All right. There we go. Sounds like we're ready to go. Hello, everybody. My name is Peter Pouliott. I work for Microsoft, and I work on OpenStack. I'm here today with Alzendropolotti from CloudBase Solutions, and we're here to tell you all the wonderful things we did during this development cycle for the Windows Server Platform. As you can see, it's the two great tastes that taste great together, as I like to say. So we'll leave it at that. So what we're going to talk about today is Windows as a Guest and what we do to enable that in OpenStack, Windows Licensing in OpenStack, Hyper-V, and what you can do with it in OpenStack, as well as what's new for Windows in the Metaka release cycle. OK, here we go. How many of you guys use CloudBase in it? What are? I don't see you necessarily with this light, but OK. We get a few Alzendropolotti. Yeah, definitely. So as you know, CloudBase in it is full Python code, so very portable, and everything. It was designed for day one for being portable across operating systems. We typically use it on top of Windows, and the new introduction in the Windows family is called Nano Server. Anybody heard about Nano Server yet? OK. Great. Good. And for those who are newly indoctrinated, CloudBase in it is the Guest Initialization Agent for the Windows platform to give you equivalency to Cloud in it for your automation needs. So Nano Server, we will talk a little bit more about Nano Server later, but it's the first time that Microsoft introduces a new, completely different type of operating system, still based, of course, on the same core provided by the Windows Server foundation. But the important thing is that we have a different way of deploying application, a different way of deploying workloads on top of this Nano Server. The important thing is that CloudBase in it will still be there. So you will have the same type of initialization, same type of experience from this perspective. Supported Windows versions, so that's the new part. Of course, we will continue to support every version of Windows, which is supported by Microsoft. So Windows 7, 8, 8, 1, 10, and so on. I think I forgot to put Windows Vista, but nobody complained. I don't know, right? Windows Server 2008, 2008, or 2012, 2012, or 2002. And most important now, Windows Server 2016, which is in technical preview. So nice thing about those technical previews is that they are a very nice way to introduce new features to the audience. So feel free to download them, test them, try them, and everything. And of course, CloudBase in it works perfectly fine. On those, which means that they work perfectly fine in any OpenStack deployment. It doesn't matter if you guys use KBM, or Hyperview, or 6i, or whatever else. And Nano Server, of course, 2016. It works also on XP in 2003, so it's totally unsupported. So we still have people coming on our Ask.CloudBase IT website say, what about 2003? Well, time to update, I would say. Anyway, it works. So it doesn't mean unsupported, doesn't mean it doesn't work. Just the fact that we don't run continuous integration tests on top of 2003 today. So Windows Images. Well, we have scripts that will automatically deploy for you Windows Images, including, of course, all the drivers, tools, CloudBase in it. They've sysprep them and everything. How do we build them? Well, that's one of the important things we like. And we believe in open source. So all of our scripts are available on GitHub. So you can see them there on the URL over there. We get tons of questions about those images. So keep on getting the floor for the questions, of course, on Ask.CloudBase.IT. We have also Windows Server 2016 and Nano Server support, so it's actually the big deal at the moment. And just one more thing to add to what Alexander was saying there. Those are our de facto mechanisms for creating cloud images of Windows. So just to be clear. So to briefly, a quick introduction on licensing with Windows and OpenStack. Essentially, Windows licensing in OpenStack is actually surprisingly easy. We have, obviously, the data center license, which essentially will give you unlimited Windows instances on top of that host. Essentially, today with 2012 R2, it's one license per socket. However, as many may have seen in the recent Microsoft announcements, that's going to be changing from a per socket to a per core model, with, I believe, a minimum of two cores. This licensing model, it's applicable to Hyper-V, KBM, VMware, or any use case that you may have for the Windows operating system. And essentially, at the end of the day, it does result in a very cost-effective way to utilize Windows in your environment. And for those of you who have massive infrastructures or if you're a service provider, we also provide the SPLA licensing, which is our specific for service providers, to enable you to license Windows across your infrastructure on, I guess, a more applicable basis. All right, so one of the key areas that we run into, specifically with people who tend to use Windows instances on top of KBM, is an issue where they tend to navigate towards vert IO drivers provided by the Fedora and the Red Hat based open source community. The problem with those drivers that you should all be aware is those drivers are currently uncertified drivers, meaning you will not be able to get support from Microsoft for those Windows instances. So we highly recommend you use one of the certified vert IO drivers for Windows. Specifically today, you would have to go to your enterprise Linux vendor, namely, SUSE, Canonical, or Red Hat, to obtain those certified drivers. And we can guarantee you, because most of the problems that we hear about today with running Windows on KBM, it's usually due to using the non-certified drivers, which do not go through the same rigor and process of testing that we do with our partners for those other drivers. So please be aware when you're deciding to deploy your Windows instances on KBM. So unless you use Hypervene, in that case, you don't need it, right? Well, preferably yes. But for those of you who choose to continue to use KBM, please be aware. So the key question here that we get all the time is, does Microsoft support OpenStack? Well, we support the use of any guests on top of our platform. So yes, I guess, ultimately, what does that mean? Well, we will support your Windows instances running on our hypervisor, regardless of the management platform that you choose to operate in. So if that happens to use Open, if that happens to be that you use OpenStack, that's great. You can still get Microsoft support for those instances in that use case. You cannot, we will not provide support for the actual OpenStack layer. However, that's why we have cloud-based solutions. All right, there we go. So if you have questions regarding any of these things, or any topics related to Microsoft technologies and OpenStack, you can email OpenStack at microsoft.com to obtain help. And we'll help you, regardless of whether it's, like I said, a technical question, or if you just have general knowledge about where to go next with your Windows and your OpenStack environment, feel free to use that. And I can guarantee you, you will get a response. Et toi, que ça trade, hein? Yeah, we've actually, most people who send email to that address, we change their perception of Microsoft after we start interacting. So please, feel free to reach out to us. We're here to help you. So once again, let's start focusing in more on Hyper-V, our flagship hypervisor, right? And how we consume that in an OpenStack environment. Just a question. How many of you guys are using Hyper-V at the moment in an OpenStack environment? Okay, I see a few hands. How many use Windows as a guest? Okay, cool, cool. All right, let's talk about this. So WinStackers, in the OpenStack big tent, of course there are lots of different projects of different areas and so on. And it's nice that actually different teams with different type of expertise actually are able to deal with their own projects, having their own TPR, core reviewers and everything. The same applies also for Windows. For Windows, we have a specific team called WinStackers. Okay, deliciously cheesy, I will say his name. We chose it. And that's actually where we put all the projects with our Windows specific, the first one. So it's actually very new, okay, so we created a group just a few months ago when the DC actually approved it. The first project in this umbrella is called OS Win, which collects all the Windows OS specific features, okay? We are going to add now also networking Hyper-V, which previously was under Neutron, and now it's going to move as soon as possible on the WinStackers as well, okay? We will add here more projects going forward, okay? Just to be clear, this is not a Microsoft or cloud-based solutions project only, okay? We like to have contributions for everybody, so we have already different partners, different companies which are contributing code and helping with bug fixes and everything. So we are more than happy to accept contribution, like we have other OS WinStack projects that we really believe in the open source spirit here. One more thing to add to this, one of the main reasons we went down this route to create WinStackers was to help accelerate our ability to bring new technology and features into OpenStack without having to rely on other teams to provide, I guess, the review process to do that. So we have our own PTLs that can handle that for us in our own review cores that will assist in this area. So it gives us some more autonomy within the project specific for the Windows pieces that we need to influence. Okay? Awesome. So Hyper-V and OpenStack. How many people here knew you could use Hyper-V and OpenStack? Perfect. What some of you may not have known is you've been able to use it for quite some time, okay? And one of the things that we try to do is make sure that we can give you a user experience that with the technology that we're bringing to OpenStack, that's very easy to use, right? Easy to set up. So for the Windows IT Pro, that means the same type of experience from an installation perspective, right? However, from a pure OpenStack perspective, if you're used to using OpenStack from a pure Python play, we actually can, you can on a Windows platform, tweak and tune and, you know, work with that Python code in the same way you have on Linux systems. Okay, just a quick thing here is a quick snapshot from the installer that you can use to deploy OpenStack compute on Hyper-V nodes. So the idea was always to have an experience very familiar with OpenStack DevOps, okay? And at the same time also very familiar with Windows types of, let's say, sees that means that some people used to, let's say, install things by using MSI and everything, okay? The nice thing is that it will deploy all the related Python code, whatever you need to make OpenStack running on top of Hyper-V. It can be fully automated. So for example, we use typically Puppet, Chef, Juju, of course, one of our preferred ones, and SoulStack and many more, okay? So don't think that you just have to click through these things. It can be fully, as I was saying, orchestrated in any other modern type of cloud deployment. So, you know, one of the things that we pride ourselves at Microsoft is the continuous integration effort that we currently have going on for OpenStack. Many of you might not know, but we actually operate one of the largest continuous integration infrastructures in all of OpenStack. We consistently are either in the top two or unfortunately this time around three in terms of the amount of upstream votes that we actually commit to the core project, okay? So, you know, from that perspective, we've got currently today 10 active continuous integration infrastructures with plans to add more for each project that we're working on. Additionally, some of those are continuous integration for the supporting projects, like OpenVSwitch, CloudBaseNet, that we consume as part of OpenStack, okay? Additionally, you know, we are looking to, as I said, grow, continue add more infrastructure and have commitment from our management going forward that this continuous integration infrastructure will operate to support our efforts with an OpenStack. So, we can assure you that we're gonna keep testing OpenStack with Windows in the same vigor that we're doing today going forward. Okay, time to talk a little bit about Mitak, right? So, what we have new and everything. We worked a lot, we have a lot of new feature coming with this release, which, by the way, for OpenV, just got released at the beginning of this week. So, if you can go to our website on cloudbase.it, you can download already the message, right? Very important, it doesn't matter what OpenStack distribution, to call it this way, you're using at the moment, whether if it's, you know, any of the big names that you know, or if you just deploy it by yourself from scratch or if you're using DevStack and so on, it doesn't really matter. So, you can just add Hyper-V compute nodes to any of those, okay? So, don't think that you need to have an entire Windows-based OpenStack to try it out. You can have your own OpenStack with, I don't know, one, two, three, whatever, KVM compute nodes, you can absolutely add Hyper-V nodes as well. So, they can perfectly live side by side. Our goal, once again, with all our effort is to maintain an interoperable footprint when we add Hyper-V into your existing OpenStack environment. Okay. From this perspective and talk about interoperability, you know, you can have your Hyper-V box as put them side by side with KVM, but if they have different type of SDN solutions implemented, they will never be able to talk, okay? So, you cannot have like a Linux VM running on KVM, talking to a Windows VM running on Hyper-V if they don't have an underlying networking implementation that will allow you to do that, no? So, that's actually the main reason why sometime ago we decided to port Open, we switched to Hyper-V, okay? How many of you guys use OBS? It's good amount. Good amount, as I was expecting. So, it's the fact of standard for SDN, so it's not something that you can just ignore. It's actually evolving very fast, very well and everything. So, it's a great way to make sure that different type of hypervisor can communicate among each other and also different type of network equipment and so on. Great interoperability, Hyper-V, KVM, ASXI and so on, VNSX, tunneling, VXLan, GRE, STT, and so on. We have a Neutron ML2 plus an OBS agent. So, the same OBS agent that you guys are running already on Linux works on Hyper-V in the same identical way. It's compatible with Open Daylight and NSX. And in theory, any OBS DB compliant SDN controller. Now, once again, just to be clear, we're talking about having a use case where people are consuming KVM with Open-V switch within an open stack environment. We can seamlessly plug in Hyper-V as a compute node without changing any underlying network architecture. So, the news here is that we have the new Open-V switch 2.5 release, okay? It introduces a ton of new features actually, way more than what I could fit here without going over time in a matter of a few slides. So, we have, just to be clear, we have all the type of encapsulation that you will expect. So, VxLangere, STT, MPLS, and so on. This is a stable release, okay? We had a previous 2.4, which was the first one that we introduced, and we always marked it as beta. The reason is that it was the first version, so marked as experimental. So, you were, of course, always encouraged to test it, try it out, but we were not encouraging people necessarily to use it in production. 2.5 is a stable release. So, meaning that we hope and encourage you guys to use it in production anytime. So, we consider it as stable as we have, for example, the Corent and Networking Hyper-V agent, which is based on the native Microsoft Networking stack, okay? And once again, should you want to use it in your production environment? You could feel free to work with cloud-based solutions to help you implement that. Among the many features that we have, for example, we have also LACP support, this is something that was not available in the previous release. So, that's great actually for all your bonding needs. Okay, all your bonding needs. So, Alzandro alluded to earlier, Nano Server. Nano Server, from my perspective, is being a relatively new employee to Microsoft, but a longtime user, right? Is a revolutionary step forward in how we distribute and consume Windows Server, okay? We're talking about a sub-500 meg footprint that contains the core functionality for hypervisor and storage, and allows you to do things very similar in those smaller footprints that you would do with Linux, okay? So, highly efficient, highly tuned, a lot of the stripped down to provide the type of compute environment that a lot of us expect today when we consume, or build out cloud infrastructure, okay? It's basically Windows without Windows, no? Yeah, it actually has a shell. Yeah, it has no graphical user interface, you can use PowerShell, for example, or mounting to connect to it and so on. So, for those of you who are used to using Windows Server Core, we're talking about an even smaller footprint than that, right? Like, tiny. Okay, Storage Spaces Direct. Ever heard of this? Yay, some hands, very good. So, Storage Spaces Direct, it's a great technology. It's the idea that you have a full-share and nothing storage, exploiting the individual disk that you will have on a traditional commodity servers, okay? SSDs, SATA, SAS, whatever you have, okay? And all together, those disks will basically create a single storage pool that will be distributed across the nodes, okay? The main idea is that this way, you can have a regular servers, no need for traditional, expensive, sand type of storage, okay? While still have all the benefits of having a type of distributed storage, okay? Data mirroring, so all your data will be basically mirrored across multiple nodes, so if you just plug the plug from one of those servers, it will still work, okay? All the mirroring, so all the traffic will be based, of course, on your network adapter, so we highly recommend to use 10 or 14 gigabit nicks, okay? But that's, again, very commodity stuff in nowadays enterprises, right? It uses or leverages scale-outread server, which is based on the SMB3 technology, and you can also use SMBDirect or NDMA enabled adapters nicks so that you can exploit that extra bit of performance thanks to the offloading that this provides, okay? Once again, we also, you know, as part of this provide, you know, Cinder integration with that technology to help enable open stack, hyper-converged, hyper-C. Okay, so just a couple of notes here about hyper-conversion became, of course, a very hyped word, okay? But it's definitely the direction in which everybody's going to go in terms of deploying because the advantages are clearly overwhelming. I mean, it's not something that you can compare it to the old traditional way of splitting storage from compute and so on. The idea is simple. All the nodes are identical. They have storage, compute, networking, and so on. If you need to plan new capacity, no problem in saying, okay, I need 30% more storage nodes, 40% compute, and so on. You just take the same identical ones and they will just deploy in production. Then you can use a bare-metal solution like, for example, mass like we usually do or ironic and so on, and you deploy your nodes from the bare-metal up, okay? So also very agile, very efficient as well. We already have, based on Windows 7 2016, an OpenStack distro that you can just deploy on your environment. It's based on 2016, which is not yet available in production, as I was saying before, it's in technical preview. But feel free to deploy it for proof of concept and whatever. What we typically tell our users and customers is to deploy a proof of concept today, and then in the moment in which 2016 will go RTM, so it will be available for general availability, you can just flick a switch and redeploy automatically all the node with a new version and just go in production with it, okay? But you will already be used to it. The environment will be already fully test-driven as well. Okay, well, we already talked about this. Pymi. Okay, so Python on Windows is an interesting topic, okay? It works great. So Python is definitely a multi-platform language, so there is nothing actually that prevents you to use it on Windows, okay? But the underlying library, which will offer interaction with the operating system, except, for example, C-types, depend, of course, on some modules which are available from the community. One of those leverages is so-called WMI APIs, okay? The current module that everybody uses on, and it's available on PIP and everything, is the WMI module based on Python 32, and it was written somewhere in 2003, so it's based on a very old implementation of WMI. That's what we used to use until the Liberty release when we got really fed up by how slow it was, this approach, okay? So we decided, okay, stop for a second, let's write a new module that will actually leverage the new stack, the new management API stack, which came with 2012, it's called Managing Infrastructure API, and it also was designed to be a full drop-in replacement for the old module, so if you had the applications which were using the old WMI module, you were simply able to replace it with a new one and just go on, okay? So for example, that's a case of OpenStack. You take a kilo or June release, you deploy the new module and everything just works, but it will be extremely faster, okay? And let's talk a little bit about how much faster. Here you go. This is an example of how faster we got from the previous release to the current one. Okay, the performance takes care not only of the fact that we introduced WMI, but also the fact that we introduced a lot of additional improvements, driven by the fact that we are finally able to rely on a way faster underlying module for doing this, okay? So on the left, you can see the two almost vertical lines that represent the difference between the old WMI implementation in Parma. It is actually for one specific OpenStack service, which is the neutron agent, which was always one of the biggest bottlenecks when, especially when deploying security groups ACLs, okay? So when you have hundreds of machine, it used to be very, very slow, okay? Now you see a completely different curve if you see on the right, especially with increasing the number of threads, there is an enormous difference, okay? PyMI, you know, Python is notoriously a non-multitrader language because you have some issues with the fact that only one thread at a time can own the SQLGL, so it's common from other interpreter languages as well, like Ruby and Son. We overcome this issue by leveraging a lot of parallelism in the underlying C++-based module that we developed specifically for this. So it's C++ under the hood and Python over, okay? So the best of the two worlds. The results, we will publish, of course, some benchmarks pretty soon. We use Rally for doing all the banks, so hundreds of machines deploying in parallel and everything, and we are talking about the 10 times plus actually performance increase from the older model. And not only are we at this point, we are way faster with Hyper-V with Windows workloads, so we are talking about 20% at least faster than other hypervisors. And, but we even managed to get faster with Linux, okay? That's especially thanks to all the improvements that happened also in the Linux guest with the LIS components. Okay, I will stop here with the comparisons, otherwise it feels like I'm comparing detergents or stuff like that, but that's it, yeah. So one of the other key areas that we had been approached to help enhance support within the community for was specifically around the fiber channel support for Windows Server within Cinder and OpenStack. So we decided to work together with HP to actually build that support. We run the CI for that in the Cambridge continuous integration infrastructure. And essentially, as a result, we not only added the three-par fiber channel driver for fiber channel, but also for iSCSI, okay? And it gives the same user experience across this project as it does for our other Cinder projects, okay? From a storage perspective, and it allows you to utilize those assets if you have them in your OpenStack environment with your Windows guests and hosts as well, okay? We utilize a pass-through for boot from volume. Also, vSAN support will be coming soon, yeah. The reason why we went to the pass-through for this one is that we needed also a boot from volume form which is not available in the vSAN support itself, yep. So additionally, we add a multi-path IO support, and as I said, iSCSI support, we leverage the host-based MPIO, and it's compatible with Windows Server-supported targets, okay, okay. That's a pretty important topic. Just a question, how many of you guys use containers? Okay. How many of you knew that Windows Server containers are coming? Awesome. Whoa, that's great. Perfect. So from our standpoint, you know, with all this momentum that's around now behind containers and within this ecosystem, we wanted to ensure that we could take advantage of that as well. So with the work that's coming out of the Windows Server team on containers, they've done excellent work to integrate Docker APIs on top of that. So if you're just from a straight Docker perspective, we're talking about Docker files building Windows containers, right? It's pretty cool. The support for that container technology was merged into Nova Docker. So if you want to use it within your Nova deployment, you can do that and get Windows containers out of Nova. Additionally, we've added support for Magnum. So when Windows Server 2016 is released, you can implement Windows containers on your OpenStack environment using the same technologies you're using in your Linux environment today in your OpenStack deployment, okay? Yeah, we are investing a lot on containers. So Magnum and someone will be an important area of development during the upcoming cycle. So if you have any questions, please come forward and ask us, okay? So not only Magnum also, for example, Kubernetes, Mesos integration and so on will be definitely on top of the list. So one more thing to add here, when we talk about containers, one other key critical feature that's coming in Windows Server 2016 is the ability to nest, such being we could actually run Hyper-V in a container, okay? So it's from our standpoint, having not had nested virtualization for quite some time, we're very happy this is coming because it's gonna essentially, hopefully make our CI life a hell of a lot easier, right? All right, next topic, Hyper-V failover clustering. So you know the story with pets and cattle, right? So, or as a friend of mine says, cats and petal. The main idea is that OpenStack and modern cloud designs are made for lots of machines in which the individual machine, the virtual machine or container or physical node can fail anytime and your application keep on going because the application themselves are designed to be full tolerant, have availability minus on. But what to do with all the legacy type of deployments that you have, okay?  So we have a lot of requests of companies and users saying, okay, well, I have my mail server, my database and everything. I would like just to take them and make them work on OpenStack just enough for consistency where the rest of all the new and shiny workloads that I have. So that's actually where Hyper-V failover clustering comes in hand, okay? It's basically host-based full tolerance. This means that whenever one of your Hyper-V nodes dies for whatever reasons or if you needed to put in maintenance, you will just be able, your virtual machine will keep on running by simply move automatically on a different node, okay? Take about line migration but triggered by some automated system, okay? Of course, it's much more than that, okay? But that's the main topic.  This is called node draining in the jargon. And if it crashes, they will automatically restart from another node, okay? This is called failover. It integrates seamlessly with Nova because one of the traditional discussions around this topic was always the fact that what happens, I mean, when you have the Nova scheduler taking some decision and the cluster saying something else, okay? The idea here is that the Nova scheduler is always what commands, okay? Then the cluster will simply failover and update the Nova configuration. So if your virtual machine is running on node A and failover on node B, our Hyper-V driver will always tell to Nova, look, this specific Hyper-V node, this specific Hyper-V virtual machines is now on host B and no more host A. So it will always be consistent and transparent. Most important, not only it will give peace of mind to your users but also to you as the employer because it comes out of the box with Windows. So it's just one of the features that it's very easy and simple to deploy. We have a blog post that we published this week on our website if you want to learn more. All you need is a domain controller and for the rest it will just work on the free Hyper-V server and whatever other Windows server version that you guys might use. It supports all the networking options that we have. For example, Open-V-Switch or the native Windows server networking, Hyper-V networking, and it supports also seeing the S&B volume. So all your volumes will remain attached actually to your machines. When do we use it? When your VMs don't necessarily run full-tolerant applications, traditional enterprise apps that delegate full-tolerance to the host. And again, as I was saying before, it's a very common request from our users. Next topic, so I'm going quite quickly on top of the next list. How many of you guys use VDI in OpenStack? Let's see. Oh, there's a couple. There's a couple. That's pretty good. So, Windows server and Hyper-V are definitely the best platform out there for VDI. Okay, so Windows, especially for Windows, for workloads on the running on top of Hyper-V, okay, without taking anything from other competing platforms, of course. There are a lot of new additions for remote effects in Windows Server 2016. So remote effects, as I'll use, basically to share your GPUs running on the host between virtual machines running on the host itself, okay? So you can have up to one gigabyte of dedicated RAM, with, of course, the other options you have here. And you can also have shared VRAM, so we can basically over-commit the VRAM that you have, support generation one and generation two VM, and very important supports OpenGL and OpenCL API support, okay? So, if you have some scientific type of, let's say, workloads, that's perfect, okay? Very useful in both private and public clouds. We have also videos available and a blog post available at the link which is available there. And actually down you see also link with the video showing the big difference between the two, okay? Shielded VMs. Just a quick note about this, because we didn't publish it yet, we will publish it extremely soon. I mean, publish it as in available in the codebase for OpenStack. These are a very unique Hyper-V feature and it's a great feature. The main idea, the main reason behind is that you cannot really trust the underlying host, your hypervisors in a cloud, okay? What happens if a hacker will take control of your host? In normal traditional environment, it will simply own all your virtual machine running on top of it, okay? So, if you have some significant amount of sensitive workloads, that's gonna be a problem. These solutions, which is based on isolated user mode, BitLocker, TPM support, Hyper-V, of course, and so on, will allow you to make sure that whatever happens to the underlying host, there will be no way to taint and basically eavesdrop in the content of the virtual machines themselves, okay? So, full encryption of the data and basically an extremely tiny attack surface that won't allow any attacker but can compromise the underlying host partition kernel or user space to access the virtual machines themselves. Very, very interesting feature coming within the server 2016. As a bonus, you'll also get a VTPM support, okay? If you want to have a TPM in your guest. On networking, you wanna talk about this one or? So, for Windows 2016, the networking model changes slightly, so we wanna take account for that in our work going forward with OpenStack. It's a REST API-based interface. The controller runs on Windows Server nodes and there's a dedicated 4D extension, the excellent offloading and some OVSDB compatibility from the new native interface. Okay, so this stuff will come as well in Utah. This is, of course, a new networking stack coming with Windows Server 2016. So, it's, of course, our pleasure in duty to say, so to include it also in the next version of OpenStack. So, much like the existing networking model that we can consume today out of the basic Windows Server in 2012 R2, you'll also be able to consume the new networking model that will be presented in 2016 within your OpenStack environment as well, natively. Okay, some other minor updates that, so all this stuff is already fully support in OpenStack Meetup, okay? So, if you download our installer. VNIC hot add, meaning that you can add a NIC, also a virtual NIC to our running virtual machines. You can have secure boot for Linux VMs. I'm a big fan of secure boot, okay? Previously, it was available only for Generation 2 Windows VM. Now, it's also available for Generation 2 Linux VMs, okay? All you need is an API type of partitions and to just work. We have finally nested virtualization. So, you can run a VM with Hyper-V running on top of Hyper-V, and you can play with all these inception as much as you want. The main idea, okay, this sounds like it's just like a crazy lab med scientist scenario. In reality, it's extremely useful for testing so that you don't have to deploy. For example, if you want to test OpenStack, you can just test OpenStack entirely inside of virtual machines without having to deploy it on physical nodes, okay? Some to guess, okay, REFS, a new file system from Microsoft with additional features fully support also on storage spaces direct. And that's actually the main list. There are some other minor things, but let's say those are the ones in which we mostly focused. So, some time back, we decided to work to bring Juju to the Windows platform and Juju Charms as well. So, what that means is for those of you using Juju as your orchestration mechanism, we have a significant amount of Windows workloads and traditional Windows IT workloads available for consumption in that automation model, okay? Here is actually a list of the catalog available on our website. Basically, all the type of Windows workloads you might actually think about. SQL Server, SharePoint, Windows clustering, Active Directory, IIS, WSUS, SMB, VDI, and so on. So, all the main things that come to mind. And for those of you who may not be using Juju, we also have this technology available as heat templates, okay? On the opposite side of the spectrum, we have a small project which called Vimaging. The scope of this project is to allow anybody running Hyper-V, including, for example, a Windows 8 or a Windows 10 laptop, okay, to run OpenStack on that specific Hyper-V box, okay? It will create basically a VM running a Linux-based controller, and it will use the host itself, could be your laptop or just a server or whatever you want, okay, as a compute node. This is actually most probably the fastest way to test OpenStack today.  It runs even on a surface, so it doesn't really need too many resources, and it's fully guided, automated, and everything. Okay, just a couple of notes about Azure Stack. Anybody heard about Azure Stack? Okay, a few hands up, okay. Azure Stack is a new product, and it's a project coming from Microsoft. We receive a lot of questions about what are you guys doing with Azure Stack? What about Azure Stack and OpenStack and everything? Well, our point, there are standpoint as cloud-based solutions that is that there are two completely independent projects, okay? It offers the Azure REST API, the ARM API on top of your on-premise cloud, users with the server 2016 operating system features, or the same ones that we have also underlying OpenStack, and we also offer a service to migrate between OpenStack and Azure Stack, for example, if you want to experience how to work on both environments. Currently, it's available in technical preview, and we work definitely on both environments, and we see our customers and users asking questions, evaluating also the idea of running both of them at the same time, okay? There is nothing wrong with that. So, if you have the intention of deploying Azure Stack, please come and ask us the questions, especially if you plan to have both environments deployed in your scenario. Okay, so once again, as we said earlier today, we do support your workloads, okay, if they run in OpenStack. If you have questions specifically about the Microsoft technologies, you may email openstackatmicrosoft.com, and we will get back to you to help you and answer those questions. And if you have questions regarding any of the cloud-based technologies that we've talked about today, you can go to ask.cloud-based.it and get answers in the open source channels that are available there. Okay, we are slightly over time, plus we are what remains between here and your parting, and a lot of other things. If you have any questions, that's the right moment. And if those who would like to ask questions, could you please step up to the microphone such that we may get it recorded in the session? We have a question. Go ahead. Hey guys, I'm Rich Dole from Box Cloud Engineering. Firstly, great work on the Windows stuff. Love it. Quick question, you mentioned Open Daylight Integration. You've got a fairly extensive deployment that's using OpenVswitch and OpenFlow 1.3 or 1.4 to provide overlay and connectivity without having to use STP and no controllers. Is that scenario supported in your OpenVswitch implementation? Definitely yes, because we have the full compatibility for both OVSTB and OpenFlow. So the fact that we have 2.5 running on the node itself doesn't mean that we don't have compatibility for the previous OVSTB versions. Okay, thanks very much. Very welcome. Thank you. Go ahead. We have 40 compute nodes running under KVM. In order to run nested Hyper-V, I'd have to replace some of them with Hyper-V as the place to KVM with Hyper-V? Well, KVM already supports a level of nesting. I'm not sure. I remember in the past. No, it's exciting. So it supports very well, for example, or works very well, which is unsupported. Nested Hyper-V, but KVM is not yet necessarily there. Yeah, I thought there was some pattern. Yeah, to be honest, I'm not that well versed, but I... So I'd have to take some of the KVM nodes and replace them with Hyper-V. That's a great idea. Yep. And when you want help doing that, you can email OpenZagatMicrosoft.com. Sounds reasonable. Okay. Go ahead. Just the recent work to port some Ubuntu user land stuff over to Windows, signal adoption route for some of the traditional Linux-based server technologies in Windows Server 2016. So if you're referring to the recent announcements about the bash on Windows, let's clarify first, right? We're not porting anything. What we're doing is we're providing elf compatibility in the Windows kernel, right? So you're natively running those executables on Windows, right? Yeah, so reverse wine, right? Yeah. Cisco level interpretation. Yep, well... So would that enable you to take Linux binaries and make use of them on Hyper-V natively? Absolutely. So you can run your entire stack on that. In theory, absolutely. Now, we haven't done extensive testing in that area to determine exactly what it is. But from the preview releases or the discussions that were recently, I think it was a build, that is possible. I would assume, depending upon what application it was, there could be some issues. But in theory, yes. So just to clarify, this bash on Windows is mostly for developer scenarios, OK? So for example, we have it on Windows 10 today. So is there a limitation where you can't open? Yeah, so unless you want to run server applications on Windows 10, of course, it doesn't necessarily help too much on the server side today, OK? The future, who knows? But for the time being, it's a little... Also, in terms of terminology, the kernel is specific Windows kernel, OK? So you have all the new type of user space tools running directly on the Windows kernel. So one way to call it is, for example, GNU slash K Windows, for example. And Ubuntu, of course, canonically is providing all the support and all the user space binaries. Very interesting thing, for example, this work allows you to run primitives like Fork, which are traditionally not available on Windows, to the difference between how the processes work. Win32 processes work compared to F type of binaries and Linux process, OK? OK. Great. Go ahead. Last question. From an operational perspective, if I'm running Hyper-V and Open-V switch and two VMs can't talk to each other, who do I call? Who do you call? Do I call? Do I give you my phone number?  You would call CloudBase Solutions. OK. And then they would reach out to Microsoft. So to be clear. I'm just curious from a support perspective. We work very closely together to ensure that these technologies work, right? CloudBase Solutions will be your support provider and our partner to deliver that support to you, OK? But I assure you that technology is getting tested in our continuous integration infrastructure, and we work extremely close to ensure that we're going to deliver a great user experience to you, OK? Thank you, guys. See you later, other parties. Thank you, everybody.


Good morning and welcome to the Australian National University, wherever you may be. I acknowledge and celebrate the first Australian on whose traditional lands we respectively meet and I pay my respect to Earl's past and present. Now I'm joining you from Western Australia on the lands of the Wajak people of the Noongar nation and it could be tricky given the technology is still adjusting to the new normal of online conferencing it seems but if anything happens to my screen we have Richard Moore standing by ready to assist. It's an honour to welcome everyone today to the keynote address of the 2021 ANU Crawford Leadership Forum and to be given by my dear friend and former parliamentary colleague of mine the Honourable Josh Frydenburg Australia's Treasurer. This morning we've had a thought-provoking opening plenary session covering trends in the global economy, the outlook in coming years and what this might mean for Australia and we're certainly looking forward to learning more from the Treasurer's address. By way of introduction might I say what you already know that Josh was elected to the Australian Parliament as the member for Kuyong in 2010 and has been Treasurer and Deputy Leader of the Liberal Party since 2018. As Treasurer Josh has been at heart of the government's response to the COVID-19 pandemic in particular the development and implementation of the programs that have helped keep Australians in jobs and small businesses afloat in incredibly difficult circumstances and now as the vaccine rollout accelerates he's equally prominent in the national discussion about how best to move from large-scale lockdowns to learning to live with COVID-19 so that our economy can fully reopen. Earlier this year before the Delta variant hit Australia's economy demonstrated remarkable underlying resilience recovering to its pre-pandemic level. I think that's a rare feat internationally. Australians now face a less certain environment for travel, employment and the economy with a range of restrictions in different states. Adding to the complexity for policy leaders a longer-term trend shaping the world economy from the technology revolution shifts in the relative economic weight between countries and regions and backlash against the forces of globalisation in many parts of the world. So there's a lot to talk about and think about both over the near and longer term. We are so delighted to have the Treasurer join us. We will have some time to take a small number of questions from the audience following the address but in the meantime Josh delighted to have you. The floor is yours. Well thank you very much Julie and can I thank you for your leadership. Not just as now a Chancellor at the A&U and the work that you're doing there but the work you've done is foreign policy and as the Deputy Leader for such a long period of time and it's been very significant to see the changes in foreign policy and to see how you led us in that very very important role as Australia's first female foreign minister but also the broader work you're continuing to do in the education sphere and elsewhere. Can I too acknowledge the traditional owners of the land and pay my respect to their elders past and present and thank Richard and the A&U for their leadership and for organising this forum and inviting me to give the keynote speak at a on a very important topic namely global realities and domestic choices. As the title of the forum suggests we live in very challenging times. COVID-19 has fundamentally changed the global landscape. It has triggered the largest economic shock since the Great Depression. It has seen the delivery of unprecedented amounts of fiscal and monetary support. It's led to a very dramatic change in the way we live and the way we work and reshaping global supply chains and accelerating the adoption of new technology but it's not just COVID-19 that we must grapple with. Climate change remains a critical global challenge one we must all respond to and new emerging technologies such as AI, robotics and nanotechnology are opening up exciting new possibilities but also creating new tensions. Today however I would like to focus on another key global challenge one that is reshaping our external environment and our domestic policies. I'm referring to the return of strategic competition strategic competition that is increasingly playing out in the economic arena. Further blurring the lines between economics politics and national security. In many ways Australia is on the front line of this new strategic competition. We have faced increasing pressure to compromise on our core values and when we have stood firm as we always will we have been subjected to economic coercion. As the Prime Minister said at the US Asia Centre in June competition does not have to lead to conflict nor does competition justify coercion. Australia will always choose partnerships ahead of conflict whenever we can however heightened strategic competition is the new reality we must face now and likely into the future. Our task is to prepare for and manage this competition and in the new world economic resilience will be key. Key to our strategic interests and key to our economic interests that is why the Morrison government is taking strong and active steps to further strengthen the resilience of our economy. We are doing this by building a stronger more dynamic and competitive economy by supporting our businesses to diversify and adapt to this new environment and we're necessary by securing our critical economic systems and industries. Today I would like to expand on these particular points. Firstly there can be no doubt that strategic competition is back. It is a defining feature of the security and the economic landscape that we face. Those that have advocated the end of history in the early 1990s have been proven wrong. In March of this year US Secretary of State Anthony Blinker said that America's relationship with China represents quote the biggest geopolitical test of the 21st century. He further noted that the US relationship with China will be quote competitive when it should be, collaborative when it can be and adversarial when it must be. This is a very different global environment to that faced by recent Australian governments. It's a far cry from October 2003 when President George Bush and President Hu Jintao both addressed the Australian Parliament in successive days. We have all witnessed the major shifts in global economic weight over recent decades defined by the re-emergence of China and its rapidly growing economic weight. This has helped to lift more than 800 million people out of poverty and has been a major contributor to global economic growth and prosperity. But more recently it has been defined by another feature, a more confident and assertive China, a China that is willing to use its economic weight as a source of political pressure. It offers economic carrots through initiatives such as the Belt and Road and it threatens economic consequences for perceived misdeeds. The Australian Strategic Policy Institute noted recently that China had used coercive tactics 152 times between 2010 and 2020 against 27 individual countries as well as the EU. China is also tightening its control over its business sector at home and abroad. We have faced strategic competition before, including during the Cold War, but there are more important differences this time around, most notably our highly integrated global economy and trading system. During the Cold War, the Soviet Union was largely cut off from the rest of the world. It did not trade or invest much outside of its sphere of influence. Its investment and trade with the United States was negligible. Contrast this to the present day. The IMF estimates that China's share of global GDP will increase to 18.8% in 2021, up from just 7.7% in 2001. China became the world's largest exporter of goods in 2009 and by 2019 it accounted for over 13% of global exports. In 2001, the year that China joined the World Trade Organization, more than 80% of countries had a larger volume of trade with the United States than with China. By 2018, this figure was down to only 30%. Almost 130 countries now have China as their leading and largest trading partner. This combination of economic weight, global integration and assertiveness poses new and significant challenges for many countries around the world. And Australia is no exception. Indeed, Australia is facing this pressure more sharply than most other countries. China is our largest two-way trading partner, accounting for over 30% of our trade. And the scope of our trading relationship has broadened over time, evolving from mining to agriculture to services such as tourism and education. And as I'm speaking at an ANU forum, I should note that despite the COVID-19 disruption, China remained our largest education export market in 2020 at $7.6 billion. In many ways, our economies are complementary, ensuring that the economic relationship is mutually beneficial. However, it is no secret that China has recently sought to target Australia's economy, citing 14 so-called grievances, covering everything from our foreign investment laws to our willingness to call out cyber attacks. They have targeted our agricultural and resources sector with measures affecting a range of our products, wine, seafood, barley and coal. We have remained steadfast in defending our sovereignty and our core values, and we always will. As Foreign Minister Maurice Payne has said, that does not mean we're anti-China or anti-any other country. It means we want all countries to operate by rules that protect our shared interests. But in the face of this new reality, our economy has shown itself to be remarkably resilient. Despite China's wide-ranging actions, our economy has continued to perform very strongly. At the headline level, this is best reflected in the fact that our unemployment rate has fallen to 4.6%, the lowest in around 13 years. Our headline trade performance has also been strong, boosted by record commodity prices. Indeed, our trade surplus hit a record in the June quarter of $28.9 billion. I'm not downplaying the impact of China's actions. They have heard specific industries and regions significantly in some cases. Nevertheless, the overall impact on the economy has been relatively modest. This is perhaps surprising to many. But it is worth noting that our exports to China of targeted goods accounted for just 5.9% of our total exports in 2019 and 1.2% of nominal GDP. And while China is easily our largest trading partner, we also have deep trading relationships with other countries. Our two-way trade with the United States was worth over $73 billion in 2020. Our trade with Japan was worth over $66 billion. And our trade with South Korea was around $35 billion, and they are to name just a few. And our largest contributor to foreign direct investment is the United States. China is only our sixth largest source of direct foreign investment. And this investment has fallen by around 5% since 2019, in line with a broader decline in overseas investment from China overall. We're also continuing to pursue new freight freight trade agreements to deepen our existing relationships and open up new and growing markets. We have agreed on the broad outlines of an Australia-UK FTA. This will see 99% of Australian goods, including wine, enter the UK duty-free. Our comprehensive economic partnership with Indonesia entered into force in July of last year, creating new export opportunities in a large and fast-growing market. And the comprehensive and progressive Trans-Pacific Partnership includes specific measures to help make it easier for small business to establish new export markets. This includes common and transparent trade rules to cut administration costs. Many of the firms and industries targeted by China's trade restrictions have also been very successful in redirecting goods to other export destinations. This is particularly the case for large bulk commodities that trade on global markets. Of those goods targeted by trade actions, our total exports to China have fallen by around $5.4 billion over the year to the June quarter. But over the same period, exports of those goods to the rest of the world have increased by $4.4 billion. Australian coal that would have otherwise gone to China has found buyers in other markets, including India, South Korea and Taiwan. Over the past year, our coal exports to China have fallen by around 30 million tons. But our coal exports to the rest of the world have risen by 28 million tons. Australian barley has also been redirected to new markets such as Saudi Arabia. Overall, Australian barley export tonnage was up by almost 70% to the June quarter. And Saudi Arabia accounted for over 22% of our total barley export volumes up from nothing in the June quarter last year. Australian wine producers are also looking to redirect more of their products to alternative markets such as the UK, Singapore and Germany and South Korea. Importantly, this demonstrates the strength and the power of global open markets. In many cases, trade actions simply see a reordering of global trade flows. I want to be very clear, China's actions do carry a cost to both Australia and to China. They rob Chinese consumers of premium Australian wine, seafood and other goods. And they rob Chinese industry of high quality and high value inputs like Australian coal. We would both be better off if markets were allowed to operate freely. This is why we want a constructive relationship with China. Nevertheless, in the face of these challenges, the Australian economy has shown itself to be highly resilient. Our economy has continued to grow stronger. Australian firms have pivoted by finding new buyers for their goods. And global markets have responded, redirected Australian commodities. This is the benefit of a strong, dynamic, open, market-based economy. A precondition for our prosperity and something we should always seek to preserve, to protect and to promote. Despite Australia's proven economic resilience, we cannot stand still. As I have outlined, our external environment has become more challenging. And it's likely to remain so for some time to come. So we need to continue to find new ways to reinforce that resilience, not just for now, but for the long term. This is a key priority for our government. As I've said earlier, we are seeking to do this in three important ways. First, by continuing to build a stronger, more dynamic and competitive economy. This is always our first and most important line of defence against economic disruption. A strong economy is the foundation for a country's economic resilience and its strategic weight. And our strong and flexible economy has served us well. It helped Australia to achieve almost three decades of uninterrupted economic growth, despite many external shocks, including the Asian financial crisis and the GFC. And it helped us navigate the COVID-19 crisis. That is why our economic plan is designed to deliver an even stronger economy. Lowering taxes for individuals. Providing tax incentives to encourage and support investment. Supporting Australia's digital transformation. Reducing regulation and making it easier for business to invest and grow. And investing more in skills, training and education. The benefits of a flexible and dynamic economy were apparent early on in this COVID crisis. As manufacturers of sleep apnea devices pivoted to produce much needed ventilators. As gym deciliaries moved to produce hand sanitiser. As businesses partnered with the CSIRO to test and manufacture surgical face masks. And as our sovereign vaccine manufacturing capability was put to good use by CSIRO. All of this quickly enhancing the resilience of our economy and benefiting Australian business. In the vast majority of cases, Australian businesses will have the capacity to pivot and respond to economic shocks without direct government support. However, when necessary, we will continue to support our businesses to adapt to the new and challenging economic environment that they face. In particular, we will continue to support our businesses to access new export opportunities, reducing their reliance on any single market. As part of our Agri business expansion initiative, the government is providing more than $72 million to help our farmers diversify and open new markets. We have reformed the export market development grants program which provides support to around 4,000 small and medium-sized businesses every year. And now the government will reimburse up to half of all international marketing and promotional expenditure up to $150,000 per business each financial year. And we're defending the interests of our barley and wine exporters in the WTO. And we'll continue to support our manufacturing sector to access global markets and build more sovereign capability in the areas of critical need. Our $1.3 billion modern manufacturing initiative will support businesses to scale up, translate ideas into commercial opportunities and integrate into international supply chains. And our supply chain resilience initiative provides grants of up to $2 million to firms to remove supply chain vulnerabilities for critical goods such as medicines and chemicals. This assistance empowers individual businesses and strengthens our economy overall. We'll also help to forge new partnerships with like-minded countries around the world to further strengthen the resilience of our critical supply chains. And finally, the government is committed to securing our critical infrastructure in areas such as energy, telecommunications and transport. These are our essential backbones of our economy.  We are heavily investing to strengthen our cyber capabilities. Cyber crime has estimated to cost the Australian economy more than $3.5 billion in just 2019. The Australian Cyber Security Centre estimates that at least 10,000 Australian based servers were potentially vulnerable to the Microsoft exchange cyber attack early this year. And that is why we have committed as a government over $1.6 billion to strengthen our cyber capabilities in line with our 2020 cyber security strategy. And we've also undertaken the most significant reforms to our foreign investment regime since their introduction to ensure that we effectively respond to this new strategic environment, including applying a national security test for foreign investors. This will require investors to seek approval to acquire a direct interest in a national sensitive security business, regardless of the value of that investment. New stronger and more flexible enforcement options have also been introduced. Some of these measures involve economic costs of their own through increased regulation or necessary investment in new capabilities. And we will always seek to minimize these costs for businesses. But given the changes in our external environment, there will be times when we must pay a premium to protect our economy and ensure long term economic resilience. It is also the case that Australian businesses will need to enhance their own resilience. Many have worked hard to access the lucrative Chinese market. This has brought great benefits to them and to Australia overall, and they should continue to pursue these opportunities where they can. But going forward, businesses also need to be aware that the world has changed, and that creates greater uncertainty and risk. In this respect, they should always be looking to diversify their markets and not overly rely on any one country, essentially adopting a China plus strategy. And in the same way that governments are investing in economic resilience, so too should Australian businesses from cyber risk to supply chains and everything in between. Before we move to questions, I'd like to summarize my key messages. The world we operate in has fundamentally changed. We face increased strategic competition. This will see our economic and our security interests increasingly overlap. Australia is on the front line of this new battleground. But we have shown great resilience to date. And I'm confident in our ability as a country and as an economy to withstand any shocks that we may face. The Morrison government is taking active steps to bolster our economic resilience and so too should business, not just for the long term, but also the short term as well. This is a responsibility that we all need to take seriously. I thank you for your time and I look forward to taking questions. Thank you, Josh. We really appreciate such an excellent, wide-ranging speech. And thank you for sharing those insights into our economic and other challenges and opportunities. Could you comment a little on the state of the labour market and how you see that going forward, particularly when we have a return to normal, whatever that looks like, and an end to the threat to lockdowns. How do you see the labour market in terms of its resilience at present? Well, thanks, Julie. I reference the labour market as one of an important economic data point to show that our economy has been very resilient through this crisis. Unemployment is down to 4.6%, which is the lowest in 13 years, and the participation rate has been strong and has been particularly pleasing to see more women enter into the labour market as well. I think a key point here with respect to the labour market is that we are seeing a significant economic shock right now with both New South Wales and Victoria being in lockdown. But what we have seen with previous lockdowns and the subsequent opening up or easing of restrictions is that people have got back to work very quickly. And we saw that, for example, in the most recent numbers. In Victoria, where after lockdown, the hours worked increased by 9.7% in that state. So I'm confident that we can keep the unemployment rate relatively low, remembering that when we came to government, it was 5.7% and remembering too that in previous recessions, we've seen a significant scarring of the labour market, not something that we've seen right now. So unemployment's low, the labour market's resilient, and I'm confident that once restrictions are eased, we'll see a jump in the hours worked as we saw in the recent numbers occurring from Victoria when they opened up after their previous lockdown. Josh, the intergenerational report that you released recently detailed the scale of our challenges in balancing the budget. What do you think will be the strongest drivers of economic growth in the years ahead? Well, Julie, the first thing to say is we did see in previous IGRs that we do see deficits at the end of the 40-year projection period. Why? Because we have an aging of the population. So that comes through in this IGR very clearly as well. And that's a structural shift in the economy, which changes everything from participation rates in the labour market to increased health spending, aged care spending, and the like that comes with an aging population. So I think that's one of the big key takeouts of the IGR. The other big key takeout of this year's IGR was that for the first time in an IGR, we saw a downward revision in the population growth trajectory. And that is a function of the impact of COVID and the closed borders and the fact that our population growth is the lowest in 100 years and we've seen more people leave the country than coming to the country. So I think from that IGR, the two big takeouts for me, among a number of important takeouts were what's happening in terms of population size and what's happening in terms of the aging of the population with all those consequential impacts. In terms of the drivers of economic growth from here, one of them is what we've been talking about today, opening up new markets. We've got a huge and growing middle class in our region. And the relationship, for example, with India is going to be critically important going forward as more and more people into the middle class in that country as well as other countries in our region in Indonesia is another good example of that. So tapping into the markets in our region, not just China, but China Plus effectively, is going to be a driver of economic growth. Another key driver is how we as an economy adapt to the rising or the acceleration of new technology. And we've seen that through COVID in the way that people have adjusted to working from home or shopping online or communicating on the Zoom. I think that's going to be a permanent feature of our economy on the other side of COVID, that rapid acceleration in the uptake of technology. But that can be a very important driver of economic growth and productivity. And then another key issue for us is going to be around skills, training, vocational education. How do we ensure that we are equipping the employers of today and tomorrow with the workers that they need? And trying to align those interest, Julie, is going to be critically important. That's why we set up, for example, the National Skills Commission. That's why we've invested in the job trainer program in such a big way in the budget, investing in more university places. There's a lot of work being done there to ensure that we have the right workforce to meet our needs. And one area of huge need for workforce in our country is going to be in the care workforce as more and more people take up the NDIS as we see more and more investment in aged care and more people aging in our population. We're going to need an appropriately skilled as well as a sufficient number of workers in that care workforce to meet the growing need. The world's major central banks have provided significant liquidity to the banking sector and the financial markets during the COVID crisis. But there are concerns about inflationary pressures that are rising in the United States in particular. Are you concerned about the rate of expansion of liquidity and the potential for inflation and what that would mean for us? Well, obviously that's a very important topic. We've seen unprecedented monetary support through this crisis as we've seen unprecedented fiscal support. And this could have quite a impact on the overall debt burden for many countries, some of whom will be quite vulnerable, I think, in the future to debt related shocks. And Australia will be well placed here because our net debt to GDP is less than half of what it is in the United States and the United Kingdom and a fraction of what it is in Japan. So we can manage that higher debt burden that's been incurred as a result of necessary fiscal stimulus during this crisis. With respect to monetary policy and the overall inflation rate and what happens there. I'm not overly concerned. Julie, as you know, there was a temporary spike that we saw in inflation here in Australia, but that was only temporary off the back of free childcare and lower petrol prices and a few other factors which were one-offs in the context of the pandemic response. But in terms of the broader inflation rate, we've been well below that 2-3% target range that the RBA has had. And the RBA has been pretty outspoken in saying they're not expecting to lift the interest rates anytime soon, the cash rates at a record low of 0.1% of a percent. And so I'm not overly concerned right now as to where the global and where the Australian inflation rate is at given that it's been below the band for some time. But we'll continue to closely watch, particularly that the impact that the easing of monetary policy globally has had on the overall debt burden, because particularly some of the developing countries I think could be more vulnerable to external shocks in that regard. Sure. Now Josh, you spoke a lot about Australia's outstanding export performance. You will recall of course at pre-COVID, two of our most significant export earners were in education, international students, and in tourism, the number of tourists we had coming to Australia. So I think education was in the top three, export earners and tourism in perhaps the top five. The loss of international students has impacted all universities in Australia, including Australian National University. Does the government have a timeline for when students once again can travel to Australia? And is the government prepared to work with universities like ANU who have pilot programs in place that could be implemented in a COVID safe way? Well of course it's a critically important issue at a number of levels. Obviously it means a lot to our economy. It means a lot to our universities and more foreign students that can come to Australia, the greater their experience and understanding of Australia is. Julie, I remember you bringing in the reverse Colombo plan, if you liked it, and giving Australians the opportunity to work overseas in businesses or work in foreign affairs departments or the like, or universities was all about giving Australians the opportunity to better understand our region and our world. Likewise, the reason why the initial Colombo plan brought in by Mendes was so successful was because leaders in our region got to experience Australia. So I'm a big supporter at a number of levels, foreign students coming to our country, contributing here and hopefully also becoming long-term residents and citizens is our hope as well. Look the international student market is worth about $30 billion a year to Australia and I referenced that $7.6 billion in terms of the Chinese market. It's nearly about a quarter of the overall market. I do want to point out that the Chinese students to Australian market has actually been pretty resilient. It was only down about 6% in 2020 compared to the year prior and that is a lot less than the fall for example with Indian or Nepalese students and so it is quite interesting because they've obviously moved to online education and Australia is still an important destination and an valued one for international students. With respect to borders and bringing cohorts of students, of course we're happy to have that conversation with the ANU. In the plan that sees vaccination targets, Julia is 70 or 80%. We see in that period when we move from 70 to 80%, the opportunity to bring in student cohorts within the caps. The caps sort of move back to where they were at 70%. And as long as they can remain within the quarantine caps, and we're going to see more vaccinated Australians coming back as well within those numbers, but as long as they can remain within the caps, there is opportunities for international students to come. Once you get to that 80% vaccination target, you can even start to see more international students coming. And I know that New South Wales, for example, is looking very closely at this particular issue. So having pilot programs, cohorts of students to come as those vaccination targets go up, I think is a real opportunity. And of course, once we reopen those international borders, hopefully you'll see a lot more international students, vaccinated ones, of course, coming to Australia. How's that timeline looking? Well, it's highly dependent on reaching those higher vaccination rates. But as I say, from 70% to 80% in that period, I think there's going to be an opportunity for some international students to be coming to Australia within those caps. Josh, we've now got a number of questions coming in there, two terrific questions I'd like to ask and I'll ask them. The first is from Gareth Evans, of course, my predecessor here and a distinguished foreign minister. Gareth asks, in meeting the economic challenge posed by China's retaliation against Australia, are we getting sufficient support from our great and powerful ally? Recent reports have suggested, for example, that US producers haven't hesitated to take over our previously leading position in the Chinese beef market. How hard is your government pushing this in Washington? Well, nice to hear from you, Gareth. Well, the first thing is, trade, as Gareth knows and you know, Julie, from both as foreign ministers, it's a pretty competitive space. So when one exporter vacates the market for whatever reason, another can quickly fill it. We are cooperating with the United States, but at the same time, we're looking for other markets for our goods. And our goods are high quality, whether it's barley, whether it's wine, obviously the coal that we export cotton. A number of these products that Australia has been targeted by China have been able to be diverted to other export markets. So the Americans as well as others are fully aware that Australia has been targeted. They're fully aware of the 14 grievances that China has issued. And of course, those 14 grievances are unacceptable to us and no doubt unacceptable to other like-minded democracies as well. We are cooperating with the United States in one other particularly important area, and that is around critical minerals and ensuring that we have secure supply chains. And Australia obviously has a great advantage in this area. But if we can ensure that we're not just supplying these materials, but that we can be part of a value added supply chain. And for example, in the United States, they're using our critical minerals to help develop some quite sensitive technologies and equipment as critical minerals are used to do. Then that can be a very important development and help build that supply chain resilience that we need. So we are cooperating with America. Their exporters, no doubt, will look to secure new markets. But with respect to Australia's exporters, we've been pretty successful in diversifying ours. Josh, there's a question from Gordon De Brua. He says, Treasurer, thank you for your comprehensive speech. Can I ask about how you see Australia working with other countries, especially in the region, on strengthening rules in areas like digital and data, and the use of informal processes like G20 and APEC to build ideas and lead domestic reform in countries that matter to Australia economically? Well, thanks, Gordon. Well, the whole digital space is very exciting and it's moving very quickly. I can only give you a good example that I was involved in with respect to the digital giants and what we were doing with Google and Facebook and how we were managing that relationship and getting them to pay for original content. And there was a great deal of interest globally with respect to what Australia was doing and the cooperation has been occurring there and the EU was very interested in it. And so there are some developments there. We've also developed bilateral relationships with Singapore with respect to digital transformation and the broader digital agenda. So there is some good partnerships. Germany is another country we continue to work with. And we're moving into this whole new world of cyber warfare, cyber security, and therefore cooperation is very important. Another issue, obviously, is the posting online of material, terrorism-related content, material and others, and getting global cooperation about how that material online is being managed is important. And you may remember Scott Morrison raised this in the context of the G20 following the horrific events at Christchurch a couple years ago. And when that happened, the Prime Minister raised it. He got a lot of traction and there was some movement globally. So there's a lot of work, Gordon, happening at a number of different levels with respect to the digital transformation and what it means for our economy, what it means for data security and overall cyber security as well. On that note, we must bring this session to an end, Treasurer. Thank you so much for your participation. It's been a highlight so far and I know that the participants greatly appreciate your involvement in the Crawford Leadership Forum this year. You covered such a wide range of topics, as always, so forthright and knowledgeable and insightful in your answers. And you really have been such a stable, calm influence on the public throughout this rather traumatic time of the COVID-19 response and restrictions. So thank you for taking the time to be here. We wish you all the best as you continue to battle with the challenges that we face, but we know we're in good hands. So I will now hand back to Richard Moore to conclude this session. Thank you. Well, I think our link is going to end. So I'm just going to say, thanks again, Treasurer. Really appreciate it. And thanks to all our audience who were listening in today and so being so actively engaged.


We are starting our Hollywood hike. Fake news, there's legit a coyote. Wow, an LA too, that's the L-A-E-N zoo. So I'm gonna do a really quick haul. Hey guys, good morning, it's June 23rd. It is currently 6.10 a.m. and we are about to get picked up for the Hollywood hike. We're eating some toast. And you know, I'm kind of scared because I just don't like to exercise first of all. Secondly, the last time I went on the hike, they said it was gonna be that bad, but I honestly felt like I was going to die. But it was mother who died. It was like this straight up, like so steep. That's what they're doing again. They're like telling me that it's not gonna be that bad. I have a feeling they're lying. My grandma is so trendy. She has like a hydro flask because I asked for extra water bottle for my sister and she said, oh, I don't have a water bottle but I have a hydro flask or like a flask. We are starting our Hollywood hike. You'll see the sign up there. Yeah. Oh, it's right there. Well, right there, you can't see it, but.  Basically just gotta walk up all these neighborhoods streets that we can't drive through because they get annoyed, which is a little rude and selfish if you ask me. I'm already out of breath, literally two steps. And the distance is the sign. So cool. There's legit a coyote. Honestly, I'm not down. Oh my God. Okay, let's just, let's just go this way. Fake news.  Out here doing a photo shoot, they had no guilt because, you know, we did some hard work coming up here so we deserve a photo shoot. We made it.  I love that. I love how the sky is like just blue. Yeah. No clouds. So did you think the Hollywood sign was overrated? I thought it was really cool. We saw a coyote on the way and now it's all downhill. It's all downhill. Literally. We peeped. Literally. Literally peeped. It still looks like a postcard. Like when I went to the Golden Gate Bridge, it still looks like a postcard. Like even. It looks like a backdrop. It doesn't look real. I'm glad it cleared up though because this morning it was foggy, but yeah. We need to watch our every move. But I think that's really funny because like all the signs were like, don't go.  And he was like leading a pack of like 20 people. And I'm like, okay. Well, yeah, it was a little more. So Anjali informed us that the neighborhood people, you want to tell them? So the people who live by the sign in Beechwood, like the neighborhood because they, because they get annoyed of tourists and like hikers just coming up in their neighborhood. So yeah, so they put fake signs along the way that say like, do not enter road and. No access to sign. Yeah, no access to sign. Thousand dollar fine. Like all these things to scare people off, but they're all just fake and you can actually use. Yeah. And then they also like, when you put in a Hollywood sign on like Google Maps and stuff, like it doesn't actually take you to sign. It takes you to the observatory. Fake news. So it's all just ways to like get people lost and you not have people come up here, but you just have to not follow the signs and just keep walking and you'll be fine. This is our current view right now. You see the Hollywood sign now earlier was like too foggy to see, but there it is. And we're so high up. Everything's like really dusty because of the sand. So like my backpack, my pants, my shoes, all dusty. Oh well. I just have some feeling super trendy. So I'm craving that insta worthy food. I asked, what do you guys feel like eating? And I'm expecting like the genre of food, like kimchi, Italian burgers, like something trendy. Just something trendy. Anything trendy really. We're only in LA once, right? Oh, I lost? Oh yeah. I know I did that. Oh my God. The new dance moves kids. Yeah. What'd he say? You got it. Right. Another one in the packet. While in LA, do as the LA yens do, but we are going to Toast Bakery because I've heard so much about it, you know, from all the YouTubers. So now I feel like a true YouTuber going to all these like cool places and stuff like that. And she got a chai latte. Because I'm allergic to coffee, I wish it was a regular latte. I miss iced coffee so much.  Oh my God. What do you think? This is a cactus. It might be one. Guys, cactus don't play. Just punctured my bag. How rude. A lot cheaper than I thought it was going to be. So it was like 24 at all. It was awesome. I've never ever seen these in person, but they're so pretty and so pigmented. That's crazy. Yeah. But that was pretty good, right? Yeah. I mean, I wasn't even that great of a swatch, but okay, wait, let's do this one because it's crazy. That's a crazy one. One swipe. Bam. Insane. Damn. It looks even better in person, honestly. I would like to look at one. But you know what's really, really not pretty? Uh-oh. Yeah, the price. So we are at Zara and this place is literally a madhouse. Like, it's a madhouse, right? I was my assistant. She helped me pick out some stuff. Like, I would say these clothes are like that put-together style. You know what I mean? Like, they just make you look good together. I mean, this one's like whatever, but like, it's like this one. Then I got this like, what is it called? What? Madhouse Family. Yeah. What's it called? Wednesday. So I did get another dress for the convention. It reminds me of like Wednesday and then also, do you remember Madeline? Oh, yeah. That's true. Yeah. And they're having literally the biggest sale ever. Mm-hmm. Everyone's going crazy. People in line are being mean. Yep. So that's when you know. So we are home and I just plugged my phone in because I was dead and Alma made us chai tea. It is chai, but you don't say chai tea. Then you say brown tea. Ooh, I'm not brown, apparently. Tell me these don't look like straight up grandma cookies. So I'm gonna do a really quick haul. So first I want to reveal what I got from Sephora. So I actually just used this on my face because I just looked a little washed out. I needed something on my face. So this is a bronzer, actually just getting matte perfection powder foundation. So I actually use this for a contour. If you're my color, go look at this one. It is insanely pigmented. It is in the color Mocha Java. So that is what I bought at Sephora, but then I got this as like my free little sample because I have so many points. I just get like a hundred point one every time I go. So this is the confidence in a cream, it cosmetics, transforming, moisturizing, super cream. And I am obsessed with all things hydrating because I have really dry skin. So I thought it would be cool to test this out. And it's always so nice to have just like a little container for moisturizer.  So then from Bloomingdale's, I didn't show you guys this dress, I don't think. Originally it was 88, but then it said now 44. And then I got to the register and it was 24. So that was awesome. Not sure if you can see it, but it's just like kind of like a slimming dress. It's a little bit long, but not extremely long. And probably by this time, you've seen my shop with me for professional clothing blog. So the hunt is still going on. I think it has finally ended, but I still wanna buy some shoes, like some really nice flats that actually like have a strap around the ankle or something like that. Because the problem with the flats I have now is that it like comes off my heel when I walk. But then I also wanna go to Charming Charlie's because I have a gift card and I have been dying to get these tassel earrings. Like you guys don't even know. I've been seeing that everywhere and I just really want like really nice white tassel earrings because they actually sent me the tassel earrings, but they were like multicolored, which were cute. Like I want the white ones for a certain dress that I have already. Then for Zara, like I said, it was a madhouse in there. Like it was crazy, I've never seen Zara like that. It was basically like Black Friday. So the first piece that I got, it's a really flowy top and it has yellow accents. Highlighter yellow, so that's kind of cool. And honestly, when I put it on, I felt like a pirate because it's just like that piratey feel. It's very comfortable. I got it in a size like large or something. Extra large, actually, oops. I just like my clothes bigger on me just cause it makes me look better. Like if it's not tight, it would be a cute beach cover up or just like a nice tunic over some jeans. Then I got this green top. It's like a long sleeve button down. I think it is kind of long enough for a dress, but I think I'm just gonna wear it as a tunic just to be safe or maybe like with shorts and like tuck some of it in. I have vision. So this is another dress for the convention and it reminds me of like Wednesday from the Adams family. Just like a basic white collar dress. I think this dress would be really cute with some statement earrings. The last thing I got, I was obsessed with when I saw it. And I thought it was gonna be like my favorite thing that I got from Zara, but it wasn't just cause like, I guess it didn't fit like perfectly, but I still got it just because it's one of those tops that if you see on someone, you're like, oh my God, she has her life together. Like I want to be like her. I want to dress cute like her. It's like that pink color that everyone's obsessed with. It's a little bit darker in person. It kind of looks like white pink on camera, but basically has all these like frills and stuff like that. So are you having fun in California? I'm having so much fun. And today I was craving like something really cheesy all day. And then our grandparents just bought us pizza and it just came to me magically by my grandparents. Honestly, it's so weird. Cause like he was like, oh, I'll get like popcorns or whatever.  What's happening? Cause I feel like adults just like, oh, eat healthy. Like here's some spinach and chicken curry. I don't know. Look at these really cute earrings I got from Boohoo. They were super cheap because it was like a 50% off sale at the time. So, and I think it's still going on. Like I swear that site is so weird.  It ends in 45 minutes when you're on the site. And then literally you'll check back like a day later and it says the same thing.  It really just hurts the heart cause I literally thought I wasn't gonna make it for the sale, but I mean, hey, I am not complaining about a 50% off sale. So keep it up, Boohoo.  Are you excited? Like a little tipsy makeup. You want to see yourself? Look, is that you? Yeah, say yeah. What's your name? What's your name? Hi. No. My uncle's backyard is so nice, gold. It looks like Kona girl.