The Open Source CIO

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Red Hat did such a great job. In pioneering what I call open source one DOTTO. The free and support model that their scale and capacity really made them a one off as a startup to be able to go and create the same backend. Infrastructure is quite expensive to do so. Let me go one step further here. I don't believe there will be another red hat with the red hat business model however I believe that there will be many many many successful open source companies into the future that have different business models from red hat that are further unlocking the potential of open source specifically open source as a service if we look at the history of open source as soon as the economics come into balance with the technology we see entrepreneurs flourish in the community flourishes because their sustainability and. I think this whole sas you know open source as a service has unlocked a whole new. Economic Model Peter's article ended with. Maybe even red hat should think about becoming the next Amazon and I think alluding to this kind of SAS era that we're in. How has that changed? How you're approaching open source and open source communities. Well I think our model started off as a on Prem subscription which was pretty unique at the time and as the cloud the public cloud has taken home you one of the benefits that we see is all those technologies are built on the core asset that we have which is Lennox and the different providers have different nations of that technology different distributions of it. The approach was to make sure our technology runs on all of them because to us. It doesn't really make a difference so we have partnerships with all of the major cloud providers and we obviously have our capabilities as well and so the idea of this hybrid world is the one we placed a lot of bets on the one that actually fortunately has evolved to sort of be the dominant design. You talk a little bit about the dominant design. How do you view this emerging enterprise architecture? Where are we in in that open or hybrid future? There was this view about five years ago. I would say that the cloud takes over there would be no more on. Prem there would only be one cloud provider and now what we're seeing is that there are multiple cloud providers and the pendulum has swung back to where there's a right place for certain on prem software and infrastructure and applications and there's the right use of the cloud and there are many tools now that makes the integration of public and private. I hybrid seamless across different domains. And once we have that cheers really know Ed your core. There's just compute it when we first started studying cloud and all different stations of what it was going to be the hype that surrounded it it was a binary thing right. It was either. You're all public or you're all on premise. It's like come on. That doesn't make any sense. So what has come to fruition? Now I think is starting to recognize all the choice that's available all the just incredible amount of innovation. That's taken place that for someone in a job like mine. It's our responsibility and our job to take advantage of it so the means by which I can manage it is almost as important as the means in which I can. Just use it. If you're in my job your partners and other functions in the company shouldn't care where what what's underneath the solution. All they care about is that the solution is correct and it's optimized both for agility and cost purposes for whatever problem. You're trying to solve Peter. You've said software as a service has really cracked open open source in terms of its valuations in its potential but at the same time. The end customer doesn't really know if it's open source or not from a development standpoint we get all the innovation the community the bug fixing that open source has been great at for the past. What THIRTY FORTY YEARS? But really we can monetize open source at the full value of that software because people don't care all they want is the service. Just give me whatever that software provides and I don't really care whether it's open source or not and by the way I'm willing to pay full value for that stack in the one data. Oh you're the economic problem and I ran an open source company in the one data ear. I know the economic problem is a buyer would compare would say okay. You're giving away your software for free and charging for support and I'm GonNa go compare you to your proprietary counterpart and the proprietary counterpart charges eighty cents for the software and twenty cents for support. Therefore we're going to only pay you twenty cents because all you're doing is providing support now if it's run as a service and support and the service of the software is all built in together. It's a hundred cents and let me also add that going from open source. Bits the source code to creating a reliable manageable service. There's a lot of work in that so it's not like you have open source and all of a sudden you cobble this stuff together and you get open sources service you know. There's a huge difference between a project and a product and that is really really important. Especially if you're in in my role in a company and you inevitably going to have members of your team saying well we'll just we'll just get the free version right and it's like okay. Well who's GONNA PATCH IT? Who who we relying on to provide feature function updates integration etc etc etc. So the notion that people don't care because it's a service. I is true to a certain extent but the person is ultimately responsible ought to care on. Who's behind the scenes? The good thing is all this innovation. That's happening especially in the software like in the infrastructure and clouds fees. It's all user driven innovation. It's all people that are practitioners. That have a problem and they tried to go solve the problem. The creative opens and there is a rap group that rallies around it and you know the dominant design forms and then it take the upstream project and create products. So you mentioned this idea of the difference between a project and a product. How do you evaluate or think about that difference? What tells you something is no longer just a project. It's a fully baked product you as an. It buyer might want to invest in. Well I think when a company stands up and put some service around it anybody can go get the community version of a piece of software and use it. As they see fit the minute it becomes a product is when a company says. We offer a business model around that particular project. It's interesting what happened with the role of it and a lot of companies for the longest time. What IS OUR CORE? Competency was the discussion and we said well. We're really not great at it so we should try to run that at an optimal cost. And you know look for partners that can run it better than we end because we're not in the IT business and back in that time open source was mostly a commodity play. That's how red hat got put on the map was. We were commodity. -tising and product nowadays where every company is all of a sudden a technology company and companies are looking to. It is. We're going to use technology to disrupt our competitors. People are in a job like mine. After sort of retool ourselves having the capability for an one individual team to run a distribution of open source software community version is more tricky than having a trusted adviser partner with you and do side by side and as a buyer. I encourage everybody to inspect pretty heavily. What's behind the scenes there? And how do I know who's handshake when everything goes really

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