 Hello everyone, this is SiliconANGLE, and we keep on the Cube, our flagship program. We go out to the events, extract the signal from the noise. I'm John Furrier, the founder of SiliconANGLE. I'm joined by Coase, two mini men here, for all day coverage of the Open Networking Summit 2014, hashtag ONS 2014. We're here to break it down. What does Open Networking mean? Software-defined networking, software-defined data center. This is about software at the heart of the disruption around networking. Open networking, open source, cloud deployments. Really, this show's about threading DevOps, SDN, software-defined networking, and software-defined data center. At the end of the day, this is what's going on under the hood, this real innovation, real transparency going on, and also the transformation is second to none. There's winners, there's losers. We're going to break it all down. We have some guest speakers. Dave Vellante is here as well. Am I a co-host? He's getting some stories. And Scott Reinovich is here, our new co-host for the Cube. We're going to interview him. Analyst in the networking space. A lot of great stuff coming from the Cube. I'm going to break it down for you again. I'm John Furrier. Stu, Open Networking Summit. Stu's the leading analyst in the networking space at Wikibon, thought leader, influencer. He's coming up on all the indexes and influences around networking. Stu, welcome to this session. We're going to break it down. A lot of great guests. Martin Casada, Brocade, tons of geeks, talking speeds and fees, but also about the marketplace. There will be winners, there will be losers. What's your take of the show? Why is this show so important? What is the real transformation? What's disruption? Where's the innovation? And what's your take? Yeah, thanks, John. And, you know, definitely we're excited to be here because this is the center of the future of networking. If you walk around this show, there's definitely religion that open source is going to completely transform networking. As you said, that's really the theme of the show. So there's a lot of open source projects out there. Of course, it's open daylight, there's open flow, there's open stack, SDN, NFV, network function virtualization, network virtualization, and it's really going to have this dramatic impact. The question we really want to unpack here is, where is it happening? How long is it going to take? Who are the winners and losers? Are the incumbents going to be left on the wayside? Is this truly a disruptive wave that's going to just kind of crush the incumbents? Or is it just going to be one of these changes that a couple of years from now, we're going to say, we're going to spend so much time hyping this whole SDN thing? Well, we're monitoring the crowd on our crowd chat platform. We've got all the data on what the crowd is saying here on site with our analysts and reporters. We've also got our crowd spotting, crowd chat technology, we're watching what's happening in the social sphere. And Stu, I can tell you right now, there is a lot of cloud momentum driving this space, really forcing function around networking. Because if you look at the trend data, which I posted on Twitter, you go to twitter.com.com. I posted two charts from two dynamic verticals. Software Defined Data Center and Software Defined Networking. And really there's an intersection between the two, but really the trends are, this show is the center of SDN, OpenStack, cloud computing, Software Defined Data Center, Big Data, NFV, DevOps, OpenFlow, virtualization, Internet of Things, Open Daylight, Platform as a Service. These are the mega trends driving this forcing change here. And what this is doing is it's forcing all the incumbents like Cisco. It's looking at the new incumbents, the new guys who are heavily funded, VC back multiple years now with real technology, who become the new incumbents. And then there's a slew of new startups, new technology around virtualization that's going to shape all that. Startups, new incumbents, and old incumbents. That's our focus right now. We're going to analyze all those. Who's going to be disrupted? Who is disrupting? And what new startup is going to come out of the woodwork? And we're going to break it all down for you on theCUBE. So Stu, I got to ask you right now, a couple of mega trends right out of the box. You quick observations. OpenFlow is the rage. Obviously Martin Casada from Nasira, the shot heard from around the world when VMware bought him for a billion dollars. Obviously now on a groove swing, not much news coming out of VMware, but he did give a talk today on SDN and the cloud. And in general, how does this reflect into the cloud momentum around DevOps? Yeah, so John, great question. Cause cloud is where this whole SDN wave is starting. If you look at, you know, Vinod Kusla gave a keynote this morning. And you know, the seminal example that's always given on SDN is Google. You know, Google uses SDN. NTT gave a keynote here. They actually made an acquisition in the NFV space to give them software based WAN optimization and firewall. So, you know, there's not too many companies that are going to actually acquire a company to be able to get that technology. So the big telecoms out there are the ones that are, you know, using this technology first, the clouds and big telcos. And that's where some of the early customers of the Nasira technology are. It's, you know, the guys that either are service providers or want to look like large service providers. So, you know, the cities of the world, you know, the e-bays of the world, the same kind of guys that John, you were at Open Compute, we're covering OpenStack. It's, we're hearing this over and over. It's these really large guys that have huge IT budgets. I mean, billion dollar IT budget a year, or they're just going through rapid change and therefore they're the bleeding edge to adopt these new technologies. You know, Stu, I was talking to a VC, I won't say their name, big firm. I was talking to some CEOs from startups and a V Group Product Manager at a big networking company. And basically, you have an overfunded, kind of series B, series C, kind of new incumbents. And all this disruption is changing. So what's really going on that's interesting is, is that you're hearing from the crowd that these new guys, like Big Switch for instance, is one name I will throw out there, and a bunch of other companies are groping for a market position. They have some technology. But the question is, how will the wind shift? Will there be some beach head for these guys to land on? Is there a market? And for all the application developers in the cloud, for instance, are these service models going to be secure enough? All the under-belly or under-the-hood changes going on in networking will have a dramatic effect on what's happening above and up the stack. So to me, the question is, what is the derivative side effect or collateral damage to for all the invested players in the app space, especially in the cloud? We've seen that with OpenStack as well, the bleed-over conversation at OpenStack. But mainly, with this disruption, there are some still shifts to be had. Big player moves in open compute, open networking. You see Cisco, Juniper's not even here at the show. So what's your take on all that? Yeah, yeah, John, great point. So somebody on Twitter this morning made a conversation that the vendors and most practitioners really think in kind of products and equipment. We've for so long have thought that I buy either appliance or I buy a box and the software comes with it. There's this unbundling going on. And John, you've talked about applications. Applications are absolutely where there's huge white space in the networking world. If, like in cloud, we've got hundreds of thousands of SaaS applications that are out there. We were at IBM Pulse last week, John, and IBM alone has over a hundred SaaS applications. Networking has this opportunity to rather than selling things on an appliance basis and have this hardware, but to enable just software to be able to put where it's needed in a distributed architecture and create new value into the marketplace. So huge opportunity there, but the big question is, is it really going to be an open marketplace or is somebody really going to control that interface? Something we're going to dig into is the Open Daylight project here. Open Daylight is standardized on a controller for Open Daylight, but the Northbound and Southbound APIs still need to be sorted out because otherwise somebody could turn networking into an API and really control that hardware and that would move us forward. When you talk about the cloud computing stew, you talk about services, we heard everything is a service, it's a design philosophy, you have an operating system model going on at the networking layer that will be open source. Then you've got deployment in the cloud. These are three tiers approach to how things are rolling out. And what we're interesting seeing is the telecom industry is under siege. WhatsApp and Mark Zuckerberg, the founder of WhatsApp was at Mobile World Congress and said, they're going to get in the voice business. So the telecom guys, the networking guys, this is now a real critical time in history that they have to get their act together and deploy scalable solutions. We saw a quote this morning from John Donovan from AT&T that was quoted by Scott Reinovich from the Reino report who'll be on the queue shortly to talk about his analysis and also co-hosting segments. Scott retweeted John Donovan from AT&T on why SDN and quote, John Donovan says, because there is no army that can hold back an economic principle whose time has come. Stu, what does that mean? Yeah, so, you know, there's a lot of vendors at this show, John. And it was actually a son analyst who made a comment, it was like, oh my God, look at all these networking executives here. I think the comment I've heard you make is, you know, people want to set the menu rather than be on the menu. So, you know, there's a lot of money in networking and it hasn't shifted dramatically in a long time. You know, it's been dominated, of course, by Cisco for the last 15 years and people think this is a, you know, once in a generation opportunity to, you know, break apart this domination. And of course, Cisco's here in presence. So, you know, Cisco's not going to quietly, they do a lot with open source. They're involved in these projects and, you know, we'll see if they can ride this wave. So I want to get your take on something, Stu, because you're in the trenches, you also have a good perspective on the landscape and the horses on the track. Two comments. One, you see kind of the net neutrality message come up on some tweets and people are talking about around SDN and NFV will not impact net neutrality. People disagree with John Donovan's statement from AT&T who said that. People don't agree with that. They think, you know, deep packet of inspection. These are things that are in the packets that could affect traffic flows, not just on policy and or managing routes, et cetera, but also net neutrality, privacy, shaping traffic, deep packet of inspection. So one, comment on that. And two, break down the FUD. What FUD do you expect to hear from the big boys who are trying to either stall the market or accelerate the market or shift their position? Yeah, so first on the security, a fact that I found rather interesting, Martin Casado said that while, you know, network virtualization is of course helping things go faster. We always want faster, you know, faster is the new fast. But he said 40% of the deals that VMware is doing for network virtualization are because of security. You know, we've discussed a lot that cloud can actually be more secure than what you've done before because anytime we change a paradigm, there's that opportunity to really set your policies and get things right as opposed to just having all that legacy baggage that you had before. So, you know, there is obviously that risk, you know, especially when we're talking about cloud as to, you know, who gets access to your information and how we can get in, you know, so I don't know that SDN is necessarily a silver bullet or, you know, leave you open, but you know, security needs to stay there. And the second topic. The five, the five. There's always FUD at the show from the disrupting parties, also from the people being disrupted who want to put the heat shield up and try to reflect some of that FUD. Yeah, so, you know, the FUD is of course, you know, first of all is, you know, what is SDN? I was a little disappointed. Some of the people on the show here seem to have a rather narrow definition of what SDN is. It's only a controller based solution. We're going to be talking to some of the solutions that are being displayed here at the show that might go a little bit beyond that. SDN is about making the environment simpler, making it more automated, making it be able to scale. And, you know, I don't think there's only one solution to do that. We want to have an umbrella that's going to move us forward to the new networking. You know, the FUD is always, it's not ready. It's not safe. You're not really going to save that money. And, oh, by the way, the big thing is it's going to put all your engineers out of jobs. And what are you going to do and you're going to have chaos in your organization? Is it ready for primetime? Is SDN and scaling SDN networking for the scalable apps in the cloud where you need to have a modular approach for services, endpoint management, virtualization? I mean, Internet of Things comes into question. What is the edge of the network? All these things are being discussed. What is your take on that? Is it ready for primetime? What's your take? So what I love about technology like this is it's been proven. If you say Google's been using some of this technology for a couple of years, the hyperscale players are pushing that leading edge. And, you know, therefore say, you know, if it can work in the largest of data centers, can it work down market? So our, you know, SDN is not a solution. There's lots of different projects out there. Open Daylight's been making some good progress, but really their first, you know, full instantiation of the code only got released at the end of last year. And obviously there's a maturity cycle and upgrades that need to happen. And as customer deployments happen, we will bake these out, but the cost economics are so compelling for some of these solutions that when I talked to the experts in this field, you know, peers of mine, you know, the general belief is that this is going to happen. We're just kind of arguing over, you know, when this wave kind of hits the beach. Let's talk about the folks that are waiting to be disrupted. And those are the old incumbents, Cisco and Juniper in particular. Juniper's not even here at the show. The company's sideways right now. Cisco, the big guerrilla company, which also sponsor of theCUBE. Thank you very much. Cisco for sponsoring us for allowing us to be here. But Cisco obviously is the big battleship. And you've got HP's in Bethany, they are now in a new position of NFV service providers, some folks left at HP networking. What's going on with those guys? So to me, those are the three major players. What's your take on those three guys and their position? I mean, obviously they're waiting to be disrupted. Can they be a disruptor before they're disrupted? What's your take? Yeah, so, I mean, Cisco is the easy one to look at. Because of course, Cisco is really more like a hundred companies. Cisco has many positions in this space. They've got a lot of moves and they've got a lot of money. And you never argue against that army of Cisco certified engineers that they have out there. People whose jobs are really tied to what they're doing. Cisco isn't the first company that I think of when I look at open source, but they do have a lot of people involved in it. Cisco is always kind of tagged with, well, they just kind of do their own thing and maybe they're proprietary. But I've always found that Cisco usually kind of moves the technology forward and then they work very closely with the standards community. They've definitely got a lot of things going on in open source. They've donated code to Open Daylight. They're working on OpenStack. We're going to have Dave Myron who's heavily involved in Open Daylight and now works for Brocade. He used to work for Cisco. And he says code is the coin of the realm. And that's how people in open source really look at this. If you've got people contributing to code. So, I want to ask, are we going to have Dave Ward from Cisco on? How much is Cisco contributing to code? One of the big knocks you talk about cloud is Amazon uses a ton of open source. They are not a contributor of that. So when you talk about these open source communities here, if you're giving back to the community and you're participating in it, they want to embrace you and they want to work with you. If you're not, they want to kill you. This is live. We are live in Silicon Valley in Santa Clara. This is theCUBE, our flagship program. We go out to the events, extract the signal from the noise. For the open networking summit 2014 still, I got to say this show kind of feels like a dusty old show when I first got the wind of this. But when you look at what's happening with open compute and open stack, the people have a spring in their step. The urgency to get something out there that's going to scale for value for enterprises is on the table. There's a lot at stake, a lot of money at stake, a lot of market share at stake, a lot of market positions. And again, old incumbents, there's new incumbents and now there's the new upstart. So we're going to hear it all from the analysts, from the CEOs, from the tech geeks. Here on theCUBE we're live in Silicon Valley. This is John Furrier with Stu Miniman and Scott Rainovich coming on. Dave Vellante as well will make a guest appearance. He's out scouring the landscape for some stories. He'll be on theCUBE. We're live, very relevant shows Stu. Quick to wrap up this intro segment. What's your take? What's your take on the vibe? Why is open networking summit relevant this year? Yeah, John, so absolutely, this is where networking is going. So there's a lot of people coding on the projects, getting involved, learning about the technologies and finding out how it's relevant for what they're doing. There's so many different pieces. It's in the data center, it's in the cloud, it's in wireless, it's in the WAN. So there's lots of different pieces here and there's no doubt that it's going to have a huge impact just like on the server side we see how the ODMs are taking over a lot of the marketplace. Cloud and that shift of applications from legacy to more modern applications, this all kind of ties together and definitely excited to unpack this trend because if I've gone to shows like Interop over the last few years, it feels like it's been dying for the last 10 years and this is where it's taking off. Still plenty of questions. Big question, friend of the show, Abner Germanow said last year everybody was talking about OpenFlow and there's very little talk about it here. So there's a lot of churn, a lot of froth in the marketplace for all the VC and startups going on here other than ICERA, there hasn't been another big bang. So is there going to be huge value created in the marketplace? It's absolutely going to change the way that customers look at networking over the next three to five years. This is the future of networking here. This is theCUBE, we're innovating. Our mobile newsroom is here. We've got guys on the ground writing stories. I'm John Furrier, Stu Miniman. If you're watching, mark your calendars. At three o'clock today, Martin Casado, always a guest favorite. We'll start right out of the heavy hitting session. We've got Microsoft, Group Product Manager coming out at 1.30. Brocade, Chief Scientist at two o'clock. Just a lot of great guests. We have CTO of Engineering, Chief Architect, Cisco at 4.30. We have Kelly Wazner, Stateless Network CEO at five o'clock. And we're going to go all the way to 6.30. We get some VCs in here. I saw Andreessen Horowitz is here with some other ones. We're trying to get Peter Levinod and others. So stay with us. This is theCUBE on SiliconANGLE.tv. Exclusive coverage of ONS 2014, the Open Networking Summit. We'll be right back with our first guest.