" Hey look completely GigaOM show arm of yeah it. -- and and -- it's been a long time since Kennedy show review it has been a long time welcome back tank here it's been. I'd have to be -- and unfortunately. You know sometimes in life takes precedence over. What can show in front that's true answer. They're one of the reasons I've had actually used to. And our our audience knows that you know be be putting this show on hiatus through the summer. Because I haven't fully recovered yet from my medical tent -- can. And I'm gonna take it easy can and of this summer and then come back -- and and I didn't feel and that you know. GigaOM surely doubtful meaning to increase -- right and it didn't she -- me. So I decided maybe its could kind of taken in the brain can you know come back and I didn't want people to have fun this summer and not be like him. Integrity go outside have some fun but your health is most importantly it's always that you it to -- so I am being -- to treat for monitoring it from. You know what is perceived as a column for the companies. It is it is hard and he gave -- it is that you're looking great athlete actor. And I do feel -- to refuse to you know better about my sound. And you know I just feel you know prevent. That you know a lot of people don't don't pay attention to themselves. Especially in general and Matty -- too much. Have too much coffee in my case I smoked too much and united -- And -- on those things add up to a problem -- you know basically -- long -- You know had the issue and I think that our people and if you're watching. He should just go to your doctor get yourself checked him. Live they had the knife the case in the end that's what matters everything has to secondary. Having said that. The number of -- to show for its I've mr. for the last couple of months I'm gonna miss it for another few miles -- comeback. I hope you know we can have more fun and you know we can be that you can get a new set it could well get ready yeah I know I can have done would get that kind and the college. The enemy -- ransom money and it's. -- you know produced this meaning."

" Remarks. You know -- potato four seasons -- politically."

" We have a pretty good interview -- in you're able to sit down with Jonathan Schwartz the CEO of Sun Microsystems and -- we find out what I was able to learn about what's next for sun will be right back with --"

" A -- to GigaOM show I'm okay talking to John controller CEO. Sun Microsystems and the turnaround actress in me these products on back. From the brink you know companies doing pretty five quarters. Procter and opinion you know. So I Jonathan welcome to show hey thanks for the opportunity -- pleasure community and dad you know I'm gonna go right into it -- is immense. Let's talk of arts on what is on these days you know what does not do. -- it gets it confusing when you. I'm talking about to come."

" You bet so we address the diversity of markets we are fundamentally a company that is building networking additions to make that network interest thing to make it valuable and that means we've got to touch hold diversity of audiences that means we've got to touch developers who probably have the largest. Community that we certainly touch and they'll know us for my SQL or for job or for that genes -- four keep an open office. You know we're -- when -- desktop obviously touches in the open source world broadly touches the developer audience and that's an audience that measures in the tens of millions. For folks who purchase on infrastructure they'll know -- as a systems company to people who bring together servers and storage and networking and micro electronics and pop forms awkward to. Enable the kinds of infrastructure that allows them to get competitive and so. Again we're we're addressing a fairly broad marketplace but it's a fairly tight market -- those that see the network is valuable but."

" And he devices on the toddlers starts to become and it's about in this -- of doing things. Yeah Amazon Martin which is a hundred no more software problems aren't -- using -- don't care. If you know just like eBay and I don't really know what are prevent birth or company name Q what what that's -- challenge the thing. It came jobs assignments as a hardware company completely."

" Well I think probably the single most broadly known brand on the Internet today is drop. It reaches billions of people think when you're in Silicon -- you -- You know you have your iPhone -- have here fancy new Nokia tablet or something tend not to think about the technology that's really touching not just tens of planes but hundreds of going to people across the world. So for a start up and Silicon Valley that might just be thinking about creating quick and dirty web service. Personal though they'll probably never buy hardware because they'll simply go to infrastructure provider but if you're an infrastructure business you probably know some pretty well because it's your core business does the fact that my grandmother not -- sun worries me -- she knows the -- that's you know that's going to."

" I think he's leaving them there were off topic -- and and you gonna talk about conflict fairly. Start -- like MySpace. A company like mind and Uga on FaceBook in the end up using. Some other no name union might be surprised. You know because recently there were using. You know. Nonsense you just leave it right but I wouldn't so even our best to manage all of it coming back that you actually able. -- start com or -- you know emails everybody started out using sun's surface if that's that's what I mean is that night. What's -- like how do you overcome the harder challenge at this."

" Or that I I think from your perception you think it's on the artwork. -- that someone beats you to remembering back to Simon's at the box company almost and yet now it's that you're carrying out. And you look great it by the feedback but that's not who we are we're not simply a box that. Probably the most pervasive brands we care about and corporate brands are are interesting because they promote and they provide visibility for. First son in general and you know we can talk about some brands that reach that that our planetary in scale. My SQL is probably the single most pervasive brand we have on the web today. Job as the single most pervasive -- we have an enterprise open office reaches you know a hundred million users at this point -- we're talking about touching. Large numbers of people now why do we want to touch them because as soon as we touched them once we can touch them again -- talking about other innovations we have. So as we build out these communities were simply reaching places that you know if you -- the PHP community say they don't like guys you know they don't want the -- guys to talk to the -- like what's going on with. You know some other communities so community is as as -- media companies. -- you know have their own local expertise their own personalities their own preferences. And as we build up those communities we can now begin to serve them with other products that we whether there commercial products or infrastructure products. But we're going to provide both ends of that spectrum we're a systems company that means you've got to worry about the client side of the system as well as the networks. So -- EU as a company providing. Amazon type services in the future and what we do today. We have a whole diversity of services whether there update services or actual program addicts services we deliver high performance computing facilities out the marketplace. Have we delivered to kind of lowest common denominator service is that Amazon has no we haven't. Are we gonna -- down that path probably wouldn't be you know we talked about delivering my SQL as a service. And glass fish as a service if not solaris as the service those are all the things we can do because we're investing in the core research and development because of the power and our."

" When you when you talk about the services of that service is the kind Amazon and you know the whole concept of cloud computing. I mean artists to get it then you get smart okay. And it's overcome the you have to -- that you just call -- a server. As a server company and you -- sure. No word the use software and you do not I think what we're assistance company the servers are very useful -- don't have an operating system and storage infrastructure around and programming platform. Our work where we're not a white box can you know that's okay legitimately -- come to understand this -- for the sake of argument. If you are hawks make who has their own analysts and on but he's been there and you have you know stack. How long can you be in the box business and they do use the future does that mean he have to have to do their resources -- that's for."

" You know and let me give you great examples that we introduced. In fact if you that this kind of touches on something we're talking about before which is the value fundamental -- about. Seven years ago we started working on an incredible power system calls -- I was working on my number of very talented people and -- and how much you know about the best but it has some basic properties. You can run it over the cheapest disks in the world and maintains data integrity exceptionally fast eliminates volume management superstars especially those that are running their own infrastructure it's an incredible innovation. So about two and a half years ago we did something odd we gave it away for free. And that's quite showed up Mac OS that showed -- and obviously community we have folks working on when exports it's obviously everywhere and solaris and open solaris world and why did we give it away for free. We gave it away for free as a as a means of participating in the open source community but also and critically important. As a means of meeting new customers and so about. A year or so ago we introduced a storage device called -- And -- was a four Iraqi units storage device that added to a dual core server side. That happened to run solaris and the FS and pac man was 24 terabytes it's about forty terabytes now owns about 50000 dollars for a for roughly fifty terabytes you can even now that's. Bargain basement storage. And what is that device now. Is that device -- server. Is -- a box. This historic device. I don't really know I'm not all that interest in what it is I just care that it's 65 points -- gross margin it's highly profitable and were differentiated in the marketplace and so who would buy -- I didn't. People you can talk about our -- well you just -- you just mentioned a few of them and they spoke well we're not at liberty to disclose who's doing business with -- There's all the folks look we just announced a big supercomputing facility down in Texas called pass the -- Texas advanced computing senator. It's 500 terror plot supercomputing facility -- of these folks care about economics as well as performance. And they're running comfort to do basic you know data aggregation -- in store you know literally terabytes of storage you know I think are indeed is the court to -- that's what allows -- not have to worry about folks who have you know cheaper parts that's not what ultimately what the biggest businesses we've just been talking about really cared much about. About the character -- that. But I do think there's been a shift do I think it's away from the network infrastructure and into clients now I think that's what we naturally assume because we see what's happening on the screen. We see innovation happening in mobile handsets you've probably watch with what Apple's doing you've seen innovation and dashboards you've seen. And I think what people do with the technology as opposed to what they do in the technology is is increasingly discreetly -- obviously going to focus on innovation in the techno record it backhander pertinent you know this. --"

" You mean you say is increasing in explanation than you in. Two years ago FaceBook laws and such -- big phenomenon and YouTube wasn't ingenious action so. The event has changed my -- cancer in humans and back -- infrastructure. The underlying infrastructure I don't think it has kept up. Right Israeli if you look at you -- a part time -- were there isn't related fundamentally news problems and ponder on this. I think and a group of what some trend and here and pretty scathing. -- in the flash. If not changing what you know and not work for the convention known to use the clone. So I think it."

" A few things are beginning to happen -- innovation goes where people can make money you know people don't innovate for the sake of and -- They innovate because you know or outside of academic environment innovate because they can see a return. Right now the return at least over the past couple two years in Silicon Valley has been around advertising subsidized consumer business models so there's a huge amount of venture -- gone to advertising subsidized you know consumer business models. How much innovation has really gone into the network infrastructure much less the then again we're doing two billion dollars a year and network infrastructure because we see a return we see the market actually growing. We don't see it contracting. And now it may not be growing for the same reasons that we see in Silicon Valley you know -- a week -- I go read. You know lots of other web sites and I'm looking at a very robust very high powered and relatively expensive device used to access those services. Most people in the world are going to have that they're going to have a feature. Where they're gonna have another mobile devices they then used to connect that the network. And I'm not talking about like 10% more we'll have phones I'm talking about you know 50% -- up -- 75% more funds. So is there investment going into the back and of the world's mobile infrastructure a tremendous amount. But there's also and I think importantly a tremendous amount of investment going into the client side into the differentiation that we that we look at the network. And I think that's a positive well. You remember back about ten years ago there was only one company that -- currently doing investments and in in the presentation layer now we see lots and lots of innovation I think that's wonderful he just into great examples MySpace and FaceBook didn't exist and you're gonna be nice listed as FaceBook certainly."

" Let's talk of art -- or -- open source efforts to respect him as he FS has become a story lines events. Do you king can you do that reminds people appliance. You can appliances."

" Life. Often equivalent smiling because that. I look at the world we're appliances -- overwhelmed yeah. You know is your phone a phone appliance I know it's just a good phones that are locked up appointment on the good computing. So -- We will take our technologies and we will deliver them in packages that are consumable that are easily adjustable seat incumbent or website by them or actually what we've done recently is you come to our website pick any product you want we'll send it to you for free -- try to comfort device -- my SQL device. And if you like it great pleased by if you don't feel free to return but we're gonna do that with everything we know it's is that the crux of this on marvel -- you can take on these great software and technologies. Open source now and then kick or it's all good things and then. Hardware around those. Build systems and center what you meant to. Hardy if admitted that -- I think there's. You know our business model is is actually quite simple and it and it goes as follows. Build the broadest developer communities in the world and if you do milk -- innovations that and fuel demand for data centers and we fundamentally monetize their listeners. Which means the hardware the software the microelectronics and services that go into building a high -- innocent so people don't just buy hardware don't just use software they have to bring it altogether. So it's a means of meeting a broad community of people. Some small port of which actually pay for top -- but 100% of which will actually be buying systems in the inner and those systems or computers networked storage devices that run software. Give me your forecast for the job. That unicenter. Business and then powers to laundering and hardened you do wrong. Again. So that data center business today if you if you look at look at bumpers are great examples those at a storage device or server X. You know the server business is about a fifteen billion dollar a year business. And on the one hand it's flat out. But on the other hand if you look inside the fifty billion you'll see a boiling cauldron of competition all the different vendors doing different things blade servers rack mount servers biggest of these servers. The -- marketplace is the same it's got its own you know that a proprietary players who were all trying to defend very very high gross margins and networking companies are doing the same things for the software companies during the same thing. So as we look at the marketplace those are all one market. And so if you combine servers storage networking and software. And you you know grind them together you'll see what it is senators are becoming ever coming unified instances of large amounts of computational storage and networking ports are. That's the market we're going -- that's about 400 billion dollar market. Is it growing. I not try to tell you what the projections are for the 400 billion what I will tell you is there's a lot of churches in going. Be because people are figuring out. They don't have to pay a quarter million dollars for. You know fifty terabytes of storage they can instead just 50000 dollars and that means they'll change vendors but while they're changing vendors are also aggregating cooperative which means they're building a -- the the -- changing over the next five years from a digital. Can point to restart. How do -- start consuming and our consumption. Being on the digital kind of thing and let you know and its impact. So I think what we've what we've begun to see and I think word it's only going to accelerate is the enormous impact on consumers of the subsidies from advertisers. It has inverted almost every consumer oriented technology model. I think we've yet to see that -- on handsets but that's obviously you know -- things like Google android and and other platforms they're going to begin to occur. That occurs a couple things happen. The price point on those devices goes down. Because again they're now being subsidized by advertisers. And it in fact I think it was I don't know if it was through you or somebody else this morning some -- you mentioned that dealt with getting. Sixty dollars per PC. From you know other advertisers who wanted to put on and on to their PCs what that's doing is eventually drives down the price of those devices. As more devices come into the marketplace you get less attached to what they look like basically you get more attached to and I read my favorite content and I kept my friends and so as those devices become more numerous they become more rigorously used over broader population guess what the network it's -- out to get supply to. But that means the requirements upn the network are changing because they're having to deal with scale issues that are epic compared to what they look like."

" Tenure. And I don't you know I'm not being genuine local advertising supported -- is very fashionable right now. Plus how your business page -- they -- able right. Bart unions to raise the market work that I know the economics of it dynamics of that person who's right. I am noting the cost of doing business. And taking much less expensive advertising. Compared to my. He advertising dollars being spent in -- sense market is becoming more and more efficient show. It efficient market to become."

" Smaller markets and what kinds -- happens and I don't think efficient markets become smaller markets I think efficient markets become much broader they've become much larger so if you look at for example let's see him an average search company gets based on you know on differentiating Clinton's. It's nothing compared to what FaceBook. That FaceBook has higher. TVMs because they know more about what the people are actually doing -- network so you have to look at the convergence of those business models with what's actually going on with the open source software. Do you think about what happens with free software we distribute all this free software in the world we'll keep downloading glass -- why if you download -- last night. Because the odds are -- you're gonna build an application around what you're -- you know -- so I think the markets are converging we're all beginning to leverage. An open network to reach the markets we -- you want to -- readers through advertising we want to monetize. The communities that we -- in the marketplace with the infrastructure that some -- not all of them like -- and --"

" However last question for you what do you make of Gulu pain or and then doing their own version -- his. Bizarre and not licensing it from -- 1000. Creative problem in the marketplace."

" Well I think when you go to look at the number of phones right now that run job. A branded job that is actually coherent with the specifications then that's been defined by the -- community process. You can run on you know. An enormous threat of the world mobile hands and I'm talking literally billions of -- throughout the marketplace. So with what Google will do is now introducing -- and the marketplace the try to draft office Java community but if you're a developer wouldn't you really care. What you care about isn't what platform you used underneath you care what can I get to the broadest market possible so if Google ends up creating. You know a billion handsets in the market and an -- they're using a different kind of job which is different from -- to have licenses. You know I understand that what they've got to do is they've got to deliver value proposition to a developer that says I'm willing to do something that only works on Google's android. Versus something it works on every Nokia Samsung LG Sony Ericsson phone in the marketplace. So I think that's what you know anybody that -- open source are allowed to do with -- as you please. And I mean this is the notion of a building on a community so they'll go often do they wanted to do and now ultimately have to present value proposition to developers. Provide our right and relax and take from you think well don't you think should ask them. I'm Sharon to prevent any conversations of that I understand they're curious about that so. What we have conversations with Google just about every day. There's a lot of conversation what we've both that we share common objective we want the network to be free and open we want to create opportunities were on potentially existed historically we're gonna work together in some parts of our business we may choose to disagree in other parts of our business so got a great relationship with Google. Okay Johnson thank you so much for your time today great -- not human in a -- maybe they're gone. Forever this congress and that would have enjoyed this is always a pleasure thank you get thank you thank you."

" Hey welcome back come -- she's choice. Those an interesting interview with John yeah you fund and united the -- talking to him. Though there isn't our question that I wanted to dig deeper and union reading pattern of time writing traders it is less. Inclination. To share it always happens when the going is to use the public companies yeah yeah morning did give us the diet rich in Johnson is pretty open you know there is good on any kind of scene and -- today the doctors service fund and you it is great fun. I think the perfect -- and -- in line right I know we have some feedback from the last episode."

" With illegal from a -- make that we do. I think only doable -- used some -- people that video responses that we received from our last episode so I would take a look to see what they've got to say in their community."

" I think it it was very am telling to see how people from the outside questioning. However term but it's amazing aren't going to be inserted in and -- Also I had the feeling that there was a lot of misconceptions. About what kind of this nation and video conversation means you know. So I definitely do not see she's -- it's -- term sweeter in view not YouTube and it's definitely not Tweeter."

" I want to say great job -- way to go getting into the tradition three shows those people are there -- Internet video that definitely pushing away for. The network of video podcasts. And so I'm getting them excited about these things is totally the way to go on this thing at the load as soon as you go lack. Because all the people they reach would love --"

" maybe they should we can do this for the next season that we should get people do you know that's immediate response yet I think they that would be a better way of doing comments. So Pete email us meanwhile big armored division three Garth com or go to the forums every increased -- com slash -- And you can always a -- Europe the awards shows off season one -- 35 northbound highway bills. Hopefully you know you enjoy them and keeps writing it."

" Yeah thanks for sticking around for our entire adversity that if you don't show and a valid I'm doing it I'm home. And little media as the video montage over a half ago episodes some of the good start percent of the fact that it -- thanks collecting. Safe computing -- and show our home and I'm doing and eat -- would be bringing you the latest tech news and happenings."

" What's hot what's not all of brokers newcomers everything's -- tomorrow around the world fair --"

" Martin we had turned down some. Offers that were pretty interest. And you raise rates. Not have a little. All right you wanted. You -- I can't really talk about them."

" We haven't had the largest landslide victories. -- had a they really -- Hard keeping that that -- not telling C a commitment that you're not as -- Wouldn't want to know. Thing because it sounds totally negates that greenhouse gas reduction."

" There's a lot of -- You're socialist in Pakistan we think we didn't spend a lot of money on a marketing I think that kind of simplicity is really super."

" And if the VC funds are willing to do it is a smart move on on the company's part this strategy game."

" To rethink his contract -- The Pentagon and reverted today. This today. Okay I'm looking good is never ends up next. One of the winners --"

" Looking --"

" You know I didn't even know that your -- tech companies in Slovenia. Which will be a continued threat."

" Microsoft office. Traditional apps the only way and the music industry right now he might actually. Make money off of that he is control as much in Vietnam."

" It's they have batteries word on how. I don't know further tragedy dependent want to -- leaders and merchant categories. These -- facts and doesn't want one thing is just to find a couple whose initials. That definitely I'm looking to break instead of going. Before we go on yeah."

" No -- yeah."

" There's been in touch this baby. From the -- go home show."

" Hey look completely GigaOM show arm of yeah it. -- and and -- it's been a long time since Kennedy show review it has been a long time welcome back tank here it's been. I'd have to be -- and unfortunately. You know sometimes in life takes precedence over. What can show in front that's true answer. They're one of the reasons I've had actually used to. And our our audience knows that you know be be putting this show on hiatus through the summer. Because I haven't fully recovered yet from my medical tent -- can. And I'm gonna take it easy can and of this summer and then come back -- and and I didn't feel and that you know. GigaOM surely doubtful meaning to increase -- right and it didn't she -- me. So I decided maybe its could kind of taken in the brain can you know come back and I didn't want people to have fun this summer and not be like him. Integrity go outside have some fun but your health is most importantly it's always that you it to -- so I am being -- to treat for monitoring it from. You know what is perceived as a column for the companies. It is it is hard and he gave -- it is that you're looking great athlete actor. And I do feel -- to refuse to you know better about my sound. And you know I just feel you know prevent. That you know a lot of people don't don't pay attention to themselves. Especially in general and Matty -- too much. Have too much coffee in my case I smoked too much and united -- And -- on those things add up to a problem -- you know basically -- long -- You know had the issue and I think that our people and if you're watching. He should just go to your doctor get yourself checked him. Live they had the knife the case in the end that's what matters everything has to secondary. Having said that. The number of -- to show for its I've mr. for the last couple of months I'm gonna miss it for another few miles -- comeback. I hope you know we can have more fun and you know we can be that you can get a new set it could well get ready yeah I know I can have done would get that kind and the college. The enemy -- ransom money and it's. -- you know produced this meaning."

" Remarks. You know -- potato four seasons -- politically."

" We have a pretty good interview -- in you're able to sit down with Jonathan Schwartz the CEO of Sun Microsystems and -- we find out what I was able to learn about what's next for sun will be right back with --"

" A -- to GigaOM show I'm okay talking to John controller CEO. Sun Microsystems and the turnaround actress in me these products on back. From the brink you know companies doing pretty five quarters. Procter and opinion you know. So I Jonathan welcome to show hey thanks for the opportunity -- pleasure community and dad you know I'm gonna go right into it -- is immense. Let's talk of arts on what is on these days you know what does not do. -- it gets it confusing when you. I'm talking about to come."

" You bet so we address the diversity of markets we are fundamentally a company that is building networking additions to make that network interest thing to make it valuable and that means we've got to touch hold diversity of audiences that means we've got to touch developers who probably have the largest. Community that we certainly touch and they'll know us for my SQL or for job or for that genes -- four keep an open office. You know we're -- when -- desktop obviously touches in the open source world broadly touches the developer audience and that's an audience that measures in the tens of millions. For folks who purchase on infrastructure they'll know -- as a systems company to people who bring together servers and storage and networking and micro electronics and pop forms awkward to. Enable the kinds of infrastructure that allows them to get competitive and so. Again we're we're addressing a fairly broad marketplace but it's a fairly tight market -- those that see the network is valuable but."

" And he devices on the toddlers starts to become and it's about in this -- of doing things. Yeah Amazon Martin which is a hundred no more software problems aren't -- using -- don't care. If you know just like eBay and I don't really know what are prevent birth or company name Q what what that's -- challenge the thing. It came jobs assignments as a hardware company completely."

" Well I think probably the single most broadly known brand on the Internet today is drop. It reaches billions of people think when you're in Silicon -- you -- You know you have your iPhone -- have here fancy new Nokia tablet or something tend not to think about the technology that's really touching not just tens of planes but hundreds of going to people across the world. So for a start up and Silicon Valley that might just be thinking about creating quick and dirty web service. Personal though they'll probably never buy hardware because they'll simply go to infrastructure provider but if you're an infrastructure business you probably know some pretty well because it's your core business does the fact that my grandmother not -- sun worries me -- she knows the -- that's you know that's going to."

" I think he's leaving them there were off topic -- and and you gonna talk about conflict fairly. Start -- like MySpace. A company like mind and Uga on FaceBook in the end up using. Some other no name union might be surprised. You know because recently there were using. You know. Nonsense you just leave it right but I wouldn't so even our best to manage all of it coming back that you actually able. -- start com or -- you know emails everybody started out using sun's surface if that's that's what I mean is that night. What's -- like how do you overcome the harder challenge at this."

" Or that I I think from your perception you think it's on the artwork. -- that someone beats you to remembering back to Simon's at the box company almost and yet now it's that you're carrying out. And you look great it by the feedback but that's not who we are we're not simply a box that. Probably the most pervasive brands we care about and corporate brands are are interesting because they promote and they provide visibility for. First son in general and you know we can talk about some brands that reach that that our planetary in scale. My SQL is probably the single most pervasive brand we have on the web today. Job as the single most pervasive -- we have an enterprise open office reaches you know a hundred million users at this point -- we're talking about touching. Large numbers of people now why do we want to touch them because as soon as we touched them once we can touch them again -- talking about other innovations we have. So as we build out these communities were simply reaching places that you know if you -- the PHP community say they don't like guys you know they don't want the -- guys to talk to the -- like what's going on with. You know some other communities so community is as as -- media companies. -- you know have their own local expertise their own personalities their own preferences. And as we build up those communities we can now begin to serve them with other products that we whether there commercial products or infrastructure products. But we're going to provide both ends of that spectrum we're a systems company that means you've got to worry about the client side of the system as well as the networks. So -- EU as a company providing. Amazon type services in the future and what we do today. We have a whole diversity of services whether there update services or actual program addicts services we deliver high performance computing facilities out the marketplace. Have we delivered to kind of lowest common denominator service is that Amazon has no we haven't. Are we gonna -- down that path probably wouldn't be you know we talked about delivering my SQL as a service. And glass fish as a service if not solaris as the service those are all the things we can do because we're investing in the core research and development because of the power and our."

" When you when you talk about the services of that service is the kind Amazon and you know the whole concept of cloud computing. I mean artists to get it then you get smart okay. And it's overcome the you have to -- that you just call -- a server. As a server company and you -- sure. No word the use software and you do not I think what we're assistance company the servers are very useful -- don't have an operating system and storage infrastructure around and programming platform. Our work where we're not a white box can you know that's okay legitimately -- come to understand this -- for the sake of argument. If you are hawks make who has their own analysts and on but he's been there and you have you know stack. How long can you be in the box business and they do use the future does that mean he have to have to do their resources -- that's for."

" You know and let me give you great examples that we introduced. In fact if you that this kind of touches on something we're talking about before which is the value fundamental -- about. Seven years ago we started working on an incredible power system calls -- I was working on my number of very talented people and -- and how much you know about the best but it has some basic properties. You can run it over the cheapest disks in the world and maintains data integrity exceptionally fast eliminates volume management superstars especially those that are running their own infrastructure it's an incredible innovation. So about two and a half years ago we did something odd we gave it away for free. And that's quite showed up Mac OS that showed -- and obviously community we have folks working on when exports it's obviously everywhere and solaris and open solaris world and why did we give it away for free. We gave it away for free as a as a means of participating in the open source community but also and critically important. As a means of meeting new customers and so about. A year or so ago we introduced a storage device called -- And -- was a four Iraqi units storage device that added to a dual core server side. That happened to run solaris and the FS and pac man was 24 terabytes it's about forty terabytes now owns about 50000 dollars for a for roughly fifty terabytes you can even now that's. Bargain basement storage. And what is that device now. Is that device -- server. Is -- a box. This historic device. I don't really know I'm not all that interest in what it is I just care that it's 65 points -- gross margin it's highly profitable and were differentiated in the marketplace and so who would buy -- I didn't. People you can talk about our -- well you just -- you just mentioned a few of them and they spoke well we're not at liberty to disclose who's doing business with -- There's all the folks look we just announced a big supercomputing facility down in Texas called pass the -- Texas advanced computing senator. It's 500 terror plot supercomputing facility -- of these folks care about economics as well as performance. And they're running comfort to do basic you know data aggregation -- in store you know literally terabytes of storage you know I think are indeed is the court to -- that's what allows -- not have to worry about folks who have you know cheaper parts that's not what ultimately what the biggest businesses we've just been talking about really cared much about. About the character -- that. But I do think there's been a shift do I think it's away from the network infrastructure and into clients now I think that's what we naturally assume because we see what's happening on the screen. We see innovation happening in mobile handsets you've probably watch with what Apple's doing you've seen innovation and dashboards you've seen. And I think what people do with the technology as opposed to what they do in the technology is is increasingly discreetly -- obviously going to focus on innovation in the techno record it backhander pertinent you know this. --"

" You mean you say is increasing in explanation than you in. Two years ago FaceBook laws and such -- big phenomenon and YouTube wasn't ingenious action so. The event has changed my -- cancer in humans and back -- infrastructure. The underlying infrastructure I don't think it has kept up. Right Israeli if you look at you -- a part time -- were there isn't related fundamentally news problems and ponder on this. I think and a group of what some trend and here and pretty scathing. -- in the flash. If not changing what you know and not work for the convention known to use the clone. So I think it."

" A few things are beginning to happen -- innovation goes where people can make money you know people don't innovate for the sake of and -- They innovate because you know or outside of academic environment innovate because they can see a return. Right now the return at least over the past couple two years in Silicon Valley has been around advertising subsidized consumer business models so there's a huge amount of venture -- gone to advertising subsidized you know consumer business models. How much innovation has really gone into the network infrastructure much less the then again we're doing two billion dollars a year and network infrastructure because we see a return we see the market actually growing. We don't see it contracting. And now it may not be growing for the same reasons that we see in Silicon Valley you know -- a week -- I go read. You know lots of other web sites and I'm looking at a very robust very high powered and relatively expensive device used to access those services. Most people in the world are going to have that they're going to have a feature. Where they're gonna have another mobile devices they then used to connect that the network. And I'm not talking about like 10% more we'll have phones I'm talking about you know 50% -- up -- 75% more funds. So is there investment going into the back and of the world's mobile infrastructure a tremendous amount. But there's also and I think importantly a tremendous amount of investment going into the client side into the differentiation that we that we look at the network. And I think that's a positive well. You remember back about ten years ago there was only one company that -- currently doing investments and in in the presentation layer now we see lots and lots of innovation I think that's wonderful he just into great examples MySpace and FaceBook didn't exist and you're gonna be nice listed as FaceBook certainly."

" Let's talk of art -- or -- open source efforts to respect him as he FS has become a story lines events. Do you king can you do that reminds people appliance. You can appliances."

" Life. Often equivalent smiling because that. I look at the world we're appliances -- overwhelmed yeah. You know is your phone a phone appliance I know it's just a good phones that are locked up appointment on the good computing. So -- We will take our technologies and we will deliver them in packages that are consumable that are easily adjustable seat incumbent or website by them or actually what we've done recently is you come to our website pick any product you want we'll send it to you for free -- try to comfort device -- my SQL device. And if you like it great pleased by if you don't feel free to return but we're gonna do that with everything we know it's is that the crux of this on marvel -- you can take on these great software and technologies. Open source now and then kick or it's all good things and then. Hardware around those. Build systems and center what you meant to. Hardy if admitted that -- I think there's. You know our business model is is actually quite simple and it and it goes as follows. Build the broadest developer communities in the world and if you do milk -- innovations that and fuel demand for data centers and we fundamentally monetize their listeners. Which means the hardware the software the microelectronics and services that go into building a high -- innocent so people don't just buy hardware don't just use software they have to bring it altogether. So it's a means of meeting a broad community of people. Some small port of which actually pay for top -- but 100% of which will actually be buying systems in the inner and those systems or computers networked storage devices that run software. Give me your forecast for the job. That unicenter. Business and then powers to laundering and hardened you do wrong. Again. So that data center business today if you if you look at look at bumpers are great examples those at a storage device or server X. You know the server business is about a fifteen billion dollar a year business. And on the one hand it's flat out. But on the other hand if you look inside the fifty billion you'll see a boiling cauldron of competition all the different vendors doing different things blade servers rack mount servers biggest of these servers. The -- marketplace is the same it's got its own you know that a proprietary players who were all trying to defend very very high gross margins and networking companies are doing the same things for the software companies during the same thing. So as we look at the marketplace those are all one market. And so if you combine servers storage networking and software. And you you know grind them together you'll see what it is senators are becoming ever coming unified instances of large amounts of computational storage and networking ports are. That's the market we're going -- that's about 400 billion dollar market. Is it growing. I not try to tell you what the projections are for the 400 billion what I will tell you is there's a lot of churches in going. Be because people are figuring out. They don't have to pay a quarter million dollars for. You know fifty terabytes of storage they can instead just 50000 dollars and that means they'll change vendors but while they're changing vendors are also aggregating cooperative which means they're building a -- the the -- changing over the next five years from a digital. Can point to restart. How do -- start consuming and our consumption. Being on the digital kind of thing and let you know and its impact. So I think what we've what we've begun to see and I think word it's only going to accelerate is the enormous impact on consumers of the subsidies from advertisers. It has inverted almost every consumer oriented technology model. I think we've yet to see that -- on handsets but that's obviously you know -- things like Google android and and other platforms they're going to begin to occur. That occurs a couple things happen. The price point on those devices goes down. Because again they're now being subsidized by advertisers. And it in fact I think it was I don't know if it was through you or somebody else this morning some -- you mentioned that dealt with getting. Sixty dollars per PC. From you know other advertisers who wanted to put on and on to their PCs what that's doing is eventually drives down the price of those devices. As more devices come into the marketplace you get less attached to what they look like basically you get more attached to and I read my favorite content and I kept my friends and so as those devices become more numerous they become more rigorously used over broader population guess what the network it's -- out to get supply to. But that means the requirements upn the network are changing because they're having to deal with scale issues that are epic compared to what they look like."

" Tenure. And I don't you know I'm not being genuine local advertising supported -- is very fashionable right now. Plus how your business page -- they -- able right. Bart unions to raise the market work that I know the economics of it dynamics of that person who's right. I am noting the cost of doing business. And taking much less expensive advertising. Compared to my. He advertising dollars being spent in -- sense market is becoming more and more efficient show. It efficient market to become."

" Smaller markets and what kinds -- happens and I don't think efficient markets become smaller markets I think efficient markets become much broader they've become much larger so if you look at for example let's see him an average search company gets based on you know on differentiating Clinton's. It's nothing compared to what FaceBook. That FaceBook has higher. TVMs because they know more about what the people are actually doing -- network so you have to look at the convergence of those business models with what's actually going on with the open source software. Do you think about what happens with free software we distribute all this free software in the world we'll keep downloading glass -- why if you download -- last night. Because the odds are -- you're gonna build an application around what you're -- you know -- so I think the markets are converging we're all beginning to leverage. An open network to reach the markets we -- you want to -- readers through advertising we want to monetize. The communities that we -- in the marketplace with the infrastructure that some -- not all of them like -- and --"

" However last question for you what do you make of Gulu pain or and then doing their own version -- his. Bizarre and not licensing it from -- 1000. Creative problem in the marketplace."

" Well I think when you go to look at the number of phones right now that run job. A branded job that is actually coherent with the specifications then that's been defined by the -- community process. You can run on you know. An enormous threat of the world mobile hands and I'm talking literally billions of -- throughout the marketplace. So with what Google will do is now introducing -- and the marketplace the try to draft office Java community but if you're a developer wouldn't you really care. What you care about isn't what platform you used underneath you care what can I get to the broadest market possible so if Google ends up creating. You know a billion handsets in the market and an -- they're using a different kind of job which is different from -- to have licenses. You know I understand that what they've got to do is they've got to deliver value proposition to a developer that says I'm willing to do something that only works on Google's android. Versus something it works on every Nokia Samsung LG Sony Ericsson phone in the marketplace. So I think that's what you know anybody that -- open source are allowed to do with -- as you please. And I mean this is the notion of a building on a community so they'll go often do they wanted to do and now ultimately have to present value proposition to developers. Provide our right and relax and take from you think well don't you think should ask them. I'm Sharon to prevent any conversations of that I understand they're curious about that so. What we have conversations with Google just about every day. There's a lot of conversation what we've both that we share common objective we want the network to be free and open we want to create opportunities were on potentially existed historically we're gonna work together in some parts of our business we may choose to disagree in other parts of our business so got a great relationship with Google. Okay Johnson thank you so much for your time today great -- not human in a -- maybe they're gone. Forever this congress and that would have enjoyed this is always a pleasure thank you get thank you thank you."

" Hey welcome back come -- she's choice. Those an interesting interview with John yeah you fund and united the -- talking to him. Though there isn't our question that I wanted to dig deeper and union reading pattern of time writing traders it is less. Inclination. To share it always happens when the going is to use the public companies yeah yeah morning did give us the diet rich in Johnson is pretty open you know there is good on any kind of scene and -- today the doctors service fund and you it is great fun. I think the perfect -- and -- in line right I know we have some feedback from the last episode."

" With illegal from a -- make that we do. I think only doable -- used some -- people that video responses that we received from our last episode so I would take a look to see what they've got to say in their community."

" I think it it was very am telling to see how people from the outside questioning. However term but it's amazing aren't going to be inserted in and -- Also I had the feeling that there was a lot of misconceptions. About what kind of this nation and video conversation means you know. So I definitely do not see she's -- it's -- term sweeter in view not YouTube and it's definitely not Tweeter."

" I want to say great job -- way to go getting into the tradition three shows those people are there -- Internet video that definitely pushing away for. The network of video podcasts. And so I'm getting them excited about these things is totally the way to go on this thing at the load as soon as you go lack. Because all the people they reach would love --"

" maybe they should we can do this for the next season that we should get people do you know that's immediate response yet I think they that would be a better way of doing comments. So Pete email us meanwhile big armored division three Garth com or go to the forums every increased -- com slash -- And you can always a -- Europe the awards shows off season one -- 35 northbound highway bills. Hopefully you know you enjoy them and keeps writing it."

" Yeah thanks for sticking around for our entire adversity that if you don't show and a valid I'm doing it I'm home. And little media as the video montage over a half ago episodes some of the good start percent of the fact that it -- thanks collecting. Safe computing -- and show our home and I'm doing and eat -- would be bringing you the latest tech news and happenings."

" What's hot what's not all of brokers newcomers everything's -- tomorrow around the world fair --"

" Martin we had turned down some. Offers that were pretty interest. And you raise rates. Not have a little. All right you wanted. You -- I can't really talk about them."

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" And if the VC funds are willing to do it is a smart move on on the company's part this strategy game."

" To rethink his contract -- The Pentagon and reverted today. This today. Okay I'm looking good is never ends up next. One of the winners --"

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" No -- yeah."

" There's been in touch this baby. From the -- go home show."