 from Austin, Texas. It's theCUBE, covering KubeCon and CloudNativeCon 2017. Brought to you by Red Hat, the Linux Foundation, and the Kube's ecosystem partners. Hello everyone, welcome to theCUBE live in Austin, Texas for our exclusive coverage of CloudNative Conference and KubeCon, KubeCon with the Linux Foundation. I'm John Furrier, co-founder of SiliconANGLE Media with Stu Miniman with Wikibon and also covering the developer community. We just came off Amazon re-invent last week. We're now in Austin, Texas for a continuation of the builder theme around this new generation of developers, exclusive coverage of CloudNativeCon and KubeCon, or KubeCon Stu. KubeCon, like Kubernetes, John. Not to be confused with the Kube, of course. When 2018 we're going to do KubeCon, right John? Yeah, so KubeCon is coming. Check for local listings around an area near you. We'll be there. Stu, what a great event. I love this event. It's one of my favorite events. As you know, personally, for the Kube audience out there and who know us, have been following us. We've been growing up with this community. We've been covering the Linux Foundation from the beginning. If you go back to our roots around 2010, we've always been on the next wave, whether it was big data, the converged infrastructure on the enterprise and then Cloud. The Kube is always on the wave and then wave and we called it. We were there when Kubernetes was formed. We were there with the principals. JJ and his team, Kizmatic with Blue Tucker, kind of brainstorming, hey, we should do Kubernetes. And we said then, Kubernetes would be huge. It would be the orchestration that would be the battleground in what we were at the time called the middleware of the Cloud. Turns out that was true. That is happening. Huge change in the ecosystem as containerization with Docker originally starting it and then the evolution of how software developers are voting with their workloads. They're voting with their code and no better place than the Linux Foundation. Let's do your analysis, obviously we're super excited. But there's some dynamics going on. There's a class of venture backed companies that I won't say are groping for a strategic position, are certainly investing in open source, but brings up the questions of the business model. Where's the value being created? What is the right strategy? Do I do services? Do I have a different approach? There's a lot of different opinions and if the customers choose wrong, they could be on the wrong side of history as this massive wave of innovation with AI machine learning is impacting infrastructure and DevOps, it's awesome. We heard Netflix on stage, Stu, what's your take? What's going on here? Cloud native con. Yeah, so John, I love, Dan who runs the CNCF gets out on stage and he says, it's exciting time for boring infrastructure. Maybe too exciting even said. We've been watching this wave of containerization and Kubernetes and this whole CNCF ecosystem has really taken that container piece and exploded beyond this. Really talking about how I build for these cloud native environments. There's 14 projects here. Kubernetes is the one that kicked it off, but so many pieces of what's happening here. John, AWS last week, phenomenal, like 45,000 people. A lot of the real builders, the ones heavily involved in projects are like, ah, I actually might skip AWS. Come to KubeCon, this is KubeCon, this is where so many people we've seen, founders of companies, working on so many projects, large community, great community focus. I know you like Netflix up there talking about culture, big diversity, I think what was it, 130 scholarships for people of diversity there. So really phenomenal stuff. This is where really that multi-cloud world is being built. Yeah, and good points too because that's really the elephant in the room which is the profits and the monetization of developer communities is not the primary, but it's a big driver in how people are behaving. And Amazon, re-invent and this world are parallel universes. You know, it's interesting, you don't see a lot of re-invent hoodies, I wore mine last night, got a couple dirty looks, but this is, you see a lot of Google, you see a lot of Microsoft. John, John, John, we had Adrian Cockruff who was in the keynote this morning. Everybody's saying we're bracing the AWSes here. You don't think that's the case? I think everyone does embrace it. They're the number one, there's really no second place. They're far back, as I said at re-invent, I still stand by that, but you got big players, okay? You got Dan Cohen who basically said on stage, okay, it's about projects, products and profits. And they're putting profits actually in the narrative because they're not shying away from, but it's not a pay to play kind of ecosystem here. It's like saying, look it, the visibility of the cloud is shying the light on the fact that there is an opportunity to create value of which value then can be translated to monetization. And developers like to get paid, no one likes to do things totally for free. That is the scoreboard of value. It's not just about chasing the dollar. And I think I like how the CNCF is putting out the profit saying, look at this real value here in businesses, it's real value in products that come from these projects. This is a new era in open source. I think that's legit. Again, pay to play is a completely different animal. Vendors come in, control the standards, pay, pay, pay, not anymore. Brendan Burns told me last year, Microsoft, no pay to play, Microsoft's got a big platform. They're going to come in and make things happen. Okay, so John, the money thing is a big question I have coming into this week. Dan talked up on stage, there's certified service providers for Kubernetes and there's certified Kubernetes partners. 42 certified Kubernetes partners. For the most part, Kubernetes has been commoditized. Today, that certification doesn't mean that 100% everything works, but it definitely over a short period of time, it will be. If I choose any platform that uses Kubernetes that's certified, I can move from one to the other. It doesn't mean that I'm actually going to make money selling Kubernetes, it's that that's part of the platform or services that I'm offering, and it is an enabler, and that's what's a little different. You think about, John, we tracked for years, open stack, thought where we're going to make money on it, how we're going to make money, even go back to Linux, it's what can be built using this set of tools. Some people have said, is really rebuilding the Linux for the cloud environment, but money is kind of, it's derivative off of it, it's an enabler, it's where I go there. It's a great software. Really, it's true, this is the bottom line here. It's the tale of two stories in the industry. Okay, and the backdrop is this, enterprises are an IT specifically and development teams, platforms are shifting big time. The old, there's an old guard as Andy Jackson said, the new guard. The dynamics are containerization drove, mega trend number one, that turbocharged the cloud infrastructure and gave developers some freedom. Microservices then take it to another level. What it's actually done is changed the two theaters in the industry. Theater one is the vendors that are getting funded, the participants in open source who are trying to create value, and then what I would call the rest of the market. There is an onboarding tsunami of new developers coming in. I'm seeing in Theater one, all the people that we know in the industry, and then I'm seeing new faces. These are people who are going to the light. The light is the monetization and that's the value creation. So you're seeing people here for the first time. You're seeing developers who have a clear line of sight that this community creates value. So that's too dynamic. So the companies that got $100 million in funding from venture capitals, they're trying to figure out can they take advantage of that wave of new developers has been an in migration into cloud native of new developers. And these are the ones that are going to be creating the value, the creativity, the solution and certainly the cultural impact from those solutions will be great. I see a great opportunity. If people just don't get scared and just hold the line, keep creating value, it'll figure itself out. So the evolution is natural and that is something I'm interesting to see. Okay, and John, the thing I'm looking for this week, first of all, when we talk about containers, we talk about this whole cloud native environment, that boring infrastructure stuff, it still matters. Networking has matured a little bit. There's the CNI initiative, the cloud native, I'm sorry, container networking interface, which is approaching 1.0, they're getting feedback here. Second one is storage. Most of these solutions, we really started talking about stateless environments. State absolutely has to be a piece of this. How do we fit data, AI, ML, all these things? Data is critically, critically important. So that needs to be there. And then the new technology that we spent a lot of time talking about at AWS Serverless. And there's actually like a half day track here at this show talking about how all of these solutions, how serverless fits into them. There was a question, does serverless replace this? Because I don't need to think about it. Really a lot of the same tooling, a lot of these usage will fit into those serverless frameworks. So it's not an either or, but really more of an and environment, but definitely something that we expect to hear more of this. John, we've got a phenomenal lineup. I'm super excited to, you know, some of these builders, we've got, you know, big players, we've got startups, we've got authors, we've got a good diverse audience coming on theCUBE. So, and, you know, I know near and dear to your heart, you know, lots of developer talk. A lot of developer talks too. This is a fun time. The commoditization of Kubernetes is actually a good thing in my mind. I think there will be a lot of value to be created. And this really is about multi-cloud you mentioned. All three of the major clouds, and now more, you saw Ali Baba on stage in China. You got a lot more growth. You're seeing that Kubernetes really is an opportunity for Google and Microsoft and the rest of the community to run as fast as they can to create services so that customers can have a choice. Choice is the new, black, that's what's going on. And multi-cloud, not yet here, but certainly on the horizon. And if Google and Azure do not establish a multi-cloud environment, Amazon could run away with it. That's my take, that's my visibility on it. The bottom line is, whoever creates the value. So what I'm going to look for is the impact of the continued Kubernetes commoditization and the new formations do, the new relationships. The existing players like Red Hat are going to continue to kick ass. You're going to start to see new players come in. You're going to start to see new partnerships because the stack is being developed very fast. Sluve announcements for Meteos, Fluent D, Container D, Windows support coming with 1.9 Kubernetes. What's happening is they're running as fast as they can. They're peddling as fast as they can because if they do not, they will be blown away. What's the CUBE coverage here? Kicking off, day one. I'm John Furrier, Stu Miniman. Exciting times here at Cloud Native and CUBECon back after this short break.