 from San Francisco, California, extracting the signal from the noise. It's theCUBE, covering DockerCon 2015, brought to you by SiliconANGLE Media, with special thanks to Docker. Now your hosts, John Furrier and Jeff Frick. Okay, welcome back everyone. We are here live in San Francisco for DockerCon 2015. This is theCUBE, day two coverage of wall to wall action here at the DevOps. Holy Grail, the mother ship of innovation. Docker with all the whales of innovation, big companies, growing companies. This is theCUBE, our flagship program. We go out to the events and they extract the signal from the noise. I'm John Furrier, my co-host Jeff Frick. This week, and we have guest host Brian Graceley coming on by. Great lineup here, Jeff, DockerCon day two. This is a Stu Miniman who was here yesterday hosting at the Flyback Easter Red Hat Summit for theCUBE there in Boston. Again, by coastal, we go where all the action is. Said yesterday, this is the center of the universe for developers, for cloud, for DevOps. And Jeff, you know, was just six years ago that I was part of that Cloud Arati group that got together this handful of half a dozen people in San Francisco, talking about Amazon, talking about the cloud. It was called the Cloud Arati Cloud Club. We helped start that and SiliconANG was born out of that era. Six years ago, six years later, it's no dispute. The numbers are out. Amazon will do maybe $10 billion this year. Oracle pumped out a record quarter of growth, $300 million in cloud SaaS business in one quarter. 24 new announcements. Yesterday we were at Oracle's headquarters with Larry Ellison. The standardization, the app developers, the converge infrastructure. This is the new normal. The cloud era is upon us. Super exciting stuff. Yesterday you were here. What's your take from on the ground yesterday? Well, I was here, but you were at Oracle and it's funny you say it was six years ago since this conversation got started and yesterday, Larry Ellison stood up at the event that you were at yesterday. And I guess we were kind of teasing it at Oracle Open World last year that he anointed the cloud good. So I guess he finished it yesterday. So is that the kind of end of the validation? Does that put an absolute stamp on it that there is no doubt about it? Larry Ellison stood up at Oracle and said it's all about cloud? Yeah, Jeff, this is the bottom line. Right now it's absolutely been validated. Cloud computing has reached the tipping point of a new generation of infrastructure and architecture will change in the infrastructure which will create massive disruption, massive innovation, massive wealth creation. But more importantly, it's also going to have destruction effects. If you are not on the right side of the cloud computing architecture, you will be driftwood. That's wave is coming. And I'm telling you right now, the cloud era is unlike anything we've seen before. You know, the dot com bubble, there was a burst in the economics, but the platform underlying platform technology certainly didn't change. The going back architecturally, the things that are probably similar to cloud has been client server or networking TCPIP where there was radical architectural changes in the infrastructure. When that happens, new things are happening big time. We are on the front end of this new wave in this early days. And what DockerCon represents is that new innovation in the cloud computing, in the DevOps and the developers are absolutely in the driver's seat. So what you're seeing here is a euphoric moment of developer. I call the Woodstock of developers. Tana, I said Kool-Aid on Twitter, but really, you know, acid, molly, whatever drug of choice you want to say these days, this is what's happening. The developers are charged and they're innovating. On the infrastructure side, you're seeing massive disruptions, Dell went private, HP splitting in two. It's not about the servers anymore. It's not about the storage. It's not about the individual components. That stuff is being integrated in. And again, Amazon has proven the way and the numbers are out. This is not about maybe this will happen. It's happened, it's happening, and the developers are clear. This industry is moving really, really fast, as Stu Miniman pointed out. And that's really the story here. This industry has to go faster because when the developers are out there, you got to have standardizations. You got to have commodity infrastructure. It's got to be horizontally scalable. However, it's got to be integrated. So this is what the cost structure and the economics of cloud are doing. And the apps, the run apps, the cost of run apps are reduced with that marginal economic software model in the cloud when you have that kind of standardization. So still a ton of work to do. We're watching it, but this is the bottom line story. This is the real deal, real wealth creation. The VCs are out there. I saw Jerry Chen, Pete Sonsini from NEA, handful of others, those are the two best in the industry right now in my mind in the DevOps. But Jeff, again, Oracle's moves are clearly telegraphing that the main line business infrastructure is changed. And hey, Oracle got lucky. They built engineered systems with the Sun acquisition. Brilliant move by Larry Ellison. And then Larry Ellison was poo pooing the cloud. You know, they were rolling their eyes yesterday when I was saying that, but he got on the bandwagon and he moved really, really fast. So Oracle's combination of engineered systems with that cloud really has got a good story for Oracle. The rest of the industry, it's all about catch up. It's all about standardization. That's really the big story. Yeah, some of the highlights from yesterday. We had Matthew Leventi from Lyft on and I thought his story was amazing and really bringing productivity to engineers like they've never had before. John, when they get a new hire, the guy comes in on Monday at nine o'clock, nine 30s and engineer, not too early. They give him his MacBook Pro. They give him a quick orientation. By after lunch, he's working on tickets. He's expected to push production code before the end of his very first day. That to me is just unbelievable. And he really talked about, you know, we've had Moore's Law and not the specific about Moore's Law, but the Moore's Law effect on storage and flash and networking and all these things. But really, this is kind of Moore's Law for productivity of developers, which is pretty exciting. And just another highlight. Patrick, Shenazon talked about when he was at Netscape. First time he saw Mosaic and thought, wow, this is really a different way to do applications. It's not client server, it's web applications. And he really equates that moment in time to the moment where we are today, which is really a fundamental transformation and really a leading of the apps and the developers building the apps over the infrastructure and really feels like, and you can tell by the mojo, they don't have to go out and try to get developers excited about this, John. The place is cracking. Well, I mean, certainly excitement's there, but the reality of it is that there will be some dead bodies on here, big companies, the big whales, and also the upstarts will not succeed. Some of them will succeed, some won't. But here's the bottom line. Tooling is very important, but also the platform. So you're seeing the big story here at DockerCon about the standardization of the platform. The discussion of the open federation around these new containers, open container platform, put together in literally weeks and days, as Stu pointed out. This is because the industry is coalescing around the fact that run times need to be consistent. Developers need to have a standardization so that don't have to write multiple sets of software so that software running on one platform or one cloud can run on another one. And this is absolutely the key for differentiation and margin expansion. So the business model of this marketplace will come down to, in my opinion, the apps, the management, the orchestration. Everything else is going to be abstracted away with some sort of hard and top. There'll be some winners and some losers. But the end of the day, you can have all the developer productivity in the world, but the margin and the actual business models will not be there unless there's standardization. And the big race is on, Amazon, Oracle, and all the other vendors, even IBM and HP, they're hustling. So this is a speed game. I was, Tim Crawford on CrowdChat was speaking about speed, cutting corners. This is the risk. If the code base is not standardized for developers to have a DevOps environment across multiple sets of the stack, it shouldn't be vertically integrated. It is absolutely the key while preserving the horizontally scalable nature of the cloud. You can have zillions of services out there with virtualization, Kubernetes and whatnot. Bottom line is management software will be the key to success, in my opinion. That's where you're going to see the business model expansion in my opinion, and that's going to be as a result of more and more developer productivity. So developer productivity one, two, standardization, and also the management layer. So, to me, it's an awesome story. This is an innovation cycle. This is a 10-year run. DockerCon is again on the front end of this wave, sets of waves coming in, and if you're a developer, if you're an entrepreneur, you're a venture capitalist, you're an investor, this is a great opportunity. Yes, it's no accident that they picked the shipping container, right, as the symbol for this thing. And the 40-foot shipping container, which again, in and of its own, was an interesting story about how that became the standardized piece of material and the fundamental difference of economics that brought forth. But, John, what are some of the mile posts you're going to look for over the next six months, a year, 18 months, to really demonstrate kind of the uptake that you're expecting? The standardization is one, and the role of the big whales, pun intended, in this Docker environment, you're going to start to see really the war with the war of code bases being factions of code. People don't want to run different sets of duplicate functions on different platforms. This is going to be about a vertically integrated scale. It's about developer productivity, and again, I'm going to see the productivity in the business model. That is going to be the telltale sign, and ultimately, who can replicate an Amazon-like environment in the enterprise, in the service provider market? So developer traction continues, but standardization will be absolutely critical, and I think Ben Gallup said it yesterday, this is all about the community, the community will dictate it. If the open source community flinches and starts to fragment, that will be a very bad sign for this marketplace, and then what will happen is the big whales will take over. I expect Cloud found you to be an integral part of this, and again, they got to run faster. Oracle has an end-to-end solution from the chips to the Cloud on-premise, all together, all working together with their software, the databases optimized for the hardware. This is a game changer, so to me, hardware integration is going to be a long-term play, and I think it's going to be just massive disruption. Super exciting, Jeff. Yeah, well, they made their first move, they opened the Open Container Project yesterday, OCP, not to be confused with Open Compute Project, once for software, once for hardware. They put that together, John, in like weeks, literally weeks in time for this show. So they're moving fast, and you talk about the whales, IBM is here, EMC is here, HP is here, VMware is here, everyone's talking about tighter integration between Docker and AWS. So things are in play, things are in move, we got to go in wall-to-wall again, day two, great lineup today. This is the business model-ish problem, right? This industry needs to move faster than in what it's doing. I wish Tim Crawford was here, he's on the crowd chat, Tim has a great comment, over the next six to 12 months, watch how the big five start to shift into gear, IBM, HP, Oracle, Microsoft, Cisco. Oracle has already set the strategy in motion, Larry Ellison said all the major blocks are complete, now it's just innovation from there. He said something interesting yesterday at the Oracle launch, which I thought Larry Ellison was at his best, Dennis Howlett from his analyst firm also highlighted the same thing, saying Larry was in probably the best form he's seen in many, many years, and it's all about end-to-end, and Oracle has a play, their growth numbers are significant, the customers are consuming cloud, this is a done deal, this is no longer a question of when or how, we already got the moves, it's integrated stacks, innovating down to the hardware levels as much as possible, I expect the hardware vendors to be aggressively seeking biz dev deals, aggressively seeking M&A opportunities with this software market, and if you're a stand-alone storage company like Pure Storage, or EMC, or HP, or a server company stand-alone, you need to really rethink that because this world's changing to end-to-end, so what does that mean? That means there's going to be another Cisco, the next Google is in this room potentially, so super exciting. Exciting times, we got day two coverage here, and we kick off today, John, right out of the gate with Sol and the Hikes, the founder, he's been running all the keynotes, we're excited to get the update from him, and then we've got a full cast of characters, Jerry Chin is coming on from Greylock, obviously he's been playing in this space for a while, really one of the more visionary VCs out there, and we're going all day, Scott Johnson from Docker, so we got it going on, so it's about time to go and get the guests on. We'll be right back after the short break, kicking off day two here at DockerCon live in San Francisco, we'll be right back.