Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Red Hat, Inc. (NYSE:RHT)

Cloud Technology Update Call

June 06, 2012 11:00 am ET

Executives

Brian Stevens - Chief Technology Officer and Vice President of Engineering

Bryan Che

Brian Stevens

Hello. Thank for joining us. This is Brian Stevens, Red Hat's CTO and BPO Worldwide Engineering. I want to share a few comments with you before we begin with today's announcement.

Public cloud providers have forever changed the IT landscape, both for developers and IT alike in making infrastructure capacity available on demand. Seemingly, infinite resources are now available if needed and when needed to solve challenging business problems instantly, no longer hamstrung by arduous procurement and deployment cycles in a cost-effective manner.

With IT already challenged in maintaining existing infrastructure and applications, it's been difficult for them to synthesize public cloud capability and the solutions that a lot of businesses can take advantage of.

Most IT departments have significant investments in compute and storage globally. Their focus is not how they start anew, but rather how they unify their existing internal resources, augmented by the elastic resources available in the public cloud, unified into a seamless cloud services for their internal customers, a hybrid cloud an open cloud. And in doing so, they will not only deliver greater value elastic on-demand resources to their customers, they will be able to do so in a manner which ensures critical IT governance and security in a cost-effective manner. They will leverage innovation to create innovation through the building of open hybrid cloud solutions.

Shortly, you will hear from a Red Hat customer and partner on how they take advantage of Red Hat solutions to build hybrid cloud capability. Gabriele Viebach, the CEO of eZ Systems, will discuss with you the flexibility that has enabled them to innovate, relying on open standards and open source to provide a richer service to their clients in a very competitive landscape.

But first, Red Hat's Senior Director of Cloud Marketing, Bryan Che, will take you through the details of today's announcement on achieving open hybrid cloud solutions with Red Hat. Here's Bryan Che.

Bryan Che

Thanks a lot, Brian. Now today we will be talking a little bit more about open hybrid cloud and some of the most important challenges that enterprises face today in terms of how they can adopt cloud computing.

Now if we take a look at this chart here, this summarizes a lot of what Brian Stevens spoke about earlier, which is that public cloud computing has drastically and dramatically changed the IT landscape. Now in addition to making computing capacity available on demand for users and for developers alike, public clouds have also introduced an interesting dynamic to enterprise IT. And that is, it has introduced a level of transparency never seen before in the industry around the capabilities, the costs and the efficiencies of what is possible in running an IT data center.

So for example, as most enterprises today compare their own ability to go ahead and instantiate, provision and run infrastructure in their own data centers compared with what the public cloud providers publish and deliver in their own ways, they typically find that the public cloud providers are delivering tremendously more efficiency and tremendously more agility than what they are able to achieve today.

And so one of the challenges that enterprise IT faces today is how can they go ahead and deliver the same kinds of capabilities, the same kinds of efficiency and agility from their own infrastructure across their own application but doing it in the context of their existing applications and infrastructure?

Now as we take a look at most enterprises, the goal, of course, is to become much more agile and efficient, like the public cloud providers. But unlike public cloud providers, enterprises aren't starting from scratch, and they have quite a lot of existing challenges that they have to deal with even before they consider taking on the new challenges that cloud computing brings.

For example, today, enterprises would like to be able to much more quickly instantiate and provision their infrastructure like the public cloud providers can do. But as they start to consider adding self-service capabilities to their own enterprises, what will that do in terms of the increased management and complexity that might bring about. As they start taking a look at managing across very diverse silos in their infrastructure, as cloud computing is just going to add more management complexity or is it actually going to simplify what they have to deal with.

As they consider the application that are so important to the running of their business today, what is cloud going to do to these applications? Are they going to run them in a public cloud? Are they going to run them in the private cloud? How are they going to manage governance and compliance across these applications, as they switch to new types of infrastructure?

And finally, as enterprises continue to be concerned about issues like control and security and compliance, how are these concerns going to adapt into this new world of cloud? So while the world of cloud promises quite a lot of new capabilities and efficiency and agility, it's very important also for enterprises to be able to get the capabilities of cloud in a way that addresses these concerns. And that's where Red Hat's CloudForms comes in and that's where Red Hat's focused on delivering open hybrid cloud, also, becomes so important and so critical for enterprises.

Now Red Hat CloudForms is a product that focuses on solving 2 high-level problems for enterprises. So I will go ahead and address, first of all, what are the 2 problems that CloudForms focuses on? And then we'll take a deeper look at some of the capabilities within CloudForms to go ahead and tackle these very important challenges.

So let's take a look at the first problem, first of all. Now we had talked about previously that enterprises are very much attracted to cloud because they wanted to go ahead and get the kinds of agility and efficiency that public cloud providers are able to deliver. But how can they do that in the context of their own IT infrastructure?

One of the major challenges that enterprises face is that they have quite a lot of complexity in existing applications that they're dealing with today, and that introduces a challenge for enterprises as they start to consider adopting the cloud. For example, as you consider virtualization technology. We all know that virtualization technology has brought about tremendous benefits for enterprises. It's enabled them to consolidate their infrastructure, to drive up utilization rates and get better flexibility. But virtualization also introduces much more increased management complexity. You start dealing with issues of VM sprawl, where you have many, many more virtual machines to manage than you had physical machines before. You start dealing with multiple virtualization clusters, and you have different users and different groups accessing these different virtualization clusters across disparate hardware groups.

Many enterprises now are also starting to deploy multiple hypervisors into their environment, and that introduces new management complexities. Here's my management set of tools for one hypervisor, and here's another set of management tools for that other hypervisor.

We see many enterprises starting to adopt public cloud providers, and as developers and users start going to public cloud providers for the seemingly infinite and instant capacity that they can get, how do they go ahead and reconcile this capacity with what they're doing on-premise in their own data centers? How do they get a handle on what workloads are running in the public cloud? How do they go ahead and ensure compliance and governance and security around those workloads as well? And finally, even though enterprises are starting to use public clouds, even though they're starting to virtualize with multiple hypervisors, they already have many virtualization clusters and many virtual machines, the majority of workloads today still run on physical machines.

And so across that whole mix, one of the challenges that enterprises have is that they have a vast diversity of infrastructure, and that doesn't even begin to speak to the many different applications that are running across this diversity of infrastructure.

So the challenge for enterprises then is, how can they go ahead and take all these existing infrastructure share and start to automate it and bring efficiency to it so that they can begin to get cloud-like efficiencies but still in the context of this kind of heterogeneous and hybrid architecture?

And that's where the first solution from CloudForms comes in. CloudForms focuses on solving this kind of enterprise complexities by delivering an open hybrid cloud that lets you build a cloud out of all your resources, spanning physical infrastructure, your choice of virtualization technology and your choice of public cloud providers. Only by building a cloud across this kind of heterogeneous and hybrid infrastructure are you able to bring the benefits of cloud computing across everything that you're doing, and not just a subset of what you're doing. It's by bringing the benefits of cloud into this kind of complexity that you'll be able to get the full benefit of cloud across everything that you're doing in your enterprise IT today.

So that's the first challenge that CloudForms is focused on solving. Now there's another very important problem that you have to solve as you take a look at adopting cloud computing from an enterprise standpoint. And that is, how do you go ahead and actually manage your applications in the cloud? Now it's not enough just to go ahead and set up a cloud. You can have the best cloud in the world in your own data centers, and you can have a fantastic hybrid cloud, but what are you going to do with your applications?

Now enterprises today typically have a great amount of processes and tools that they have set up to manage their applications. They go ahead and do things like deliver standard operating environments, manage goal builds, they manage to compliance and regulations and security, and provide governance and updates to their applications.

Now one of the key tools that IT uses to manage all these processes today is software provisioning. When applications get run, they are installed by the enterprise IT department so that users can go ahead and run them. Now one of the great benefits of cloud computing is that it introduces a notion of self-service access. Developers and users alike can go to a self-service portal and get on-demand access to applications and computing capacity.

But one of the challenges that self-service access imposes is that it takes away this crucial tool of IT provisioning and takes it out of the hands of IT and puts it into the hands of end users and developers who don't care about governance and security and compliance, and all these other important issues. So this question then becomes, how can you start to improve computing in a way by introducing cloud, while still preserving the ability to manage applications and the richness and the complexity of these application workloads in this new world of cloud? Otherwise, enterprises aren't going to be able to take full advantage of what the cloud is able to deliver to them.

So that's the second challenge that CloudForms focuses on. And let's go ahead and take a look now at CloudForms itself and how it goes about solving these different challenges. Now the first challenge as I have spoke about was dealing with hybrid and heterogeneous infrastructure. The fact that you need to go ahead and manage across a wide range of technologies from physical to virtual to public cloud infrastructure.

The other challenge that you have to deal with is managing applications in the cloud. And CloudForms focuses on both of these capabilities. And not only does it focus on both of these capabilities, but it also integrates them together to be able to provide governed self-service access across an open and hybrid cloud. So let's go ahead and take a deeper look at each of these 2 capabilities and then how they come together to deliver this kind of governed self-service access.

Now the first capability that CloudForms provides is the ability to build and to manage open and hybrid clouds. Again, CloudForms gives you the ability to manage and build cloud infrastructure across your choice of physical systems, virtualized technology, as well as public cloud providers. The way that it does this is by leveraging a key open source project at the upstream Apache Deltacloud. Now Deltacloud, if you will recall, is an open source project focused on defining open standards and open APIs around cloud computing management. CloudForms goes ahead and takes advantage of the rich open source ecosystem that has evolved around Deltacloud to be able to take these kinds of management capabilities in an open and in an open source manner to be able to manage a richly diverse set of infrastructure.

Because of that, CloudForms provides quite a lot of substantial benefits as you start to implement your cloud. First of all, you aren't locked in. Because you are using the open source set of APIs, you have the freedom and the flexibility to adapt your cloud to your choice of technology and your choice of infrastructure. In these early days of cloud, it's critically important that you don't lock yourself into any one provider and any one technology because we don't know what is going to be coming down the road. You need to be able to architect your cloud infrastructure and your cloud architecture to be able to take advantage of all the innovation and all the technologies that are going to come.

Second of all, you need to be able to have a cloud that is able to extend to everything that you're doing in your IT today. You don't want to have a cloud that can only work with a subset of your infrastructure. You don't want to work with a cloud that you have to deploy brand new side-by-side with your existing infrastructure, and then go through a lengthy migration process in order to be able to get the benefits of cloud.

With CloudForms, because we focus on supporting a diversity of infrastructure through open source and open API, we give you the ability to go ahead and adopt cloud at your own pace, with no lock-in, and to be able to choose the best platform and existing technologies, as well as new technologies to go ahead and build and manage your clouds.

And so across all that IT complexity that we talked about, where enterprises have different hypervisors and different virtualization clusters on public cloud in physical systems and so on. CloudForms is able to go ahead and assemble a unified cloud across all that diverse infrastructure and give you cloud automation across all of it. This makes it very simple and very easy and powerful for enterprises to get the full benefit of cloud computing across everything that they're doing.

And as I mentioned before, it's not enough just to go ahead and be able to stand up a cloud. CloudForms helps enterprises to go ahead and build a hybrid cloud across private and public cloud capacity, as well as across heterogeneous infrastructure technologies. But it's also very important to be able to go ahead and to be able to manage applications in the cloud.

And CloudForms provides quite a lot of sophisticated capabilities in this dimension as well. First of all, of course, CloudForms provides the ability to go ahead and provide self-service access to capacity. However, CloudForms provides access not just to infrastructure resources like CPU or storage capacity, but it also provides capacity and applications as well. And not only does it provide the ability to instantiate and provision application, but it also provides the ability to manage the life cycle of these applications in the cloud.

For example, an enterprise can go ahead and put into the cloud an application definition from their corporate standard Java development environment. Now that corporate standard Java development environment will show up and be available for self-service access to developers. However, when the enterprise wants to go ahead and apply a security patch to instances of this Java development environment, when the enterprise needs to go ahead and push out new content or if the enterprise needs to be able to monitor and govern what is going on with these applications as they run across different cloud providers, are they going ahead and running in the public cloud, are they running on my private virtualized infrastructure and so on. CloudForms is able to manage applications across that whole life cycle.

Do you want to do your developments in the public cloud and then push into QA resources in your own private cloud? CloudForms will be able to handle that with the exact same application definitions. Do you want to go ahead and push out security updates to applications that are running in production on your cloud? CloudForms will be able to deal with that as well.

And even though these applications weren't provisioned by IT to be a self service, CloudForms automatically tracks and registers and instantiates and manages these applications. So it knows what's going on in your cloud, can deal with the complexity and the diversity of applications there. This is a critical, critical capability for enterprises because it's not enough just to be able to stand up a cloud. They also have to be able to work with the applications in the cloud if they want to get the full power of what a cloud can deliver and enable for them.

And so if we go ahead and put these 2 capabilities, we start to see what is possible within CloudForms, and that is delivering governed self-service access. For example, an enterprise that is using CloudForms will be able to stand up a hybrid cloud infrastructure spanning public cloud, as well as private resources in their own data center. Once they have set up such a hybrid and heterogeneous cloud, they will then be able to set up applications to be able to manage across this cloud. So you have capabilities for both administrators, as well as end users, coming together in an integrated fashion.

Administrators will be able to set up and give access to this cloud capacity a unified fashion. End users don't have to worry about, am I going to physical infrastructure? Am I going to virtualized infrastructure? Am I going to public cloud infrastructure? It is all available in a uniform way towards them, all controlled via policy by the administrators.

Additionally, the administrators will be able to create applications that are available in the cloud, and end users will have self-service access to these applications. But the administrators still maintain full control over the life cycle of these applications. And it's in the marrying of these 2 crucial capabilities that CloudForms solves for the enterprises, how do you deal with this challenge of enterprise complexity, how do I go ahead and get the benefits of efficiency and agility that cloud computing promises but in the context of great diversity and existing infrastructure.

Enterprises don't have the luxury that cloud providers do of standing up brand new infrastructure and doing greenfield deployments of cloud typically. And so by dealing with this kind of complexity heads on, CloudForms is able to solve this kind of challenge for enterprises to deliver the benefits and the efficiency of cloud, while coming into an existing enterprise IT environment.

Now one of the capabilities that CloudForms provides, which demonstrates the power of these 2 capabilities coming in, is by solving the problem of how do I get one application into a hybrid cloud environment across different kinds of technologies. For example, I talked about earlier that CloudForms gives you the ability to manage hybrid clouds across public cloud infrastructure and your choice of virtualization or physical resources. Additionally, CloudForms provides the ability to have self-service access to applications.

Now one of the great capabilities that CloudForms does to enable both of these coming in together, is to be able to provide application blueprints within CloudForms. So an application blueprint provides a templating language that describes how do you instantiate an application in the cloud? However, one of the unique things that CloudForms does is we are able to take this application blueprints, which shows up onetime in the application catalog, and deploy it from that same blueprint definition into heterogeneous different technologies and different providers.

For example, let's say, again, that you have a corporate standard Java development environment that shows up as a blueprint in your self-service catalog. And now I want to be able to push that in a hybrid cloud either to Amazon or to VMware or to Red Hat Enterprise Virtualization. CloudForms will actually build the native format of all these different technologies in order to be able to instantiate the same application from the same definition. So from that same application blueprint, CloudForms will generate the AMIs to push into Amazon. It will generate the vmdk format for VMware and push it into vSphere. It will generate the KVM images for Red Hat Enterprise Virtualization and push it into RHEV and it will configure and dynamically update and provision these applications across these kinds of the disparate infrastructure. So that from that same application blueprint, you can go ahead and manage your applications across the diverse set of providers and a diverse set of technologies.

This provides a great number of capabilities for enterprises to be able to standardize their applications across different management silos that they have today. And it provides the power of the cloud to be able to deal with automation and efficiency across the diversity that enterprises are managing today.

So I'd like now just to go ahead and give you a very brief demonstration of this capability of CloudForms and show you how from one application blueprint definition, we can go ahead and instantiate that same application into a hybrid cloud across different technologies.

[Presentation]

Bryan Che

So as you can see, with CloudForms, we can go ahead and take one application blueprint and provision it to an open hybrid cloud spanning multiple technologies and multiple cloud providers. And this marries the capabilities that CloudForms brings together in terms of how can we go ahead and build an open hybrid cloud across disparate infrastructure and also manage applications in the cloud.

It's very important to bring both of these capabilities together if you want to go ahead and solve that fundamental enterprise IT challenge of how do I go ahead and provide efficiency and agility in the cloud that deal with existing applications and deal with existing infrastructure?

With CloudForms, we provide the ability to do that because we marry these 2 capabilities together. And in doing so, we provide enterprises with the tools that they need to be able to have the kind of control that they want from an IT's perspective. They're able to deal with their choice of existing infrastructure, as well as new infrastructure, as they go forward because they're not locked in.

They can go ahead and deal with the richness and complexity and diversity of the applications that they have in the environment, and deal with that all cohesively from the same cloud management system. And of course, because CloudForms is open and provides an open hybrid cloud, they have the freedom and the flexibility that they need to adapt and go forward and evolve their architecture and their business in this fast-moving age of cloud.

Now I'm very pleased to announce for you today that after going through an extensive beta process around the world with many of our leading customers, we're announcing the general availability of CloudForms as of today. Now CloudForms has achieved great success, so far, in their customers and we are looking very much to working with their customers around the world, on an ongoing basis, in terms of delivering these kinds of capabilities and delivering these kinds of open hybrid cloud towards our customers, as they look to solve these very, very challenging problems.

To date, we have received quite a lot of acclaim, both from our customers and as well as from analysts alike. And we're thrilled with the progress that we've made across this technology. Now one of the greatest proof points, in addition to the accolades and the positive comments that we've received from a wide variety of sources, is the fact that we are also using CloudForms ourselves here at Red Hat.

Now if you remember, last month, we provided you with an update around our OpenShift Platform-as-a-Service. Now OpenShift is a leading open cloud application platform for enterprises. Let me recap for you briefly some of the brand new capabilities that we announced around OpenShift that we are going to be introducing.

First of all, OpenShift provides the leading application development platform by marrying capabilities around Red Hat Enterprise Linux to deliver powerful multi-tenant security, that is built into the application platform, by providing a next-generation application middleware and JBoss, that is fully Java EE6-compliant, and optimized to run in the 100-meg footprint. By delivering brand new capabilities and frameworks and powerful richness from Spring to PHP to Ruby on Rails to Node.js, all standard open source frameworks that can be delivered and deployed in a wide choice of environments so that developers have the tools and the languages and the frameworks that they need to write their applications.

But that's not all. Red Hat is able to take this OpenShift platform and to give enterprises the choice and the flexibility that they need to manage their Platform-as-a-Service capabilities in a variety of different styles. Of course, OpenShift is available as a hosted service today at openshift.com.

Red Hat is also going to be bringing this OpenShift capability on-premise to enterprises in 2 different management styles. One is DevOps, which provides developers the ability not only to write their applications, but to operationally control their applications. We will deliver the OpenShift platform with IT Ops, which provides developers with the self-service access that they want, but a more traditional, centralized IT governance structure around applications. Additionally, developers will be able to take that same OpenShift platform and use it off-line in their own laptops.

And then finally, across all these different management styles, Red Hat will be delivering OpenShift into this same open hybrid cloud model so that developers will be able to take these same platforms and applications onto their choice of public cloud providers and private infrastructure.

Now one of the key elements and technologies that we are using to be able to deliver these kind of capabilities with OpenShift is by leveraging the technologies from within CloudForms. And so CloudForms provides not only a great benefit for our own customer base and for enterprises, but also as we take a look at operating and delivering the next-generation cloud application platform for developer. We are using that exact same technology within CloudForms to power many of these kinds of capabilities around OpenShift and around Platform-as-a-Service. And it's because of this focus on applications, and it's because of this focus on open hybrid cloud, that we're able to bring this richness of the OpenShift platform into a variety of different management styles and into a variety of open hybrid clouds.

Now as we take a look at OpenShift and as we take a look at CloudForms, this is a part of a broader Red Hat portfolio all focused around delivering to our enterprise customers the value and the promise of an open hybrid cloud. And in fact, CloudForms is part of our very rich ecosystem of Red Hat products, all focused on delivering to customers the best capabilities with no lock-in at every layer of the technology stack. Whether it's from the hypervisor to the operating system, to virtualization technology to storage, to hybrid cloud management and application management with CloudForms to Platform-as-a-Service with OpenShift. All these technologies and capabilities come together to deliver on a promise of an open hybrid cloud, so that enterprises can start to achieve the agility and the efficiency and the benefits of cloud computing, but with the strength of an enterprise platform and in the context of their existing infrastructure.

And now I'd like to turn it over to one of our great partners, Gabriele from eZ Systems, who is going to talk you through some of the work that they've been doing with Red Hat around open hybrid cloud.

Gabriele Viebach

Thank you, Bryan. Very kind. For those of you who are not yet familiar with eZ, eZ Systems is a Norwegian software company. We have some similarities amongst the 2 companies, such as openness and standards. We are also an open source, commercial open source company. We started in 1999 as a web content management system and the product is called eZ Publish. Can you go in the next slide?

So eZ Systems is founded in 1999, and we are now around for more than 13 -- 14 years. One of the, I would say, oldest players in the content management industry. We grew with a number of media and publishing customers, and our solution was designed and built around the requirements of this industry. We were always very convinced that if we can meet the requirements of the publishing and media world, which are very complex and margin-intensive, then we can also meet the requirements of lots of other enterprise customers in other verticals.

So what we’ve done on the course of the past 1.5 years is to transform eZ Systems and also the product from a classical web content management vendor playing amongst others in the web content management fields managing digital content, to a unique platform player that allows not only to create and deliver web digital content, but also enables the systematic improvement and optimization of it.

And we are spread across the globe. We are based in 10 or 11 countries physically with subsidiaries, but we also have a spread of our software of about 250,000 to 300,000 installations across the world in 160 countries. We have a business community working with us, of which around 80% of those community members are making a living on our product on a daily basis, so we have a broad variety of different innovation drivers. And I would like to take you through a short journey of what we've done and with innovation and how the combination and the unique world between Red Hat and eZ in the hybrid mode and hybrid cloud is coming together.

Next slide, please. So the platform is all about experience. If you look at the world of websites in today's world, it has rapidly changed. The entire usage of the Internet, and also digital content of all kinds, have massively changed and went through a paradigm shift by all-in-one devices. For instance, by the ability to deliver with infrastructure, such as Red Hat offers with OpenShift, the hybrid cloud and the OpenStack; the ability to manage content digitally in a completely different way and manner.

So what we are -- what eZ stands for is to create a compelling experience with a seamless orchestration of targeted solutions. And can you further click, please. The foundation for this platform -- oh no, you're clicking off a PDF, so this wasn't any major slide. Then you need to go back, please. And I have to talk the audience through this, all around this. If you look at the 6 pillars, then -- the foundation for this platform is the web content management system. We are ready to create any kind of experience through multichannel delivery of our platform. We are creating and delivering a digital content through multiple channels. And if you want to create a true differentiating customer experience going forward, then you need to have a number of other capabilities delivered out of one platform approach that allows you to look at a website and the digital presence or a digital business model, also, from a life cycle's perspective. Very similar to how Red Hat is approaching infrastructure.

So the availability and the ability to manage a life cycle and to have a sustainable investment in terms of systematic improvements, and the ability to also adapt quickly to future requirement and deal with disruptive technologies, that's something that this platform allows you.

Click further, please. Next slide. There it comes now. Here are the 6 elements of what eZ is going to -- these are the 6 elements of the platform that eZ is delivering. So to be able to deliver a true customer experience management, you need to deliver, you need to optimize, you need to personalize, you need to recommend and you need to connect and easily integrate and adapt into other infrastructure. And we fully built this platform onto the Red Hat stack. And we are delivering our platform out of the cloud with all of the different components and as a seamless experience for our implementation partners and the customers using this platform delivering solutions to their customers.

Click one more. And this is also being delivered out of the cloud. So on the next slide, please. The 5 pillars of how eZ is going -- is innovating. Very similar to the ecosystem that Bryan was talking previously about at Red Hat. We have a go-to-market model through and with implementation partners. And through the delivery of the platform out of the cloud, we create a much higher degree of freedom and simplicity for our implementation partners to configure the platform on customer requirements or upon customer requirements. It's being very flexible in order to improve and adapt. We are open and standard based, and that translates also into a no vendor lock-in. And we are open, also, out of the cloud.

So the innovation drivers are partners and our conferences that we are doing on a biannual basis. It's our community and related community, it's research and development relationships that we have built and we maintain. And also, one unique institution called the Product Advisory and Innovation Board, where we are asking participants of the eZ ecosystem to contribute to our roadmap. And also to verify and prioritize the roadmap that we are building to make sure that they act as the sounding board for future functionalities of our platform. And we can, with that ability of different drivers of innovation, we have the ability to be highly adaptive. That means that we cope with disruptive technologies and we can rapidly change to be ready for future business models, without the disruptive way of ripping and replacing infrastructures and start from scratch.

Next slide please. So how is Content-as-a-Service layer are -- Content-as-a-Service platform could be seen as infrastructure? So it's knowledge work, which is a high-cost factor in today's world. If you look at how much time people adapt, and the knowledge workers in our modern world are spending by trying to find data and data growth massively, we are all looking at big data handling. We are looking at no longer millions of content objects, we are looking at many, many billions of content objects going forward. The data storage is exploding across the globe. And it will be harder and harder and harder to find the right information in time and at the device and the place where you're looking for it. If you imagine, for instance, people who are working in contact centers and they are responsible for claims management, for instance, then it's very, very critical that they have one unified view on customers and the picture. And we are able to cope with this in an intelligent way in order to deliver this.

Next slide, please. So information and time to search for information is a very critical factor in today's world. And we believe that we can immediately create significant business benefit. By the combination of Red Hat and eZ, we are able to -- have led organizations better monetize on their knowledge workers. There are testimonials from certain customers, such as big insurance companies, they say, "If we can improve only 1% of speed in finding information in time throughout our organization, this means around EUR 50 million to EUR 100 million of savings a year."

And I think there are a multiple examples. You may know this with yourself. Maybe this is a solution for your company or your enterprise as well, how to optimize and find the right information from any device and from any place. So it provides content not only based on search indices or other things, but also allows to automatically categorize content. So we have built in an intelligent way of indices, and you'll see that in the last slide, and also the delivery. So we are coping, together with Red Hat, with a memory technology that allows intelligent analysis and the instant delivery of any content anywhere and out of any kind of complexity.

Next slide, please. We've tried to give you 4 examples of how you could concretely take advantage of this Content-as-a-Service layout. There are multiple areas of improving knowledge and provisioning in the daily life of customers. Bryan talked earlier about the self-usage of systems. I can happily say that we are using our own technology in-house as well. And we have experienced in a number of projects and customer meetings the need to leverage technologies for the cloud and to combine things hybridly. We are doing the same. So we are giving our implementation partners and customers the freedom to choose hybridly and also to have the flexibility to switch from on-premise to cloud and from cloud to on-premise, or to even look at a more hybrid way of delivering solutions to both their end customers and clients.

So we could address manual search, of course, with entering keywords and [indiscernible] the results. We can also enable machine search in a very intelligent way across landscapes and stacks. We can do content ingestion. And of course, human knowledge submission, which is a huge market by itself. If you look at the next generation of learning and the next generation of self-servicing, then this is an -- I think, also, one area or one vertical market, where we are going to invent new standards and new paradigms, and we will see new devices being introduced in order to enable the modern world of learning.

Next slide, please. So whilst Bryan was talking about Platform-as-a-Service enablement, we deliver out of the cloud Platform-as-a-Service as well. This should have been the architecture slide. This is empty. So for the ecosystem of eZ and also of Red Hat, the Content-as-a-Service layout would mean we create, together, openness. And that translates into open source and that translates also into no vendor lock-in. We are mutually going to create standards. And we are both standards-based, which means efficiency. And efficiency translates into a sustainable investment for customers. And we are seeing or we are perceived, hopefully, as the ones who are freeing the content for and with customers and partners in order to create innovation excellence. And we try to free the contents through our Content-as-a-Service layout from organizational boundaries and also from data silos. So we would like to stand for the enablement platform to create, deliver and optimize digital content and, and for any device.

Next slide, please. So with intelligent content services, we have the flexibility with different partnerships to be Infrastructure-as-a-Service, to be Platform-as-a-Service and also to be Software-as-a-Service delivered out of the cloud and based on the hybrid stack, built together with Red Hat. And yes, I think in the dramatically changing IT landscape that we are also observing, to have a reliable foundation with an open- and standards-based infrastructure, we create a much larger freedom to create, not only today, but also the tomorrows and future solutions that enterprises and their customers are demanding for.

With that being said, I would hand over to Bryan again. I was having difficulties in seeing online what you have presented, but it may have been a delay in our network.

Bryan Che

Thank you very much, Gabriele, and we definitely appreciate you joining us. So just to summarize the news that we shared with you today. We talked about earlier that enterprises are looking to solve complexity and inefficiency across their infrastructure with cloud computing. But it's very important to do so in 2 ways. First of all, you have to address this by delivering on open hybrid cloud, so that enterprises can bring the benefit of cloud across all their infrastructure. The second thing that's important is to focus on how do you build and manage your applications in this cloud. Otherwise, your cloud doesn't become useful to you. And CloudForms focuses on delivering both of these capabilities for enterprises.

We also talked about OpenShift, the leading open cloud application platform for enterprises. This is our Platform-as-a-Service, which is coming to a lot of new capabilities powered by CloudForms, and this is an important evolution of the capabilities around Platform-as-a-Service. Finally, we talked about how, along with OpenShift, CloudForms search as an integral part of the overall open hybrid cloud portfolio here at Red Hat. And we're really excited to share that CloudForms is now generally available.

And so with that, I'm happy now to turn it over to some questions and answers.

Question-and-Answer Session

Unknown Executive

[Operator Instructions] Bryan, first question for you is can you tell me how CloudForms relates to your work on OpenStack?

Bryan Che

Yes. So both OpenStack, as well as CloudForms, are important pieces of our open hybrid cloud portfolio and the focus on solving various different problems for our customers. Now if you take a look at what OpenStack provides, this has the ability to replicate in your own data center Infrastructure-as-a-Service capabilities that looks like a public cloud providers. So something that looks like Amazon or Rackspace or so on. Now what this provides you with is access to a wide scale and a large scale environment, but self-service access to capacity across that. And this serves as a provider, which you can go ahead and implement capabilities on your own. What CloudForms focuses on, as I mentioned before, is on building and managing open hybrid clouds and also managing applications in the cloud. So one of the capabilities that you will see from Red Hat is the ability to stand up OpenStack, whether at a service provider or in your own data center. And then to manage that as part of a hybrid cloud infrastructure with CloudForms and also to manage your application pervasively across your infrastructure, including on top of OpenStack with CloudForms.

Unknown Executive

Great. Next question is, you mentioned Deltacloud, but is CloudForms, as a whole, open source? And if so, where can I go to download the open source binaries?

Bryan Che

Yes. Deltacloud is open source, of course, but every single part of CloudForms is open source as well. And CloudForms actually comprises quite a host of different open source projects from many of the leading products that are out there. And we integrate and assemble them and develop on them and the open source just as we do across the rest of our portfolio. And that's one of the important aspects to keeping the promise of an open hybrid cloud, which is that the technologies underneath are all entirely open source. If you want to go ahead and download them, they're available from the upstream open source projects. If you happen to be using Fedora as well, these are already packaged and built into the Fedora distribution so you can try it out there.

Unknown Executive

Next is, is CloudForms going to support Hyper-V as the private cloud platform using Deltacloud?

Bryan Che

Yes. We will absolutely support Hyper-V. In fact, there are already are Deltacloud drivers for Hyper-V. And it's our intention to give customers a broad range of choice.

Unknown Executive

Great. Can you also summarize again the relationship between CloudForms and OpenShift?

Bryan Che

Yes. So OpenShift is a Platform-as-a-Service that focuses on giving developers rapid access to a great Cloud Application Platform. Where CloudForms focuses on building open hybrid clouds more as an Infrastructure-as-a-Service layer, as well as managing applications. Now one of the ways that OpenShift is going to be able to deliver support for open hybrid clouds and the ability to be able to manage applications within an IT data center is leveraging the technologies and building on top of CloudForms. And so the 2 are very complementary technologies that combine together and provide enterprises, both from the hybrid cloud management standpoint, as well as from the Platform-as-a-Service standpoint capabilities that they need.

Unknown Executive

The next question is for Gabriele. How did having Red Hat technologies available on the Red Hat-certified cloud provide a lower barrier to market entry into the cloud for you?

Gabriele Viebach

So the fact that our application can be fully managed and flexible to adjust to our partner's implementation requirements, as well as the customer requirements, is a huge benefit to us. So we reduced complexity in the setup of projects and we give simplicity and therefore, better predictability to our clients and also implementation partners. And of course, through industry standard support as the alignment of support levels is very important too.

Unknown Executive

Excellent. Bryan, next question for you. What role will Gluster play in this CloudForms solution?

Bryan Che

So for those of you aren't familiar with Gluster, Gluster is the technology that underlines the Red Hat Storage product. And what that provides is the ability to go ahead from a single global namespace, get access to your data across a wide variety of different data centers and private and public clouds. And this is a very important technology to use alongside CloudForms if you want to get the full promise of an open hybrid cloud. The reason for that is, where CloudForms focuses on how do I get my computing resources in a hybrid environment, how do I run my application seamlessly in a private cloud or in the public cloud and across multiple data centers, Red Hat Storage, powered by Gluster, allows us to go ahead and take your data alongside those applications and distribute them into a hybrid cloud as well. And so as you take a look at the open hybrid cloud portfolio from Red Hat, the Gluster technology is very complementary towards CloudForms, and there's quite a lot that we're doing so that the 2 work together really well side-by-side.

Unknown Executive

Next question is a clarification. CloudForms does not actually provision new instances on a public cloud. Is that correct? Would you still need to have previously setup the instance separately or can that all be done via CloudForms?

Bryan Che

Actually, these can all be done with CloudForms. And this is one of the great features that I talked about earlier, where from one application blueprint definition, we can go ahead and provision that application across a disparate set of technologies. So including Amazon, we will build up, analyze, push them into Amazon and configure them. Similarly, from that same application blueprint, not only can we do it at public clouds providers like Amazon, but in your own data center and technologies, like VMware or Red Hat Enterprise Virtualization and so on.

Unknown Executive

Another question for Gabriele. Why did eZ specifically choose Red Hat CloudForms for their cloud solution?

Gabriele Viebach

I think there were 3 main drivers that have convinced us about building our cloud solution on -- in the hybrid model together with Red Hat. The first is the alignment or the fact that we are both open and standards-spaced. That was one of the key requirements because we've seen so many replacement projects on customer side that we wanted to be a reliable and also a sustainable investment for our clients going forward. The second one is that their hybrid model that is provided is delivering the maximum flexibility that customers and our implementation partners wanted and we are standing for innovation leadership in our segment and the innovation pace. And the fact that we both also innovate with the communities, the similarities in the cultures of both companies, those were the main drivers choosing Red Hat.

Unknown Executive

Great. Our last question for Bryan. Could you summarize what the 3 biggest differentiators of CloudForms are from its competitors?

Bryan Che

Sure. Now the first thing to keep in mind is that as you take a look at the cloud space, we're still dealing with a wide variety of different products that are focused on solving very different problems in the industry today. And so that's the first thing that you have to consider as you take a look at CloudForms. Does it solve the problem that you're interested in solving as an enterprise? With CloudForms, we are focused on how do you go ahead and take existing infrastructure and existing complexity around applications, virtualization technology, public clouds and so on, and bring public cloud efficiency across this diversity. The way we do that is by implementing an open hybrid cloud and by managing applications. Now as you take a look at the variety of different products on the marketplace today, there may be overlap in certain capabilities. So for example, you may see self-service catalogs and portals or you may see some automation capabilities. However, you will find, as you take a deeper look, that oftentimes, they focus on solving very different problems from the problem that CloudForms is solving. So for example, maybe what they're trying to do is help you automate their virtualization technology. So they will provide you with cloud automation on top of one hypervisor and a set of public clouds compatible with that hypervisor with. What that means is that all that you can do is build cloud automation on your virtualization silos and turn it into a cloud silo. So that's not solving the same problem that CloudForms is. That's solving the problem of how do I make my virtualization technology more manageable? What CloudForms is focused on solving on the other hand is, how do I go ahead and make my IT infrastructure, overall, more manageable and simple and agile? And so as you take a look at the different products, it's important not only to consider what are the capabilities that CloudForms provides in terms of giving you an open hybrid cloud or giving you the ability to manage applications, but it's also important to ask yourself, what is the fundamental problem that I'm trying to solve and does the solution address that problem?

Unknown Executive

Great. So we're just about at the end of the time here, so thank you, all, for joining. If you have any further questions, you can e-mail them to communications@redhat.com. Thanks again for joining.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Red Hat Management Host Present Cloud Technology Update Call (Transcript)
This Transcript
All Transcripts