>> Announcer: Live from Chicago, Illinois it's the CUBE, covering Veeamon 2018. Brought to you by Veeam. >> We're back in Chicago, Veeamon 2018, you're watching the CUBE, the leader in live tech coverage. We go out to the events, we extract the signal from the noise. My name is Dave Vellante and I'm here with my co-host Stu Miniman. Day one of our two day coverage of Veeamon, On our second year. Vaughn Stewart is here who is the vice president of Technology at Pure Storage, Cube alum, good friend. Great to see you man. >> Good to see you Dave, Stu. >> Dave: Thanks so much for coming on. >> Vaughn: Great to be back. >> So Pure, you know, I remember when you joined Pure and you were like, "Dave, this is going to be the rocket ship of a lifetime." it's turned out to be the case. First company since NetApp to hit a billion dollars in the storage business. It's like independent storage companies are back. >> Yeah. (laughs) >> So give us the update, what's happening at Pure? >> So fantastic year. Wrapped up end of January, right. So first independent storage company to hit a billion dollars. Actually, we're kind of on the cusp of maybe being the the fastest infrastructure company, if not the fastest tied with being the fastest to hit a billion dollars. So the growth rates been great, the products, obviously, have been off the charts. Whether you're looking at it from an analyst's perspective, you know, the gardener reports, the IDC market scape, so if you look at from the customers perspective with the NPS scores, right. Just crushing in terms of the products, the customers stating that we're not overstating the capabilities, and we make some pretty bold statements. But when you kind of boil it back to where we're at now, I think our focus is helping customers adopt a data centric architecture as a part of their IT or data center modernization plans, right. This is, we've kind of gone through this phase of like virtualizing everything, now everything's in the cloud and now we're starting to mature a little bit and we're always looking at this tsunami of data that's being created and it's more around, where's your data going to reside? Because there's going to be some gravity around it and bring the compute to where the data should reside. And so our products and our strategy is to help customers again, this data-centric architecture, adopt new technologies that are going to help them radically shift how they operate, changing the cost of operations, changing the complexity to either let an existing storage team scale to a larger capacity per full-time, you know, FTE or to allow actually the application teams or the private cloud teams to just manage their infrastructure stack, right. We're seeing we're seeing kind of growth in both areas. I think beyond that, our technology with our evergreen storage as a subscription model has also been able to be transformative for Enterprise about how do they acquire, refresh, and introduce new technologies within the storage space. And so it's been pretty exciting. >> So let's talk about some of that. I remember, I've I've been around a long time Stu, as you know, so Al Shughart, the legend, once told me when I was just a pup trying to understand the business. He said, "Dave, the storage business is simple. The customers want it to be dirt cheap, rock solid, and lightning fast." >> Vaughn: Yeah. >> This is the days of spinning discs, which we're kind of dirt cheap, but they really weren't that rock solid and they really weren't that lightning fast. So you guys actually delivered on that promise but you added some other things. Simplicity, the business model of reduced friction. You mentioned Evergreen, so it's not, obviously, not just about flash, where we say, "oh, flash, Pure storage flash, we have flash too." It's so much more than that. The way you positioned it just now the company in terms of data centricity. And, as they say, the business model innovations have really worked well for you. You've been able to stay ahead of the competition. I wonder if you could comment. >> Sure. So I, for your audience, I think it's important to maybe back up a bit. Pure was born in in the the wave of a number of all flash arrays. >> Dave: Yeah. Right? And a fair amount of them were acquired by large existing storage vendors. And I think now that the dust has settled a bit, you know, we were kind of the phoenixes that rose through those ashes, if you will, within the storage space and I think, really, the key driver there was, it wasn't about performance. Flash makes everything faster. >> Dave: Right. It was about a combination of the business model, the operational simplicity, but also, what I would call, the Tier One Feature Sets, right. You had to deliver on six nines of greater availability. You had to have all the data management capabilities to plug into a large partner ecosystem like veeam, which, you know, we're at Veeam live and that was kind of what I would call Act one of Pure, which was, you know, flash ray based, you know, storage for your traditional enterprise apps. Last year we introduced flash blade, right. This was a radically different architecture. It was to scale out a scale out blade-based storage platform that scaled capacity and performance linearly. And the adoption in that space has been this next-generation apps, which... Are just..the sets are growing, you know, out of control and beyond what we would have ever expected with an Enterprise app. So whether it's AI, machine learning, deep learning, analytics, or this new use case we're seeing, which is rapid data recovery. The flash blade, because of the combination of its low latency and massive parallel throughput, has really been a big growth vector for us and it's kind of act two, if you will, of Pure Storage. >> Dave: Go ahead Stu. >> Yeah, Vaughn I'd love to hear more your thoughts on, kind of, an application proliferation. so I think back, you know, you and I lived through that wave of virtualization. While I love virtualization, one of the challenges I had with it was I could take my old application that was probably already too long in the tooth and stick it in a VM and then keep it for another five to ten years because it didn't care about the hardware, their OS, and all that standpoint. Today, talk about cloud native apps, talk about IOT and analytics and all of these micro services and everything like that. It's a huge impact on infrastructure and how we build things. It brings up to speed how we bridge from, kind of, the old world and the new world. >> Yeah, I'm glad that you asked this question. I wish you would be coming to our conference next week - >> Stu: Well, Dave will be there. >> because we'll have a session discussing this and it'll include an internal case study. And so that's all the details I can give right now. For a long time I think a lot of IT vendors, particularly, those who made hardware products, try to position this on-prem versus the cloud, right. and it was really the wrong mindset. Cloud is just one more deployment model for an organization to look at. The question that I think organizations have is, what fits where? And I think, to your point, if you're looking to build a new application or re-platform an existing, what you have today versus in the past was, you had a contained set of APIs and interfaces to work with, right. If you were building on, say, you know, a database vendor's enterprise business suite that was the tools that you got to use. Today you look at what's available, an open source or in the public cloud space, and you get to build a massively disaggregated application that's comprised of functions and and microservices, right. And it gets to leverage these notions of scaling on demand and being being very elastic. What I would share with you and what we discussed with customers is, your development team will want to go as fast as they can and leverage all these new tools and they're iterating very quickly, and the cloud is an ideal platform for that. But you need to plan and look forward to, around what's the the volume of data that you may be dealing with? What's the access requirements of that data over time? And where's it going to be a better position? Should it sit in the cloud? Should it sit on Prem? Should it sit in a private to public cloud hybrid type of architecture model and leverage, say, the compute and all the software agility within the cloud and yet still have stewardship over your data and not have to deal with with maybe unforeseen things like charges per, you know, API call or egress charges things of that nature. >> And Edge as the whole, >> And so I'm grossly simplifying a lot this. but these are the conversations that you get within the enterprise, which is where the sweet spot is. These are real considerations that that they have right there past the is cloud secure or, you know? They're past the data sovereignty type of concerns. They're more around how is this going to scale long-term because, for example, I'll give you an example. So we rolled out meta, which is our AI as part of our support for our products. This all getting ahead of the customers and predicting faults, getting them... This is what helps us achieve greater than six nines availability across the entire fleet for the last two and a half years, right. It's, it's getting ahead of the problems. When we work on looking at some of the AI that we create around meta and we want to test it, we have to download a year's worth of phone home data from the cloud. That takes 45 days to download today and it's not going to get any faster as the install base gets larger, right. And so those are challenges that you have to look at and say, maybe I started in the cloud but maybe I need to look at something in a hybrid model because it's going to impact my business agility. And so these are conversations that we can have and our architects have with customers based on whatever their criteria or forecast look like. >> So just about a year ago Scott Dietzen stepped down as CEO, brought in Charlie - >> Vaughn: Yeah >> new leader. It was kind of, kind of interesting, it was right on the heels of Frank Slootman doing something similar. Frank Slootman just stepped down as chairman and so how's the new leadership going? What, what has Charlie brought? I can't wait to interview him next week on the CUBE but give us your take as somebody who's been an industry observer and, obviously, a long-time Pure employee. >> So ,so a great question. So just for the audience to know, so Dietzen is still with us, right. He stepped down from being the CEO and is now the chairman of the board. and I owe a large gratitude of debt to Scott. Scott brought me into Pure and I'm always encouraged when, you know, every now and then you get that that direct email from him, you know, you know, keep, you know, keep being a thorn in someone's side and push this forward. That was a little self-serving, so I apologize. But what I like about Charlie is, and, and understand I was, I was with Ned F for 13 years, right. And so we did this large growth cycle, not as early as with Pure, but going through a lot of the same growth pains and and whatnot that we have today. But we did all that growth under Worman Joven before they changed over. What was nice about Scott is, he told me on day one that he didn't know how far he would take Pure but it was apparent to him that he had taken it as far as he could, he would find his, his, his heir and obviously Charlie was the choice. And what Charlie's brought in has been a lot of structure, right. The formation of business units, a lot of accountability, a lot of, what I would say, that maturation phase from startup, right. That's kind of grown to the, to the the maximum output of your current organizational structures, to looking forward into a structure that that is going to allow us to scale better over time, right. Continue to grow as well as.. I think Charlie be the first to tell ya, you know, Pure's on a trajectory to hit two billion dollars and can do that on inertia in the current products, right. Charlie's focus or one of Charlie's focuses over the last handful of months is, is, what are we going to become two years from now and what investments do we need to start making in the near term to get prepared for two years from now? >> So I, I brought up Frank Slootman who's in the service now because I know, I know Frank and Scott were close, right? There's some board action going on there over the years, they're part of the Silicon Valley mafia with the Mai Bucherii. But but I, and we can joke about that but there's a there's a culture of succession that has really taken hold in in certain parts of the valley and, and again, very similar to what we saw as service now, where was the new guy was brought in to take them to the next level. And the existing CEO, you know, mature enough, you know, maybe, maybe worked so hard for all these years too, maybe felt like they need a little break. but still mature enough to say, okay, I know my limitations and I want to bring somebody else in. So it's been sort of this new thing and I want to tie it back to something we were talking to before on the CUBE. I mean, you guys hit escape velocity. When you look back at the sort of the virtualization craze with Three Par and Isilon, Data Domain, Compelling. Yeah, they kind of hit a billion-dollar status you know, they hit unicorn, but they never hit billion dollar revenue. And, and so now, and then the other thing you talked about was some of the bigger players decided to buy up flash companies. >> Vaughn: Yeah. >> And they said, you know, rather than pay 2.5 billion dollars for a data domain or Three Par, we'll spend a billion dollars or, in some cases, hundreds of millions of dollars and then we'll organically grow that internally. Did it work? Yeah, maybe yeah, you know. Maybe some of it, maybe not. But, but you guys stayed the course and are now on track to do two billion. >> Vaughn: Yeah >> So here's my question, long-winded sort of narrative babble, sorry about that. I used to question Worman Joven all the time Tucci, even. Can you stay independent? Right? That was the big question. You know, because Converged is coming. But now it looks like being an independent is actually in vogue. Best-of-breed is actually still a viable business model. >> So obviously I'm not in on the inside of whatever the board decisions may be. >> Yeah, but you're an observer who know this business. We're kind of talking about Vaughn the prognosticator, analyst, if you will. >> What I think is different today, and Stu and I were talking about this because we ran into each other over in the corner with Duncan. You know, the emergence of all the flash vendors and them getting acquired and really what's happened by and large is just the same old products just got flash injected into them and, you know, got, you know, the the vendors hope to get another decade out of them. But okay, they're faster, but it doesn't fundamentally change your business model or your operations and sometimes that's a good thing, right. For some customers, right, their change averse. >> Right, they don't want that disruption. >> Yeah. For us, right, we're trying to usher in now this this next wave of shared accelerated storage and it's a disaggregated model, right. Start to look up it at what, you know, in a commercial sense, if you will. What are the enter.. what are the the hyper scalars, you know, delivering, you know? They're not running data direct attached storage. They're not doing HCI, right? They've got pools of compute and pools of storage and it's either disk and cold or it's flash flash and hot and, you know, they've got network and it's all over Ethernet, so it's greatly simplified. We're trying to help our customers with, with that type of architecture. Whether they're looking at simplifying their private cloud or extending the private cloud to the public cloud, or what's even more interesting, as they look at like their data pipelines, you know, a lot of, you know.. There's, there's AI and analytics in every organization of every size. They may or may not sit inside the IT department but they tend to follow that model of eighths and software. So I'm just going to do it on DAS and I'm going to build this siloed cluster. And, you know, it must be cheap regardless of whatever the efficiency I get out of it. And what we're trying to help large organizations look at is data pipelines and flow and the flexibility that you gain by separating compute from storage and not having to worry about the performance issues or constraints of disk-based systems from a decade ago because technologies like flash and now with non-volatile memory Express and non-volatile memory expressed over fabrics, right. You're getting direct memory to memory communications from the servers to the storage. So you're getting all the benefits of pooling and sharing your storage with all the benefits of it without a local bus in terms of speed and performance. And so it can change, particularly, a large volume of data. You can change your agility. >> So that that is certainly a tailwind for you but it was a tailwind for a lot of companies and you have the product. Let's assume best product just for sake of argument. I'm sure you would agree. But best product doesn't always win, right? So what I'm hearing is there was business model innovation. >> Vaughn: Yeah. >> Obviously very strong go to market. You guys knew where all the skeletons were buried with all the reps that you guys hired. But there were other factors involved in your ascendancy, which maybe is independent of the structure of the industry because the industry structure is changing. It's going from, you know, now remote cloud services into these digital, this digital matrix and somehow you have to fit into that digital matrix and participate in that. >> Yeah, it's.. I think you brought up two points,\. So I think if you if you're going to be a start-up, to be successful, it's not just technology. You've hit the head on the nail there. Pure had.. the technology had to deliver, Pure had that. The business model was innovative, the marketing was off the hook, right? For a start-up, you know, we were punching above our weight but you also have sales, have sales force execution and, you know, you never know what you get when you walk into a start-up. But you've got to.. If you don't hit on all four of those dimensions then you don't achieve escape velocity. In terms of shifting from startup to, you know, becoming mainstream. Not only did we achieve a billion dollars last year, we were cashflow positive for the year and we were profitable for Q4, right? So that puts a lot of wind in ourselves as we go forward. You know, with, at the end of last year, a half a billion dollars in the bank and now a billion dollars in the bank. You know, for us to go you know figure out what we're going to grow and go into. I think moving forward and being independent, I think we'll see, right? I think there's always a tick-tock in our industry, right? Things are distributed, they're centralized, their distributed, I want one throat to choke, I want best-of-breed. I think with all the distributed apps and all the analytics platforms that are going to start to become more important than what we're used to in the X83 space. I think best-of-breed is starting to rise up right now and so I think the runway for Pure to stay independent is there. Don't get me wrong, we're going to have to do our works with plugging into clouds, right? And all those those ecosystems because customers want a transparent experience. But we'll be sharing some news on that, I think next week. >> Well and excited to here that. The cartel will continue to suck up startups, no question about it. But, you know, we love companies like Pure, put Nutanix in that mix and it was sad to us to see all their run of the virtualization comers, they just disappeared. Because if it's just the cartel building new products, you're not going to have the level of innovation that you get with VC funded startups in the valley. you just, you're just not. >> Well, in the US you're seeing, I mean, you're, in the US you're seeing VC investment starting to diversify a bit, right? >> Dave: Yeah >> Colorado's getting hot, the Boston area is, it has been there for a while but it's getting hot. >> IOT and security. >> And, you know, that's been the great thing about, you know, about IT in the US, right, is we've been an innovative landscape. I think the barrier has probably forced some innovators out based on just the cost of living. So, you know, who knows what the mix will look like a decade from now, but yeah, we're still going to be Silicon Valley centric for the near-term. >> So I love talking you because we can have these conversations. We were joking off-camera, we could go for 90 minutes, which we easily could. We got to, we got to go soon but let's talk about Veeam, relationship with Veeam. You guys are kind of birds of a feather in a lot of ways but, but take us through that. >> Yeah, so the opportunity to partner with Veeam was a no-brainer. There were synergies there, right? Pure and Veeam both trying to just disrupt legacy markets, doing it through simplicity, right? Riding the wave of, you know, virtualization as a primary business focus but not exclusive. our Net Promoter scores with both companies are off the charts, right. Customers love it and, you know, we're multiples higher than any of our competitors. And so bringing the technologies together were real simple. So last month we announced, four or five weeks ago we announced and released a new set of solutions and integrations. It was comprised around three areas of benefit, right? Accelerating backups, increasing the speed at which you could recover data, and adding a new level of agility within your ecosystem. So delivering those three value props were based on us supporting their Universal API adapters. So now that they can offload some of the backup process to array-based snapshots and that preserves the performance, makes the window collapse faster. That's where when production data sits on the flash array. We've also certified putting the flash blade behind the Veeam servers as a backup data repository and the benefits of that from a backup window are faster data ingestion times across your real estate. Obviously, smaller footprint, lower cost within the data center. The bigger impact on both of these is on rapid data recovery. So with Veeam, through their explorer integrations, you can pull files, disks, VMs, applications, right out of the array snapshots. If the array is still online but someone's just munched the data, if the array is no longer there and you need to pull from the flash blade, flash blade gives them a capability that they never had with disk, which is they can start because, you know, how Veeam recovers, right? They actually start the data services and recover them from the backup repository and then live migrate it back to the production environment. With the live, with the back and the data repository being all flash, now they can bring up a significant, if not all of your data back online and then trickle restore it back to the production data sets. We had a customer with a large distributed database that was on a more traditional disk backup system that was really focused on ingest, right? Make the backup window not so much focused on the restore times. It took them in excess of 36 hours to put back their database and this was the mission critical database to the organization. We've come in and replaced that. 36 hours is now 30 minutes. So is all flashes as repository for your backup for everyone? Maybe not for every organization but we're seeing a big growth ramp on that in the enterprise. The last piece that we've brought to market together in integrations is, integrating with their data labs. That's their environment to be able to on-demand create, test, and DEV infrastructures for you and that pairs really well with all flash arrays and snapshots because it's instantaneous, consumes no new storage, and our automatic QOS preserves that, preserves the resources for the production environment from the lab. And so those are our three areas: accelerate backups, rapid restores, and give you some agility with your test DEV. >> Okay and the agility in the ecosystem is oftentimes underappreciated, right? >> I'm amazed at the customers that I.. Large enterprise customers, right? Revenues in the tens of billions of dollars that you still meet with today, where they've half staffs that their job is to restore, you know, an Oracle database to an Oracle developer and that's all the guy does 40, guy or gal, does 40 hours a week, it's amazing. >> Right, Vaughn, great to see you again. >> Dave, awesome. >> Thanks so much for coming to the CUBE. We'll see you next week Pure Accelerate at San Francisco. We're there Wednesday, I believe, we're broadcasting. So look for all the things that Vaughn teased. He showed a little leg on some stuff, so we'll be covering that next week. We're back here tomorrow. Stu and I will be kicking off at 9:30 with Peter MacKay, so don't miss that. We're out for today, Veeamon 2018 the CUBE. See you tomorrow (electronic music)