>>Hey guys and girls, welcome back to Motor City, Lisa Martin here with John Furrier on the Cube's third day of coverage of Coon Cloud Native Con North America. John, we've had some great conversations over the last two and a half days. We've been talking about identity and security management as a critical need for enterprises within the cloud native space. We're gonna have another quick conversation >>On that. Yeah, we got a great segment coming up from someone who's been in the industry, a long time expert, running a great company. Now it's gonna be one of those pieces that fits into what we call super cloud. Others are calling cloud operating system. Some are calling just Cloud 2.0, 3.0. But there's definitely a major trend happening around how cloud is going Next generation. We've been covering it. So this segment should be >>Great. Let's unpack those trends. One of our alumni is back with us, O Rika Zi, co-founder and CEO of Aerio. Omri. Great to have you back on the >>Cube. Thank you. Great to be here. >>So identity move to the cloud, Access authorization did not talk to us about why you found it assertive, what you guys are doing and how you're flipping that script. >>Yeah, so back 15 years ago, I helped start Azure at Microsoft. You know, one of the first few folks that you know, really focused on enterprise services within the Azure family. And at the time I was working for the guy who ran all of Windows server and you know, active directory. He called it the linchpin workload for the Windows Server franchise, like big words. But what he meant was we had 95% market share and all of these new SAS applications like ServiceNow and you know, Workday and salesforce.com, they had to invent login and they had to invent access control. And so we were like, well, we're gonna lose it unless we figure out how to replace active directory. And that's how Azure Active Directory was born. And the first thing that we had to do as an industry was fix identity, right? Yeah. So, you know, we worked on things like oof Two and Open, Id Connect and SAML and Jot as an industry and now 15 years later, no one has to go build login if you don't want to, right? You have companies like Odd Zero and Okta and one login Ping ID that solve that problem solve single sign-on, on the web. But access Control hasn't really moved forward at all in the last 15 years. And so my co-founder and I who were both involved in the early beginnings of Azure Active directory, wanted to go back to that problem. And that problem is even bigger than identity and it's far from >>Solved. Yeah, this is huge. I think, you know, self-service has been a developer thing that's, everyone knows developer productivity, we've all experienced click sign in with your LinkedIn or Twitter or Google or Apple handle. So that's single sign on check. Now the security conversation kicks in. If you look at with this no perimeter and cloud, now you've got multi-cloud or super cloud on the horizon. You've got all kinds of opportunities to innovate on the security paradigm. I think this is kind of where I'm hearing the most conversation around access control as well as operationally eliminating a lot of potential problems. So there's one clean up the siloed or fragmented access and two streamlined for security. What's your reaction to that? Do you agree? And if not, where, where am I missing that? >>Yeah, absolutely. If you look at the life of an IT pro, you know, back in the two thousands they had, you know, l d or active directory, they add in one place to configure groups and they'd map users to groups. And groups typically corresponded to roles and business applications. And it was clunky, but life was pretty simple. And now they live in dozens or hundreds of different admin consoles. So misconfigurations are rampant and over provisioning is a real problem. If you look at zero trust and the principle of lease privilege, you know, all these applications have these course grained permissions. And so when you have a breach, and it's not a matter of if, it's a matter of when you wanna limit the blast radius of you know what happened, and you can't do that unless you have fine grained access control. So all those, you know, all those reasons together are forcing us as an industry to come to terms with the fact that we really need to revisit access control and bring it to the age of cloud. >>You guys recently, just this week I saw the blog on Topaz. Congratulations. Thank you. Talk to us about what that is and some of the gaps that's gonna help sarto to fill for what's out there in the marketplace. >>Yeah, so right now there really isn't a way to go build fine grains policy based real time access control based on open source, right? We have the open policy agent, which is a great decision engine, but really optimized for infrastructure scenarios like Kubernetes admission control. And then on the other hand, you have this new, you know, generation of access control ideas. This model called relationship based access control that was popularized by Google Zanzibar system. So Zanzibar is how they do access control for Google Docs and Google Drive. If you've ever kind of looked at a Google Doc and you know you're a viewer or an owner or a commenter, Zanzibar is the system behind it. And so what we've done is we've married these two things together. We have a policy based system, OPPA based system, and at the same time we've brought together a directory, an embedded directory in Topaz that allows you to answer questions like, does this user have this permission on this object? And bringing it all together, making it open sources a real game changer from our perspective, real >>Game changer. That's good to hear. What are some of the key use cases that it's gonna help your customers address? >>So a lot of our customers really like the idea of policy based access management, but they don't know how to bring data to that decision engine. And so we basically have a, you know, a, a very opinionated way of how to model that data. So you import data out of your identity providers. So you connect us to Okta or oze or Azure, Azure Active directory. And so now you have the user data, you can define groups and then you can define, you know, your object hierarchy, your domain model. So let's say you have an applicant tracking system, you have nouns like job, you know, know job descriptions or candidates. And so you wanna model these things and you want to be able to say who has access to, you know, the candidates for this job, for example. Those are the kinds of rules that people can express really easily in Topaz and in assertive. >>What are some of the challenges that are happening right now that dissolve? What, what are you looking at to solve? Is it complexity, sprawl, logic problems? What's the main problem set you guys >>See? Yeah, so as organizations grow and they have more and more microservices, each one of these microservices does authorization differently. And so it's impossible to reason about the full surface area of, you know, permissions in your application. And more and more of these organizations are saying, You know what, we need a standard layer for this. So it's not just Google with Zanzibar, it's Intuit with Oddy, it's Carta with their own oddy system, it's Netflix, you know, it's Airbnb with heed. All of them are now talking about how they solve access control extracted into its own service to basically manage complexity and regain agility. The other thing is all about, you know, time to market and, and tco. >>So, so how do you work with those services? Do you replace them, you unify them? What is the approach that you're taking? >>So basically these organizations are saying, you know what? We want one access control service. We want all of our microservices to call that thing instead of having to roll out our own. And so we, you know, give you the guts for that service, right? Topaz is basically the way that you're gonna go implement an access control service without having to go build it the same way that you know, large companies like Airbnb or Google or, or a car to >>Have. What's the competition look like for you guys? I'm not really seeing a lot of competition out there. Are there competitors? Are there different approaches? What makes you different? >>Yeah, so I would say that, you know, the biggest competitor is roll your own. So a lot of these companies that find us, they say, We're sick and tired of investing 2, 3, 4 engineers, five engineers on this thing. You know, it's the gift that keeps on giving. We have to maintain this thing and so we can, we can use your solution at a fraction of the cost a, a fifth, a 10th of what it would cost us to maintain it locally. There are others like Sty for example, you know, they are in the space, but more in on the infrastructure side. So they solve the problem of Kubernetes submission control or things like that. So >>Rolling your own, there's a couple problems there. One is do they get all the corner cases who built a they still, it's a company. Exactly. It's heavy lifting, it's undifferentiated, you just gotta check the box. So probably will be not optimized. >>That's right. As Bezo says, only focus on the things that make your beer taste better. And access control is one of those things. It's part of your security, you know, posture, it's a critical thing to get right, but you know, I wanna work on access control, said no developer ever, right? So it's kind of like this boring, you know, like back office thing that you need to do. And so we give you the mechanisms to be able to build it securely and robustly. >>Do you have a, a customer story example that is one of your go-tos that really highlights how you're improving developer productivity? >>Yeah, so we have a couple of them actually. So there's the largest third party B2B marketplace in the us. Free retail. Instead of building their own, they actually brought in aer. And what they wanted to do with AER was be the authorization layer for both their externally facing applications as well as their internal apps. So basically every one of their applications now hooks up to AER to do authorization. They define users and groups and roles and permissions in one place and then every application can actually plug into that instead of having to roll out their own. >>I'd like to switch gears if you don't mind. I get first of all, great update on the company and progress. I'd like to get your thoughts on the cloud computing market. Obviously you were your legendary position, Azure, I mean look at the, look at the progress over the past few years. Just been spectacular from Microsoft and you set the table there. Amazon web service is still, you know, thundering away even though earnings came out, the market's kind of soft still. You know, you see the cloud hyperscalers just continuing to differentiate from software to chips. Yep. Across the board. So the hyperscalers kicking ass taking names, doing great Microsoft right up there. What's the future? Cuz you now have the conversation where, okay, we're calling it super cloud, somebody calling multi-cloud, somebody calling it distributed computing, whatever you wanna call it. The old is now new again, it just looks different as cloud becomes now the next computer industry, >>You got an operating system, you got applications, you got hardware, I mean it's all kind of playing out just on a massive global scale, but you got regions, you got all kinds of connected systems edge. What's your vision on how this plays out? Because things are starting to fall into place. Web assembly to me just points to, you know, app servers are coming back, middleware, Kubernetes containers, VMs are gonna still be there. So you got the progression. What's your, what's your take on this? How would you share, share your thoughts to a friend or the industry, the audience? So what's going on? What's, what's happening right now? What's, what's going on? >>Yeah, it's funny because you know, I remember doing this quite a few years ago with you probably in, you know, 2015 and we were talking about, back then we called it hybrid cloud, right? And it was a vision, but it is actually what's going on. It just took longer for it to get here, right? So back then, you know, the big debate was public cloud or private cloud and you know, back when we were, you know, talking about these ideas, you know, we said, well you know, some applications will always stay on-prem and some applications will move to the cloud. I was just talking to a big bank and they basically said, look, our stated objective now is to move everything we can to the public cloud and we still have a large private cloud investment that will never go away. And so now we have essentially this big operating system that can, you know, abstract all of this stuff. So we have developer platforms that can, you know, sit on top of all these different pieces of infrastructure and you know, kind of based on policy decide where these applications are gonna be scheduled. So, you know, the >>Operating schedule shows like an operating system function. >>Exactly. I mean like we now, we used to have schedulers for one CPU or you know, one box, then we had schedulers for, you know, kind of like a whole cluster and now we have schedulers across the world. >>Yeah. My final question before we kind of get run outta time is what's your thoughts on web assembly? Cuz that's getting a lot of hype here again to kind of look at this next evolution again that's lighter weight kind of feels like an app server kind of direction. What's your, what's your, it's hyped up now, what's your take on that? >>Yeah, it's interesting. I mean back, you know, what's, what's old is new again, right? So, you know, I remember back in the late nineties we got really excited about, you know, JVMs and you know, this notion of right once run anywhere and yeah, you know, I would say that web assembly provides a pretty exciting, you know, window into that where you can take the, you know, sandboxing technology from the JavaScript world, from the browser essentially. And you can, you know, compile an application down to web assembly and have it real, really truly portable. So, you know, we see for example, policies in our world, you know, with opa, one of the hottest things is to take these policies and can compile them to web assemblies so you can actually execute them at the edge, you know, wherever it is that you have a web assembly runtime. >>And so, you know, I was just talking to Scott over at Docker and you know, they're excited about kind of bringing Docker packaging, OCI packaging to web assemblies. So we're gonna see a convergence of all these technologies right now. They're kind of each, each of our, each of them are in a silo, but you know, like we'll see a lot of the patterns, like for example, OCI is gonna become the packaging format for web assemblies as it is becoming the packaging format for policies. So we did the same thing. We basically said, you know what, we want these policies to be packaged as OCI assembly so that you can sign them with cosign and bring the entire ecosystem of tools to bear on OCI packages. So convergence is I think what >>We're, and love, I love your attitude too because it's the open source community and the developers who are actually voting on the quote defacto standard. Yes. You know, if it doesn't work, right, know people know about it. Exactly. It's actually a great new production system. >>So great momentum going on to the press released earlier this week, clearly filling the gaps there that, that you and your, your co-founder saw a long time ago. What's next for the assertive business? Are you hiring? What's going on there? >>Yeah, we are really excited about launching commercially at the end of this year. So one of the things that we were, we wanted to do that we had a promise around and we delivered on our promise was open sourcing our edge authorizer. That was a huge thing for us. And we've now completed, you know, pretty much all the big pieces for AER and now it's time to commercially launch launch. We already have customers in production, you know, design partners, and you know, next year is gonna be the year to really drive commercialization. >>All right. We will be watching this space ery. Thank you so much for joining John and me on the keep. Great to have you back on the program. >>Thank you so much. It was a pleasure. >>Our pleasure as well For our guest and John Furrier, I'm Lisa Martin, you're watching The Cube Live. Michelle floor of Con Cloud Native Con 22. This is day three of our coverage. We will be back with more coverage after a short break. See that.

>> Narrator: theCUBE presents KubeCon, and CloudNativeCon Europe, 2022, brought to you by Red Hat, the Cloud Native Computing Foundation, and its ecosystem partners. >> Welcome to Valencia, Spain and KubeCon, CloudNativeCon Europe, 2022. I'm Keith Townsend, and we're continuing the conversation with builders, startups, large enterprise, customers, small customers, the whole community. Just got a interesting stat earlier in the day, 7.1 million community members in the CNCF foundation, and we're been interacting with 7,500 of them. But we're bringing the signal, separating the signal from the noise. We have a Kube alum who's been on both sides of the table, Omri Gazitt co-founder and CEO of Aserto. Welcome to the show. >> Thank you so much, Keith. >> So identity management, you know it's, it's critical need to the enterprise cloud native but there's plenty of solutions on the market, what unique problem are you solving you know how are you solving the problem in a unique way that we don't go to some of the big named vendors in this space? >> Yeah, we, my co-founder and I, were veterans of large clouds. We helped start Azure at Microsoft. We in fact helped build what became Azure Active Directory and those solutions entirely focus on one part, the "I" part, the identity part of the problem. They completely ignore the access management part and you could argue that is a larger problem and it is far from solved. So we completely agree. Identity management, a problem that's been solved over the last 15 years and solved well by great companies like Microsoft and Okta and Auth0. And we're best friends with them. We basically pick up where they leave off. We do the access management part. >> So the access management part, what specifically, what what am I getting when I engage with your team and your product? >> Yep. So basically I, authentication is all about proving that you are, who you say you are through a password or something else, you know, biometric. And that part is done. We basically pick up where that leaves off. So once you know who you are, once you've proven to a system that you are Keith. Now, what can Keith do? What roles, what permissions, , what operations can Keith perform on what resources? That's a harder problem. And that's the problem that we focus on. So for example, if you have a SaaS app - let's say you're building, you know an applicant tracking system and you Keith are an owner of some job descriptions and you have some candidates, but  somebody else has a different set of candidates and an admin, maybe has visibility at everything. How do you build that system? That actually is a pretty hard problem. And how do you build it to enterprise grade? That's where we come in. We basically have an end-to-end solution that gives you cloud native, end-to-end authorization that's built to enterprise grade. >> So when I think of this capability, I can't help but to think of AWS IAM and I'm in AWS IAM, I get my security role, and now I can assign to an EC2 instance, the ability to access some other AWS service or identity. So role based identity - are you giving me that type of capability? >> For everything else. So AWS IAM for AWS resources right? Google IAM for Google Resources. Azure has a similar system but they're all infrastructure focused. And what we're trying to do is bring that to your domain specific resources, right? So you, as an application builder, you have the things that correspond  you're not doing VMs, you're not doing storage arrays, you're not doing networks. You have higher level constructs, right. You know, like I said, if you're building Lever or Greenhouse, you have candidates and jobs and reports and things like that. So we basically allow you to create this fine grained access control, but for your own objects. >> So where's the boundaries? Let's say that I have a container or microservice that is a service and it has a role, it has an identity on my network. And there is a cloud based service, let's say a, a cloud SQL. And I want to do authentication across the two or can I only have the boundaries within my private infrastructure or does that boundary extend to the public cloud as well? >> It extends everywhere, right. So basically, you know, if you think about all the different hops here, you know, Zero Trust is the, the rage, right? And that encourages defense in depth. So you have an access proxy that does some type of authorization. Then you have an API Gateway that has a little bit more context, a little bit more authorization. For us we live inside of the application. So the application calls us, we give you a sidecar, you deploy it right next to your application. It gives you, you know, sub-millisecond response time, a hundred percent availability, all the authorization decisions are done with full context about who the user is and what resource they're trying to access. And so our sidecar will give you a response back, allow or deny, and then downstream from us, you could basically talk to another microservice. And at that point you're doing machine identities, right? So you may have a different authorization policy for those, only you know these particular services, are allowed to talk to these other services. And so we solve both the, you know authorization for machine identities as well as authorization for human identities. >> All right Omri are you ready for Q Clock? >> I sure am! >> Oh, I like the energy. >> Bring it on. >> You know, there have been many before you, they have failed the test. >> All right. I mean, they brought, they've brought the energy. You have the energy but do you have the ability to survive the clock? >> I'm going to do my best. >> So I'm going to say start the clock. I haven't said, said start cube clock yet, but when I say it, you have 60 seconds. There's no start overs. There's no repeats. The pressure's on, you ready? >> All right. I'm ready. >> Ready? Start Cube Clock. >> All right. If you are a VP of Engineering or a CTO or run a security or engineering organization what are you doing for roles and permissions? You're building it on your own, right? >> Tough times never last, tough people always do, and you're, you're delaying, you're letting me break you up. >> All right, I'm not going to let you break me up. Great. So you don't want to build it yourself. You don't want to build it yourself. Why would you spend engineering time? Why would you spend, you know, the- >> You deserve a seat at the table. >> No but look, why would you ever spend your time building something that is not differentiating your application? Instead use something like Aserto, just dear God use something, use a developer API. Don't build it yourself because what are you doing? You're reinventing the wheel, you know. You want to get out of the business of reinventing the wheel. >> Crawl before you walk. (Omri laughs) >> You think so? I think, I think you have to go you know, make sure that you spend your engineering resources on the things that matter and the things that matter are. >> Time up. >> Yep. >> You know what? You threw three great curve balls and struck me out. Great job. (Omri laughs) You, you, you just knocked it out the park. Great job Omri, I appreciate you coming in, stopping by, sharing your company's journey about authorization and authorization services and getting kind of this cloud capability, the cloud native. >> I appreciate your time as well Keith, always a pleasure. >> From Valencia Spain, I'm Keith Townsend, and you're watching theCUBE, the leader in high tech coverage. (soft instrumental music)

from the cube studios in Palo Alto in Boston connecting with thought leaders all around the world this is a cube conversation vibrator this is Dave Volante and welcome to this special cube conversation as you know I've been running a CXO series now for several weeks really trying to understand how leaders are dealing and coping with the Cova 19 crisis today we want to switch gears a little bit and talk not only about how leadership has sort of navigated through this crisis but also start to imagine what it's going to look like coming out of it I'm going to introduce you to a company that have been talking about now for the last well six to nine months company called octave as you know from my previous breaking analysis this is a company that not only is in the security business they really kind of made their mark with identification management but also really there's a data angle normally when you think about security you thinking about auto security it means that less user flexibility it means less value from the user standpoint what what octa has done really successfully is bring together both endpoint security as well as that data angle and so the company is about six hundred million dollars in revenue they've got an eighteen billion dollar valuation which you know may sound kind of rich at 30 X a revenue multiple but as I've reported the company is growing very rapidly I've talked about the you know the rule of 40 octa is really a rule of 50 type of company you know by that definition they're with me here to talk about the product side of things as dia jolly who's the chief product officer yeah thanks so much for coming on the cube I hope you're doing okay how are things out in California things are going well good to meet you as well Dave I hope you're doing well as well yeah we're hanging in there you know the studios are rocking the cube you know continues our daily reporting I want to start with your role you're relatively new to octa you've got a really interesting background particularly understanding endpoints you're at Google Google home of Google Nest you spent some time you know worrying about looking after Xbox do you a good understanding of what's going on in the marketplace but talk about your your role and how specifically you're bringing that to enterprise sure so I drove about this I I say that I've done every kind of known product management imaginable the man at this point I'm done both Hardware Don software so dealt a lot with endpoints as you talked about that a lot with sass dealt with consumer dealt with enterprise and all over the place completely different sizes so after really my role as a chief product officer is to be able to understand and what our customers need right and what are the challenges they're facing and not just the challenges they're facing today but also what are the challenges that they'll face tomorrow that they don't even know about and then help build products to be able to overcome that both with our engineering teams as well as with our sales engineering team so that we can take it to market now my background is unique because I've seen so many identity being used in so many different ways across so many different use cases whether it's enterprise or its consumer and that given that we covered both sides spectrum I can bring that to bear yes so what I've reported previously is that that you guys kind of made your mark with with identification management but in terms of both workforce but also customer identification management which has been I think allowed you to be very very successful I want to bring up a chart and share something that I've I've shared a lot of data with our audience previously some guys if you bring that up so this is data from enterprise Technology Research our data partner and for those who follow this program you know we we generally talk in in two metrics a net score which is a measure of spending momentum and and also market share which really isn't real market share but it's it's pervasiveness in the survey and what you can see here is the latest April survey from over 1200 CIOs and IT practitioners and we're isolating on an octa and and we brought it back to July 15 survey you see a couple of points here I want to make one is it something to the right this is pervasiveness or market share so octa in the market is doing very very well it's why the valuation is so high what's driving the growth and then you can see in the green a 55% net net score very very strong it's one of the leaders in security but as I said it's more than than that so dia from a product standpoint what is powering this momentum sure so as you well know the world is working from home what after does is it provides Identity Management that allows you to connect to any technology and by any technology it primarily means technology technology that's not just on premise like your applications on-premise old-school applications or into software that's on premise but it also means technology that's in the clouds of SAS applications application infrastructure that's in the cloud etc and on the other hand it also allows companies to deploy applications where they can connect to their customers online so as more and more of the world moves to work from home you need to be able to securely and seamlessly allow your employees your partners to be able to connect from their home and to be able to do their work and that's the foundation that we provide now if you look at if you we've heard a lot in the press about companies like zoom slack people that provide online collaboration and their usage has gone up we're seeing similar trends across both octa as well as the entire security industry in general right and if you look at information recently since over to started phishing attacks have increased by six hundred and sixty seven percent and what we've seen in response is one of our products which is multi-factor authentication we've experienced in eighty percent growth in usage so really as Corvette has pushed forward there was a trend for people to be able to work remotely for people to be able to access cloud apps and but as ubered has suddenly poured gas on the fire for that we're seeing our customers reaching out to us a lot more needing more support and just the level of awareness and the level of interest raising let's talk about some of the trends that you guys see in the marketplace and like to better understand how that informs your product or you know roadmap and decisions you know obviously this cloud you guys have made a really good mark in the cloud space you know with both your your operating model your pricing model the modern stack the other is a reference that upfront which data talked a lot about digital transformation digital us data course the third is purity related to trust we've talked a lot on the cube about how the perimeter is there is no particular anymore the Queen is left her castle and so what are the big trends that you see the big waves that that you're riding and how does that inform your product directly sure so a few different things I think number one if you think about the way I've phrase this is or the way I think about it is the following any big technological trend you see today right whether it's the move the cloud whether it's mobile whether it's artificial intelligence intelligence you think about the neural nets etc or it's a personalized consumer experience all of that fundamentally depends on identity so the most important the so from a from being an identity provider the most important thing for us is to be able to build something that is flexible enough that is broad enough that it is able to span multiple uses right so we've taken from a product perspective that means we can follow two philosophies we can either the try and go solve each of these pain points one by one or we can actually try to build a platform that is more open that's more extensible and that's more flexible so that we can solve many of these use cases right and not only can we solve it because there's it extensible our customers can customize it they can build on top of it our partners can build on top of it so that's one thing that's one product philosophy that we hold dear and so we have the Octagon cloud which is a platform which provides both workforce identity as well as customer identity using the same underlying components the same multi-factor authentication we use for workforce we package up as an SDK so that our customer identity customers that's number one the second thing is you rightfully mention is data you can't really secure identity without data so we have very we have a lot of data across our customers we know when the users logging in we know what device they're logging in front we know the security posture on the device we know where they're logging in from we know their different behaviors were apps they go into or during wartime of the day etc so being able to harness all this data to say hey and apply ml model squared to say hey is the user secure or not is a very very core foundation of our product so for example we have what we call risk-based authentication you can not only do things like hey this user seems to be logging on from a location they've never logged on from but you could even do things like well you may not want to stop the user they may be traveling so instead of just asking them for a for a password you ask them for a multi-factor right so that's the other piece of it and in many ways data and security and usability are three legs of a triangle the more data you have the more you can allow a user you more security you can provide a user without creating more friction so it's sometimes helpful for the audience to understand a company in a edit Avant act in the landscape so the obvious platform out there is Active Directory now Microsoft with Azure Active Directory you know really you know trying to and and that's really been on their platforms but with api's you know Microsoft has got a thumbs in every pie how does octave differentiate from some of the other traditional platforms that are out there and and what gives you confidence that it and you can continue to do so going forward post kovat that's it that's a fantastic question Dave um so I think we divide if you think about our competitors on the workforce side we've got Microsoft and a couple of other competitors and on the customer Identity side really it's a bill versus buy story right most companies customer identity internally so let's take workforce first Microsoft is the dominant player there they've got Active Directory they've now got Azure Active Directory and from a Microsoft perspective I think Microsoft is always been great at building products or building technology that interconnected run the world is going to more there's more and more technology proliferation in the world and the way we differentiate is by becoming a neutral and independent platform so whether you're on a Microsoft stack whether you're on a Google stack whether you're on an amazon stack we are able to connect with you deeply we connect just as well with all 365 as they connect with Salesforce as we connect with AWS right and that has been our core philosophy and not only is that a philosophy for other when other vendors it's a philosophy for ourselves as well we have multi-factor authentication so do many other providers like duo if you want to use ours great if you don't want to use ours with our platform who use the one that's best for your technology and I think what we've always believed in from a product perspective is this independence this neutrality this ability to plug-and-play any technology you want into a platform to be able to do what you want and the technology that's best for your business's need so what's interesting what you said about the sort of make versus buy that's particularly relevant for the customer identification management because let's say you know I'm buying from Amazon I've got Amazon they know who I am but if I understand it correctly customers now are able to look across brands maybe cohort selling maybe make specific offers analyze the data that's an advantage that you bring that maybe do it yourself doesn't Frank maybe talk about that a little bit sure so really if you think about if you think about a bill versus buying even ten years ago life used to be relatively simple maybe 15 years ago you had a website you as your username your the password you weren't really using you don't have multiple channels you didn't have multiple devices as prevalent you didn't have multiple apps in a lot of cases connected to each other right and in that in that day and age password was fairly secure you weren't doing a lot of personalization with the user data or had a lot of sensitive user data so building a custom identity solution having your customer managing your customers identity yourself was fairly easy now it's becoming more and more hard number one I just talked about the phishing attacks they're an equal number of attacks on the customer identity side right so how do you actually secure this identity how do you actually use things like multi-factor authentication how do you keep up with all the latest in multi-factor authentication touch ID face ID etcetera and that's one the second thing we provide is scale for a number of companies we also provide the ability to scale dramatically which scaling identity and being being able to authenticate someone and keep someone authenticated in real time is actually a very big channel challenge as you get to more and more scale and then the last thing that you mentioned is this ability we provide a single view of the user which is super super powerful because now if you think about one of our customers Albertsons they have multiple different apps there are multiple different digital experiences and he don't have a siloed view of their customer across all these experiences here one identity for your customer that customer uses that one identity to log on to all your digital experiences across all channels and we're able to bring that data back together so if Albertsons wants to say hey somebody shot a in or bought something in one particular app but I know people that buy this particular object like something else that's available in another app they can give a promotion for it or they can give a discomfort that's so that makes a lot of sense I went into the PR platform get our data partner and I looked at which industries are really showing moment so remember this survey focus was run right in the heart of the the Cova 19 pandemic from from mid-march the mid April so it's a good of good current data point and there were four that stood out large companies healthcare and pharma telco which is courses this work-from-home thing and then consumer the example that you just gave from Albertsons is really you know sort of around that consumer there are a lot of industries that obviously been hit airlines restaurants hospitality but but these four really stood out as growth areas despite the kovat 19 pandemic I want to ask you about octane you just got it had your big user conference anything product specific that came out of that that our audience should know about I mean I'm an interested in access gateway I know that wasn't necessarily a new announcement but Cloud Gateway what were the highlights of some of those things from a product stamp yeah of course so we did we did made a very difficult decision to pivot octane virtually and we did this because a number of our customers are given what they're facing with the Kovach pandemic wanted to hear more around news around what our product launches are how they could use this with cetera and really I'd say there are three key product launches that I want to highlight here we had a number of different announcements and it was a very successful conference but the three that are the most relevant here one is we've always talked about being a platform and we've set this for the past four or five years I think and but over the last your and going into the next couple of years we're investing very very heavily in making our platform even more powerful even more extensible even more customizable and so that it can go across the scenarios you described right which is whether you're on Prem with Auto access gateway or you're in the cloud or in some kind of hybrid environment or you using some mix-and-match or work from home people in the office etc so really what we did this year over the last year was deepen our platform footprint and we started releasing the four components available in a platform which we call platform services so we have six components and we were directories that is customizable and and flexible so you can build your own emails except for N equals four users adds information related to them we have an integration platform that we've made available at a deep level where where our customers can use SDKs tools etc to be able to integrate with octa in a platform which we've talked a lot about and then we released three new platform services and one was what we call arc identity engine we had released we talked about this last year and this year we talked about it last year from a customer identity perspective this year we brought her into our workforce identity but also what that does is it allows you a lot more flexibility for situations like we're in right it allows you flexibility to define security policies at the parabola it so you could decide hey for my email I don't want my customers to have to use a multi-factor authentication for but for Salesforce I would definitely want them to use a multi-factor authentication if they're not in the office and it also allows you to have a lot more flexible factor recovery so for example if you forgot your password one of the biggest pain points of co-ed has been the number of helpdesk costs have been rising through the roof the phone calls are ringing nonstop right and one of the biggest reasons for helpdesk are says oh I can't login I got locked out either lost a factor or L forgot my password it helps with that um so that's one set of announcements the second set of announcements was we launched a brand new devices platform and personally this is my personal favorite but really what the devices platform allows you to do is the feature in it that we launched is called Fast Pass and what phosphorous allows you to do is it actually takes phosphorous to the next level it allows you to basically use logging into your device and us understanding the posture of the device and all the user context around you to be able to log you directly dr. then I imagine if you're on a Mac or a iOS device or an Android or a Windows device just being able to face match into your iOS or being able to touch ID into your Windows hello and you're automatically logged into lockdown right that is that and and the way we do that is we have this client on across all these operating systems that can really understand the security posture of the device it can understand of the device is managed if it's safe if it's jailbroken if it's unmanaged it can also connect with multiple signals on the device so if you have an EDR and MDM vendor we can ingest those signals and what they think of the risk we can also ingest signals directly from apps if apps things like um G suite and Salesforce actually track user behavior to determine risk they can pass those signals to us and then we can make a decision on hey we should allow the user to authenticate directly into octa because they've authenticated their device which we can make a decision that says no let's provider let's ask them to step up with a multi-factor authentication or we can say no this is too risky let's deny access and all of this is configurable by the IT admin they can decide the risk levels they're comfortable with they can decide the different risk levels by different apps so that was another major announcement and then and as a product person you rarely ever get the chance to actually increase security and usability at one time which is why it's my favorite you increase both security and usability together now the last one was action was a workflows engine we call it workflows lifecycle management and we it's really we launched a graphical no cord user interface identity is so important so many business processes for our customers there's so many business processes built an identity for example if someone joins her company you usually either have a script that allows them access to the applications they need to or you actually have an IT admin sitting in there trying to manually provide access or when they leave right what workflow lifecycle management or lifecycle management workflows allows you to do is it actually allows you to provide it actually provides you the no core graphical user interface where you can build all these flows so now you don't need someone that knows coding you can even have a business unit so for example I for me in the product for the product org I can have someone say hey building a business process similar it's something you would build in sort of like an iPad and allow everyone that comes in to be able to have access to fig mom because we use pigma a lot right those are the kinds of things you can do and it's super powerful and it takes the ability of our already existing lifecycle management product to the next level well thank you for that that's that summary dear so I want to kind of close with I mean those of you have been following the cube for a while there I think there's some similarities between octa and and and service now that obviously obvious differences but we started following you know ServiceNow pre-ipo is less than a hundred million dollar company and we've seen that company build out as a platform company and that's really what octa is doing here we're talking about a total available market that's yeah probably north of 50 billion so the the question I have he is you know what Frederic and pod started 11 years ago playing on the dynamics coming out of the financial crisis that got us to where we are today now you've got the challenge of you've achieved reached escape velocity now you've got this you know massive growth opportunity in front of you how do you see the product portfolio evolving expanding and I'm also interested in postcode with 19 you know no whiteboards no face-to-face contact not at least not for a while and how you're kind of managing through that but but how can we expect the product portfolio to expand over time what can you share with us so one of the given how pervasive identity has become and given how not just broad but at the same time deep it is there are multiple different places or product portfolio >> and a number of different places were thinking about right so one is you mentioned today we play in workforce identity and customer identity but we haven't even begun to talk about how we might play in consumer right one of the one of the biggest perk matter is consumers and consumers protecting their own identity so often an employee is not using their identity to lock the seals ports and you have an attack on a company and offered an employee actually logging into their Gmail their personal Gmail or their personal or some personal website that bank and they get and their credential get compromised in their fluency impossible so the more protective the more directly consumers the more we indirectly protect both enterprises from work from an employer as well as a customer perspective howdy we're an enterprise company so it doesn't mean that we are going to go direct to consumer there are ways to make employees more secure by what the director calls were so that's one the second thing is managing identities I think we've as the number of applications as the number of technologies are proliferate managing and an employee's life cycle who that governing that the life cycle is not administering etc is also fully stock also becoming very very challenging it was all well and good we'll never can ask and you were on that that's not true anymore an average company uses I think close to 200 applications and then if you broaden back to other resources like infrastructure there's a lot lock more so how do you actually build automated systems that based on the employee status based on their rule based on the project they're on provides them the right access for the right amount of time the third thing you mentioned is and you should pass on this initially but this is the there's this concept of zero security right and the perimeters disappeared how do you provide security so if you look at the industry at large today there are tons of different security vendors trying to provide security at each point if you talk to any see-saw out there it's really really hard to cobble all of this together and one of the things we were trying to do is we're trying to figure out how with our partners we can build a silly end-to-end solution for n - n zero trust for our customers so that's that's another area that the of the product portfolio we're pushing and then finally with the whole digital transformation and customer identity yes more and more companies want their customers to go back online yes more and more customers convenience of being able to interact online with Billy if you think about it the world has changed dramatically over the last three years with privacy laws with things like gdpr CCP etc how do you actually manage your customers obviously you actually manage their content how do you ensure that while you're using all this data from across these apps that we talked about here you and you're using for the first benefit how do you make sure that the minister private is secure and and how do you ensure your customers that's another major area that I think our customers are asking us for helping and so those are areas or so that you should be a big signature the next two to three years some of it will be through partnership that's generally that high-level directions we're headed in wealthy you so much for coming on the key on the key and sharing the product roadmap and some other details about the great company really interested in watching its continued ascendancy good luck in the marketplace and thank you for watching everybody this is Dave Villante you conversations we'll see you next time [Music]

>> Live, from Orlando, Florida. It's theCube covering Microsoft Ignite, brought to you by Cohesity, and theCube's ecosystem partners. >> Welcome back everyone, to theCube's live coverage of Microsoft Ignite. I'm your host, Rebecca Knight, along with my cohost, Stu Miniman. We have two guests for this segment, we have Ross Smith, the Principle Program Manager at Microsoft, and Greg Taylor, who is the Director of Product Marketing at Microsoft. Thank you so much for joining us! >> Thanks for having us. >> So, I want to start off by talking about messaging. You are both legends in the Microsoft messaging world, sorry to be obsequious here. >> That just means we're old. >> You've been around a while, it's not your first rodeo. >> No, no. >> So, talk a little bit about what's new, what the enhancements you're doing for Enterprise, it is the most used app. >> Yeah. >> So we're launching Exchange Server 2019 this year. It's another version of on-premises exchange, it's incredible. We had 2000 people registered for the session, we had 1000 in the room. There's still some love for on-prem exchange, no doubt, so that's been a big thing we're talking about at Ignite this year. For those customers, and I'll be honest it's very much a release aimed at large Enterprise customers who want to keep some exchange on-prem. We strongly believe that small-medium business should be in the cloud, so we've focused on the kind of features that really large Enterprises really want to get from Exchange. >> Yeah, and then from a app perspective, we've been heavily invested with ALUP, Fry, WES and Android to bring a unique and valuable experience for both consumers and commercial users using both Office 365 and Exchange on-premises. So we now have a hundred million users using Outlook Mobile today, and it's been a great experience and we continue to evolve the app on a weekly basis, now. >> Can you talk a little bit about the evolution of the app and what kinds of features and enhancements you're using for both the consumers and Enterprise? >> Right, yeah. So the app originally began as a consumer acquisition, which we've now targeted and rebranded it as Outlook, and we've been heavily focused on bringing Enterprise features that our users know and love. Office 365 Groups is a great example of an experience that we built into the app that no other native mail client or third-party mail client can deliver today. We've delivered other Enterprise security-specific features like Azure Active Directory conditional access so customers can lock down what mobile apps can access the service and prevent any other client from doing so. And then, of course, there's in-tune app protection policies which allow us to, and customers to, ensure only the corporate data is protected and exclude the personal data, so that we can ensure there's no data leakage scenarios going. >> I wonder if we can step back for a second. I think about messaging, it's very diverse. I remember back in the '90s, I was helping companies get access to this whole "internet thing" and LANs and setting up and oh, we're going to go from faxes and memos to emails, show how old I am in this business, too. But today, our mobile devices, a lot of what we're doing companies, whether they have their own data-centers or doing their cloud, there's usually lots of different ways we communicate. My joke is, the best way to communicate with someone is probably the one they prefer to and hopefully aren't buried in. >> Yes. Because we all have the Slacks and all those other things out there. How do you view the word's game, how does the Exchange and Outlook and those fit into the overall portfolio and interact with everything else. >> From the Exchange side, email is dead. I've heard email is dead for I don't know how many years and well, email is still one of the primary communication methods we all use and rely upon. And so Exchange was one of the applications that kind of coined the mission-critical application moniker, right? 22 years ago, 20 years ago, Exchange was one of the mission-critical apps. But we actually kind of think of Exchange now as almost a service, a commodity, like the power. And most people, it's kind of interesting, we have the front and the back end of things, right? I'm thinking about the messaging infrastructure of the back, and Ross is now working on the client side. Most people see the client features and think of them as Outlook and client features, but a lot of them are Exchange features which are servicing the client. It's been a real kind of evolution. We've got to a point where nobody really cares about the back end, unless it's not there, then that's a problem, but most of the things servicing the client. >> And so what we see is that the transition from typical on-premises infrastructure to the cloud service usually, generally begins with email into the Office 365 stack, and that starts lighting up additional features. And then from a mobility perspective, we're seeing that that begins the on-ramp into mobile. Because, like Greg mentioned, we've had email capability on mobile devices integrated into Exchange for 17 years now, so it's a very ubiquitous thing to have on a mobile device, so it's just a natural progression just to use email on a mobile device. And then that begins lighting up as customers begin to move to Office 365, they start lighting up additional features like teams integration or Skype for business or any of the other Office apps. And then they just light up naturally. And then through all of our protection mechanisms we're able to ensure that that entire experience is secure from a IT business, and protecting it. >> Just speaking of the evolution of messaging in and of itself, what do you see, people who've been in the industry a long time, what do you see as next, I mean, where do we go from here? Email, they say, is dead, we know it's not dead, but what are the next kinds of generation of features and enhancements that you see customers really needing, and that you're working on at Microsoft? >> Alright, I think that Exchange was really interesting from an Office 365 perspective, as Exchange isn't really just a messaging engine anymore, it's a data store that we are, through things like Graph and all the other applications, is giving businesses a whole new way of looking at the data, and so we're pulling data from all the different places. Exchange is becoming almost a plumbing kind of infrastructure piece, but it's a key data source and I think the data is still there, the communication is still there, but I think much of the future development is in the client-side apps and how people interact with the data, and the back-end just becomes the infrastructure, right? >> Actually you bring up a great point. A premise that my Head of Research at Wikibon had is talking about Microsoft's position in AI today, and Office 365 and the messaging that you have, there's so much data there if you wanted it. What are people worrying about? How can a company understand that? How can Microsoft help businesses in general? There's a touchpoint that even an infrastructure as a service-provider wouldn't have, but you really get to the end-point and the end users in productivity, and that's a huge opportunity for Microsoft in the future as long as you're not messing with our data, you're not as heavy into, you know some of the other messaging people out there, that you're like, wait, why am I getting ads for that stuff, or, I think I talked about that stuff. >> And that's a great point, Stu, because going back to Outlook Mobile as an example, right? We're heavily invested in AI-driven capabilities into that app, zero-touch search, as an instance. You can go right in the app, tap one button and you see your favorite contacts, you get your Discover information from the Office Graph your next itinerary and travel information, and we're lighting up that functionality across the board throughout the app. Location-rich data, using Cortana time-to-leave services, so that you can get to a meeting at the right time, as opposed to a typical oh, it reminded me at 15 minutes and I got to hop 45 minutes down the other end of, where are we, West? In the West building, right? So we're building all that functionality into clients like Outlook Mobile and the rest of the stack to help drive that type of capabilities. >> And all of that data's in the back end, right? You said email is this repository of incredible business information, and so the question is how you leverage that, how do you take what's in there and surface it in a way that makes sense to the users? It's a fascinating time at the moment, where the data's there, we just got to know how to use it in the right way. And I agree, using it in the right way and not using it to sell stuff, that's absolutely our approach to it, so, super important. >> And do you work closely with clients to come up with this new kind of functionality? One of the biggest challenges that so many technology companies face is staying on the cutting edge of these ideas and innovation, so how closely are you working with customers to dream up new functionality? >> Yeah, we're working with customers all the time. We do it through a variety of different channels. We have UserVoice, which allows customers and end users to directly interface and provide their ideas. We have private preview programs, where we target customers about specific new feature sets. TAP programs, like we're doing with Exchange 2019, as well as future releases within Office 365 that enable that type of experience. >> Exchange, I think, historically, has always been very customer focused, very community focused. We have a great bunch of MVPs, the TAP program, the Technology Adoption Program, is a bunch of customers that deploy our pre-production code in production for us, so we've got some real big customers who, they're running versions of Exchange that the world hasn't seen. >> One of the themes we heard in Satya's keynote yesterday is business productivity, and we know one of the biggest challenges out there is, you get this new stuff, and you're like, well, I'm going to pretty much just try to use it the way I always have been doing it, and some of us have been using emails for decades and decades and I look at my own usage and wow, I'm probably a bit out of date. If I could just wipe my brain and say 'okay, here's this cool new tool' that could do all this stuff, we wouldn't even call it email, we'd call it something different. I know you guys do things like the Channel 9 broadcast, I'm sure there's lots of things on the website, how do you help customers learn to use the new stuff and get rid of some of the things, the old habits that they had in using these technologies. And can you get everybody to stop 'reply to all' in the big group, that would be super helpful. >> Work on that please. >> That's interesting, we're building it into the apps, to be honest. We're doing a lot of work whenever we release new features to light up an experience within the app that guide the user on how to use that new functionality to help them understand what they can do with the app, as well as simplifying the overall app structure. You look at some of our apps, they become very bloated in terms of all the widgets you have available and knobs to control it and we're trying to simplify that stack. We're refreshing with Outlook 2019 and Office Pro Plus. We're refreshing the user interface on desktop, we're doing the same in Mac. We've done it in Outlook for iOS, we're redoing OA, as well, and Office 365, all to enhance and simplify the experience, and, as well, provide a consistent experience across all the endpoints, which will help. >> If the question is here, how do we wean people off email, how do we get them off email. >> Just their old habits and patterns. >> And you know, it's kind of funny, but it still works. I remember having a conversation with somebody once who, it was a presentation we did once, and it was a team who did more of a social kind of thing, and their view was, they put a picture of the Queen of England up on a slide and said 'Email is old, like the Queen of England.' And my response was, well so are fire and the wheel, but they seem to be hanging around pretty well, so far. So I think there are certain things for which email is still king, but it's evolving and changing. I think we're still waiting for the real killer app that replaces email. >> It's not Yammer. >> It's not what? (laughter) >> It's not Yammer. >> I'm not going on camera saying that. The way I prefer to think of it is, I don't really matter what the client is or how you all interact with it, if we can all use an app that suits our own style of working, right? My inbox is zero inbox. I'm a zero inbox kind of guy, right? If I can work like that and interact with people who want to work on a different client, I'm happy. >> Not to go on the Yammer piece, but you made me think a little bit about acquisitions. Big acquisitions, like LinkedIn and Github, messaging ties into both of those quite a bit. Any visibility you can give? I know there's some integrations there, but how does that look? >> So we're launching LinkedIn integration with Outlook for iOS and Android as we speak. That's something we'll be rolling out shortly, and it enables, within the people or contact card, you can quickly see information from their LinkedIn data set, as well as the ability for us to push data from Office 365 into LinkedIn, so that LinkedIn users can also see relevant information about who that person's interacting with from a calendar type of perspective. So we're definitely taking that availability and providing that through our mutual customers. >> Great. Well, Ross and Greg, thank you so much for coming on the show, it was >> Thanks for having us. really a pleasure having you. >> Yeah, it was great. >> I'm Rebecca Knight for Stu Miniman, we will have more of theCube's live coverage from the Orange County Civic Center Microsoft Ignite in just a little bit. (electronic music)

joined by satya nadella no tell us what about about your your your thoughts on this event in general you know last year was about Big Data this year it's a little bit more focused a little bit broader focus on the modern enterprise as they say what's your take on kind of >> this event it's a great event on this is my first time here as well and having a chance to even see a couple of panels and just participate i think this notion of a modern enterprise is for real i think that it is re-imagination of what does infrastructure mean what do applications mean inside of the enterprise and we're going through this kak tonic shift which we participate in and so to have a forum like this to >> discuss that was just great so let's dig into that a little bit what you know what makes the what makes the moderate enterprise it's it's certainly a cloud and virtualization you've got the Big Data piece kind of the DevOps model of application development how do you kind of define what all bring to bringing together all these different elements >> what makes a modern enterprise yeah one of the things that I like to sort of make sure we focus on I work on the infrastructure business at Microsoft so >> if you're in the infrastructure business the key thing is to be in touch with the applications and it turns out in our own case today we are building a pretty diverse set of applications both consumer and enterprise so we're building vein which is an applied machine learning application real in building office 365 which is an enterprise focus collaboration communication application we're building dynamics and another enterprise crm ERP in the cloud application and what have you so that diversity of applications makes you rethink what is the infrastructure needed from storage compute as well as the network and so we are building a new operating system for the modern enterprise to be able to deploy these modern applications so that's kind of how I conceptualize I would say there are four major elements to it the first one is it's inside of the data center you have much more of a software driven by descent where you're orchestrating your compute storage and network in support of your applications either at the data center or multi data center scale because there's not a single atom rise that's not using some public cloud provider or another service provider in addition to what they already are virtualizing inside their own private cloud so that is all a software control plane and so we are really thinking about what is the modern operating system that enables you to manage the data center a second dimension would be the what is driven through consumerization of IT I like to describe it as transforming IT to be much more people century so you want end-users to adopt the devices they want and still have access to all their applications and data and yet aighty needs to be able to set compliance and policy so how do you really reimagine that is another dimension big data is something you reference there's not going to be a single application that's not a big data application and so those are the major major teams and the last thing I would say is this DevOps so not only have you built the application but it's even the life cycle around the applications being reimagined how developers and operations professionals come together in support of an ongoing improvement and continuous integration these four megatrends I think constitute a modern enterprise >> infrastructure interesting so let's dig into a little bit about what you mentioned about the use of kind of public cloud infrastructure as well as your internal data center so you've got these hybrid environments they're starting to emerge again pretty much software lead a software led infrastructure is what we're calling it a wiki bond how do you go about actually making it possible for for CIOs and their teams and to actually manage those environments in as efficient way as possible you know making decisions about which applications are deployed in the public cloud which it deployed in your data center how they interact potentially applications that are drawing on data from both spots it's obviously can get very complex so you know Microsoft is one of those public cloud providers with windows so how do you approach that product so >> if you sort of take what you just described which is if you you sort of start with the design point that there will be a public cloud there will be a private cloud and a service provider cloud then how you think about the software control is going to be defined by that design so it's not going to be narrowly defined as bring everything into my data center and I'll help you manage it but it is actually distributed so I think of this is the true fruition of distributed computing and we believe in that so then what are the things that matter first is identity so anything whenever things get distributed the most important thing that brings back things together is actually identity of users and identity for resources so active directory was a great resource for many enterprises in terms of how they came the complexity of the previous generation of client server now we have replumbed and reimagined active directory with Azure Active Directory so this consistency in directories helps IT administrators manage this complexity the next one is virtualization so not only would you be able to virtualize on your private cloud you should be able to move the same work cloud workload which is virtualized to any of these other clouds so you need a degree of guarantee that the performance characteristics of a virtualized workload get maintained across all so that's another thing that with our hyper-v investments and our add your investments we are in a making sure that happens the other one would be management so with if you can be sitting on the system center management console in the orchestrator and looking at a workload which could be in fact in 11 of these clouds or in fact the tears of a single app could be split which is the front end is on azure the back end is back in on premise and so that's also very very important to have a management tier which is the control plane that allows you to manage this complexity and lastly it's the consistency of the application platform Excel so if you're building and development you never want to be in the state where you build a great app but you can never check out so if you build it in the public cloud in the case of azure you should be able to take it and run it on a private cloud or on a service provider so these four things are on identity management virtualization and application platform I think is the core investment you've got to make to help enterprises truly adopt the cloud while you know it's >> complex but you gotta tame the complexity and then of course be what you're talking about it really is a lot of data being generated companies of course want to want to start taking an end of that data they want to analyze it they want to actually take those insights and turn them into either applications or perhaps convey them to executives and others in terms of visualization and of course one of those underlying platforms is to do talk about Microsoft's approach to Hadoop I know you're working with Hortonworks you actually kind of discontinued working on your own Big Data technology when you realize I think that you know who Duke was gonna is going to become the de facto standard so talk about how you're making it possible to bring the dip into this environment where more and more companies are looking to ring that it may be as a big data hub kind of store a lot of data and then feeds out to applications different workloads what is your approach to actually making that I guess enterprise ready yep and making it easy to get it get started and then term you know maybe science projects into really production whether the quantity I >> mean this notion of being able to take data and convert it into insights in support of enterprise goals is sort of the holy grail of this moment and so one of the things that we are actively doing is to bring a lot of the traditional value we've always had if you think about the momentum we have with our self-service bi capabilities on the edge of data which is Excel SharePoint sequel analysis services is where all data goes to in order to be able to drive in sites within and you know with it with end users because at the end of the day humans will be involved to be able to drive inside out of all of this data so now the question is how do we take that edge loop and connected with the information production which is upstream and that is where we are completing the story with having HD inside haven't even a relational interface on top of HT insight for in-memory ad-hoc query analysis like a data warehouse on top of it which i think the Hadoop community itself is adopting which is a sequel interface on Hadoop is probably one of the more talked about things nowadays and so this notion of having a complete data platform everything from MapReduce to stream processing to sequel like query interactively and then empowering end-users and workflows with data around their users which share for in Excel where we've invested in things like a power pivot and Power View which are actually powerful in-memory databases in fact I would say the most powerful in-memory database now is power view inside of Excel from where you can issue a sequel I mean basically a hive query to HD inside and populate millions of rows in a tabular column form that you're very familiar with we think that that democratization of big data is going to be very very important to acceptance of it as you said it from science projects or just being in the data science department to bring ubiquitous so we've only got time for >> one more question so just love to get your kind of future outlook what are some of the key priorities for you and your group over the next day 6 to 12 >> months I mean the key thing for us is really bootstrapping our cloud business we've got some fantastic traction with office 365 it's really doing very well in the q3 earnings we talked about how we have known a run rate basis a billion dollars in revenue going to office 365 and many customers who are to office 365 never bought an exchange server from so we're even it's not even zero something really in the short run it please and so we're very glad with that and there is a sure is just a natural complement to any customer who's already got office 365 sharepoint extensions the end user bi Active Directory administration all of these are sort of very natural extensions but agile itself now has got very very significant momentum yesterday we talked about how as urine as your services with all of our service provider partners has also got a billion dollars in revenue so that means when it comes to the core of the enterprise and their move to the cloud which is going to be complimenting a lot of what they're already doing in on premise is something that we're a pretty major player on and if anything we want to be solving the here and now practical problems with a forward-looking vision around identity around consistency of the management plane around virtualization compatibility around the application platforms and I think that that's what we're really up to in the immediate future all right yeah I think you really hit on something there with these gonna be high route deployments they're going to you know just much like in big data you know dupe isn't going to come in and replace your database your relational database and neither is the cloud whenever place your internal data center they've got to work together it sounds like you guys are working hard to kind of make that as seamless of the proposal as possible for your clients so I slept in Delaware Microsoft appreciate you coming on the cube thanks very much well hope you come back and join us about 39 thank you so much we'll be right back from the excel at Stanford symposium with our next guest writing for this

hi everybody welcome back to the Q we're here live at the Stanford accel partners summit I should say event here at Stanford University I am joined by Satya Nadella who is the president of server and tools baby Scholars Program with the Q I thanks so much for coming on appreciate it I think first time here on the cube we've had of course lots of folks on Microsoft on in the past and always a great to get your your take so tell us a little bit about your your your thoughts on this event in general you know last year was about big data this year it's a little bit more focused a little bit broader focus on the modern enterprise as they say what's your take on kind of this events it's a great event down this is my first time here as well and um having a chance to even see a couple of panels and just participate I think this notion of a modern enterprise is for real I think that it is a reimagining of what does infrastructure mean what do applications mean inside of the enterprise and we're going through this tectonic shift which we participate in and so to have a forum like this to discuss that was just great so let's dig into that a little bit what you know what makes the what makes the modern enterprise it's it's certainly a cloud and virtualization you've got the big data piece kind of the DevOps model of application development how do you kind of define what all bring to bringing together all these different elements what makes a modern enterprise yeah one of the things that I like to sort of make sure we focus on I work on the infrastructure business at Microsoft so you're in the infrastructure business the key thing is to be in touch with the applique and it turns out in our own case today we are building a pretty diverse set of applications both consumer and enterprise so they're building Bane which is an applied machine learning application we learn building office 365 which is an enterprise focused collaboration communication application we're building dynamics and another Enterprise CRM ERP in the cloud application and what have you so that diversity of applications makes you rethink what is the infrastructure needed from storage compute as well as the network and so we are building a new operating system for the modern enterprise to be able to deploy these modern applications so that's kind of how I conceptualize I would say there are four major elements to it the first one is it's inside of the data center you have much more of a software driven data set where you're orchestrating your compute storage and network in support of your applications either at the data center or multi data center scale because there's not a single enterprise that's not using some public cloud provider or another service provider in addition to what they already are virtualizing inside their own private cloud so that is all a software control plane and so we are really thinking about what is the modern operating system that enables you to manage the data center a second dimension would be the what is driven through consumerization of IT I like to describe it as transforming IT to be much more people central so you want end-users to adopt the devices they want and still have access to all their applications and data and yet IT needs to be able to set compliance and policy so how do you really arean that is in another dimension big data is something you referenced there's not going to be a single application that's not a big data application and so those are the major Keane's and the last thing I would say is this DevOps so not only have you built the application but it's even the lifecycle around the application is being reimagined how developers and operations professionals come together in support of an ongoing improvement and continuous integration these four mega trends I think constitute a modern enterprise infrastructure matrix so let's dig into a little bit about what you mentioned about the use of kind of public cloud infrastructure as well as your internal data center so you've got these hybrid environments that are starting to emerge again pretty much software lead a software led infrastructure is what we're calling it a wiki bond how do you go about actually making it possible for for CIOs and their teams and to actually manage those environments in an efficient way as possible you know making decisions about which applications are deployed in the public cloud which are deployed in your data center how they interact potentially applications that are drawing on data from both spots it's obviously can get very complex so you know Microsoft is one of those public cloud providers with Windows Azure so how do you approach that problem so if you sort of take what you just described which is if you you sort of start with the design point that there will be a public cloud there will be a private cloud and a service provider cloud then how you think about the software control is going to be defined by that design so it's not going to be narrowly defined as bring everything into my data center and I'll help you manage it but it is actually distributed so if I think of this is the true fruition of distributed computing and we believe in that so then what are the things that matter first is identity so anything whenever things get distributed the most important thing that brings back things together is actually identity of users and identity for resources so Active Directory was a great resource for many enterprises in terms of how they came the complexity of the previous generation of client server now we've replumbed and we my Active Directory with Azure Active Directory so this consistency in directories helps IT administrators manage this complexity the next one is virtualization so not only will you be able to virtualize on your private cloud you should be able to move the same work cloud workload which is virtualized to any of these other clouds so you need a degree of guarantee that the performance characteristics of a virtualized workload get maintained across all so that's another thing that with our hyper-v investments and our agile investments we are making sure that happens the other one would be management so with if you can be sitting on the system center management console and the orchestrator and looking at a workload which could be in fact in one one of these clouds or in fact the tears of a single application could be split which is the front end is on Azure the back end is back in on-premise and so that's also very very important to have a management tier which is the control plane that allows you to manage this complexity and lastly it's the consistency of the application platform itself so if you're building a development you never want to be in the state where you build a great app but you can never check out so you if you build it in the public cloud in the case of azure you should be able to take it and run it on a private cloud or on a service provider cloud so these four things are on identity management virtualization and application platform I think is the core investment you've got to make to help enterprises truly adopt the cloud while you know it's complex but you gotta tame the complexity and then of course what you're talking about it really is a lot of data being generated companies of course want to want to start taking advantage of that data they want to analyze it they want to actually take those insights and turn them into either applications or perhaps convey them to executives and others in terms of visualization and of course one of those underlying platforms is to do talk about Microsoft's approach to Hadoop I know you're working with Hortonworks you actually kind of discontinued working on your own big data technology when you as I think that you know Hadoop was given is going to become the de facto standard so talk about how you're making it possible to bring the dupe into this environment where more and more companies are looking to bring that in maybe as a big data hub kind of store a lot of data and then feeds out to applications different workloads what is your approach actually making that I guess Enterprise ready yeah and making it easy to get and get started and then turn you know maybe science projects into really production whether the point is right I mean this notion of being able to take data and convert it into insights in support of enterprise goals is sort of the holy grail of this moment and so one of the things that we are actively doing is to bring a lot of the traditional value we've always had if you think about the momentum we have with our self-service bi capabilities on the edge of data which is Excel sharepoint sequel analysis services is where all data goes to in order to be able to drive insights within and you know with it with end users because at the end of the day humans will be involved to be able to drive inside out of all of this data so now the question is how do we take that edge loop and connected with the information production which is upstream and that is where we are completing the story with having HD inside having even a relational interface on top of HD insight for in-memory ad hoc query analysis like a data warehouse on top of it which I think the Hadoop community itself is adopting which is a sequel interface on Hadoop is probably one of the more talked about things nowadays and so this notion of having a complete data platform everything from MapReduce to stream processing to sequel like query interactively and then empowering end-users and workflows with data around end users which share or in Excel where we've invested in things like a power pivot and Power View which are actually powerful in-memory databases in fact I would say the most powerful in-memory database now is Power View inside of Excel from where you can issue a sequel I mean basically a hive query to HD inside and populate millions of in a tabular column form that you're very familiar with we think that that democratization of big data is going to be very very important to acceptance of it as you said it from science projects or just being in the data science department to bring ubiquitous so we've only got time for one more question so just love to get your kind of future outlook what are some of the key priorities for you and your group over the next say six to twelve months I mean the key thing for us is really bootstrapping our cloud business we've got some fantastic traction with office 365 it's really doing very well in the q3 earnings we talked about how we have a moving on a run rate basis of billion dollars a revenue going to office 365 and many customers who are coming to office 365 never bought an exchange server from so we're even it's not even 0 some really in the short run at least and so we're very glad with that and there is a j''r is just a natural complement to any customer who's already got office 365 SharePoint extensions the end user bi Active Directory administration all of these are sort of very natural extensions but Azure itself now has got very very significant momentum yesterday we talked about how Azure and Azure services with all of our service provider partners has also got a billion dollars of revenue so that means when it comes to the core of the enterprise and their move to the cloud which is going to be complementing a lot of what they're already doing in on-premise is something that we're a pretty major player on and if anything we want to be solving the here and now practical problems with a forward-looking vision around identity around consistency of the management plane around virtualization compatibility around the application platforms and I think that that's what we are up to in the immediate future alright yeah I think you really hit on something there with these gonna be hybrid deployments they're going to you know just much like in big data you know doop isn't going to come in and replace your database your relational database and neither is the cloud going to replace your internal data center they've got to work together it sounds like you guys are working hard to kind of make that as seamless of the proposal as possible for your clients so Satya Nadella for Microsoft we appreciate you coming on the queue thanks very much well hope you come back and join us about three thank you so much we'll be right back from the Excel Stanford symposium with our next guests ready for this