 Okay, we're here live at the OpenStack Summit. This is SiliconANGLE's exclusive coverage of OpenStack Summit 2013. We are on the ground, it's April. We're in Portland. I'm John Furrier, and we're Jeff Frick, co-hosting. Jeff, we're at the OpenStack Summit. Welcome, this is your second co-host of theCUBE. Thank you, John. We're excited to be here. I actually grew up in Portland, so it's kind of coming home for me, and it's interesting how we did a little research, and I guess this is the fifth OpenStack Summit, so the show is growing. There's a good vibe on the floor. We did a little walk around before we came up, but it's still new. It's still a developer show. It's still people are excited to share information, share ideas, try to really grow the business. So, we're excited to be here. We're going to be here for three full days of coverage streaming live from theCUBE, so we hope you'll join us. The hashtag for the event is OpenStack. Hashtag OpenStack, so we hope you'll jump in and join the conversation if you're not fortunate enough to be here at the show. And if you are at the show, stop by, say hi. We're excited about it. So let's talk about it a little bit, John. OpenStack, it's got a lot of buzz. I look at some of the sponsors here at the show, huge names, big technology vendors. Why are they interested in this OpenStack and why is it starting to get the traction that we're seeing out there? Well, this is SiliconANGLE and Wikibon's theCUBE, our flagship program without the events, and we extract the signal from the noise, and that's our job here, Jeff. We're on the ground to really understand why OpenStack is so important. Obviously, we have our vision. I've been following OpenStack really prior to when it was actually formed, working with Rackspace, going back to 2008 and nine. There was a huge developer push into the cloud, and obviously SiliconANGLE has been covering Cloud Mobile and Social, the first blog to do that since 29, and this is really at an inflection point, and a couple key things are going on, Jeff. One, the marketplace for cloud technologies is so massive right now because it's going primetime, it's going mainstream, in the sense that we're seeing a massive investment for IT technologies and the enterprises, large enterprises, we're seeing a massive investment for service providers, the telcos, people who have large infrastructures, and mainly the transformation is from a scale up concept to a scale out open source revolution, and that revolution of open source, scale out as commodity hardware, or as they say, industry standard hardware, basically low cost servers, with free open source software. That is fundamentally changing the game, we've been covering it up and down this past two years, but here, the OpenStack Summit is very, very relevant because for the first time, this community has hit a flash point, and the flash point around OpenStack is the fact that the big whales, IBM, NetApp, EMC, VMware, Cisco, you name it, the top guys, Rackspace, these guys are coming together and converging with the upstarts, there's a lot of emerging startups, Hortonworks is here, Red Hat, they've got some stuff going on, SolidFire, and SluiceStars, we're going to talk to them here for the next three days and get their stories, but it's all coming together, mainly because people want to build their own clouds. Right now, the success of Amazon Web Services, or AWS, has been so amazing, they have been marching towards the enterprise, as Dave Vellante says, in a big way. Amazon Web Services, as you know, has been very, very successful with the public cloud, that is essentially a big set of resources for developers, and if you're starting from scratch, Amazon is absolutely the only way to go right now, they're awesome, they're automating, they're eliminating the operational aspects for developers, and so if you're a standalone developer, Amazon is fantastic. Well, that ease of use from a development standpoint, minimizing the operation aspect of it, is what developers love, but the enterprises want that same solution, so you're seeing Amazon's success forcing the hands of the big players, and you're seeing it all come together right here in the OpenStack Summit. So, it's interesting, just the whole open wave and how it's kind of working its way through various parts of the software stack, and now into kind of a fully embedded cloud, how do some of these big companies justify that, or enable that kind of openness and non-proprietary stuff within their existing stack of technology? You know, last night I was talking to a lot of developers and also some of the big companies, and everyone has their own rhetoric around what they think the preferred solution is in terms of the future of the world, of the computing for these companies, but the fact of the matter is, is that there's a lot of legacy involved in a large enterprise, or say a large telco. I mean, not many people get to start a clean sheet of paper from scratch like Facebook, and they're doing it, I think really, as the prototype of the future, Facebook to me is the shining example of a company that literally started with a clean sheet of paper, and one application, Facebook. So they didn't really have a lot of moving parts, and they did a great job. That's not what it's like in traditional enterprises. There's a lot of legacy processes, disaster recovery, security, compliance, generations and generations of processes that quite frankly were outsourced by folks, to companies, so there's a lot of fear to change all that, and the fact of the matter is, how they manage and built these infrastructures was on a scale-up. They would rack and stack these things into data centers on-premise, use commercial software, and they didn't really have a lot of the labor and the expertise, so that worked great, and how they managed it was the key. Now we're living in a world where you can sprawl out a lot of servers over there, a NetApp filer here, and that's the preferred future. People want low-cost, high-performance, top-line revenue growth with mobile applications, bring your own computer, bring your own device to work. These forces are changing the landscape. Now the reality for a CIO or a large tech architect in these enterprises is that, how do they do that? And that fundamentally is what everyone's asking. That is where the demand is, and that's what's happening. Yeah, it's funny, you mentioned Facebook, because I forget we were talking to one of our database clients, and they were saying even Amazon now is stuck within their own Amazon, or excuse me, not Amazon, Facebook system and design decisions that they made and the infrastructure choices that they made that are now limiting their ability to really change the way that they go to market and now with the growth of mobile and the application that they've built, they're actually running into some of these historical legacy issues that they can't change what they've built to take advantage of it. Yeah, and companies that are doing well out there that I like are NetApp, EMC, VMware, those are the big guys. And HP now with their cloud offering is absolutely building tailor-made clouds that meet the enterprise of HP. Watch HP, because I think HP's going to be a really, really big surprise. Now the only negative on HP at this point, and we're trying to get more information from those guys is their software capabilities. Are they in place to do that? Startups, I love what Hortonworks is doing. Hortonworks is here, Cloudera's not here. Hortonworks is interesting. They're an open, pure open, open source. They're good. Red Hat has got some amazing things going on and we're going to hear from NetApp's CTO, hopefully, and the person who's going to be leading up the open stack efforts. Radesh and if he comes on board we're going to ask them. But we're also going to hear from one of our contributors, Diane Mueller, who actually now works at Red Hat. And Red Hat has a lot of experience in these large enterprises from their days managing their open source projects and they're bringing a lot to the table. So watch Red Hat. And there's another company called Morantis which is out there. We wrote on SiliconANGLE. I'm going to watch these guys. They're bringing a lot to the table and I'll see Service Mesh. This is another company. So all these companies, you've never, some of you've heard of, some of you haven't. What are they doing? They're automating, they're eliminating the complexity. And that is what needs to happen and I think that's what we're going to see a lot of action here is the people who are the target audience for this show are guys building and investing in infrastructure. Right, right. And then I think, and we can get it validated here too, that within the open source world, I think the enterprises prefer to have a little bit of packaging, would you say? There's the support, the training, all the things that go around the actual code. And then there seems to be two tracks where there's the pure open source stuff which really is phenomenal for innovation and development and really leveraging the community. But then you have kind of the enterprise, do they want the packaged version? Do they want the easier way to kind of get it from more of a vendor as opposed to the community, if you will. Well, open source does a lot of different things for these guys. The packaging is critical, right? But I think it's early days still. And OpenStack to me again, this is why it's so important that we're here and shining the light and extracting the signal around the noise. And the noise really comes down to what is really going on? Who's got what? You're obviously seeing some big news out there. Today, Zen announced an initiative with Amazon. Amazon's got their marketing machine going and you got OpenStack. This is the cloud wars, right? That's the noise, a lot of noise going on around cloud wars. But at the end of the day, what's happening is cloud is an outsource of operations and resources. So the main areas of interest here is what they call infrastructure as a service. That's the bare bones. That's the key ingredients to the cloud. The second level is platform as a service. And those two things fuel the software as a service business model. And software as a service business model is what everyone wants. You see it with salesforce.com. You see it with mobile apps. Servicing software as a service which is a prepackaged download licensing model like Oracle and other areas. So, software as a service is what people want. And the under the hood of SaaS, software as a service, is platform as a service and infrastructure as a service. And Amazon Web Services dominating those two categories right now. They're dominating infrastructure as a service and platform as a service. Now, dominating would be debated, but I think they're really, really doing well and they're disrupting and commoditizing the infrastructure. And it has the big guys really scared. Yeah, the other thing I think is interesting is is that model is really a business model. And I know I've been involved in other opportunities talking to internal teams at large enterprises that find it easier for their own internal project to actually just spin up an AWS instance to throw a little project on there to work on it. Then to deal with their own internal IT team to get things provisioned and run it through cycles and et cetera. So, I think that would be the other interesting thing even internally how internal IT departments deliver their service to their internal constituents on really kind of a dial up, turn it on, light it up. I'm going to use it and then shut it back down as opposed to the more structured kind of provisioning and budget and all the nightmare that it would take to actually get something set up. The business model side is interesting because what's happening in my, at least my opinion is you get two major things going on at the same time. You have business model disruption going on at the actual customer, the enterprises, the guys who are actually in business, whether it's small, medium enterprise, the large enterprise or telco, their business models are being disrupted by mobile, cloud and social, all these new things. The providers of those technologies are being disrupted at the same time. And that's where Amazon is making some, making a move here to get some of that beach out of these large enterprises. So, look at IBM, you look at HP, look at EMC, look at NetApp, look at upstarts like Rackspace, relatively still a public company. Those guys are retooling because they have to, at the same time, be a supplier of technology and have good margins and invent their next set of business value to the customer to a customer base that's transforming. So, it really is a lot of noise in that area and I think the business model comes down to this, economics. We're seeing companies roll out faster applications, faster user experience or customer experiences, that's driving revenue. So, IT and technology is not just around a cost discussion, it's a revenue driver. So, that's the number one conversation we hear. I want to get faster. And Amazon has owned what we call the shadow IT market. People are going to Amazon and running stuff under the table and running stuff out in the public cloud. But when you talk to these top guys, they don't want to put their stuff out in Amazon, the data's secure, they want security. So, Amazon is addressing that. So, I think that's why everyone's scared and all CIOs I talk to and all the top IT architects they say, look at, we will go to cloud. What cloud will look like? No one really knows yet. And the whole focus here, Jeff, is that OpenStack hopes to provide the tools so that they don't have to reinvent everything. And that is the premise of open source and that's why I think this is important. Right, that's great. It's just funny how Bezos, first he just had a bookstore and he transformed kind of book selling retail and then to get into a shared e-commerce infrastructure and kind of upset that whole Apple cart as everyone could start to sell. And then he realized, wow, we got pretty big data centers coming along that maybe we should leverage our expertise in this. So, it's exciting times and the whole open source movement on top of the stack and the cloud. We're really excited, the Silicon Angle is going to be going to a number of events over the next several months as we kind of enter the season for the shows. We are looking forward to some great guests today and some of the announcements that come out here. We're here three days live Monday, Tuesday and Wednesday all day live, we're going to start at 11 o'clock every day and end around five and then go get the stories after, like we always do. Hit the crowd, find out what's going on but more importantly we're here to extract a scene from the noise and we would not be here if it wasn't possible, wouldn't be possible to be here if it wasn't for the generous support of Service Mesh. Service Mesh has been a great company to work with, they supported us to come up here and our key sponsor here as well as Hortonworks. Hortonworks has been very generous in helping us out to get here and we'll be at the Hortonworks Summit again. So, theCUBE is on its fourth season, we'll be at Strata, Hadoop Summit, come look at that. We're going to also be at EMC World, we've got VM World, IBM Edge, HP Discover, again same shows we did last year but we're going to add a lot more shows. We've got the O'Reilly shows coming up, we've got Velocity, Fluent, Oskon, we'll be back here in Portland for Oskon and we're excited to announce that we will be doing all the Amazon Web Services events. So, April 30th we'll be broadcasting live in Moscone for the Amazon Web, AWS Amazon Web Services Summit and as well as their big conference in Las Vegas in November, Amazon Web Service Reinvent. So, between OpenStack, AWS and all of our other shows, we will have cloud covered like a blanket, we're going to do a deep dive and we'll check the ceiling from the noise, this is Silicon Angles exclusive coverage of the OpenStack Summit here in Portland, Oregon. I'm John Furrier with Jeff Frick, we'll be right back with our next guest after this short break.