>> from Austin, Texas. It's Theo Cube covering your storage accelerate 2019. Brought to you by pure storage. >> Welcome back to the Q. We are wrapping up day two of two days of coverage. We're getting some applause. I'm pretty sure that's for us. At pure accelerate. 2019. Lisa Martin flanked by two gents Day Volante and Justin Warren. You probably know Justin, who's been on the Cube many times and less. Chief analyst. A pivot. Nine. Justin. You have been covering this event and well as an independent, so we want to get your take on this two days. We've had our 1st 2 day for the Cube covering pier storage. We've spoken with lots of people, cause Charlie kicks. I'm sure there's more nicknames that I'm forgetting customers. Partners. Dave. Let's do a quick recap of some of the trends and the themes that we've heard the last couple days. And then we'll get some independent analysis. Justin on Not just what you've heard the last three days, starting with a tech field day, but also just your history of covering and working with here. >> Well, so for my sample, its story of growth they even started pure starts all the press releases with the only company that's growing on the growth storage company. The growth in the first. So so this growth is a financial story there. Um pure is going for growth, the markets rewarding growth right now. So it's smart, double down on growth. That might change at some point on. We talked about Charlie Jean Carlo about this, and they'll decide what what they do at that point time. But But from a financial standpoint, growing fast, uh, like their balance sheet, be interesting to see if they can leverage it. Maur. But maybe they're using it for Optionality. They'll do 1.7 this fiscal year. 1.7 billion. That's good. They got 70% gross margins. It a little bit of free cash flow. Not much because they pour it back into the business. So story a growth that's number 12 was differentiation. Um, I think it it's pretty clear that their products are differentiated from the sort of big portfolio companies. I mean, it's it shows up in the numbers and the income statement, and it shows up when you talk to customers simplicity, the whole A P I thing. I guess the third is products. I mean, they're embracing the cloud, which is kind of interesting. I don't think they're gonna do a ton of business with block storage for AWS, but it's an interesting hedge, and I think it's really cool from an engineering standpoint on, I think you know, two other things. Culture but orange. They're different, They're cool. They're hip and customers, which at the end of the day, that's where the rubber meets the road. Customers happy you talk to companies are customers of companies like pure service now Splunk Nutanix >> Uh uh, >> and some others. And they're happy. They love it. It's transforming their business. Snowflake is another one. Really? How come you AI path is another one? These are the hottest companies in the business right now, and you can tell when you talk to their customers is good story >> and their customers articulate their differentiation for them pretty darn while what? You know, we've spoken to a number. I think four or five customers the last couple of days, and they're not talking about Flash Ray flash blade X M flashback. They're talking about their business and how the I T is benefiting from that and how the business is benefiting from that. You also see piers very vibrant culture being embraced organically by their customers. There's plenty of customers walking around and the brightest orange I think I've even seen here. So there they're differentiation. Their culture, their customer experience and their ability to really differentiate three that are were loud and clear for what I heard through the voice of the customer and the partners, Frankly, as well. >> So I guess, Justin, I mean, the other pieces Tam expansion 1st 10 years, Cloud New Way I workloads partnerships with backup companies growing. The Tim I've said the 1st 10 years is probably gonna be easier, and I know that's a terrible thing to say, but don't hate me for saying it pure. But then the next 10 because they're up against the flat footed E. M. C. That was getting pounded by Elliott management with pressures to go private, trying to hang on to its legacy business and then got acquired and distracted by Del. So that was a really tailwind for Pierre. Now it's like Cloud guys got their act together, you know? Aye, aye. Everybody's doing A s. Oh, so they get some challenges. But what's your take? I think I've >> still got an advantage. Talking to some customers, 11 in particular was quite clear. That they saw pure is having at least a 2 to 3 lead through 2 to 3 year lead on the technology from some of their competitors. So they shopped around and they had a look at some of his competitors, and they thought that actually they were trying to sell me technology that's 234 years old and they quite from them, was that this is something that I could do myself, so they clearly see that pure provides them with something that they can't do themselves. So pure has an advantage there. I also think that the way that the market is changing advantage is pure, a little bit as well. So you mentioned Cloud there, Dave and I think that we've all seen that people have realized that multi cloud is a thing and that not every workload is going to go to the cloud. A lot of it is going to stay on Prem, so now that that's kind of allowed, people are allowed to talk about that, That there are CEOs who would have been being pressured by boards and so on to say we have to go all in on the cloud. Now they can come back to them and say, Well, actually, weaken, stay on side. That means that we should be looking at some of these onside products, like pure so that we can go on put in storage. A race in a data center may not be our Dana Senate might be in Coehlo, but we have this on site method of doing things. Not everything has to go to the cloud. So I think that will help them with some of the growth. >> So I'm left thinking, What would Andy say? Okay to >> be >> It's the number one hottest company, you know, notwithstanding some smaller companies right now, cos moving the market is a W s obviously Microsoft with the trillion dollar valuation. But Amazon, to me, is the benchmark it. So I feel like Jassy would say, Well, so Hey, Andy, you've acknowledged hybrid, you know? Actually, yeah, I guess he uses that word. Um, and you're doing some stuff one prim, but I think he would say we still believe that the vast majority of workloads are gonna land in the public cloud. And what you just said is what everybody else believes. And to me, they're in conflict and I don't necessarily have the answer. But you got the big gorilla. Now the big claw gorilla is moving. The markets say with one philosophy and they've made some good calls and the entire i t industry. Yeah, the other the inspector. >> Except that AWS has outpost have a product that actually sits on site. And they did. And Jesse last year said that he did say that the boat inward, multi cloud, >> you know, So, uh, sorry. Used the word multi cloud used hybrid hybrid cloud. They don't say that. That's for Boden, but no. But my point is they've acknowledged hybrid, which they never used to talk about hybrid. So they capitulated there The end where capitulated on their claws on its cloud strategy. But he has not capitulated on the belief the firm belief that most workloads are gonna be in the club. I'm not sure he's wrong. >> That may be true, but on what Time horizon? So that's not going to happen next year. But I >> think for sure, >> I pointed out that the agile manifesto came out in 2001. That's 18 years ago. Not every shop is doing software in agile, so enterprises take a long time to change, so there's plenty of room for pure to grow. While that changes going on, even if it if it does go all their own cloud, it's gonna take a long time to get there. And people can make plenty of money in the meantime. >> But I believe you're sorry. I believe pure is growing in what is a crappy market. Yeah, I think the storage market is a crap market right now. It's one that's very difficult. The leader Deli emcees growing at 0%. And that's a goodness because they're gaining share. Ned ABS down last quarter, not minus 16% IBM, minus 21% hp thrilled with whatever 3% or whatever. They're at a minus three. I can't remember now. Here is the only one that showing any substantive growth on my premises there, doing that by having a superior product and business model, and they're stealing share. So and then I ask you this. I I believe in hybrid, by the way. But I'm just playing kind of devil's advocate here. Cloud is growing and it's consistently growing and everybody talks about repatriation. You don't see it in the numbers. Every talks about the large of the law of large numbers like in other words, they hit a wall. You don't see that in the numbers. What you see is the traditional IittIe spaces flattish. The new stuff that they're all developing is not growing fast enough to offset the old stuff. You see that? Certainly. See that IBM. You see that now? Adele, even though they had good bounce back last year. But now you're seeing that Adele Oracle ekes out 1% growth. So the big, uh, legacy companies are growing there, hanging on there, throwing off tons of cash. They got good, strong balance sheets, maybe taking on some cheap debt. But the cloud continues to grow at a pace that I think it's stealing share from traditional I t. >> That's that's a reasonable sort of announcing something. Yeah, whether or not we'll see an increase in growth of onsite, particularly things like EJ computing way, maybe you need Thio redefine what we think of as a data center, and maybe we're not thinking about a broad enough market. I actually think that a lot of those workloads that we would traditionally have said would go on site and cola. I don't think Cola Data Center is actually growing all that much, but I think we are going to see growth in things like EJ. >> So that's a really great point I want. I want to come back to that. But the big question is, then okay. Can cloud be before we get ahead, you can cloud be a tail wind for pure. They've embraced it. 20 years ago, the leaders of a company would say, Oh, no, it's cloud his crap about a peace Caesar of toys You remember that pure embracing cloud, I think, is impressive only from an engineering perspective but business model. So can they make in your opinion cloud a tail wind and an opportunity? Maybe that's where Multi Cloud comes in. >> Yeah, it's tricky. I think it will become more of an advantage once good things like kubernetes and containers matures a bit further and people are used to being able to deploy things in that way, both in Cloud and on site. I think that that's the portability play, and it's more about making onsite more cloudy rather than making the cloud more enterprising, which I think was one of the messages that we had here. Because enterprises a lot of what yours messaging so far. And it's product development, particularly around cloud block stories, to make the cloud look more like an enterprise. Where's what we actually needed it to go the other way. Pure is doing things in that in that regard with pure storage optimizer, which which takes a lot of the decision making a way that from the way you would normally do things on side the way we've gotten used to it, manually configuring things, it's actually turning it into software on just letting computers handle it. That integration with things like the M, where is making things operate a lot more like cloud? So once enterprises become used to operating on a lot more like clouds, I think that's going to be an advantage for pure. To be ableto have that operations be in cloud and then they'll bring in products into in time for that to happen. >> You have the opportunity just in a couple days ago to tend the technical field day, the TFT that pure dead. So you got that double click the day before all the press releases broke about. Some of you know, we talked about the expansion into cloud with aws Maur, their portfolio delivered as a service. The aye aye data hub. But if we look at one of the things that stuck out today was differentiation. We've talked about that a number of levels in the last minutes. But talk to us about the technical differentiation that you've not only heard this week from pure, but that you've been engaging with them for years. You have an interesting story of Of John Cosgrove caused their CEO and founder really describing something very unique. That seems to be quite a technical level of differentiation that you even said We don't see this from a lot of their competitors. Give us a little snapshot of that. >> Yeah, you don't sort of get that level of detail in some of the briefings as well. So it was another tech Field day event some years ago on was talking about flash array and we sat in a room, and they had a flash array in front of us, and I think they were talking about the newest kind of flash they were putting into this. But they described some of the technical decisions they made about the architecture inside the blade. So at that time, and I hope I'm getting all these details correct, they had designed and asic, so to go in front, off the flash so that they could essentially create a layer above above the flash that they could speak to within their software. That meant that it didn't matter which flash foundry they bought it from, because it's slut. There are certain differences around the way that flash works, and they do address the flash directly, unlike buying SS D's and putting them inside the box. So that gives them a performance advantage because you don't have a whole bunch of software translation going on to get into the flash. But that decision meant that they could then change flash foundry without changing the experience off the awful. The software developers up the stack inside their array, so that meant that there cadence of being able to bring out new products and gradually dropped down the cost of the supply of flash, which makes up a large amount of the calls on these particular devices. It provided them with better options so they could maintain, maintain optionality essentially and be very, very flexible and react to the things that they can't predict. So Charlie mentioned in the briefing yesterday that you know, in this industry, you might get a 20% drop in the cost of flash in one month, which will then affect them their revenues in coming months after that, because clearly they want to pass on some of those cost drops to customers. But it needs to be done a certain, more manage way. When you have that kind of dynamic behavior happening in the market, being able to react to that well in something where the hardware design time can be 18 months to two years, building that into your product so that it then provides you with business options as a technology, that's a really impressive way of thinking about how all the different pieces of your company have to interact with each other. So it's not just about the technology, it's about the business and the technology working hand in hand, >> and those lower flash prices should open up new markets for them. Flash a racy I think they call it, is still not at the price of hybrid, I wouldn't think, although they saying it will be. Hybrid arrays are priced around 70 60 70 cents a gigabyte today is according Thio Gardner analysis. Big >> Challenge with hybrid of rays Which flat, which flash around flash or a C wouldn't actually wouldn't have? This problem is the reliability of the Leighton see and predictability. So with an old flash array, you don't get Layton. See sparks if you suddenly exhaust the amount of flash that you have in a hybrid of rain that has to go back to the disk. So if you need that predictable performance, that's why people have gone with flesh arrayed very beginning, absolutely getting that as a capacity tear. I think that provides a lot of reliability, for particularly when you've got large amounts of data need to write flesh >> and the price is coming down and it's maybe it's double now on a per gigabyte basis, that'll come down further. But I welcome back to EJ because I think you bring up a good point And we didn't Thankfully, here a ton about EJ. I think we heard anything about EJ at this show. We didn't get inundated with edge, which we always do with these big shows. And I'm happy about that because I think that that a lot of the companies that we re attend I think they got it wrong. They're taking a box and they're throwing over the fence to trying to do a top down model to the edge. Hey, here's a server or here's a storage device and we're gonna put it at the edge. It's like, OK, well, I think the edge is going to evolve as a software development. You know, play not isn't over. The top is gonna be bottoms up innovation. Now, I don't know question about you know, whether Amazon at the edge vm wear at the edge. Um, but I don't see any traditional i t companies crushing it at the edge there talking about it. They're trying to build out ecosystems, and but nobody's has meaningful revenue today at the edge. But it's a new way to think about this. Distributed massive compute engine >> on. I think we'll start to see that mature as people start to bring out products that actually do operated the way heard from Nvidia about some of their ideas that they have about doing a I processing at the edge for things like image recognition systems, where you train your model on leg large data sets in a cloud or in a data center. And then you shoot those models out two devices that operate on a smaller data set. But for a lot of these things, you need to do data collection at the edge. So Formula One is a classic example based given for the F one racing team is an I. O. T. Company that is connected to a nail and analytics company. Really? >> Yeah, that's right. We did hear about EJ and that an actual use case is in college edge, so there's going to be >> a lot more of that. We have things like sensors are just all over the place, so you know, in anything in retail, if you have fridges in retail and you need to monitor the sensors in those to find out whether or not is the temperature going out out of control or outside of your control limits because that will affect the food that's in that. There's a whole bunch of kind of boring examples that are actually all I OT. So I think some of those will start to push more data into into devices at the edge. And as people's understanding of how to use machine learning and I matures away from the hype, I think we're pretty peak hype at the moment. Once we do actually drop that back a notch and we see that people they're doing really use riel riel world use cases with real world business value that will start to drive a lot more of the growth of practical. And that will drive growth in data, which will need to get close throughout the weather's device. >> I think you're right. I think that date is gonna be at the edge of a lot of that data. I would say most of that date is going to stay at the edge. It's probably it's not gonna says it. Probably it's definitely not going to sit in a million dollar storage array, and it's gonna comprise a lot of alternative processing arm, Uh, GP use versus conventional microprocessors. So >> and that's where I think he was thinking about, like the white pure One works, for example, pure. One works the same no matter what products you have from pure, and they have been very clear in stating that they want to make sure that when they bring out a new array or a new product, it works with pure one. So it's that consistency of experience for their customers, which I think is fairly unique in the industry, is a lot of other products that will come out. And they only partly supported, not full support for their entire race tagging. AMC struggle with that for a long time simply because it has so many products and needed to kill a whole bunch of them first. So when when you have that kind of engineering discipline built built into your company, when you go out and you have customers who have edge devices or you have stuff in the cloud and they have devices on their phones which they used to showing off a conference and say, Hey, come and have a look at my array, it runs on software on my phone that's pure one that software ability that pure has of being able to address this data wherever it is. I think >> there's >> a real opportunity for pure that put that kind of intelligence on to age things. Even if they don't actually sell any flash a raise to those people, they could start to sell them software. >> All right, guys. So 15 seconds each since arose at a time. Computers competitive. Positioning your thoughts in a quick summary about what you've heard the last few days and what Justin has >> to me if I would expect continued growth, forgetting about the macro for a moment, even in gonna grow faster than the market place. Um and yeah, they said they don't throw off as much cash as the big guys. So it's gonna be a game of the big guys do in stock buybacks, free cash flow and pure storage. Investing in growth. >> Excellent. Justin. >> Yes, I agree. I think they're going to double down on the R and D spend to make sure that they maintain a technological advantage over their competitors. The biggest risk of pure is if the other players, you know, the deal emcee other plays in that big online storage market. If they actually get their act together and start bringing out competitive products, that's the biggest threat to fuel. But pure has a big lead on them. I would say, >> Yeah, I think the last thing cloud, you know, kind of a question Mark. And I think the m where to me, Del. Of course I care about storage is huge business for them. They're all above the M where and to the extent that they can leverage VM where, you know, as a competitive weapon, they'll use it against anybody you know. Damn the ecosystem. >> Excellent. Well, thanks, guys, for a great wrap up to our two days here for Justin Warren and Day Volante. I'm Lisa Martin. Thank you for watching the cubes. Coverage of pure accelerate 2019.

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Hey, welcome back to the cubes. Coverage day to appear. Storage your accelerate 2019. I'm Lisa Martin Day. Volante is my co host, and we're very pleased to welcome for the first time to the Cube. Kathy Southwark. This C I O at pure Cathy. Welcome. Thank you. Glad to be here. You have a great story. This is not only your fear. Your first your accelerate. You been at the company less than a year. You were not only a pure customer before, but in a completely different industry. So your first your accelerate. Here we are in Delhi Technologies backyard. Give us your perspective on appears business from your previous customer role. >> Yes. So I spent. I've been here just under a year, she said, and I spent the almost 22 years 18 t and coming into a company. It's completely different. Different size company, different size technology issues. Everything we do is looks very different. But there's a lot of similarities that, you know, you're trying to as any company trying to innovate and trying to stay on the cutting edge and you're trying to make sure you have the right teams in place and all that, so it's a lot of fun. It's great to see the energy and the excitement here, so that's been a lot of fun to come in and to see orange everywhere painted or so it's been a lot of fun coming on >> and you're complying with your orders. >> I got the memo. I said, You know, it's hard because orange is not one of my better colors toe where but no happy toe, happy to wear orange and proud to be part of such a company who's really looking at? How do we take care of the customer? >> Right. So you were sold on pure as a customer when you were with age and T. What was it about the technology that when you were in that prayer roll that really differentiated it from its competition? It was really >> interesting. I was sharing folks earlier today that here was very different, smaller company coming into a very large organization. We started working with them back in 18 t in 2013 so they were a very small company, very early on, but they were so bullish they had this completely different attitude about storage. And it wasn't really necessarily about this storage. It's about what we're gonna do to help you change your business. So for us, you know, I really looked at when you're in a very large company, you tend to not look so much at the particular like storage or computer or what you're really looking at, How many enabling my business and with the limited dollars that you have. And resource is etcetera, you're always trying to balance and prioritize. So for us when they came in, they made this proposition and said, Hey, we can show you this in two weeks and it'll, um And you know, when you're also big enterprise, you don't have time. Thio look a technology for weeks and months on end and then have to test it. And so we brought pure end. They they were tested out the products within two weeks, and we saw more than what we're expecting. And I think that was what changed for us is it wasn't just about we could do, you know, compression. We could do the deed if we could do. It was that all of a sudden was all these other capabilities been planned for So it really was. It was pretty pretty dramatic for us because we hadn't seen other providers to come in with a story that sounded different and not just the technology. Like I'm gonna save you a dollar. It's about now I'm going to enable your business to do something different faster. And we saw it firsthand. >> I was the role of C i o at a technology company. Different from you were in a c i o N a t. But you you had kind of an engineering roll. If I think it's a solution Engineering, how is the role different in terms of how you spend your time and what you care about? >> Yeah. So, you know, in 18 t, the CEOs were focused on the application delivery sites of specific applications at pure and so an 82. My role is centered around all the infrastructure for I t. As well as our network engineering. So what we did for the Service Writer network coming into pure, you have, you know, the whole spectrum. But we're a different kind of company. and that really 10 years old. Our technical debt looks very different. We use a lot of sass products, so we use a lot of hosted solutions from our partners and providers, and we do someone premise well. But it's a very different kind of landscape, so the opportunity is you don't have as much technical debt. You also have the ability to to try things because you are smaller and you can try things much quicker and be able to say, Well, this working isn't good enough and not have to have maybe things as gold plated. As you know, a regulated telecom would have versus a product technology product company that it's trying to be very agile to produce things and change for their customers. >> So essentially you were. I'll call you the C i o of of infrastructure at AT and T with infrastructure that had to support, like you said, highly regulated in a very diverse I'm sure application portfolio. Extremely there. Thousands of systems, probably >> thousands of applications and very complex business models. They, you know, they're ah, it's not a one. So the interesting is 80. >> She's >> not a one entity business, you know they've got their media business. They've got there mobility business. We've got their wireline business. So when you have people often think of 18 t as a company, But there's actually it's a very complex business model supporting multiple products. So it's just that those air, you know, multi $1,000,000,000 product portfolios versus coming into pure where you know we're still, you know, 1,000,000,000 have company building and growing our product portfolio. >> So what's your technology strategy of pure and how are you enabling business outcomes for the company? >> That's a great, great question. So, you know, really, a business strategy here has been that I t has to really evolve and scale differently than it had in the past. The organization before was really centered around Some of the end user capabilities wasn't as centered around business outcomes, and we've taken on a different role. So as I've come on to the organization, our opportunity and our challenge is that we now have different responsibilities, were taking on things like, How do we want to think about data across the enterprise, not just within each individual domain, and so as a start up company, you often are very focused on your R and D investments in your sales and marketing investments, and you do a lot of things to get it done. And that means that individual teams will do work. But you tend to not think about what the full life cycle is of, you know, of something that you're working on. So for our opportunity now this is take a step back, be able to look across and say it worked great for that period of time. Now we have the opportunity to rethink how we want to think about the customer experience from the time product is developed all the way through and, you know, a quote to a customer through its life cycle through delivery and then the support for that customer >> so so technology, the support that sort of workflow >> the ecosystem instead of within individual areas. And so that's really there are focuses. How do we help our business to become even faster? How do we get more focused on the customer from ah whole ecosystem? And that we think about the customer from the whole ecosystem instead of each individual area? >> Sounds like that horizontal view that Charlie Giancarlo talks about you know, with storage being so vertical in the past and cures wanting to revolutionize that and make that horizontal, ensuring that any type of business, whether we're talking about yours, business or ah retailer or our airline, every function in an organization has access to share. That data exactly struck business value to lower costs to find new revenue streams, new routes to market, et cetera. >> And we're no different as a business. We need to do those same things to make sure that we can. We can deliver those for business, so that's a big part of a lot of >> times we'll talk to C. I ose that technology companies and their large established technology companies that I think Cisco S A P. They've been around a long time. They have a lot of technical debt. They look a lot like your customers, frankly, many of your customers yours ever. But my question is a lot of these c I ose that I've just mentioned, sort of generically there come wine tasters, right? You know, they used to be dog food or his drink your own champagne, but But they they are like the first line of defense verse beta customer, and they give feedback to the product groups. Do you play that role as well? >> Way do we not probably to the extent, because we're a smaller company. So we tend Thio, as with our product announcements we've made will go out to a wide set of our customers, you know? So I think we had 16 1 of the bait is that was just done. What we do with an I T. Is because we have a smaller footprint just the size we do have flash ray with a flash blade with you do use pure one. We do it Maur of ah, from how would a a smaller customer look at it, Think about it and use it. And so that's tends to be the I'll say, the lens that we look through. I think that the role I've played coming in is the bringing a perspective from a larger enterprise on how does a larger enterprise an I t. Think about it and it's again. It's not just your helping me with storage. You're actually helping me to solve a business problem. So there's s oh, there's some other and some of the leaders that we've brought in. They also come from outside industry. Some have used pure, some have not, and so have that different kind of lens of what you know we would expect to see from our product seems, but they're also extremely open. Thio. What do you think? What is I t thinking about how you were thinking about these product ideas? What what's the input from I T. So there's a lot of what we're very small from a nightie organization. I think that the two way communication is what it's gonna you know, what will help, >> what are some of the innovations? And I know you've only had a short tenure there, but one of the things I read in the Q two earnings but that we're just released last month in August was seven. That new customers added per business safer pierce of 450 or so, plus customers at it in that quarter but also a 50% increase in multimillion dollar deals. So, enterprise, any innovations that you can share since you've been on board that your team has helped cure, understood to be able to go after those large enterprise multimillion dollar deals directly. >> Well, certainly from, um, you know, from a you know, a personal understanding of the product and what here could do it scale is, you know, I certainly have that perspective to share with our customers and bringing that confidence and credibility that, you know, if you are looking at a large enterprise customer in the opportunity, they have a lot of questions about. So how exactly did 18 t do it? It's not like they run a few arrays. They run hundreds and hundreds of rays and hundreds and hundreds of petabytes. So there's It's not like it's a proof of concept or a pilot. And it's been years of doing upgrades, non disruptive Lee over the years, with all the pure upgrades that have come into play. So I can certainly bring that to the table with helping the customers to get it, you know, a little bit of confidence, but also just an understanding about how pure is approaching it with these other large customers. So and as you've talked to other customers, there's there's enough customers out there that are, you know, very, >> very eager to >> share because they're so excited about what it's done for their business. We've >> heard. Sorry, David, I was going to say on the customer front we've, what 6600 plus customers pure now has in its 1st 10 years. And the customers we've spoken to the last two days, Dave and I have noticed that a common theme is they're talking about their overall experience with the technology. They're not talking about boxes and array names, and all these specifics are talking about how they are able to one customer from, ah, legal firm, I think in Florida didn't even do a PC had appear. That was a pure customer. And from that piers advice. I got it right on board and was really talking about the experience and all of the things to your point on the business side that they're able to to influence with the technology, not talking about speeds and feeds and arrange drives and things like that. So it's very, very different conversation. >> It's S O. It's interesting because and the role that I had, I had the teams that did the architecture, planning, design and through implementation. So the operation teams one of the most unique things I've said I share with customers is when you are in a technology and you're in a large enterprise, you tend to have a challenge with introducing new technology because you don't want more technical debt. It doesn't matter what you just don't want more technical debt. So typically your operation teams are >> doing a little >> bit of pushback on you. No, no, we don't need something new. No, we don't need unless they're having significant outages or incidents that they're trying to solve for what I found. And even to this day, there is some of the folks there actually around the floor here. The folks that were in operations, they were literally coming and saying, We want more pure And so when you're in a technology organisation that typically doesn't happen. It's S o it wasn't And it wasn't like we want more of like you said the array, it was we just want we don't wanna have to worry about. And I just took a reduction of my head count. So I want I find you have to take on more data and I am. You take on more support for the business. I don't have to worry about it. And so to have that. That's a very different. And we had the same experience of their application team saying, Hey, I just got lower latents. So they didn't actually know why. They just knew that when I was trying to do my work on the application side, working within a database, all the sudden I had all this improvement and, um and so what? We allowed them to sit. Okay, well, we'll give you more capabilities, more future functionality. And that doesn't happen. Before, those were things were like, really like operations and application teams are gonna work as a team together. Very different. I'm experience. >> So if I were a pure sales rep, I would say, >> Kathy, can you come tell my customers my prospect that >> story to the sales reps have access to your calendar? How much of your time? How much time you spend, you know, sales folks wanting you to tell stories like I got >> so the I have no the company that long. So I have I have spent a fair amount of my time talking to customers. But, you know, we also have a lot of work with an I t. And so are you know it's there just is incentive to have me work with an i. T. Because I can understand what we need to do to help our field as well. And that's one of our objectives is what are we gonna do an I t. To make it that much easier and better for not just our sales teams but the manufacturing teams. The support teams are hardware, teams, all the teams that takes a deliver. And so, you know, in fairness, I have joked with some that have stopped me and said, Hey, we need to I said, Remember, we also want to deliver for you so that to make your jobs easier So there's a balance >> that it's different. A technology company writes kind of encouraged that the C I. O goes out and evangelize is >> Yeah, it's actually a lot of fun. I, uh I I do joke that when I go out to talkto the other CEOs, I mean, they're my people there, too. I know it's It's the challenges that we have to deal with. The you know, you're dealing with the technology, those very specific items, then you're dealing with that. How do we help my business and then you're dealing with. I want to make sure I'm doing the right things for people development and all those so and you have a lens across the entire enterprise. So it's not like you're just looking at sales or you're just looking at ops for your You're kind of looking at everything to say, Well, how do I help all the teams to be that much better? Because the better we are, you know, be cliche. You know, collectively, that just got is gonna enable pure toe to do more fun. >> So what's on the minds of your peers in these days? >> You know, I feel so fortunate to be in the Bay Area, and there are amazing CEOs that get together, talk very openly, share strategies, actually eagerly and openly reach out to say, How can I help you? Um, and that's I think that's a unique as part of the CIA, a community that there's this willingness to say, Look, we're all in this together from a technology perspective. I mean, look, we all want to do well for our companies, but you're also trying to figure out how to make technology team stronger and you know it's a lot of the the same issues. It's how do I change the focus of and the perception of where I t fits into a business that it's not just a back office? It's not these systems, but it's actually becoming a very strategic, you know, Enabler, advisor, participant Helping to help, you know, can provide input. You can be that one of the first you know, Betas for your company if you're in a technology area and that's a change. There's a lot of companies who have always fascinated where it's like if you're a product and you have an I T. You're selling to those people, so pitch to them. If you can't sell to them, you're not gonna be successful. So I think it's just changing, evolving. You know some of those relationships and and that's a big deal and and you know, that's from the how you run your organization. There's that, you know, how do we make sure that the technologies were were all investing in our somewhat future proof and that they can evolve with us, not become inhibitors or, you know, box you into something that you can't kind of navigate through >> well, actually deliver on future proof. It's one of those marketing terms that is used by so many organizations delivering whatever kind of product. Same is with simple and seamless says We talk about this all the time. We did hear from customers wherever Green is concerned. You know, I said, non disruptive is how much of that goes from a marketing to reality and consistently heard about Piers ability to deliver their. But it's interesting and it's a refreshing, I think, to hear that you've experienced the changing role of the CEO to be collaborative versus he knows a lot of competition. And in tech, that's a refreshing The deer And I have an idea for you since you're so you're in such a habit to D'oh, it's good. What? You're gonna like this. I have an idea. Hash tag. Help Cathy Scale. Give them this video. Just so many pure customers all across the globe. >> Thank you. I will do that. I would. That's great advice. >> That's it. Easy to d'oh! D'oh! Well, Cathy's been great having you on the Cube. Thank you for sharing your perspective as there newish. See Io and how you went from here customer to running their i t. And congratulations on being part of the next decade of pure success. Thank you. Thank you for having our pleasure for day. Volante. I'm Lisa Martin. You're watching the Cube.

>> Announcer: From Austin, Texas, it's theCUBE Covering Pure Storage Accelerate 2019. Brought to you by Pure Storage. >> Welcome back to theCUBE, Lisa Martin live on the Pure Accelerate floor in Austin, Texas. Dave Vellante is joining me and we're pleased to welcome a couple of guests from Core Scientific for the first time to theCUBE. We have Jim Benedetto, Chief Data Officer and John Curran, the SVP of Business Development. Gentlemen, welcome to theCUBE. >> Both: Thank you. >> Pleasure to be here. >> So John, we're going to start with you. Give our audience an overview of who Core Scientific is, what you guys do, what you deliver. >> Sure, well, we're a two year old start up. Headquartered out of Bellevue, Washington and we really focus on two primary businesses. We have a blockchain business and we have an AI business. In blockchain, we are one of the largest blockchain cryptocurrency hosting companies in North America. We've got facilities, four facilities in North Carolina, South Carolina, Georgia, and Kentucky. And really the business there is helping companies to be able to take advantage of blockchain and then position them for the future, you know. And then on the AI side of our business, really we operate that in two ways. One is we can also co-locate and host people, just like we do on the blockchain side. But primarily, we're focused on creating a public cloud focused on GPU centric computing and artificial intelligence and we're there to help really usher in the new age of AI. >> So you guys you founded, you said two years ago. >> Yes. >> From what I can tell you haven't raised a ton of dough. Is that true or are you guys quiet about that? >> John: We're very well capitalized. >> Okay, so it hasn't hit crunch base yet. >> Yeah, no. So we're a very well capitalized company. We've got, you know, to give you-- >> 'Cause what you do is not cheap. >> No, no, we've got about 675 megawatts of power under contract so each one of our facilities is about 50 megawatts plus in size. So no, it's not cheap. They're large installations and large build outs. >> And to even give you a comparison, a standard data center is about five to 10 megawatts. We won't even look at a facility or a plot of land unless we can supply at least 50 megawatts of power. >> So I was going to ask you kind of describe what's different between sort of blockchain hosting at conventional data bases or data centers. You kind of just did, but are there other sort of technical factors that you guys consider? >> Absolutely. We custom build our own data centers from the ground up. We've got patent pending technology, and if you look at virtually every data center in the world today, it's built with one thing at it's core and that's the CPU. The CPU is fundamentally different than the GPU and if you try to retrofit CPU based data centers for GPUs you're not going to fully maximize the performance and the capabilities of the GPU. So we build from the ground up data centers focused with the GPU at the center and not the CPU at the center. >> And is center in quotes because I mean, you have all this alternative processing, GPUs in particular that are popping up all over the place. As opposed to traditional CPU, which is, okay, just jam as much as I can on the real estate as possible, is that a factor? >> Well there's also a lot, the GPU at the center but there's also a lot of supporting infrastructure. So you got to look at first off the power density is very, very different. GPU, they require significantly a lot more power than CPUs do and then also just from a fluid dynamic prospective, it's very, the heating and cooling of them is again fundamentally different. You're not looking at standard hot, cold aisles and raised floors. But the overall goal also is to be able to provide a supporting infrastructure, which is from an AI ready design, is the interconnected networking and also the incredibly fast storage behind it. Because the name of the game with GPUs is different than with CPUs. With GPUs, the one thing you want to do is you want to get as much data into the GPU as fast as possible. Because compute will very rarely be your limiting factor with the GPU so the supporting infrastructure is significantly more important than it is when you're dealing with CPUs. >> So the standard narrative is, well, I don't know about cryptocurrency but the underlying technology of blockchain has a lot of potential. I personally think they're very much related and I wonder if you guys can comment on that. You started during the real, sort of the latest, most recent sort of big uptick, I know it's bounced back in cryptocurrency and so must you must've had a lot of activity in really, in your early days. And then maybe the crypto winter affected you, maybe it didn't. Some of those companies were so well capitalized, it was kind of their time to innovate, right? And yeah, there were some bad actors but that's really not the core of it. So I wonder what you guys have seen in the blockchain market. We'll get to AI and Pure and all that other stuff but this is a great topic, so I wonder if you could comment. >> So you know, yes, there's certainly classicality in the blockchain market, right? I think one of the key things is being well capitalized allows you to invest through the down turns to position to come out stronger as the market came out and you know, we've certainly seen that. Our growth in blockchain continues to really be substantial. And you know, we're making all the right strategic investments, right? Whether it's blockchain or AI, because you have such significant power requirements you know, you got to be very strategic about where you put the facilities. You're looking for facilities that have large sustained power capabilities, green. You know we've seen carbon taxes come in, that'll adversely affect folks. We want to make sure we're positioned for long term in terms of the capabilities. And then some geo political uncertainty is certainly affected, you know. The blockchain side of the business and it's driven more business to North America which has been fantastic for us. >> To me you're hosting innovation, you're talking blockchain and AI and like you're saying include crypto in there, you have some cryptocurrency guys, right? >> We do blockchain or cryptocurrency mining for ourselves as well. >> For yourselves, okay. But so my take on it is a whole new internet is being built and the crypto craze actually has funded a lot of that innovation. New protocol, when's the last time, the protocols of the internet, SMTP, HTDP, they're all government funded or education funded, academic institutions and the big internet companies sort of co-opted them. So you had a dirt of innovation, that's now come back. And you guys are hosting that innovation, that's kind of how I look at it. And I feel like we've seated the base and there's going to be this massive explosion of innovation, both in blockchain, crypto, AI automation and you're in the heart of it. >> Yeah I agree, I think cryptocurrencies or digital currencies are really just the first successful experiment of the blockchain and I agree with you, I think that is is as revolutionary and is going to change as many industries as the internet did and we're still very in a nascent stage of the technology but at Core, we're working to position ourselves to really be the underlying platform, almost like the alchemy of the early days of the internet. The underlying platform and the plumbing for both blockchain and AI applications. >> Right, whether it's smart contracts, like I say, new innovation, AI, it's all powering next generation of distributed apps. Really okay, so, sorry, I love this topic. >> I know you do. (laughs) >> Okay so where do these guys fit in? >> John: So do we. >> I mean, it's just so exciting. I think it's misunderstood. I mean the people who are into it are believers. I mean like myself, I really believe in a value store, I believe in smart contracts, immutability, you know, and I believe in responsibility too and that other good stuff but so. >> Innovation in private blockchain is just starting. If you look at it, I think there's going to be multiple waves in the blockchain side and we want to be there to make sure that we're helping power and position folks from both an infrastructure as well as a software perspective. >> Every financial institution, you got VMware doing stuff, Libra, I love Libra even though it's getting a lot of criticism, it just shined a light on the whole topic but bring us back to sort of commercial mainstream, what are you guys doing here, what's going on with Pure? >> So we have built, we're the first AI ready certified data center and we've actually partnered very closely with Pure and INVIDIA. As we went through the selection process of what type of storage we're going to be using to back our GPUs, we went through a variety of different evaluation criteria and Pure came out ahead and we've decided that we're going with Pure and we, again, for me it boils down to one thing as a Chief Data Officer is how much data can I get into those GPUs as fast as possible? And what you see is if you look at a existing, current Cloud providers, you'll see that their retro fitting CPU based centers for GPUs and you see a lot of problems with that where the storage that they provide is not fast enough to drive quote unquote warm or cold data into the GPUs so people end up adding more and more GPUs, it's actually just increased GPU memory when they're usually running around a couple percents, like one or two percent, five percent compute but you have to add more just for the memory because the storage is so slow. >> So you, how Jim you were saying before when we were chatting earlier, that you have had 20 years of experience looking at different storage vendors, working with them, what were some of the criteria, you talked about the speed and the performance, but in terms of, you also mentioned John that green was, is an important component of the way that you build data centers, where was Pure's vision on sustainability, ever green, where was that a factor in the decision to go with Pure? >> If you look at Pure's power density requirements and things like that, I think it's important. One thing that also, and this does apply from the sustainability perspective, where a lot of other storage vendors say that they're horizontally scalable forever but they're actually running different heads and in a variety of different ways. Pure is the only storage vendor that I've ever come across that is truly horizontally scalable. And when you start to try to build stuff like that you get into all the different things of super computing where you got, you know, split brain scenarios and fencing and it's very complex but their ability to scale horizontally with just, not even disc, but just the storage is something that was really important to us. >> I think the other thing that's certainly interesting for our customers is you're looking at important workloads that they're driving out and so the ability to do in place upgrades, business continuity, right, to make sure that we're able to deliver them technology that doesn't disrupt their business when their business needs the results, it's critically important so Pure is a great choice for us from that perspective and the innovations they're driving on that side of the business has really been helpful. >> I read a stat on the Pure website where users of Core Scientific infrastructure are seeing performance improvements of up to 800%. Are you delighting the heck out of data scientists now? >> Yeah, I mean. >> Are those the primary users? >> That is, it again references what we see with people using GPUs in the public Cloud. Again, going back to the thing that I keep hammering on, driving data into that GPU. We had one customer that had somewhere 14 or 15 GPUs running an analytics application in the public Cloud and we told them keep all your CPU compute in one of the largest Cloud providers but move just your GPU compute to us and they went from 14 or 15 GPUs down to two. GV-100 and a DGX-1 and backed by Pure Storage with Arista and from 14 GPUs to two GPUs, they saw an 800% in performance. >> Wow. >> And there's a really important additional part to that, let's say if I'm running a dashboard or running a query and a .5 second query gets an 800% increase in performance, how much do I really care? Now if I'm the guy running a 100 queries every single day, I probably do but it's not just that, it's the fact that it allows, it doesn't just speed up things, it allows you to look at data you were never able to look at before. So it's not just that they have an 800% performance increase, it's that instead of having tables with 100s of millions of rows, they now can have tables with billions of rows. So data that was previously not looked at before, data that was previously not turned into the actionable information to help drive their business, is now, they're now getting visibility into data they didn't have access to before. >> So you're a CDO that, it sounds like you have technical chops. >> Yeah, I'm a tech nerd at heart. >> It's kind rare actually for a CDO, I've interviewed a lot of CDOs and most of them are kind of come from a data quality background or a governance and compliance world, they don't dress like you (laughs) They dress like I do. (laughs) Even quite a bit better. But the reason I ask that, it sounds like you're a different type of CDO, like even a business like yours, I almost think you're a data scientist. So describe your role. >> I've actually held, I was with the company from the beginning so I've held quite a few roles actually. I think this might be my third title at this point. >> Okay. >> But in general, I'm a very technical person. I'm hands on, I love technology. I've held CTO titles in the past as well. >> Dave: Right. >> But I kind of, I've always been very interested in data and interested in storage because that's where data lives and it's a great fit for me. >> So I've always been interested in this because you know the narrative is that CDOs shouldn't be technical, they should be business and I get all that but the flip side of that is when you talk to CDOs about AI projects, which is you know, not digital transformation but specifically AI projects, they're not, most CDOs in healthcare, financial services, even government, they're not intimately involved, they're kind of like yeah, Chief Data Officer, we'll let you know when we have a data quality problem and I don't think that's right. I mean the CDO should be intimately involved. >> I agree. >> In those AI projects. >> I think a lot of times if you ask them, you ask, a lot of people, they'll say are you interested in deploying AI in your organization? And the answer is 100% yes and then the next follow up question is what would you like to do with it? And most of the time the answer is we don't know. I don't know. So what I have found is I go into organizations, I don't ask if people want to use AI, I ask what are your problems and I think what problems are you facing, what KPIs are you trying to optimize for and there are some of those problems, there are some problems on that list that might not be able to be helped by AI but usually there are problems on that list that can be helped by AI with the right data and the right place. >> So my translation of what you're asking is how can you make more money? (laughs) >> That what it comes down to. >> That's what you're asking, how can you cut costs or raise revenue, that's really ultimately what you're getting to. >> Data. >> Find new customers. I think the other interesting thing about our partnership with Pure and especially with regards to AIRE, AIRE's is an exciting technology but for a lot of companies is they're looking to get started in AI, there's almost this moment of pause, of how do I get started and then if I look at some of the greatest technology out there, it's like, okay, well now I have to retrofit my data center to get it in there, right. There's a bunch of technical barriers that slow down the progression and what we've been able to do with AIRE and the Cloud is really to be able to help people jumpstart, to get started right away. So rather than you know, let me think for six months or 12 months or 18 months on what would I analyze, start analyzing, get started and you can do it on a very cost effective outback's model as opposed to a capital intensive CAMP-X model. >> Alright, so I got to ask you. >> Yeah. >> And Pure will be pissed off I'm asking this question because you're talking about AIRE as a, it's real and I want some color on that but I felt like when the first announcement came out with Invida, it was rushed so that Pure could have another first. (laughs) Ink was drying, like we beat the competition but the way you're talking is AIRE is real, you're using it, it's a tangible solution. It's a value to your business. >> It's a core solution in our facility. >> Dave: It's a year ago. >> It's a core thing that we go to market with and it's something that you know, we're seeing customer demand to go out and really start to drive some business value. So you know, absolutely. >> A core component of helping them jumpstart that AI. Well you guys just, I think an hour or so ago, announced your new partnership level with Pure. John, take us away as we wrap here with the news please. >> Yeah, so well we're really excited. We're one of a handful of elite level MSP partners for Pure. I think there's only a few of us in the world so that's something and we're really the one who is focused on bringing ARIE to the Cloud and so it's a unique partnership. It's a deep partnership and it allows us to really coordinate our technical teams, our sales teams, you know, and be able to bring this technology across the industry and so we're excited, it's just the start but it's a great start and we're looking forward to nothing but upside from here. >> Fantastic, you'll have to come back guys and talk to us about a customer's who's done a jumpstart with ARIE and just taking the world by storm. So we thank you both for stopping by theCUBE. >> Absolutely, we'll love to do that. >> Lisa: Alright John, Jim, thank you so much for your time. >> Thank you. >> Absolutely. >> John: Really appreciate it. >> For Dave Vellante, I'm Lisa Martin, you're watching theCUBE from Pure Accelerate 2019. (upbeat techno music)

>> from Austin, Texas. It's Theo Cube, covering pure storage. Accelerate 2019. Brought to you by pure storage. >> Welcome back to the Cube. Lisa Martin Day Volante is my co host were a pure accelerate 2019 in Austin, Texas. A couple of guests joining us. Next. Please welcome Barack elected director product management for slunk. Welcome back to the Cube. Thank you. And guess who's back. Von Stewart. V. P. A. Technology from pure Avon. Welcome back. >> Hey, thanks for having us guys really excited about this topic. >> We are too. All right, so But we'll start with you. Since you're so excited in your nice orange pocket square is peeking out of your jacket there. Talk about the Splunk, your relationship. Long relationship, new offerings, joint value. What's going on? >> Great set up. So Splunk impure have had a long relationship around accelerating customers analytics The speed at which they can get their questions answered the rate at which they could ingest data right to build just more sources. Look at more data, get faster time to take action. However, I shouldn't be leading this conversation because Split Split has released a new architecture, a significant evolution if you will from the traditional Splunk architectural was built off of Daz and a shared nothing architecture. Leveraging replicas, right? Very similar what you'd have with, like, say, in H D. F s Work it load or H c. I. For those who aren't in the analytic space, they've released the new architecture that's disaggregated based off of cashing and an object store construct called Smart Store, which Broth is the product manager for? >> All right, tell us about that. >> So we release a smart for the future as part of spunk Enterprise. $7 to about a near back back in September Timeframe. Really Genesis or Strong Smart Strong goes back to the key customer problem that we were looking to solve. So one of our customers, they're already ingesting a large volume of data, but the need to retain the data for twice, then one of Peter and in today's architecture, what it required was them to kind of lean nearly scale on the amount of hardware. What we realized it. Sooner or later, all customers are going to run into this issue. But if they want in just more data or reading the data for longer periods, of time, they're going to run into this cost ceiling sooner or later on. The challenge is that into this architecture, today's distributes killer dark picture that we have today, which of all, about 10 years back, with the evolution of the Duke in this particular architecture, the computer and story Jacqui located. And because computer storage acqua located, it allows us to process large volumes of data. But if you look at the demand today, we can see that the demand for storage or placing the demand for computer So these are, too to directly opposite trans that we're seeing in the market space. If you need to basically provide performance at scale, there needs to be a better model. They need a better solution than what we had right now. So that's the reason we basically brought Smart store on denounced availability last September. What's Marceau brings to the table is that a D couples computer and storage, So now you can scale storage independent of computers, so if you need more storage or if you need to read in for longer periods of time, you can just kill independent on the storage and with level age, remote object stores like Bill Flash bid to provide that data depository. But most of your active data said still decides locally on the indexers. So what we did was basically broke the paradigm off computer storage location, and we had a small twist. He said that now the computer stories can be the couple, but you bring comfort and stories closer together only on demand. So that means that when you were running a radio, you know, we're running a search, and whenever the data is being looked for that only when we bring the data together. The other key thing that we do is we have an active data set way ensure that the smart store has ah, very powerful cash manager that allows that ensures that the active data set is always very similar to the time when your laptop, the night when your laptop has active data sets always in the cash always on memory. So very similar to that smarts for cash allows you to have active data set always locally on the index. Start your search performance is not impact. >> Yes, this problem of scaling compute and storage independently. You mentioned H. D. F s you saw it early on there. The hyper converged guys have been trying to solve this problem. Um, some of the database guys like snowflakes have solved it in the cloud. But if I understand correctly, you're doing this on Prem. >> So we're doing this board an on Prem as well as in Cloud. So this smart so feature is already available on tramp were also already using a host all off our spun cloud deployments as well. It's available for customers who want obviously deploy spunk on AWS as well. >> Okay, where do you guys fit in? So we >> fit in with customers anywhere from on the hate say this way. But on the small side, at the hundreds of terabytes up into the tens and hundreds of petabytes side. And that's really just kind of shows the pervasiveness of Splunk both through mid market, all the way up through the through the enterprise, every industry and every vertical. So where we come in relative to smart store is we were a coat co developer, a launch partner. And because our object offering Flash Blade is a high performance object store, we are a little bit different than the rest of the Splunk s story partner ecosystem who have invested in slow more of an archive mode of s tree right, we have always been designed and kind of betting on the future would be based on high performance, large scale object. And so we believe smart store is is a ah, perfect example, if you will, of a modern analytics platform. When you look at the architecture with smart store as brush here with you, you want to suffice a majority of your queries out of cash because the performance difference between reading out a cash that let's say, that's NAND based or envy. Emmy based or obtain, if you will. When you fall, you have to go read a data data out of the Objects store, right. You could have a significant performance. Trade off wean mix significantly minimized that performance drop because you're going to a very high bandwith flash blade. We've done comparison test with other other smart store search results have been published in other vendors, white papers and we show Flash blade. When we run the same benchmark is 80 times faster and so what you can now have without architecture is confidence that should you find yourself in a compliance or regulatory issue, something like Maybe GDP are where you've got 72 hours to notify everyone who's been impacted by a breach. Maybe you've got a cybersecurity case where the average time to find that you've been penetrated occurs 206 days after the event. And now you gotta go dig through your old data illegal discovery, you know, questions around, you know, customer purchases, purchases or credit card payments. Any time where you've got to go back in the history, we're gonna deliver those results and order of magnitude faster than any other object store in the market today. That translates from ours. Today's days, two weeks, and we think that falls into our advantage. Almost two >> orders of magnitude. >> Can this be Flash Player >> at 80%? Sorry, Katie. Time 80 x. Yes, that's what I heard. >> Do you display? Consider what flashlight is doing here. An accelerant of spunk, workloads and customer environment. >> Definitely, because the forward with the smart, strong cash way allow high performance at scale for data that's recites locally in the cash. But now, by using a high performance object store like your flash played. Customers can expect the same high performing board when data is in the cash as well as invented sin. Remorseful >> sparks it. Interesting animal. Um, yeah, you have a point before we >> subjects. Well, I don't want to cut you off. It's OK. So I would say commenting on the performance is just part of the equation when you look at that, UM, common operational activities that a splitting, not a storage team. But a Splunk team has to incur right patch management, whether it's at the Splunk software, maybe the operating system, like linen store windows, that spunk is running on, or any of the other components on side on that platform. Patch Management data Re balancing cause it's unequal. Equally distributed, um, hardware refreshes expansion of the cluster. Maybe you need more computer storage. Those operations in terms of time, whether on smart store versus the classic model, are anywhere from 100 to 1000 times faster with smart store so you could have a deployment that, for example, it takes you two weeks to upgrade all the notes, and it gets done in four hours when it's on Smart store. That is material in terms of your operational costs. >> So I was gonna say, Splunk, we've been watching Splunk for a long time. There's our 10th year of doing the Cube, not our 10th anniversary of our 10th year. I think it will be our ninth year of doing dot com. And so we've seen Splunk emerged very cool company like like pure hip hip vibe to it. And back in the day, we talked about big data. Splunk never used that term, really not widely in its marketing. But then when we started to talk about who's gonna own the big data, that space was a cloud era was gonna be mad. We came back. We said, It's gonna be spunk and that's what's happened. Spunk has become a workload, a variety of workloads that has now permeated the organization, started with log files and security kind of kind of cumbersome. But now it's like everywhere. So I wonder if you could talk to the sort of explosion of Splunk in the workloads and what kind of opportunity this provides for you guys. >> So a very good question here, Right? So what we have seen is that spunk has become the de facto platform for all of one structure data as customers start to realize the value of putting their trying to Splunk on the watch. Your spunk is that this is like a huge differentiate of us. Monk is the read only skim on reed which allows you to basically put all of the data without any structure and ask questions on the flight that allows you to kind of do investigations in real time, be more reactive. What's being proactive? We be more proactive. Was being reactive scaleable platform the skills of large data volumes, highly available platform. All of that are the reason why you're seeing an increase that option. We see the same thing with all other customers as well. They start off with one data source with one use case and then very soon they realize the power of Splunk and they start to add additional use cases in just more and more data sources. >> But this no >> scheme on writer you call scheme on Reed has been so problematic for so many big data practitioners because it just became the state of swamp. >> That didn't >> happen with Splunk. Was that because you had very defined use cases obviously security being one or was it with their architectural considerations as well? >> They just architecture, consideration for security and 90 with the initial use cases, with the fact that the scheme on Reid basically gives open subject possibilities for you. Because there's no structure to the data, you can ask questions on the fly on. You can use that to investigate, to troubleshoot and allies and take remedial actions on what's happening. And now, with our new acquisitions, we have added additional capabilities where we can talk, orchestrate the whole Anto and flow with Phantom, right? So a lot of these acquisitions also helping unable the market. >> So we've been talking about TAM expansion all week. We definitely hit it with Charlie pretty hard. I have. You know, I think it's a really important topic. One of things we haven't hit on is tam expansion through partnerships and that flywheel effect. So how do you see the partners ship with Splunk Just in terms of supporting that tam expansion the next 10 years? >> So, uh, analytics, particularly log and Alex have really taken off for us in the last year. As we put more focus on it, we want to double down on our investments as we go through the end of this year and in the next year with with a focus on Splunk um, a zealous other alliances. We think we are in a unique position because the rollout of smart store right customers are always on a different scale in terms of when they want to adopt a new architecture right. It is a significant decision that they have to make. And so we believe between the combination of flash array for the hot tear and flash played for the cold is a nice way for customers with classic Splunk architecture to modernize their platform. Leverage the benefits of data reduction to drive down some of the cost leverage. The benefits of Flash to increase the rate at which they can ask questions and get answers is a nice stepping stone. And when customers are ready because Flash Blade is one of the few storage platforms in the market at this scale out band with optimized for both NFS and object, they can go through a rolling nondestructive upgrade to smart store, have you no investment protection, and if they can't repurpose that flash rate, they can use peers of service to have the flesh raise the hot today and drop it back off just when they're done within tomorrow. >> And what about C for, you know, big workloads, like like big data workloads. I mean, is that a good fit here? You really need to be more performance oriented. >> So flash Blade is is high bandwith optimization, which really is designed for workload. Like Splunk. Where when you have to do a sparse search, right, we'll find that needle in the haystack question, right? Were you breached? Where were you? Briefed. How were you breached? Go read as much data as possible. You've gotta in just all that data, back to the service as fast as you can. And with beast Cloud blocked, Teresi is really optimized it a tear to form of NAND for that secondary. Maybe transactional data base or virtual machines. >> All right, I want more, and then I'm gonna shut up sick. The signal FX acquisition was very interesting to me for a lot of reasons. One was the cloud. The SAS portion of Splunk was late to that game, but now you're sort of making that transition. You saw Tableau you saw Adobe like rip the band Aid Off and it was somewhat painful. But spunk is it. So I wonder. Any advice that you spend Splunk would have toe von as pure as they make that transition to that sass model. >> So I think definitely, I think it's going to be a challenging one, but I think it's a much needed one in there in the environment that we are in. The key thing is to always because two more focus and I'm sure that you're already our customer focus. But the key is key thing is to make sure that any service is up all the time on make sure that you can provide that up time, which is going to be crucial for beating your customers. Elise. >> That's good. That's good guidance. >> You >> just wanted to cover that for you favor of keeping you date. >> So you gave us some of those really impressive stats In terms of performance. >> They're almost too good to be true. >> Well, what's customer feedback? Let's talk about the real world when you're talking to customers about those numbers. What's the reaction? >> So I don't wanna speak for Broth, so I will say in our engagements within their customer base, while we here, particularly from customers of scale. So the larger the environment, the more aggressive they are to say they will adopt smart store right and on a more aggressive scale than the smaller environments. And it's because the benefits of operating and maintaining the indexer cluster are are so great that they'll actually turn to the stores team and say, This is the new architecture I want. This is a new storage platform and again. So when we're talking about patch management, cluster expansion Harbor Refresh. I mean, you're talking for a large sum. Large installs weeks, not two or 3 10 weeks, 12 weeks on end so it can be. You can reduce that down to a couple of days. It changes your your operational paradigm, your staffing. And so it has got high impact. >> So one of the message that we're hearing from customers is that it's far so they get a significant reduction in the infrastructure spent it almost dropped by 2/3. That's really significant file off our large customers for spending a ton of money on infrastructure, so just dropping that by 2/3 is a significant driver to kind of move too smart. Store this in addition to all the other benefits that get smart store with operational simplicity and the ability that it provides. You >> also have customers because of smart store. They can now actually bursts on demand. And so >> you can think of this and kind of two paradigms, right. Instead of >> having to try to avoid some of the operational pain, right, pre purchase and pre provisional large infrastructure and hope you fill it up. They could do it more of a right sides and kind of grow in increments on demand, whether it's storage or compute. That's something that's net new with smart store um, they can also, if they have ah, significant event occur. They can fire up additional indexer notes and search clusters that can either be bare metal v ems or containers. Right Try to, you know, push the flash, too. It's Max. Once they found the answers that they need gotten through. Whatever the urgent issues, they just deep provisionals assets on demand and return back down to a steady state. So it's very flexible, you know, kind of cloud native, agile platform >> on several guys. I wish we had more time. But thank you so much fun. And Deron, for joining David me on the Cube today and sharing all of the innovation that continues to come from this partnership. >> Great to see you appreciate it >> for Dave Volante. I'm Lisa Martin, and you're watching the Cube?

>> Announcer: From Austin, Texas, it's theCUBE, covering Pure Storage Accelerate 2019, brought to you by Pure Storage. (air whooshes) >> Welcome to theCUBE's day two coverage of Pure Accelerate 2019 from Austin, Texas. I am Lisa Martin, Dave Vellante is my co-host, and we're pleased to welcome back to theCUBE, here is VP of Strategy Matt Kixmoeller. Kix, welcome back! >> Thank you very much, happy to be here. >> This has been a, being shot out of a cannon. Yesterday and today, lots of news. First of all, happy 10th anniversary to you and Pure. >> Thank you very much, yeah. >> Tremendous amount of innovation, as Tara Lee said yesterday, overnight in 10 years. (laughs) >> It's a really fun time at Pure. Just something about the nostalgia of 10 years gets people, naturally, to start thinking about what the next 10 years are about. And so, there's just a lot of that spirit right now at the company, so it's almost like people are really charging into the second chapter with a lot of energy, so that's cool. >> A lot of energy, I think, all fueled by this massive sea of orange that has descended on Austin. >> Absolutely. >> So, four announcements yesterday. Let's start with Cloud Block Store, what you guys are doing with AWS, and kind of this vision of Pure's cloud strategy. >> Yeah, look, the cloud discussions I've had with customers here at the show have been awesome. And I think more than anything, people have realized that we've really built something very unique with Cloud Block Store, something that doesn't exist anywhere else in the industry right now. And, you know, if you look at kind of other storage vendors over the time, people have certainly taken their storage OSes and put them in the cloud kind of as a test-dev experiment, a way to try things out, but never really thinking, "I want to build something "that runs tier-one applications." And that was our goal from day one. We looked at the Amazon platform and said, they really built EBS, their block offering, as kind of a way to beat boot VMs, but it was really never meant for a way to run mission-critical applications. So they've been very open in partnering with us to say, look, let's bring this capability onto the platform. And we really rearchitected our Purity Operating Environment, and so, the whole lower half of that is really optimized for the AWS services to help customers move tier-one apps to the cloud. >> Was that joint engineering, or was it really mostly Pure doing that work? >> You know, it was Pure engineering in the sense that we wrote the code, but there was a lot of co-architecture work with AWS so we could fundamentally understand the basics of all of their services and how to optimize for it. And one of the big realizations and choices that came out of that was not to base the storage layer of this on EBS, but instead to base it on S3. And if you look at your average cloud customer, they really use S3 as the storage basis for the apps they build on Amazon, and so, S3 is the 11-nines durable storage platform there. And so our whole goal here was, how do you use S3, but still deliver the level of performance you'd expect out of a tier-one block environment? >> Well, when you read the sort of cloud storage press release du jour, you can't really get into the nuance, but if I understand it correctly, you guys essentially have architected, using AWS services, a new class of block storage that runs on AWS, but looks like Pure. >> That's exactly it. >> So you're essentially front-ending cheap S3 storage with high-priority EC2s, you've got some mirroring for rights to give it high availability, and again, it looks like Pure. >> Kix: Yep. >> So you win, 'cause you're making money on the software, (laughs) AWS is selling services, and the customer has a Pure experience. Did we get that right? >> Yeah, and I think the combination, the one-two punch, that's been very interesting for customers is not only what we're doing with Cloud Block Store, but the new Pure as-a-Service offering. And so, Pure as-a-Service is our as-a-service consumption mechanism that allows you to essentially subscribe to or rent Pure arrays from Pure in your data center, but it's a license that can go between on-prem and cloud. And so, imagine you're a customer that is mostly on-prem today, but you have that mandate, "I've got to get to the cloud." You might need more storage, but the last thing you want to do is commit to another three- or five-year purchase of a storage array that just puts off that cloud journey that much longer. So a customer can subscribe to Pure as-a-Service, they'll maybe subscribe to 100 terabytes, and we put an array in their data center right now, but a year from now, they decide they're going to move 50 terabytes to Cloud Block Store in Amazon, that's just a transparent movement, they're already licensed for it. And so that-- >> And there's already, oh, sorry, sorry. >> Kix: No, go ahead. >> There's already customers that are in beta with Cloud Block Store, is that correct? >> Correct, yeah. >> Lisa: Any interesting insights that you can share without giving away secret sauce? >> Oh, absolutely. You know, I think the thing that pleased us the most about the beta was really the divergence of use cases. You know, we created this, but there's always, you create something, and you don't know what people are going to do with it, right? And so, we have this goal of going after tier-one apps. Obviously, there's a lot of people that are just focused on migration, "How do I get the tier-one app from on-prem to cloud?" And so that was what I would say would be the dominant use case. But there were a lot of interested in test-dev type use cases. And really interesting, I think we saw it in both directions. So we saw some customers who wanted to develop their app in the cloud, but then deploy on-prem. We saw the opposite, we saw people that wanted to develop on-prem but then deploy in the scalable infrastructure in the cloud. And so I thought that was quite interesting. >> How much of the impetus to do that offering was hardcore customer demand, "We need this," versus, "Hey, we need to embrace the cloud "and make it a tailwind and not be defensive about it"? >> You know, I think when we looked at what was going to be the buy-in criteria for the storage array of tomorrow, fundamentally, this is it, right? People want on-prem infrastructure that's connected to the cloud and provides them a roadmap or a bridge to the cloud. And I think we've seen a big change in mindset over even the last couple years. I'd say two or three years ago, the mindset from customers was, "I'm all in on cloud." I think we've seen that soften, where they've realized that the cloud is not a panacea, it's usually actually not cheaper or faster, but it is more agile, it is more flexible, and so, a combination of on-prem and cloud is the right answer. And so, what does that mean from a storage platform? Storage is the hard part. And so, I then need a storage architecture that can support both on-prem and cloud and drive commonality, as opposed to having it be totally different architecture. >> Was Outposts at all a catalyst in your thinking on this, or was this happening way before you even saw that? >> No, we started this effort before that, but I think Outposts is a good example, I believe, of how Amazon is just getting serious about saying, look, we can't ask everybody to rearchitect every application for web scale. There are certain apps that it won't make sense to rearchitect. How do we bring those to the cloud in an efficient way? And those are really the types of applications and the first-generation Cloud Block Store is perfect for. You connect your existing on-prem app, move it to the cloud without changing it, and then maybe slowly you rearchitect parts of the application, you evolve it over time, but that's not a gate to going to the cloud anymore. >> I like the way you said it, you thought about what storage is going to look like in the next 10 years. And we've said this a lot, it's the cloud experience, bringing that cloud experience to your data is what storage is going to look like, you know, wherever it lives, is going to look like in the next 10 years. >> Absolutely, and I think the other real mindset shift I think we've seen is how people are thinking about truly running their on-prem environment more like a service. You know, if you look at, the key message that we had at the show here was really the Modern Data Experience, and defining for customers what that meant. And in a lot of ways, I've been in the storage industry for a little while, I think back, 20 years ago, the buzzword was utility storage. I think one of our competitors had that as their slogan sometime in the '90s. >> Yeah, right. >> And the reality, though, is when you talk to most storage teams, they just never did that. They still ran a bunch of arrays on a project-by-project basis, and it didn't look at all like the cloud. And so, now people have learned the lessons from the public cloud and said, "We really need to apply those on-prem "to truly bring our infrastructure together "into much more of a virtual pool, "truly deliver it on demand, abstract consumption "from the back-end infrastructure to give flexibility." And so, that's really what we're trying to deliver with the Modern Storage Experience, is to say, look, let's get out of the world of array-by-array management. If a customer buys 50 or 100 of our arrays, how do they take that pool of arrays and turn it into a block service, turn it into a file service, turn it into an object service for their customers, with real abstractions and real APIs for those services that have nothing to do with the back-end infrastructure? >> Dave: Mm-hm. >> When Charlie talked yesterday, Kix, about the Modern Data Experience, the three S's pop up. >> Kix: Yeah. (clears throat) >> Simple, seamless, sustainable. But as IT is getting more and more complex, and customers are in a multi-cloud environment, not necessarily from a strategic perspective, right, acquisition, et cetera, how does Pure actually take that word, simple, from a marketing concept into reality for your customers? >> Yeah, you know, I think simple is the most underappreciated but biggest differentiator (coughs) that Pure has. I was recalling for someone, you talked to Coz earlier today. I had a conversation about three weeks into the existence of Pure, (coughs) excuse me, with Coz, and we were just debating, I mean, this is before we wrote any code at all, about, what would be Pure's long-term differentiator? And I was kind of like, "Ah, we'll be the flash people, or high-performance, or whatever," and he's like, "No, no, no, we're going to be simple. "We are going to deliver a culture that drives "simplicity into our products, "and that'll be game-changing." And I thought he was a little crazy at the time, but he's absolutely turned out to be right. And if you look over the years, that started with just an appliance experience, a 10-card install, just a really easy environment. But that's manifested itself into every product we create. And it's really hard to reverse-engineer that. It's an engineering discipline thing that you have to build into the DNA of the company. >> Yeah, he kind of shared that with us, Lisa. He was basically, my words, saying, you don't ever want to suboptimize simple to get a little knob turn on performance, because you'll be turning knobs your entire career. There's a lot of storage arrays out there that, it's all about turning the knobs. >> Kix: Yeah, well-- >> If you can't fix it, you feature it. >> Oh, and if you think about really trying to automate something, it's really hard to automate complex stuff. If something's simple, if it's consistent, it plugs into an automation framework. >> You talked about "get your 10X"-- >> Kix: Yeah. >> I think, is that what you said? And an entrepreneur who was very successful once told me, "I look for two things, a large market and a 10X impact." >> Yep. >> So, what is your 10X? >> You know, we have two 10Xs at the show this year. So first was really kind of a 10-year jump in performance. When we first entered, people were used to 10-millisecond latency from disk, and we introduced them to one-millisecond latency. Now, with the shipping in direct memory and bringing SCM into the architecture, we can do 100 microseconds. That's another 10X. And so, it's hard to ignore that. >> Lisa: That's game-changing, as you said yesterday. >> (coughs) Exactly. The other is really around our next product, FlashArray C, which brings flash to tier-two data. And there, it's all about consolidation. Most people have not used flash to fix tier one, but their biggest problem now is tier two. They have less-important applications, but because they haven't optimized that, it's taking up way too much of IT time. And so, FlashArray C is, "How do I go "and basically consolidate 10X consolidation "at that tier-two level to really bring "sanity to tier-two storage?" >> And you've got NAM pricing, we talked to Charlie about this, that it ultimately should be a tailwind for you guys as NAM pricing comes down, as NOR fab capacity's coming online in China to go after the thumb drives, right, so that's going to leave the enterprise for all the traditional flash guys that we know and love. So that should open up new markets for you. Today, if you look at pricing for flash C class storage, if I got it right, I'm guessing $1, $1.50 a gigabyte. You see hybrid still at probably half that, 65, 70 cents. Do you see that compressing over the next, let's call it 18, 24 months? >> Absolutely, I mean, what we can do with this product is really bring out flash at disk prices. And so, if you think about the difference, I mean, what we now have in the product line is two platforms, FlashArray X, optimized for performance, at hundreds of microseconds of latency, but C, at a little bit slower performance, still in the millisecond range, can really get down now to those disk prices you just mentioned. And so, it fundamentally gives customers the chance to ask, "Can I really now eliminate disk from the data center?" You know, as I said in my keynote, that the slogan from Pure from day one has been "the all-flash data center." And 10 years ago, people didn't believe it. We were maybe leaning over our skis a little bit in doing that. It now really feels possible to go and have the all-flash data center. >> Well, I'll tell you, we believed it. David Floyer picked up on it early on, and he was-- >> Kix: Yeah. >> He was actually probably too aggressive with (laughs) his forecast. We missed the NAND supply constraints. >> Kix: Yeah. >> But now that seems to be loosening up. >> Well, and, look, one of the things that really helps us build the perfect product around QLC is the work we've done to integrate with raw flash. We cannot just use QLC, but we can use it really efficiently, and the challenge there is to make it reliable. It's inherently a less-reliable flash. And so, that's what we're good at, taking things that are less reliable and making them enterprise-grade. >> And your custom flash modules allow that? >> Yeah. >> Can you add some color to that? >> Basically, what we do is we source raw NANDs, put it in our system, but then do all the work in software to manage the flash. And so, when you have a less-reliable flash medium like QLC, generally, what you have to do is add more flash to overprovision and be careful writing to it. And so, when do it globally, we don't do it inside every SSD, we can do it across the whole system, which makes the whole thing more efficient, thus allowing us to drive costs down even more. >> Hm. >> One of the things that we have heard over the last day and a half from customers, even those that were onstage yesterday, those that were on theCUBE yesterday and those that will come on today, is, they talk about the customer experience. They don't talk about FlashBlade, FlashArray, they're not talking about product names. They're talking about maybe workloads that they're running on there. But the interesting thing is, when we go to some other shows, you hear a lot of names of boxes. >> Kix: Yep. >> We haven't heard that. Talk to me a little bit about how Pure has evolved and really maybe even created this customer experience that's focused on simplicity, on outcomes, that is, in your perspective, why people aren't talking about the specific technologies-- >> Kix: Yeah. >> But rather, this single pane of glass that they have. >> Look, when we started the company, I obviously talked to a lot of customers, and I found, in general, there was frustration with products, but they also just generally didn't like their storage company. And so, from day one, we said, how do we reinvent the experience? Of course, we have to build a better product, and we can use flash as kind of an excuse to do that, but we also want to work on the business model of storage, and we also want to work on the customer experience, the support experience, the just 360 view of how you deal with a vendor. And so, from day one, we've been very disciplined about all of that. Going all-flash was a key part of the product. Evergreen has probably been our quintessential investment in just, how do you change that buying cycle? And so, you can buy into an experience and nondisrupt the way they evolve, versus replace your storage array every three to five years. And then, I think the overall customer experience just comes from the culture of the company, right? Everybody at Pure is centered on making customers happy, doing the right thing, being a vendor that you actually want to work with. And that's not something you can really legislate, that's not something you can put rules around, it's just the culture at Pure. >> When we talked about Evergreen yesterday with a number of customers, including Formula 1. I said, "You know, as a marketer, "how much of that nondisruptive operations, "take me from marketing to reality," and all of them articulated the exact value prop that you guys talk about. It was really remarkable. And another customer that we talked to, I think from a legal firm here in the U.S., didn't even do a POC, talked to a peer of his at another company that was a Pure fan-- >> Kix: Yep. >> And (snaps fingers) bought it right on the spot. So the validation that you're getting from the voice of the customer is pretty remarkable. >> Yeah, this is our number one asset, right? And I mean, so when we think about, how do we spread the religion of Pure, it's just all about giving voice to our customers, so they can share their stories. 'Cause that's so much more credible than anything we say, obviously, as a vendor. >> You're one of only two billion-dollar independent storage companies, which, we love independent storage companies, 'cause, you know, the competition's great. How far out do you look and do you think about being an independent storage company? You've seen, as a "somewhat" historian of the industry, you've seen TAM expansion, you guys are working hard on TAM expansion now, new workloads. You got backup stuff goin' on. You got the cloud as an opportunity, multi-cloud as an opportunity. So you got some runway there. >> Yeah. >> Beyond that, you've seen companies try to vertically integrate, buy backup software companies, you know, a converged infrastructure, whatever it is. How far out do you think about it from a business model standpoint? Or do you not worry about that? >> You know, look, to put it in context a little bit, you look at the latest IDC numbers, we're maybe one-third in to the transition to flash, right? The world still buys two-thirds disk, one-third flash. That's a huge opportunity. We're now five or six globally in storage. That's a few spots that we have to go, right? And so, we're not at all market-share limited, or opportunity limited, even within the storage industry, so we could make a much, much larger company. And so, that's mission number one at Pure. But when we think beyond that, that's just a launching point. And so, you've seen us do some stuff here at the show where we're getting into different types of storage. The first obvious expansion is, let's make sure anything that is a storage product comes from Pure, and there's obvious categories we don't play in today. You saw us introduce a new product around VM Analytics Pro, where we're reaching up the stack and adding real value at the VM tier, taking our Meta AI technology and using to give VM-level optimization recommendations. And so, yeah, I think we increasingly understand that IT's a full-stack game, and so storage is maybe the hardest part of the stack, and that gives us a great base to work from, but we don't constrain our engineers to say, you can only solve storage problems. >> Geography's another upside for you. I mean, most of your business, the vast majority of your business, is in the U.S., whereas you take a company like some of these other ones around here, more than half their business is outside the U.S, so. >> Yeah, no, our international businesses, we've been international five or six years now, and it felt like the first couple years are investment years, and it took time. But we're really starting to see them grow and take hold, and so, it's great to see the international business grow. And I think Pure as a company is also learning to really think internationally, not just because we want the opportunity, but the largest customers in the world that we now deal with have international operations, and they want to deal with one Pure globally. >> So when you're talking, and maybe this has even happened the last day and a half, with a prospective customer who is still investing a lot on-prem, still not yet gone the route of flash, as you were saying, those numbers speak for themselves. What do you say to them? >> If they're not on flash yet? >> Lisa: Yeah, yeah, to show them the benefits. I mean, what's that conversation like? >> It's rare, to be honest, now to find customers who haven't started with flash. But I think the biggest thing I try to encourage folks is that flash is not just about performance. And when I look at the history of people who have embraced Pure, they usually start with some performance need, but very quickly, they realize it's all about simplicity, it's all about efficiency. And if they can make storage fundamentally simpler and more efficient, they free up dollars to put towards innovation. And we unlock the ability to drive dollars towards innovation, and then we drive storage to the new innovation projects, like analytics, like AI, et cetera. And so, we just try to talk about that broader opportunity. And I think that's the hardest thing for people to grasp, because the IT history has always been lots of ROI pitches that say, "Hey, this thing costs a lot, but trust me, "you'll make it up in all these other benefits," that no one believes. And so, you just have to get them to taste it to begin with, and when they see it for themselves, that's when it clicks and they start to really understand the ROI around that. >> Well, congratulations on 10 years of Pure unlocking innovation, not just internally, but externally across the globe. We appreciate your time, Kix. >> Thank you, we're looking forward to the next 10 years. >> All right, to the next 10! For Dave Vellante, I'm Lisa Martin. You're watching theCUBE from Pure Accelerate 2019. (upbeat music)

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Hi, Lisa Martin with the Cube. Dave Ilan Taste. My co host were at pure Accelerate 2019 in Austin, Texas. One of our Cube alumni is back with us. We have probably the VP and chief architect at Pier Storage. Rob. Welcome back. >> Thanks for having. >> We're glad you have a voice. We know how challenging these events are with about 3000 partners, customers press everybody wanting to talk to one of the men that was on the keynote stage yesterday for announcements came out really enjoyed yesterday's keynote. But let's talk about one of those announcements in particular Piers Bridge to the hybrid cloud. >> Absolutely, absolutely. Yeah. No, I mean, I think it's been a really exciting conference for us so far. Like you said, a lot of payload coming out, you know, as faras the building, the bridge of the hybrid cloud. This has been, you know, this has been I would say a long time coming, right? We've been working down this path for for a couple of years. We started by bringing some of the cloud like capabilities that customers really wanted and were able to achieve into the cloud back into the data center. Right. So you saw us do this in terms of making our own prem products easier to manage, easier to use, easier to automate, you know. But what? Working with customers of the last couple of years, you know, we realized, is that, uh as the cloud hype kind of subsided and people were taking a more measured view of where the cloud fits into their strategies, what tools it brings. You know, we realized that we could add value in the public cloud environment, the same types of enterprise capabilities, the same type of features rich data service is feature sets things like that that we do on premise in the cloud. And so what we're looking to achieve is actually quite simple, all right. We want to give customers the choice whether whether customers want to run on premise or in the cloud. That's just a choice of we wanted. We wanted to make an environmental choice. We don't want it. We don't wanna put customers in a position where they have to make that choice and feel trapped in one location another because of lack of features, lack of capabilities. You know, our economics on DSO the way that we do that is by building the same types of capabilities that we do on Prem in the cloud giving customers the freedom and flexibility to be agile. >> But, you know, you mentioned economics and you were talking from a customer standpoint. I wanna flip it from a from a technology supplier standpoint, the economics of a vendor who traditionally cells on Prem. You would think would be better than one in the cloud. Because you gotta you pay an Amazon for all their service is or I guess, the customers paying for it. But you kind of saw your way through that. A lot of companies would be defensive on. I wonder if you could add any comment. Yeah. No, I mean so So, look, I think >> the >> hardware is only one piece of it, right? At the end of the day, you know, even our products on Prem are really they're really priced for value. Right? There were delivering value to customers in our capabilities are ease of use or simplicity. The types of applications and work close to being able. Um, and basically, everything I just said is pretty much driven by software features by bringing those same capabilities into the cloud, you know, naturally, we you know, naturally that most of that work is really in software, you know, And then, as faras comparing the economics directly of on Prem versus Cloud. You know, it's it's really no secret as the industry's gotten Maur. Understanding that, you know the cloud isn't isn't the low cost option in a lot of use cases, right? And so, rather than comparing apples to apples on premises cloud either on performance or economics, our goal is really to build the best products in either environment. So if a customer wants to run on Prem wanna build the best darn products in that environment, the customer wants to run in the public cloud. We want to build the best darn product for them in that environment on dhe. Increasingly, as customers want Thio use, both environments hand in hand, want to build the right capabilities to allow them. TOC mostly do that >> Well, I think it makes sense because, as you know, we're talking to some customers. Last night he asking what they have in their data center. And they got a lot of stuff in the data center. To the extent that a company like pure can say, OK, you've got simple, fast et cetera on prim. And we've now extended that to the cloud. Your choice. They're going to spend Maur with you than they are with the guys that fight that. >> Yeah, absolutely. And, you know, I think if you look at our approach and how we've built the products and how were, you know, taking them to market? We've taken a very different approach than some of the competitive set. You know, in some ways, we've really just extended the same way that we think about innovation and product engineering from our existing on prime portfolio into the cloud, which is we look for heart problems to solve way take the hard road, we build differentiated products. Even if it takes us a little bit longer, you can see that, you know, in the product offerings, right? We've really focused on enabling tier one mission critical applications. If you look at the competitive, said they haven't started their their reason why we did that. All right, is we knew that you know, we had customers telling us, like if if you're a customer and you want to use the cloud and you want to think about the cloud is a D R site well, when something goes wrong and you two fell over duty, our site, you you need to be sure that it works exactly the same way there as it did on problem. That's everything from data service is data path features to all of the work flows. An orchestration to go around it because when your primary site goes down is not the time when you want to be discovering that. Oh, there's a footnote on that future and it's that's not supported in the cloud version, that sort of thing on dso you know that, Like I said, you know, the focus that we've put on the product development we've done towards Cloud Block stores really been around creating the same level of enterprise grade features on enabling those applications in the cloud as we do in private. >> You know, we don't make the Amazon storage. We make the Amazon storage better. What's that commercial? Essentially what? That's essentially >> what we've done You know, the great thing about that is that we've done it in close partnership with Amazon, right? You know, we had Amazon on stage yesterday on day, were talking a little bit about that partnership process. And ultimately, I think why that partnership has been so successful is we're both ultimately driven by the same thing, which is customer success. All right. In the early days of working with Amazon as we started coming up with the concept of club block store and consulting them on, we're thinking about building it this way. What do you think? What service is should be, You know, should we leverage and m in eight of us to make this happen? It became pretty clear to them that we were setting out to build a differentiated product and not just tick off check boxes on dhe. That's when they their eyes really okay, way. We really would like you to do a differentiated product here. >> Hey, if this takes off, we're gonna sell all the C two at three. >> What are some of the things Sorry day that you've been with here about six years? What are some of the things that have surprised you pleasantly that the customers have catalysed from an architecture perspective that customer feedback coming back t your team and the and the guys and girls engineering the product. Customers are demanding a certain thing that maybe wasn't something that was an internal idea but really was catalyzed by customers anything that just really I think it's very cool. Very surprising. >> Yeah. No, I mean, I think I think a >> couple of things. I think personally one of the things that surprised me was, you know, when I joined Pure in 2013 you know, we're all we're all about simplicity, right? You talk to cause who I think you had on the show earlier. You know, in the early days who tell you our differentiators gonna be simplicity and I got to say when I first joined the company is a little skeptical is like All right, I get it. Simplicity is a thing. Is it really a differentiator? I very quickly was surprised based on customer feedback that no, it really is very, very meaningful on. And that's something that we take all the way through Engineering. Write everything down, Thio how we design features and put them in the user interfaces. If there's, you know, there's an engineer that wants to put a configuration hook or a knob or ah on option in the user interface way kind of stop and say, Well, G, how would you document that? How would you suggest the user make a decision? Tea set that value will describe and say, Okay, well, g, we can make that decision, can't we? Right? Like, why don't we just want we just make it simpler And so that's been That's been a big surprise, I think, from a customer catalyzed, uh, point of view. What I'd say is we've been really surprised at a lot of the use cases that the flash blade product has been put into play for. And, you know, I think a I was one of them when we when we first set out, we had really targeted Flash played at addressing a segment of the commercial HPC Chip Design Hardware Design software development market. Andi is actually a set of customers, very large Web property customer that came to us with an A I use case. They said, Hey, you know, we've got a ton of data video images, uh, text postings. And we want to do a lot of analysis of this. All right, I want to do a facial recognition. We want to do content and sentiment analysis. We've got the Jeep use. We think you guys have the right storage product for that, and that's really that's really taken off. And that was very much a customer driven area. We >> talked a little bit about that within video yesterday. About some of the customer catalyzed innovation where a is concerned. >> Absolutely. What do you see is the critical technical skills that pure needs in the next decade. I mean, you're five. Correct? Remember, you can't have a networking background. Internal networking, I guess of you got guys from Veritas, right? Obviously strong software file system. What do you What do you see is the critical skill. Yeah, that's >> a good question. You know, we have a very diverse team, all right? We we in engineering typically higher and look for people with strong systems, backgrounds that are willing to learn and want to solve her problems. We, you know, typically haven't hired very specific domain areas myself, my doctor, and is in language run times and compilers, Oh, distributed systems so a bit all over the map, You know, What I'd say is that the first phase of pure the first kind of decade was really about reinventing the storage experience on for me. I look at it as taking lessons from the consumer experience, bringing him into the storage on Enterprise World. Three iPhones, example. That's used a lot. There's a couple of examples you can think of. I think the next phase of what we're trying to do and you heard Charlie talk about this on stage with a modern date experience is take some lessons from the cloud experience and bring them into the enterprise. Right? So the first phase is about consumer simplicity for a human think the next phase is really about bring in some more of the cloud experience for enabling automation and dev ops and management orchestration. >> So what kind of work? A long, long, lot of work to do to get we envisioned this massively scalable distributed system where you have that cloud experience no matter where your data lives, that's not there today, Um, and you don't want to ship your date around, it'd be too much data. So you're on a ship metadata and have the intelligence tow. Bring the compute to that. That data. >> What do you >> got to do? What's the work that you have to do to actually make that seamless? That there's that over word overuse word again. It's not seamless today. Yeah, >> so? So, look, I mean, I think there's there's a lot of angles to it right on. And we're gonna We're gonna work our way there to your point. You know, it's not there today, but, you know, you're you're starting to see us lay the groundwork with all the announcements that came out today, right under the umbrella of Hey, we want to end up creating more portable, more seamless, more agile experience for customers. You can see where, as we bring Maur storage media's into play different classes of service, different balances of performance and cost, bringing those together in a way so that an application can use them income in the right combinations, you know, bring a I into play to help customers do that seamlessly and transparently eyes a big part of it. You can see multiple location kind of agility that we're bringing into play with Claude Block >> store >> enabled, like loud snap and snap shot mobility. Things like that on Dhe. Then you know, I think, as we move beyond the block world and way look att, what we can able with applications that sit on top of file on object protocols. There's a lot of, ah, a lot of greenfield there, right? So you know, we think object storage is very attractive, and we're starting to see that as the application vendors, right, as the applications that sit on top of the storage layer are really embracing object storage as the cloud native storage interface, if you will, that's creating a lot of, ah, a lot of, uh, you know, a lot of ways to share data, right? We're starting to see it, even within the data center, where multiple applications now are able to share data because object storage is being used. And so, like I said, there's a lot of angles to this right. There's there's bringing multiple discreet A raise together under the same management plane. There's bringing multiple different types of storage media a little bit closer together from a seamless application mobility perspective. There's bring multiple locations, data centers, clouds together from a migration a d R perspective. And then there's, you know, there's bringing a global name space type of capability to the table, so it's a long journey. But you know, we think it's the right one. And you know what we ultimately want to do is, you know, have customers be able to think about, be ableto provisioned, be able to manage to not just an array, but really more of like an A Z, right. I want a pool. I want it to be about a fast. But you know, I'm willing to pay about yea much for it, and I need this types of data protection policies for it. Please make it happen >> and anywhere do you So you see, it is technically feasible to be able to run any app, any workload on any cloud or on Prem without having a re compile the application, make changes to the application. That's what I really kind of meant by Seamus that you see that as technically feasible in the next called 5 to 10 years, I'll give you I think >> I think it'll take a long wait a long time we'll get there. And I think, you know, I think it'll depend on the application. All right. I think there are gonna be some combinations that look. I mean, if if you have a high, high frequency, low latent see trading database, there's physical limitations, you're not going to run the application here and put the storage in the cloud. But if we if we step back from it, right, the concept, Yeah. I mean, I think that a lot of a lot of things are becoming possible to make this happen, right? Fastener networking is everywhere. It's getting faster application architectures and making it more feasible. You know, the media costs and what we're able to drive out of the media are bringing a lot a lot more than work leads to flash A eyes is coming into play. So, like I said, it's gonna be different on the on the application. But, you know, I think we're entering a phase where, you know, the modern software developer doesn't wanna have to think too hard about where is you know where physically what six sides of sheet metal is. My dad is sitting on. They want to think about what I need from it. What do we need from in terms of capacity, what we need from it in terms of performance, what we need from it in terms of data service capabilities. All right, ends, you know, And I need to be able to control that elastic Lee. I need to be able to control that through my application through software, and that's kind of what we're building towards. >> Last question, Rob, as we wrap up here, feedback that you've heard the last day and 1/2 on some of the news that came out yesterday from customers, analysts, partners. >> Yeah, you know, I'd say if I were to net it out. I think the one piece of you, Doc, we've gotten this. Wow, you guys have a lot of stuff on. It's really nice to see you guys talking about stuff. It's available today, right? That >> that's a >> lot of eyes on that screen. And, you know, I think I had a KN analysts say to me, You know, this is it's really refreshing. Thio kind of See you guys take a both you know, the viewpoint of the customer. What you're delivering the customer, what you're enabling on then be, You know, I got a lot of tech conferences and I hear a lot about, like, way off in the future. Envisioned Andi feedback we got was you guys had a really good balance of reality today. What, You're helping customers today? What's available today to do that? And enough of the hay. And here's where we're headed. So >> we actually heard the same thing. So good stuff, right? Well, congrats on the 10th anniversary, and we appreciate you joining us on the Cube. We look forward to next year already in whatever city. You're gonna take us to >> two. Thanks a lot. >> All right. For day, Volante. I'm Lisa Martin. You're watching the Cube. Thanks for watching.

>> from Austin, Texas. It's Theo Cube, covering pure storage. Accelerate 2019. Brought to you by pure storage. >> Welcome back to the Cube, The leader and live tech coverage. I'm Lisa Martin with David Dante. We got a pretty cool guests coming up next, guys, you may have seen him here on the Q before. He has back Matt Harris, the head of I T for Mercedes AMG, Petronas Motor Sport. Matt, Welcome back. >> Often a >> way got the car over there with excitement. One of the coolest sports I've ever become involved with. Formula One is this incredible mix of technology strategy. All these crazy things you guys that Mercedes have been partners, customers a cure for about what? 45 years? >> 2015. As a customer, we became partners in 2016. >> I wonder if they like to save Mercedes AMG Petunias Motor Sport has had five consecutive years of both constructors championships driver's championships. You're a great position on both for 2019. It was a little bit of a history about the product that you put out on truck every other week and how pure storage is a facilitator of that. >> Yeah, okay, so it's an interest in a story for those that are interested in Formula One, because what you see on the track looks the same. But realistically, every time he goes out, the guarantee will be different. That level of difference could be a simple wing change or configuration, always based on data that we're learning from during a race again. But every week we also have a different car dependent on the track we're going to. So we have two different worlds that basically were to rate on a minute by minute, hour by hour and day by day at the track. But in the factory, that could be the same sort of it oration. But it could also be into weekly or monthly or year for a car. So all of that is based on data. So everything we do is that businesses revolves around data. We never make a change to the car without me now to back it up with empirical knowledge. Even if the driver turns around and tells us they feel something called, they believe something, we will always make sure we have data to back up that decision, So access to data is critical. Compute performance whether it's high performance, compute for our safety, for instance, whether it's for you as an end user, access to data is critical across everything that we do is time critical Time is our currency really as a business if we slow down your job? Generally, that probably means that you've got less time to make the correct decision. Or maybe you have to turn into a guess or a hunch, which that's never a good place to be in our sport. >> No, I would think not. >> I've I recall, from our conversation last year their rules that say, How many people you can have in your entourage like 60. I think it was yes, and at the time I think you said you got, like, 15 Allocated to data. Is that ratio kind of still holding? I >> still exactly the same in our tracks. On environment, they're still the same in the factory. We have more than that, depending on how many people on what time of day, what day of the week. So on a Friday race day, practice day, we can have a minimum. There'll be 30 people in our race support room will be looking at data along with those other 15. But you can have the whole Aargh department or design department or logistics. Whoever could still be looking at data from the track real time, so we can have as many as 4 to 500 looking at data if they want to. And if that's the right thing going on earlier in the season, you generally get more people looking As the season goes on. It's probably more aargh focused, maybe mechanically if we got something new, or maybe the engine division again in a completely separate building in the U. K 40 miles apart, they've got another set of people that will be looking and trolling through data riel time from the but looking really at the power unit rather than the chassis side. >> And you're generating, like roughly half a terabyte a weekend on a race weekend. Is that still about the same? Or is that growing a car >> perspective? It's just under half a terabyte, but we produce up to another half a terabyte of other supporting data with that GPS data, weather data, video, audio, whatever it would be other information to help with the strategy side of things So we're around 77 50 to 1 terabyte for race weekend, >> and each car has about 300 sensors. I think when we spoke with you last year, or maybe you're half ago is about 200 so that's increasing in terms of all the data being captured every race weekend. But one of the things that I love that matter sizes, you know, we're idea at Mercedes is not that unlike I t at other groups who really rely on high performance systems. But you do put out a new product every two weeks and this really extreme range of conditions, your product is extremely expensive as pretty sexy. Like the portability factor. You have to set up a tea shop, have any 20 weekends a year and set it up in what, 36 hours and take it down in six. >> And a nine year old joke about the taking it down in six is a bit like a Benny Hill sketch. It's obviously choreographed and, well, well rehearsed, but we have all the same systems as any normal business would have the tracks. That environment is very different, though we don't have air conditioning in so all the IittIe equipment has to work at the natural ambient air temperature of the country. We're in this year. Believe it or not, Germany and hungry have been our biggest challenge. We've had for the last 43 to 4 years because they had 45 degree air ambient air temperature. So forget humidity for a minute, which is Another kettle of fish probably affects us a bit more, maybe, than the systems, but we're only chucking that air as fast as we can across the components. So we're not putting any cooling into what is probably around the tolerance of most I T systems. So we have to rely basically on air throughput to terminate. Keep kit. Cool. Now the benefit with pure is actually doesn't create any heat, either. There's no riel heat generation, so it's quite tolerant, which helps us get it doesn't create Maur, but the environment we put it into is quite special. But what we're doing is what any business would want to do. Access toe email file systems. What we're trying to do is give it in a performance fashion. People need to make a decision. So in qualifying, for instance, those 300 sensors. That information that we've got from the car, we've got minutes to make a decision based on data. If it takes you too long to get the data off, you can't then look at the data to make a decision. So we have to make sure data in just from the car and then basically multi access from everybody in the factory or the track side is performance enough to make a decision before the car goes back out again. Otherwise, we're wasting track time. >> So you've always had data in this business. Early days was all analog, and it obviously progressed and thinking about what you want to do, Going forward with data. What kind of information or capabilities don't you have? Where that technology in the future could address >> s so interesting. One is technology of the future. If you know what it is, let me know with what we know right now, I think a lot of it's gonna be about having the ability to have persistent storage. But actually the dynamic of the compute resource eso looking at things like kubernetes or anything like that to turn around and have dynamic resource spin up as and when required to do high performance computer calculations based on the data, maybe to start giving us some automated information, I'm gonna be careful of the M l A. I is for our businesses, it's not quite as simple as others because our senior management very technically capable, and they just see it as advanced statistical analysis. So unless you program, it is not gonna give you an answer. Now we've started to see some things this year were actually the computer is teaching us things we didn't ask it to. So we have got some areas where we're beginning to learn that. That's not necessarily the case now, but for us that access to data moving forward, it's probably gonna be compute. Combined with that underlying storage platform, there's going to be critical onstage. You you heard Robin people talking about the ability to have that always present storage layer with the right computer. That's something for us is going to be critical, because otherwise we're gonna waste money and have resource sat doing nothing. >> Is security >> an issue for you? I mean, it's an issue for everybody, but there isn't a game of honor because you got this, you know, little community that you guys trying to hack each other systems. >> So it's an interesting one inside the sport, Actually, no. Because a few years ago there was a very high profile case where data went between two teams and there was £100 million fine's exclusion from the sport for a season. So that's that's >> too big. You don't mess with that. >> But also, if you think of that from our perspective, we've got the Daimler star on here. We cannot afford to have any of that Brenda brand reputational rubbing off on Damon's. So that's a no no other teams I can't talk for. But we're all fairly sensible between ourselves. What will be interesting moving forward is what technologies air in our sport, but actually of the whether their motor manufacturers or not, is their technology in there that they're interested in. Maybe the battery technology from the power unit side of things is that the power unit itself. So are other things actually more interesting to those other >> places. It legal for you, you know, by the rules of sports, a monitor, just data or captured data, whether it's visual, whatever from your competitors. Eso anything, >> this public? Yes, it's fair game. Okay, so we get given all the teams. Actually, we get a standard set of three or four different streams of information around GPS timing on some video feeds and audio feeds on their publicly consumable by the team's. When I say public for a second on those feeds, we can do what we like. You know that there for us to infer information, which we do a lot off, is what helps our strategy team to turn around and actually predict what we might or might not need to do as far as a pit stop or tire degradation. >> And that's where the human element must come into understanding the competent, like to football coaches who who know each other right? >> Well, yes. And now, if you think if you add to that the human element off Well, what happens if one team strategy person changes? Are they gonna make a different call based on the same data? Is their hunch different? Do they think they know better within a team? You can have that discussion. So what happens in another team where they're cars, not as performance so their mindset. Maybe they're thinking differently. Or maybe a team's got the most performance car of the moment and they think that they're going to do X. And we're like, Well, we're gonna do something different than to try and actually catch them out. So do we. Now don't do the normal thing. >> So let's hope >> Gamification I love it. >> Let's look at all. Make a prediction. 2019 is gonna be another Mercedes AMG way. So at the end of the season, all of the data that you have collected from the cars, all the sensors, all the weather data, GPS, et cetera how does pure facilitate in the off season the design of the 2020 car, for example, Where does where does things like computational fluid dynamics? >> Okay, so all of our production data is on pure, whether it's on a ray or blade somewhere, it's on pure storage across the site. So they're involved. Whether you're talking about design, whether you're talking about final element analysis for hyper a ll, the C f. D. Using high performance computer systems, everything some pure so from that point of view, is making sure we're using the right resource in the right place to get the best performance. Now, see if he's an interesting one because we're regulated by the F A a. About the amount of compute that weaken you. He's now. Because of that, you want it to be as efficient as you possibly can. It's not speed but the efficient use off CPU time. So if a CPU is waiting for data, that's wasted, Okay, so for us, it's trying to make sure that whole ecosystem is as efficient as we can. That's obviously an integral part of everything we do, so whether we're wind tunnel testing, whether we're in the dino, the simulators, but everything basically comes back to trying to understand and correlate the six or seven different places we generate data, trying to make sure that when there's a change in the simulator, we understand that change in the real world or in a diner or in safety. So all of that, what pure do is allow us to have that single place to go and look how I perform and always available. And for me, I don't have to have a story. Jasmine. Yeah, we've got a team of people that actually are thinking about that for us at Pure, You know, there is invested in us these days. Yeah, I walk around here, I'm very fortunate. I get to see all of the senior guys here and there. They are asking me what's going on and how's things with sequel Oracle Because they know exactly what we're doing and they're they're trying to say what's coming. So things like object engine Pierre So we've been talking to pure about using that over the coming months. But what? We're not having it at the moment. Go out and learn it. Actually, they coming in and they're telling us all about it. So they become a virtual extension to my team, which is just amazing. >> Yeah, far more efficient. You're able to focus on a much more things that drive value for the business. As we look at some of the things like the Evergreen business model. What were some of the big ah ha we hear is the right solution for us back in 2015. Is that >> so? Evergreen and love. Your stories were two things at the time that we're just incredible for us because love your storage was basically you could have an array and basically you could use it. And there was no commitment, no anything. But if you like that, you could keep it, obviously, paying for it. Ah, nde. When we did that in the factory, basically, within a week of being in there that the team were like, Whoa, hang on, that's going nowhere. So that was That was a nice, easy one. But Evergreen was an interesting one, which has only really, truly for me. I've always bought into it. But the last probably 18 months we've used it time and time and time again because the improvements with the speed of light x 90 coming envy Emmy drives. When we were looking at capacity, what we did was we turned round and said, Well, actually, we can buy more dense units in the next 90 so we're only buying the extra capacity, but we were getting new technology. So nations, all the innovation that you're putting into their products were getting it. So today, when they were talking about the memory based access, and if your things always sat there going, I can use that. Oh, and there's no there's no work for me, there's no effort. The only thing I gotta worry about is whether I've got capacity for that. Those modules to go in. So Evergreen has worked several times because I don't have to go back to the cap export and go. Could I have another x £1,000,000 please? Why? I need some more storage. Yeah, but you bought some of the other day. Yeah, well, that one. I need to get rid of it because I need a bigger one. And I don't have to do that. Now. I just go in. I'm telling them what the increases for which actually, they can choose Then if they want to increase, they know what the business benefit is rather than just I t has got to turn around and either replace it because of age or the new version doesn't support is not an uplift, not upgrade from the old. One >> I've seen was looking at some of your stats and the case study that's currently online on. Imagine these numbers have gone up 68% reduction in data center Rackspace and saving £100,000 a year and operating costs >> those that would have been probably two years ago. Ish roughly those figures. And the operating cost is a huge improvement for us. Cap Ex is probably the biggest one for me. They were moving forward with cost caps coming into Formula One. That type of thing is gonna be invaluable. Does not happen to do a forklift upgrade of your storage. Well, I wouldn't know what I would do if I had to upgrade what I now own from pure I can't even imagine what? I don't want to turn around town my bosses what that's >> gonna cost. Well, it sounds like you really attacked the op X side with R and D with pure r and D. I kind of like that shifting, you know, labor toe are Andy because you don't want to spend labour on managing storage a raise, make no sense for your business. Okay. What do you want? Pure toe spend? R and D are now, what problem can they saw for? You mean >> so racy is gonna help If I'm really honest, that's actually is gonna help fill a whole quite well for us because we weren't really sure what to put some of that less hot data we were like, Well, where we going to start to put this now? Because we were beginning to fill up the array and the blades. Actually, with a racy no, we can actually use that different class of storage actually, to keep it still online. Still be out to do some machine learning A. I in the future when that comes around. But actually I can now have Maur longevity out of my existing array and blades. So that's brilliant and coming, I think, having I need to be careful, I know some things that are coming. Uh, the active sinking array is brilliant, and we've been using that since it came out. Having that similar or same ability in Blade when it comes will be a very advantageous having those played enclosures. We've gone to multi chassis flash played over the last six weeks, so that for us is great. Once we can start to synchronize between those two, then that's ah, that's another big one for us, for resiliency, for fault, tolerance, but also workload movement. That thing I said about persistent stories, layer, I'm not gonna need to care where it is, and it will be worked out by the storage in the orchestration layer so it can have the storage in the computer in the right place. >> Wow. Great story, Matt, as always. And I think it's Pierre calls this the unfair advantage coming to life. Best of luck for the rest of the 2019 season. >> I'll take it. >> All right, We'll see you next time. >> Thank you. >> Keep before >> for David Dante. I am Lisa Martin. You're watching the Cube from Cure Accelerate in Austin, Texas.

>> from Austin, Texas. It's Theo Cube covering your storage Accelerate 2019 Brought to you by pure storage. >> How do y'all welcome back Thio, the Cube leader In live coverage we're covering day to a pure accelerate 19 Lisa Martin With Day Volonte Welcoming to the cue for the first time from SG Mark Peters principal analyst and practice >> Oh, my apologies. So young. >> I wish I wish that was true. >> In fact, one of the first analysts I think that's true if not the first analyst ever on the Q. But, >> well, I'll say Welcome back. Thank you. We're glad to have you here. So you've been with Ishii for quite a while, You know, the storage industry inside and out, I'm sure pure. Just about to celebrate their 10th anniversary. Yesterday we heard lots of news, which is always nice for us to have father to talk about. But I'd love to get your take on this disruptive company. What they've been able to achieve in their 1st 10 years going directly through is Dave's been saying the last two days driving a truck there am sees, install, base, back of the day, your thoughts on how they've been able to achieve what they have. >> That'll last me to talk about something I really want to talk about. And I think it addresses your question. How have they been able to do it? It's by being different. Andi, I don't know. I mean, obviously you do a stack of into sheer and maybe other people have talked about that. But that is the end. When I say different, I don't necessarily mean technology. I have a kind of standard riff in this business that we get so embroiled in the technology. Do not for one second think it's not important, but we get so embroiled in that that we missed the human element or the emotional element on dhe. I think that's important. So they were very different. They created, you know, these thes armies of fans who just bought into what they did. Now, of course, that was based on initially bringing flash to the market making flasher Fordham. Well, they've extended that here with the sea announcement and other things as well, so I don't want to just focus on that, but you know, they continue to do things differently with the technology, But I think what really made them an attractive company and why they've survived 10 years on her now big sizable is because they were a different sort of company to deal with. >> Are you at all surprised that the fourth accelerate is in Austin, Texas? Dell's backyard? Yes. Well, they're disruptive. They're different. They're bold. We're okay, >> you see, But But also, did you go to the other three? >> Uh, the last two. I was trying to remind >> myself where they were. I know one was kind of on a pier in a ballpark in San Francisco. One words. You remember the one that was in that you Worf, But that was a a rusting, so cool it was. But it was a metaphor in a rusting spinning desk, right. But it was also such a different sort of place on, So I probably was also a few it D m c. But I agree. And then the last one was in some sort of constantly. Yes, So >> they were all >> different. And so I Yes, I know this is Dell's backyard. Probably literally, because I'm sure Michael owns a lot of the place. It's also kind of very normal place and so there's a little bit of me that I don't want to use the world worry. But as you grow up and of course, we've got the 10 year anniversary, we're in Austin. What's the tagline of Austin? >> I don't know. No. Keep Austin weird. Okay, >> I >> don't want to suggest appears weird, but they were always a little different, I said. That's why I think they were attracted as much as anything. Yes, that's why I had the hordes of admiring fans, all wearing their orange socks and T shirts and cheering on DDE as they get older as they get more mature as they expand their portfolio. Charlie was on stage talking not so much about scale the problem when he was asked, but more about complexity. As you get more complex, you actually get more normal on, So I don't know that weird is the word, but a bit like Austin pure needs to keep your interesting. >> I like that >> Very interesting. So >> you and I, >> we've been around a while. We were kind of students of the industry. I was commenting earlier that it's just to me very impressive that this company has achieved a new definition of escape velocity receiving a billion dollars show. First company since Nana to do it, I gotta listed three. Park couldn't do it. Compelling data domain isolani ecological left hand. Really good cos all very successful companies. Uh, >> what do you think? It's >> all coming out of >> the dot com crash. Maybe that pay part of it. Pure kind of came out of the, you know, the recession. Why >> do you >> think Pure has been able to achieve that? That you know, four x three par, for example in terms of revenues. And it's got a ways to go. They probably do 1.7 this year. I think they have aspirations for five on enough there. Publicly stated that they probably have, right? Of course. Why wouldn't they thoughts on why they were able to achieve that? What were the sort of factors genuinely know? Having no idea what you were gonna ask me. And now actually, listening to question let me You've just made me think of something that I had not really thought. So I took so long to ask the question formulated. And you are so, um, you used the word escape velocity. Let's think about planes. I mean, you know, I think it's a V one, isn't it to take off, Mitch? Maybe not the same as escape, which is in the skies. But you get the point. How long to really take off? Be independently airborne? They gave themselves. I don't know how much was by design default how it really happened? I don't know. They had an immensely long runway. You think the whole conversation about pure for years and years was Oh, yeah, yeah, they're making loads of revenue, but they lose 80 cents every time they get 50. That was the conversation for years and years. I know they've now turned that corner, and I think the difference. Actually, the more I think about it, yes. You can talk about product. Yes, you can talk about the experience. I think those things are both part of it. But the other companies you named had cool things too. They all had cool products you had. What was it? The autopilot thing with compelling. And they had lots of people cheering. Actually, in this building, I think three part was yellow and kind of cool in a different part of the market. and disruptive. But they were both trying to get to the exit fast. Whether the exit was being bought or whether it was going under. I don't know it was gonna be one or the other, and for both of them, they got bought. I don't think pure had that same intention, and it's certainly got funding and backers that allowed it to take longer. So that's a really good point. I think there's a There's a new Silicon Valley playbook. You saw it with service. Now, with Frank's limits like the Silicon Valley Mafia's Sweetman Dietzen, Bush re at Work Day, they all raised a boatload of cash and a sacrifice profits for for growth. I mean, I remember Dave Scott telling me, you know, when he came on, the board was saying, Hey, we're ready to you know, we're prepared to raise 30 million. He said, I need 80 eighties chump change today compared to what these guys were raising. Well, I mean, I think I mean, they pretty quickly raised hundreds of millions, didn't they? They weren't scraping by on 50 or 80 million, which which is what you see. You sort of want one more thought just this escape velocity idea, I think is interesting because the other thing about escape velocity is partly how long you take runway orbit, whatever. But it's the payload on, you know, The more the payload, the longer it takes the take off the ground or the more thrust you need thrust in this case, his money again. But if you think about it, this is another thing where he and I gotta say, we've been doing this a long time. The storage industry over decades has been one of the easiest industries to enter on one of the hardest to actually do well. Why is that? Because the payload is heavy. It's easy to make a box that works fast, big whatever you want in your garage. Two men on one application working for a day. It's really hard to be interoperable with every app, every other system, operational needs and so on and so forth. And so the payload to be successful. I think they understood that, too. So, you know, they didn't let ourselves get distracted by like the initial shiny, glittery we need to get out of this business. >> I love the parallels with payloads and Rockets. Because, of course, we had Leland Melvin inner keynote this morning. I'm a former NASA geek. Talk to us about your thoughts on their cloud strategy, the evolution of the partnership with a W s. We talked about that yesterday. Sort of this customers bringing this forcing function together, but being able to sort of simplify and give customers this pure management playing the software layer wherever their data is your thoughts on how their position themselves for multi cloud hybrid world. >> Okay, two thoughts, one cloud. Then you also used the word simplicity. So I want to talk about both of those things if I can, Um I don't know. I'm sorry. This is not a very good answer. I think it's the truth. I mean, you can't exist in this world if you haven't got a cloud story, and it better be hybrid or pub. Oh, are multi, whichever you prefer. I think those have very distinct meanings, by the way, but we would be here for an hour and 1/2. It'll be a cube special to really get into that. However, So you've got to do this. I mean, there is just, you know, none of the clients they're dealing with. Almost none. That's not research. I'll talk research in a second but glib statement. Everyone's got a cloud strategy. It doesn't matter which analyst company you put up the data, we'll do it. I want to talk about a cup, some research we've done in a second. But everyone will tell you a high number of people who have a cloud first strategy, whether that's overall or just the new applications or whatever. So they've got to do it. What's crucial to whether or not they succeed is not the AWS branding, because everyone's got a W s branding me people that they don't work with or will not work within the next year or two. I mean, I'm sure there's one God you look like you're anxious, you're on a roll. But simplicity is really important. So David knows we do a lot of research early yesterday, one of our cornerstone piece of researchers think all the spending intentions we do every year. One of the questions this year's Bean for a couple of years now is basically saying simple question Excuse. The overuse of the word is how much more complex is I t you know, in your experience, more or less complex. And it was two years ago. I t broadly and you know that I love this question. You know the answer on dhe. 66% of people say it is more complex now than it was two years ago. People don't want complexity. We all know that there's not enough skills around the research to back that up. A swell on dso Simplicity is really important cause who was sitting in this seat before May I think I will say that the company here was founded on simplicity. That was the point. They were to be the apple of storage. I think that's why people love them. They were just very easy to use on dso coming finally back to your question. If they can do this and keep it simple, then they have a better chance of success than others. But how do you define successful them isn't keeping their customers are getting new ones. That's a challenge. >> They do have a very high retention rate. I want to say like 140% but things like we have our dinner for two U percent attention. Yes. How did >> you do? So? So this is is interesting. It's actually 100 and 50% renewal rate. Oh, by the Mike Scarpelli CFO Math of renewal rates on a dollar value on net dollar value renewal rate subscriptions. Mike Scarpelli was the CFO of service. Now invented this model and service now had, like, 100 and whatever 1500 whatever 27. And so it's a revenue based renewal. Makes sense. Sorry for one second you're retaining more people than you >> go. 101 100 >> 50% is insane. 105 >> percent is great. Yeah, 150% is interrupted. Your question. >> Well, I'm just saying >> it's good. Good nuance, >> Yes, Thanks for clarifying its. You know, companies can say whether it's one. Appears customers are pure themselves or competitors. We are cloud. First, we have a cloud for strategy, and a company like pure can say we deliver simplicity, those air marketing terms until they're actually put in the field and delivered. So in your perspective, how does pure take what I T professionals are saying? Things are so much more complex these days? How does a pure commit and say simple, seamless, sustainable, like Charlie, Giancarlo said yesterday. And actually make that a reality. Well, I >> mean, obviously, that's their challenge, and that's what they have work to do to some degree. And this comes back to what I was saying that to some degree it becomes self fulfilling because your that's why your customers come back with more money because they bought into this on. So as long as they're kept happy, they're probably not going to go and look at 20 other people. I'm not saying they never had any of that simplicity to start off with, but it's very interesting if you go to a pure event, their customers and this might be sacrilege sitting in this environment don't talk about the product. They talk about the company, >> right? >> The experience There's that word again, off being appear customer yes on So they're into it. They brought into whatever this is, and as long as the product, please do not strike me down is good enough. I'm not saying that's all it is. I think it's a lot better that, but as long as it's good enough, but you're really well looked after a few minutes ago, when I'm saying that's why I think this market is about so much more than just how fast can you make the box? How big can you make the box? How smart can you make the box? All of those are interesting, But ultimately, I'm only looking at Dave because he's so old. Ultimately, technology is a leapfrog game. Yeah, branding is not >> Beaver >> s O. So that's a good point. But we've not seen the competitors be able to leap frog pure or be able to neutralize them the way, for example, that DMC was able to somewhat neutralize three par by saying, Oh, yeah, we have virtual ization, too, you know, are thin provisioning. Rather. Yeah. And even though they had a thin provisioning bolt on, it was it was good enough. Yes, they did the check box. You haven't seen the competitors be able to do that here? I'm not saying they won't, but are they? I think, um, I was going to say basically this on my MBA, but I don't have one, so I can't say that, but, you know, I've read that. Read the books. If you look at Harvard Business School cases, I think the mistake made by the competition was to assume that Pierre would go away, that they would each try it or that it would fail on will make fun of the fact they don't make any money for the first few years on dhe. You know, the people going to them, we're gonna be sadly mistaken when they can't handle these features, whether that be cloud or whether that be analytics or fresh blades or whatever else again to add on. They thought they would just go away that there are great parallels in history when you let competition in and you just keep thinking at each point they're going to go away. Spot the accent. British motorcycle industry. When the Japanese came in, they literally said, Well, let them. There are records. We'll let them have the 50 cc market because we don't really care about that. But we'll make the big bikes Well, Okay, well, let them have 152 100 cc because really, that doesn't matter. And 10 years later, there was no industry well, and I think what happened with the emcee in particular because, let's face it, pure hired a bunch of DMC wraps. They took your product and, as I've said before, they drove a truck to the the symmetric V n X install base Emcee responded by buying X extreme io and they said, You know what? We're sick of losing the pure. We're gonna go really aggressive into our own accounts and we're gonna keep them with flash. And then what happened is their accounts. It Hey, we're good. We don't actually really need more stores because the emcee tried to keep it is trying to keep both lines alive. And now they're conflicted, pure. You know, I had a what? We're mission. >> You thought not up a great point. Sorry. Just just because I think >> thing about that is if you look at how e. M. C using my words accurately usedto act, I think you said that, too. So I'm not criticizing Adele is they were exceptional organized marketing organization. We go that way. And if you're not going that way, you got a big problem both as a custom, Miranda's UN employees. But the problem with that is also is that way would sometimes become that way, and then it become that way on the product depending what was doing well. So, for example, they had, you know, tens of thousands of feet, all marching to the extreme. I owe beat for a few quarters, and then they would go off on to the next product pure. Just carried on, marching to its beat down that runway escape velocity question >> appoint you brought up a minute ago before we wrap her. That I think is really interesting is that you write your customers talk about the experience. I think we were talking with a customer yesterday. Dave was asking, Well, what technologies are you think he started talking about workloads? So when we're at other events, you hear other names of boxes brought up here to your point. It is all about the experience so interesting and how they're Can you continuing to just be different, but to wrap things up since they're in my ear, we're almost that time. I just wanna take a minute to ask you kind of upcoming research. What are some of the things that you're working on? Their really intriguing you and SG land. I think right >> now, from my perspective, I mean, as a company would continue to do 27,000 different things because there's so much going on in the market. So whether that's security is massive area of focus right now, even improvements in networking. So it's not just the regular run of the mill, you know, Bigger, faster, cheaper. Which is always there s o A. I, of course, in all these again, you may both know you will now doesn't mean we're always looking at buying intentions rather than counting boxes. So it's really where people are moving over the next few years. That said to May. I think what's really interesting is to other things. Number one is to what extent can. I don't think we can really measure this easily. But to what extent can we get people talking about pure again to acknowledge that emotions, attitudes, experiences are an important part of this business? I'm old enough that I'm not scared of saying it, and I think pure is a company is not scared of saying it, you know, I think a lot of companies don't want to admit that Andi all know that they have different corporate cultures and mantras and views on their customers reflect that two on The other thing just generally is the future of I t. As a whole. I know that. So, I mean, I'm doing this because none of us really know what that is, but, you know, clearly way gotta stop talking about the cloud At some point. It's just part of I t. It's not a thing as such. It's just another resource that you bring to bear. I don't know that we're yet at that point, but that's >> got to happen. >> Interesting. Thanks for looking. I'm imagine this was a crystal ball. But Mark, I wish we had more time because I know we could keep talking. But it's been a pleasure to have you >> got the whole multi cloud hybrid cloud for an hour and 1/2. >> We come back, we'll have that discussion. Like what I'll means and yeah, back anytime. >> Excellent. Thank you for joining David. Me. Thank you for David. Dante. I'm Lisa Martin. You were watching the Cube from pure accelerate 19

>> Announcer: From Austin, Texas it's The Cube covering Pure Storage Accelerate 2019, brought to you by Pure Storage. >> Good morning. From Austin, Texas, Lisa Martin with Dave Vellante at Pure Accelerate 2019. This is our second day. We just came from a very cool, interesting, keynote, Dave whenever there's astronauts my inner NASA geek from the early 2000s. She just comes right back up Leland Melvin was on >> Amazing, right? >> With a phenomenal story. Talking about technology and the feeling of innovation but also a great story of inspiration from a steam perspective science, technology, engineering, arts, math, I loved that and, >> Dave: And fun >> Very fun. But also... >> One of the better talks I've ever seen >> It really was. It had so many elements that I think you didn't have to be a NASA fan or a NASA geek or a space geek to appreciate the all of the lessons that Leland Melvin learned along the way that he really is inspiring, everybody the audience to take note of. It was I thought it was... >> And incredibly accomplished, right? I mean scientist, MIT engineer, played in the NFL, went to space, he had some really fun stuff when they were, you know, messing around with with gravity. >> Lisa: Yes. >> I never knew you could do that. He had like this water. >> Lisa: Water, yeah. >> Bubble. >> I'd never seen that before and they were throwing M&M's inside (laughter) and he, you know consumed it choked on it, which is pretty funny. >> Yeah, well it was near and dear to me. I worked with NASA my first job out of grad school. >> Dave: Really? >> I did, and managed biological pilots that flew on the space shuttle and the mission that the he talked about that didn't land, Colombia. That was the mission that I worked on. So when he talked about that countdown clock going positive. I was there on the runway with that. So for me, it just struck a chord of, >> Dave: so this is of course the 50th anniversary of the moonwalk. And you know I have this thing about watches, kind of like what you have with shoes (chuckles) >> Lisa: Hey, handbags. >> Is that not true? Oh, It's handbags for you? (laughing) >> Dave: I know this really that was a terrible thing for me to say. >> That's okay. >> Dave: You have great shoes so I just I just assumed that not good to make assumptions. So I bought a moon watch this year which was the watch that Neil Armstrong used to not the exact one but similar one, right? >> Lisa: Yeah. And it actually has an acrylic face because they're afraid if it cracked in space you'd have glass all over the place. [Lisa] Right. So that's a little nostalgia there. >> Well one of the main things too as you look at the mission that President John F. Kennedy established in the 60's for getting a man in space in that 10-year period. That being accomplished and kind of a parallel with what Pure Storage has done in its first 10 years of tremendous innovation. This keynote again Day 2, standing room only at least about 3000 people or so here. Storage as James Governor said, your friend and also who keynoted after Leland this morning you know, (mumbles) Software's eating the world storage is eating the world we have to have secure locations to store all this data so that we can extract maximum value from it. So nice parallel between the space program and Pure Storage. >> James is really good, isn't he? I mean he had to follow Leland and I mean again one of the better talks I've ever heard, but James is very strong, he's funny, he's witty he's he cuts to the chase. >> Lisa: Yes. >> He always tells it like it is. He's a very Monkchips is very focused on developers and they do a really good job there, one of the things he talked about was S3 and how Amazon uses this working backwards methodology which maybe a lot of people don't know about but what they do is they write and rewrite and rewrite and vet and rewrite the press release before they announce the product and even before they develop the products they write the press release and then they work backwards from there. So this is the outcome that we are trying to achieve, and it's very disciplined process that they use and as he said they may revise it hundreds and hundreds of times and he put up Andy Jassy's quote from 2004, around S3. That actually surprised me. 2000...Maybe I read it wrong. >> Lisa: No, it was 2004. >> Because S3 came out after EC2 which was 2006 so I don't know. Maybe I'm getting my dates wrong or I think James actually got his dates wrong but who knows, maybe you know what? Maybe he got a copy of that from the internal working document, working backwards doc that could be what it was but again the point being they envisioned this simple storage that developers didn't have to think about >> Lisa: Right. >> That was virtually unlimited in capacity, highly available and you know, dirt cheap which is what people want and so he talked about that and then he gave a little history of the Dell technology families and I tweeted out this in a funny little you know basically pivotal VM ware EMC and Dell and their history Dell was basically IPO 1984 and then today. There was a few things in between I know but he's got a great perspective on things and I think it resonated with the audience then he talked a lot about Kubernetes jokingly tongue-in-cheek how Kubernetes everybody thought was going to kill VMware but his big takeaway was look you got all these skills of (mumbles) Skills, core database skills, I would even add to that you know understanding how storage works and I always joke if your career is based on managing lawns you might want to rethink your career. But his point was which I liked was look all those skills you've learned are valuable but you now have to step up your game and learn new skills. You have to build on top of those skills so the history you have and the knowledge that you've built up is very valuable but it's not going to propel you to the next decade and so I thought that was a good takeaway and it was an excellent talk. >> So looking back at the conversations yesterday the press releases that came out the advancements of what Pure is doing, with AWS, with Nvidia, with the AI data-hub for example, delivering more of their portfolio as a service to allow businesses whether it's a law-firm like we talked to yesterday utility or Mercedes AMG Petronas Motor-sport, to be able to access data securely, incredibly quickly, recover it restore it absolutely critical and really can be game-changing depending on the type of organization. I want to get your perspectives on some of the things you heard anecdotally yesterday after we wrapped in terms of the atmosphere, the vibe, the thoughts on Pure's next 10 years. >> Yeah, so several things, just some commentary so it's always good at night you go around you get a lot of data we sometimes call it metadata. I think one of the more interesting announcements to me was the block-storage on AWS. I don't necessarily think that this is going to be a huge product near term for Pure in terms of meaningful revenue, but I think it's interesting that they're embracing the trend of the Cloud and are actually architecting Cloud solutions using Amazon services and blending in their own super gluing their own, I mean it's not really superglue but blending in their own software for their customers to extend. Now, you know some of the nuances I don't think they are going to have they have better right performance I think they'll have better read performance clearly they have better availability I think it's going to be a little bit more expensive. All these things are TBD that's just my take based on looking at what I've seen and talking to some people but to me the important thing is that Pure's embracing that Cloud model. Historically, companies that are trying to defend an existing business, they retreat. You know, they denigrate they don't embrace. We know that Pure's going to make more money on pram than it does in the Cloud. At least I think. And so it's to their advantage for companies to stay on-prem but at the same time they understand that trend is your friend and they're embracing that so that was kind of one thing. The second thing I learned is Charlie Giancarlo spent a lot of time with them last night as did you. He's a bit of a policy wonk in very certain narrow areas. He shared with me some of the policy work that he's done around IP protection and not necessarily though on the side that you would think. You would think that okay IP protection that's a good thing but a lot of the laws that were trying to be promoted for IP protection were there to help big companies essentially crush small companies so he fought against that. He shared with me some things around net neutrality. You would think you know you think you know which side of net neutrality he'd be on not necessarily so he had some really interesting perspectives on that. We also talked to and I won't share the name of the company but a very large financial institution that's that's betting a lot on Pure was very interesting to me. This is one of the brand names everybody would know it if you heard it. And their head of storage infrastructure was here, at the show. Now I know this individual and this person doesn't go to a lot of shows >> Maybe a couple a year. >> This person chose to come to this show because they're making an investment in Pure. In a fairly big way and they spent a lot of time with Pure management, expressing their desires as part of an executive form that Pure holds they didn't really market that a lot they didn't really tell us too much about it because it was a little private thing but I happen to know this individual and and I learned several things. They like Pure a lot, they use it for a lot of their workloads, but they have a lot of other storage, they can't necessarily get rid of that other storage for a lot of reasons. Inertia, technical debt, good tickets at the baseball game, all kinds of politics going on there. I also asked specifically about some hybrid companies products where the the cost structure's a little bit better so this gets me to flash array C and we talked to Charlie Giancarlo about this about his flash prices come down and it and opens up new markets. I got some other data yesterday and today that you know that flash array C is not going to be quite priced we don't think as well as hybrid arrays closing the gap it's between one and one and a quarter, one and a half dollars per gigabyte whereas hybrid arrays you are seeing half that, 70 cents a gigabyte. Sometimes as low as 60 cents a gigabyte. Sometimes higher, sometimes high as a dollar but the average around 65-70 cents a gigabyte so there's still a gap there. Flash prices have to come down further. Another thing I learned I'm going to just keep going. >> Lisa: Go ahead! >> The other thing I learned is that China is really building a lot of fab capacity in NAND to try to take out the thumb-drive market-place so they are going to go after the low-end. So companies like Samsung and Toshiba, Toshiba just renamed the company, I can't remember the name of the company but Micron and the NAND flash NAND manufacturers are going to have to now go use their capacity and go after the enterprise because China fab is going to crush the low-end and bomb the low-end pricing. Somebody else told me about a third of flash consumption is in China now. So interesting things going on there. So near term, flash array C is not going to just crush spinning disk and hybrid, it's going to get closer and it's going to slowly eat away at that as NAND prices come down it really could more rapidly eat away at that. So I just learned some other stuff too but I'll take a breath. (laughter) >> So one of the things I think we are resounding with it we heard not just yesterday on the program day but even last night at the executive event we were at is that from this large financial services company that you mentioned, Pure storage is a strategic partner to many organizations from small to large that is incredibly valued to your point the Shuttleman only goes to maybe a couple of events a year and this is one of them? >> Dave: Right. >> This is a company that in its first 10 years has embraced competition head on and I loved how you talked about yesterday 10 years ago they just drove a truck through EMC's market and sort of ripping and replacing. They're bold but they're also doing it in a way that's very methodical. They're working on bringing you know changing companies' perspectives of even backup data as becoming an asset to put it on flash. Because if you can't rapidly restore that, if there's an outage whether it is an attack or it's unintentional human related, that data can't be recovered quickly, you're in a big big problem. And so them as a strategic component of this isn't in any industry I think it was a very resounding sentiment that I heard and felt yesterday. >> Yeah, this ties into tam expansion of what we talked to Charlie Giancarlo about new workloads with AI as an example flash or AC lowering prices will open up those some of those new workloads data protection backup is clearly an opportunity and I think it's interesting, you're seeing a lot of companies now announce a lot of vendors announce flash based recovery systems I'll call them recovery systems because I don't even consider them backup anymore it's not about backup, it's about recovery. Oracle was actually one of the first to use that kind of concept with the zero data loss recovery appliance they call it recovery. So it's all about fast and near instantaneous recovery. Why is that important? It's because it's companies move toward a digital transformation and what does that mean? And what is a digital business? Digital business is all about how you use data and leveraging data in new ways to create new value to monetise or cut cost. And so being able to have access to that data and recover from any inaccess to that data in a split-second is crucial. So Pure can participate in that, now Pure's not alone You know, it's no coincidence that Veritas and Veeam and Cohesity and Rubrik they work with Pure, they work with HPE. They work with a lot of the big players and so but so Pure has to you know, has some work to do to win its fair share. Staying on backup for a moment, you know it's interesting to see, behind us, Veritas and Veeam have the biggest sort of presence here. Rubrik has a presence here. I'm sure Cohesity is here maybe someway, somehow but I haven't seen them >> I haven't either. >> Maybe they're not here. I'll have to check that up, but you know Veeam is actually doing very well particularly with lower ASPs we know that about Veeam. They've always come at it from the mid-market and SMB. Whereas Cohesity and Rubrik and Veritas traditionally are coming at it from a higher-end. Certainly Cohesity and Rubrik on higher ASPs. Veeam's doing very well with Pure. They're also doing very well with HPE which is interesting. Cohesity announced a deal with HPE recently I don't know, about six months ago somebody thought "Oh maybe Veeaam's on the outs." No, Veeam's doing very well with HPE. It's different parts of the organization. One works with the server group, one works with the storage group and both companies are actually doing quite well I actually think Veeam is ahead of the curve 'cause they've been working with HPE for quite some time and they're doing very well in the Pure base. By partnering with companies, Pure is able to enter that market much in the same way that NetApp did in the early days. They have a very tight relationship for example with Commvault. So, the other thing I was talking to Keith Townsend last night totally not secretor but he's talking about Outpost and how Amazon is going to be challenged to service Outpost Outpost is the on-prem Amazon stack, that VMware and Amazon announced that they're co-marketing. So who is going to service outpost? It's not going to be Amazon, that's not their game in professional service. It's going to have to be the ecosystem, the large SIs or the Vars the partners, VMware partners 'cause that's not Vmwares play either. So Keith Townsend's premise, I'd love to have him on The Cube to talk about this, is they're going to have trouble scaling Outpost because of that service issue. Believe it or not when we come to these conferences, we talk about other things than just, Pure. There's a lot of stuff going on. New Relic is happening this week. Oracle open world is going on this week. John Furrier just got back from AWS Bahrain, and of course we're here at Pure Accelerate. >> We are and this is our second day of two days of coverage. We've got Coz on next who I think has never been on The Cube. >> Dave: Not to my knowledge. >> We've got Kix on later. A great lineup, more customers Rob Lee is going to be on. So we're going to be digging more into Pure's Cloud strategy, the next ten years, how they're going to accelerate that and pack it into the next couple of years. >> I'll tell you one of the things I want to do, Lisa. I'll just call it out. An individual from Dell EMC wrote a blog ahead of Pure Accelerate I think it was last week, about four or five days ago and this individual called out like one, two, three, four.... five things that we should ask Pure so we should ask them, we should ask Coz we should ask Kix. There was criticism, of course they're biased. These guys they always fight. >> Lisa: Naturally. >> They have these internecine wars. >> Lisa: Yep. >> Sometimes I like to call them... no I won't say it. So scale out, question mark there we want to ask Coz about that and Kix. Pure uses proprietary flash modules. They do that because it allows them to do things that you can't do with off-the-shelf flash. I want to ask and challenge them that. I want to ask about their philosophy on tiering. They don't really believe in tiering, why not? I want to understand that better. They've made some acquisitions, Compuverde is one acquisition, it's a file system. What does that mean for flash play? >> Now we didn't hear anything about that yesterday, so that's a good point that we should dig into that. >> Yeah, so we'll bring that up. And then the Evergreen competitors hate Evergreen because Pure was first with it they caught everybody off guard. I said it yesterday, competitors hate Evergreen because competitors live off of maintenance and if you're not on their maintenance they just keep jacking up the maintenance prices and if you don't move to the new system, maintenance just keeps getting more and more and more and more expensive and so they force you, you're locked in. Force you to move. Pure introduced this different model. You pay for the CapEx up front and then, you know, after three years you get a controller swap. You know, so... >> To your point competitors hate it, customers love it. We heard a lot about that yesterday, we've got a couple more customers on our packed program today, Dave so let's get right to it! >> Great. >> Let's wrap up so we can get Coz on stage. >> Dave: Alright, awesome. >> Alright, for Dave Vellante. I'm Lisa Martin, you're watching The Cube from Pure Accelerate 2019, day two. Stick around 'Coz' John Colgrove, CTO, founder of Pure, will be on next. (upbeat music)

(upbeat music) >> Narrator: From Austin, Texas it's theCUBE, covering Pure Storage Accelerate 2019. Brought to you by Pure Storage. >> Welcome back to theCUBE. Lisa Martin, Dave Vellante is my co-host. I'm at Pure accelerate 2019 in Austin, Texas and Dave and I are really pleased to welcome to theCUBE, for the first time, John Colgrove, Coz, CTO and founder of Pure Storage, Coz, welcome to theCUBE. >> Ah, I'm glad to be here thanks for having me. >> And happy 10th anniversary. So, 10 years ago I'm sure you couldn't have envisioned 3, 000 people, Austin being taken over by a sea of orange. But let's go back 10 years, Why did you found Pure Storage? >> Why did I found it? Well, I wasn't really ready to be retired yet. Flash, I started have seen from when I worked at Amdahl many years ago all the way through Veritas, I saw disks continuing to get bigger and bigger and effectively slower and slower. Cause when they don't get any faster and they get bigger, they get slower from by their data. And flash was a catalyst that was going to to change that. But it was the catalyst. What we really wanted to do was to completely change the storage industry. Everything that had annoyed me about the storage industries through all the years in Veritas, All the complexity, all the bad customer practices that the industry forced on people, I wanted to change all that. think of what you demand from your personal tech from your iphone or your laptop or your tablet. Customers should demand that kind of quality, service ability, ease of use from their enterprise IT gear. >> When I started my career in the early '80s I was at IDC and they didn't have a storage analyst. And I started following mainframes and I learned a lot about channel command words and IO subsystems and I came to the conclusion that this is a really hard thing, hard problem to solve. And, so, I got interested in it. You obviously did as well. I'm interested in when you went from Amdahl to Veritas, you had to do some unnatural acts with software to make IO better, 'cause of the spinning disk and understanding the latencies and the scatty chatty protocols and everything else. When you went and thought about Pure and when you think about great architects and I've obviously put you in that category, you chose flash, others like another great architect, Moshe have said you know what I can even squeeze more out of spinning disks. What led you to flash versus trying to squeeze more blood from the spinning disk stone? If I can phrase it that way. >> I think I tend to be more of an extremist on things like that. And I think that's been the key to Pure's success. We were not the first all flash startup. We were the first to focus on affordable flash. Right, if you're going to change the world you have to make something for everyone not for an elite few. But the other thing was we were all flash. There were a lot of other startups that were hybrids that were squeezing more out of the disk and we just went all flash from the beginning. Everything about us is all flash. So, as the future goes more and more towards all flash, we're in a stronger and stronger position. >> And you think that was the game changer that led Pure to be that unicorn that IPO'd four years ago versus those other startups who are trying to do similar things with flash? >> So, that focus helped us a lot with that. The biggest thing that, as I said before flash was a catalyst. The biggest thing we brought to the industry is the simplicity and the evergreen business model. And it's really cool to see all the big companies that we've competed against all these years mimicking a lot of that, but that's the differentiator. Flash was the catalyst that lets you do that. >> Well, so, I'm interested as a little bit of an industry historian and some of the factors that led to your ability to achieve escape velocity which used to be defined as an IPO. I mean, I would argue the 3PAR achieved its escape velocity, I was a $250 million company before it got acquired for 2.5 billion or whatever it was, never reached a billion never even came close. You were the first storage company since NetApp to achieve billion dollar revenue. And you're well on your way to 2 billion, you'll do probably 1.7 this year. In addition to what you've said are there other factors that we should consider in our B school case study on Pure? >> I think one of the things we've tried to do is we've tried to build a company that's going to be in it for that long term. So, we never wanted to settle for an acquisition. We want to build a long term enduring great brand and part of that you have to build more of a partnership with your customers. You have to be a good partner to your partners. Right, if you are short-term focused if you try to squeeze every dollar you can out of people, they don't like you, they don't want to come back. If you build something great and you partner well with the environment around you you can build something long lasting. And we wanted to do that from the beginning, we focused a lot on culture and things like that to help us do that. >> Well it's impressive, congratulations are in order, 'cause 3PAR couldn't do it, Compelling couldn't do it, Isilon, on and on and on. And and EMC at the time was really about EMC that's how you went after. They were able to do virtualization and freeze the market on 3PAR . They were able to do a low cost call it the compellant killer. They were never able to figure out, now maybe they got distracted with elliot management and everything else, but they were never able to figure out how to squash you guys. And that's impressive that you're able to live through that. >> Well, thanks. I mean one of the things we've always tried to do is be supremely disruptive, and that does make it harder for them. >> So, I got to ask I got to challenge you on a couple of things that have come out largely from your competitors but I want to get your take on it. The first one is scale out how come Pure doesn't scale out? I'll leave it there. I have my own thoughts that I've shared with Lisa but. Two controller design. >> Yeah one thing I'd point out is well, FLashBlade, one of our products, is scale out. Flash array, our first product, is not scale out. Scale out isn't a capability for a customer, it's an architecture in how you build the product. When I scale out I have more complicated software. I have more components. More components lead to more failures. Right, if I have a piece of memory and it's going to fail at a certain annual failure rate and I have 10 pieces of memory, I'm going to fail it 10 times that same rate. So, scale out introduces complexity, it introduces more components. And then you have to say what do you get from it. So, if our customers needed a lot more performance than we're delivering, if they needed a lot more scale than we're delivering in the flash array product, we'd then react to that and go build scale out. Where the flash array sells, we don't see that as a major market need, it's more of a niche. Where FlashBlade sells, then there is much more of a need for that and that's why FlashBlade was scale out from day one. >> Well my correct to that the other thing you get from scale out is non disruptive controller swaps but you've solved that in other ways right? >> You say you get non disruptive controller swaps, I will point out that if you look at these scale out architectures out there there's a set of them that do provide that, but actually the larger set of them don't provide it. Because what they're doing is they're making what they view and what the customer views as one monolithic array built from a set of scale out components. So, in those architectures you can't swap out one part of the scale out, you have to swap out the whole thing. >> The other thing I heard, I love this analogy is you don't really see planes anymore. You see them but you really don't want to fly 'em cause they're old with four engines versus two engines 'cause the two engine planes are so, much more reliable. All right the other question is on proprietary flash modules. You guys have chosen your philosophies, do things that you can't do with just off the shelf components. So, you've gone proprietary and this history there, I mean 3PAR with Custom ASICs but I'd like you to share with us your philosophy on what you're doing there. >> So, kind of, there's a couple dimensions to that. Number one, we have gone with proprietary flash modules but in our flash array, we could plug in off-the-shelf drives any time we want. And in fact today our XR2 line, the lower end models use off the shelf flash and the higher end models use the proprietary. What we get with the proprietary is our own firmware on there. Right, it's the same nanochips, the same nanocontrollers, it's all the same components but it's our firmware. And our firmware only has to support one application, our purity operating system. However the customer reads and writes data into the array, we write it the same way down to the flash. We read it back the same way from the flash. So, by making simpler firmware that only has to solve that one problem, we get better performance out of the flash. We get longer life out of the flash and we get order less that one third of the failures of flash drives. Now the flash drives we were using were already failing, a lot less than disk drives. But we've gotten better than three times the reliability by going to our own flash modules. >> Tiering, your philosophy on tiering. Five, 10 years ago there was a big thing on automated tiering, we're going to put the hot data on the high performance either disk or flash and the slow data on the cheap stuff. Your philosophy on tiering, I think I infer you don't believe in tiering. Why not? Or maybe I don't want to put words in our mouth. >> Well so, tiering is another thing that it adds complexity. So, why do you tier? You tier because you say oh I can't afford all of the better things so, I'm going to layer it in with something that's a little cheaper. If you can get by without tiering that's a better solution it's a simpler solution. >> Simplicity is a theme here. The copy of your acquisition your a file system guru to my knowledge what I've read about them, strong file system. What do you intend to do with that? it's concerned about it forking your existing products. How do you respond? >> So, the compuverde file system, we're going to put that on top of our flash array line and make that a unified architecture where you can support block in file. Compuverde is a very complete file protocol stack. And file protocols are a lot more complex than block protocols. Implementing all of the SMB protocol is not an easy thing it takes a bunch of time. So, it's a way to accelerate that and get a very complete protocol stack for that product. Flash blade will continue on with its own scale out file protocols, file and object protocols independent of that. >> Last question I had is on, there's some criticism that's been laid on you guys on the evergreen. The controller, performance of controller upgrades which I we have not heard, we didn't hear that from customers, we've asked some customers that, but I'd love to get your take on, why is there no guarantee of performance improvements as you go to subsequent controller swap outs. Your thoughts? >> So, what we guarantee is you'll get the like or better. So, you might get a new set of controllers that are perform about the same, you might get one a little better. Generally speaking every time we've done it so far it's moved to better. It doesn't move to radically better, but it moves to the better. So, we are guaranteeing that, it's just a question of how much do you chose to deliver with that. What you're doing is you're keeping the array new. It's not so much about making huge strides in the performance it's about keeping the array new. >> But there's another nuance there that I want to test I mean, just conceptionally it seems to me, because the way you ship software constantly that you're making incremental improvements throughout that three year period. First of all is that an accurate assertion? >> it's actually very accurate. The first time we started really looking at how much better we realized that we had moved the needle on the old gear about, I think it was about 60% up during the time period so, yeah there was sort of a little less gains. >> Okay, so, the proper measurement is okay from what's the performance from day one delta to the controller upgrade? That is more significant versus the controller swap day, whatever and plus one if that makes sense. >> Well, I think both are valid ways to look at it. The biggest thing is the customer doesn't have to migrate and the migrations are the most horrible event in storage. Right it's like moving your house for everyone who has moved, you got to pack everything up. Things could get broken things could get lost, it's just a mess. You don't have to do that and the array just gets bigger, denser, more power efficient it gets better and better over time. And you're on that forever, we are happy to do controller swaps after three years, six years, nine years, 12 years. We will continue to do that as long as customers are paying for that it's our job to keep improving it and to keep making it better. >> We've done a lot of research on array migrations. At a minimum, your anti to do a array migration is $50,000. That's what our data shows. We talk to a very large practitioner last night he said, "When I'm doing an array migration I start six "to eight months ahead of time because it takes that long "to do an array migration, array migrations are horrendous "and anything you can do to avoid those is worth it." So, that's all I had that awesome. Thank you for addressing those questions. >> So, the acceleration, pun intended, that Pure has achieved in its first 10 years we talk about customers all the time we've had a number on yesterday from law firms to utilities to F1, we'll have more on today. But in order to achieve what Pure has, you have had to build a culture that's pretty unique. One, this vibrant orange color that just screams energy, boldness too, we're in Austin, Texas, Dell Technology's backyard. Give us a little bit as we wrap here about how you and your co-founders have developed and really fostered this culture of passion that is delivering more than your competitors would like to see. >> Well, so, one of the things that was a key part of the culture is we didn't just hire a bunch of storage people. We had a few early on cause you need some experience in the history but an awful lot of the people we hired came from other backgrounds. Other engineers, marketing people, et cetera, they did not come from storage. And what we challenge people to do when they come in the door is we're hiring them because of their brain power, right. We don't own minimal rights somewhere, we don't have buildings we don't have a lot of assets. Our asset is our people and what they can produce. And obviously if you think back, well, when I was the only employee, right, I was doing every job. Ideally everyone we've hired since can do whatever we've hired them to do a lot better than I could do it. And that's a philosophy you want to keep going. Every person in Pure should be focused on using their brains, using their creativity to deliver the most value possible to disrupt things where they can, to always look for how we do things better, and to always be looking to hire better than them. >> So, it kind of gets into the next 10 years. Don't hate me for saying this but in retrospect the first 10 years you had it kind of easy. You caught EMC off guard, you drove a truck through their install base, NetApp miss flash. You guys executed obviously, we talked about that billion dollar company. Next 10 years, a little different. Where's the TAM expansion come from in the next 10 years? It's Multicloud, it's new AI workloads, it's lower cost solutions that get you more of the market, it's partnering with backup. But you got cloud, you got competitors that are starting to figure it out. How do you see the next 10 years to go from beyond where you are and that next pike. >> Well, so, I'll start by saying when you start a company, you dream of success and the first 10 years have been as good as you could possibly have dreamt. So, A, hopefully the next 10 years will continue that way. I think you touched upon one thing is the cloud. People have been through the hype cycle of saying the entire world is going to be cloud, there's only going to be three data centers in the world and it's going to be Amazon, Microsoft and Google. They now understand the cloud is a tool and you need to use it properly. So, one of the focuses we're going to be working on over the next several years is making sure that someone can have their data, their application on prem. They can decide I want to put it in the cloud. Move there seamlessly. Move there as easily as you move from one of your cell phones to the next model. Move from one cloud to another cloud. Move from that cloud back on prem. Whether you want to move the data, the applications, both and get the same kind of service, the same kind of experience. That's going to be a big thing. >> You got a lot of work to do there, but yeah. But there's an opportunity isn't there? >> It's the way everybody wants to run, it's the way everybody should run. Running an IT service to deliver value to your company, value to your organization should not be rocket science. And our job at Pure is to make that accessible to everybody so, everybody can deliver that kind of quality experience to their organization. >> And it's an obvious question but you see that as technically feasible over the next five to 10 years? >> Yeah it is technically feasible. This goes back to one of the things that I was mentioning before with flash as a catalyst. One of the thing flash helps do to make this simpler is it frees you from the geometry constraints of disk. You don't have to care as much. Another thing that's making it possible, is faster networking, right. And better networking. And then again you have all the compute and GPUs and co-processors and things pushing things. As you get to where resources are more plentiful, then you have the ability to trade off some of the I've got to get like every microsecond out of this thing for the simplicity, for that ease of use. And that lets you deliver something better in the long run. Right, if I perfectly tune something I might be able to do a little bit better but I'm not going to be able to keep it in tune and I'm going to spend my whole life retuning it and retuning it and finding it out of sync. Simplicity, that drives so much efficiency. Agility, that drives so, much value. >> Well, Coz, thank you so, much for joining Dave and me on theCUBE this morning from Accelerate day two. You talked about flash being a catalyst that sounds to me like Coz has been one of the major catalysts of Pure's success. Happy 10th anniversary, we look forward to the next 10. >> Thanks a lot and thanks for having me. >> For Coz and Dave Vellante, I am Lisa Martin, you're watching theCUBE from Pure Accelerate, 2019. (techno music)

>> from Austin, Texas. It's Theo Cube, covering your storage. Accelerate 2019. Brought to you by pure storage. >> Welcome back to the Q B. All the leader in live tech coverage. I'm Lisa Martin with David Dante. Couple of gents back on the Cube we have on Stuart the VP of technology for pure von. Welcome back. >> It's great to be here. Thanks for being accelerate. >> Were accepted severe. And we've got Carrie Stanton, VP of Global Biz Dev and corporate development from Theme Carrie, Welcome back. Thank you very much. I'm in the rain. I love the love it planned. Of course. Thank you. Very good branding here. Lots going on with theme and pure. Let's secure. Let's go ahead and start with you. Talk to us about the nature of the V Impure partnership. I'm assuming better together, but give us the breakdown. Sure, >> we've had a relationship for many years, but over the past three years we've seen it. You know, this year, counting this year, like the scale out is just unbelievable. We're growing at triple digits on our Cosell winds in the field, all of its writing, all of the predominantly being driven from the flash blade success that we've had in the marketplace, Our customers are buying into the performance that they have. Our our relationship is growing through joint innovation and joint development. And so what we've seen is raising them to a global partner, on having dedicated resources on it, as only amplified our success. We have. So yeah, it's fantastic. >> And then one from your perspective, what are some of the things that you are hearing? Are you guys being brought in? Maur from team customers is being being brought in more from pure side. What's that mixed like >> we've had? We've had a strong set of channel partners that I think promoting our joint solution on our products kind of a top of their line card. Of course, there's always the customer requested to get pulled in, and I think customers who have experienced either one of our products look at their satisfaction. They look extremely it, like NPS scores right and say, you know, if I'm a pure customer, there's a data protection company. That's gotta nps very similar years, you know, tell us more about what you're doing with with theme. If you look at kind of our common ethos. Right simplicity in the model right co innovation Help Dr Scale. Whether it's been through joint A P I integration with the universal adaptor or tryingto lean into next generation architectures like Flash to flash the cloud. It's just been a very easy progressive partnership to drive and bring in a market. >> Talk more about that joint development. Um, there's a start in the field. No engineering resource is I'd love to Have you had some color to that? >> I think I think I think it's >> a combination of. So we'll start with a universal adapter that was beams initiative to help add scale to the back of process to as you're putting virtue machines into backup mode along, you know, leverage these the storage controller snapshots so that you could come in and out of that back about very quick. V, invisible to production operations, offload a bunch of data processing and in time, out of the equation that just helps scale right back up, more virtual machines faster. That's a program that they initiated that we were one of the founding partners on one of the first partners to publish ah Universal adaptor, or R A p i for it. The >> results have been The results are pure is by far the number one partner for downloads for a customer downloads that we have across our partner Rico system. So we have a vote 15 partner Rico Systems that have written to the universal FBI on. So just last week, you know, over 3000 downloads surpassed over 3000 downloads. Here is 6500 customers. I'll let you do the math. All right, so it's it's great that we see such strong adoption from their customer base. Almost 50% of their customers are team customers on. Then that >> contusion. That's hi, >> It's very high. >> Wow. So give me your favorite customer example that really articulates the value that pure brings the value that being brings. >> We've got a lot going on in the financial space in the healthcare space. >> Butler Health is a joint customer that we have a customer reference win that they've published in that we've published on dhe obviously many, many more, but especially in the people, customers in the financial health care that are looking for performance on Dhe. Looking to that flash blade, a za landing zone that's going to give them more than just a backup target. It's going to give them the ability to leverage it for a I and ML and many other factors, which is again, one of the reasons why we've seen such strong adoption. >> You talk about health care, we're talking about patient data, lives at stake. Give me some of the meat about what this customer, for example, is achieving at the business. Subtle and the human lives level >> Well, I think what they're seeing is of what they were used. It's not so much the exact stats that I could give you down to how money they're getting per second, but it's what they were using before, which is one of the legacy competitors that we have, which we call. You know, some of these donors that they give to market share that we take away day in and day out with without saying names. But there was a reform replace that we came in and taking a second generation solution from a legacy hardware appliance that was being used previously in a secondary storage. >> Yeah, allow me to elaborate a bit, right? So you asked about the technology we kind of talked about the universal adapter for the off load where we've really seen growth has been in this notion of flash to flash the cloud and peers introduced this notion of rapid restore. So again, how do we grow our businesses together? Growing amore mission critical or patient? Critical deployments has been this notion of not just backing up the data faster. That's kind >> of the the >> daily repetitive task that no organization wants to to deal with. Where the rubber meets the road is Can you put the data back? And we've seen this explosion in the increase of of the capacity of data, set sizes and the pressure they put on restoring that data. When you happen to have, ah, harbor failure, a data center go off line or a power issue and this goes so you go back to patient records gotta be online when everything fails and there's an issue with a chair, whatever. Maybe how quickly can we get the data? And we're orders of magnitude faster, then the legacy >> platform. So having an integrated appliance is part of that key and co engineering. Is that right? I mean, you guys pure software no pun intended, right? You don't want to be >> No, no, it sze taking the they wrote to our a p I right So the work that they did on the FBI and then continue to innovate and iterated against it right and coming out with the next version that they just come out with it is, is just differentiating themselves in the marketplace. And that's really what we're seeing. And we're seeing that success that the enterprise today, from what we have without even looking forward to our upcoming V 10 which is gonna have some high end enterprise feature sets. >> And we want to get into that. But something that mom that you were just saying It's almost as if data protection is no longer just an insurance policy. It's an asset. We have to be able to get it back. >> Absolutely fuel, We believe if you look at the legacy backup appliances, they were designed and optimized for short backup windows and are proving to be a challenge at restoring the data, which is actually where the value in the architecture is. We've talked about rapid restore in bringing, flashing that space. We worked with team engineering on V 10 actually double that performance so that customers, as they upgrade their code line, can again bring those mission critical workloads back online even faster than in the past. In addition to that, we've worked through some of the VM integrations for customs who want to mind that data who want to clone those workloads and bring them up on online and ADM or analytics or searching the metadata of that data. So there's a lot going on besides just your backup and recovery. >> So you guys are saying, Chuck, the appliance don't need the appliance. You've got a better model. Is that what I'm hearing? Or >> we win against appliances day in and day out? So absolutely software. Best of breed software. Best of breed storage hardware. >> What should we expect for V 10 adoption there? You guys announced in the spring? >> Yes, and it will shift in Q four. Dave, honestly, this is gonna be Anton is gonna shit >> a good track record. They're gonna go out there. >> No, but we have some key features that will differentiate us in the marketplace, especially as we go to the enterprise with pier storage, such as immune ability right, So that's a feature that we've talked about. You know, we've been hyping because we believe in it that what it's gonna bring for the protection of ransom, where malware and it's it's gonna be a game changer. We believe in the marketplace and our famous now, as they were finally gonna support now support for their enterprise customer base. So, I mean, those two keep features in and of itself. So again, I talked about the scale that we're having today in the marketplace without these key enterprise features and then having those chip, you know, in the next 90 days are again we believe just gonna continue to elevate our business. >> We're talking to Charlie earlier today about just a CZ. Part of his job is tam expansion and data protection is an obvious area for that. You could have chosen to go buy a small software company, certainly have the cash on your balance sheet and compete. We have chosen to partner talk about the opportunity that you guys jointly see in terms of the market you can penetrate. >> I think it is such a Our ecosystem is so comprised today of partnerships that are based on. On one hand, you're partnering, and on the other hand, you're competing that it is. It is really refreshing to find a partnership like Veen, where we've got very clear lines of what our product offerings are, where they come together and no competitive obstacles. It makes partying in the field the easiest, right? We've got great partnerships across the board somewhere. Appliance vendors. Sometimes those partnerships work fast. Sometimes they running hurdles. We never run into a hurdle together, so it's worked very well. I think our partners, our channel partners, have preferences around the server side that they like to go to market with. We give them the freedom together to pick and choose. So they put invested class software with best class storage to to meet the needs. They put the rest together based on what fits their business model or their current agreements go forward. So >> clear, clear swim lanes, Big market. You guys showed some data at V Mon. I want to say Danny's data, maybe $15 billion Tim man larger. You guys get a piece of that, you get a piece of that >> on a savant said. It's just there's no there's no friction in the marketplace is going out and doing the work we need to do to win. But we never get it that Oh, we can introduce this because it's gonna compete with, even if it's only 2% of what they have, there's there's looting. No, they do not have data protection. And we don't do as, you know. We don't do hardware in storage. So again invested breeds. And I >> think those numbers maybe even conservative because, you know, as you were pointing out, the traditional backup products were designed to deal with the biggest problem, which was back up window, which, by the way, 60% of times the backup didn't work anyway. But you have to get inside of, you know, Yeah, we backed it up check. But backup is One thing is my friend Fred Morris. Recovery is everything. So things are shifting in a digital business recovery. You know, it is tantamount. You know, ever you can't ever not be without your data. So it's an imperative. Yeah, >> it's, um, when you're and the flashlight business unit first came up with the construct of a rapid restore. I mean, admittedly, I was sitting in the corner. I'm just saying there's no way. There's no way that a customer would look to pay a premium for Flash for their backup. And then you meet the customers and it's just one after the other. And there's these stories around. We had to stop production. We couldn't get the AARP back online. Right Way couldn't take transactions because the processing database of the purchasing database was off line and you're just sitting there going. These are really world right issues that impact revenue for organizations. And so we are going through an evolution about rethinking around data protection and what it means into in today's day and age. >> It's security. Such top of mind carry today on the CEO's mind and data protection is part of that. Backup is a key part of that. You think about Ransomware, right? You guys get solutions there. I mean, it all fits together. It's not these sort of bespoke, you know, ideas anymore. It's really one big mosaic so that people can drive their digital transformations. I mean, that's really what they care about. >> I think the themes, old slogan, it just works right. It continues to evolve and that you talked about backup not working in the first place, right? So we have our core fundamental foundations. That theme has right is that it will trust that the customer will know that it will be online. We have the shortest r p o r t o is right in the marketplace, and then you take that and the's enterprise class features again. That's why marrying it with Piers route to market and there go to market strategy is having the success we're having in the marketplace. >> You're hearing a lot from customers. Flash Flash MacLeod. This is There is a very strong need for this. Some of the things that were announced today terms up some more firsts that piers delivering to the market. What are some of the things that you guys were? You maybe Carrie. We'll start with you from themes partnership perspective like a flash Teresi, for example, or starting to be able to deliver. I saw Blake smiles, uh, be ableto bring the cost down so that customers could look at putting a spectrum of workloads, even backups on flash. What is themes? Reaction? Well, smiles. I tend to >> do with Lisa, but I mean, to be honest with you. We sit back and love everything that piers doing from innovation. And so if they're going to come out with a broader set of target solutions for secondary storage, then we're going to be there partner there as we are with flashlights. So we're sitting back and loving the innovation that they're bringing to the market place and to their customers. >> I saw that Cheshire cat grin von >> s o for the audience who may be missed. We had a number of product announcements this morning taking the flash ray from a single product line into a portfolio going to that two year zero workload with the direct memory cache acceleration powered by Intel's often products as we go into a chair to economic space but still keeping all the Tier one features and availability we not flash or a C, which is leveraging QSC is a storage medium. Uh, while we have a design, do expand our tam and find new workloads. We have not looked at backup for the flash rate. See, at this point the flash, the flash, the cloud powered by the data hub in the rapid restore is going strong, so you want to kind of keep the team focused on that? And we've got other markets that we have yet to penetrate that have been more price sensitive where we think the flash racy is a better alignment. Now again, maybe over time I'll be found wrong and we'll change our tune. But you know, I'll give an example. Go back to Ransomware. Ransomware is a top three question in terms of any storage conversation. When you deal with a financial institution today to the point where not only are they asking about, what are you doing in your products? What are you doing across your partner ecosystem? Some of the modern proof of concepts required it to go through a ransomware recovery procedure because you know these financial institutions, they're worried about getting not just locked out, but locked out on your H a sight because you just replicated the ransomware over. So this this ability have immutable, immutable image to bill to bring it back online fast a rapid restored somewhere. You could see what these technologies start to line up in a comprehensive solution for the customers, and so flash racy is great. It has nowhere. The band with a flash blade. So we're gonna try to keep those a separate products in different markets at the time. But at least for time being, >> thanks for clarifying >> that cloud. I gotta ask the quad cloud question. It's interesting you guys have both embraced. Cloud is you're seeing it. In the old days, I was saying, I think I'm saying Charlie again. Executives were like, No, don't do that. It's gonna kill us. But now it's okay. It's not a zero sum game. That trend is your friend. You gotta embrace it. How are you making cloud each of you a tailwind versus the You know what all the analysts expect ahead, What else gets going? Zero sum game is going to steal from a to B. >> Well, I mean, Dave, you can imagine from my vantage point, it's easy to say that we're looking at Cloud is just, you know, expanding the TAM, expanding the ecosystem features we have today at the archive here. The success we're having with both Microsoft Azure and eight of us are phenomenal. Growing 40% month over month, right, the adoption with all the new innovations that Danny and Antonio have talked on the show that were coming out with envy. 10 are only gonna amplify that. But it all starts back with our partners ships today that we have one private clouds and as customers are looking to evolve to the cloud So we work with our partners like peer to ensure that we're working with them today. And as customers want to embrace the cloud they can. But predominantly, those primary workloads are still remaining on Prem and they're looking on how they're going to support the cloud. And we're doing that today and we'll be doing that. Maura's we go forward >> block storage announcement you guys made today was quite interesting way now spinning up East End shoes and s threes And what >> So this morning we announced general availability for pure Claude Block store on AWS and plans, as we are currently in beta and development for other clouds. But the folks today is this AWS and you pair Claude Block store, which is basically the software of a flash ray architect for the hardware inside of a W s so that you have the same functionality and service that you have on Prem and you pair that with pure is a service, which is our op X moderate could pay as you consume and the flexibility of sign a 12 month contracts. You want 90% on Prem today in 10% of cloud two months from now, you want it 50 50 like used the utility model to consume wherever you want, so you can meet the requirements of your infrastructure, whether it's on Prem in the cloud or some hybrid combination. >> But the interesting thing to me was your doing a lot of the heavy lifting for the customers with regard to the architecture. What you architect in the club that I wonder. Is there an opportunity to do something like that with backup? Or is that just, you know, not economical, deep, deep archive, things like that? I mean, >> I'm pretty sure we're told not to make any news right now because >> stay tuned. I've already said >> too much, so I'm probably a >> good thing. We're live >> in big trouble. >> Wow, guys. So the 1st 10 years of pure, tremendous amount of innovation is, Charlie said, an overnight success in 10 years, so much more coming down. We've already heard about a tremendous amount of innovation and evolution today. So we can't wait to have you guys back on to the next event in here. Get our neck braces on for the whiplash of news that's gonna be coming at us. All right. We are like your day Volante. I'm Lester Martin. Go pats. >> You're sorry. And Bruce. Carrie and I were crazy >> sports fans. Let's just be very PC. Go, everybody. Everybody gets participation. Trophies just coming anyway. You're watching the Cube. Lisa Martin for day, Volante. Thanks for watching.

>> from Austin, Texas. It's Theo Cube, covering pure storage. Accelerate 2019. Brought to you by pure storage. >> Welcome back to the Cube. The leader in live tech coverage. Lisa Martin and David Lantz wrapping up day one of our coverage of pure accelerate. 2019. Howdy. How do y'all Hey, I >> think I started a trend. >> I think you did. So, Dave, this has been a dice shot out of a cannon. I think, as only you know, pure does. Well, we had lots of conversations. Lots of news this morning, Which was nice to hear. As pure welcomes their 10th anniversary in a couple of weeks. We talked with customers. We talked in many different industries partners, Puritans. Lots of innovation has occurred in their 1st 10 years. Charlie got up on stage this morning. Then he came to the Cube and talked about this modern data experience and the 10 X improvements and many things that they're gonna deliver. Not in the next 10 years. In the next few years. >> Yes. So we're seeing a story of growth here. It's a theme. If you look read yours press releases, they start The first line is the only storage company that's growing, which is true, at least the storage company of size of a billion dollar plus storage company and talking a lot about modern storage. To me, it's a story of entering new markets their second decade tam expansion into new ai ai workloads. Certainly the cloud trying to make the cloud of a tailwind. We have just heard from Carrie Stanton of'em Data protection is an area. You know, years ago, Uh, I remember talking to executive at Netapp Tom George and saying, Hey, we're gonna buy ah, storage backup cos you know, we're gonna preserve our partnerships with whomever con vault and Veritas in vino, whoever they're working with time and you see pure taking a similar strategy E M. C at the time did something different. They vertically integrated. They they bought a company called Llegado. They integrated into compete. And of course, now they're that sort of their stack. And so, if you were small enough now still close to $2 billion at the at the end of this fiscal year that they don't have to necessarily vertically integrate, we'll see 10 Next 10. That's the third decade, what happens there and in the customer input you're seeing. Customers are continuing to invest in pure. They're very happy. What you've seen, Lisa is customers look at pure is shifting. And I said this on the Cube earlier shifting labor in tow. Pure czar and D. Now the hyper scale is like Amazon. They'll spend time of engineering time to save money. I t practitioners of the enterprise. They'll spend money to save time and so they will happily spend money on on products if they can lower the IittIe labor costs. So totally different mindsets and you're you're seeing that's taking hold and pure really has done a great job of that. Now, as I said in my my breaking analysis, you know, a couple weeks ago, analyzing the vendors pure, clearly growing. But these things go in cycles, right? There's hard compares. You're going to see. I guarantee you're going to see these other companies, you know, chewing their models. They're big, pure talks about 10 X. The reality is, you know, Delhi emcees 10 x the size of pure right, so they throw a farm or cash on. So if you're a big whale with a big install base, that's what you do, You mind it If you're pure and you're smaller, you're 1.51 point seven billion. You go hunting. And that's the dynamic worse we're seeing. I don't see that changing dramatically for quite some time until the economy shifts and in the mindset shifts and when. Then we'll see how pure adjusts its business model from, perhaps growth to more profitability. >> And speaking of growth, they're just coming off a very successful second quarter where they announced last month in August, 28% year on year, both adding about seven that new customers a day. A lot of that attributed to innovation and the channel. They did a good job in the last 18 months or so of pivoting. They're smaller medium customer business to the channel, allowing peer to focus on much more enterprise focus. And they actually I think, even in queue to close 50% more multi $1,000,000 deals this last quarter >> and well, and while those seem like great numbers, they actually the stock got hit after the quarter. Why? Because they lowered guidance. Why, Because of this NAND pricing confusion, Nan pricing drops so fast in the quarter faster. They expected it sort of hurt revenues a little bit. They expect that that softness that continue. So they've been conservative going for it. You know, who knows of this smart to be conservative cause I wouldn't say that they're sandbagging. I say they're being conservative, you know, makes a bigger question. You know, it's storage kind of a crappy business, and we'll see. I say, that is, if you're gonna win in storage right these days, you have to gain share. Pure is gaining share della. 0% growth appears to be gaining share 0% growth. It's not a great market. So what's happening, we don't really know is cloud siphoning off demand for the traditional on Prem surgeon Could be. Can these companies make cloud a tailwind or is cloud a zero sum game? I tend to think long term, the Maur cloud, the worse it is for on Prem. So that's why everybody's scrambling for this multi cloud strategy, which is very, very early days. Multi cloud today is largely a a symptom of multi vendor versus you know, a coherent user strategy with right we're management's. Now the Big Five are trying to change that pure is playing its role. Companies like Veum and others are playing their role, so we'll see how that plays out. I do think there's a clear opportunity and multi cloud, but, um, it you know, it's unclear how large that is or whether it's just going to be a series of horses for courses. In other words, the right strategic fit for the right workload. >> So your thoughts on the evolution of their AWS partnership really looking at what they're now doing with eight of us as this bridge toe hybrid cloud customers of choice on from hosted, you know, as a service public cloud your take on this forcing function of bringing pure and AWS together of the customer base. >> Yeah, I think it's actually pretty clever. Move by pure take their engineering. It's okay. We're gonna settle, do all the heavy lifting set up AWS with e c two priority E. C. Two instances networking we're gonna mirror. We're gonna the architect of the basically block storage inside of eight of its front ending s three, which is the cheap object store? Pretty innovative. What it does is it gives customers an option for hire availability block storage that looks like pure but runs on AWS in the cloud. Very clever. And so all the advantages of OPEC's versus cap ex. You know the cloud experience, but it's the pure management experience. Eso very clever. Give pure customers who were happy. An option is there. I'm sure they're hearing from the customers. Hey, we want to go to the cloud where we heard it from the the eight of us Speaker today. Gardner Data. 88% of customers have a cloud first strategy, but 86 continue to spend on print. Right? Okay. So smart by pure to do that, I don't know how big a business that's gonna be, but it's a nice hedge. In case that really, that trend takes off >> and your thoughts on one of the other announcements today. Another first rip your We've talked about that the number of times they have there been first in a lot of things in the last 10 years transitioning offering most of their portfolio as a service and your perspective against the other competitors that you mentioned. How do you see that? >> Yeah, you know, the first your lips, they're bigger than the small companies that people have never heard of, like Zadar, a storage who actually were probably one of the first. But but they're the first again $1,000,000,000 plus company to do this. That's what customers want Customers want. The cloud experience in a big part of that cloud experience is a pricing model in the utility model. That's cloud like when AWS announced outposts, it was a clear sign that the industry had had to respond. I'm not saying this is a response to Outpost, but it's clearly a response to the cloud model so paid by the drink. You know, Op X versus cap packs of being able to have that cloud pricing model and experience across the portfolio is goodness. >> So Charlie, their CEO, talked about this morning, this modern data experience going into the next decade, it's gonna be three. Us is simple, seamless, sustainable. We all want that. I think for anything in life, your take on that from marketing to reality >> I see is anything but simple. Let's be honest. It's seamless is probably the most overused word in a >> knot. I think in future proof >> it's the chance to say that and sustainable >> eh? Well >> sustained from the standpoint, what I love about the model is way. Heard this in the customer today. Well, you know, the five year TCO was kind of a wash, but then beyond five years, it was a no brainer because we're now in that subscription model. So I guess that's that's the sort of sustainability you think its sustainability in different ways. You know, green, I t >> right >> again. I t is not really green. So, you know, good marketing. >> Well, we heard from I think we had three or four customers on today with four to legal firms, one in New Zealand, one in the States we heard from a utility company out of Tulsa, Oklahoma, and then Mercedes AMG, Petunias Motor Sport. Formula One free, very different industries, similar stories in terms of the management simplicity of pure the evergreen model of being able to swap out and take advantage of those innovations and the things that Piers is doing the r and d on from a cost perspective. But I think those were three kind of common business and I t benefits that I heard articulated by three very different industries of very different sizes. >> I mean, I think it's important. Remember, you get a really effusive commentary from the pure customers, and I'm not trying to B B negative on that. They're very, very clear that companies like pure Nutanix cohesive the rubric wien. They have great customer experiences, and they're different than what companies air used to buying very often. Having said that, when we get these, when we get into these, you know, benefit, cost benefit discussions Typically you're you're you're comparing a modern, you know, circa 2019 platform with something that's, you know, five years old, so you better have a significantly better metrics again. Having said that, you're seeing a different experience, and that's clearly coming through in the customers that you talk to with pure. They started with a clean sheet of paper, didn't have a lot of technical debt, not a lot of baggage, that alone some really smart people that, you know, in Silicon Valley, you know, inundated with all this cloud stuff, and then they brought it forth very hard to build a billion dollar storage company. Pure was the 1st 1 since Netapp. So >> that was a couple of guys going >> to do it compelling couldn't do it. Equal logic couldn't do it after you've never heard of half of these companies, right? It's been it's been many, many years, decades since you saw a billion dollar storage company. That's how hard it is and to achieve escape velocity and fewer did it, which is quite a feat. And now that now the challenge is their market cap. It's so large that four and 1/2 1,000,000,000 and growing right ostensibly that they may be become acquisition proof. Okay, that's a good thing on the one hand, cause we love independent companies. On the other hand, at some point, the Tam Tam expansion within that little niche gets very difficult. That's why, for example, e M. C. Had to go out and buy a company like Llegado, and it made some actually, you know, some other crappy Apple acquisitions that didn't work out. And then they stumbled into VM, where it was gonna part of a TAM expansion strategy, and they lucked out because they the greatest acquisition in the history of I T. But I guess my point is at some point, a billion dollar company becomes a $2 billion company. Maybe give becomes a $5 billion company, and then it's like, OK, what do we do next? How do and you're seeing that app is in there now. Netapp is a growth challenge, Um, and a Tam expansion challenge. But it's too big to get acquired. There were years for their. For years. There were rumors about Cisco required, kept the stock up. It never happened. So stock buybacks tuck in acquisitions, you know, refresh of the portfolio, squeezing out a little bit of growth, some bad quarters. You know, that's That's the nature of the big company so pure at some point we'll hit that, but I think we're a couple of 1,000,000,000 away. >> They have also done a robust job of building a robust partner ecosystem. We talked to a number of them today, Cisco in video we had on the team. Tomorrow's Blanc is on in terms of this growth that you talked about, How well positioned are they with with the strategic and technology partnerships that they are not only building but evolving quite quickly? Where does that factor into your thoughts about their future in the next decade? >> I think, um, I think the key to that is their architecture. In terms of their AP, I, uh, framework. It makes it easy to integrate. Wait, Um and to the extent that they continue to grow, the customers buy their products, loved their products. The high end p s scores all that stuff, it's easier to have a NPS score when you're a billion dollar company is when you're, you know, $50 billion company. But are you with a big portfolio? But customers, clearly you're has momentum. People want to be with a winner. If yours a winner there. Architectures easy to integrate. Relatively speaking. Thio, You know the legacy vendors and it's clean across the portfolio. And so that's that's why I think the ecosystem continues to grow. I'd like to see more growth, you know, I remember service now when they were a billion dollar company and thinking, Wow, it was about this size, you know? Now you go to service now. I mean, you see the big, uh s eyes. You see a lot of niche players bumping into him or jumping up. I'd like to see that here, and I think it will continue. >> Well, this is certainly ah good chunk larger than last year's accelerate, which was about a year and 1/2 ago. And look where we are, Dave, We're in Austin. This is Dell's backyard. This is a bold company. I was telling you earlier today when I was doing some research for our guests, something that catches my attention as a marketer that many companies cannot d'oh and that is very bold and very direct against their competitors and tell customers this is why you should be buying us. I applaud that as a marketer, and as somebody who gets to interview folks on the Q, because it's hard to do. They have this bullish culture that they've always had, and they have grown in the last 10 years. We're seeing expansion, and we're seeing them not afraid to tackle anybody that their customers are looking at. >> So I want to talk about some of the industry dynamics as well. The I T industry loves a vacuum, and I think in some respects the acquisition of the EMS see by Del created a vacuum and pure is taking advantage of that now. For a while, Gel took its eye off the ball and was storage business was affected, and then they got their act together. And now it's 0% growth. It's it's Yeah, okay, I'd like to see better growth there, but they've been doing a lot of work, and pure is referenced this and some of the pressure. This is Dallas consolidating its portfolio, which is exactly the right thing to do. Deli emcees Portfolio is way too complicated, but you have to be careful. You can't just consolidate overnight because you're alienating your customers. So there's still some of that going on. The linchpin of Del strategy is VM wear. That is the key. That's where the future is for those guys. So when AMC was an independent storage company, it would fight tooth and nail. You know, Jeremy Burton was gonna take out net app, and he didn't do it. You have all these crazy videos and they, you know, they were focused, competitive oriented company that loved its customers and was very customer focused in many respects. I mean, they're still competitive, very competitive, but they're not that independent, pure play anymore. It's now it's netapp and pure, and I feel like net episode distracted, you know, with some of the struggles that pure is really, you know, has an opportunity. You know, I I remember Scott decent years and years and years ago told me when they were nobody said We think we could be the next TMC in storage. And I was like, Really? That's a amazingly bold statement when it appeared that the storage industry was kind of disappearing and everybody was getting acquired and it was becoming this vertically integrated converged infrastructure player with storage and networking and service. And that still may happen. A cloud, everything else, Um, but, you know, if you're has an opportunity to really become the leader in in this business in, you know, has an opportunity become the number one storage company takes some time, Uh, for a while. I question is, it doesn't really make sense to have independent stores, But you still see a lot of innovation. Certainly the backup vendors startups, you know, you see smaller companies, VC money still coming in back to something you said earlier. I t generally, and storage specifically really isn't simple. It's very complicated, and it's very hard. >> Well, Dave, we have had a great first day. I'm excited to work with you tomorrow. We've got cause coming on. Kicks coming on some more customers. Lots of good stuff in store for day two. >> All right, Cool. >> Likewise for David. Dante. I'm Lisa Martin. You're watching the Cube, the leader in live coverage.

>> from Austin, Texas. It's Theo Cube, covering pure storage. Accelerate 2019. Brought to you by pure storage. >> Welcome to the Cube. The leader in live tech coverage covering up your accelerate 2019. Lisa Martin with Dave Ilan in Austin, Texas, this year. Pleased to welcome a couple of guests to the program. Please meet Charlie Boyle, VP and GM of DJ X Systems at N Video. Hey, Charlie, welcome back to the Cube, but in a long time ago and we have Brian Schwartz, VP of product management and development at your brain. Welcome. >> Thanks for having me. >> Here we are Day one of the event. Lots of News This morning here is just about to celebrate its 10th anniversary. A lot of innovation and 10 years. Nvidia partnerships. About two is two and 1/2 years old or so. Brian, let's start with you. Give us a little bit of an overview about where pure and and video are, and then let's dig into this news about the Aye aye data hub. >> Cool, it's It's been a good partnership for a couple of years now, and it really was born out of work with mutual customers. You know we brought out the flash blade product, obviously in video was in the market with DJ X is for a I, and we really started to see overlap in a bunch of initial deployments. And we really realized that there was a lot of wisdom to be gained off some of these early I deployments of capturing some of that knowledge and wisdom from those early practitioners and being able to share it with the with the wider community. So that's really kind of where the partnership was born going for a couple of years now, I've got a couple of chapters behind us and many more in the future. And obviously the eye data hub is the piece that we really talked about at this year's accelerate. >> Yeah, areas about been in the market for what? About a year and 1/2 or so Almost >> two years. >> Two years? All right, tell us a little bit about the adoption. What what customers were able to dio with this a ready infrastructure >> and point out the reason we started the partnership was our early customers that were buying dejected product from us. They were buying pure stored. Both leaders and high performance. And as they were trying to put them together, they're like, How should we do this? What's the optimal settings? They've been using storage for years. I was kind of new to them and they needed that recipe. So that's, you know, the early customer experiences turned into airy the solution, and, you know, the whole point of this to simplify. I sounds kind of scary to a lot of folks and the data scientists really just need to be productive. They don't care about infrastructure, but I t s to support this. So I t was very familiar with pure storage. They used them for years for high performance data and as they brought in the Nvidia Compute toe work with that, you know, having a solution that we both supported was super important to the I T practitioners because they knew it worked. They knew we both supported it. We stood behind it and they could get up and running in a matter of days or weeks versus 6 to 9 months if they built it >> themselves. >> You look at companies that you talk to customers. Let's let's narrow it down to those that have data scientists least one day to scientists and ask him where they are in their maturity model, if one is planning to was early threes, they got multiple use cases and four is their enterprise wide. How do you see the landscape? Are you seeing pretty aggressive adoption in those as I couched it, or is it still early? >> I mean so every customers in a different point. So there's definitely a lot of people that are still early, but we've seen a lot of production use cases. You know, everyone talks about self driving cars, but that's, you know, there's a lot behind that. But real world use cases say medicals got a ton? You know, we've got partner companies that you are looking at a reconstruction of MRI's and CT scans cutting the scan time down by 75%. You know, that's real patient outcome. You know, we've got industrial inspection, we're in Texas. People fly drones around and have a eye. Models that are built in their data center on the drone and the field operators get to re program the drones based on what they see and what is happening. Real time and re trains every night. So depending on the industry really depends on where people are in the maturity her. But you know, really, our message out to the enterprises are start now. You know, whether you've got one data scientist, you've got some community data scientists. There's no reason to wait on a because there's a use case that work somewhere in your inner. >> So so one of the key considerations to getting started. What would you say? >> So one thing I would say is, look any to your stages of maturity. Any good investment is done through some creation of business value, right? And an understanding of kind of what problem you're trying to solve and making sure it's compelling. Problem is an important one, and some industries air farther along. Like you know, one of the ones that most everybody's familiar with is the tech industry itself. Every recommendation engine you've probably ever seen on the Internet is backed by some form of a I behind it because they wanted to be super fast and, you know, customized to you as a user. So I think understanding the business value creation problem is is a really important step of it and many people go through an early stage of experimentation, data modeling really kind of, say, a prototyping stage before they go into a mass production use case. It's a very classic i t adoption curve. Just add a comment to the earlier kind of trend is it's a megatrend. Yes, not everybody is doing it in massive wide scale production today. There's some industries that are farther ahead. If you look forward over the next 15 to 20 years, there's a massive amount of Ai ai coming, and it's a It is a new form of computing, the GPU driven computing and the whole point about areas getting the ingredients right. Thio have this new set of infrastructure have storage network compute on the software stack all kind of package together to make it easier to adopt, to allow people to adopt it faster because some industries are far along and others are still in the earlier stages, >> right? So how do you help for those customers and industries that aren't self driving cards of the drones that you talked about where we use case, we all understand it and are excited about it. But for other customers in different industries. How do you help them even understand the A pipeline? And where did they start? I'm sure that varies very >> a lot. But, you know, the key point is starting a I project. You have a desired outcome from Not everything's gonna be successful, but you know Aye, aye. Projects aren't something that it's not a six month I t project or a big you know, C r m. Refresh it. Something that you could take One of our classes that we have, we do a lot of end user customer training are Deep Learning Institute. You can take 1/2 day class and actually do a deep learning project that day. And so a lot of it is understanding your data, you know, and that's where your and the data hub comes in, understanding the data that you have and then formulating a question like, What could I do if I knew this thing? That's all about a I and deep learning. It's coming up with insights that aren't natural. When you just stare at the data, how can the system understand what you want? And then what are the things that you didn't expect defined that A. I is showing you about your data, and that's really a lot of where the business value comes. And how do you know more about your customer? How do you help that customer better, eh? I can unlock things that you may not have pondered yourself. >> The other thing. I'm a huge fan of analogies when you're trying to describe a new concept of people. And there's a good analogy about Ai ai data pipelines that predates, Aye aye around data warehousing like there's been industry around, extract transformers load E T L Systems for a very long period of time. It's a very common thing for many, many people in the I T industry, and I do think there's when you think about a pipeline in a I pipeline. There's an analogy there, which you have data coming in ingress data. You're cleansing it, you're cleaning it. You're essentially trying to get some value out of it. How you do that in a eyes quite a bit different, cause it's GP use and you're looking, you know, for turning unstructured data into more structure date. It's a little different than data. Warehousing traditionally was running reports, but there's a big analogy, I think, to be used about a pipeline that is familiar to people as a way to understand the new concept. >> So that's good. I like the pipeline concept. One of the one of the counters to that would be that you know, when you think about e. T ells complicated process enterprise data warehouses that were cumbersome Do you feel like automation in the A I Pipeline? When we look back 10 years from now, we'll have maybe better things to say than we do about E D W A R e g l. >> And I think one of the things that we've seen, You know, obviously we've done a ton of work in traditional. Aye, aye, But we've also done a lot in accelerated machine learning because that's a little closer to your traditional Data analytics and one of the biggest kind of ah ha moments that I've seen customers in the past year or so. It's just how quickly, by using GPU computing, they can actually look at their data, do something useful with it, and then move on to the next thing so that rapid experimentation is all you know, what a I is about. It's not a eyes, not a one and done thing. Lots of people think Oh, I have to have a recommend er engine. And then I'm done. No, you have to keep retraining it day in and day out so that it gets better. And that's before you had accelerated. Aye, aye pipeline. Before you had accelerated data pipelines that we've been doing with cheap use. It just took too long so people didn't run those experiments. Now we're seeing people exploring Maur trying different things because when your experiment takes 10 minutes, two minutes versus two days or 10 days, you can try out your cycle time. Shorter businesses could doom or and sure, you're gonna discard a lot of results. But you're gonna find those hidden gems that weren't possible before because you just didn't have the time to do >> it. Isn't a key operational izing it as well? I mean again, one of the challenges with the analogy that you gave a needy W is fine reporting. You can operationalize it for reporting, and but the use cases weren't is rich robust, and I feel as though machine intelligence is I mean, you're not gonna help but run into it. It's gonna be part of your everyday life, your thoughts. >> It's definitely part of our everyday lives. When you talk about, you know, consumer applications of everything we all use every day just don't know it's it's, you know, the voice recognition system getting your answer right the first time. You know there's a huge investments in natural language speech right now to the point that you can ask your phone a question. It's going through searching the Web for you, getting the right answer, combining that answer, reading it back to you and giving you the Web page all in less than a second. You know, before you know that be like you talked to an I. V R system. Wait, then you go to an operator. Now people are getting such a better user experience out of a I back systems that, you know over the next few years, I think end users will start preferring to deal with those based systems rather than waiting on line for human, because it'll just get it right. It'll get you the answer you need and you're done. You save time. The company save time and you've got a better outcome. >> So there's definitely some barriers to adoption skills. Is one obvious one the other. And I wonder if Puritan video attack this problem. I'm sure you have, but I'd like some color on it. His traditional companies, which a lot of your customers, their data is in pockets. It's not at the core. You look at the aye aye leaders, you know, the Big Five data their data cos it's at the core. They're applying machine intelligence to that data. How has this modern storage that we heard about this morning affected that customers abilities to really put data at their core? >> You know, it's It's a great question, Dave and I think one of the real opportunities, particularly with Flash, is to consolidate data into a smaller number off larger kind of islands of data, because that's where you could really drive the insights. And historically, in a district in world, you would never try to consolidate your data because there was too many bad performance implications of trying to do that. So people had all these pockets, and even if you could, you probably wouldn't actually want to put the date on the same system at the same time. The difference with flashes as so much performance at the at the core of it at the foundation of it. So the concept of having a very large scale system, like 150 blade system we announced this morning is a way to put a lot of the year and be able to access it. And to Charlie's point, a lot of people they're doing constant experiment, experimentation and modeling of the data. You don't know that how the date is gonna be consumed and you need a very fast kind of wide platform to do that, Which is why it's been a good fit for us to work together >> now fall upon that. Dated by its very nature. However, Brian is distributed and we heard this morning is you're attacking that problem through in a P I framework that you don't care where it is. Cloud on Prem hybrid edge. At some point in time, your thoughts on that >> well, in again the data t be used for a I I wouldn't say it's gonna be every single piece of data inside an organization is gonna be put into the eye pipeline in a lot of cases, you could break it down again. Thio What is the problem? I'm trying to solve the business value and what is the type of data that's gonna be the best fit for it? There are a lot of common patterns for consumption in a I AA speech recognition image recognition places where you have a lot of unstructured data or it's unstructured to a computer. It's not unstructured to you. When you look at a picture, you see a lot of things in it that a computer can't see right, because you recognize what the patterns are and the whole point about a eyes. It's gonna help us get structure out of these unstructured data sets so the computer can recognize more things. You know, the speech and emotions that we as humans just take for granted. It's about having computers, being able to process and respond to that in a way that they're not really people doing today. >> Hot dog, not a hot dog. Silicon Valley >> Street light. Which one of these is not a street lights and prove you're not about to ask you about distributed environments. You know customers have so much choice for everything these days on Prem hosted SAS Public Cloud. What are some of the trends that you're seeing? I always thought that to really be able to extract a tremendous amount of value from data and to deliver a I from it you needed the cloud because you needed a massive volumes of data. Appears legacy of on print. What are some of the things that you're seeing there and how is and video you're coming together to help customers wherever this data is to really dry Valley business value from these workloads, >> I have to put comments and I'll turn over to Charlie. So one is we get asked this question a lot. Like where should I run my eye? The first thing I always tell people is, Where's your data? Gravity moving these days? That's a very large tens of terror by its hundreds of terabytes petabytes of data moving very large. That's the data is actually still ah, hard challenge today. So running your A II where your date is being generated is a good first principle. And for a lot of folks they still have a lot on premise data. That's where their systems are they're generating the systems, or it's a consolidation point from the edge or other other opportunities to run it there. So that's where your date is. Run your A I there. The second thing is about giving people flexibility. We've both made pretty big investments in the world of containerized software applications. Those things are things that can run on grammar in the cloud. So trying to use a consistent set of infrastructure and software and tooling that allows people to migrate and change over time, I think, is an important strategy not only for us but also for the end users that gives them flexibility. >> So, ideally, on Prem versus Cloud implementations shouldn't be. That shouldn't be different. Be great. It would be identical. But are they today? >> So at the lowest level, there's always technical differences, but at the layers that customers are using it, we run one software stack no matter where you're running. So if it's on one of our combined R E systems, whether it's in a cloud provider, it's the same in video software stack from our lowest end consumer of rage. He views, too. The big £350 dejected too you see back there? You know, we've got one software stack runs everywhere, And when the riders making you know, it's really Renee I where your data is And while a lot of people, if you are cloud native company, if you started that way, I'm gonna tell you to run in the cloud all day long. But most enterprises, they're some of their most valuable data is still sitting on premise. They've got decades of customer experience. They've got decades of product information that's all running in systems on Prem. And when you look at speech, speech is the biggest thing you know. They've got, you know, years of call center data that's all sitting in some offline record. What am I gonna do with that? That stuff's not in the cloud. And so you want to move the processing to that because it's impossible to move that data somewhere else and transform it because you're only gonna actually use a small fraction of that data to produce your model. But at the same time, you don't want to spend a year moving that data somewhere to process it back the truck up, put some DJ X is in front of it. And you're good to go. >> Someone's gonna beat you to finding those insides. Right? So there is no time. >> So you have another question. >> I have the last question. So you got >> so in video, you gotta be Switzerland in this game. So I'm not gonna ask you this question. But, Brian, I will ask you what? Why? You're different. I know you were first. He raced out. You got the press release out first. But now that you've been in the market for a while what up? Yours? Competitive differentiators. >> You know, there's there's really two out netted out for flash played on why we think it's a great fit for an A i N A. I use case. One is the flexibility of the performance. We call multi dimensional performance, small files, large files, meditated intensive workloads. Flash blade can do them all. It's a it's a ground up design. It's super flexible on performance. And but also more importantly, I would argue simplicity is a really hallmark of who we are. It's part of the modern date experience that we're talking about this morning. You can think about the systems. They are miniaturized supercomputers And yes, you could always build a supercomputer. People have been doing it for decades. Use Ph. D's to do it and, like most people, don't want to happen. People focused on that level of infrastructure, so we've tried to give incredible kind of capabilities in a really simple to consume platform. I joke with people. We have storage PhDs like literally people. Be cheese for storage so customers don't have to. >> Charlie, feel free to chime in on your favorite child if you want. I >> need a lot of it comes from our customers. That's how we first started with pure is our joint customers saying we need this stuff to work really fast. They're making a massive investment with us and compute. And so if you're gonna run those systems at 100% you need storage. The confusion, you know, pure is our first in there. There are longest partner in this space, and it's really our joint customers that put us together and, you know, to some extent, yes, we are Switzerland. You know, we love all of our partners, but, you know, we do incredible work with these guys all up and down the stack and that's the point to make it simple. If the customer has data we wanted to make be a simplest possible for them to run a ay, whether it's with my stuff with our cloud stuff, all of our partners, but having that deep level of integration and having some of the same shared beliefs to just make stuff simple so people can actually get value out of the data have I t get out of the way so Data scientists could just get their work done. That's what's really powerful about the partnership. >> And I imagine you know, we're out of time, but I imagine to be able to do this at the accelerated pace accelerated, I'm gonna say pun intended it wasn't but, um, cultural fed has to be pretty align. We know Piers culture is bold. Last question, Brian and we bring it home here. Talk to us about how the cultural cultures appearing and video are stars I lining to be able to enable how quickly you guys are developing together. >> Way mentioned the simplicity piece of it. The other piece that I think has been a really strong cultural fit between the companies. It's just the sheer desire to innovate and change the world to be a better place. You know, our hallmark. Our mission is to make the make the world a better place with data. And it really fits with the level of innovation that obviously the video does so like to Silicon Valley companies with wicked smart folks trying to make the world a better place, It's It's really been a good partnership. >> Echo that. That's just, you know, the rate of innovation in a I changes monthly. So if you're gonna be a good partner to your customers, you gotta change Justus fast. So our partnership has been great in that space. >> Awesome. Next time, we're out of time, But next time, come back, talk to a customer, really wanna understand it, gonna dig into some of the great things that they're extracting from you guys. So, Charlie Brian, thank you for joining David me on the Cube this afternoon. Thanks. Thanks. Thanks for David. Dante. I'm Lisa Martin. You're watching the Cube. Y'all from pure accelerate in Austin, Texas.