 Live 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. Hey, welcome back, everyone. We're live for the wrap-up of day two of DockerCon 2015. This is theCUBE, SiliconANGLE's flagship program. We go out to the event and extract the signal from the noise. I'm John Furrier with Jeff Frick here this week. Stu Miniman was hosting yesterday. We had special guests from Cloudcast, podcast to Brian Grace Lee, did some sub-ins, but great show, we're up to 40 shows this year. We did 60 last year, well on our pace to surpass last year's events, Jeff. And again, I love theCUBE because, one, we go out where the action is, and we talk to the smartest people. We get the stories, we get the data, we share it out to the folks, but this show, like yesterday, Oracle, was awesome. Two seminal moments in the industry happening. Oracle, Larry Ellison standing tall, the Steve Jobs of the enterprise, really pumping on all cylinders, transforming it from the old locked-in Oracle to the now Oracle-enabling really Apple-like. Yes, some close stuff, but that's not lock-in, it's choice. Here at DockerCon, one of the most explosive trends to come along since client server from a software standpoint, really amazing. And that's what I love about theCUBE. And again, great week here, DockerCon, center of the universe. This is changing the software paradigm of the industry. And this is a historic kind of flashpoint because it's the big D in Docker, not the little D emerging. We heard that from Patrick Riley. This is one of the most exciting things happening as someone who studied computer science and software engineering to I've seen come along. It's a complete reversal of software methodologies. This is going to be the biggest software boom in history. I think we're going to see massive explosion and it's all going to happen in a completely new way. That means no one can predict who the winners will be, except the winners themselves. And that's what I love about this model. I just think of it an amazing time, John. We just go from show to show to show. We're very fortunate. We get to cover a lot of shows and it just seems it's like one big trend after another. It was cloud, you know, AWS is just on fire and we've done a bunch of re-invent shows and then suddenly it's big data and it's Hadoop open source projects coming out of Yahoo and Google and everybody get on board. Last week was Spark, right? Hadoop 3.0 faster big data. Now we come here, we come here. The second year of the show, the halls are lined with the whales. This is a completely different way. I love it, you know, kind of an application-centric development of the infrastructure. It's a completely another revolution and they just keep coming in waves upon the shore. Here's what I've learned, Jeff, and I'll share with the audience out there. Over the past year and a half, you start to see the transformation of cloud and you start to see the cracks in the foundation of the legacy vendors. IBM, HP, Dell, Oracle, you name them, Microsoft. And the new rising stars are Amazon. Obviously now Amazon's on everyone's competitive matrix. Oracle yesterday, Larry Ells and IBM fell off the charts. But here's what I've learned. These companies that I mentioned that are legacy, they're not dumb. They're just the products that they sell aren't being bought by their customers. So the smart ones are retooling and what's happening is we're now in an evolution now where Amazon and the cloud, people have been observing and detailing out how to understand cloud technology. So you're seeing the smart companies like IBM. I'm very impressed with Bob Picciano, his team over there. They understand Rob Thomas, Beth Smith, they are smart. I love their strategy. They have IBM fellows that got great R&D, watch out for IBM. HP, they're not dumb, but the customers are not buying their products either. They got to shift. Now they got a little bit more complicated matter that's put in the company in half, a little bit of distraction. But again, the companies that are smart will move faster than the ones that aren't. And that's what's happening now. So the ball is a jump ball. Amazon's leading Oracle, I think, got lucky with engineered systems. They bought Sun Microsystems, not lucky. Larry Ellison kind of knew what he wanted. Some say it was like a prize, I won Sun. He wanted to compete against HP and hardware and IBM, but as it turns out, engineered systems by Oracle was a brilliant move. Cloud comes in, Larry Ellison immediately ports everything to the cloud. That has changed their business model. Unbelievable growth. I love that story at Oracle. And you know, I'm usually skeptical on Oracle because they're so big, but I like their story. But this industry, Oracle, it's not a land grab. They got competition. Right, absolutely. Competitions in this ecosystem. Well, I think Jerry Chin was great. You know, we talked about software defined and he took it to the next level, right? His developer-defined infrastructure. And everyone knows that we're constantly, every show we go to, they're fighting for the attention of the developer. How do we get the developers engaged and excited? But the other thing that's really interesting is that you have this juxtaposition of commodity stuff being good enough. At the same time, you still have specialty custom-built stacks for specific workloads. It is really driven by the workload. We're at system Z. The main frame is repositioned, chugging along, there's an application for that. It's very different than some of the newer Greenfield opportunities and newer apps. But the amount of innovation is spectacular. I mean, the nerd guys that we're on basically are putting data centers in homes, acting as heaters, just shows what can happen when you kind of unbound the limitations and really think from an application-centric world. I just love getting the practitioners on, John. And I think the other one who was terrific, as I go through my notes, was Simon. From Shopify, I said, hey, I got wounds. I got scars. I'm an early adopter. I'm happy to jump on board. We started in January last year, but I got some wounds. It's not all easy. So, but people are still excited to share, they're still excited to share their experience and help the community grow and start to get this stuff going. I think the other thing I noticed is that you're starting to see the integration. And I believe that the people who actually optimize the software for high performance in an integrated way will be the winners. Amazon has telegraphed that. Oracle now is coming in quickly behind it and they're throwing off great margins, great economics. This whole notion of race to zero is complete bullshit. Now what's happening is the margins of the commodity hardware is going down, but the value is shifting to the software. So whoever can optimize the software, Jeff, to my opinion, will win the customers and whether they're selling their own hardware or using commodity, it doesn't matter. Software will trumpet. The money will be in the management software. Money will be in how to do tooling because the use cases are plentiful. That's the value I see. Open source has created this new model where the platform isn't the lock-in. It's going to be open and the value is going to be from the A players who just take the value off the table. Right, so, John, we've been looking to come to the show. We're excited about coming to DockerCon. From your perspective, you go to a lot of shows. What did you take away from today? What's your biggest surprise on the downside and on the upside? My biggest surprise is the open container project and there's why. I am so pumped to see that move even though it's got a little kumbaya, wood stock feeling of it. But here's why I like it. The Linux foundation is involved and also this community is small enough and cohesive enough under the people that are here. They're all cool people having fun but they're also not idiots either, right? They know that if they don't consolidate their mindset, they will get beaten by either another legacy vendor or they'll just miss the market and miss fire on the opportunity. So this feels like what will happen with Linux. Linux was all forked around and then the mini computers was a big thread, it was the Sundays, HP Unix machines. They had to come together or die. So to me, I believe that this is that moment within Docker where no one's saying we're going to come together or die but I think it's a realization that we all win together bigger and there's plenty of beach head. So what are we squabbling over scraps for and over stupid arguments, technical. Let's just optimize on standards because when standards are created, the cost of running software gets lower and lower. That is the DevOps ethos, is bigger fish to fry and the infrastructure side. So to me that is a huge, huge story. And then there's some tactical things like the cross host thing and then the Docker plugins. Again, they're kind of putting lipstick on that in my opinion but it's really about solving the SDN problem which again, will be continuing to be iterated on. So that's the big deal in my opinion. Yeah, the networking story was pretty interesting but it's not by accident probably that theCUBE tomorrow will be at Red Hat Summit and we actually interviewed Solomon last year at Red Hat Summit here in San Francisco. So again, you kind of tied it together with the Linux and what happened with early stage Linux. By accident, we're going to follow the same pattern. What do you think? Yeah, and I think you heard the VP of product, okay, Scott Johnson outline. Look, we're going to have a 12 month SLA. That's huge in this market. To have a 12 month SLA in this market, that's a moving train. That's a pretty big accomplishment. So, you know, Docker has pros they would know what they're doing and I use it as a joke as, oh well, Red Hat's got a 10 plus years on rail which is, you know, decades old in terms of stable. So they have a 12 month SLA on Docker, it's a huge deal. They're going to continue to try to shift that and phase out of longer increments but that is a great deal and that's their goal. They need to get into production and the fact is not everyone's there and that's just evolution. Again, this community's under pressure, Jeff, to go faster because what's happening is the numbers are hitting the scoreboard. Amazon's going to do 10 billion. That's Dave Vellante's forecast. Oracle's got 300 plus million a quarter in cloud revenue and that's just tip of the iceberg. This is a rapidly growing business model in the cloud computing era right now. So, you know, if they squabbling about stuff and whatever they do to slow it down hurts the community. So I think that the implicit protocol inside this community is if you slow it down, you're out. And I think that's going to be ultimately what I'm going to look for. Who's slowing it down? Who's speeding up the progress for frictionless consumption and deployment? And the customers are not going to accept lock-in. That was the other thing that was pretty interesting from Rick and Steve from Orbitz. I asked them, how do you guys navigate in this ridiculously robust world of new technology coming at you as fast as you can? And he said, we're always making sure that if we have to take something out, we can. So they're deconstructing, they're decompartmentalizing, they're adopting new stuff, they're excited about new stuff but they're planning for the shift. And they're really knowing that things are changing so, so fast. There's one other thing I want to mention. I mentioned HP earlier. They have a distraction right now at splitting up the company, but I'm telling you I'm bullish on this one group within HP that has a huge investment in OpenStack. They're doing a ton of work in standards. I think HP's opportunity right now, and they're kind of like the dark horse in all this. I mean, IBM's making their moves. We know what they're straight and narrow is going to be. They're going to build it out real fast. HP's got the open source ethos in OpenStack. So OpenStack and this model's got to come together. I think I would consolidate the software practice within HP under OpenStack immediately and go all in on cloud. I think the fragmentation of HP software and cloud is a little bit fragmented. That is a huge opportunity for HP to get in this game. They're already there with OpenStack right now. So, healing in cloud, great opportunity. And I think they should really look at this. Yep. So, John, it's been a good day, big, good two days. Another day at Oracle, we're coming up on the end of the spring season for theCUBE. We've got a lot of shows in. We're going to head out to Stu and Dave or at Red Hat Summit tomorrow and Thursday. Then we slow down a little bit and repair the equipment, rest the horses. No, keep on pushing. Go, go, go. Go faster. We're excited and the fall's going to be another full schedule. We've got to have a great summer. We're going to see, I've got the big plans at VMworld. Got a huge schedule still, more gigs. Red Hat Summit's next up on theCUBE. Look tonight, tomorrow for tweets. And of course, go to crowdchat.net for all the engagement where you can join the conversation. This is SiliconANGLE theCUBE, signing off here at DockerCon in San Francisco. I'm John Furrier with Jeff Frick and Stu Miniman. We'll be at the next event. Keep on watching. Thank you very much.