from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hello everyone and welcome to this week's wiki bond cube insights powered by ETR in this breaking analysis we want to dig into the so called multi-cloud arena some of the questions we're getting from our community are what is a multi cloud did we really need it what problems does multi-cloud solve and importantly what problems does it create how is this thing called multi cloud likely to evolve and who are some of the key players to watch how do they stack up relative to each other you know recently I got a couple of interesting questions from a customer that says I have all this AI action going on and doing sophisticated modeling and this data lives and oh clouds all over the place how do I cross connect to the data and the workloads that are running on these clouds with the consistence this consistent experience of what our other customers doing another question came up in the community today is there a financial advantage to multi cloud or is it just about avoiding lock-in so I'm gonna take a stab at addressing these questions so first of all let's look at some of the noise that's going on in the marketplace and try to extract a little signal every vendor especially the ones who don't own a cloud are touting this thing called multi cloud and they tell us that customers want to avoid lock-in and organizations want seamless integration across clouds and they say we the vendor are uniquely qualified to deliver that capability although as you can see here in for a not everybody agrees because some feel that multi cloud is less secure more complicated in higher cost now the reality is that one two and three are true as is for a to a certain degree but generally I would say that multi cloud to date is more of a symptom of multi vendor then a clear strategy but that's beginning to change and there's a substantial opportunity out there for anyone to win so let's explore this a little bit and an exclusive sit-down with aunty Jessie prior to reinvent 2019 John Fourier got Jessie to talk about this trend here's what he said we have a large number of companies who have gone all-in on AWS and that's growing but there's gonna be other companies who decide that they're going to use multiple clouds for different reasons you wouldn't have to say that the vast majority of organizations pursuing cloud tend to pick a predominant provider that it's not a 50/50 scenario it's rather it's more like a 70/30 or 8020 or even a 90/10 faria went on to write somewhat paraphrasing I think Jesse in my view it's not hard to find the reasons for using multiple clouds right is M&A there's shadow IT there's developer preference but it's really not multi cloud by design it's just more of the same Enterprise IT mishmash that we've seen for decades so I generally have to say I agree with that but it is changing and I want to dig into that a bit so first let me recap the basic premise that we work off of first cloud is winning in the marketplace we know this building data centers is not the best use of capital unless you're a data center operator or a hyper scaler or you know maybe a SAS provider maybe so more and more work is going to continue to move to the cloud this was pretty much the first wave of cloud if you will a cloud of remote infrastructure services for very obvious workloads like web test dev analytics and certain SAS offerings the second wave of cloud which we've been talking about for 15 years was or should I say is a hybrid connecting remote cloud services to on-prem workloads and the third wave which is really hitting somewhat in parallel is this thing that we call multi cloud now it's not a perfect analogy but these multi generational waves remind us of the early days of networking now some of you may remember that years ago the industry was comprised of multiple dominant vendors that control their own proprietary network stacks for example IBM had SN a digital or deck had decnet all the many computer vendors had their own proprietary nets now in the early to mid-1980s the OSI model emerged with the objective of creating interoperability amongst all these different communication systems and the idea was we're going to standardize on protocols and the model had seven layers all the way from the physical layer through the application but really in reality was a pipe dream because we were way too complicated and and it sort of assumed that customers are gonna rip and replace their existing networks and then standardize on the OSI model now in reality that was never gonna happen however what it did is it open the door for new companies and you saw firms like Cisco and 3com emerged with tcp/ip and Ethernet becoming standardized and enabling connections between these systems and it totally changed the industry as we now know it so what does this have to do with multi-cloud well today you kind of have a similar situation with dominant public cloud leaders like AWS and azure and in this analogy they are the proprietary siloed networks of the past like IBM and digital they're more open obviously but still ultimately customers are going to put workloads on the right cloud for the right job and that includes putting work on Prem and connecting it to the public cloud with call it a substantially similar and ideally identical experience that's what we call hybrid now that's today's big wave and you're seeing it with Amazon's outposts and VMware and Amazon and Azure stack etc so while all this hybrid action is getting wired up customers are putting work into AWS and Azure and certainly Google and IBM cloud and the Oracle cloud and so forth now customers are wanting to connect across clouds with a substantially similar experience because that reduces cost and of course it speeds business outcomes that's what we call multi cloud now I'm not by any means suggesting that Amazon and Microsoft are gonna go the way of the mini computer vendors I don't believe that I think leaders today are much more savvy and tuned into how to surf the waves they're more paranoid and they're frankly just smarter than back in the 70s and 80s but it's not a rite of passage if they ignore the trends they will face challenges that could become driftwood so you're seeing the emergence of some of the moves from the vendor crowd the big whales connecting their infrastructure like AWS and VMware and Microsoft and Oracle quite interesting and IBM Red Hat with everybody cisco Dell HPE with everyone Google with anthos and a lot of other players all are trying to stake a claim in this hybrid and multi cloud world but you also have these emerging players that are innovators companies like CrowdStrike in security cumulant in the backup space and many dozens of well-funded players looking to grab a share of this multi cloud pie and it's worth pointing out that they're all kind of going gaga over kubernetes now of course this makes sense because kubernetes has emerged as a standard it's certainly very popular with developers why because it enables portability and allows them to package applications and of course all they're related to tendencies around those applications and then hand that app off for testing or deployment and it's gonna behave in the exact same way as when they ran it locally this we've seen and we know this but I want to share something I had a great conversation with Bernard golden yesterday and he made an excellent point about well you know kubernetes and containers he said this portability is a necessary but insufficient condition for multi cloud to succeed you still have to have an integrated management approach to security ID management monitoring performance reporting and end get into cross-training of people and skills etc ok I want to shift gears and as always I want to dig into these segments and bring in the et our perspective now pretty sure ETR is a lot of data on multi cloud from their ven meetings and other surveys but what I've done today is pulled some data that I'm using is indicators or proxies for multi cloud so I can't go out and buy me some multi cloud today it doesn't really exist in that form so what we have to do is highlight some of the trends in the data and draw some inferences from that so let's take a look at this chart what it shows is the relative position of a number of companies that my view are participating in the multi cloud arena the chart plots these companies showing net score or remember spending momentum on the y-axis and we've just opposed that to what's called market share on the x-axis market share is a measure of pervasiveness in the data set and what we've done is we've filtered on three sectors cloud container orchestration and container platforms using that as a proxy for multi cloud so these are buyers 791 of them as you can see by the end who are spenders in these three areas and we're isolating on select group of names and as a last filter we selected only companies with 50 or more results in the data set from this survey and we're using this as a multi cloud sector proxy so let me make a couple of comments here first I know kubernetes is not a company but ETR captures spending on kubernetes it's one of the hottest areas in the data set with a nearly 82% net score so we're capturing that as a reference point the next thing I want to say is you can see the big cloud players Azure and AWS and once again as in previous breaking analysis segments we see those two look they're leaders they're out the lead both companies showing very very strong momentum from a net score standpoint now AWS you might say why are you including a diversity if they don't explicitly have a multi cloud offering but in my view you cannot talk about multi cloud without including the leading cloud supplier you also see Google not so much in the market share of the big two but Google's showing strong net score we've talked about that before and they're very well positioned in multi cloud with anthos there behind their playing cloud agnostic to try to catch up again remember this is a proxy that we are running it's not necessarily a reflection of firms specific multi cloud offerings it's an indicator based on the filters that we've run now let's take a look at some of the others rubric the data protection specialists and CrowdStrike was a security darling they show some real strengths both have multi cloud offerings and they have strategies around their look at how she Corp they stand out as an important player in our view as they provide developer tooling to run secure and and deploy applications across clouds VMware cloud is I believe it's a vfc VMware cloud foundation and it's right there in the mix and you can also see fortunate in there as well executing from a security position I talked about them last week in my braking analysis they have a nice cloud portfolio and they're benefiting from execution strong execution let me call your attention to IBM in Red Hat Red Hat OpenShift look at their respective positions on this chart IBM spending velocity or net score is low but Red Hat has quite strong spending velocity and this is CEO Arvind Krishna's opportunity leverage IBM's large install based presence shown here as market share or pervasiveness and bring red hat to the right and leverage open shifts coolness to increase IBM's relevance and elevate it elevated spending velocity if arvind can make the kind of progress that i'm showing here in this picture he'll end up being CEO of the decade but that really is IBM's opportunity you can also see I put Oracle in the chart as well because of their multi cloud relationship with Microsoft which which I actually think has great potential for running mission-critical Oracle databases as I've noted many times I've you know IBM and Oracle both have clouds they're in the cloud game there are hyper scalar clouds but they have very large installed software franchises why is that important because it insulates them from the I ass ix knife fight and the pricing pressures that are putting forth by the hyper scalars the finally I have to mention Cisco I've said many times comes at multi cloud from a position of strength and networking and of course security they've got a huge market presence and not without challenges but they clearly are a player here ok now let's go on and look at some similar proxy data basically the same cut isolated on a few big players participating in multi cloud so again same cut as before but this is this shows a time series isolating on some of those Biggie's showing their net score or spending momentum in cloud and container related sectors that I talked about you got Azure leading GCP showing momentum IBM Red Hat with open shift and VMware all with solid net scores that are in the green cisco not as strong from a net score or spending velocity standpoint but it's shared in or presence in the data set is significant in this cut so two takeaways here really are one this is a wide-open race it's jump ball you really can't pick a winner yet and to each is gonna come at this from their own unique position of strength which brings me to how we see this space evolving this simple chart here really shows how we see the multi cloud infrastructure stack emerging starting at the bottom we show in the stack networking you gotta have networking to cross connect clouds and this is where cisco you has to win the day not optional for them some big players are going after the control plane including Microsoft arc Google with anthos VMware with tans ooh IBM Red Hat and we think eventually AWS is a possibility to enter that game on the data plane you got some big whales like Dell EMC you got NetApp you've got HPE at IBM the big storage players as well you have specialists like pure who's doing some interesting things in block in the cloud and cumulonimbus mention you have a bunch of companies like Veritas cohesive the rubric vMac TIFIA is gonna be in there CommVault I mentioned Klum EO before IBM is another one you got a whole bunch of folks in networking big portfolio plays from the likes of Cisco I said to network I met security from Cisco Palo Alto fortunate along with many of the security specialists we've highlighted in the past like CrowdStrike and there are many many others now on the leftmost side of this chart is really interesting we showed the full stack interconnects here we're referring to the direct cloud to cloud connections in functions up and down the entire stack examples here are AWS VMware yes that hybrid but also emerging at the edge and Microsoft and Oracle so the bottom line is we're seeing a battle brewing between the big companies with larger appetites gobbling up major portions of the market with integrated suites that are playing out within each layer of the stack competing with smaller and nimble players that are delivering best to breed function along those stack layers all right let me summarize so here are the questions that I said I would answer let's see how I did what the heck is multi cloud well let me first say it feels like everything in IT is additive what do I mean by that well we never get rid of stuff you keep things forever think about it the typical enterprise has multiple data centers they get many SAS providers more likely they have you know more than one Iast provider and they're starting to think about what should I do with the edge there is no standard for hybrid or multi cloud deployments you talk to 100 customers and you're gonna hear 120 or 150 or 300 different environments and several orders of magnitude of challenges that they face do we really need multi-cloud not an ideal world no we wouldn't need multi cloud but we talked about how we got here earlier how real is it how real is multi cloud now look companies use multiple clouds it's is it easy to do things across scope these clouds no so it's one of these problems that the industry is created that it can now make money fixing it's a vicious cycle I know but so goes the enterprise IT business what problems does it does multi-cloud solve and create look the goal of multi cloud should be that it creates more value than just the sum of the individual parts and that is clearly not happening yet in my opinion moving data around is a problem so ultimately the value comes from being able to bring cloud services to data that resides all over the place and as Bernard golden implied even with kubernetes the experience is far from seamless so we understand that technology created this problem and IT people processes and technology will be asked to clean up the crime scene as I often say it's a common story in enterprise tech we talked about how multi-cloud will evolve along a stack that it comprises specialists and big companies with very big appetites my opinion is that multi-cloud will evolve as a mishmash and vendor relationships the right tools for the right job the edge IT and OT tensions mergers and acquisitions these are gonna create even a bigger mess down the road we have well-funded companies that are exceedingly capable in this business and the leaders are gonna get their fair share cloud is a trillion-dollar market opportunity and there will not be in my opinion a winner-take-all and multi cloud so who wins like I've tried to lay out some of the leaders within different parts of the stack but there's way more to this story I do believe that the cloud players are well positioned why cuz they're they invented cloud EWS and others who followed right now Microsoft and Google are playing actively in that market but I definitely think AWS will I that space but I think VMware Red Hat IBM Cisco etc some of this from the respective positions of strength and I've sort of they have the added benefit of being cloud semi agnostic because generally they're not wed to a hyper scale cloud you know IBM as a cloud oracle as a cloud but it's on a hyper scale cloud and as always there's specialists that are gonna solve problems that are too small initially for the big whales to see so they get a leader lead bleed to market advantage but those opportunities can grow over time and allow these guys to reach escape velocity now so I'll say multi-cloud in and of itself is I believe an opportunity one that will be attacked from a position of strength within the stack and there are opportunities to be specialists up and down that stack the Akashi Corp alright this is Dave Volante for wiki bonds cube insights powered by ETR thanks for watching this breaking analysis and remember these episodes are available as podcasts you can check it out as you're driving your car wherever you listen to two podcasts you can connect with me at David Villante at Silicon angle calm or at D Volante on Twitter or please comment on my LinkedIn posts thanks for watching everyone we'll see you next time [Music]

from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hello everyone and welcome to this week's episode of wiki bots cube insights powered by EGR in this breaking analysis we take a deeper dive into the world of robotic process automation otherwise known as RPA it's one of the hottest sectors in software today in fact Gartner says it's the fastest growing software sector that they follow in this session I want to break down three questions one is the RP a market overvalued - how large is the total available market for RP a and three who were the winners and losers in this space now before we address the first question here's what you need to know about RP a the market today is small but it's growing fast the software only revenue for the space was about 1 billion dollars in 2019 and it's growing it between 80 to a hundred percent annually RP a has been very popular in larger organizations especially in back-office functions really in regulated industries like financial services and healthcare RP a has been successful at automating the mundane repeatable deterministic tasks and most automations today are unattended the industry is very well funded with the top two firms raising nearly 1 billion dollars in the past couple of years they have a combined market value of nearly 14 billion now some people in the art community have said that RP a is hyped and looks like a classic pump and dump situation we're gonna look into that and really try to explore the valuation and customer data and really try to come to some conclusions there we see big software companies like Microsoft and sa P entering the scene and we want to comment on that a little later in this segment now RBA players have really cleverly succeeded in selling to the business lines and often a bypassed IT now sometimes that creates tension in or as I said customers are typically very large organizations who can shell out the hundred thousand dollar plus entry point to get into the RP a game the Tam is expanding beyond back office into broader on a broader automation agenda hyper automation is the buzzword of the day and there are varying definitions Gartner looks at hyper automation as the incorporation of RPA along with intelligent business process management I BPM and I pass or intelligent platform-as-a-service Gardner's definition takes a holistic view of the enterprise incorporating legacy on-prem app apps as well as emerging systems now this is good but I question whether the hyper term applies here as we see hyper automation as the extension of our PA to include process mining to discover new automations or new automation opportunities and the use of machine intelligence ml and a I applied to process data data where that combination drives intelligence analytics that further drives digital business process transformation across the enterprise so the point is that we envision a more agile framework and definition for hyper automation we see legacy BPM systems informing the transformation but not necessarily adjudicating the path forward we liken this to the early days of big data where legacy data warehouses and ETL processes provided useful context but organizations had to develop a new tech stack that broke the stranglehold of technical debt we're seeing this emerge in the form of new workloads powered by emerging analytic databases like redshift and snowflake with ml tools applied and cloud driving agile insights in that so-called Big Data space so we think a similar renaissance is happening here with with automation really driven by the money the mandate for digital business transformation along with machine intelligence and that tooling applied for a really driving automation across the enterprise in a form of augmentation with attended BOTS at scale becoming much much more important over time ok now let's shift gears a little bit question is the RP a market overhyped and overvalued now to answer this let's go through a bit of a thought exercise that we've put together and look at some data what this chart shows is some critical data points that will begin to help answer the question that we've posed in the top part of the chart we show the company the VC funding projected valuations and revenue estimates for 2019 and 2020 and as you can see uipath an automation any where are the hot companies right now they're private so much of this data is estimated but we know how much money they've raised and we know the valuations that have been reported so the RP a software market is around a billion dollars today and we have it almost doubling in 2020 now the bottom part of this chart shows the projected market revenue growth and the implied valuations for the market as a whole so you can see today we show a mark that is trading at about 15 to 17 times revenue which seems like a very high multiple but over time we show that multiple shrinking and settling in mid decade at just over 5x which for software is pretty conservative especially for high-growth software now what we've done on this next chart is we brought down that market growth and the implied valuation data and highlighted twenty twenty-five at seventy-five billion dollars the market growth will have slowed by then to twenty percent in this model and this thought exercise with a revenue multiple of five point four x for the overall market now eventually as growth slows RBA software will start to throw off profits at least it better so what we show here is a sensitivity analysis assuming a 20% 25% 30% and 35% for the market as a whole we're using that as a proxy and we show a 20/20 X even multiple which for a market growing the software market growing this fast you know we think is pretty reasonable consider the tech overall typically is gonna have a an even multiple of ten to fifteen you know X it really should be easy your enterprise value over a bit it's really a more accurate measure but but this is back in the Afghan on the balance sheet date and I'm a forecast all-out but we're trying to just sort of get to the question is is this market overvalued and as you can see in the Far column given these assumptions we're in the range of that seventy five billion dollar market valuation with that Delta now reality you're going to have some companies growing faster than the market overall and we'll see a lot of consolidation in this space but at the macro level it would seem that the company which can lead and when the Spoils is gonna really benefit okay so these figures actually suggest in my view that the market could be undervalued that sounds crazy right but look at companies like ServiceNow and work day and look at snowflakes recent valuation at twelve billion dollars so are the valuations for uipath and automation anywhere justified well in part it depends on the size of the market the TAM total available market in their ability to break out of back-office niches and deliver these types of revenue figures and growth you know maybe my forecasts are a little too aggressive in the early days but in my experience the traditional forecast that we see in the marketplace tend to underestimate transformative technologies you tend to have these sort of o guides where you know it takes off and really steep ins and it has a sharp curve and then tapers off so we'll see but let's take a closer look at the Tam but you know first I want to introduce a customer view point here's Eric's Lac Eric Lex who's an RPA pro at GE talking about his company's RPA journey play the clip I would say in terms of our journey 2017 was kind of our year to prove the technology we wanted to see if this stuff could really work long term and operate at scale given that I'm still here obviously we proved that was correct and then 2018 was kind of the year of scaling and operationalizing kind of a a sustainable model to support our business units across the board from an RPA standpoint so really building out a proper structure building out the governance that goes along with building robots and building a kind of a resource team to continue to support the bots that that you know we were at scale at that point so maintaining those bots is critically important that's the direction we're moving in 2019 we've kind of perfected the concept of the back office robot and the development of those and running those at scale and now we're moving towards you know a whole new market share when it comes to attended automation and citizen Development so this is a story we've heard from many customers and we've tried to reflect it in this graphic that we're showing here start small get some wins prove out the tech really in the back office and then drive customer facing activities we see this as the starting point for more SME driven digital transformations where business line pros are rethinking processes and developing new automations you know either in low code scenarios or with Centers of Excellence now this vision of hyper automation we think comes from the ability to do process mining and identify automation opportunities and then bring our PA to the table using machine learning and AI to understand text voice visual context and ultimately use that process data to transform the business this is an outcome driven model where organizations are optimizing on business KPIs and incentives are aligned accordingly so we see this vision as potentially unlocking a very large Tam that perhaps exceeds 30 billion dollars go now let's bring in some of these spending data and take a look at what the ETR data set tells us about the RPA market now the first thing that jumps out at you is our PA is one of the fastest growing segments in the data set you can see that green box and that blue dot at around 20% that's the change in spending velocity in the 2020 survey versus last year now the one caveat is I'm isolating on global 2000 companies in this data set and as you can see in in that red bar up on the left and remember our PA today is really hot in large companies but not nearly as fast growing when you analyze the overall respondent base and which includes smaller organizations nonetheless this chart shows net scores and market shares for our PA across all respondents remember net score is a measure of spending velocity and market share is a measure of pervasiveness in the survey and what you see here is that our PA net scores are holding steadily the nice rate and market shares are creeping up relative to other segments in the data set now remember this is across all companies but we want to use the ETR data understand who is winning in this space now what this chart shows is net score or spending velocity on the vertical axis and market share or pervasiveness on the horizontal axis for each individual player and as we run through this sequence from January 18 survey through today across the nine surveys look at uipath an automation anywhere but look at uipath in particular they really appear to be breaking away from the pack now here's another look at the data it shows net scores or spending velocity for uipath automation anywhere blue prism pegye systems and work fusion now these are all very strong net scores which are essentially calculated by subtracting the percent of customers spending less from those spending more the two leaders here uipath and automation anywhere August but the rest rest are actually quite good there in the green but look at this look what happens when you isolate on the 349 global 2,000 respondents in the survey uipath jumps into the 80 percent net score territory again spending velocity automation anywhere dips a little bit pegye systems interestingly jumps up nicely but look at blue prism they fall back in the larger global 2000 accounts which is a bit of a concern now the other key point on this chart is that 85% of UI customers and 70% of automation anywhere customers plan to spend more this year than they spent last year that is pretty impressive now as you can see here in this chart the global 2000 have been pretty consistent spenders on our PA for the past three survey snapshots uipath again showing net scores or spending intensity solidly in the 80% plus range and even though it's a smaller end you can see pay go with a nice uptick in the last two surveys within these larger accounts now finally let's look at what ETR calls market share which is a measure of pervasiveness in the survey this chart shows data from all 1000 plus respondents and as you can see UI path appears to be breaking out from the pack automation anywhere in pega are showing an uptick in the january survey and blue prism is trending down a little bit which is something to watch but you can see in the upper right all four companies are in the green with regard to net score or against pending velocity so let's summarize it and wrap up is this market overhyped well it probably is overhyped but is it overvalued I don't think so the customer feedback that we have in the community and the proof points are really starting to stack up so with continued revenue growth and eventually profits you can make the case that whoever comes out on top will really do well and see huge returns in this market space let's come back to that in a moment how large is this market I think this market can be very large at am of 30 billion pluses not out of the question in my view now that realization will be a function of RPAs ability to break into more use cases with deeper business integration RBA has an opportunity in our view to cross the chasm and deliver lower code solutions to subject matter experts in business lines that are in a stronger position to drive change now a lot of people poopoo this notion and this concept but I think it's something that is a real possibility this idea of hyper automation is buzzword e but it has meaning companies that bring RPA together with process mining and machine intelligence that tries process analytics has great potential if organizational stovepipes can be broken down in other words put process data and analytics at the core to drive decision-making and change now who wins let me say this the company that breaks out and hits escape velocity is going to make a lot of money here now unlike what I said in last week's braking analysis on cloud computing this is more of a winner-take-all market it's not a trillion dollar team like cloud it's tens of billions and maybe north to 30 billion but it's somewhat of a zero-sum game in my opinion the number one player is going to make a lot of dough number two will do okay and in my view everyone else is going to struggle for profits now the big wildcard is the degree to which the big software players like Microsoft and sa P poison the RPA well now here's what I think I think these big software players are taking an incremental view of the market and are bundling in RPA is a check off item they will not be the ones to drive radical process transformation rather they will siphon off some demand but organizations that really want to benefit from so-called hyper automation will be leaning heavily on software from specialists who have the vision the resources the culture in the focus to drive digital process transformation alright that's a wrap as always I really appreciate the comments that I get on my LinkedIn posts and on Twitter I'm at at D Volante so thanks for that and thanks for watching everyone this is Dave Volante for the cube insights powered by ETR and we'll see you next time

live from Las Vegas it's the queue covering del technology's world 2019 brought to you by Dell technologies and it's ecosystem partners okay welcome back everyone we live in Las Vegas with a cube tech cue coverage of Dell technology world I'm Jean for @d Volante we're here in Cuba Lumley MERIS house who's the president and chief commercial officer Dell technologies great to see you again always great to be here sir so the the movie just gets better and sequels and Dell 3 into the year 3 of the acquisition I love look I love the script and we're gonna keep going you guys are access to the Game of Thrones it's not going to end it's gonna one of the themes I want to get your thoughts on first of all welcome back to look you good to see you what's going on right now give us an update Mars you've you've seen the chessboard of MMA of big firms on the private equity side you worked at HP during those days you came to Dell with Michael early on partnering on the going private and then looking at the overall plan which is now in full execution mode at the integration part of integrating it all together it's working really good mill the fairway revenues at ninety plus billion where are we right now well I'll tell you I think you and I were just discussing it a second ago scale does matter but if you can align scale with ax in your portfolio that it's so well aligned to the trends in the industry and you're representing an opportunity for a customer to select a partner like Dell technologies to help them solve their key business channel and just not just for today we're into the future and then if you can do at scale right portfolio at the velocity we're doing it's a trifecta that we love it's a that you know I recently talked to Tom Tom sweet we grew the business eleven billion dollars on an already big number just last year alone so and we're gaining sharing all of our key lines of business so the Folies aligning really well customers have been extraordinary and obviously building those big trusted relationships not just now to the but into the future that's you guys ready and you guys got a great team the ability to attract the talent has been phenomenal give you guys props on that but I keep coming back to we had a few years ago which is okay the big waves coming everyone kind of got cloud they saw the scale of Amazon great gel sign that continues to do great for AWS now it's multi cloud now IT the original consolidation of IT that you guys were going after had good growth and value creation just out of the box and now the tail winds as you mentioned so I got to ask you about this end to end this is a land grab this end to end operational consistency thing because it's a very unique it's hard to copy it's in the middle if you can continue to pull that off that's going to be a great opportunity that's gonna feed up up the stack if you will talk about the challenges and why you guys are going this end to end and the benefits the customers there's there is no doubt that the customers are getting smarter every day in understanding what workloads what applications what data sets ought to reside in which ecosystems to better serve them and to better align to their overall economic needs and desires that they want and their flexibility and agility to be able to move those workloads in that data seamlessly to best address their particular needs the beauty of what we've been able to do is integrate the VMware architecture into the public cloud ecosystems and we've got many others that are ready knocking on the door to the beat want to be part of it so now what a customer can have is that true agility that true flexibility of moving applications and data seamlessly but all control through one mechanism because at the end of the day what's going to happen is they're gonna have their day to resign on multiple different sources but they want to be able to see it they want to be able to accident they want to be able to analyze it and once you're able to analyze it regardless of where it resides and then draw the conclusions from it that's what's enables them to then create a predictive model that almost a cost to zero so on day one of the keynotes Michael said he showed the be of a video he said if you're you know bank with two trillion and assets or your two-story farmhouse we care about you know that's kind of music to your ears you obviously you're a big part of that what's different about the commercial customers and and what's going on in that base in terms of their transformation their trends and how is that different from I mean in commercial customers Lisa my and my patch I've got the biggest of the public-sector account so I've got them of all different sizes and shapes and different stages of the journey and that's what we're finding everywhere even if you're a big account small account medium account everyone is on there's digital transformation journey and there's an intersection that we can play a very big part of in and then enabling them to create a playbook as to how do I go through this journey effectively but what we're finding is when we took the overall architecture kind of or indeed tenants if you will around making sure that we have a scale out architecture model it doesn't able to have our customers adopt things and then be able to scale it out as their economic or as their business grows as an example so you can jump into having leading-edge capabilities and technology to help you drive your your company today but know that we're there with you all the way to then scale at whatever rate you want to scale at Mars I got to ask you we had Tom sweet on as you just mentioned CFO he talked about the multiple levers to create multiple levers you guys are pulling to create shareholder value which is ultimately comes from free cash flow which is happy customers great to pay down the debt that's his job margin expansion get good product development increase go to market efficiencies okay and then so philosophy supply chain go to market efficiencies this is your wheelhouse as you guys go talk to the customers and go to the market now with the sets of partnerships one of the changes that we're seeing is in IT it shifted the conversation shifted from not just cost reduction but revenue generating so with these new tailwind is creating a business model opportunity for your customers this is not the old school best in breed got great storage low cost I I've you know low cost per storage gigabyte this is about I don't want to deal with infrastructure anymore you guys handle that this is what you're going after how are you guys going to market under the new reality that customers are critical do you agree with that and how are you going to market with this new shift in the customers mindset Mike the mindset is now that change or dying if I don't drive the digital transformation within my company someone else will do it and more than likely will be a competitor so you see it having on the the uber front air B&B front you can go down the list every single one of these industries are figuring out I better Drive this aggressively and make sure that I take advantage of what's happening in the technology landscape in order to progress and grow my business to be more relevant and more differentiated so instead of IT being a let me lower my cost structure model IT is now the enabler of changing the business model the enabler of a scaling at a much faster rate to take advantage of the options and how does that change the customer selection on vendor supplier because obviously this is obviously gonna probably good for saying you know one supplier gel but that's gonna change how they evaluate procure consume and they're partnering how is that going to change their selection they they want to move more and more towards having the conversation around what do we need to do to scale our business and again create a differentiated advantage right well last thing they want to be is a systems integrator of all the different IT suppliers so when you have a partner like Dell technologies that truly does have the broadest and and and what I'd say best capabilities on the planet to then become that partner of choice for them to move them in this direction faster that's a very simple decision for them to make and how is that dynamic translating into public sector where you know there's a lot of turnover in terms of administration's you might have edicts in terms of you know multi vendor what are you seeing there but I think this is consistent we have a built a a practice what we call smart digital cities that we seeing the need everywhere at the end of the day regardless what public sector entity you go to what country you go to whatever mean it's about you go to every single one of them are thinking about how can I create more jobs how can I create build and grow the economic engine of my city my state my country and guess what they're leaning on technology to do that so everywhere we go it's a conversation about how can we drive efficiencies and productivity improvements across all the things you do and provide a greater level of service to every one of your it's constituencies through technology anything from securing the environment driving protecting our citizens to providing better health care services to providing better traffic management to providing better education and reach waste management you just go down the list every single city every single Enterprise a public sector entity around the globe is thinking about it and what's again the beautiful thing is we can come in we can bring in our overall partner ecosystem because it is a broader ecosystem that is needed in order to be able to deliver those end-to-end capabilities but very much on demand everywhere I gotta ask you about first of all is on the IT side those four public sector entities have a huge job ahead of them and they're not IT huge that staffs they need nimbleness and they need horsepower basically out of the gate and the beauty of what we are able to do is we share the best practices of what we see around the world you can imagine that a city of Dubai very progressive right clearly have the budget clearly have less restrictions on data privacy clearly have less restrictions on legacy integrations into past solutions so they can move pretty quickly with a pretty broad base view as to where they want to go so you take those ideas take those best practices and then you you showcase that to the rest of the world it's - ok what can we use what can they use - to move their agenda forward quickly I want to switch gears talk about competition I saw the Tom sweets presentation the analyst briefing around competition I didn't see any cloud vendors on their office T going multi cloud with your own cloud I see that but just in the traditional IT space the numbers are great in your and you got bigger bigger is better so HPE when smaller they thought that focus would be better for them maybe it is but now you have existing competitors from the classic IT market it's a new new ground you're going after you got Alienware here it's a gaming world you're partnering with it's a beautiful set up so that's the future of TCS so you're in all these markets what's the competitive view how did you talk about your companies for competitive strategy - what we first talked about if you if you've got scale and you have a broad broad portfolio they can address the the core trends that are emerging for the next decade or two and you can do it at speed I'd say a very nice formula and that's what we're starting to really operate at that kind of cadence with the the the strategically aligned businesses like VM were like like pivotal like secure works that are all coming together very nicely to be able to drive these transformations collectively as one portfolio where's the partner coopertition kind of thing going on because you think Cisco for instance you know you guys partner with Cisco in some level but also at the same time NSX on the VMware family side looking like us competing directly with Cisco so this is this you're going to have direct competition and then other ones that are coopertition where you're working as a partner or maybe and it's evolving so how do you guys bet to have those balance conversations it's it's been like that for decades right and there's you you've got big players in the market at the end of the day as long as you service your customer and deliver to them what they want and how they want it at the end of the day we need to collaborate to make that happen - same exact reason why we announced our partnership with Microsoft and Azure earlier this week customer draw was there they said we want you to be that single that single broker that enables me to move my my data in my application seamlessly and securely containerized to any public cloud well guess what Azure needs to be part of that equation so when the customer drives it and it's clearly aligned to their particular needs the the IT ecosystem comes together the best serve that when you have when you meet with the top customers and the top senior people what's the pitch Mario's when you go in and say hey you know here's get we're just gel technology we've got all the puzzle pieces they'll be be successful what's your pitch when you go in what's the mean message that you guys say to those customers I like for the last couple of years we've been talking about that the transformations that are happening right at the highest level it's just a digital transformation journey that people are on the work force transformation they're doing the overall IT transformation that enables that then of course how do you the whole environment on top of that they're having the conversation about okay let's go build the blueprint as to what that looks like for me as a customer and then show me how I'm gonna you're gonna deliver to me the platforms that enables me to grow and make sure that I'm making the right batch long term right I don't want a solution that's just there for today I want to make sure that I've got a solution that good that that will take me into the future and that makes me ultra competitive so when you think about it if I wanted a an app development platform that clearly needs to be cloud native in mind I need to have agile development capabilities and I need to be able the time to value needs to continue to shrink well guess what we got that with pivotal right you want to be able to now do your data management ecosystem seamlessly and and across multiple platforms clearly we have assets like Bumi that enable that to happen very very well and and then you want to virtualize your overall infrastructure layer as much as possible so you truly can scale up or scale down any of your infrastructure capabilities in order to meet the needs of that particular workload seamlessly when you have the data platform when you have the app platform when you have the virtualization platform and you have all of the infrastructure platform so well aligned to the overall trends and transformations our customers are doing it's almost a no-brainer I mean it is an IQ test that all of our customers are clearly passing and okay and what you just laid out it's probably like a ten year he's gonna play out over the next ten years and there's still a lot of invention to be required if you guys aren't doing a lot of M&A right now you know paying down the debt tom was clear on that but as an M&A person I want if we can pick your brain and I'm more familiar with the tech M&A it's where myspace but most M&A much of it anyway fails and and from your perspective why is that and why are some successful why or some not I think it is the how do you how do you when you add a new entity into the broader entity what are the synergies that you're aligning to to make sure that that new entity has the opportunity scale and grow right and that's why you have meant you have sometimes smaller deals are interesting from an IP perspective but if you don't tie it back into how are you gonna go scale to go to market to make it available to your broader set of customer base you or it gets lost in the equation that's a problem and I think what we've done is a very good job making sure that we understand how each piece of the IP portfolio comes together and is aligned to our overall approach and how we how we how we help you have the conversation with the customer that we've been able to see what we call our cross synergies of all the acquisitions we've made significantly exceed any and all of our expectations and and that's important part to do ahead of time before you make the acquisition know not just how it fits into the IP stack but how it fits into your overall go to market stack and how it fits in your overall value proposition to the customer Marcus thanks for spending the time know you're really busy coming on the cube I got to ask you one final question of this showed here Dell technology world over three days what are the three top highlights that happened to you that give a tell sign of the next 10 years with Dell technology I mean we've always said that we do what we say so I think and I've had many of analyst tell us that my god you guys consistently have delivered what you said you would deliver so the early skepticism of hey this this is a big company there's multiple cultures not sure that operationally you will execute well guess what I think it's fair to say the teams are executing and then when you see the results of taking share in every line of business you see the results where the customer satisfaction is higher than it's ever been our partner satisfaction is higher than it's ever been our partner growth is higher is the fastest-growing route to market for us all of that is just a testament that we are operating on all cylinders but what's more exciting is the yet to come part and and the fortuity so big right the market is what three and a half trillion ninety billion is a fraction of that so this is what our our team members see it's what our customers see our partners see so that momentum it's just a tsunami that's just gonna keep on growing well the cube barometer certainly showing activity to sets when we get four you know you're doing well so we're gonna keep an eye on the pulse of the cube pan and we got here Mari it's great to see you always a pleasure great insight thanks for sharing John awesome grant appeared a virus awesome thank you so much Myers house president chief commercial officer Dell technologies Friends of the cube great executive tech athlete as we say live coverage day three here the cube coverage of Delta knows we will be right back with more after the short break [Music]