>> Announcer: theCUBE presents HPE Discover 2022
brought to you by HPE.
>> Hey everyone.
Welcome back to theCUBE's day one coverage
of HPE Discover '22 live from Las Vegas.
Lisa Martin here with Dave Vellante.
We a couple of guests from Red Hat.
You may have seen some news yesterday.
We're going to be talking about that.
Please welcome Ryan King,
the Senior Director of Hardware Partner Ecosystem,
and Laurie Fontaine joins us as well
the Senior Director of Global Commercial Partner Ecosystem.
Welcome to the program guys.
>> Thanks for having us.
>> Yeah, thank you.
So great to be back in person
and Red Hat Summit was just last month or so.
>> That's right.
>> Ryan, talk about hybrid cloud.
It's all the buzz.
We've been talking a lot about it
in the last hour and a half alone.
What are some of the trends that Red Hat is seeing
with respect to hybrid cloud?
>> Well, I mean, hybrid cloud at Red Hat
has been a trend for quite some time.
In fact, we were very early
in setting our course towards hybrid cloud
with our products and platforms.
And that's been a key part of our strategy
in terms of the number of transformations
that have been happening in the enterprise and with HPE.
We're super excited about you know,
we're hitting our stride with OpenShift.
I've been working with OpenShift for the better part
of my 10 years here at 12 years at Red Hat,
10 years with OpenShift.
And we're very excited about seeing the pattern of going
where customers want to build their cloud.
It's very important that where the market is going.
So we're seeing trends from the public cloud now
go into Edge and Telco and 5G
and really see them expanding their
infrastructure footprint out to those use cases.
And again, we see REL everywhere,
so REL has continuing to expand as well.
And then Ansible Automation Platform has also been
a great means of kind of bringing together community
for that last mile of automating
your entire infrastructure.
>> Well the functionality of Linux continues to improve.
OpenShift is everywhere.
I mean, I remember at the Red Hat Summit,
I mean, well we coined this term super cloud,
which is this layer that floats, you know,
on-prem to across clouds out to the edge.
We had Verizon on, they were talking about,
you know, 5G developers and how they're developing
using, you know, a combination of OpenShift.
So you guys have been really crushing it with OpenShift.
I remember, gosh, I mean, we've been covering,
you know, Red Hat Summits for a long time now.
And just to see that evolution is actually quite amazing.
>> Yeah, it's actually really neat to see our CEOs
align too, right.
So the messaging that we've had around hybrid cloud from
Red Hat, like you said, we were kind of the pioneers,
honestly, this we've been talking
about hybrid cloud from the very beginning.
We always knew that it wasn't going to be
public cloud or private cloud.
It was, we had to have, you know, hybrid and,
it's interesting to see that Antonio, you know,
took that on and wanted to say,
we're going to do everything as a service right.
A few years ago.
And the whole theme was around hybrid cloud
and giving customers that choice, right?
So it's exciting for us to see all of that come together.
And I actually worked for HP for like 17 and a half years.
So it's really fun for me to be on this side now
with Red Hat and see the messaging come together,
the vision come together and just really being able
to align and move forward on this.
>> Tremendous amount of transformation
in the last few years alone.
>> Oh my gosh.
>> We talk about, you know, customers need choice.
They want choice, but you also talked about,
we have to meet customers where they are.
That seems the last few years who have accelerated,
there is no more option for companies.
You've got to meet the customers where they are.
>> Exactly. Yeah.
And it's all about choice, like you said, and it,
everybody's got, you know,
their own way to do everything as far as
consumption goes and we have to be available
and spot on with it, you know,
and be able to move quickly with
these trends that we're seeing.
And so it's great to be aligned.
>> And from a partnership standpoint, I mean,
you mentioned HP at 17 years.
I mean, it was hard to follow company,
you had PCs over here, you had services,
the kind of the old EDS business.
Now there's such a focus on this mission of as a service
and obviously a key part of that is having optionality
and bringing open source tooling into that.
I mean, we heard about this in spades at Red Hat Summit,
which was really interesting this year.
It was a smaller VIP event in Boston and I loved it,
you know, cuz it was really manageable.
We had all the execs on and customers and partners.
It was awesome.
What's new since Red Hat Summit?
>> Well, I mean, I would say that
obviously GreenLake and what we've
announced this week is a big new thing for us,
but really like we're just continuing on our pattern.
We are now, if you look at the Q1 report from IBM,
you'll see that the growth of the customer base
for OpenShift that they reported just continues
to go up into the right.
You'll see that now, like Omdia is saying
that we're like 47.8% of the containers
market for the enterprise.
You'll see that like we're now in
65% of the fortune 500 with OpenShift,
90% with Red Hat in general.
So we've established our footprint
and when you establish your footprint
and customers start taking you out to the edge,
we're going into these 5G use cases, we're,
we've got incredible amount happening in the AI space,
all these emerging areas of where people
are building their cloud,
like we're now going to that next level of saying,
how do they want to consume it?
>> So what's really important to me about that is,
so Omdia data around 50% of the market is OpenShift.
A people may not realize a lot of people use, you know,
do Kubernetes for free, you know,
hey we're doing Kubernetes,
but they don't have that application development framework
and all the recovery and all the tooling around it.
And the reason why I think that's so important,
Lori is ecosystems want to monetize.
So if people are paying for things that becomes more
more interesting and it actually starts to
attract people just naturally.
>> Yeah, absolutely.
And speaking of ecosystem, I mean,
that's the beauty of what we're doing with GreenLake too.
We're taking on a building block approach.
So we're really, it's kind of ISV as a service if you will.
And you know, personally, I,
this was my baby for the past couple years,
trying to make sure that we took into consideration every
partner use case, every customer use case.
So we created an agreement that would make sense
to be able to scale, but also to meet all
the demands of our customers.
And so the, what's really exciting about this is
now we have a chance to take this building block approach,
scale it out to all types of partner types,
right throughout the entire ecosystem
and build offerings together.
That is really exciting for us.
And that's where we see the real potential here
with GreenLake and with Red Hat.
>> What's actually available inside of GreenLake.
>> So we are starting with OpenShift.
So OpenShift will be available in Q3 that will follow
in Q4 with REL and then after that Ansible.
So we're moving very quickly to bring our platforms
into it and it's really our strategic platforms,
but it's all based on customer demand.
We know we're seeing amazing transformation of
customers moving to Kubernetes, you said.
You know, OpenShift is Kubernetes with useful additions
to it and an ecosystem around it, right?
So that transformation is also happening
at the bare metal layer.
So we're seeing people move into Kubernetes bare metal,
which is an amazing growth market for us.
>> Explain those useful additions if you would.
So why shouldn't I just go out and get
the free version of Kubernete?
Why should I engage Red Hat and, and OpenShift?
What do I get?
>> So you get all the day, two management stuff, you get,
we have a whole set of additional stuff you can purchase
around it, OpenShift platform.
Plus you can get our ACM, our advanced cluster management.
So you want to manage multiple clusters, right?
You get the ACS, the security side of it.
You can also get ODF.
So you get storage built into it as well.
And we've done all these integrations.
You can manage the whole thing as a cluster or as multiple
clusters with the whole enterprise support
and the long term support that we provide for
these things up to 10 years.
>> When you look at the early days lease of Kubernetes,
it was really, the focus was on simplicity.
You had other platforms that were actually doing more
sophisticated cluster management and the
committers that in Kubernetes said, you know,
we're not going to do that.
We're going to keep it simple.
And so that leave some holes and gaps and you know,
they're starting to fill those, but what if,
correct me if I'm wrong,
but what Red Hat has done is said, okay,
we're going to accelerate, you know,
the closing of those gaps and stay ahead
and actually offer incremental value.
And that's why you're winning in the marketplace.
>> Well, we're an open company,
so we're still doing everything upstream
and open source as we do, of course,
sticking with, you know, the APIs and ABIs
to make this all work, both, you know,
in terms of what the community's trying to drive,
what we're trying to drive for our customers
on their behalf.
And then just where things are going from a
technology basis, make it a lot of investment.
>> But you have to, you have to make a choice.
Red Hat has to make a choice as to
where it puts its commitments.
You can't spread yourself too thin,
so you got to pick your spots and you've,
proven that you're pretty adept at doing that.
>> That just comes back to customer-centricity right.
And just knowing where our customers need
to take the platform.
>> That's easy to say, but it's, it's an art form.
And a little bit of science.
>> Remember these customers have experts
that are deep in this space.
So it's like, you know, those experts
trust us with where they needed to go.
And they trust us to help shepherd that and deliver
that as a platform to them.
So it's not like anybody tell us what you want, right?
Like, it's really about like,
knowing what's the best way to do it.
And working with the people that can help you understand
how to apply that to their use case.
>> And within the customer environment,
who are you working with?
Who is that key constituent or constituents that are guiding
Red Hat in this direction?
>> Well, it's certainly infrastructure folks.
So it's your standard folks that are looking at the,
how do we lay down our infrastructure?
How do we manage it?
How do we grow it?
It goes out to the application developers.
They're trying to deliver this in a cloud native way.
And we have new personas, you know,
coming in with the AI practitioners, right?
So we've announced at before summit
at NVIDIA's event,
their new offering called NVIDIA AI enterprise.
And so that's them bringing in enterprise support
for GPU, for Kuda and for a software stack above that
to start offering some more support there.
So they're certifying OpenShift, we're both
certifying the servers that run underneath it,
and then they're offering support
for their stuff on top of it.
And that's a whole new use case for us.
>> And, you know, I should also mention that
even though this paper use with
the GreenLake is new for us,
and we just had this big announcement,
we have done GreenLake deals though.
We've done numerous GreenLake deals
with our annual subs, right?
So I, so even though this is new to us, as far as,
you know, monthly utilization and being able
to do this cloud consumption this isn't new to us
as two companies coming together,
we've been doing GreenLake deals for the past couple years.
It's just, now we have this cloud consumption availability,
which is really going to make this thing launch, so.
>> So what have been some of the customer benefits so far,
you've been doing it for a couple years,
announcement was yesterday,
but there's obviously feed on the street going on.
What are some of the big outcomes that
you're seeing customers actually bring to reality?
>> I think speed and agility, right?
That's the biggest thing with, with our products,
being able to have it everything predictable
and being able to have it consumed one way,
instead of having this fragmented customer experience,
which is, you know, what we've seen in the past.
So I think that's the biggest thing is speed agility
and just, you know, a really good customer experience
at this point.
>> Go ahead, please.
>> I would say the customer experience is critical.
>> Yes.
>> That's one of the things that we know that in terms of,
of patients wearing thin the last couple of years,
people expect to have a really strong consumer
experience regardless of what you're doing,
regardless of what industry and so attention and mind on
that is a differentiator in my opinion.
>> Absolutely. Yeah.
And we've got to constantly keep our eye on that.
I mean, that's our north star, if you will, right.
So, and.
>> Lori, I know you're saying you've done
GreenLake deals in the past,
but what feels different to me now in that it's actually
actually coalescing some of the things that
Al Russo announced this morning, the platform on which,
you know, ISV is a service.
I think you, you called it.
>> Yeah. >> Yeah.
>> You, it now seems like, you know,
look a couple years ago, HP said, okay,
this is the direction that we're going.
>> Yeah.
>> They weren't there at that time.
And they're still not there.
There's a lot of work to be, to be done.
But now it's starting to form.
You're seeing, you know, the pieces come together,
the puzzle pieces that sort of substrate being laid out.
And now you're hoping that we see the steep part of the
S-curve and that's what customers I think are expecting.
>> Right.
And it's bringing that operating model to move to a monthly
model so they can do pay as you go, right.
And that pairs up nicely with like
the cloud native capabilities.
We're bringing to OpenShift and hybrid cloud in general.
So it just shows like we're already getting
demand from customers.
It's saying like, this is part of our model.
Like we know a certain amount of infrastructure
we want to own, and we just want to own it outright,
but there's a lot that they want to have flexibility on.
And so being able to add that portion to it is just,
you know, going to help us both.
>> You think about the critical aspects of
the cloud operating model.
It's obviously pay as you go it's, you know,
massive scale it's ecosystem enablement,
and also automation.
I mean, that is a key,
what's your point of view on that?
You guys with Ansible, you go back
to a couple years ago and it was, you know,
there was this, there were a lot of other tooling, but now,
I mean, Ansible is really taken off.
>> Yeah. It's just, you know, Cinderella story, right?
Like it really is amazing community driven thing
where we just knew, we all know this, right.
You have, when you get to the very last mile of doing
infrastructure management, there's a variety of devices,
there's variety, a variety of vendors.
And then you have like the variety of skills of the people
that have to figure out how to do automate all of this.
And what Ansible did is it provided a common language
across all of that.
And so what we do with automation,
our Ansible automation platform is we make it
so now teams can manage all of this together
and they can share their playbooks
and they can host that privately for
all their enterprise stuff that they need to do.
So it's just, you know, it fits our DNA so well
to have something so community driven now
with a really nice enterprise message wrapped around it.
And it's playing out very well for where,
you know, hybrid cloud, right?
Cause there's some more additional variety.
You need to be able to manage, you know,
across all of your different footprints,
because really it's like,
it's not just about flexibility and scale up scale down
it's where do you need it to run at what time, right?
And that, that last leg Ansible plays a key role in that.
>> And we actually, Ansible will be coming further down
the you know, the patch.
I know we're going to talk a little bit about
what's available today versus what's available
down the road, but yeah, we have that on the radar.
So right out of the gate, we're working on OpenShift,
obviously bare metal,
and we see that happening in Q3
and then behind that as well in Q4,
and then Ansible's going to be right behind that.
So that's kind of the order that, and there's other pieces,
right?
So our whole portfolio is basically available
to HP right now.
It's just making sure that we can operationalize
everything and have the best experience.
>> All inside of GreenLake.
>> All inside of GreenLake. Yeah.
Pretty neat.
>> Lori, Question for you.
You've been, you were with HP for a very long time.
This is obviously the first discover in three years
in person.
>> Exactly.
>> You know, three years ago, Antonio Neri stood on stage
and said, we are going to buy 2022.
And here we are deliver everything as a service,
as a partner and as a former HPer,
what are you seeing at this discover 22?
>> It's it's so interesting.
It's such a see change if you will, right.
And having come from HPE, I actually led the software
and service organization for a while on the
software side of things.
And we thought that was like state of the art
and cutting edge that was 10, 11, 12 years ago, right?
So to actually see this come to life,
because we were all thinking really,
everything is a service.
How are you going to do that?
Like your entire portfolio is going to be available.
Like that is lofty, right?
And having worked at HP, I thought, wow, I don't,
you know, I know things take time.
And, but actually just even being around the showcase here
and watching everything come to life is amazing.
Cause I you know, I was very positive about it,
but at the same time, it's like that,
that was a big goal three years, right?
And it's, I'm seeing it happen.
>> A big goal and two of those years during a pandemic.
>> Right. >> So talk about lofty.
>> Oh my gosh.
>> Quite a bit of accomplishments.
Guys, thank you so much for joining Dave and me
on the program talking about,
>> Thanks you guys. >> This is great.
What Red Hat and HPE are doing your
power partnership, power ship.
Is that a word?
It is now, your power ship
>> I like that.
>> with GreenLake.
We appreciate that.
We'll look forward to having you guys guys back on.
>> Thank you so much, guys.
>> All right.
For our guests. I'm Lisa Martin.
He's Dave Vellante.
We are at HPE discover 22 live from
the show floor in Las Vegas.
This is just day one of our cupboards, stick around.
We'll be right back with our next guest.