>>from around the globe. It's the queue with digital coverage of AWS public sector online brought to you by Amazon Web services. >>Everyone welcome back to the Cube's virtual coverage of AWS Public sector summit online. That's the virtual conference. Public Sector Summit is the big get together for Teresa Carlson and her team and Amazon Web services from the public sector, which includes all the government agencies as well as education state governments here in United States and also abroad for other governments and countries. So we're gonna do an analysis of Teresa's keynote and also summarize the event as well. I'm John Furrow, your host of the Cube. I'm joined with my co host of the Cube, Dave Volante Stew Minimum. We're gonna wrap this up and analyze the keynote summit a really awkward, weird situation going on with the Summit because of the virtual nature of it. This event really prides itself. Stew and Dave. We've all done this event. It's one of our favorites. It's a really good face to face environment, but this time is virtual. And so with the covert 19 that's the backdrop to all this. >>Yeah, so I mean, a couple of things, John. I think first of all, A Z, you've pointed out many times. The future has just been pulled forward. I think the second thing is with this whole work from home in this remote thing obviously was talking about how the cloud is a tailwind. But let's face it. I mean, everybody's business was affected in some way. I think the cloud ultimately gets a tail wind out of this, but but But I think the third thing is security. Public sector is always heavily focused on security, and the security model has really changed overnight to what we've been talking about for years that the moat that we've built the perimeter is no longer where organizations need to be spending money. It's really to secure remote locations. And that literally happened overnight. So things like a security cloud become much, much more important. And obviously endpoint security and other other things that we've talked about in the Cube now for last 100 days. >>Well, Steve, I want to get your thoughts cause you know, we all love space. Do we always want to go the best space events that they're gonna be virtual this year as well? Um, But the big news out of the keynote, which was really surprising to me, is Amazon's continued double down on their efforts around space, cyber security, public and within the public sector. And they're announcing here, and the big news is a new space business segment. So they announced an aerospace group to serve those customers because space to becoming a very important observation component to a lot of the stuff we've seen with ground station we've seen at reinvent public sector. These new kinds of services are coming out. It's the best, the cloud. It's the best of data, and it's the best of these new use cases. What's your thoughts? >>Yeah, interesting. John, of course. You know, the federal government has put together Space Forces, the newest arm of the military. It's really even though something it is a punchline. There's even a Netflix show that I believe got the trademark board because they registered for it first. But we've seen Amazon pushing into space. Not only there technology being used. I had the pleasure of attending the Amazon re Marcia last year, which brought together Jeff Bezos's blue origin as well as Amazon AWS in that ecosystem. So AWS has had a number of services, like ground Station that that that are being used to help the cloud technology extend to what's happening base. So it makes a lot of sense for for the govcloud to extend to that type of environment aside you mentioned at this show. One of the things we love always is. You know, there's some great practitioner stories, and I think so many over the years that we've been doing this show and we still got some of them. Theresa had some really good guests in her keynote, talking about transformation and actually, one of the ones that she mentioned but didn't have in the keynote was one that I got to interview. I was the CTO for the state of West Virginia. If you talk about one of those government services that is getting, you know, heavy usage, it's unemployment. So they had to go from Oh my gosh, we normally had people in, you know, physical answering. The phone call centers to wait. I need to have a cloud based contact center. And they literally did that, you know, over the weekend, spun it up and pulled people from other organizations to just say, Hey, you're working from home You know you can't do your normal job Well, we can train your own, we can get it to you securely And that's the kind of thing that the cloud was really built for >>and this new aerospace division day this really highlights a lot of not just the the coolness of space, but on Earth. The benefits of there and one of Amazon's ethos is to do the heavy lifting, Andy Jassy told us on the Cube. You know, it could be more cost effective to use satellites and leverage more of that space perimeter to push down and look at observation. Cal Poly is doing some really interesting work around space. Amazon's worked with NASA Jet Propulsion Labs. They have a lot of partnerships in aerospace and space, and as it all comes together because this is now an augmentation and the cost benefits are there, this is going to create more agility because you don't have to do all that provisioning to get this going spawned. All kinds of new creativity, both an academic and commercial, your thoughts >>Well, you know, I remember the first cloud first came out people talked a lot about while I can do things that I was never able to do before, you know, The New York Times pdf example comes to mind, but but I think what a lot of people forget is you know the point to a while. A lot of these mission critical applications Oracle databases aren't moving to the cloud. But this example that you're giving and aerospace and ground station. It's all about being able to do new things that you weren't able to do before and deliver them as a service. And so, to me, it shows a great example of tam expansion, and it also shows things that you never could do before. It's not just taking traditional enterprise APs and sticking them in the cloud. Yeah, that happens. But is re imagining what you can do with computing with this massive distributed network. And you know, I O. T. Is clearly coming into into play here. I would consider this a kind of I o t like, you know, application. And so I think there are many, many more to come. But this is a great example of something that you could really never even conceive in enterprise Tech before >>you, Dave the line on that you talked about i o t talk a lot about edge computing. Well, if you talk about going into space, that's a new frontier of the edge that we need to talk about >>the world. Glad it's round. So technically no edge if you're in space so again not to get nuance here and nerdy. But okay, let's get into the event. I want to hold on the analysis of the keynote because I think this really society impact public service, public sector, things to talk about. But let's do a quick review of kind of what's happened. We'll get to the event. But let's just review the guests that we interviewed on the Cube because we have the cube virtual. We're here in our studios. You guys were in yours. We get the quarantine cruise. We're still doing our job to get the stories out there. We talked to Teresa Carlson, Shannon Kellogg, Ken Eisner, Sandy Carter, Dr Papa Casey Coleman from Salesforce, Dr Shell Gentleman from the Paragon Institute, which is doing the fairground islands of researcher on space and weather data. Um, Joshua Spence math you can use with the Alliance for Digital Innovation Around some of this new innovation, we leave the Children's National Research Institute. So a lot of great guests on the cube dot net Check it out, guys. I had trouble getting into the event that using this in Toronto platform and it was just so hard to navigate. They've been doing it before. Um, there's some key notes on there. I thought that was a disappointment for me. I couldn't get to some of the sessions I wanted to, um, but overall, I thought the content was strong. Um, the online platform just kind of wasn't there for me. What's your reaction? >>Well, I mean, it's like a Z. That's the state of the art today. And so it's essentially a webinar like platforms, and that's what everybody's saying. A lot of people are frustrated with it. I know I as a user. Activity clicks to find stuff, but it is what it is. But I think the industry is can do better. >>Yeah, and just to comment. I'll make on it, John. One of things I always love about the Amazon show. It's not just what AWS is doing, But, you know, you walk the hallways and you walk the actual So in the virtual world, I walk the expo floor and its okay, Here's a couple of presentations links in an email address if you want to follow up, I felt even the A previous AWS online at a little bit more there. And I'm sure Amazon's listening, talking to all their partners and building out more there cause that's definitely a huge opportunity to enable both networking as well. As you know, having the ecosystem be able to participate more fully in the event >>and full disclosure. We're building our own platform. We have the platforms. We care about this guys. I think that on these virtual events that the discovery is critical having the available to find the sessions, find the people so it feels more like an event. I think you know, we hope that these solutions can get better. We're gonna try and do our best. Um, so, um well, keep plugging away, guys. I want to get your thoughts. They have you been doing a lot of breaking analysis on this do and your interviews as well in the technology side around the impact of Covert 19 with Teresa Carlson and her keynote. Her number one message that I heard was Covad 19 Crisis has caused a imperative for all agencies to move faster, and Amazon is kind of I won't say put things to the side because they got their business at scale. Have really been honing in on having deliverables for crisis solutions. Solving the problems and getting out to Steve mentioned the call centers is one of the key interviews. This is that they're job. They have to do this cove. It impacts the public services of the public sector that she's that they service. So what's your reaction? Because we've been covering on the commercial side. What's your thoughts of Teresa and Amazon's story today? >>Yeah, well, she said, You know, the agencies started making cloud migrations that they're at record pace that they'd never seen before. Having said that, you know it's hard, but Amazon doesn't break out its its revenue in public sector. But in the data, I look at the breaking analysis CTR data. I mean, it definitely suggests a couple of things. Things one is I mean, everybody in the enterprise was affected in some way by Kobe is they said before, it wouldn't surprise me if there wasn't a little bit of a pause and aws public sector business and then it's picking up again now, as we sort of exit this isolation economy. I think the second thing I would say is that AWS Public sector, based on the data that I see, is significantly outpacing the growth of AWS. Overall number one number two. It's also keeping pace with the growth of Microsoft Azure. Now we know that AWS, on balance is much bigger than Microsoft Azure and Infrastructures of Service. But we also know that Microsoft Azure is growing faster. That doesn't seem to be the case in public sector. It seems like the public sector business is is really right there from in terms of growth. So it really is a shining star inside of AWS. >>Still, speed is a startup game, and agility has been a dev ops ethos. You couldn't see more obvious example in public sector where speed is critical. What's your reaction to your interviews and your conversations and your observations? A keynote? >>Yeah, I mean something We've all been saying in the technology industry is Just imagine if this had happened under 15 years ago, where we would be So where in a couple of the interviews you mentioned, I've talked to some of the non profits and researchers working on covert 19. So the cloud really has been in the spotlight. Can I react? Bask scale. Can I share information fast while still maintaining the proper regulations that are needed in the security so that, you know, the cloud has been reacting fast when you talk about the financial resource is, it's really nice to see Amazon in some of these instances has been donating compute occasional resource is and the like, so that you know, critical universities that are looking at this when researchers get what they need and not have to worry about budgets, other agencies, if you talk about contact centers, are often they will get emergency funding where they have a way to be able to get that to scale, since they weren't necessarily planning for these expenses. So you know what we've been seeing is that Cloud really has had the stress test with everything that's been going on here, and it's reacting, so it's good to see that you know, the promise of cloud is meeting that scale for the most part, Amazon doing a really good job here and you know, their customers just, you know, feel The partnership with Amazon is what I've heard loud and clear. >>Well, Dave, one of these I want to get your reaction on because Amazon you can almost see what's going on with them. They don't want to do their own horn because they're the winners on the pandemic. They are doing financially well, their services. All the things that they do scale their their their position, too. Take advantage. Business wise of of the remote workers and the customers and agencies. They don't have the problems at scale that the customers have. So a lot of things going on here. These applications that have been in the i t world of public sector are old, outdated, antiquated, certainly summer modernize more than others. But clearly 80% of them need to be modernized. So when a pandemic hits like this, it becomes critical infrastructure. Because look at the look of the things unemployment checks, massive amount of filings going on. You got critical service from education remote workforces. >>these are >>all exposed. It's not just critical. Infrastructure is plumbing. It's The applications are critical. Legit problems need to be solved now. This is forcing an institutional mindset that's been there for years of, like, slow two. Gotta move fast. I mean, this is really your thoughts. >>Yeah. And well, well, with liquidity that the Fed put into the into the market, people had, You know, it's interesting when you look at, say, for instance, take a traditional infrastructure provider like an HP era Dell. Very clearly, their on Prem business deteriorated in the last 100 days. But you know HP Q and, well, HBO, you had some some supply chain problem. But Dell big uptick in this laptop business like Amazon doesn't have that problem. In fact, CEOs have told me I couldn't get a server into my data center was too much of a hassle to get too much time. It didn't have the people. So I just spun up instances on AWS at the same time. You know, Amazon's VD I business who has workspaces business, you know, no doubt, you know, saw an uptick from this. So it's got that broad portfolio, and I think you know, people ask. Okay, what remains permanent? Uh, and I just don't see this This productivity boom that we're now finally getting from work from home pivoting back Teoh, go into the office and it calls into question Stu, when If nobody is in the corporate office, you know the VP ends, you know, the Internet becomes the new private network. >>It's to start ups moving fast. The change has been in the past two months has been, like, two years. Huge challenges. >>Yeah, John, it's an interesting point. So, you know, when cloud first started, it was about developers. It was about smaller companies that the ones that were born in the cloud on The real opportunity we've been seeing in the last few months is, you know, large organizations. You talk about public sector, there's non profits. There's government agencies. They're not the ones that you necessarily think of as moving fast. A David just pointing out Also, many of these changes that we're putting into place are going to be with us for a while. So not only remote work, but you talk about telehealth and telemedicine. These type of things, you know, have been on our doorstep for many years, but this has been a forcing function toe. Have it be there. And while we will likely go back to kind of a hybrid world, I think we have accelerated what's going on. So you know, there is the silver lining in what's going on because, you know, Number one, we're not through this pandemic. And number two, you know, there's nothing saying that we might have another pandemic in the future. So if the technology can enable us to be more flexible, more distributed a xai I've heard online. People talk a lot. It's no longer work from home but really work from anywhere. So that's a promise we've had for a long time. And in every technology and vertical. There's a little bit of a reimagining on cloud, absolutely an enabler for thinking differently. >>John, I wonder if I could comment on that and maybe ask you a question. That's okay. I know your host. You don't mind. So, first of all, I think if you think about a framework for coming back, it's too said, You know, we're still not out of this thing yet, but if you look at three things how digital is an organization. How what's the feasibility of them actually doing physical distancing? And how essential is that business from a digital standpoint you have cloud. How digital are you? The government obviously, is a critical business. And so I think, you know, AWS, public Sector and other firms like that are in pretty good shape. And then there's just a lot of businesses that aren't essential that aren't digital, and those are gonna really, you know, see a deterioration. But you've been you've been interviewing a lot of people, John, in this event you've been watching for years. What's your take on AWS Public sector? >>Well, I'll give an answer that also wants to do away because he and I both talk to some of the guests and interview them. Had some conversations in the community is prep. But my take away looking at Amazon over the past, say, five or six years, um, a massive acceleration we saw coming in that match the commercial market on the enterprise side. So this almost blending of it's not just public sector anymore. It looks a lot like commercial cause, the the needs and the services and the APS have to be more agile. So you saw the same kind of questions in the same kind of crazy. It wasn't just a separate division or a separate industry sector. It has the same patterns as commercial. But I think to me my big takeaways, that Theresa Carlson hit this early on with Amazon, and that is they can do a lot of the heavy lifting things like fed ramp, which can cost a $1,000,000 for a company to go through. You going with Amazon? You onboard them? You're instantly. There's a fast track for you. It's less expensive, significantly less expensive. And next thing you know, you're selling to the government. If you're a start up or commercial business, that's a gold mine. I'm going with Amazon every time. Um, and the >>other >>thing is, is that the government has shifted. So now you have Covad 19 impact. That puts a huge premium on people who are already been setting up for digital transformation and or have been doing it. So those agencies and those stakeholders will be doing very, very well. And you know that Congress has got trillions of dollars day. We've covered this on the Cube. How much of that coverage is actually going for modernization of I T systems? Nothing. And, you know, one of things. Amazon saying. And rightfully so. Shannon Kellogg was pointing out. Congress needs to put some money aside for their own agencies because the citizens us, the taxpayers, we got to get the services. You got veterans, you've got unemployment. You've got these critical services that need to be turned on quicker. There's no money for that. So huge blind spot on the whole recovery bill. And then finally, I think that there's a huge entrepreneurial thinking that's going to be a public private partnership. Cal Poly, Other NASA JPL You're starting to see new applications, and this came out of my interviews on some of the ones I talked to. They're thinking differently, the doing things that have never been done before. And they're doing it in a clever, innovative way, and they're reinventing and delivering new things that are better. So everything's about okay. Modernize the old and make it better, and then think about something new and completely different and make it game changing. So to me, those were dynamics that are going on than seeing emerge, and it's coming out of the interviews. Loud and clear. Oh, my God, I never would have thought about that. You can only do that with Cloud Computing. A super computer in the Cloud Analytics at scale, Ocean Data from sale Drone using satellite over the top observation data. Oh, my God. Brilliant. Never possible before. So these are the new things that put the old guard in the Beltway bandits that check because they can't make up the old excuses. So I think Amazon and Microsoft, more than anyone else, can drive change fast. So whoever gets there first, well, we'll take most of the shares. So it's a huge shift and it's happening very fast more than ever before this year with Covert 19 and again, that's the the analysis. And Amazon is just trying to like, Okay, don't talk about us is we don't want to like we're over overtaking the world because outside and then look opportunistic. But the reality is we have the best solution. So >>what? They complain they don't want to be perceived as ambulance station. But to your point, the new work loads and new applications and the traditional enterprise folks they want to pay the cow path is really what they want to dio. And we're just now seeing a whole new set of applications and workloads emerging. What about the team you guys have been interviewing? A lot of people we've interviewed tons of people at AWS reinvent over the years. We know about Andy Jassy at all. You know, his his lieutenants, about the team in public sector. How do they compare, you know, relative to what we know about AWS and maybe even some of the competition. Where do you Where do you grade them? >>I give Amazon and, um, much stronger grade than Microsoft. Microsoft still has an old DNA. Um, you got something to tell them is bring some fresh brand there. I see the Jedi competition a lot of mud slinging there, and I think Microsoft clearly got in fear solution. So the whole stall tactic has worked, and we pointed out two years ago the number one goal of Jet I was for Amazon not to win. And Microsoft looks like they're gonna catch up, and we'll probably get that contract. And I don't think you're probably gonna win that out, right? I don't think Amazon is gonna win that back. We'll see. But still doesn't matter. Is gonna go multi cloud anyway. Um, Teresa Carlson has always had the right vision. The team is exceptional. Um, they're superb experience and their ecosystem partners Air second and NASA GPL Cal Poly. The list goes on and on, and they're attracting new talent. So you look at the benchmark new talent and unlimited capability again, they're providing the kinds of services. So if we wanted to sell the Cube virtual platform Dave, say the government to do do events, we did get fed ramp. We get all this approval process because Amazon customer, you can just skate right in and move up faster versus the slog of these certifications that everyone knows in every venture capitalists are. Investor knows it takes a lot of time. So to me, the team is awesome. I think that the best in the industry and they've got to balance the policy. I think that's gonna be a real big challenge. And it's complex with Amazon, you know, they own the post. You got the political climate and they're winning, right? They're doing well. And so they have an incentive to to be in there and shape policy. And I think the digital natives we are here. And I think it's a silent revolution going on where the young generation is like, Look at government served me better. And how can I get involved? So I think you're going to see new APS coming. We're gonna see a really, you know, integration of new blood coming into the public sector, young talent and new applications that might take >>you mentioned the political climate, of course. Pre Cove. It'll you heard this? All that we call it the Tech lash, right, The backlash into big tech. You wonder if that is going to now subside somewhat, but still is the point You're making it. Where would we be without without technology generally and big tech stepping up? Of course, now that you know who knows, right, Biden looks like he's, you know, in the catbird seat. But there's a lot of time left talking about Liz more on being the Treasury secretary. You know what she'll do? The big tech, but But nonetheless I think I think really it is time to look at big tech and look at the Tech for good, and you give them some points for that. Still, what do you think? >>Yeah, first of all, Dave, you know, in general, it felt like that tech lash has gone down a little bit when I look online. Facebook, of course, is still front and center about what they're doing and how they're reacting to the current state of what's happening around the country. Amazon, on the other hand, you know, a done mentioned, you know, they're absolutely winning in this, but there hasn't been, you know, too much push back if you talk culturally. There's a big difference between Amazon and AWS. There are some concerns around what Amazon is doing in their distribution facilities and the like. And, you know, there's been lots of spotlights set on that, um, but overall, there are questions. Should AWS and Amazon that they split. There's an interesting debate on that, Dave, you and I have had many conversations about that over the past couple of years, and it feels like it is coming more to a head on. And if it happens from a regulation standpoint, or would Amazon do it for business reason because, you know, one of Microsoft and Google's biggest attacks are, well, you don't want to put your infrastructure on AWS because Amazon, the parent company, is going to go after your business. I do want to pull in just one thread that John you and Dave were both talking about while today you know, Amazon's doing a good job of not trying todo ambulance case. What is different today than it was 10 or 20 years ago. It used to be that I t would do something and they didn't want to talk to their peers because that was their differentiation. But Amazon has done a good job of explaining that you don't want to have that undifferentiated heavy lifting. So now when an agency or a company find something that they really like from Amazon talking all their peers about it because they're like, Oh, you're using this Have you tried plugging in this other service or use this other piece of the ecosystem? So there is that flywheel effect from the cloud from customers. And of course, we've talked a lot about the flywheel of data, and one of the big takeaways from this show has been the ability for cloud to help unlock and get beyond those information silos for things like over 19 and beyond. >>Hey, John, if the government makes a ws spin out or Amazon spin out AWS, does that mean Microsoft and Google have to spin out their cloud businesses to? And, uh, you think that you think the Chinese government make Alibaba spin out its cloud business? >>Well, you know the thing about the Chinese and Facebook, I compare them together because this is where the tech lash problem comes in. The Chinese stolen local property, United States. That's well documented use as competitive advantage. Facebook stole all the notional property out of the humans in the world and broke democracy, Right? So the difference between those bad tech actors, um, is an Amazon and others is 11 enabling technology and one isn't Facebook really doesn't really enable anything. If you think about it, enables hate. It enables some friends to talk some emotional reactions, but the real societal benefit of historically if you look at society, things that we're enabling do well in free free societies. Closed systems don't work. So you got the country of China who's orchestrating all their actors to be state driven, have a competitive advantage that's subsidised. United States will never do that. I think it's a shame to break up any of the tech companies. So I'm against the tech lash breakup. I think we should get behind our American companies and do it in an open, transparent way. Think Amazon's clearly doing that? I think that's why Amazon's quiet is because they're not taking advantage of the system that do things faster and cheaper gets that's there. Ethos thinks benefits the consumer with If you think about it that way, and some will debate that, but in general Amazon's and enabling technology with cloud. So the benefits of the cloud for them to enable our far greater than the people taking advantage of it. So if I'm on agency trying to deliver unemployment checks, I'm benefiting the citizens at scale. Amazon takes a small portion of that fee, so when you have enabling technologies, that's how to me, The right capitalism model works Silicon Valley In the tech companies, they don't think this way. They think for profit, go big or go home and this has been an institutional thing with tech companies. They would have a policy team, and that's all they did. They didn't really do anything t impact society because it wasn't that big. Now, with networked economies, you're looking at something completely different to connected system. You can't handle dissidents differently is it's complex? The point is, the diverse team Facebook and Amazon is one's an enabling technology. AWS Facebook is just a walled garden portal. So you know, I mean, some tech is good, some text bad, and a lot of people just don't know the difference what we do. I would say that Amazon is not evil Amazon Web services particular because they enable people to do things. And I think the benefits far outweigh the criticisms. So >>anybody use AWS. Anybody can go in there and swipe the credit card and spin up compute storage AI database so they could sell the problems. >>The problems, whether it's covert problems on solving the unemployment checks going out, are serving veterans or getting people getting delivering services. Some entrepreneurs develop an app for that, right? So you know there's benefits, right? So this you know, there's not not Amazon saying Do it this way. They're saying, Here's this resource, do something creative and build something solve a problem. And that was the key message of the keynote. >>People get concerned about absolute power, you know, it's understandable. But if you know you start abusing absolute power, really, I've always believed the government should come in, >>but >>you know, the evidence of that is is pretty few and far between, so we'll see how this thing plays out. I mean, it's a very interesting dynamic. I point about why should. I don't understand why AWS, you know, gets all the microscopic discussion. But I've never heard anybody say that Microsoft should spend on Azure. I've never heard that. >>Well, the big secret is Azure is actually one of Amazon's biggest customers. That's another breaking analysis look into that we'll keep on making noted that Dave's do Thanks for coming to do great interviews. Love your conversations. Final words to I'll give you What's the big thing you took away from your conversations with your guests for this cube? Virtual coverage of public sector virtual summit >>so biggest take away from the users is being able to react to, you know, just ridiculously fast. You know it. Talk about something where you know I get a quote on Thursday on Friday and make a decision, and on Monday, on up and running this unparalleled that I wouldn't be able to do before. And if you talk about the response things like over nine, I mean enabling technology to be able to cut across organizations across countries and across domains. John, as you pointed out, that public private dynamic helping to make sure that you can react and get things done >>Awesome. We'll leave it there. Stew. Dave. Thanks for spending time to analyze the keynote. Also summarize the event. This is a does public sector virtual summit online Couldn't be face to face. Of course. We bring the Cube virtual coverage as well as content and our platform for people to consume. Go the cube dot net check it out and keep engaging. Hit us up on Twitter if any questions hit us up. Thanks for watching. >>Yeah, yeah, yeah, yeah, yeah, yeah

(upbeat music) >> From our studios in the heart of Silicon Valley, Palo Alto, California. This is a CUBE Conversation. >> Hi, everyone. Welcome to this CUBE Conversation here in Palo Alto, theCUBE Studios. I'm John Furrier, host of theCUBE. We're here with two great guests, Carl Eschenbach, partner at Sequoia Capital on the board of Cohesity as well with the CMO Lynn Lucas. Lynn, great to see you. Carl, thanks for coming back on. >> Great to be here. >> Appreciate it. So Lynn, you know we've been following you guys for many many years, watching the rapid growth of Cohesity. Funding round after funding round, Unicorn. From a start up, to going through the atmosphere heading into orbit, nice growth. >> Mid-size company I would say now. >> Yeah >> Yeah >> No longer a startup. >> Growing like crazy. >> No longer a startup, yeah. >> Good round, good financing track. Thanks to Sequoia. >> Well, we're proud and happy investors and partners with them, that's for sure. >> Yeah, one of the things we're super excited about right now, Lynn I want to get your thoughts on this is that, how do you maintain the growth because cloud is an ever changing landscape, data management's really hot and changing. What's been the success formula for you guys, staying ahead? Both in terms of continuing to push the brand, push the message and success. What's been the formula? >> Well, I think it starts with our founder, Mohit Aron, and his vision and strategy which, if you go back, he's been extraordinarily consistent on and he saw this massive opportunity to take hyper-convergence, which of course he's really the father of from Nutanix and bring it to this whole other area of data, the vast majority of data that enterprises have. That is in all of these different silos and so really I think that Cohesity has this opportunity to be a once in a generation platform company much like VMware and really change the way enterprises, protect, manage, store and ultimately do more with their data. So, I'm going to say it's less about the brand. I'm proud about the brand. But, it's really about... >> You did a great job the brand, but I think the execution is. I think one thing I love about this market cloud in the next ten years ahead of us is that you can come into the market with a feature or a specific thing, like backup and turn it into a broad ranging high-growth, billions dollars of value. I think that's what you guys are on. But I, while we have Carl here, I want to put him on the spot because, you know, of his experience at VMware and now at Sequoia. What's he bringing to the table for Cohesity? What's his operational knowledge? What is some of the things Carl's brought to Cohesity? >> Oh, my gosh. >> What hasn't he brought. >> Well, Carl is obviously incredibly experienced and brings a wealth of go to market knowledge and connections and advice for us. I think instrumental in helping us see how to scale. As well as, change and shift the business model over to software and subscription. Which is what Cohesity did last year and is right in line with the move towards the cloud. >> Carl, your thoughts? >> I have to say one of the things just to echo, so thank you for those kind words. But quite frankly its all about execution and these folks at Cohesity know how to execute. If you just look at their scale over the last three years and their ability to execute. It's pretty impressive, not on the technology side only. But, if you think about their go to market motion and what they've not both here in the U.S., internationally, over into, you know, Asia and in Japan with the joint venture they have with SoftBank and some of the others. It's been amazing to watch them scale and to go market and also the ecosystem that they started to build around them and leveraging partners like HPE and Cisco as Cohesity has transitioned from being an appliance solution to being a software and data management platform and moving the hardware to other partners. It's been amazing to watch that transformation happen. So, it's technology, yes. But, it's also every other component and piece of the business that's been able to scale through good execution. >> Let's talk about the ecosystem, cause I think it's a super important, ever changing conversation. Especially as the bigger players get bigger and then the mid-size folks like you guys get bigger as well. The relationships change. You've certainly seen your share, Carl, at VMware. At VMworld every year, the ecosystem has its growth. It changes over, new value propositions are coming in. You have a constant rotation through the ecosystem dynamic. >> Yeah, no. >> What are some of the going on now that Cohesity's taken advantage of? >> What are they... >> Yeah, so because Cohesity is actually building a true platform as Lynn was articulating. If you're a platform in a data center it means two things. You have to partner with people on the south-bound side of that platform and the north-bound side of the platform because everything's going to go through a platform and because of that you form a very rich ecosystem but you also form sometimes competitors. In this world everyone I think describes it as friends and enemies. They're frenemies and they've done a very good job at that but at the same time they've really focused on key partners like an HPE or a Cisco or many others that can really differentiate themselves and allow them to focus on what they truly are and that's a data management software company. So, I think they've done a really good job navigating the ecosystem and building off of it and aligning with the right people. For example you sit here at VMWworld today. Look at the partnership they have with VMware they have V-ready, you know, certification across vsan, their infrastructure platform. Vcloud Director, AWS, you name it. So, I think they've done a great job and that's thanks to people like Lynn and the team. >> Lynn, talk about the ecosystem dynamic. Because you guys are actively market a big booth every year at VMworld as well as Amazon re:invent and other shows. You have to be out there. What are you hearing? What are some of the dynamics that your working through? >> Well speaking of VMworld and VMware they really were the original ecosystem partner and I think we believe that north of 70 percent of our customers are VMware customers and they're getting better value out of that. But, we haven't talked a lot about the cloud and that's obviously a massive ecosystem that's continuing to develop and bringing those two things together is something that Cohesity specializes in. With our native capabilities, with Amazon, Azure, Google but the other third piece of the ecosystem that we're now developing is the applications and that's unique to Cohesisty really redefining data management. Just announced Cohesity CyberScan based on Tenable running on the Cohesity platform. Prior to the, Splunk, running on the platform. So we're developing these ecosystem partnerships in new ways with application providers. >> So when are we going to see Cohesity world. (laughing) >> I am just so happy to be at Vmworld it's a great place for us to meet a lot of customers and partners. So we'll stay with that. >> Carl you were talking about, before we came on camera, about your first VMworld. You know, oh my god, it's huge, now it's even bigger. This is the opportunity for firms like Cohesity, if they continue the momentum. Building out applications which if you think about it that's an enabling technology. You can enable developers to be successful. That truly is a testament to what a true platform is. >> Yeah, again, I think, she said they don't have a big user conference yet. I don't think it will be long before we such momentum in the market that we will have a user conference at some point. Where you will see a large turnout of people using the technology. People from the ecosystem there and then developers as well and lastly you'll start to see application vendors like a Splunk or a Tenable who are actually now running their applications on top of this. This isn't just data management but it's also supporting applications and when you pull those three different you know constituents together you have a pretty big opportunity to pull off some type of platform show. >> Lynn, I got to put you on the spot here for a minute you got Carl, he's also a partner with Sequoia Venture Capital. What are the pros and cons with working with a big time tier one renowned VC like Sequoia is? Sequoia's Don Valentine is a well documented story. Moritz goes on, the young guns in there now. Get the operating experience from like the Carl's. Pretty established, they got a great business model, you know that. What's the pros and cons of working for the big time Sequoia. >> I've not seen any cons. Pros are as you said the operating experience and I think also the experience in guiding a company through this hyper growth. Cohesity is now well over 1200 employees. Last year, when you and I sat here much less than that, right? And they've seen it and done it before with other partners or with other portfolio companies that I think is one of the best pieces of advice that Carl has given us coming into our company is how to maintain that culture and that focus on the mission as we move through this tremendous growth phase. >> That's interesting, Sequoia loves you when your growing but then, but they've seen success. The cons haven't come yet. But, if you continue to grow there will be no cons. Everyone's happy and growing. But, I want to get your thoughts because Sequoia also builds world-class companies and they also, Apple the names are legendary. Your founder on theCUBE told me that he doesn't just want to get an exit. He wants to build world class company. >> That's right >> Well, exit is not as important as like EMEA. But in like public that happens. He's not in it for the cash. He wants build a durable world class company. >> That's exactly right, right Mohit has had a number of successes, Google, Nutanix. So he's not in this for the short return and we really are focused on building a culture and a set of values and a long term sustainable business and he really means what he says about. He's here to change the world and data is the foundation of what most businesses are going to compete on and he believes he can really empower organizations to do that and we can build a great culture and a great company while were helping. >> Carl when you hear that.. >> I want to piggyback off what Lynn just said and its exactly what Lynn articulated about Mohit to want to build a big enduring company that stands the test of time. If you look at our ethos at Sequoia we want to partner with founders from idea to IPO and beyond. We're not looking for a quit hit, a quick win. We want to be with them through IPO and beyond and build big legendary companies that stand the test of time and in the form of Cohesity we have that opportunity and we're well on that path to build a legendary platform company that will service both the enterprise in the cloud companies into the future. That's our mission, so I think our missions are aligned. >> Well you just answered the question I was going to ask you. That is music to your ears this is the kind of model you guys want and certainly you guys do a good job of exiting out on EMEA and doing, making your LPs a lot of money. You got to make money. >> Right, but, you know a lot of people think when our companies go public this is an exit for us. It's just an event. If we believe in the companies were going to hold long into the public market from that idea and that seed investment, like we did here at Cohesity, well beyond the IPO. >> There's a renaissance going on , I love it because two things are happening in this next 10 years. You seen a systems platform mindset come back versus the quick hits and also people want to build big companies they don't want to do the quick flips anymore. So at lot of young entrepreneurs are, they are in it for a mission. This is a new vibe. What kind of advice do you give entrepreneurs that are looking to bring that Cohesity model and get the attention of Sequoia? What are some of the things that you see as success for the young entrepreneurs out there? >> Yeah, so it is around the word mission. Like we want to partner with people that are mission driven that are going to have a huge impact on business and society as a whole and even you know the social efforts in our world. So were looking for people that want to change the trajectory of whatever it is they are addressing and we think for example with Cohesity there's a radical transformation taking place in the infrastructure and someone's got to innovate because a lot of innovators today are not coming from the incumbent it's coming from the next generation of founders like Mohit and he's very mission driven. Build a big company, service a community of people change the way people store and think about data and manage it and that mission-centric founder is one we love to partner with. >> Final question I'd love to get both your take on this question, Lynn and Carl is. When you meet someone that may not be inside the ropes of technology like the enterprise tech like we are the few and others and they ask you the question "Why is Cohesity so successful?" How do you describe the dynamics of the marketplace and Cohesity's role in it on it's success? What is the answer to that question? >> I think it's really two things. So one is I think that there is this generational shift in the architecture that underpins data and we've got a perfect storm with data doing exponential growth and as Carl's been saying there really hasn't been a lot of innovation in the infrastructure in more than a decade. Mohit saw that, but then that's combined with a mission, a passion for customers and sticking to that execution of serving the customer and that's making us successful. >> Carl your thoughts after that. >> Listen, it starts with technology and to have great technology you have to have a great technical founder and we have that in Mohit, time and time again. I can go, we've all talked about Mohit and how special he is. At the same time you need to build a company that has a special culture, that can stand the test of time, that is resilient, that has grit and has passion and perseverance for the work their doing around their mission and I think we have all of that in Cohesity and that's a lot of it's because of Mohit and people like Lynn that he's brought in around his executive team. You can just see that permeate through the entire organization. >> That's awesome. Thanks for sharing the insight. Carl, great to have you comment here with Lynn on Cohesity, I know your on the board. Lot of great things happening, looking to see what's happening at the VMware parties. Thanks for hosting some awesome events for the community. >> Can't wait to be back. Bring some of our customers on. >> Thanks for spending the time. This is theCUBE Conversation here at Palo Alto. I'm John Furrier, thanks for watching. (upbeat music)

>> Live from Las Vegas, it's theCUBE. Covering AWS re:Invent 2018 Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> Hey, welcome back. And we're live here at Las Vegas AWS re:Invent 2018 live coverage from theCUBE. I'm John Furrier. Dave Vellante, my co-host, wall to wall coverage. Dave, six years covering Amazon, watching it grow. Watching it just an unstoppable force of new services. Web services being realized from the original vision years and many, many years ago, over a decade. Jesse Rothstein, CTO and co-founder of ExtraHops our next guest, welcome back to theCUBE, good to see you. >> Thanks for having me. >> So first of all before we get into the conversation, what's your take on this madness, here? It's pretty crazy. >> You know this is, I think this is my sixth year, as well, and this show must double in size every year. It's enormous, spread across so many venues, so much going on, it's almost overwhelming. >> I remember six years ago, we used to be on theCUBE, and I think we just kept the stream open, "Hey, come on up! We have an opening!" Now it's like two cubes, people tryin' to get on, no more room, we're dyin', we go as hard as we can, 16 interviews, hundreds of interviews, lots of change. So I got to ask you, what is your view of the ecosystem? Because back then, handful of players in there. You guys were one of 'em. Lot of opportunities around the rising tide here. What's your thought on the ecosystem evolution? >> Well, of course the ecosystem has grown, this show has really become recognized as the pre-eminent Cloud show, but I see some themes that I think have certainly solidified, for example I spent a bunch of time on the security track. That's the largest track by far, I'm told. They're actually breaking it out into a separate add-on conference coming up in the summer. So clearly there's a great deal of interest around Cloud security as organizations follow their... >> Did they actually announce for that security conference? >> They did, they did. >> Okay, so Boston in June, I think right? >> June, that's correct. They announced, I think, I don't want to mess up the dates, June, late June. >> I think June 26. Breaking News here, that's new information. That's a really good signal for Amazon. They're taking security serious. When I interviewed Andy Jassy last week, he said to me, "Security used to be a blocker. Oh the Cloud's not secure!" Couple short years ago, now it's actually competitive advantage, but still a lot more work to get done. Network layer all the way up, what's your take? Never done. >> Well, so that's what Andy says, and I think that I would rephrase that slightly differently. Security used to be a blocker and it used to be an area of anxiety and organizations would have huge debates around, you know, whether the Cloud is less secure, or not, inherently. I think, today, there's a lot more acceptance that the Cloud can be just as secure as on-prem or just as insecure. You know, for my view, it relies on the same people, processes, and technologies, that are inherently insecure as we have on-prem, and therefore it's just as insecure. There are some advantages, the Cloud has great API logging, building blocks like CloudTrail. New services like GuardDuty, but at the same time it's hard to hire Cloud security expertise, and there is an inherent opacity in public Cloud that I think is a real challenge for security. >> Well, and bad human behavior always trumps good security. >> Well, of course. >> Talk about ExtraHop, how you guys are navigating, you guys have been in the ecosystem for a while. Always an opportunity to grow, I love this TAM's expanding, huge expansion in the adjustable market, new use cases. What's up with you guys? Give us an update. Where's the value proposition resonating? What's the focus? >> Well you can probably tell from my interests that we see a lot of market pull and opportunity around Cloud security. ExtraHop is an analytics product for IT ops and security, so there's a certain segment of what we do for IT operations use cases. Delivering essentially a better level of service, we attach to use cases like Cloud migrations, and new application roll-outs. But we also have a cyber security offering, that's a very advanced offering, around network behavioral analytics, where we actually can detect suspicious behaviors and potential threats, bring them to your attention. And then since we leverage our broader analytics platform, you're a click away from being able to investigate or disposition these detections and see, hey is this something I really need to be concerned about. >> Give an example of some of the network behavior, because I think this is a real critical one, because with no perimeter, you got no surface area, you got API's, this is the preferred architecture but, you got to watch the traffic. How will you guys be specific and give an example. >> So, some of my favorite examples have to do with detecting when you've already been breached. Organizations have been investing in defense and depth for decades, you know, keep the attackers out at the perimeter, keep the attackers away from the endpoint, but how would you know if you've already been breached. And it turns out, your Verizon does a great data breach investigation report annually. And they determine that they're only nine or so behaviors that count for 90% of what all breaches do, what they look like. So, you look for things like, parts of the cyber security attaching. You look for reconnaissance, you look for lateral movement, you look for some form of ex-filtration. Where ExtraHop is taking this further, is that we've built sophisticated behavioral models. We're able to understand privilege. We're able to understand what are the most important systems in your environment, the most important instances. Who has administrative control over them, and then when that changes, you want to know about it, because maybe this thing, this instance, in an on-prem environment, could be like a contractor laptop, or an HVAC system. It now exercises some administrative control over a critical system, and it's never done that before. We bring that to your attention, maybe you want to take some automated action, and quarantine it right away, maybe you want to go through some sort of approval process and bring it to someone's attention. But either way, you want to know about it. >> I'm going to get your reaction to a comment I saw yesterday morning at a keynote on Teresa Carlson's breakfast, her public sector breakfast, Christine Halvorsen, FBI. Said, we're in a data crisis. And she talked about that they can't react to some of these bad events, and a lot of it's post event, That's the basic stuff they need now, and she said, I can't put the puzzle pieces together fast enough. So you're actually taking that from a network Ops standpoint, IT Ops. How do you get the puzzle pieces together fast? What's the secret? >> Well so, the first secret is that we're very focused on real time network data, and network telemetry. I often describe ExtraHop as like Splunk for the network. The idea requires completely different technology, but the idea's the same. Extract value and insight out of data you already have, but the advantage of the network for security, and what I love about it, is that, it's extremely real-time, it's as close to ground truth as you can get, It's very hard to hide from, and you can never turn it off. >> Yeah. >> So with all of those properties, network analytics, makes for, has just tremendous implications for cyber security. >> I mean honestly, you're visibly excited, I'm a data geek myself, but you made a good point, I want to double down on, is that, moving packets from A to B is movement. And movement is part of how you detect it right, so? >> It is, so packets itself, that's data in motion, but if you're only looking at the packets you're barely scratching the surface. Companies have tried to build security analytics based on flow data for a long time. And flow data, flow records, it's like a phone bill. It tells you who's talking to whom and how long they spoke, but there's no notion of what was said in the conversation. In order to do really high quality security analytics, you need to go much deeper. So we understand resources, we understand users, we understand what's normal, and we're not using statistical baselines, we're actually building predictive models around how we expect end points and instances to behave. And then when they deviate from their model, that's when we say, "Hey, there's something strange going on. >> That's the key point for you guys. >> And that means you can help me prioritize... >> Absolutely. >> Because that's the biggest challenge these guys have. They oftentimes don't know where to go, they don't know how to weight the different... >> So that's one challenge and I think another really big challenge, and we see this even with offerings that have been publicized recently, is that detection itself isn't good enough, that's just an alert cannon, and there was a session that actually talked about alarm deafness that occurs, it occurs in hospitals, and other environments, were all you get is these common alarms, and people stopped paying attention to them. So, in addition to the ability to perform high quality detections, you need a very streamline investigative work flow. You know, one click away so you can say, "Okay, what's going on here?" Is this something that requires additional investigation. >> Well, I think you guys are on the right track, and I think what's different about the Cloud is that, you know, they call the show re:invent, but rethinking, existing stuff for Cloud scale, is a different mindset, it's a holistic. Like, you're taking more of a holistic view saying, "I'm not going to focus on a quote packet path, or silo that I'm comfortable with, you kind of got to look at the bigger picture, and then have a data strategy, or a some competitive unique IP." >> I think that's an excellent summary. What I would add is that organizations, as they kind of follow their Cloud journey, we're seeing a lot of interest from security teams in particular, that don't want to do swivel chair integration. Where I have something on-prem and I have something in the Cloud. They want something much more holistic, much more unified. >> Seamless, automated. >> Much more seamless, much more automated. (laughing) You know, I sat in about five different securities track sections, and every single one of them kind of ended with the, "So we automated it with a Lambda Function." (laughing) Clearly a lot of capability for automation, in public Cloud. >> Jesse great to have you on theCube, CTO, Co-founder of ExtraHop. What's next for you? What's goin' on? What's next? >> Well, we continue to make really big investments on security, I wish I could say that cyber security would be done at some point, but it will never be done. It's an arms race. Right now I think we're seeing some really great advancements on the defense side, that will translate into big success. Always focusing on the data problem, as data goes from 10 gigabits to 100 gigabits. You know Amazon just announced their seat five accelerated 100 gigabit network adapter. Always looking at how can we extract more value from that data at scale. >> Leverage to power, leverage to power. Well, we got to get you back on the program. We're going to increase our cyber security coverage, we certainly will be at the security event, I didn't know it was announced publicly, June 26th and 27th, in Boston. Give or take a day on either side, could be 27th, 28th, 26th, 27th. This is a big move for Amazon, we'll be there. >> I think it is. >> Great job, live coverage here, from the floor, on the Expo floor at Amazon re:Invent in 2018, will be right back more Cube coverage, after this short break, two sets. We'll be right back. (soft electronic music)

>> Narrator: Live from Nashville, Tennessee, it's theCUBE covering COMMVAULT GO 2018 brought to you by COMMVAULT. >> Welcome back to Nashville, Tennessee. This is COMMVAULT GO and you're watching theCUBE. I'm Stu Miniman with my co-host Keith Townsend. Happy to welcome to the program Lauren Nelson who's a principal analyst with Forrester. Thank you so much for joining us. >> My pleasure! >> Alright, our first time doing theCUBE in Nashville. COMMVAULT goes third year at the show. Have you been to the COMMVAULT shows in the past? >> I have. Not last year but the year prior, first year. >> So you skipped a year. From two years ago, just from my own knowledge COMMVAULT's changed quite a bit. I mean, they had some pressures on them. They've been going through a lot of pricing models. What's your take on what COMMVAULT's been doing in the last couple years? >> Yeah, a lot of focus on the show on pricing model changes, packages changes, emphasis on selling through partners and how to try and foster that in the actual village space. So, how do you bring partners into conversations early on and in a smoother way and just looking around, you've got white boards on tables, you've got spaces very changed in terms of collaborative space right in the middle of the booths rather than around the perimeter. So, very very interesting layout. >> Alright, so Lauren, your research, one of the things that you focus on is cloud and cloud migrations which is, of course, one of the key messages COMMVAULT talks about. When I talk to users, the multi-cloud strategy that they're figuring out, as I say, the ink's still drying and it's one of those things that's revisited quite often. What are you hearing from customers? What's your research showing of the state of cloud and how cloud migration fits in to it? >> Yeah, so you've got two really big topics right now on the cloud space. You've got the migration side and you've got the multi-cloud side and they are the conversations going on right now. First of all, you've got migration which is not SAS migration but migrating an app to an infrastructure as a service environment and that is something that is difficult. And a lot of companies that are talking about cloud migration don't always recognize that. They sum it up to SAS migration and often find that they are going to have higher performance when they move. They don't look at the challenges or the architectural changes from moving to vertical scaling to horizontal scaling and it's this conversation where, well, if we hear one company doing it, then maybe that should be our entire cloud strategy, And for a number of organizations, it is. Especially if you look at small mid-size organizations, they're looking at cloud migration as a data center replacement method. If you look at the average enterprise, that's not the typical story unless they're in a unique moment of change. Typically, what they're looking at is a few apps typically driven by location or app specific support that they're planning to get from their service provider of choice and they're moving this app for specific reasons. If you look holistically at our latest stats, survey taken in August, shows that 69 percent of enterprises in North America and Europe are actually migrating workloads to the cloud. If you then ask about how, they're methods are all over the map, the number of total apps they're moving is far less than what we're made to believe, in some of the more sensationalized or exaggerated stories or kind of unique use cases. When you look at the other side of that, you've got the multi-cloud story which is, all of a sudden with this migration topic, you get organizations questioning, "Should I be multi-cloud? "Am I doing this wrong? Am I adding needless complexity?" And we saw a bit of a drop in 2016, after GE presented at Amazon Re: Event, on associating with the term multi-cloud, that that was their specific strategy. And we've actually seen that come back in spades. In fact, we've seen a number of organizations actually say they are multi-cloud and then they have various definitions of what multi-cloud means for them. Multi-cloud is either public and private, private and some public cloud usage, multiple public, non cloud plus cloud. It's all over the map. And so, I think organizations are starting to take a step back, starting to think about, "How does my cloud strategy map to my larger organizational values?" Should seem obvious that should've been done that way from the start but for a lot of organizations it's a unique step that they're doing this year of being more pragmatic on how they should approach cloud. Not trying to force fit deployment models and look at the real opportunities that are there. And that includes all of these things. It includes private cloud and your on-prime data center for using it for specific workloads, for use cases that it just does not make sense to have that much change at once or to force the economics. The other side, you do see cloud migration. That is very much a real thing. It is not the most exciting use case to cloud. You're moving an app that you're not changing at all in terms of customer experience to an environment that is not meant to handle it that may suffer from performance. So it tends to be the less sexy side of the cloud strategies that we see today but very much apart. And it is the use of infrastructures of service for just that cheap infrastructure rather than some of it's more compelling past services. So it's an interesting time! All of those conversations are emerging, in fact, I can't tell you how many research reports we have on queue on these very topics around just the one-on-one level which I think is what we've primarily covered. Just the grazing the surface versus some of the latest conversations around, how do we have cloud neutral pass services that are obstructed from the underlying platform. Who will deliver those? What technologies will be standardized beneath that? How will we leverage kubernetes and the many different types. So, It's an interesting thing that I'm pretty passionate about as you can see. >> Well Lauren, let's talk about that step to when I'm out talking to customers about multi-cloud. One, multi-cloud or even cloud migration, that you're absolutely right, I see the same thing. They need to answer the why question like, "why are we even considering that?" And for multi-cloud I think customers are starting to look back and really wonder, "do I need that complexity?" "Is it really worth the effort?" But the second thing that I think customers underestimate the complexity of is having a data strategy unique to cloud versus their data strategy on PRIM. Are you seeing the same, that customers are realizing, wow, that I can't just take wholesale of my data strategy, my own PRIM data strategy and take that to the cloud. >> Yup, and it's the classic analyst response is, it depends. There's some organizations that are literally creating two different data hubs where they're having different access levels and different apps that you're allowed to connect to based on what classification is for that particular data. It's this theme of zero trust model of, how do you secure from the data out? And simply put, some data sets are more valuable than others. Some have security requirements that are far more expensive to meet and when you try and problem solve for this, some people try and think, well, is the easiest way just to completely segment the two, and be able to have control of how you access these two, Or, is it more complex than that? Do we need different databases that we're leveraging? Do we need to look at migrating some days or replicating some data to avoid data out fees from some of the major service providers? Do we leverage a third party like a collocation provider that can provide some ease for us in terms of movement of data? So, I think that's one of the big topics in the upcoming year is if I'm going to to multi-cloud, if I'm going to take on that effort, why am I doing that? You know, why am I taking on this as an important app? Is it because of fear of lock-in and flexibility long term? And if I do that, what are the implications in terms of data both security wise and cost wise. And a lot of organizations' challenge is, you know, you write out your cloud security, or your actual cloud strategy map and you don't really understand the proof points or where that strategy breaks until you start getting in to the details, testing out and trying to do this to try and figure out what are the actual costs of this scenario. So it's a challenging problem but it's one that I think organizations are going to be facing for the next few years. >> Yeah, it's interesting and I'm thinking through some of this. A lot of what we're talking about is infrastructure. And it's like, my private cloud, how do I modernize it? How do I simplify it? The reason we have infrastructure is to run my applications and the most important piece there is the data. How much does the cloud strategies that the data companies are working on look at data and how they are going to take advantage of data even more in the future? >> Yeah, it's a great question and there's so many different sides of this. There's one, you've got GDPR which is making them think about data in a whole new level just from a security and compliance perspective and how quickly they can react to requests that are put in by a particular citizen about their knowing what's on file for them as well as requesting it to be deleted and being held accountable for ability to complete that. On the other hand, you've got organizations that are trying to draw insights that are trying to change customer experience, design new products, market to their organizations more effectively leveraging data that they don't know where it is, they don't know how to use it or even how to start thinking about it together. They have a shortage of data scientists. They have a shortage of ... tools and solutions that can help them try and piece together this challenge. So, I would say companies have done very little of this so far. It is something that's on the road map. You get some organizations that are in the lead, that are testing the waters right now but if you look at the average organizations, they haven't even gotten to this. They're trying to use public cloud for very low end use cases at this point. >> Alright. So, I want to ask you when you talk about your research, of course, it depends. The customer by customer what they're having, but what differentiates a customer that can really start kind of moving up the stack, being more strategic, having IT really answering to the business and doing things with their data versus the laggards out there? Is there anything that you're finding in your research as to what separates those leaders from laggards? >> There's a few things and I'm not the first. A lot of vendors look for changes in executive boards. So, typically new folks coming in trying to change the way things are being done. Kind of, fresh innovative talent. That's a good flag that they're ready for it. Other organizations, there's the classic, they're threatened by others in their industry or believe they'll be threatened soon. For some organizations, it happens to be the right place, the right time. They have a leader they can trust that they believe will head this cloud strategy and that can tackle some of these challenges. For a lot of organizations, there's the desire, there is some action but often times the action is delayed. They face very stagnant cloud strategies. They face very stagnant data problems cause they're either missing cash, they're missing the ear of their executive board, or they have the wrong individuals that are trying to take the torch forward. So it takes a lot of critical self reflection as an organization that isn't easy. >> So let's talk a little about that (mumbles) within organizations. A lot of times, I'm seeing multi-cloud, cloud migration, cloud efforts being driven by, not just IT but infrastructure organizations within IT. Are you seeing successful efforts being driven from, I call that bottom up, versus whether if it's evens some VP or above, driving the effort from a business perspective? >> I think it varies. So, there some organizations where it's, our VPs are bringing a cloud first policy to our organization and then you have to figure out what that means to that particular executive. It may mean, we are going to go AWS completely all now! For a lot of organizations, it's a progress of, we're going to include all things that could be possibly labeled as cloud technologies, which, doesn't really describe much. If it does anything, it's to describe change is on the horizon. We are going to do things differently than we previously did. For a lot of companies, they have been tasked by their executives of, you need to tell me what to do for the cloud strategy and so they're trying to figure out, how do we problem solve for cloud from our perspective. I think that's been on of the biggest problems of the cloud industry for the last seven years, is this bottom up approach or top down approach with very little thinking about where's the value. So, bottom up, typically you get folks thinking about how to we have more efficient infrastructure, how do we modernize, how do we add in automation and build the best private cloud in the world? And often times over spending, often times delaying and having no self service access for developers for five years into their strategy. From that you see a lot of organizations trying to redesign their cloud strategies to deliver real business value up front early on and then look to see, how do they modernize, how do they mature, to help support and scale that effort, where as, top down approaches are very froofie, high level, shiny objects and so a lot of organizations that are trying to change that are trying to get individuals in the same room together, figure out, let's start from our business strategy and work our way in to how cloud serves that greater purpose. >> Lauren, when Forrester talks to customers, this space of data protection, secondary storage, whatever you call it, is pretty crowded. Are there specific things that, customers are calling out or that Forrester gives advices to how to differentiate in the market place or what they're looking for? And along those lines, what're customers looking for down the road to even expand more and get more value from vendors in the future? >> Yeah, I tend to focus on the cloudy questions. So, when I'm looking at data protection, I'm looking at it as a module of, how you manage multiple clouds. And when you look at the hyper cloud management space, it's a very busy space. It tends to focus on orchestration, template building, occasionally some compliance and policy, tags that can be applied, and then cost optimization. Very little has been done on the security side so far and very little has been done on data production side. So, when you look at, how do you differentiate, there's not a lot of players in this market yet. For as many security players as there are, it has not been aggressively tackled as heavily as the classic management providers have been attacking other management challenges. You look at the cloud costs optimization space, it's done very well. It's the first cloud challenge that organizations are trying to solve is, how much am I spending? Who's spending it? How do I integrate with my billing system? The next challenge is, how do I problem solve for data. They see that as a potentially huge cost escalator if they don't get this under control for many reasons, compliance, from data out costs. So, that's the next beach head. So, I would actually argue that there's not a lot that's been done specifically around cloud in this space yet. >> Lauren Nelson, we really appreciate you sharing your insight in customer views with us. >> My pleasure! Thank you. >> Alright, for Keith Townsend, I'm Stu Miniman, we'll be back with more coverage here from COMMVAULT GO, in Nashville, Tennessee, Thanks for Watching theCUBE.

>> Narrator: Live from Las Vegas, it's theCUBE. Covering AWS re:Invent 2017 presented by AWS, Intel and our ecosystem of partners. >> Hello and welcome back. Live here is theCUBE's exclusive coverage here in Las Vegas. 45,000 people attending Amazon Web Services' AWS re:Invent 2017. I'm John Furrier with Lisa Martin. Our next guest is Miles Kingston, he is the General Manager of the Smart Home Group at Intel Corporation. Miles, it's great to have you. >> Thank you so much for having me here, I'm really happy to be here. >> Welcome to theCUBE Alumni Club. First time on. All the benefits you get as being an Alumni is to come back again. >> Can't wait, I'll be here next year, for sure. >> Certainly, you are running a new business for Intel, I'd like to get some details on that, because smart homes. We were at the Samsung Developer Conference, we saw smart fridge, smart living room. So we're starting to see this become a reality, for the CES, every 10 years, that's smart living room. So finally, with cloud and all of the computing power, it's arrived or has it? >> I believe we're almost there. I think the technology has finally advanced enough and there is so much data available now that you have this combination of this technology that can analyze all of this data and truly start doing some of the artificial intelligence that will help you make your home smarter. >> And we've certainly seen the growth of Siri with Apple, Alexa for the home with Amazon, just really go crazy. In fact, during the Industry Day, yesterday, you saw the repeat session most attended by developers, was Alexa. So Alexa's got the minds and has captured the imagination of the developers. Where does it go from here and what is the difference between a smart home and a connected home? Can you just take a minute to explain and set the table on that? >> Yeah and I agree, the voice capability in the home, it's absolutely foundational. I think I saw a recent statistic that by 2022, 55% of US households are expected to have a smart speaker type device in their home. So that's a massive percentage. So I think, if you look in the industry, connected home and smart home, they're often use synonymously. We personally look at it as an evolution. And so what I mean by that is, today, we think the home is extremely connected. If I talk about my house, and I'm a total geek about this stuff, I've got 60 devices connected to an access point, I've got another 60 devices connected to an IOT hub. My home does not feel very smart. It's crazy connected, I can turn on lights on and off, sprinklers on and off, it's not yet smart. What we're really focused on at Intel, is accelerating that transition for your home to truly become a smart home and not just a connected home. >> And software is a key part of it, and I've seen developers attack this area very nicely. At the same time, the surface area with these Smart Homes for security issues, hackers. Cause WiFi is, you can run a process on, these are computers. So how does security fit into all of this? >> Yeah, security is huge and so at Intel we're focused on four technology pillars, which we'll get through during this discussion. One of the first ones is connectivity, and we actually have technology that goes into a WiFi access point, the actual silicon. It's optimized for many clients to be in the home, and also, we've partnered with companies, like McAfee, on security software that will sit on top of that. That will actually manage all of the connected devices in your home, as that extra layer of security. So we fundamentally agree that the security is paramount. >> One of the things that I saw on the website that says, Intel is taking a radically different approach based on proactive research into ways to increase smart home adoption. What makes Intel's approach radically different? >> Yeah, so I'm glad that you asked that. We've spent years going into thousands of consumers' homes in North America, Western Europe, China, etc. To truly understand some of the pain points they were experiencing. From that, we basically, gave all this information to our architects and we really synthesized it into what areas we need to advance technology to enable some of these richer use cases. So we're really working on those foundational building blocks and so those four ones I mentioned earlier, connectivity, that one is paramount. You know, if you want to add 35 to 100 devices in your home, you better make sure they're all connected, all the time and that you've got good bandwidth between them. The second technology was voice, and it's not just voice in one place in your home, it's voice throughout your home. You don't want to have to run to the kitchen to turn your bedroom lights on. And then, vision. You know, making sure your home has the ability to see more. It could be cameras, could be motion sensors, it could be vision sensors. And then this last one is this local intelligence. This artificial intelligence. So the unique approach that Intel is taking is across all of our assets. In the data center, in our artificial intelligence organization, in our new technology organization, our IOT organization, in our client computing group. We're taking all of these assets and investing them in those four pillars and kind of really delivering unique solutions, and there's actually a couple of them that have been on display this week so far. >> How about DeepLens? That certainly was an awesome keynote point, and the device that Andy introduced is essentially a wireless device, that is basically that machine learning an AI in it. And that is awesome, because it's also an IOT device, it's got so much versatility to it. What's behind that? Can you give some color to DeepLens? What does it mean for people? >> So, we're really excited about that one. We partnered with Amazon at AWS on that for quite some time. So, just a reminder to everybody, that is the first Deep Learning enabled wireless camera. And what we're helped do in that, is it's got an Intel Atom processor inside that actually runs the vision processing workload. We also contributed a Deep Learning toolkit, kind of a software middleware layer, and we've also got the Intel Compute Library for deep neural networks. So basically, a lot of preconfigured algorithms that developers can use. The bigger thing, though, is when I talked about those four technology pillars; the vision pillar, as well as the artificial intelligence pillar, this is a proof point of exactly that. Running an instance of the AWS service on a local device in the home to do this computer vision. >> When will that device be available? And what's the price point? Can we get our hands on one? And how are people going to be getting this? >> Yeah, so what was announced during the keynote today is that there are actually some Deep Learning workshops today, here at re:Invent where they're actually being given away, and then actually as soon as the announcement was made during the keynote today, they're actually available for pre-order on Amazon.com right now. I'm not actually sure on the shipping date on Amazon, but anybody can go and check. >> Jeff Frick, go get one of those quickly. Order it, put my credit card down. >> Miles: Yes, please do. >> Well, that's super exciting and now, where's the impact in that? Because it seems like it could be a great IOT device. It seems like it would be a fun consumer device. Where do you guys see the use cases for these developing? >> So the reason I'm excited about this one, is I fundamentally believe that vision is going to enable some richer use cases. The only way we're going to get those though, is if you get these brilliant developers getting their hands on the hardware, with someone like Amazon, who's made all of the machine learning, and the cloud and all of the pieces easier. It's now going to make it very easy for thousands, ideally, hundreds of thousands of developers to start working on this, so they can enable these new use cases. >> The pace of innovation that AWS has set, it's palpable here, we hear it, we feel it. This is a relatively new business unit for Intel. You announced this, about a year ago at re:Invent 2016? Are you trying to match the accelerated pace of innovation that AWS has? And what do you see going on in the next 12 months? Where do you think we'll be 12 months from now? >> Yeah, so I think we're definitely trying to be a fantastic technology partner for Amazon. One of the things we have since last re:Invent is we announced we were going to do some reference designs and developer kits to help get Alexa everywhere. So during this trade show, actually, we are holding, I can't remember the exact number, but many workshops, where we are providing the participants with a Speech Enabling Developer toolkit. And basically, what this is, is it's got an Intel platform, with Intel's dual DSP on it, a microarray, and it's paired with Raspberry Pi. So basically, this will allow anybody who already makes a product, it will allow them to easily integrate Alexa into that product with Intel inside. Which is perfect for us. >> So obviously, we're super excited, we love the cloud. I'm kind of a fanboy of the cloud, being a developer in my old days, but the resources that you get out of the cloud are amazing. But now when you start looking at these devices like DeepLens, the possibilities are limitless. So it's really interesting. The question I have for you is, you know, we had Tom Siebel on earlier, pioneer, invented the CRM category. He's now the CEO of C3 IOT, and I asked him, why are you doing a startup, you're a billionaire. You're rich, you don't need to do it. He goes, "I'm a computer guy, I love doing this." He's an entrepreneur at heart. But he said something interesting, he said that the two waves that he surfs, they call him a big time surfer, he's hanging 10 on the waves, is IOT and AI. This is an opportunity for you guys to reimagine the smart home. How important is the IOT trend and the AI trend for really doing it right with smart home, and whatever we're calling it. There's an opportunity there. How are you guys viewing that vision? What progress points have you identified at Intel, to kind of, check? >> Completely agree. For me, AI really is the key turning point here. 'Cause even just talking about connected versus smart, the thing that makes it smart is the ability to learn and think for itself. And the reason we have focused on those technology pillars, is we believe that by adding voice everywhere in the home, and the listening capability, as well as adding the vision capability, you're going to enable all of this rich new data, which you have to have some of these AI tools to make any sense of, and when you get to video, you absolutely have to have some amount of it locally. So, that either for bandwidth reasons, for latency reasons, for privacy reasons, like some of the examples that were given in the keynote today, you just want to keep that stuff locally. >> And having policy and running on it, you know, access points are interesting, it gives you connectivity, but these are computers, so if someone gets malware on the home, they can run a full threaded process on these machines. Sometimes you might not want that. You want to be able to control that. >> Yes, absolutely. We would really believe that the wireless access point in the home is one of the greatest areas where you can add additional security in the home and protect all of the devices. >> So you mentioned, I think 120 different devices in your home that are connected. How far away do you think your home is from being, from going from connected to smart? What's that timeline like? >> You know what I think, honestly, I think a lot of the hardware is already there. And the examples I will give is, and I'm not just saying this because I'm here, but I actually do have 15 Echos in my house because I do want to be able to control all of the infrastructure everywhere in the home. I do believe in the future, those devices will be listening for anomalies, like glass breaking, a dog barking, a baby crying, and I believe the hardware we have today is very capable of doing that. Similarly, I think that a lot of the cameras today are trained to, whenever they see motion, to do certain things and to start recording. I think that use case is going to evolve over time as well, so I truly believe that we are probably two years away from really seeing, with some of the existing infrastructure, truly being able to enable some smarter home use cases. >> The renaissance going on, the creativity is going to be amazing. I'm looking at a tweet that Bert Latimar, from our team made, on our last interview with the Washington County Sheriff, customer of Amazon, pays $6 a month for getting all the mugshots. He goes, "I'm gonna use DeepLens for things like "recognizing scars and tattoos." Because now they have to take pictures when someone comes in as a criminal, but now with DeepLens, they can program it to look for tattoos. >> Yeah, absolutely. And if you see things like the Ring Doorbell today, they have that neighborhood application of it so you can actually share within your local neighborhood if somebody had a package stolen, they can post a picture of that person. And even just security cameras, my house, it feels like Fort Knox sometimes, I've got so many security cameras. It used to be, every time there was a windstorm, I got 25 alerts on my phone, because a branch was blowing. Now I have security cameras that actually can do facial recognition and say, your son is home, your daughter is home, your wife is home. >> So are all the houses going to have a little sign that says,"Protected by Alexa and Intel and DeepLens" >> Don't you dare, exactly. (laughs) >> Lisa: And no sneaking out for the kids. >> Yes, exactly. >> Alright, so real quick to end the segment, quickly summarize and share, what is the Intel relationship with Amazon Web Services? Talk about the partnership. >> It's a great relationship. We've been partnering with Amazon for over a decade, starting with AWS. Over the last couple of years, we've started working closely with them on their first party products. So, many of you have seen the Echo Show and the Echo Look, that has Intel inside. It also has a RealSense Camera in the Look. We've now enabled the Speech Enabling Developer Kit, which is meant to help get Alexa everywhere, running on Intel. We've now done DeepLens, which is a great example of local artificial intelligence. Partnered with all the work we've done with them in the cloud, so it really is, I would say the partnership expands all the way from the very edge device in the home, all the way to the cloud. >> Miles, thanks for coming, Miles Kingston with Intel, General Manager of the Smart Home Group, new business unit at Intel, really reimagining the future for people's lives. I think in this great case where technology can actually help people, rather than making it any more complicated. Which we all know if we have access points and kids gaming, it can be a problem. It's theCUBE, live here in Las Vegas. 45,000 people here at Amazon re:Invent. Five years ago, our first show, only 7,000. Now what amazing growth. Thanks so much for coming out, Lisa Martin and John Furrier here, reporting from theCUBE. More coverage after this short break. (light music)