Red Hat Portfolio and Strategy

you just at the highest level who who are we redhead is a company that has been focused on the enterprise we are over 20 years old over and the focus of our customer base is the large scale enterprise so you see on the left there that we're serving more than 90% of the fortune 500 that's really just to give you a sense of who we are talking to on a daily basis we're about 15,000 people spread globally around the world and the thing that we're particularly proud of is we became the first company to hit a 3 billion dollar revenue mark building everything from open source so to begin with software companies at that scale there there aren't a lot of those but specifically software companies at that scale delivering software built from open source technologies there's exactly one which is something that we're extremely proud of so we hit the the annual revenue rate of 3 billion dollars we're seeing more like quarterly billion dollar revenue so it this is a just an exciting thing and a really huge acknowledgment of the value of community development so something that I just wanted to highlight red hat is associated with open stores commonly so you can see what it means out of commercial context and then when you take that together who we are who we serve that led to the historic acquisition of IBM acquiring Red Hat for thirty four billion dollars and the the thing that I think is amazing about this is one again huge acknowledgement of the of the value and impact of open source on the industry at large and and it's all about the people the process that Red Hat follows because we're not a company that that has IP so that acquisition represents a you know an engagement process with customers a set of products built from open source and the people who are Red Hatters so for us you know really exciting last year specifically but even going back I've been at Red Hat for just about 15 years and it's always a dynamic and an exciting place because we sort of sit within communities which are leading the edge of technology development I just wanted to give you a little glimpse of the high-level view of what our process looks like so what you see here is in the center of this slide is representing a large number of open-source software projects we are an enterprise software company we develop everything using an open source development model and what you see is as as you spread out from that Center of all those open source projects you see what we will call community distributions if you're a linux person you'd be familiar with something like fedora that's what I'm running right now for door 32 just came out I've been on the fedora 32 beta leading up to our big event this week which is right at summit doing a lot of video recording and miraculously despite being bad everything just worked knock on wood setting myself up there but if you look at that picture we start in the center with the open source projects we curate that in combined software projects into distributions that are community focused and then ultimately we deliver those as commercial products to our customer base and you can see the product names on the far left and far right it's just an example of a set of some of our products and that the important thing to note is everything that we do is centered around open source and open source development and we're engaging with the community at every level so in the core project in some curated content and then all the way out representing bringing customers into this picture representing their needs into the community through commercial products now one thing that I like to highlight again we've been yeah focus on open source since our inception one thing that I like to highlight is if you look at open-source today it is a far cry from the early days where it really felt like a fringe radical movement and today open-source is is really a mainstream way of doing software development to the degree that I assert that open-source is the innovation engine for the industry I'm showing here just some statistics that are pulled from github and you can see there's over a hundred million git repositories now I understand that no there's there's Forks and and not every single repository is a representation of a standalone project but it just gives you a sense of the magnitude of activity that activity is is being contributed to by over 40 million developers which represent over 2 million businesses and organizations and yeah this is just github github is a is a large place where open source development happens it's not the only place but it just gives you a sense of this the sheer scale of what happens in open source communities and then when you consider leading-edge technologies things like AI and machine learning or what we'll be talking about today container platforms and container orchestration these are technologies where the leading edge is in the open source community so in the in the early days of open source we certainly had a lot of technology development that was taking the lead from proprietary software products today that that sort of flipped around and while we do see commoditization as a as a as an outcome associated with open source innovation is increasingly the important part of the open source communities at large what's important in the context of red hat is we're tapping into all of this innovation and looking for ways to harness that energy that enthusiasm that creativity and bring it into our enterprise customer base so enterprise customers you know look at open source as a way to tap into innovation but also there's some trepidation not everybody has the skills and capabilities of jumping right into an open source community so we're there to help create sometimes I describe it as help bridge that impedance mismatch which I'll talk about a little bit more later this morning so again I think it's important to say open source is the innovation engine for the industry we're in the middle of it all and we're bringing that innovation into the enterprise so as I was alluding to before open source is kind of this this leading-edge technology development environment and enterprise companies well they're they're enterprises they have a business to run they're they're really looking at finding a balance between keeping the lights on with all of the investments that they've made to date so typically this is multiple decades of investments in technology I often sort of make fun of the enterprise data center as a place for software archeologists to explore and find at least one copy of everything that's ever been created by by software vendors and it's you know it's only I'm only half-kidding there's some real truth to that when you go into the enterprise data center there's a long history of differing eras of technology it's all combined together and what's really critical when you think of it from the perspective of the enterprise this is what's running their business this is decades of investment potentially in building up what is managing every single transaction managing connections to customers and it's not something that any enterprise takes lightly these are mission critical workloads now having said that the world is changing is changing rapidly you hear all the buzzwords digital transformation this and that the the need to keep up with market demands for any enterprise is only speeding up and in creasing and so they're looking at this sort of challenge how do we maintain what we've built modernize where that makes sense and innovate and bring new technologies into the enterprise in a way that's not either destabilizing or just cost prohibitive so now that this is the balance that I think customers are looking for and again from that impedance mismatch point of view this is where RedHat plays we're in the middle we really understand the enterprise customer we've been working building stability building performance building reliability feeding security updates through consistent update streams that this is sort of the bread and butter of what it means to to serve the enterprise while we also sit in these open source communities we have thousands of developers who spend their entire days working in open source community projects bringing that technology into our product portfolio and delivering that stabili reliably into the enterprise and if you if you listen to analysts you might hear words like mode 1 mode 2 or different ways of describing the traditional enterprise data center and sort of the next generation where things are going I think it's important for our customer base to really find a path a path forward and it's even more important today where you know we're working from home there's questions around what's happening in the economy focusing on building an optimized stable infrastructure to really look at the cost of managing that infrastructure but we've done some some surveys across the customer base and seen that if you consider that the combination of existing data center investments some SAS services and third-party ISBE software procurement that typically represents on the order of 70% of an IT budget which means the vast majority of the tea budget is going to keeping the lights on leaving 30 percent for doing that new development and when you consider that pace of change broadly in the market the question of most IT leaders Minds is how can we sort of maximize that developer velocity without compromising stability and that's something that we try to bring in this build this bridge between today's world help optimize that which frees up resources to invest in building forward into more dynamic development environments which typically look like cloud cloud-like environments with whether it's literally a public cloud whether it's spanning a hybrid cloud that developer velocity and ultimately ability to quickly bring things into the market to address a new market opportunity is critical to to the enterprise customer base so our core strategy is what we call open hybrid cloud I'll go into the details of that in a moment but at a high level the open hybrid cloud for us sort of breaks down into three key areas so when you when you look at our software portfolio or product portfolio we focus in areas of hybrid cloud infrastructure so kind of the lower levels of the stack we folks focus in areas of cloud native development so how can you build these sort of next-generation distributed services built with in containers surfacing as smaller services whether it's a micro services based software architecture or the beginnings of breaking down a monolith into some smaller pieces without going all the way to the extreme there's there's a whole spectrum that's possible they're leveraging tools like CI CD to rapidly move software from a source code repository into production but that's a focus area for us in what we would call cloud native development and then across the the application and infrastructure layers we look at management automation so how can we improve the efficiency of running all of your infrastructure in your applications so those are the main three areas that we break the open hybrid cloud into in terms of our portfolio and this is kind of an eye chart giving you some visibility into the breadth of our portfolio so the red box represents that hybrid cloud infrastructure that I mentioned before and you see things like Red Hat Enterprise Linux kind of at the foundation of everything OpenStack Storage Red Hat virtualization a number of what you might consider infrastructure layer projects and products and then if you go up a little higher in that stack you see Red Hat OpenShift which is really going to be the focal point for the bulk of this conversation today red head open shift interestingly sits in both the infrastructure side kubernetes providing that low-level infrastructure giving applications access to compute network and storage but it's also very application centric so you can kind of think of it as being the application platform so it sort of sits in that middle zone the upper green box is all about our middleware and developer tools focused on things like integration process automation a set of runtimes and development tools that give developers just the velocity they need to the tool sets they need to improve their velocity and then off on the left hand side you see a set of automation and management tools bringing a variety of capabilities spanning that entire stack including Red Hat insights where we actually collect information from from deployed systems and from our customer base use that information to to develop an understanding of how software is used across the industry and then feedback recommendations to our customers when they are running and say a non-standard way or or or more simply just running something that's that's out of date needs to be updated we can even automate the process of discovery and remediation so so you know some interesting tools they're in in the very center you see Red Hat advance cluster management for kubernetes it's on the topic list for today it's very kubernetes focus which is why we put it associated with OpenShift but it is a management tool that's bringing a set of policy management by policy capabilities I think are really critical for efficient management of both applications and infrastructure for the enterprise so you know zoom out a little bit the open hybrid cloud is for us it's the platform that spans all of these different deployment environments whether it's in your enterprise data center on-premises deployed directly to bare metal whether it's virtualized in a software-defined data center or virtualized data center whether it's in a private cloud or out spanning multiple public clouds or increasingly today all the way out to what you might call an edge cloud our platform which is largely built from the underlying Linux capabilities which provide the low-level Hardware enable meant whether it's physical or virtual provide the primitives needed to create isolation between applications and of course provide an application runtime environment combined with kubernetes and red-hot openshift gives this platform that can deploy in any of these environments and builds total consistency so from an application development point of view from an operational point of view of the same platform spanning all these different deployment footprints giving a set of capabilities that allow you to build services modern applications that are you know cert surfacing as a set of services leveraging all of the enthusiasm and mindshare around containers bringing you know from from a commercial point of view bringing together a whole set of ISPs to build out this open hybrid cloud platform it's I have a person here and it's about you know competition I mean now that you have laid out is strategy which is not totally new I mean you are talking about is the thing for for why not so really hard your competitors I mean do you think that now you see the competition more from the cloud providers that you know as part of this stack and they are building to you know to to realize this hybrid cloud so an extension of their cloud ecosystem to to be directly in the on-premises that Center or do you see companies like Microsoft ok the original max of not Microsoft Azure that is going towards the other direction so it's more like you with all the company it's now building this hybrid cloud scenario so a little bit of everything I mean well it's it's a good question it's a common question that we hear and towards the end of the day Brian will go into some of the kind of details of the competitive landscape but at a high level if you you know the modern world is a combination of partnering and complementary solutions and competitiveness and the cheesy buzzword is coopertition and so when you look at the public cloud providers public cloud providers have a kubernetes service they are all initially the public cloud providers are very big on everything's moving to the public cloud if you go to the enterprise even the enterprises that have a an all-in mantra for the public cloud they tend to have some challenges getting the entirety of their enterprise or software suite onto the under the public cloud typically the way I usually describe it as common pattern 2500 enterprise applications the first 25 goes smoothly hit the 26th one it's pretty rough it's usually stateful doesn't fit well the cloud model and often the path on the cloud stops right there doesn't just slow down so the public clouds are are all embracing a hybrid model take a sure as a concrete example Ashur provides and a native service called aks they also provide a managed service called a ro which is as your Red Hat OpenShift service and so that managed service is Red Hat OpenShift sitting on on pleasure and you know made available to the broad customer base through through Microsoft directly so I think that's a great temple that coopertition aks useful in it's pretty it's pretty stripped down it's very kubernetes focused it doesn't have a whole breadth of tooling around it and so that from an enterprise application perspective something like OpenShift is is really a critical tool for addressing enterprise needs aks is a way to kind of get developers quickly playing with kubernetes so it doesn't necessarily translate directly to large-scale enterprise adoption and that's something that we see consistently across the public cloud so you know there's there's a world where we run on all the public clouds we have commercial relationships with public clouds we also compete at that kubernetes service level and then they're adopting a hybrid cloud model which is what we've been talking about and building towards for 5 7 years now so you know I think they're the competitive dynamic in that context is there's there's competition between us and public clouds and also there's a set of enterprise software companies that deliver more to the traditional enterprise that themselves are branding [Music] hybrid and talking about the combination of virtualization and and bringing in kubernetes as a as an application platform to to bring it to this slide what's consistent across all of these different either nerds or competitors in the market broadly I think we've agreed as an industry that kubernetes is a creek is a critical technology project the value that Linux is brought to the industry is you know measured in billions and billions dollars but more specifically the value is coming from the fact that everybody has seen this as a useful piece of infrastructure and has sort of standardized around it kubernetes is is bringing that same kind of standardization from an operating system perspective to a distributed systems perspective and so I think that's why we see all of you know all the clouds providing kubernetes services lots of companies whether they're startups or traditional enterprise vendors selling some form of kubernetes attached to their platform and it means you know for us the competitive nature is always changing but at an industry level we're agreeing on this being a critical platform or a critical software project and the value that that brings broadly to the enterprise is a an expectation understanding that this is the investments are here for the long term Linux is over 25 years old it continues to refine and grow over the course of three years about a third of the code bases to be still being rewritten kubernetes a lot newer over that same three-year period about 95% of the codebase is being rewritten under massive amounts of development but really all with an eye towards building this abstraction layer that allows things on top to evolve and allows things below to evolve and maintaining kubernetes as a stable distributed systems layer so I think it's so it's why we're so excited as well we got involved a very beginning help Google bring it out into the open source community so this is chief Townsend follow-up question to our reach a square about branding I still get this question to this date because openshift as a brand predates kubernetes that's true ok can you help MIT and even if I go to the redhead side today and there's tools there's forums there's talk about how move a OpenShift application an application built on OpenShift from their previous underlay to a modern container based underlay based on kubernetes talk to us about the brand OpenShift what is when I'm making a commitment to open to our open source and to redhead open ship product is the commitment to kubernetes or if the commitment to open shift also a great question and something I don't want to steal the thunder of the later presenters and I know derek has some content that really goes straight into this again I'll give kind of a high-level OpenShift one you're absolutely right it predates kubernetes so we had a v1 v2 and now we're up to v4 starting with v3 we introduced kubernetes for us that was a huge bet major shift in the underlying implementation concepts roughly similar in terms of what are now known as today has Linux containers but at the time we had these notions of gears and cartridges you know and an orchestration tier which was homespun and v2 and now we're using kubernetes to move images and schedule images but openshift is a platform that is built on kubernetes it's also directly integrated into that is Linux so that the the notion that kubernetes has to leverage an underlying worker node or a host to do work that's something that we bring together and tightly tightly in engineer so that the relationship and life cycle cadence between the kubernetes layer and the underlying operating system are well understood and then kubernetes itself there there was a presentation at a cube con probably three years ago at this point that tried to draw the analogy G of kubernetes being like the Linux kernel to a full distribution so kubernetes just being a critical in core technology but in order to really leverage you know you don't just deploy Linux as a kernel you deploy Linux plus an entire operating system around it to leverage the underlying kernel so if you look at openshift there's additional tools for logging and monitoring and you know CI CD pipelines and identity management and all these different pieces that aren't actually a part of the core of the kubernetes platform so Red Hat OpenShift as a brand is a distribution of kubernetes made accessible to the enterprise by bringing together all the different distribution components you need to make kubernetes the sort of kernel useful and accessible so it's very much kubernetes and in fact if you look at our workflows a lot of our examples show the some higher-level interfaces CLI or interfaces that talk about OpenShift as a command line but inside is kubernetes so if you want to think of it in terms of how you can intersect as a developer the kubernetes underneath you could do that furthest away and treat it like a past platform using your source code repository and get hooks to just trigger a CI pipeline that will build your applications containerize your applications you know put them into containers and then deliver that onto the open chef platform so we can get into this later in Brian's presentation or one of the other presentations but what I would like to hear today is the commitment of openshift to kubernetes moving forward because if I commit it to open ship five years ago and you guys found a better approach which is kubernetes I can't argue that if I'm relying on open shift as my kubernetes distribution without using all of that goodness that you guys providing as a pass and five years from now openshift as a product besides that some other orchestrate or some other kernel is there is a better way to provide that pass layer which you guys did so historically you have decided that one way was the right way now another way is the modern wait wait five years from now especially as you're dealing with enterprise customers how how do I know there's a commitment to kubernetes as a brand when it comes to OpenShift is is something that like to dig into later on in the day okay yeah we are all in on kubernetes we are the largest enterprise distribution commercially we're the early code developer helping Google bring it onto the open source community where the number do contributor to the project it is a huge focal point for us OpenShift is a kubernetes distribution you know and over the fullness of time what is the right underlying technologies is always an open question so it's really hard to just pin those things down Linux has been a clear focal point for the industry and we've been deeply invested in that kubernetes is emerging as another clear focal point for the industry and we're deeply invested in that so the that the notion I would put these as synonymous we are you know from a branding perspective we are a certified kubernetes distribution from the CN CF conformance test suite perspective we track very directly the open source release process and map that directly to our product releases so it is it is a huge focal point for us and we're in the mix helping define things like the OSI high standards to make sure we understand what image is or what image compatibility looks like tools for building developing different kinds of images that all of that is a part of our world and reflected in OpenShift as being a hundred percent built around kubernetes and Linux oh I'll just quickly zip through the this is just giving you some vision of the types of applications that are our enterprises are being more interested in as they roll forward so they got that stability world they're building net new applications those applications broadly speaking cloud native a great example would be AI and machine learning as next-generation applications and we've done quite a bit of work trying to make the data science work flow accessible to a broad set of developers in an open source project that we've launched called open data hub where we bring together set of technologies and even include our our certified is the ecosystem in that project so that you can quickly share ideas refine models and then integrate those into applications so you can surf build a model surface it with a REST API and integrate that REST API for inference into your application and deliver a quote/unquote smart application or intelligent application and increasingly we're getting we have a lot of conversations with our customers about bringing this all the way out to the edge and a lot of the applications that we talk about with our customers in this context are data driven machine learning based edge applications so kind of this broad view of where Redhead OpenShift fits the role of this open hybrid cloud core platform if you think of a cloud which we were talking about earlier I think a cloud provides two key features one is operational efficiencies if you look at a cloud it's a managed service somebody else is running it for you that's like infinitely efficient to increase developer velocity and that developer velocity is about having a breadth of capabilities accessible as API is easy easily onboard and into your application if you look at operational efficiency the traditional Enterprise is about a hundred times less efficient than a hyper scaler at managing a single server so our focus is on bridging that gap and reducing the cost of running infrastructure within the enterprise and then looking at a the enterprise the faster you can build and deliver software that is directly associated with revenue growth so looking we did participate in a study with McKenzie where they showed that hire a hire developer velocity index correlates to five times faster revenue growth so it's just a clear way to say our focus is building developer velocity our goal is to enable developers to just every line of code is business value and on the operational side establish high level policies where the system itself is autonomous and can manage the details that make it so part of that policy I know that that's sort of the aspirational direction we're very well on that path and helping reduce the cost of operational infrastructure and accelerate the speed of development I think as we move forward in time that operational efficiency and developer velocity needs to span a highly distributed environment inclusive of the edge so multi cluster management we'll talk about with a CMS critical that's data as a central actor also critical and then the events associated with recognizing something in the data whether it's an anomaly or whether it's a pattern match that event becomes a trigger for service functions that model of event-driven function has a service oriented programming highly efficient allows developers to focus just on the key business logic and that's just a view into the future of where openshift is going as this open hybrid cloud platform distributed out to the edge supporting variety of workloads and enabling developer velocity I will skip to this last slide is it's a major eye chart this is really what we're building it's open in every way we have an open ecosystem we built from open source we embrace open standards it's hybrid across all of those different footprints and it's a cloud meaning it gives that operational efficiency it creates developer velocity and we'll talk later about the details of things like bringing a service mash or bringing a function as a service serverless environment supporting AI and ML being connected to our customers so that we can gather data use that data to develop models to further improve the operational efficiency of this infrastructure automate the patching and lifecycle management through operators as a technology that in codifies the sre and the the smarts of an SRE into code that can help manage and support highly efficient operational environments and all the telemetry associated with that

Channel: Tech Field Day

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Id: fJJe3ZA9jpQ

Length: 36min 32sec (2192 seconds)

Published: Thu Apr 30 2020