 Live from Dublin, Ireland, it's theCUBE, covering Hadoop Summit Europe 2016, brought to you by Hortonworks. Now your hosts, John Furrier and Dave Vellante. Hey, welcome back, everyone. We are here live in Dublin, Ireland. This is theCUBE's European edition, kicking off Hadoop Summit 2016 here in Ireland. This is theCUBE's SiliconANGLE's flagship program. We go out to the events, extract the signal from the noise. I'm John Furrier, my co-host Dave Vellante. Day one wrap-up here at Hadoop Summit. Dave, day one impressive for our international foray, continuing our global coverage, our expansion, Hortonworks event here, small. Again, all the shows in the States tend to be a lot bigger, but here, a lot of buzz for the enterprise, big data space here in Europe. I thought it was fantastic. We had an amazing group of guests on. The CTO from Microsoft, Ragu, from the data group, very candid, great interview. Really highlighting the Satya Nadella transformation of Microsoft and really gave some great insight into Microsoft, Dave, and talked about, kind of pulled the curtain back a little bit, shared some data, good insights. Well, I think he underscored that Satya, under Satya Nadella, Microsoft is a completely different company. I mean, he talked about openly about how essentially they're disrupting themselves. This will be disruptive to us, is what he said, the whole cloud model. And basically, admitting it's disruptive because they're going to have to change the way in which they recognize money. It's a new selling model. They're going to change the way in which they actually make money. And by, but it's good for Microsoft, right? Because if they're going to compete with Amazon, they have to have every development language, every programming language, every feature and function that any developer wants to use. So, but yeah, I agree. I was very impressed. That was the interview of the day, in my opinion. And then the other thing he admitted, John, they totally, I mean, I sort of let him on, $10 billion in operating profit. They can use that to bomb the market. He didn't say that, but that's what Microsoft is going to do. He was reaffirming through his silence. They are going to use their estate. It's like Oracle. And their heft. Well, similar strategy, different dynamic. Well, and trench enterprise business. That's true. Leveraging their strengths, opening the door for cloud. That's true, but I think, I mean, Microsoft has always been a volume play. Drive costs down, you know, drive out whoever it was, Netscape or Lotus or Word Perfect or, you know, Novell, drive them out with lower pricing and more function. They're kind of, you know, that's what Amazon's doing. We heard from Scott now, the CTO, very candid response on some direct questions around Spark and where it fits in the roadmap. And then what I really also enjoyed was Arun Murthy's candid interview. Here's a guy that, you know, I've gotten to know over the years. Great guy and computer scientist to the core. Programming since he's been 10. Playing chess since he's been 10. Totally a programmer, grown up, entrepreneur now. Took a company public as a co-founder. Candid kind of salt of the earth kind of interview. Sharing some of his personal perspectives. And of course his view on Hadoop ecosystem. And then obviously Sean Connolly stood in for Rob Bearden who couldn't make it, Rob, we missed you. And then obviously the customers, you know, we had the energy company on. We had people in the trenches, Rob, from Think Big Machines and Think Big. I mean, he was there from the early days. But Dave, this show, Hadoop Summers is much different than Strata Hadoop. It's the tale of two shows. It's the Cloudera show, which now is the Cloudera O'Reilly show versus the Fortin Works Yahoo show. And really it's the tale of two shows, Dave. And you know, it's clear the difference. It's strikingly different comparisons. On one hand you have the walled garden of O'Reilly. You have their commercialization, monetizing lanyards, monetizing everything, making millions and millions of dollars. Cloudera and O'Reilly making millions on that commercial event. And this event is more community. So you're not commercialized at all. So you have one is a community event and one is just commercialization, a vendor event and brand event. So, you know, strikingly the polarization is happening. O'Reilly and Cloudera and Horton works in the community. So I find that fascinating. Well, I kind of have, if I can comment, I kind of have mixed emotions about that because, you know, Hadoop World got us into this whole thing. Way before it was funny, listen to Ron Bodkin, I was saying 2011, 2012, everybody was talking about making it ready. He said, well, I was way after that. We were on that in 2010. But I guess, and it was because of Hadoop World that that all started down, of course, was Cloudera. But that show has totally morphed into- It's a commercial event. It is a commercial event. So it's great in the sense that we know a lot of people there, we have a lot of friends there, but it lost that sort of authenticity, don't you think? Oh, I totally did. I mean, Cloudera basically sold out to O'Reilly and they're under contract to run that show. And they get a lot of demand, lead gen out of it for their business. I mean, sure they have a lot of great demand gen, lead gen business development that happens, but they lost the community. So Cloudera lost the community leadership, in my opinion, with that event. And I think that's just the path that they chose. I've never really seen that before. I mean, have a, it's actually a user group meeting that's always sponsored owned. Well, I'm surprised Cloudera just gives up on the community like that. But to me, that's just not what I knew Cloudera to be. Cloudera, when we knew Cloudera, when we worked, when we had relationships at Cloudera, they were very community driven, very upfront and inclusive. And frankly, they're not. Cloudera is not an inclusive company. And certainly with us, they contracted not even, they're not even allowed to come on the cube. So I just find that off-putting and it's just weird. I just don't get it. I guess the point I was making is, it surprises me that a vendor would give up a franchise like that. I mean, they maybe argued they didn't give it up, but can you imagine VMware? I mean, when VMware got started, it was a grassroots effort and it blossomed into one of the best enterprise shows. Out there, it still is. And I can't ever see VMware giving that up. Or EMC world, or Dell world just recently started 2012, Oracle open world. Can you imagine Salesforce? Imagine Benioff saying, well, let's just outsource this thing. It's too much of a pain in the neck. I don't understand that. I don't either. I think, you know, Riley makes so much money on that show. It's almost a little bit gratuitous on their part. I think they're like overstepping their moves there. And you know, Cloudera's side effect of that is they co-produce it with it and they take on that image and that's their choice. Well, I don't blame O'Reilly. I mean, they're in business, they're making money and that's just kind of who they are. I mean, they're probably a great lead gen. But again, this trade-offs and everything. But again, to me, community will always win. Our community, the developer community, everyone who programs for communities will win. There's an article on Medium about how anonymous networks that are not identity-based, if they don't have community, they don't win. So we're getting back to that. And I think this speaks to the bigger picture, Dave. You know, as we expand out our international footprint, our community is global now. We have done international shows every year. We have an Asia-Pacific office with a team out in Asia-Pacific. We're going to be building a team here in Europe, looking for space either in London, Dublin, or somewhere. But we're doing a lot of international and we're expanding internationally. So, and then Latin America always looking for relationships down there and certainly down under. But the thirst for this global community of content is really, to me, the most fascinating thing about the media business. And I think, you know, if you look at what Facebook did yesterday, it was really a seminal moment for me, at least, seeing the trajectory of the early web and being an entrepreneur from, you know, when the web, when W3C came to MIT, when we used to hang out in the computer science building and then MIT, and then, you know, to now, you see the evolutions of the web. Early days, search, portals, Google dominance, social podcasting blogs, now obviously with social networks dominating, Facebook really is owning the web. I mean, what Facebook is doing is essentially what Tim Berners-Lee would have done if he wasn't an open web guide. That could have been the web. Would have looked like Facebook. Facebook is trying to dominate. I think that it's a really fundamentally not going to work at a level. I don't think the web can be owned. The open web might rebel. There's already articles out there. But if you look at what Facebook did yesterday, live video, in the moment. These are the same talking points that Dick Costello was talking about with Twitter. Influencers, producers of consumers, social media, active participants, community. Everything's revolving around your social graph, your interest graph. Facebook has a significant opportunity to absolutely level the playing field on the media business. And if you're a media company, and you're not thinking video first, then you might be doomed. I wrote that on my Facebook page. You know, and you know, we've invested in video going to events. I mean, hell, we went to the first Hadoop world event. We're coming to all events. Because that's where the action is. That's where the social interaction is. That's where the networking is. That's where the content is. And it can be shared. So I think what Facebook's doing with their live video is phenomenal. I think their notification platform that they're building across multiple portfolio of apps is a winning strategy. Each app is different context. We heard that on theCUBE today. So the media business is changing. Our context is changing. I'm excited to be out here in Europe and expanding. So, to your point, I mean, the web and offshoring have flattened, you know, the world to use your term that you know, you take from the book. And data is flattening that even further, right? So as the world goes digital, we know digital is about data and it crosses borders and it just creates a whole new dimension and dynamic. And I think one of the things that I know, I used to spend a lot of time in Europe and Asia and I would, you know, unquestionably, the US back, you know, 15 years ago was leading in terms of technology adoption in virtually every sector. It's been a lot written and discussed about how that's changed. There's still some truth to that because of Silicon Valley, but when you talk to the Hadoop practitioners around here, you really just really, you can't really discern a huge difference between what you see here and what you see in the United States. And as Arun said, in some cases, they're even more advanced here. Certainly in the financial services sector, they're all over this topic. So I don't think those differences are nearly as strong. The privacy in Europe is a big issue, but this brings up the bigger picture and Ron Bodkin from Think Big was talking about some of the antibodies around cloud and the fearful of cloud. This is coming up in the big data space. I've seen it with all the big players here. Cloudera, Hortonworks, MapR, all the big winners in the space are all going up against, although the big winners in this little pond, they're small fish in the big pond. So what you have is, you now have, coming to Amazon who are massively huge, $10 billion in revenue, they're just now getting stuff filled in on the gaps for enterprise grade. If Amazon is just becoming enterprise grade, it's going to be even more of a challenge for Cloudera, Hortonworks and MapR and these other ecosystem players to get to that level. So this will have to be a community model where they have to work together. This is a huge issue. And I think Ron kind of teased it out from Think Big by saying, if you want to be enterprise grade, the bar is way higher than most people think. I mean, Amazon again is winning, but still, you know, you've got Oracle and Microsoft, IBM, major enterprise players entrenched with cloud and they already have existing accounts. Amazon's coming in as a free, you know, free wheeling, green field opportunity and they're still playing catch up, Dave. Just on the compliance stuff. Huge, huge deal. It was interesting that Joe Goldberg from BMC was talking about, you know, their play, what they're bringing to the table and that's a company that's been around forever, understands, I mean, I always laughed when, and the first time, I think it was Ron was saying, or maybe it was Joe, we were quite a ways after that. It was the first person we heard say that was Pat Gelsinger at EMC World in 2011. So they were early on. So you remember they did the deal with MapR, EMC and MapR? I do. Yeah, and what they say, they said, Pat said, we're going to bring, you know, adult supervision enterprise grade to Hadoop. And that was really the first enterprise company, well, I think the whole industry has, right? And so, but that was really, EMC was early, the first company said, we're going to do that. And then everybody said it. And Arun Murthy kind of pointed out here in theCUBE, Hadoop has become a name that mostly represents the ecosystem, not necessarily a point product. Well, it was interesting what he said, too, it was that 10 years ago, I didn't even think about security, compliance and governance, didn't even enter the conversation. And now that's all they talk about. It's growing up fast. So that's kind of table stakes. So I got to ask you the question, in your opinion, are we still early in this industry if we say that the big three, MapR, Cloudera, and Hortonworks, still have a lot more work to do, VisaV, AWS, IBM, Oracle, and Microsoft? I think we're still early, but the patterns to me are starting to emerge. I said this earlier, is you look at the players that are winning in this business. It's, there's only two pure plays, Splunk and Palantir that show up in the top 10 list of people, you know, revenue in this business. Everybody else is Oracle, IBM, HPE, Dell, Microsoft. I mean- What surprised you today? What questions surprised you? And responses from the guests. What surprised me? I have to say, I wasn't shocked by much today. I think- I'll start on your thinking. I thought I was shocked by the consistency of responses I heard when I was going and pointed questions about Amazon. Orgworks guys are like, hey, no, we embrace Amazon. So I find that very fascinating. It's a unification going on in the Hadoop community around the bigger resource pool. But it's Amazon, Microsoft. But to your point about, you know, what you were saying before, is it early days? Amazon's clear. You know, unless they blow it, they're going to be a $100 billion company. Who? Amazon. I'm not going to blow it. Okay. I don't think they're going to blow it either. So that's my, I mean, so patterns have emerged. I guess, you know, it didn't surprise me that we heard so much about IoT. I guess, you know what surprised me is that you didn't hear enough substance around IoT, right? I'm hearing a lot of IoT, like a new shiny toy. And I guess that surprised me a little bit that people aren't talking more about the business impacts that Hadoop is having, you know, on their core business. I'm a little nervous, John, that maybe it's not living up to the promises of 360 degree view and changing the world. And right, it's the same old use cases. It's ad tech and it's fraud detection. Well, there's the hype. And so is it failing to live up to those? No, I think. Or is it? No, here's my prediction on this space. I'm going to be bold and make a prediction. I think the cloud, what came out of the Strata Hadoop and Big Data Week and our Big Data SV event was the cloud will accelerate change fast. I think you're going to start to see the big whales come in, the rich get richer. We talked about that on theCUBE. Talk about the big vendors. And you're going to see a massive shift. And I believe that this community of Hadoop, the ecosystem, is realizing that this game is not about Hadoop anymore. This game is about big data software. And the projects will continue to evolve in an open source framework, Apache, and Open Software Foundation. And you're going to see a consolidation in this industry around a cohesive community. And there will be some people left outside in the cold on that. If this community doesn't come together like Linux did when the big mini computers and the work stations were around, because I think the cloud game with Amazon is moving so damn fast that this has to come together. And if they don't. So here's my question to you then. Let me ask it differently. Are the companies that are adopting Hadoop creating competitive advantage or are they just kind of keeping up with the Joneses? There's too much heavy lifting. I think Hadoop ecosystem is failing the customers. And you're hearing that with the training, you're hearing it about the heavy lift. Talked about assemblies, runtime assemblies. Essentially, they got to just write better software faster. And that's just, you know, it's just hard to do when you don't have enough bodies. Now, they're peddling as fast as they can. I'm not saying they're writing crappy software. It's open source. So things tend to go a little bit slower. But when the big whales are all speed ahead on the cloud, guess what? You know, the industry has to kind of come together. It's a forcing function. So my prediction is some consolidation around some core things, some standards. And you're going to have people sleuthing the flag. And if not, they're going to get it run over. But you know how critical I've been of, you know, Nick Carr, does IT matter? Not that I don't respect Nick Carr and his writing and his journalistic capabilities. But when he came up with that book, I was like, this is insane. Of course, it matters. However, you know, back to the question, is Hadoop creating sustainable competitive advantage for the practitioners, for the companies that are deployed? At a tactical level, I would say no to my earlier point. But it's very clear that the automation of functions and processes around data and data inputs, agile data, real-time data, whatever you want to call it, data now as a function of the business process improvement around solutions is so obvious that that's not a speeds and fees factor. We heard that loud and clear in Silicon Valley. So I think there's a lot of similarities with the ERP. Colin Mahoney's made those statements and comparisons George Gilbert has. Did ERP create sustainable competitive advantage for companies? Or did it just allow companies to drop more money to the bottom line and improve productivity? I mean, I guess in a way that creates sustainable competitive advantage, but everybody's got ERP. How do you increase productivity? Don't do the job at all. Okay, that's certainly productive. Because don't do anything. You cut costs or you raise revenue. Eliminate, automate the function and do something different. That's the heavy lift I'm talking about. So all this administration, the provisioning, all the software, all this stuff has to come together. That's the automation, AI, machine learning, cognitive systems are all perfectly poised with new software models to come in and completely change the game. So I'm not saying big data hasn't created competitive advantage it has, but is it sustainable? And that was kind of the nuance of Nick Carr's book. I think there's some, you know, obviously poster children out there, like at Uber, everyone uses that, where you can actually have a big data application. Facebook is clearly one. I mean, obviously that is an application. It's not a software company. What do you make of Facebook, John? I mean, we were watching their announcements yesterday, the F8 conference. Is that the new web? Facebook is the new web. If Tim Berners-Lee didn't, it took the web public and created a company around the web rather than creating it open, like with the W3, it would look like Facebook. So Facebook is becoming- Because it's a walled garden. It's just one big, it's the world, right? Facebook has billions and billions. Now, Facebook's saying we're going to not build a wall but build bridges between their walled gardens. Right, inside the walled garden, you're going to have bridges over the river, over the bay, and you've got bridges inside the structure. So call it a bridge, whatever you want to call it. Are there comparisons that you could draw with AOL or no way? No, not at all. Not at all, because that was a walled garden early days. Technology was different. You didn't have broadband, you had dial-up, the interface sucked, and just completely different value proposition, and AOL never innovated. So Facebook is innovating- That's the key. AOL didn't innovate. Facebook is putting- Despite Steve Casey's new book. Facebook is stealing all of Google's moves, okay? And I know that because they're in my backyard. I see all Google people going to Facebook. What do you mean by that? What moves are they stealing? The innovation, thought leadership, the positioning, the invention, the innovation, the Oculus Rift, donating stuff to open source. They have some heavy-duty guys over there. They got Shrep from Mozilla, SPP of Engineering, he's phenomenal. Zuckerberg's young. These guys are doing stuff. They're not sitting on their ass. They're not sitting around. They're really driving a lot of technology innovation. Obviously, they're kind of behind the invisible hand behind open compute huge initiative. I think that's going to change- But they got open source shops, Facebook. They built their own stuff. They have total open source shops. They have interface user design shops. They are constantly doing stuff. Facebook is inventing and innovating. Now, interesting, Facebook and Google is Google's doing self-driving cars and some other stuff off the reservation. Facebook's kind of staying within their wheelhouse. They've done about building cameras and planes, all kinds of other stuff. But again, in the spirit of R&D, that's their job. So I think Facebook is a really great company. I love the people over there. They're just too powerful. And they're- What impact do you feel like that will have on the enterprise beyond just the consumerization of IT, which is a topic that I think is well covered? I think Facebook's data centers, similar to what we see with AWS, that Facebook could easily sequence into an enterprise-grade market by leveraging the power of their scale and data centers and easily, with a blink of an eye, be a new kind of social CDN for content delivery, for video. They could instantly be a provider for any kind of SaaS-based business. I mean, it's just all right there. I mean, they get the portfolio. So they're not disrupting the data center business. They're disrupting the businesses that the data center business supports. If I'm Andy Jassy, the new CEO now, was SVP, now he's the CEO of Amazon. If I'm Andy Jassy, I'm the CEO of IBM. I'm the CEOs of Google. I think about Facebook. Okay, as a competitor. If I'm Oracle, I think about Facebook as a competitor. So they have the tech and scale. Now, they're not going to probably do anything for a while, but they- Competer in the sense that they're probably not going to buy from you and they're going to disrupt your customers. Is that right? Yeah, the customers will go there. So competition is a moviehouse competitive to the sports arena. Indirectly, your time is competitive, right? So to me, Facebook could easily just suck the oxygen out of the room from other vendors in a transformative market that we're in right now. So software, build driver, machine learning, AI, the investments they're making with facial recognition. Maybe a better way to look at that is was television disruptive to the movie theaters. It sure as hell was. And that's essentially what Facebook is doing now. Facebook is basically saying we're going to run all video programming. Zuckerberg's keynote yesterday was so good. I watched it twice. It was so much fun to watch. Here he is, young gun, kicking ass, taking names. But he said something about messenger. Like, oh my God, no one likes to call a business anymore. And that is like, everyone's like, you know, older people are like, what are you crazy? I used to phone all the time. Nobody uses the phone anymore. No, you're right. And I use an example of open table. I'm like, why would you call when you can go open? He's so right. He's skating where the puck is going to be saying, okay, I'll let these guys use the yellow pages. All right, I'm going to take down the internet, right? So I mean, it's fun to watch. I don't think he'll get there. Doesn't matter. If he connects the world, they'll still be huge. Why don't you think he'll get there? Because public policy will. I think Google was the same philosophy where they had, they took the data a little bit, but they won search, but they still gave first party data to the brands. I do not think Facebook's going to be highly successful with brands like people think they are. I think they'll be very strong from a data analytics perspective, like AMEX was with credit cards. But I don't think that brands are going to be so crazy about activating the user bases on Facebook and paying for first party data. So. Is Google evil? No. No. No. How about Facebook? No. No. They're not evil. They could be, though. They all could be. They're dangerous? They all could be dangerous. Let's see if something comes from them. Hey, we're all under surveillance. So, Google browser, huh? You heard in the keynote this morning, the last speaker, I don't know if you've heard it, but she was saying, she used to laugh when she said, you know, people worry about how much data the government has. She goes, why aren't you worried about how much data your carriers have? Or why aren't you worried about how much data Google and Facebook have? We live in an era of transparency. You sometimes just come clean on everything, you know, because it's going to come out. I mean, you saw the Panama Papers, you can't hide, you can't hide anymore. Someone will get hacked. Something will be leaking. Nothing is secure. Scott McNeely said that at one point, right? Get over it. Okay, we're secure tonight at the Guinness Factory party. It's theCUBE, day one wrap up. I'm John Furrier, Dave Vellante. See you tomorrow for day two coverage of Hadoop Summit in Dublin, Ireland. Hadoop Summit 2016. The hashtag HS16 Dublin. Go to crowdchat.net slash HS16 Dublin. Thanks to Bert Lattimore and the team back at the SiliconANGLE branch. See you tomorrow. Thanks for watching everybody.