 The Cube at OpenStack Summit at Lata 2014 is brought to you by Brocade. Say goodbye to the status quo and hello to Brocade. And Red Hat. Here are your hosts, John Furrier and Stu Miniman. Okay, welcome back everyone. This is day two wrap up. I'm John Furrier, the founder of Silicon Angle, and this is the Cube, our flagship program. When we go out to the events and extract the signal from the noise, we're live in Atlanta for the OpenStack Summit. This is our second year covering it. We've been covering OpenStack really since the formation. In fact, I was involved in some of the early rack space discussions pre-OpenStacks. It's been fun to watch. And my co-host is Stu Miniman from Wikibon all weeks too. It's been a great day. I mean, I think today's a little bit slower in terms of activity. A lot of sessions going on. But in general, again, great content we had Red Hat on. We've had some great guests. We had Digital Film Tree. We had John Luke Shilane did a stop by. And you had the Cloudcast guys. Sargalite from HP. A lot of luminaries. David Wright from Solid Fire. Sage from Ink Tank bought by Red Hat. I mean, it's very clear, Stu, that the ship has sailed. The train has left the station. The horse is out of the barn. Whatever you want to use is a metaphor, right? It's happening. OpenStack is the real deal. There's too much momentum behind it. It's going on. The foundation's set. We still haven't heard that shot heard around the world. To me, it's still in the Kool-Aid stage. A lot of hype. And the Gardner Annals essentially confirmed that the trough of disillusionment is coming. Yeah, I mean, John, last year, the Cube covered the Portland show for the first year. And many people said that was an inflection point. It's the visibility that the Cube gives. And obviously it was editorially important enough that you funded us going to that show. And you're right. There hasn't been that big move. It's not like with software-defined networking. The $1.2 billion acquisition in NICERA that everybody said, wow, that's huge. There wasn't some big announcement, some big acquisition. But as we've been talking about, that everything this week is about the momentum. You talk about how many people are contributing code, the users are getting involved, and the big vendors are really starting to put the wood behind the arrow. So Sargalai came on. John said that they've got 300 people here at this show. At the show here, not in their organization. Yeah, and so out of 4,600 people at the show, HP's got 300. Rackspace has huge contingency here. Red Hat's got a lot of people. IBM, Dell, Cisco, even EMC, who's not a very big visible player in OpenStack and VMware, both have a lot of people at this event. So people are attending. And what we say is CIOs are definitely paying attention to this trend now. That they've either sent their people here or they're keeping an eye on what's going on now. And it's just about the maturation and the transition from developing a platform to moving, as Alessandro said, we need to talk about where are we penetrating different industries and use cases and talk about breadth and scale of deployments rather than how much code is being contributed because we're up to Ice House now. Let's not at Juno and beyond be talking about, okay, great, turn the crank, millions of more code and lots of people working on it. Where is this getting out? Where are the new business models that are being created by companies using this? And where's revenue happening? You know, Stu, one of the big things that I see happening today is just doing a tweet on CrowdChat around some of the trends I saw. Just total cost of ownership, TCO. TCO is a huge issue. It's undefined and it really shouldn't be defined at this point, it's still an emerging market. So total cost of ownership is all about not just the purchase price of a solution or a platform. It's the overall cost of integrating it in, changing operations. So it's too early to tell, but we will watch that because when you start to see people talk about total cost of ownership, you know you've got a legitimate industry building. The second thing is- John, can I comment on the TCO piece? So if you look at the TCO piece, the thing that's interesting is in theory, you could take your existing infrastructure and layer OpenStack on top of it. Of course, most people don't really have a scale-out architect that's going to fit, but it's the operational efficiencies that are really going to help drive this. And that's been really tough in our industry because operational costs are usually a little bit softer and IT staffs are really overworked as it is. So it is easier sometimes to sell that solution where it has a capital thing. So talking about when I go do my storage refresh, it's easier to say, oh, there's a cool new technology and a box that I can buy because it is faster and cheaper and from a capital expense, I know how to match it up. That operational cost is a little bit hard to measure, but then that's really where the value for cloud in general and OpenStack specifically are. And that's a good point, too. Operationalizing new stuff is always a challenge and that is a good tell-tale sign that you're not yet in the trough of disillusionment because you start to see, when you come out of the trough of disillusionment, that's when you start to see the operationalized kicking in because you got real growth going on and that means there's a practice, there's process, people change, all that. The other thing I would say is a trend, is the consumption model. I just saw that on crowd chat here. Seamless consumption. I think MetaCloud yesterday kind of teased that out. If you can automate the consumption and I think that's what we heard from HP off camera, we heard from HP say, hey, we're just going to make it seamless to consume as possible. Someone wants OpenStack, we'll go end to end and we'll provide all that automation. So it's not hard to acquire it. And you heard Sargalai say, you know, I want to eliminate the inhibitors to OpenStack and that's indemnification. Okay, we'll indemnify you from any kind of legal lawsuits that are going on. So you're seeing that as a key issue, creating a frictionless environment is key. Yeah, absolutely, John. We talked to, in addition to MetaCloud, SwissStacks looking to address that and there are projects that are making progress in OpenStack. So we look at what's happening with Horizon. For StackStorm, it was actually Project Mistral that they're talking about. So, you know, right, how do we create that automation and orchestration layer that's going to help simplify everything that's happening at the infrastructure layer? So I got to say, Stu, one of my favorite interviews was Alessandro from Red Hat, one's accent. Couldn't get his name right, you know. I'm always bad at my name. Really? Really? Dave would have nailed it. Is really the perspective coming from Gardner is really interesting and he's so new at Red Hat, he's not yet fully ingested into the system of the corporate America, which is a completely different world. He's going to have a huge wake up call in terms of how things are run differently. Maybe he's gunslinger at Gardner to the strategy guy at Red Hat. I mean, it's still going to be a fun job. It's just different tactics, but it's interesting how they think about the past. He said, hey, Cloud Foundry, whatever, you know. We're not going to address that. We have our own deal. They have their deal. We'll see you on the battlefield. That's going to be my translation. But interesting guy, he sees the landscape. What do you think of that? Yeah, John, so as an analyst, one of the things that we always love to do is really talk to those practitioners. Alessandro had spent years talking to the end users and it's the challenge of how do IT practitioners and CIOs adopt that change? And the line I love from Alessandro was he met with a VP of infrastructure and he said, I have so many challenges right now. It's so exciting. And that's what we need to be able to embrace that and find those new models and the people that are going to change it because there's too many in IT that are like, well, what I have right now stinks. And my guys are buried with support tickets and they're not meeting the needs of the business, but hey, we're getting along with duct tape and bailing wire and bubble gum, but we can keep it working. So let's just keep doing it and you're going to be left behind in the dust. I mean, kill me with that problem. I have too many requirements. We can't build it, but that's an issue with feature creep. I think, and what worries me about OpenStack is you don't want to see an open project go off the rails. Well, it gets us off the rails by weird agendas, getting forked. And I think that was a question that we were looking to this week, Stu, was what are these big guys going to do? I mean, are they going to come in, quietly nip chip away at the momentum to kind of pull it back onto their terms? What's your assessment? I love Boris from... Morantis. From Morantis was wearing a shirt last night with Heisenberg from Breaking Bad and it's on 99.1% pure. So that's what everybody's looking at is if you look at the stack, it's are we forking it or are we taking what's there and we're adding on top of it? The challenge always is there with standards and projects like this that you need to deliver the solutions to customers that are going to work. So in an ideal world, John, you'd love to be able to say that I just take this kernel or whatever it is and deliver it. I mean, even look at Linux. I mean, Linux has been around for a long time. You can go to kernel.org and download that but most customers are going to take some distribution whether that be from Ubuntu or from Red Hat or anyone out there because they need the packaging of it and the support and sometimes there's extra things that they want on top of it. So we're going to see that similar maturation, even there's a lot of differences and a lot of challenges that OpenStack is going to face but it kind of does echo what we see in Linux even though, as Alessandro said, hopefully we shouldn't have to wait 10 years to see that first billion dollars being made. It should happen much faster. You know, on a personal note today one of my favorite interviews was the guy from Digital Film Tree which came on theCUBE and he's more of a showcase customer for OpenStack but it's not your typical enterprise, right? And what I liked about this guy was the fact that he grew up in the Bay Area was he's doing cutting edge software development as a creative shop in the film industry and I think that was personal to me because one, I love the future of journalism, the future of film, I also mentor some of the young kids in the community around that in Palo Alto and that's ultimately what's going on, Stu. I mean, it's just so interesting to hear how Hollywood's changing and that you're going to see the next George Lucas come out of the woodwork. The next young gun is going to come from this new generation of digital natives, artisans using coding in Python, doing big data in real-time analysis and actually doing creative work. And we start seeing that then it's the future so I think that was a personal no. What was your favorite? Yeah, John, and just to comment on that, I do love it, you know, there's too many people if they saw your industry is going to be out of business in a couple of years, they'd say, well, I'm going to ride this merry-go-round until it comes to a complete stop and then figure out what I'm going to do. Instead, he said, hey, I'm going to help dive in here, do software development, get my guys coding on OpenStack and be able to disrupt myself to be able to move this going forward and create a new business. So that was good. John, I mean, you know my favorite segment was hanging out with a couple of good friends of mine from the Cloudcast, guys that have interviewed over three years, I think it's like 140, mostly startups, some really cool people, a lot of them, everything from the Swift Stack guys through the DevOps piece, so synthesizing down. And you know what they said after doing all these interviews for over three years, basically the bottom story is, Cloud sucks, but the technology problems are going to be solved. I mean, they only have 3,200 more to do to meet our record. Yeah, John, they actually said that two years ago, they said, we're going to take over the cube and then they're like, forget it, you guys. Secretary, it breaks away, thundering's right. They've got a lifestyle with their podcast and do it in their spare time. They know we're delivering value to the community and digging in with Broad Spectrum, so great to have a look. We will stay up late at night to get the stories, the metadata that comes out at the party stew, what did you learn last night at the party? A lot of good metadata flowing around, a couple cocktails, loose lips. Oh boy. Yeah, I mean, John, yesterday on the wrap up, I might've been a little down on OpenStack. I'm saying, are we going to implode in 12 years and hearing enough stories about real people actually deploying them and just people are hesitant to really share their stories and that's what we want to try to really extract here is find those practitioners out there, get them to share their stories, why this is important, why they're doing it and because this is an important piece of the ecosystem out there. Cloud is disrupting markets left and right and there's so much going on with OpenStack. Another good interview I thought was today was Sargillai, a Cube alumni who's been on theCUBE was funny, we made him laugh and smirk and smile and the HP folks were like, you don't see Sarg smile that much because he is an operational leader at HP and I think he's not a big grandstander and the reason why I like him on theCUBE is that he gets to kind of, you know, talk about stuff that he's working on that we're interested in, certainly everyone else is interested but he does it in a way that's not grandstanding and he doesn't get a lot of the credit, he laid down the tracks from the previous cloud stuff that was generated out within HP because the early cloud days was underfunded. Biri Singh had the momentum going and then he had a good team but it was underfunded. When Sarg could over, he picked up where he left off and laid the tracks down and so a lot of the success that HP's having today is from Sar. Now they have Martin Fink in charge of it, he was from HP last, been a general manager, Meg Whitman is overseeing the whole thing so you're going to see good moves from him and I think that was good to hear him reiterate that the billion dollars is going to be spent and that's a conservative estimate, he told me, that's really more than a billion, that's just their press release number and it's a real number. So great to hear that from Sar. Yeah, John and we had Dave right on from SolidFire so SolidFire is a company we've been tracking since they were in stealth. Gosh, gosh, I think it's been at least three years now. A company that doesn't make huge waves in the marketing from a marketing perspective but heavily involved in OpenStack. Don't know if Cinder would have happened without those guys. You talked with SolidFire, eBay and a bunch of their customers back at Mountain View earlier this year and they quietly released the first converged infrastructure solution for OpenStack today. So I mean, John, you know I track the convergent infrastructure space really closely. You know, it got a wonder when EMC and Cisco who really lead that space are going to jump in. Oracle's here at the show even. Heck, John, I even saw Google, a couple of people from Google here at the show. It's like, so there's a lot of interesting things going on behind the scenes here and it's been fun to check it out. Yeah, Google certainly is interested in this though. There's probably some alpha geeks doing some recon but you know, I was really enjoying talking to Jean-Luc Chalet and he basically called it, right? This is a DevOps show, Stu, right? This is a DevOps show, plain and simple. This is all about DevOps. Great commentary from him, talking about some of the big data challenges, the bigger the data, the bigger the privacy headaches, the bigger the data, the bigger the security risks. This is a huge issue that's going to infiltrate the OpenStack community very shortly and also his comment on peer storage. I asked him directly, do you think peer storage can be the next EMC? Flat out, no. So it's, he's in the storage business so we'll have to keep an eye on that, Stu. Okay, Stu, any final parting thoughts for day two? So, you know, like last night, there's a bunch going on in the community last night. It's fun to get together with this crowd. You know, the geeks party well. You know, Atlanta, it's been humid but you know, it's nice. Everything's, you know, mostly in walking distance and we got another half day of some really good guests tomorrow that I'm looking forward to. Okay, this day two wrap up here on theCUBE. You have tomorrow morning. Stay with us and good night.