clearly on a cadence marching towards a competitive position against Amazon web services. And the dark horse in all of this is Microsoft Azure. And you know, again, this is the big game. This is what it's all about. The stakes are high. It's all in on cloud. It's exciting. And a lot of references, John, to the Gartner report talking really about the five options for cloud being AWS, Google, Azure, VMware and OpenStack. And again, we asked the question earlier yesterday, what's the sixth option? If it's not OpenStack, who's behind them? Who's nipping at their heels? And it does seem to be at a critical point because the other piece of the puzzle that we've discussed is all the big players have a horse in the race. EMC, Intel's making major investments to the left and to the right. Cisco's made investments in this space. So everyone's got a horse in the race. And so it seems like the established infrastructure players are at least making sure they don't miss out on this opportunity. And so what's going to knock OpenStack out? It gives you the benefit of the enterprise piece. If you want those big providers and you also get the benefit of openness and some open source so that you don't feel locked in. So they feel like they're in pretty good position but clearly they haven't reached escape velocity I think as Dave Vellante likes to say it still seems like we haven't quite gotten that momentum. Well there's some critical infrastructure that's in place. One of the things that we're seeing in the business right now is that we know the cloud is clearly the deal. And the cloud is powering analytics, it's powering the mobile, it's powering the app workloads which developers are focusing on. But the big opportunity where the game is really at the highest stakes is where the market is converging with software. Software, powering mobile, powering internet of things, powering a real time analytics system. This is the future architecture of the software business, the computer industry. And cloud is the key engine of innovation. This is why we're seeing a disruption in markets like data warehouse, business intelligence, really overpriced bigger fatter systems that were designed in the 80s, 90s and early 2000s now being disrupted by lightweight, simply interoperable systems. And that's where we see things like Kubernetes and the massive adoption of containers by Docker. This is the new normal that the lightweight standing stuff up on the cloud is certainly going to be the preferred architecture. And Jeff, that to me is ultimately the stakes. Talk about self-driving cars. We've got a Google car in the lobby here of the Computer History Museum in Silicon Valley. If you want to make a self-driving car or an Apple Watch work, you need to have software that works across platforms. Software has to have the ability to power those apps or they say workloads across multiple environments. Not just multiple clouds, multiple use cases, mobile, wearables, internet of things, enterprise applications. This is now the cohesive element, the new fabric of software development, a complete change over to the old model. And that's super exciting. Yeah, and we just had a really spirited keynote this morning. I was in here before we came on air, John, and it had their collision from Absara and Shang Liang from Rancher Labs is going to be on later today. And of course, James Waters from Cloud Foundry Pivotal and Adrian Otto who we had on yesterday. And I thought there's a lot of conversations about all these different pieces, the new pieces, the old pieces, how do they fit together? Does it make sense? Where's the security layer? Where's the planes of attack? All kinds of interesting things. But I think their collision made an interesting comment kind of at the end of the panel. And he just said, in five years from now, everything we think that we're talking about is going to be different. The speed of change is so rapid. And even if we look back to 2010 as to where the state of the cloud was compared to where it is, and things are accelerating only quicker. And I always go back to Amar's Law. We talk often about Amar's Law. I still don't think Amar's Law gets enough credit, which is, you know, we completely overestimate the impact in the short term and underestimate the impact in the long term. So we talk often about which inning are we in? But what it feels like, John, is we're constantly starting new games before we even get through the first three or four innings of the game that we're in. So I think still big changes on the way. Clearly, everybody's got a big stake in open stack. Everybody's making big bets. And we got another great lineup today in day two. So I'm excited to get to some of our guests. Boris Rensky is going to be on. Jonathan Donaldson from Intel, who is just on the panel. Cheng Liang from Rancher Labs. Interesting new startup in the space. So that's the other thing I just find so fascinating being here in Silicon Valley. We're right across the street from Google. We're in the old SGI headquarters that could turn into the Computer History Museum. This constant refresh of innovation is really an amazing thing to do. Yeah, and we're going to see the question that I've been asking yesterday. Is there a hybrid cloud? Does that truly exist? Where does that fit in? I see private cloud is certainly something that's solid. Public cloud is out there with Amazon leading the pack. And as it comes together, those two markets come together. Is this a market? Is hybrid cloud just cloud? Is it the new category? Is it just a connector? Is it just a fabric? All these things we're going to ask those questions and we're going to get the response from everyone that comes on theCUBE. What does that mean? And of course, a lot of great guests and some surprises coming on today. Lithium, a company that I've been watching in the social space. Kind of a dark horse. Kind of an old school forums, but have acquired cloud, which is being retooled, Jeff. And that's going to be interesting to hear how they're using the social data. Because as you know, we love CrowdChat. We love the social data. We love the influencer model. We know that there's people out in social and they're really going to make a big change over and that's a big data cloud opportunity. So stay tuned here live in Silicon Valley. It's theCUBE. Of OpenStack Silicon Valley, hashtag OpenStackSV or hashtag OSSV15. Join the conversation. Go to CrowdChat.net slash OSSV15 to join the conversation. We'll be right back after this short break.