 So we're back here live in Silicon Valley in San Jose. This is the Open Compute Summit. This is Silicon Angle and Wikibon's theCUBE, our flagship program. We go out to the events, extract a signal from the noise. Great event here. Open Compute Summit is the place where they're open sourcing hardware, design and development. Very similar to open sourcing software. A lot of big news. Open Compute was really born out of the whole Facebook revolution because they were so unique in their requirements. They had to have a unique infrastructure that they built themselves and buying hundreds of thousands of servers. Amazon web services in a similar boat. They built their own servers. Google assembles their own data centers. This new trend is going to change the world. I'm John Furrier with Dave Vellante for our wrap up segment. Dave, first one to ask you. Great set of interviews here. Great news. One highlight of the show. You're up on stage this morning during the opening keynote doing a panel with George Sussman of IO, Merck Pharmaceuticals and the executive director, Colin Crawford of Open Compute Foundation. What's your take so far? Day one is in the books. We're moving on tomorrow to open stack event in Mountain View. But put your story together here for Open Compute. What's your take? I mean, I still come back to Amazon. You just mentioned Amazon. It's Amazon's world and we just happen to live in it. The world wants to replicate the Amazon public cloud. And I think a lot of the activity here is designed to do that. So the big question is, I feel, I was saying off camera earlier, I feel like there's a spray and not so much a pray, but you know, they're saying spray and pray. This community is trying a lot of different things. You know, you got the ARM piece, you got their version of converged infrastructure. You got stuff that's going on a Facebook. You now have Microsoft coming into the fray, offering its configuration. So there's a lot of exciting activity going on. Again, at the end of the day, I think they're playing, the whole world is playing catch up to Amazon. Big story here, obviously is the io.com really taking the storm, a stage by storm, Dave, George Slushman, the cioio.com, io data centers, their big booth here. They're filed to go public. We could not get the CEO on here. Facebook is also another big story here. We requested an interview, they declined. Mark Zuckerberg had to bail out. He was here, tried to get Jay, he declined to come on camera. All the Facebook guys pretty much declined to come on camera, so we tried to get those guys on. It's about Facebook, it's about io.com, and it's about Microsoft. And what you see in Microsoft is very interesting. They had big news that they announced that they are donating specifications around their deployments of Azure, their cloud and data center innovation. And Microsoft has built out a very huge comprehensive data center, because they had to, they're huge, and that's not their core competencies. What they're doing is they're donating their reference designs to the Open Compute Foundation, the Open Compute Project. And just overall, Dave, just new additions to the roster, the ecosystem is developing. This is a real deal, and to me it's very similar to the Homebrew Computer Club. I bring that up because just this Saturday I was at the Macintosh 30th celebration anniversary of 1984, the Macintosh, the big evolution, changed the game in the personal computer industry. I believe, Dave, that we are seeing a Homebrew moment going mainstream for the data center. That is now the parts, the freedom to build their own hardware. Having that elusive dream at their fingertips, like the personal computer was, having that mainframe in a small case, that's what's happening here. I think it's a big opportunity. Well, I think you've got, in order, again, coming back to competing with Amazon, you've got to take the hardware handcuffs off. You've got to be able to create a situation where the infrastructure can run any software. It's software-led, we've been talking about that now for quite some time. I think the I.O. story is an interesting one because of scale. We saw George Schlesman's demo on his iPhone, essentially deploying data center infrastructure. He got a clap, the crowd almost roared, partially roared. So that, to me, is interesting because of the scale. I mean, I.O. has massive scale, but the world doesn't know about this company. So how do you compete, John, with Amazon? That's the elephant in the room here. Nobody's talking about Amazon. So we talked about this at Reinvent. You laid out, and I laid out that day, sort of the ecosystem that has to evolve. So I think it's worth revisiting that, John. What's your take on how the world can compete with AWS? We'll have to go back to the takes. I can't remember what I said, but I'll try and see if I can come out the same way. I believe that Amazon is doing things that are so amazing for two reasons. One is, they're commoditizing an existing marketplace. At the same time, they're innovating. And when you see those two things happening at the same time, something special's happening. And that's really one thing that gets my attention immediately. The second thing that's happening is that in the business market, the economics of the value proposition of that kind of configuration of cloud for application deployment is unbelievably, it's falling out of your chair. I mean, people here at Open Computer saying a 70% decrease in cost. I mean, massive, I don't believe those number kind of things on this business side. On the technology side, it's a true enablement of what I call a modern infrastructure. So if you look at the iPhone as a seven-year-old device that's changed the game of connected computers, the internet of things with devices with GE and so on and so forth, the data center, now you have the convergence of these engines. So I believe that a new Ferrari's being built, a new kind of car, the new engine is being specced. And I think that to me is what Amazon's showing. This notion of an integrated stack in the cloud, full DevOps really works. Now, that works for Amazon, I think, but that's a guiding principle. And I think you're seeing the incumbent folks take advantage of that and say, hey, I can do that and do a little bit more because Amazon's not truly ready for the enterprise. So to me, I think Amazon's staking the ground and what they're doing absolutely has changed the game. Maybe look at what IBM's doing with selling off their low-end servers, selling off some other assets and look at what's going on in cloud with VMware Pivotal and OpenStack. You're seeing an alternative to Amazon up here. And that alternative is Open Compute and OpenStack. I think those two come together, okay, more than anything else, more than VMware, more than Pivotal, more than EMC possibly. EMC's got the commercial footprint. Can the organic homebrew data center club truly make the game changing? Can they do it from a scope standpoint? Are they broad enough and deep enough? We'll see. And I think that's ultimately the question that I have, only question I have in my mind is how fast can they move, how broad, how deep and can they move with the market? And that's going to be the challenge. If not, then someone else will pick it up. So I think you're right on, John, that's that white space in the enterprise that everybody's going after. It's like to get the playoffs. You got AWS, you got OCP and OpenStack, you got IBM, HP, Oracle, Microsoft now in the mix with OCP. You need scale, you need a data center OS, you need a development platform, you got to have an ecosystem. I think OpenStack clearly plays a big part in that. You need apps, and as you said, you need an integrated stack with open APIs, and that's how this community attacks the white space in the enterprise. So there's always room for others, right? Amazon by no means has this mopped up, but very clearly they're racing faster than anybody. And I think a lot of the things that we're seeing here are in response to some of the trends that Amazon has set. Here's some of the top stories I'd like to share with the folks out there. Obviously in our own commentary, we were obviously at the keynote, Dave was monitoring a panel. Obviously top news to me is Microsoft's participation. Definitely. Game changing, we were just talking off camera with David Floyer who's all over this. Microsoft declined to come on theCUBE, so we'll get them next time. Well, and I think just to add, we're talking all about Amazon. That changes the game because OCP, you know, according to Amazon's own words, didn't have enough configurations for us, right? We needed more. Now, I don't expect Amazon's going to hop on OCP, but Microsoft makes this platform much more competitive. Okay, so that's Microsoft. We can come back to that if you'd like. It sounds like you want to chomp in on Microsoft. No, I just did. No, I'm happy to. I think Microsoft needs to do this. And I think Microsoft is, I think Microsoft, I've said it on the NPR, Dave. Balmer's last stand, he's still the CEO. You know that, right? He's still there. He's not gone yet. His last stand, earnings were good. Last earnings, they were amazing. They blew everyone away. They're sure dead, aren't they? Billions of dollars in profit, all that stuff. So Microsoft news here is critical. Second big piece, Dave, I want to highlight that's newsworthy that no one's reported on. We will right now, is that the culture of DevOps is moving up and down the stack, down to the network layer. Cumulus was on here earlier. We had the two networking companies. We had Sanjay's company on Flurus Networks. That culture of innovations here, that's a big part of the story here at OpenStack. I mean, Open Compute Summit, and that's key. And three, ARM. The ARM movement is here, it's coming in the enterprise. The notion of software and hardware, DevOps being blurred is gone. That's happening down at the chip level. What Open Compute represents to me is full DevOps hardware type marketplace. And that's the big storylines. In terms of being reported on the internet, our social media dashboard from CrowdChat says, now the top story is obviously the live streaming that's going on here, the cube and the keynotes. The top story really from data center knowledge is the most shared in our network. Open Compute saved $1.2 billion over three years. Big top story. Our story is trending. That's the story about the homebrew. No hardware, what's it called? It's called the new homebrew club. That's trending from Kristen Nicole, from Silicon Angle. Hardware is relevant, freedom reigns. That's very popular right now, certainly getting some momentum. Other top stories are is the ARM, 64-bit from AMD, really huge. Big story, and just the ecosystem. And finally, to put the cherry on top, Mark Zuckerberg showed up. And that was really a surprise and very notable, Dave. Mark Zuckerberg was on stage at Tim O'Reilly, a cube alumni many times. We've interviewed cube, him on the cube. And I think the Zuckerberg presence truly talks about this DevOps culture going down to the hardware level. Because Zuckerberg isn't here just doing PR. He's proud. He's saying, hey, Facebook, we built it for ourselves. Now we're sharing it with the world. Now, certainly he's got his business agenda to spread the love about Facebook and minimize the bad PR they've been getting about people, quote, leaving Facebook. Which, that's like saying Microsoft's going under. Had record earnings. Facebook's not going anywhere. But I think Mark Zuckerberg here highlights the curiosity of the application guys. And George Schleshmann said it on stage in your panel, application will dictate the direction of the data center. Clearly, that's going to happen. And I think Zuckerberg's presence reflects that. I want to talk about ARM. Can you come back to that? Sure. So I've been thinking about this, talking to some people here. ARM as one in mobile. Can we agree on that? It's over. Yes. I mean, volumes are there. Now the question is, can they replicate that success in the enterprise? Can ARM do what Intel did back in the 80s and 90s? Can they get a foothold and then expand? I think Intel's screwed right now. I mean, I got to be really bummed for Intel because I think Intel has opportunity in this area to kick some serious, serious ass in this. And so what I would say is that, I think Intel can get back into the game heavily by just being aggressive and winning the arm in the enterprise. They have to win that battle. No doubt in my mind that they have to win. So I think Intel, it's a challenge and an opportunity, Dave, but I think Intel seriously has to win this. So I was, I agree. I was having this discussion with Floyer and he agrees, and he's written about this, it's over in mobile, arms one. But he believes that Intel is very strong in the data center and will stay strong. And we started to talk about sort of history. Will history repeat itself? And he said, well, if you remember, and he's right, back when Intel was starting to move into the data center, it was IBM, HP with PA risk. You were probably at HP at the time. Sun with Spark. You had digital in all these competing architectures, going all, going after the high end. And they let Intel essentially get away with, remember the land server market, compact, introduce that. And that's how Intel got a foothold with Microsoft. They took that PC mojo in to the data center and it took a long time. Question is, can Intel just essentially squash arm anywhere it goes? So, boom, we'll kill it, we'll kill it, we'll kill it in the data center. Or we'll arm find that foothold and what is that foothold? I think that foothold is web apps. And, Floyer came up with another one, which I thought was interesting, was VDI, obviously for end user computing, where they've already got an affinity with mobile. So maybe that's their foothold. But I think it's going to take a long, long time. I see arm in the data center as doing a, what I've called a spray and pray. It's really unclear where the interaction- Well, it has to be focused. I think Intel has to focus, Dave, and their focus has to come down to, one, really actually executing. Well, Intel, you, okay, go ahead. I mean, they have to have, they have a lot of skirmishes on many fronts, right? So, but I think the enterprise they need to own heavily. But their ecosystem in the data center is very, very solid. Intel has muscle, right? Intel could squash anyone with like a bug. It's just at will. So, let's just put it right out there, right? They're the head of the family. And they got all the neighborhoods covered. Intel, they're on my list. I love Intel, obviously. But it's all about how they focus, right? I mean, if Intel looks at something long enough and just starts marching down that path, it's game over, they're going to win. They got to have the technology and they got to be not afraid to eat their own, meaning cannibalizing a little bit of earnings and then doing the right thing. So, this comes down to classic innovators to limit, Dave. And this is why incumbents get disrupted. Either they execute or they don't. Or they become, if they don't get out from the next wave, they become driftwood. So, the big question for me, John, coming out of OCP Summit, this is my first OCP Summit is, how much of the market are they going after? Are they, you know, I mean, I like to talk about TAM, I like to talk about segmentation. The TAM is huge, right? We know that. It's half a billion, maybe it's a trillion. Oh, sorry, half a billion, it's 500 billion, maybe a trillion. But is OCP positioned to get that fat middle of that TAM? I don't know yet. I'm trying to figure that out. Certainly, Microsoft helps because Microsoft can allow the OCP community to go after many, many more workloads. But prior to the Microsoft deal, I was sort of concerned about that. I still think it's early days. I think that the potential is enormous. But I think a lot more work has to be done in the ecosystem and I think this event is an example of that. Well, this is theCUBE. We're here covering in-depth open compute summit. In summary, I'd just say this is an innovation environment. The innovation strategy is very clear. Bring open source to hardware. And I think that's what they're doing. The traction is significant this year. Ecosystems developing. Big players like Microsoft contributing more and contributing, the architecture is good. We talked to Colin Crawford. They have a good foundation. This to me- Cole Crawford. I called him Colin before, too. Oh, okay. Colin Crawford's somebody else we've had in theCUBE. This is all blending to four years of CUBEs. It's like CUBEs. It's going to be senile by the time we're done with this. So, the notion that what's under the hood is being retooled in real time, it's a reset, like we talked earlier. Reset of hardware. It's going to enable the software-defined trend across the board, cloud, on-premise, Internet of Things, application, orchestration. All aspects of the software innovation strategies are going to be impacted by the physical equipment and physical architectures. What's on the bare metal? What's on the devices? Everything's disrupted. Everything's impacted. Nest thermostats down the road for Google. All this is happening right now. This is why I like it as the homebrew computer club in a modern era. If they were alive today, all these guys were still tinkering around. They'd be here, tinkering around with this silicon and creating their own chips, their own silicon. So, to me, that's the big story. We're excited. Any final parting words you want to share, folks? I mean, your takeaway? Yeah, I mean, I think I don't want to sound negative on OCP. I'm very much excited about the innovations here. And some of the indicators are the fact that ODMs now have such huge traction. We're seeing a major shift in the landscape of the server market with IBM exiting x86. We're seeing the flash disruption come in. We're seeing disaggregation. We're seeing new innovation, particularly with an emphasis underscoring open around networking. So, I think you're seeing this perfect storm of events coming together. It's a confluence of all kinds of factors, openness, new innovation, standardization, cloud. And obviously, there's a data tsunami driving this entire trend. And so, I think, as I say, we're in the early days and there's a lot more innovation to go, a lot more partnerships to be had. The ecosystem's got to evolve. And theCUBE, of course, will be here following it. Okay, this is theCUBE. That's a wrap here from Open Compute Summit. We'll be online tomorrow at the OpenStack Enterprise Summit in Mountain View Computer History Museum. The CUBE Tour 2014 continues. That's a wrap from Open Compute Summit. I'm John Furrier, Dave Vellante, and see you tomorrow.