 Live from San Francisco, it's theCUBE. Covering Red Hat Summit 2016. Brought to you by Red Hat. Now, here are your hosts, Stu Miniman and Brian Gracely. Welcome back, we're here at the end of day one of three days of coverage of theCUBE here at Red Hat Summit 2016 in San Francisco. We're at Moscone West here looking right out at the street level, fantastic location, expo halls behind us, everybody's going to do the usual beer crawl between the booths. My co-host for the weeks, Brian Gracely. Brian, is this your first Red Hat Summit? This is my first, yeah, officially first Red Hat Summit, watching for a long time, I've lived in Raleigh, but yeah, first official summit. All right, so Brian, we're at the end of our spring tour. We've been at more shows than I can count, I'm sure Jeff Frick has a number for us. You were at DockerCon last week, we were both at the OpenStack show, I was at the Open Compute show, so lots of open source shows, but this is like, you know, this is the big one, this is the big open source show, so what's your take so far? You know, I think Red Hat always is very good at finding that balance between how much is open source, how much are they promoting community, how much are they promoting innovation, and then how are they turning that into things that, you know, not only they monetize, but become supportable for their customers, and I think they've done that again today. Jim Whitehurst laid out a very good vision for building on the shoulders of giants and communities, and then we look at the announcements today, last week was DockerCon, today might as well have been Red Hat DockerCon, Red Hat Docker Summit, whatever you want to call it, Docker, containers, containers, containers, containers, so they're leading an innovation, they're talking about where they're making contributions, they're talking about how they're helping the community at large. It's a very good message, very strong, broad message. Well, and to be clear, Brian, you said it's open source and everything that Red Hat does, 100% open source, it's not open core, it's not, you know, even from an acquisition standpoint, Jim had a case study in his book, Red Hat had bought a company, and they were like, oh, well, we'll release it and then we'll migrate to open source, and it was like, oh, that didn't go well, right? Today, you look at the acquisitions they're making, companies like Ansible, you know, open source from day one, you know, move things forward, so, and containers, containers, containers. Brian, is Red Hat in the pole position for containers? I read a financial analyst report that said, you know, Docker, good news for Red Hat stock, what's your take on their position? Well, you know, Docker obviously has sort of made the market around simplicity around containers. The trick to that is, it's a weird message from them, a message to developers, developers love the simplicity of Docker. The operation of containers is complicated, and I think what Red Hat has been doing around OpenShift and then what they did today in terms of really unifying it, they've said, look, if you want to be Docker at the edge from a developer perspective, that's great, but you know what? We're going to give you choice if you don't want to be using Docker-specific tools, and from an operational perspective, we're going to give you a ton of ways to go be successful. So yeah, I think they are probably neck and neck in terms of, you know, driving things in the community, giving customers a breadth of choice, and probably even more choices than Docker gives today. Yeah, so we're going to dig in some of the OpenShift stuff during the rest of the week, but the Kubernetes, you know, with Red Hat, last week it was Docker with Docker Swarm, you know, that whole orchestration discussion. I was actually talking to somebody in the booth, and it's like, okay, you know, one, two, three, you know, Docker, Kubernetes, Mezos, where are things lining up? What does the Red Hat news mean for that orchestration battle? Well, Red Hat made a big choice about a year ago. They moved the OpenShift platform from some homegrown technology to using Kubernetes, and that did two really important things for them. One, it got them more towards their community-based things so they could take advantage of what Google is doing in Intel and everybody else. So, you know, again, building on the shoulders of giants, but more importantly, it gave them a platform that's going to scale. You know, one of the interesting things about Docker Swarm, driven around simplicity, scale is a smaller number. Kubernetes is going to let it scale to a huge number. There's a really interesting study that came out from New Relic, who's obviously monitoring customers. They said last year, on average, customers had about 1,500 containers, like in a day. This year it was 45,000 containers. Once people start adopting containers, the number's going to grow like crazy. We're seeing different applications. So, if you don't have scale inherently built into what you do, you're going to struggle long-term. And I think the move that they made around Kubernetes was pretty prescient in terms of looking at where's things going, where do we want to take advantage of that for our customers? Yeah, exciting stuff. So, Brian, you also lived down in Red Hat Country, down in RTP. You know, Red Hat, they're still growing. They're over $2 billion at a great conversation with gym lighters. You know, what would you take as Red Hat as a company, their growth, the culture? Well, I mean, let's put it this way. Forget about, you know, me being in North Carolina and stuff, I think they're a global company. They're in Boston. But, you know, you look at a lot of the infrastructure companies today, hardware-centric, flat to no growth. You look at, you know, public cloud in some spaces is growing 70% year-over-year, other places. Red Hat's been growing 15 to 20, 25% year-over-year. We're seeing this show growing about 20%. And they're doing it all on software. So you think about the trends we talk about. Software-centric, it's open source, it's hybrid or multi-cloud, it's got a developer play. You know, they check a lot of boxes for the things that we say are driving the marketplace. Yeah, absolutely right. If you say, you know, most infrastructure companies, it's like, oh, public cloud, huge threat. I mean, we had a good discussion with Dell. Jim Gunthe was on and said, look, you know, Azure's a great partner, Microsoft, of course, a good partner, and, you know, AWS, how that fits into hybrid clouds fine, but Red Hat has a clear game plan as to how they play not only on-prem, but through public clouds, driving containers. So they're engaged in a lot of the important conversations and most of them, you know, are net positives for where Red Hat can grow. Yeah, I mean, we talk about, you know, there was a study that came out, somebody said, for every dollar that somebody spends on AWS, it's like $3 out of the infrastructure pockets. You know, in open source, that might be every dollar is eight to 10, you know, eight to $10 out of legacy IT. So I think Red Hat feels comfortable with where they are. I think, you know, when we talk to Jim Whitehurst this morning, he felt like he had a very comfortable plan to get them to $5 billion. You know, they're definitely a significant player and I think they're, it's like Jim said, they're having to sort of turn down opportunities in terms of where to innovate. You know, they've got to be very good at executing what they do. Yeah, it's like, you know, in sports, it's like, you know, they're not one of, Red Hat's not the big company there. As Jim said on stage, they're not looking to, in the communities, be the leader, they want to be the catalyst. It's a good message and everything we hear, it's interesting. You talk about most big companies, by the time they've gotten to the size of Red Hat, there's companies that are like, ah, I don't like them. They're, you know, onerous on their licenses, you know, how they're partnering, are they trying to own too much? You know, Red Hat still has a good glow about them. You know, lots of people here at the show having a good time, great vibe, closing remarks. Yeah, I mean, I think about that in terms of where they are. You know, the companies that get a lot of buzz these days. You know, lots of VC funded open source to some extent, but trying to go open core, and as best we can tell, not making any money, or not making revenue at numbers that match their valuation. So, you know, it's an interesting space to be. They're the one company we've always said, they're the Red Hat of Red Hat, right? And, you know, they know how to make money. They're customers, a lot of energy here, customers love them. They're contributing in huge ways in open source. So, you know, I feel like the future is fairly bright for what they're doing. Even at $2 billion versus somebody else's $10 billion. Yeah, absolutely. So, I think we're going to do a wrap on day one here. We got two more days of coverage. Got plenty more customers. We've got the keynotes, both morning and afternoon. Check it all out on siliconangle.tv. Check out wikibon.com for the research. If you hit on Twitter, we've got CubeGems pumping out. If you just do hashtag CubeGems, that is real time content that we're putting out there. Once again, if you're here at the show, come say hi to Brian and me, and thanks so much for watching the Cube.