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pww.comMicrosoft Corporation, Red Hat, Inc. - Special Call - NasdaqGS:MSFT

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Stephanie Wonderlick [Executives] đź’¬

Stephanie Wonderlick made the following statements during the Microsoft Corporation and Red Hat, Inc. special call:

  1. Introduction:

    Good morning, and welcome to the Microsoft and Red Hat news briefing. Today's webcast is being recorded. On the call today are Paul Cormier, President of Products and Technologies at Red Hat; and Scott Guthrie, Executive Vice President from Microsoft, Cloud and Enterprise Division. They will provide short remarks, and then we'll open up time for questions.

  2. Forward-Looking Statement:

    Before we jump in, please take a moment to review our forward-looking statement. There are also a few housekeeping items to quickly mention. You should see a task bar at the bottom of your screen. Each icon is assigned a particular element of today's webinar. If you're not sure what an icon does, hover over the icon with your mouse and a box will appear to tell you the function.

  3. Instructions for Questions:

    Also, below the slide window, you should see a blank Ask a Question box that allows you to type a question. After you type a question, click submit to submit it. Feel free to submit your questions throughout the webcast, and we will address as many as possible following the presentation. You can submit any technical questions related to the webcast platform there as well.

  4. Technical Instructions:

    Please close down other browser windows or applications that might be splitting your bandwidth, including VPNs, as these might interfere with the audio or video stream. If you experience any connectivity issues, please refresh your browser. Today's session is being recorded, and registrants will receive a link to view this presentation on demand.

  5. Transition to Paul Cormier:

    With that, I will turn the call over to Paul Cormier.

  6. Question and Answer Session Introduction:

    Okay. Scott, Paul, thanks so much, guys. So we've seen a number of questions come in. We're going to get to as many of these as possible. Again, if you have not submitted a question already, you can do so via the question box at the bottom of your screen and press submit. But I'm going to just jump right in on this.

  7. Questions Asked:

    • How is the partnership going to work in a physical sense? You guys talked about colocated support. Is there going to be more presence in Raleigh or Redmond or where else?
    • Okay, good. And question for both of you guys, do either Red Hat or Microsoft do that with other companies, that colocated support?
    • Okay. Can either of you talk a little bit more about developer tool capabilities across the platforms?
    • Okay, good. I'm going to double up some of these questions together. We've seen a number of folks asking about OpenStack. So one, what does this mean for the OpenStack ecosystem? Two, Scott, probably a question for you. In the future, could Azure run OpenStack?
    • Okay, great. Guys, another question for both of you probably. What was the tipping point to get to today?
    • Okay, good. Another question for both of you guys to speak to. And I'm going to double up a number of questions that we're getting about other partners, right? So Paul, what does this announcement mean for Red Hat's other cloud partners? Scott, same question for you, what does it mean for Microsoft's other partners?
    • Okay, good. Getting a couple of questions on support. How is it going to work? Is the joint support team available at all Azure support levels? Will it require you to purchase anything else?
    • Okay. And what versions of Red Hat Enterprise Linux are going to be available on Azure?
    • Okay. And then any comment on what this means for ISVs? If relative subscriptions are going to be portable to Azure, what does it mean for ISV applications that would be running on RHEL on bare metal, for example?

  8. Closing Remarks:

    Okay, guys. So we do have a number of additional questions coming in. I'm not sure we're going to be able to get to everything. But wanted to ask if you had any parting thoughts that you wanted to leave the webcast with. And folks, if you submit a question that we didn't get to, we will try to get to you offline as soon as possible.

  9. Webinar Follow-Up:

    Thank you, guys, both. Really quickly before we part, you'll see a link on the screen. On November 11, Red Hat and Microsoft will be hosting a joint webinar to do a deeper dive on some of the solution availability. Please do join us for that. We'll include that link in a follow-up email that will be sent to all of the registrants. But thank you for joining. And Paul, Scott, thank you both.

Paul J. Cormier [Chairman, Red Hat, Inc.] đź’¬

During the special call on November 4, 2015, Paul J. Cormier, Chairman of Red Hat, Inc., made several statements. Here is a detailed summary of his comments:

  • Opening Remarks:

    • Thanked Stephanie Wonderlick and acknowledged the attendees.
    • Highlighted the transformation in enterprise technology and the significance of the partnership with Microsoft.
    • Mentioned the partnership aims to help customers embrace hybrid cloud computing by providing greater choice and flexibility.

  • Personal Reflection:

    • Noted that when he started at Red Hat, there was a need to convince the world that Linux was ready for the enterprise.
    • Stated that today, there is no doubt that Linux is a key part of enterprise computing.

  • Partnership Details:

    • Explained that the partnership puts enterprise businesses first by extending Red Hat's software capabilities to Microsoft Azure.
    • Described the partnership as a powerful win for enterprise customers, combining the leader in enterprise and hybrid cloud with the leader in open source.

  • Customer Needs:

    • Emphasized that customers want choice and flexibility in cloud computing.
    • Noted that customers want consistency in using, securing, and managing the four footprints of their IT environment: bare metal, virtual, private, and public cloud.

  • Key Partnership Components:

    • Detailed the five main components of the partnership:
      1. Integrated support services for hybrid clouds, including Red Hat products in on-premise customer environments and on Microsoft Azure.
      2. Microsoft .NET integration and availability with Red Hat Enterprise Linux, including Atomic Host and OpenShift.
      3. Red Hat products offered and supported on Microsoft Azure and Microsoft Windows supported on Red Hat's on-premise products.
      4. Management tooling integration for open hybrid cloud implementations with Red Hat's CloudForms.
      5. Microsoft joining the Red Hat Certified Cloud and Service Provider program as a certified cloud provider.

  • Support Strategy:

    • Announced the plan to colocate Red Hat and Microsoft engineers to provide seamless and timely support for customers.
    • Emphasized the importance of avoiding finger-pointing and providing unified support.

  • Developer Tools:

    • Discussed the inclusion of .NET technologies in Red Hat Enterprise Linux platforms, including RHEL Atomic Host and OpenShift.
    • Noted that Microsoft will use RHEL as the reference development platform for its open-source .NET project.

  • Product Offerings:

    • Highlighted the support of Red Hat products on Microsoft Azure and the expansion of cooperation in supporting Windows on Red Hat products.
    • Mentioned the extension of Red Hat's CloudForms to include management of workloads on Microsoft Azure.

  • Certification:

    • Announced that Microsoft is joining the Red Hat Certified Cloud and Service Provider program, enabling the support of all Red Hat products on Azure.

  • Comprehensive Partnership:

    • Summarized the partnership as covering support for enterprise deployments, application frameworks, developers, platform consistency, management, and certification.

  • Colocated Support:

    • Addressed the question regarding the physical presence of colocated support, stating that the initial colocation will be in Redmond, with plans to expand globally as needed.

  • Unique Partnership:

    • Confirmed that this partnership represents a first for Red Hat in terms of depth and level of support with a partner.

  • Developer Tool Capabilities:

    • Added insights on the potential for developers to use .NET services within the OpenShift PaaS platform, highlighting the opportunities for microservices and connecting applications across the four footprints.

  • OpenStack Ecosystem:

    • Discussed the implications of the partnership for the OpenStack ecosystem, focusing on the ability to bring Windows virtual machines and containers into Red Hat OpenStack environments.

  • Tipping Point for the Partnership:

    • Shared his personal experience, mentioning a call from an old friend at Microsoft, which helped build trust and led to the partnership.
    • Noted that the partnership was driven by strong customer demand and a shared focus on customer success.

  • Impact on Other Partners:

    • Clarified that the partnership offers customers great choice and seamless access to the leading cloud platform, emphasizing the uniqueness of the comprehensive partnership and the colocation of support teams.

  • Support Levels:

    • Confirmed that the joint support team will be available at all Azure support levels and that customers can bring Red Hat subscriptions to Azure.

  • Red Hat Enterprise Linux Versions:

    • Indicated that versions 6, 7, and later of Red Hat Enterprise Linux will be available on Azure.

  • ISV Applications:

    • Explained that if an ISV application works on RHEL on bare metal, it will work in any of the four footprints, ensuring support across physical, virtual, private, and public cloud environments.

  • Closing Thoughts:

    • Reflected on the evolution of the partnership, noting that it was driven by customer demand and a shared goal to satisfy customers.

    • Emphasized the commitment to making the partnership the #1 support experience.

Scott David Guthrie [Executive Vice President of Cloud & AI Group, Microsoft Corporation] đź’¬

Scott David Guthrie, the Executive Vice President of Cloud & AI Group at Microsoft Corporation, discussed several points during the special call:

  • He expressed appreciation for working with Paul Cormier and the Red Hat team, emphasizing his satisfaction with the partnership and the announcement.

  • He highlighted that the cloud is central to Microsoft’s strategy, and the company is developing products and services to assist customers and partners in transforming their businesses in a mobile-first, cloud-first world. He noted that the partnership with Red Hat will enable customers to accelerate their move to the cloud.

  • He outlined three key benefits that customers seek from the cloud: speed, scale, and favorable economics. With Azure, customers can rapidly provision compute resources, scale infrastructure to meet needs, and enjoy cost savings due to pay-as-you-go pricing.

  • He emphasized the importance of choice and flexibility for customers, who often desire hybrid cloud solutions that combine private and public cloud environments. Microsoft’s focus on hybrid cloud solutions is a cornerstone of its cloud strategy and differentiates the company from competitors.

  • He presented the next slide and discussed the challenges customers face with cloud innovation, including the need for flexible, scalable solutions that integrate with existing investments and meet customers where they are.

  • He highlighted five key areas where the partnership with Red Hat will deliver value for enterprises, developers, independent software vendors (ISVs), and users of Microsoft and Red Hat technologies. These areas include integrated support services for hybrid clouds, .NET integration and availability with Red Hat Enterprise Linux, Red Hat products offered and supported on Microsoft Azure, management tooling integration for open hybrid cloud implementations with Red Hat’s CloudForms, and Microsoft joining the Red Hat Certified Cloud and Service Provider (CCSP) program.

  • He detailed the immediate steps in the partnership, including Microsoft joining the Red Hat CCSP program, Red Hat subscriptions becoming portable to Azure, colocated support teams, and Azure becoming a destination for the full Red Hat suite of software.

  • He mentioned upcoming developments, such as on-demand consumption support, integration of Red Hat CloudForms with Microsoft Azure and Systems Center VMM, and support for Red Hat Enterprise Linux Atomic Host on Azure.

  • He expressed enthusiasm about the partnership with Red Hat and its potential to enable customers to build next-generation applications that span heterogeneous technologies and architectures.

  • He confirmed that colocating support teams with Red Hat is a unique arrangement and not something Microsoft has done with other partners before.

  • He elaborated on developer tool capabilities, explaining that Red Hat developers can now run their applications on Azure with full enterprise support, and .NET technology will be included in Red Hat Linux, enabling developers to build applications that run on Red Hat Linux.

  • He addressed questions regarding OpenStack, stating that Microsoft does not currently plan to run OpenStack natively on Azure but that the partnership enables flexibility and choice in the public cloud while supporting hybrid scenarios.

  • He explained that Microsoft’s recent focus has been on putting customers at the center of its efforts and embracing the technologies they use, which led to the partnership with Red Hat. He credited Microsoft CEO Satya Nadella’s emphasis on openness and customer-centricity for driving this approach.

  • He acknowledged the uniqueness of the partnership with Red Hat and its benefits for customers, emphasizing the shared goal of satisfying customer needs and facilitating the transition to hybrid cloud environments.

  • In closing, he expressed excitement about the partnership and the opportunities it presents for both companies to work closely together and build great solutions for customers.