(upbeat music) >> Narrator: Live, from San Diego, California, it's theCUBE! Covering KubeCon, and CloudNativeCon. Brought to you by RedHat, the Cloud Native Computing Foundation, and its ecosystem partners. >> Welcome back, this is theCUBE's fourth year of covering KubeCon and CloudNativeCon. This is the North America show here in San Diego it's 2019, he is John Troyer, I am Stu Miniman, and happy to welcome to the program, first of all, I have Murli Thirumali, who is the co-founder and CEO of Portworx, and Murli, thank you so much for bringing one of your customers on the program, Satish Puranam, who is a Technical Specialist with Ford Motor Company. Gentlemen, thank you so much for joining us. >> Delighted to be here. >> All right, so Satish, we're going to start with you because, you know, the growth of this ecosystem has been phenomenal, there were End Users up on the mainstage, we've already had them, there's over, there's 129 now CNCF End User Participants there, but, you know, bring us in Ford, you know, we were getting ready for this, we're talking, there's so much change going in from, you know, of course, everybody talks about autonomous vehicles, and what there have, but, you know, technology has really embedded itself deeply into a company like Ford, so before we get into all the crew, just, bring us a little about into your world, what's happening, changing, and, you know, what your team does. >> Sure, in like uh, Ford generally has been in like a transformation journey for about the last two years now, that includes like, completely redoing our Data Centers, our Application Portfolio, as part of this monolithic journey, we started our journey with Cloud Foundry, we have been a huge favorite to Cloud Foundry shops for some time. And then, we also would like to start dabbling with like, Kubernetes and things, associated technologies primarily do for like, looking for like, data services, messaging services, lot of the stateful things, right? Cloud Native and like, Kubernetes, and I- Cloud Foundry, I am sorry, Did great wonders for us, for qualified graphs. So what do we do with like, stateful things? And that's what we started dabbling with Kubernetes and things like that. >> Yeah, Satish, if I could, I want to step back one second here, and say, you know, you do a transformation, consolidation, moving from monoliths to microservices, what was the business driver here, was it one day, some executive got up and said, you know, "hey this sounds really cool, go do it", or was there a specific driver in the business that now, your organization needs to respond to? >> I think the business drive is cost efficiency. Like, uh, there were, like, a lot of things that we would have not done, so there's a lot of technical debt we have to pay down, because of various fragmentation and various other things, so it's always about realizing business efficiencies, and most importantly, speed at which we deliver services to our customers internally, so that was the main driving force for our engaging in this transformation journey for like, about the last few years. >> Okay, Murli we'd love to have bring you to this conversation here. You obviously, agility is one of the things I hear most from customers, the driver of what new things. Infrastructure for the longest time, in many ways, it was like a boat anchor of what held us back. >> Murli: Yep. >> Especially you know, our friends in Networking and Storage, it is difficult to change and keep up with, with what's driving there, so bring us uh, bring us up to speed with Portworx and how you fit into Ford and more broadly. >> Yeah, just a quick introduction to Portworx, we've been around for about five years, now, right from the early days of containers and Kubernetes, and you know, we have quite a few customers now in Production, we have about 130 customers, 50 of the uh, the global 2k and so on, many, almost all those customers are in Production, deploying stat significant workloads. The interesting thing about Kubernetes in the last couple of years, especially, is that everybody recognizes it has won the war for orchestrating containers and applications, but the reality is, the customer still has to manage the whole stack, the stack of not just the app but the data itself underneath, and that's kind of the role of Portworx, Portworx is the platform for storage for Kubernetes, and we orchestrate all the underlying storage and the data applications, with that being said, I think one of the things that we've seen that Ford has kind of led the way in, and has been really amazing, is some of the many surprising things that people don't really know about Kubernetes, which has been happening now with customers like Ford for a while, one of them, for example, is just the use of Kubernetes in on-prem applications. Very few people really kind of, they think of Kubernetes as something that was born in the Cloud, and therefore, has kind of really only mushroomed in the Cloud, and you know, the, one of the key things about Kubernetes, and most of our customers are actually on-prem, and it to me is transforming the Data Center. The agility that Satish speaks about, is something that you don't just need because you are operating in the Cloud, you need that for all of your on-prem applications, too, and that's been one of the unique characteristics that we've seen from Ford. >> Yeah, and that's, I mean, you talked about your journey, Satish, you know, the pivotal folks really talk a lot about transformation and agility you know, no matter where your apps were sitting, I'm kind of curious in terms of the storage and the stateful- statefulness of the applications that your working with now, you know, what kind of a, if I looked at it, the diagram, what kind of a set-up would there be? So there's a Portworx layer underneath and beside Kubernetes that's managing some of the storage and some of the replication? Is it then, is the data sitting in a, you know, on a SAN somewhere, is it sitting in the Cloud, I mean, can you kind of describe what a typical application would look like? >> With your typical application, yes we draw storage, we've been drawing storage for the past several years from NetApp as being as the primary source of our data, and then we run on top of that, we run some kind of storage overlays, we dabble with quite a few technologies, including, uh, Rook, NetApp Trident, Uh, Loster, You know I'm like a, it was a journey A journey that we took us, to ultimately lead us to Portworx and we just didn't started with Portworx, but the toughest aspect has been the gravity that the stories bring along with it, and all the things that are, Cloud Native is great but Cloud Native has stayed somewhere and that has to be managed someplace, and we said "Hey, can we do that with Kubernetes?" Right? So, I think we have done a- I won't say an outstanding job but at least we've done a reasonably good job at actually at least wrapping our heads around it and we have quite a few workloads in production that are actually stateful, whether they are Base Systems, uh, there are also like Data Messaging Systems, many cards applications and all that stuff so that has been something that we have been working on for the past few years on our platforms at least. >> Yeah, well I wonder if you could expand a little bit on kind of the application suite you know, "What can we do? What can't we do?" Listen to the keynote this morning I definitely heard it was, if you look at a multi cluster environment, You know, you want to mirror and have the same things there. Well I can't just magically have all the data everywhere and data has gravity and the laws of physics do apply so I can't just automatically replicate terabytes from here to the Cloud or back so help us understand where we are. >> So, you know, one of the, uh, one of the things Satish told me yesterday which I loved was he saying, he said: "Stateful is almost easier than stateless now because of the fact that we have these extensions of Kubenetes." So, one of the things that's been very very impactful is that Kubernetes is now these extensions for managing you know, storage networking and so on, and in fact the way they do that is through an API that just an overlay, so we are an example of an overlay. And so think about it this way, if a customer about 60 percent of our customers are building a platform as their service, in many cases they don't even know what applications are going to be in there, so over our customer base we see the same alphabet soup over and over and over again. Guess what it is, Postgress, Cassandra's, all the databases Redis, right? You know, all of the messaging queues, right? Things like Kafta and uh, you know, Streaming Data, for example, Spark workloads. And so, one of the key things that is happening around with customers particularly on the enterprise side, like large enterprises, they are using all kinds of applications and they're all stateful. I mean they're very few enterprises that are not stateful and they're all running on some kind of a storage substrate that has virtualized the underlying storage. So we run on top of the underlying hardware, but then we're enabled to kind of work with all of the orchestration that Kubernetes provides but we're adding the orchestration of the Data infrastructure as well as the storage itself And I think that's one of the key things that's changed with Kubernetes in the last, I would say, two and a half years is, most people used to think of it as "in the cloud and stateless" but now it's "on-prem and stateful." >> So Satish, one of the things we've talked to customers is their journey of modernizing their applications, it's, there's things that you might build brand-new and are great here but, you know, I'm sure you have thousands of applications and-- >> Satish: Absolutely. >> You know, going from the old way to a brand new thing, there's lot of different ways to get there. Some of it you might need to just-- Where are you with the journey of getting things onto this platform layer that we're talking about? And what will that journey look like for Port? >> Net new apps, anything being new we're talking about writing and like Cloud Native, Twelve factor Apps, like, but anything new, I'm like, anything existing data services, messaging services, what we affectionately call as table stakes services, right? So, which are the Twelve Factor Apps rely on, we are targeting towards Kubernetes. The idea is, "are we there yet?" Probably "no" like We are getting there with along with our partners to put it on the platforms like Kubernetes, right? So, we are also doing a lot of automation orchestration on VMs itself. But the idea is heavy and heavier workloads are going to be lining on Kubernetes platforms, and there will be a lot of work in the upcoming years particularly 2020, where we will be concentrating more on those things and with the continuing growth would be on Twelve Factor, Net New, would be Twelve Factor, Net New, could be in Cloud Foundry, could be in Kubernetes. Time will tell, but uh, that's the guiding philosophy, so to speak, but uh, There's a lot that we have to learn in this journey right now. >> Well I was kind of curious about that Satish, we've talked about an alphabet soup, we've talked about a lot of different projects, and certainly here at KubeCon, the thing about the Cloud Native Computing Foundation is that not that they don't have opinions, but everybody has an opinon, there's lots of different components here, it's not one stack, it's a collection of things that could be put together in several different ways. So you've tried a bunch of different things with storage, I'm actually, I'm interested if there are, if there were kind of surprises or, you know, containerized activity is probably different than I/O activity and storage I/O is probably different than in a virtual machine, the storage itself has some different assumptions built into it, so like, do you have any advise for people? I'm interested in the storage case but also just in, you don't have to evaluate nerworking and security and compliance and a lot of different things. Like, how do you go about approaching this sort of evaluation in this trial; in this journey of when you have-- when you're facing an "alphabet soup" of options? >> I think uh, it all comes down to basic engineering, right? So, what I make, think about "what are your failure points?" I'm like, "could be servers failing, infrastructure, hardware failing" right? So, the basic tendance is that we try to introduce failure as early as possible, like, "what happens if you pull the wire?" and "what happens if the server failure, failure happens?" The question that always comes back is that "is there a way I can compose the same infrastructure so that I can spread it across a couple of failure domains?" I think that was the whole idea of when we started, is like, "can we decompose the problem such that we can actually take advantage of primitives that begged into Kebernetes?" The great thing with CSI, that we're just realizing, before that were all flex drivers, but, how do you actually organize storage in the back end that actually allows you to actually compose this thing on the front end using the Kubernetes primitives. I think that was the process we though. >> John: And CSI is a standard API, >> Correct. >> Yeah, storage API, yeah. >> Exactly. I mean that's what we are relying, we're hoping that it's going to help us with things like, uh, moving compute, uh, to the storage rather than moving storage to the compute. That's one of the evolving, thinking that we're working with. Portworx, we've been working with the community folks from work and a couple of other areas. It's, there's lot to be done here, like we're just in still early days I would say. >> Murli, want to make sure we get out there, Portworx had some updates for this week so what do you say to latest? >> Yeah, so, the updates actually relate to exactly to what Satish was talking about, you know, the idea of, so, container storage has kind of been on it's own journey right? In the early days that John remembers well, it was really providing storage per system, making that data available everywhere. It's then clearly moved to HA being having the High Availability say within the cluster and so on. So, but the data life cycle for the application that's been containerized extends well beyond that so we are making extensions to our own product that are kind of following that path. So, one of the things we launched a few months ago was disaster recovery, DR, which is very very specific to containers, so, container granular DR, so you can kind of you know, take a snapshot, not just of the data, but of the application state as well as the Kubernetes pods back and recover all three of them. At this KubeCon we're announcing two other things. One of them is backup, so our customers, as they make the journey through their app life cycle, inevitably they need to backup their data and we have, again, container granular backup, that will provide all of, by the way, on existing storage. We're not asking anybody to up change, there's underneath their hardware storage substructure. The last thing we're introducing is storage capacity management which is fully automated. You know one of the characteristics of Kubernetes is all of that is "get the person" "get the trouble to get out of the picture," right? The world is going to be automated. Kubernetes is one of the ways people are doing that. And what we have provided is the ability to auto-resize volumes, and auto-resize pods of storage and add more nodes automatically based on policy that is completely automated so that again, these applications, you know when the characteristics of containerized workloads, they aren't predictable; they go up and down and they grow very fast sometimes, and so all of that management, so autopilot, uh, you know, backup DR have now been added in addition to persistent in HA. >> Alright, so before I let you both go, uh, want to talk about 2020? >> So soon. >> Satish, I want to give you a wish. You talked about all the things you'd do the next couple of years, if you could get one thing more out if this ecosystem to make your lives easier for you and your team, you know? What would that be? >> I think standardization on more of these interfaces. Kerbenetes provides a great platform for everybody to interact equally. Uh, more things like CSI, CRI, stuff that's happening in the community. And more standardization will lead to actually, make my life and things and end prizes a lot more easier. Will like to see continue that happening, GPU space looks very interesting, um, so we'll see. That would be my wish at least. >> Alright so Murli, I'm not giving you a wish. You're going to tell me, what should we be looking for from Portworx in participation in, you know, in this community over the next year. >> I think one of the big changes that's happened, really, in the last couple of years that is really kind of achieving a hockey stick is that enterprises are recognizing that stateful apps are really, should be using Kubernetes and can use Kubernetes. So to me, what I predict is that I think, Kubernetes is going to move from not, from just managing applications, to actually managing infrastructure like storage. And so I, you know, my belief is that 2020 is the beginning of where Kubernetes becomes the control plane across the Data Center and Cloud. It's the new control plane. No, what Openstack was aspiring to be many years ago, and that it will be looking upwards to manage applications and downwards to manage infrastructure and, it's not just us who are doing that, folks like VMware with Project Pacific have kind of kind of indicated that that's the direction that we see. So I think it's roll is now much more than just an app orchestrator, it's really going to be the new control plane for infrastructure and apps in the enterprise and in the Cloud. >> Murli, Satish, thank you so much for sharing all the update. >> Thank you >> Pleasure to catch up with both of you >> Thanks. >> Northbound, Southbound, Multi Cloud, theCube is at all of these environments and all the shows. For John Trayer, I'm Stu Miniman as always, thank you for watching theCube.

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Welcome to Austin, Texas. This is the Cube. Live at the fourth annual pure accelerate. I'm Lisa Martin with David, Dante, Dave or in Texas, >> Texas again. >> Austin, Texas. Very interesting venue for this fourth annual hear stories. >> A lot of construction, >> music, a >> lot of music. >> So we just came from the keynote and news announcements, customers on stage. But the first thing to point out is, this is here is about to celebrate their 10th anniversary. Charlie Giancarlo, CEO and chairman who's coming on the program with us, and just a few minutes talking about what they have innovated and delivered these 10 X improvements and 10 years kind of this overnight success in 10 years and what's coming? What was with the things that really stuck out at you, Nicky Note. >> Well, first of all, ironically, this is the 10th year of the Cube, not our 10th anniversary, but it's the 10th year of doing the Cube. And so our fourth year, I think it's pure accelerate about what 3000 people here, >> you know, the keynotes >> pure was laying out what their vision is of the modern data experience and that I felt like the keynotes least there were sort of, ah, speed date of what's coming. There was a couple of major announcements that we'll talk about, >> Uh, but >> they really are trying to differentiate as the modern storage company turn a deep position. The competition, as the old guard is to use this term that Andy Jassy uses pure, didn't use that term. But they really talked about it's time to go Modern. And so they were an overnight success. It took him 10 years, was one of the comments that was on stage. So I think this is worth pointing out. A couple of things. I mean, let me lay out. Sort of my thoughts on Pure is a company. They were the only storage company Ah, in the past. Let's call a decade to reach what I'll call escape velocity. They achieved a billion dollars a couple years ago. They're doing their due about a billion and 1/2 on a trailing 12 month basis. They'll do 1.7 billion this year and evaluations about 4.5 billion. So they got a a three ex valuation in that fluctuates. That's pretty good for a storage company. Billy on Lee major storage company. That's really growing rapidly. They got 28% growth. I did a breaking analysis on Lincoln, and I'll just share with you some of the numbers. Dallas flat at 0%. So Del is actually gaining share with no growth has got a scary NetApp minus 16% in the quarter H P E minus 3% IBM minus 21%. And so it is pure A 28%. So they're really crushing it in terms of growth. They've also got a 69% gross gross margin, even if it's in its heyday. E emcees gross margins weren't that high, you know. They were in the sort of mid sixties, and so, and they've also got a good balance sheet. About a billion dollars in cash A little. A little more than that, they got some debt. They're shifting their model to a deferred revenue model. Now the only thing is, you know they're growing much, much faster than the competition. But they're throwing off a lot less cash because they're much smaller. Just as an example, they probably throw off 5 to 6% of their revenues in cash. Netapp probably throws about 23% of its revenues, often catch the big Delta there, so the point is long winded. But but pure storage is in growth mode. And until the market rewards more consistent with a cash flow, they're gonna, I think, stay in huge growth mode. >> There was a great analysis. Dave and I saw an analysis that you did with some spends data, just a couple of your reverence. A little bit of that. There's there seems to be a tailwind behind here you mention the 28% wrote that they announced in Q two, and some of the things that also they talked about were there. Adding about in Q two of F Y 2020 about seven net new customers every business day, adding about 450 new customers just in that quarter. Like you said, 3000 folks expected here today. The momentum is behind them, but they're also a company of firsts. You talked about this a number of times. The first, with all flashed the first with envy me on the back and a couple of additional firsts announced today. Talk about the as a service model and how that youth, in your opinion, you think might continue that trajectory that they're on. >> Yes, so basically pure laid out today, said that vast majority are Pouliot Portfolio is gonna be available as a service. That's the cloud consumption mall is important because pure has about $600 million in deferred revenue, largely coming from their evergreen service. But there they are, slowly shifting their model to a subscription model. It's gonna be very interesting to see how that plays out. Um, we've seen a number of companies do a tableau in Adobe kind of pulled the band Aid off and did it Splunk has taken years to do. It will be interesting to see how how pure goes. For that. I'll >> bring it >> back to the cloud up yours largely an on Prem storage company. That's where most of the revenues come from. But we heard the gentleman from Amazon today. I think it was E ethan whiner, not Ethan, anyway, Mr Whiner, he said. That gardener did A survey last year showed 88% of customers said they have a cloud for a strategy, but 86% of those customers continue to spend on prim. So here you have the cloud. Amazon gorilla wants everybody to go to the cloud pure would much rather they make much more money on Prem? But they realize customers air pulling them in. So they have to move to that as a service model. One of the interesting things that pure is done, which, you know, that's not really a first. But it certainly is for the large storage companies they've announced. Ah, block storage on AWS. So basically what they're doing is they're taking the pure experience. It all looks like pure software, and they're front ending cheap s3 storage from Amazon with E. C. To compute instances, and they've architected using Amazon service. Is this basically a block storage array in the cloud so Amazon gets paid, pure, gets paid? It's a little bit of a premium, but you get higher availability. You get great right performance and you get the pure cloud experience pretty interesting strategy, >> and they're talking about it really as this. This positioning it rather as a bridge, a bridge to hybrid cloud. This numbers that the Amazon gentlemen, share that you mentioned Gardner were really interesting both sides recognizing there's a forcing function there and that forcing function is the customers from the enterprise to the small business who need to have data available immediately wherever it is people to extract this insights from it quickly so that those companies, whether it's a capital one or a Delta Airlines or a smaller organization, can act on it quickly to Dr Competitive Advantage. Same kind of challenge that your storage has. But really that forcing function of the customer, clearly bringing the giant AWS together with yet another story >> so pure as they say reached escape velocity. They and Nutanix were the only on a new entrance that reached a billion dollars Nutanix. I really don't consider a storage company. They're kind of hyper converged. And the way they did that as they drove a truck through E emcees install base with flash. So they were the first within all flash array. Maybe maybe they weren't the first, but they were the first to really drive it. They hired a bunch of DMC sales reps. They knew where all the skeletons were buried and they really took out a lot of old Symmetric Se's and Claire eons and V. Max is and all the old sort of GMC install base, and that helped them catapult their way there 1st 10 years. Now they got to do that again. They got to get to get They're on their way to two billion. But how did they get to five billion? Um, and and so the way they do that is they have to expand their tam. I mean, we'll talk to Charlie Jean Carlo about this. My feeling is a big job of the CEO is to expand the Tamil. How do they do that? They go after new workloads like a i. They go for cloud. They go from multi cloud. These are all very large markets in which they don't participate. Data protection. They'll partner with Lex, Kohi City and Rubric and Beam to to have data protection software running on their flash. A raise with very, very fast restores. That's something that's taking off. It's gonna be really interested in seeing as they say, they've got this subscription model that's coming in. They've got all this deferred revenue that in a way, it's going to slow him down a little bit just from an accounting standpoint, cause when you recognize deferred revenue, you recognize that, you know over 12 months over 36 months, so that's a little bit of a transition. The other thing that pure is facing in a tactical basis is Nande pricing. It's like this countervailing effects nan pricing is coming down, which means lower prices, lower costs but also lower revenue. But at the same time, it becomes more competitive with spinning disk. This is something else. We'll talk to Charlie Jean. Cholera right about it opens up new markets. So this tam expansion is critical for pure in terms of driving this modern data experience into these new workloads and fighting the competition, the competition is not sitting still. All those companies that I mentioned the H P ease, the the Delhi emcees, et cetera, are basically taking a page out of your swords narrative, talking about the cloud experience, talking about, you know, flexible pricing models, building cloud products on prime and hybrid cloud and multi cloud. So it's hard sometimes for customers to squint through that. And really, no, I guess the bottom line, the last thing I'll say is pure. Doesn't have as many feet on the street is these other guys. So it's gotta leverage the channel increasingly, and that's how it gets beyond two billion on its way to five billion. >> And that was one of the factors that they attributed the second quarter. 28% year on year growth is to not just innovation, but also to the channel. So they've done a good job of really pivoting. There's large enterprise deals to be covered, direct and then bringing in the channel for those smaller mid size business customers. Adding a lot of momentum in cute to you mentioned the nan pricing that in some of the political climate with the start of China, most of their businesses in the Americas so they're not facing as many of those challenges. So they did lower guidance for the rest of it is >> the second time they've >> lowered 20. However, they kind of attributed that thio the nan supply oversupply and they say happy Matt to flatten out quickly, say they're >> not worried about the macro. I mean, look, if if the economy is good and is booming and people are spending money on cap ex. That's good for even a high growth company. They're basically positioning to the street that if if the economy does turn down and there's a softness at the macro, they'll actually gain share more rapidly. Which, by the way, is probably true. But look at the rising tide lifts all boats. Nobody wants to see Ah recession. Having said that, well, it's interesting. When you saw Pure Lower, its guidance stock took a hit, and then net app, I'd be him. All these other company you have to see a deli emcee they announced in the market said, Wow, pure must be doing really well compared to these other guys. So it's come back in a big way. My opinion pure is going to in the e. T. Our data shows this from a spending intentions Pure is going to continue to gain share at a much, much more rapid pace of the other. The other guys, from a product standpoint, delicacies consolidating its product portfolio, trying to lower its cost. H. P E is really focused on limbo. IBM needs a mainframe product cycle to get back going, Ned APS facing its challenges and its kind of tweaking its go to market model. So all these other companies air dealing with sort of some structural changes. Where is pure is like put the put the foot on the gas and accelerate no pun intended. And so I think they're gonna continue to gain share for quite quite a number of quarters. >> I want to talk about sustainability before we break. And one of the things that Charlie talked about on his keynote is in terms of the modern data experience, he said. It was three things. It was simple, seamless and sustainable, an inch sustainable. You really started talking about the evergreen model that they launched a while ago that seems to be really sticky with organizations. He also talked about sustainability is a lot of other organization I need to adjust in terms of, you know, waste and carbon emissions and things like that. But I'm just curious, since Pierre is much smaller than the competitors that you mentioned and a lot more focus, obviously all in on flash. Where does the evergreen model, in your opinion, give them that tail winter? That advantage? >> Well, the Evergreen model was first of all brilliant marketing strategy and a business strategy Because if you think about the traditional storage vendors, they make so much money on maintenance, they would never have done this unless pure force them to do it. Because they're making so much cash on the maintenance. You know, it's it's you. You put the storage array in and we're just gonna charge you maintenance. And if you're not on the maintenance contract, sorry. You don't get all the software upgrades, everything else. So it's just this, you know, this lock in strategy, which is work brilliantly for two decades pure, comes along and says, Hey, where? Software driven. We're gonna allow you to get all the modern software. As long as you're got a subscription with us, we'll swap out your controller for free. You know, the competitors hate that. There's all kinds of nuances and stuff, but it worked, and customers love it. And so it's very strong, and it's a fundamental as they said, they got $600 million in deferred revenue, largely from that evergreen model. So they, you know, Charlie mentioned first for non disruptive upgrades. First for cloud management, first for a I ops first for always on que Os first with always on encryption, and if they're really the first, we're probably the first big company. They got a lot of attention there. Last thing, it's it's a four big announcements today. There's a I ready infrastructure, airy. They're doing some stuff they were first to announce with video. You know, a year or so ago, they got cloud offerings. Ah, block storage for AWS. And they've got clout Snap for Azure, which is actually pretty hot. It's backup on Azure, and they got product extensions. They got cheaper flash with a flash or a C for capacity. And then they have extended their all flashy raise their flash played etcetera with storage class, memory and and storage memory. And in this, this as a service model. Those are really the four big announcements that were gonna dig into all this week. >> We are, and we're gonna be talking with This is a great event. Two days. The cube is going to be here. We have seven pure customers to talk to you that I think kind of a record, at least in my cube experience of the last >> AWS always puts a lot of customers up too. You know. All >> right, well, there's no better validation than the success of a brand, whether we're talking about Evergreen or their first or the reaction of the market to bringing flash down to satya prices. So excited to dig into customer stories with you, Dave. Course we'll talk to some partners who got c'mon slung Cisco somebody else and probably forgetting. And, of course, some of the pure, exactly gonna be exciting two days with you and looking for two days >> looking forward to at least a great >> all right stick around. Dave and I will be right back with our first guest, Charlie Giancarlo, chairman and CEO of Pier Storage. Stick around, come back Mawston in just a minute.

live from San Francisco it's the cube covering Red Hat summit 2018 brought to you by Red Hat welcome back everyone we're here live in San Francisco for the Red Hat summit 2018 events the cubes exclusive coverage I'm John for the coast of the Q with John Troy you're my Coast analyst as we blues co-founder of tech reckoning advisory and Community Development firm meniscus is ranked at Rangachari vice president general manager Red Hat storage for you to see you again welcome back to the cube thank you thank you invited me again so Steve a lot they said storage is where all the action is with wellness data to be stored somewhere with the cloud yeah it's still important you guys have a new concept yeah on storage yeah I'm storage what is the unstirred you know I think essentially when we got into the storage business the status quo was your traditional storage mainframe so wheeling a piece of gear and it's to scale up and have things workloads running there but with the movement towards cloud especially with hybrid cloud where you really can't take a physical box and move it into a public cloud and in the last year or so with containers the common theme that's emerging is things like agility things like scale things like almost having ubiquitous storage all around the place is becoming more and more important so our thought is it almost turns a storage the phenomenal storage industry upside down on its head because the things that people cared about decade ago on the workloads are no longer relevant or less relevant than where they are today so and you know it seems to be people seem to get it so we're pretty I mean we've seen the strain on servers server less storage less so in a way this the recent resource pool is not just you know a box and provision the LUNs more like okay I need storage exact a button I don't care where it comes from is that we're kind of getting to somebody that's exactly what it is right I think in a in a different way right one of the customers said I want storage to be everywhere but nowhere right in that they want storage to be a pervasive but it has to be invisible so they don't have to worry about things like zoning and LAN masking on one piece hardware and do the same thing with twenty other pieces what our solution offers offers is truly a scalable storage platform that's running on any kind of footprint physical virtual private a public cloud but it's a common user experience across all these different footprints and that's why and the other part of this thing which is also different is yes it does appeal to the storage admins but more importantly as you become as organizations of all the cloud architects and DevOps know what they care about is like I want storage to be as invisible as possible but yet I want to make the devil developers more and more productive so I think we are I feel really right track in appealing to how storage needs to be viewed it's a no brainer in my mind if you're DevOps you want to go total cloud horizontally scalable you need gel apps stores just to be available programmable all that's great stuff question I have for you is what's the impact of customers who have been buying boxes for decades so what's the impact of them with Red Hat so I'm still gonna need boxes and still gonna put them somewhere and so it's an on-prem cloud operation so I still need storage bits cloud obviously those guys have their own storage but I mean but you still gotta plug it in and put storage in sure what's the impact of the customer well I think they I mean we do we are practical enough and we rarely realize that no customer is gonna pull the plug one day and move on to the next infrastructure what we are seeing more and more is as those new workloads which are dramatically different the previous workloads as they come into play then they have to rethink how they develop deploy provisioned storage infrastructure so that's where we come in so it's not about in either/or it's about how do you are meant your existing storage infrastructure but think about it in a modern way think about how you can future-proof your architectures so that it scales so that's the way we think about it wrong how should people be thinking about storage at different levels of the architecture there's actually a lot of storage here there's been a lot of sessions and the ecosystem expo there's a lot of storage providers but you've got the we've been talking a lot about open shift and an open shift on OpenStack here at the show this is this year so if you're at the OpenStack lair versus on the open shift layer how should you be thinking about storage and and what and what products are plugging in at those layers yes so you know think with OpenShift a couple of days ago earlier this week we announced our 150 customers we're actually deploying our product which is called containing nearly storage CNS for short and what that does is it enables it's essentially the storage infrastructure for open shaft so wherever open ship goes the storage footprint follows along whether you're running it on Prem on top of virtualized infrastructure or you're running any of these public clouds and the most interesting part of that is you know getting back to the earlier conversation we try to make it as invisible as possible so you we as vendors don't have to say you've got to deploy it here so make it as invisible as possible and as seamless as possible now with OpenStack it's a different set of experience because that's kind of infrastructure up right and the advantage for us is if you look at the OpenStack community in general almost 70% of the OpenStack community in one way shape or form uses a safe project so it's almost become I wouldn't call it almost de facto standard on how people manage the storage infrastructure with an open stack but even there the cardinal rules are still the same which is when they think about spinning up a machine the storage has to be attached automatically to it and then scale as their computer in the storage infrastructure scales and this the scale is the question we're living in a new era of cloud economics scale is key and we here the customers here Red Hat Red Hat's customers talking about things like horizontally scalable asynchronous micro sets of micro services levels of granularity this is the programmable new fabric that is a new infrastructure of the Internet you know 30 year old statuses from e-commerce DNS they're you know gonna be abstracted away with a new abstraction layer yes hello opens yes hello you know new things kubernetes and in containers so with that being said there's an opportunity yes so when you that's kind of like the state of the yard now but you're welcome to an enterprise like what's kubernetes again so you got some enterprises are learning about kubernetes and it's good news for them learning about containers where they don't have to throw away anything you just containerize it how is that impacting the classic definition of software-defined datacenter yeah and software-defined storage because those are the two important trends that have been happening in Software Defined does it accelerate it does it change it a little bit what's your thoughts on those do you know I think it accelerates it and here's why that's a great question right because when you look at organizations especially in the container era right where there are certain companies who are actually I would argue even bypassing you know and building it container first strategy as opposed to a cloud first strategy right so that's that's the way they are thinking about this and when you talk about route through that lens storage essentially is an application as opposed to infrastructure so you have to talk as three or you have to talk whatever protocol it is so it just becomes part and parcel of that so the challenge or what vendors or customers are looking at us is how can you make it as seamless as possible so that they can get the acceleration can happen because a year ago I think nine months ago there was a survey that was done where customers said the top two issues with moved to accelerated move the containers were storage or persistent storage and security well I think we have a firm handle on what we need to do to really help our customers at least address the storage part of that discussion what's up what and what's the make of the use cases right now how many customers are deploying this roughly order of magnitude mean let's go into details but I mean you know you know how's the migration okay the early adopters and in mode now is it fast followers is it the rest of the market I think it's still in the early adoption in the truest definition I think you know using the baseball analogy we're at the top of the first inning right and most of the workloads tend to be new workloads right there are some left cloud native but there's some but as far as the use cases it is you know across the board you know no sequel databases see I see Dee Jenkins type of environment so we surprised vertical centric either because storage your Stora just used by everybody yes there is one layer where there's certain I is free apps that tend to be focused on certain verticals but they happen right by our availability or I ah she might need financial services or stretch clusters and all those kinds of things okay cool I love the concept of unstitch but that does leave in the cold a little bit the people that we used to call storage admins right so now multi cloud hybrid cloud a lot of examples and blood demonstration operators operators done does the job of the storage the person you who used to be in charge of storage it seems like that that changes now even with unstitch a lot of automation a lot of fabric a lot of pooling does it itself but you still are on a lot of different clouds and things like that how do you how are you talking to customers about that so you know I think one of the I think the term that people have started to use as generalists right if you look at it you know five years ago or seven years ago you had a silo of systems administrators storage administrators and network administrators now the whole vertical store the silos have been in a way normalized so now you have a pool of people might be the major is in storage but the minor is a networking by the major isn't compute their minor is in storage so it really helped her all the organizations that we talked to now they say look I have a collective pool that can help me where I need to get to so this plays really well what about that audience absolutely it does and the hybrid cloud equation in your thoughts there cuz lastly we'll keep on did a great piece of research on true private cloud and there and they are looking for more folks to first rating the next set of surveys so I'd love to introduce you to the Peter verse over there but the point is was true private cloud report showed that on-premise cloud if occasion whatever you want to call it action was much higher and growing it's not so much on premise has been dying or being reduced its transitioning to on-premise cloud operations which is essentially cloud it's a fat edge or you know and the cloud is that what is the cloud so you're seeing still a lot of work being done on premises where there we recasting reimagining cloud so how is that impacting the hybrid cloud because I've been cause it's not really a product it's a yes it's a journey it's a connection between two clouds so storage data the data plane control planes are all kind of like evolving your thoughts on multi cloud and as hybrid starts to accelerate that's the path I'll see open shift but your thoughts on so the I think the way we think about this right is hybrid cloud it's not so much that everything is running on app I absolutely agree with the research right but the customers that we talk to they are still building the foundational business on I got a you know keep the private cloud make it as seamless and as efficient as possible but there are certain workloads that lend themselves well to running on a public cloud now it's not so much as a disjointed these two universes never talk to each other it's how do we the Red Hat try to bring the two together so the user experience you almost in a way try to minimize where it actually runs right now so that's that's an open shift is a classic example of that right where you're running it on Prem but you're also running on these public clouds if certain workloads that are great on a public cloud an example of that is one of the largest airports and Europe so they use OpenShift on Prem but they also use OpenShift on a couple of other public clouds and our CNS product which is a continuous tourist product run runs along all those three environments so to the end-user it's essentially a seamless experience and that's you know as the journey unfolds I think that's what you're going to see more and more is about how do we start to know that the storage foundation is built how do we start to exposed some data services that can run across all these different that's gonna be killer so here's an update in the business how's the business what's the road map looked like what are the things that you guys are working on what's the priorities so business is like we announced on Monday 150 net new customers over the last 12 months and that's just on one specific strategic imperative which is containing native storage or help the customers with a container journey besides that I think there are two other pillars we are focused on one is around hybrid cloud right which is how do you really provide the best storage substrate for customers building private clouds and hybrid clouds and the third part is hyperconvergence because I think what our customers are asking for is they've seen the power of hyperconvergence but they want an open-source variant of hyperconvergence for their environment and stay tuned on that front we got some exciting stuff going on and we'll keep you folks updated on the final question what's going on the show here for you what's notable but the folks that are watching who couldn't make it here what's the vibe what's the hall way conversation what's the customer conversate with steer some color of what's happening here at breadhead summit here in san francisco so a lot of things but then I wish we had time but I know we're short of time here but the few things I want to highlight one is all the technology demos that we did yesterday today and some in the tomorrow or tomorrow timeframe you'll see are containing native storage or a storage portfolio be an integral part of every one of the teams that we are talking about so that's you know and we've got very positive feedback on that we have over two dozen text sessions and my understanding is I don't go to those my understandings they've all been standing room only so there is definite customer interest in where we are what we're doing so we this show has been awesome so for us yeah storage is the gift that keeps on giving now it's going to be storage less than unstirred whatever word you want I like storage list because it sounds like server list which doesn't mean anything either but it sounds good but it's a full of resource gratulations I play it's a hot area certainly having programmable infrastructure means better development time and certainly making it you know elastic and making it horizontally scalable is the dream we all want to get to fast so be there more live coverage bringing you all the action here in the in the open here at Moscone you're in the mill the floors the cube coverage of Red Hat Summer 2018 I'm John Fourier with John Troy your stay with us we back with more after this short break thanks John

but cute at servicenow knowledge 14 is sponsored by service now here are your hosts Dave vellante and Jeff trick okay we're back this is Dave vellante with Jeff Frick were here live at moscone south and this is the knowledge 14 conference 6600 people here growing was about 4,000 last year you seen this conference grow and about the same pace as a services service now stop line they're growing at sixty percent plus on pace to do over 600 million in revenue this year on pace to be a billion-dollar company and we have the CFO here Mike Scarpelli cube alum Mike great to see you again thank you so this is amazing I mean Moscone is a great venue of the aria last year's kind of intimate you know and now you're really sort of blowing it out I would expect next year you're going to be in the into the big time of conferences well I got a budget for that Tiffany I'm a budget I know it's going to cost more just like the attendance is going up fifty sixty percent the costs are going up as well too but our partners are really important and our partners offset a lot of those costs will get over eight million in sponsorship revenue to offset that so when we expect next year will see a corresponding increase in the sponsorship revenue as well well it's impressive you have a lot of strong partners particularly the system integrator consultancy types you know we saw I hope it will miss somebody definitely saw sent you there last night we start Ernie young giving a presentation k p.m. ET le is about so cloud sherpas yeah the cloud shippers and so we had them on earlier she have a lot of these facilitators which is a great sign for you and they're realizing okay there's there's money to be made around the ServiceNow ecosystem helping customers implement so that's going to make you really happy no you know one of the things that's really important for us with the system integrators is today they haven't really brought us any deals but they've been very influential in accelerating deals and we think that theme is going to continue and based upon what they're seeing they're able to do in the ServiceNow ecosystem in terms of professional service consulting engagement we think that's going to start to motivate them to now bring us into deals that we were never in before but what they have been able to do as well besides just accelerate is have the deals grow beyond IT and we see that numerous on global 2000 accounts for us and you're not trying to land grab the professional services business that's clear effect when you talk to some of your customers when I've ever last year when your customer scoop is complaining that your your price is real high on the surface of suck which it probably makes you happy because it leaves more room for you for your partners and that's really not a long-term piece of your revenue II think you've said publicly you want to be less than fifteen percent of your business right yes yes we have a little bit of a ongoing debate internally my preference is not to see the professional service organization grow in terms of headcount with the pure implementation people the area that I would like to see it grow is more on the training side unfortunately some of our customers they insist that we are part of the professional service engagement so those are more the ones that we're going to be involved and if a customer is looking for a lower-cost alternative we want to make it fair for our partner so that we're not competing with them so they can come up with a lower price to offer a good quality service is important though that it's not going for the lowest price our partners need to make investment so it can be a quality implementations this is a number of early implementations that were done by partners that were some of our smaller partners where they really didn't meet the the expectations of those customers that we've had to go in and fix some of those engagements so the number one goal for our professional service is to ensure we have happy customers because happy customers renew and buy more which are two of the key drivers for our growth so you keep growing like crazy blew it out last quarter to get a 181 million in Billings revenues up 60-plus percent you're throwing off cash hitting all your metrics of course the stock went down oh there you go not much more you could do but you got to really be pleased with the consistent performance and really predictability it seems of the company yeah no I'm since I've been the CFO company it's going to be coming on three years suit in the summer the one thing that I will say about this business model is it's extremely predictable in terms of the the forecasting and what helps with that is the fact that we have such high renewal rates that really helps because we really since I've been here we've never lost any major accounts I think our renewal rate has been averaging north of ninety-five percent and in terms of our upsells or up sells have been very consistent on average they run about a third of our business every quarter and that was Frank has made comments before too that if we don't sign on another customer we can still grow twenty-five percent per year plus just based upon the upsell business opportunity that we have within our existing installed base of customers that's penetrating accounts deeper more seats more licenses more processes and applications yeah the main grower of our upsells are the main contributor to our upsells within our customers really has been additional seat licenses because many of our customers we still have even fully penetrated IT and as we roll out more applications or make our applications more feature-rich as we talked about as Frank his keynote he talked a little bit today aitee costing we've always had that as an application but that's going to be coming out as a much more feature-rich application it's going to be a lot more usable to some of our customers when that goes live that's going to drive more licenses because many times it's different people with an IT that are the process users behind that and then it's going outside of IT as well with the adoption of people enterprise service management concept that Frank's been talking about that will drive incremental users as well too we do have some additional products such as orchestration discovery with a vast majority of our growth and customers is additional licensing so very consistent performance like I say the stock pull back a little bits interesting you guys worked a Splunk tableau smoking hot stocks of all pullback obviously it's almost like you trade as a groupie even though completely different companies completely different business models you don't compete really at all but so you kind of got to be flattering to be in that yeah obviously but it's I looked at as X this is good in a way this is a healthy you know pull back it's maybe a buying opportunity for people that wanted to get in and there are a lot of folks that I'm sure they're looking at that do you I mean how much attention do you even pay for it i know most CFOs i took a say look we can't control it all we can control is you know what we can control and that's what we focus on but you even look at things like that you order your thoughts on you know and unfortunately there is a little bit of a psychology going on here with some of our employees and they're always asking and my comment to them is the only price that matters is the day you sell and this pullback that we've seen recently this is not uncommon was I expecting it to happen right now you know I don't if I if I could predict those things a lot of different line of business but what I will say history is the best indicator of the future and even a company like salesforce com one of our large investors last week he sent me an email and said you do realize that in the first five years of sales force being a public it had forgot if it was four or five fifty percent pullbacks in the stock price so this this happens it will happen I guarantee it will happen again sometime in the future but not just with us with all the other companies I'd be more concerned if it was we were the only company that traded down and everyone stayed up but we're all trading down we all came back today it's interesting and you kind of burned the shorts last year and they've made some money now but but you know Peter Lynch they don't ever short great companies and it's very hard to too short great companies your timing has to be perfect so and your core business you know like for instance a workday is is fundamentally very profitable or you know it should be right and because you're spending like crazy on sales and marketing you're expanding into into AP you're expanding your total available market and you're still throwing off cash what if you can talk about that a little bit you had said off camera your goal is to really be you know so throw off little cash basically be cash flow breakeven yes yes so you know you can only grow at a certain pace last quarter we added 150 new people into our sales and marketing organization that was the the largest number that we've ever added in one quarter we actually added 273 net new employees in q1 that was the most we've ever added in a quarter and even with all those ads we still had very good positive cash flow so it's pretty hard to add at any faster pace than what we're doing right now and so you know I just I don't see us being cashflow negative anytime in the future right now unless something happened and write it have to be a pretty major catastrophe thing and it's not going to be specific to service now it will be kind of across the board we're all CIOs stop spending and the other thing I learned here I thought maybe I just wasn't paying attention to earlier conference calls but the AP focus a large percentage of the global 2000 is in asia-pacific so you're out nation-building right I won't if he could talk about that sure so in two thousand and from March 31st 2013 till March 31st 2014 we open up in 10 new countries most of those were in asia-pacific there's still more countries we're going to be going into an asia-pacific and why are we going into these countries we're going into these countries because that's where the global 2000 accounts are that is our strategy because we focus on quality of customers not quantity of customers what I mean by quality of quality customers one that can grow over time to be a very large customer and even in 2013 we went into Italy and people said at the time well why are you going into Italy we went to Italy because they have global 2000 have 30-something global 2000 accounts even though the Italian economy wasn't doing well global 2000 customers still spend it's not specific to that country their global we signed to global 2000 counts in Italy last quarter so we have a history of showing that if we go into those countries we will be successful in winning those global 2000 and will continue there are some global 2000 so in geographies where it's going to take some time before we actually have a physical presence such as mainland China we do not have any sales people in mainland China today Russia we did not have any people in Russia today how about Ukraine you know we have no one in Ukraine today good thing about Hitler you get to go visit there that's your country I wanted to talk about the TAM yesterday last year we had I kind of watched it but but I was asking Colombo questions about the team because it was you know very interesting I saw a lot of potential want to try to understand how big it could be you and I talked about you had said its north eight billion of course the the stock took off i think it probably 10 billion from a value standpoint I didn't my own tam of mid year I did a blog post I had it up to 30 billion so I started to understand it was a top down it wasn't a bottom up but you guys are starting to sort of communicate to him a little bit differently you got had the help desk and then beyond that the IT Service Management and then you you've essentially got the operations strike the operations management and even now sort of enterprise and business management so I wonder if you could talk about how you look at the the tam and any attempts that you've made to quantify it sure so there's really four markets we play in that really intersect with one another in the core of our market is the IT Service Management that's kind of our beachhead and how we go into accounts in that market right now when historically when we went public gartner groups of the world they looked at it as a helpdesk replacement market they were saying as a 1.4 to 1.6 billion dollar market what they were missing is there's many other things in that space IT service management such as ppm such as our cmdb such as asset management a lot of these things aren't in your traditional help desk we think based upon the rate at which we've been extracting from the market that somewhere we can afford a six billion dollar market opportunity just IT Service Management and then IT Service Management is a subset of the overall enterprise service management market that Frank has been talking about we talked about in our analyst state we think that is potentially as high as 10x the size of our IT Service Management so that can get you up to say that 40 billion dollar plus and then you as well have the IT operations management space IT Service Management you just have the legacy vendors down there nothing innovative happening down there service relationship a lot of white space a lot of stuff that's being done in email lotus notes microsoft access sharepoint those are the markets were going after there really are no true systems in and that's in that space it's those one-off custom apps IT operations management there is a lot of innovation happening down that in that space it is very crowded with some new vendors as well as the legacy vendors the area that will plan might be the whole 18 billion dollar market at IDC talks about you know it's still early innings but it's at least two billion of that market 24 billion will be going after and then Frank brought up this concept of the whole business analytics as well too we talked about we did our acquisition in mirror 42 in 2013 and the business analytics kind of sits at the top of enterprise service relationship management the market we can go after in there that's a that's a whole market into itself at least as big as the enterprise service management but we're not going after that whole market it's just the business analytics to the extent it relates to enterprise service management so that's at least a couple billion more unfortunately this is what we believe there is no published reports out there and times going to is going to tell it similar to when Salesforce went public no one believed the opportunity in front of it and now look how big that come have a 30 billion dollar plus company valuations are depends on what time of year it is what the markets doing but over the long term you know you can sort of do valuation analysis it in the CFO world is there some kind of thought in terms of the ratio between an organization's tan and it's in its valuation you know I mean these other things raid obviously the leadership etc but but for the top companies there a relationship I personally don't get wrapped up in valuation you know I can't control that I can't control public company multiples the only thing we have control over is running our own business and we're going to stay very focused on running our business and let other we'll take care of the valuation good business you picked a good one yes no I I'm very pleased with this one excellent all right Mike well listen thanks very much for coming on the cube we're up against the clock and I always appreciate you thank you Dave time up alrighty bryce bravely request with our next guest we're live from tony south this is dave vellante with jeff record right back