 We are fueling the next generation of innovation. Not all computer scientists are equal. Some of us love structure, but some of us also love creativity and style. How do you marry those two things together? That's how you become an open source superhero. It is about sharing knowledge. It is about working together and building a network to help you find that unicorn, to help others find their unicorns. If you do that, you can accelerate the rate and pace at which you innovate. When it comes to open source, important projects that will change the world and move us forward. Jim, for the introduction, the video came in the middle of that and interrupted just for a moment. I do encourage you to stick around through this keynote because Don is going to do a demo a little bit later, a live demo. It will be well worth how we connect the topic from last year's LinuxCon into blockchain in a very exciting new technology. First, looking back on LinuxCon 2015, Ross Mori stood on stage. Ross Mori is the general manager of System Z at IBM and discussed the Linux One server. We introduced it and brought it to market at that conference. It comes in two sizes. Rockhopper, which is a smaller platform, and then Emperor, so the small penguin to the largest penguin. With that, brought to market being able to scale up Linux at a scale that hadn't been done before versus scale out. This platform, both scaling up, if you need incredible processing power memory, IO bandwidth, all of that comes inherent in the hardware platform. And then the ability to scale out using virtualization. Virtualization on this platform is actually 41 years old. A lot of people think virtualization is new with VMware. Now, there's been various forms of it over the years, but you've got everything from the traditional virtualization platform through KVM. And KVM brought to the platform, both as an open source solution, but also something that people are very familiar with. And so the ability to administer a box using KVM, just as if it were an x86 box. And then without risk. Without risk is a couple of things. First is the stability of the platform, designed into the hardware as availability, so you don't need to worry about that at the software layer, the application layer. And the second is security. Also designed for cognitive. And when we talk about cognitive, it's not artificial intelligence. It's really the ability to enhance what we do as humans. So how do I take a lot of information to still it down into something that I can use? A good example, if I'm an oncologist and I want to stay current in my field, I need to read 160 hours a week to stay current. For those of, you know, just simple math, that leaves eight hours in the week to sleep, to go to work, to do whatever else you do. So that's just not physically possible. But I can use cognitive tools that will, I can input, you know, patient information. I can do science symptoms. And it will go and bring back and say, you know, 90% chance this is what your problem is. This is what you're looking at. And link me to those resources to where I can investigate it. That's just a very pragmatic example of how cognitive can enhance what we're doing in the world. Collaboration, and that's kind of the key for Linux over all the years and open source projects that have come since then. We find that going beyond the bounds of a company or a project group and working as a broader community, you get innovation at a much more rapid pace. Everybody kind of scratches their own itch. And in doing that, we all get the benefit of working together. And then the last piece is delivering in cloud platform. With that, it's how do I virtualize and serve that up at the most basic level on premise? And then how do I link back to the cloud via hybrid? Three quick client examples. ADS is a managed service provider in Mexico. They provide application services to both government and industry there. And what they found was the ability to consolidate their services on a single frame, running Linux, and serving up applications. They got ease of use in management because they weren't scaling beyond thousands of servers. They got consolidation license savings through that and then just a quality of service that they were able to offer. HX Express is an integrator in China. And one of their key projects that they started with, there are regions in China that still do cash and paper tickets for transportation, whether it's train, buses, even the state highways, and automating that. So they did a quick analysis and said the easiest way for us to do that is on a rock hopper running Linux and scaling that quickly. And they've done an early pilot and that transition has gotten much better than they had anticipated. The MetaOffice does weather for the UK and both for government and aviation and private sector. They take 10 million data points daily on weather and then run that through a high-performance computing algorithm and then produce products basically in services on weather forecasts that help everything from disaster planning, like I say, to aviation and shipping and the like. They had been running that in a completely scale out environment and evaluated doing an imper and putting that all in one frame. They had planned three months to do that transition. It took three weeks. And I think a key thing and something that we've heard on the Expo floor is people are like, so what's Linux like on a big system? It's just Linux. So we had an open-source database partner port to the platform. We asked, what do you want for the distro? They said Red Hat 7.1. But Red Hat 7.1, they logged in and they said, but this is just Linux. It's the same kernel, same GCC. I said, yeah, 20 minutes later, they had their application up and running and they were spending time then optimizing for the platform. So with the explosion of data and Internet of Things and the ability to measure so many different things, this is really creating a transformation in the digital world. A couple of things that come to mind for me. Everything from the medical office where, if you go back enough in time, if I got a prescription from a doctor, it was in their writing. You'd hand it to the pharmacist. The pharmacist couldn't read it. So they'd say, would you go to see the doctor about? I'd say, I had a cold or I had this infection. And they would know which drug to give you. Not the best, most reliable method. Now I go to the doctor's office. They're inputting into a keyboard exactly what's going on by the time I go to the pharmacist. They're actually getting it in digital format. So it improves the quality of service. I've already talked a little bit about by doing things in an open way. I mean, we had Microsoft on stage. Pretty phenomenal that over the years, that transformation has happened to see that the benefit of working within communities and the broader scope is very important to business. And then the last quote, Dr. Ramirez actually used that one yesterday. So it does come that there's great power that you can do both in scaling out and scale up systems. And so with that, it's really important to protect that, whether it's through security, data privacy, and the like. And finally, before I hand over to Donna, over the years, IBM's first foray into open source was actually the Apache Software Foundation working with the web server there and folding that into the web spear product. And then shortly after that, Dan Fry created the Linux Technology Center, IBM, evaluated Linux and said, this is really the direction we think the world is going and started participating in the late 90s in the Linux kernel project. Over the years, we've added to that, whether it's Eclipse or OpenStack and joining those communities. Most recently, the Open Container Initiative to help drive some commonality and some standards there. Cloud Native Computing Foundation is another good example. Node.js. And then most recently, the Hyperledger project kicked off last year through the Linux Foundation. Very exciting. So at this time, I'd like to hand over the microphone to Dr. Donna Dillonberger from IBM. So what is Hyperledger? Hyperledger is an open source blockchain project from the Linux Foundation. And what is blockchain? Blockchain is just software that replicates data across organizations. So before blockchain, different groups would share their data and when they share their data and assets, they would keep a record of that in their own internal databases. Blockchain is software that provides a ledger in the different companies and when a company puts a record on the blockchain ledger, their own blockchain ledger, then the blockchain software replicates that across all the other participants in the blockchain network. It does that in a way that enables the data to be tamper proof and it can't be deleted. The best way to show you what the blockchain does is just to show you a demo. So now we'll show the demo. So IBM uses blockchain for our own supply chain. So what you see here is that IBM builds computers and we have 4,000 suppliers and partners all over the world that's sending us parts to build computers. And that causes us to have 25,000 disputes every year. So they say that they sent IBM an invoice. IBM says we never got your invoice. They say that they shipped the parts. IBM says we never received the parts. We say that IBM gave you a payment and the 4,000 partners and suppliers they never got the payment. So now we're asking all of our partners worldwide to use our blockchain. Approximately every year we have $100 million tied up in our supply chain. It takes us 44 days to resolve a dispute and every dispute is about $31,000. So with this blockchain we're asking our partners to put a record of your invoice on the blockchain and IBM will put a record when we receive the invoice. Put a record when you ship the parts on the blockchain and IBM will put a record when we have the parts and what this does is it allows partners and suppliers to look up in their own blockchain the status of any parts or supplies that they've shipped to IBM. And it's cut down the amount of time that it takes to resolve a dispute instead of calling a person at the other end some call center. They could just go to the blockchain and look to see whether the invoice was received or approved or whether the payment is coming. So let me show you live blockchain. So this is a map of the U.S. and we have partners and suppliers all over the world but this is just our U.S. one. When I click on this it makes a call to the blockchain and that REST API gets this data. So these are partners. This is real data since it's a public demo I can't show the IDs of our partners but they all have unique IDs. For example, partner 718 sent us invoices last year from July through December totaling 39,000 invoices, $186 million. So again, all this data is on the blockchain and just to see it live, right? What we see is across the top you see invoices coming in, one for $82,000 another one for $163. We're getting invoices and payments across the country. This is a blockchain, so green is the invoice was approved red means it was rejected and white means that the invoice was received. So that's the live demo of the blockchain. Now just go back to the slides and when we go back to the slides a company that's using the Hyperledger blockchain is Everledger, right? Everledger provides provenance of high-value items so one of the items that they're providing provenance on is diamonds. So again, the whole network of diamonds that's being put on the blockchain so what that is is when a diamond is shipped from a conflict free mine that pedigree is going to go on the blockchain when that diamond is polished by these companies their certification is going to go on the blockchain when those diamonds are traded in Antwerp the traders will put their certification on the blockchain and again this is just one of the many test cases that we're using that blockchain is being used for so why are they using the Linux Foundation Hyperledger blockchain? Unlike Bitcoin Bitcoin is started the blockchain protocol but the Bitcoin's use of blockchain is what we call a public anonymous blockchain so that means if you download a blockchain database from Bitcoin you can see all the transactions that are occurring in Bitcoin so you could see all the wallet IDs that are transferring Bitcoin but a lot of the companies that we're working with they said that they want some additional features to blockchain so for example with the provenance of diamonds they wanted to be able to say if you download the Hyperledger blockchain database they want to have that data encrypted they want to make sure that some of the records are private they also want to be able to set permissions on who could see the value of these diamonds and we call that a permissioned blockchain so besides encryption and permission they also wanted to be able to have every record on the blockchain signed so that we know that it's this bank that put that record on the blockchain we know that it's this diamond mine that put this record on the blockchain so you could still configure Hyperledger to be anonymous but you could also configure it so that every record on the blockchain is digitally signed so you know who put that data there you could still make the Hyperledger blockchain public but you also have the option of configuring it to have the data encrypted so that the data is protected and you could still have anyone see the data on the Hyperledger blockchain but there's also an option so that you could also set permission on what other entities could see the blockchain so last year the Hyperledger blockchain didn't exist last year many companies worked with Bitcoin derivative blockchains other blockchains like Ethereum or Ripple or Chain or something like that but when we started working with companies with these other blockchain implementations they asked for these three additional features they wanted the data to be encrypted they wanted the data to have access permissions associated with it and they wanted the data to be signed digitally signed so we know where the data is coming from these three differences are the differences of the Hyperledger Linux Foundation blockchain so the other thing that we have is that IBM has stood up a cloud to provide these Hyperledger blockchain services so when we come to use cases such as the provenance of diamonds we know that this is going to be a high value blockchain that has to be extremely secure and there's going to be a talk at lunch until 2 o'clock and I'll be showing you the IBM cloud for blockchain then and what are the unique features that it has that provides security to blockchain so now I'll invite Jim back so as a lot of people might not have access to a Linux one in order to try out either an application or some program that you've been working on we have a Linux one community cloud that has a 120-day free trial for you to give it a try so if you can't remember this URL type in Linux one, trial and it'll be the top hit in whatever your favorite search engine is alright, last thing here is as Donna just mentioned a lunch and learn back here at 1 o'clock so I highly encourage you to come we'll go into a lot more depth and have some great technical discussion there it'll also include a new partner of ours, cognition boundary so I would encourage you to come second is stop by the booth if I mention Linux one there's a plexiglass lit up display version of it there stop in, bring problems bring questions comments we welcome those and then the last thing is feel free to see some hands-on demos and meet our experts so with that I'll see you on the stage thank you