(upbeat instrumental music) >> From Las Vegas it's the CUBE. Covering Open Systems, the future is crystal clear with security and SD-WAN. Brought to you by Open Systems. >> Hello everyone and welcome back to the CUBE. We are here in Las Vegas in the Cosmo hotel in the Chandelier bar. Part of Open Systems get together, kind of session of smart people gathered. All part of big week here in Vegas. Garden is having a big event, a lot of things happening. We have Martin Bosshardt who is the CEO of Open Systems who's hosting the event. Thanks for coming on the CUBE. >> Thank you. >> Thanks for joining me. Okay so, I got to get this out there. You guys are in Switzerland headquarters. You've just established big presence in Silicon Valley. >> Right. >> And you've expanding rapidly in Silicon Valley, congratulations. >> Thank you. >> Explain what you guys do, how you started, where you come from and what's the story of Open Systems? >> Well, originally we started as managed security service provider and I managed security infrastructure. We learned, especially if you are doing financial services, security infrastructure, if you try to update you need to go into those data centers. And that is harder to get in there, it's like entering North Korea. So we learned to operate that stuff remotely and that really brought us in more than 180 countries, especially with industry companies. Industry they manufacturing, they started to globalize their value chains, and that really helped us to globalize our foot print. And obviously to do that we used SD-WAN. So we definitely came from the security space, but today we are the largest SD-WAN, standardize SD-WAN platform we a fully integrated security staff. >> So how big is the company roughly people-wise? What's a... >> We are 200 plus people currently, and a 50 plus million revenue this year. >> How big, sounds like the customers are really large complex data centers with a lot of offices and facilities. Is that your makeup of your customer base right now? >> Our customer base really is, I think, I mean obviously financial services that's always if you start in Switzerland a company, the financial services is very important. But then also, industry, manufacturing is especially companies with globalized value chains are very interested in our services. Because you have serious complexity from regulatory point of view, but also from operational point of view to operate SD-WAN in a secured way. So this is really our sweet spot. >> So explain the difference between SD-WAN old way and the new way, because SD-WAN was simply connecting branch offices together, basic networking stuff. Mean its like connectivity. So today is much more complex. What's the difference between the SD-WAN environment thing, because there is a resurgence with SD-WAN. With cloud computing, with the internet, obviously with secure issues, it's a whole different ball game. Explain the difference between the old way and the new way. >> Well the old way was it just connected occasions and then you piped traffic through a VPN, right. And I think we learned a lot about what SD-WAN is really capable to do when we start to work for the NGO Space, when you use a lot of satellite traffic. It's very expensive to pipe everything through the satellites, so you need to slice the traffic into important stuff, less important stuff and then you decide what are you going to route through the satellite and what you going to route terrestric. And this is really where the whole magic of SD-WAN comes from. You certainly have to, the freedom to route traffic application based in a very different way. So, you're not bound to protocols anymore, so you really can route your Office 365 traffic different than your Facebook traffic. You can route, you can priortize. >> So you can differentiate between the traffic types first. That was a first, discovery. >> That was important for us, because we managed infrastructure and obviously you don't want to create congestion by managing infrastructure. So, it is really about, what traffic is important? What traffic is time critical? >> Yeah. >> And route, depending on the application needs, traffic differently. >> Yes, cost is always a big motivator. But for innovation. >> Cost performance. It's always cost performance, right? >> So, I get that's awesome and by the way that's how startups figure out innovations that don't have a lot of capital. They figure it out by being effective and making things work. When did the security piece click in for you guys? When you guys saw SD-WAN, when was the moment you said, "Okay we are going to do all these things to save costs and do this kind of routings and these kinds of policy based". I'm over simplifying, but you know what I'm saying. When did security become important? Was it from the beginning? Was it a discovery? Was it something that was a, you just caught the wave? Explain how you guys became so prolific in your product with security. >> We definitely, we came sort of from the security space and the SD-WAN was something we used to operate security infrastructure. So it's maybe, we looked at it a little bit different, but at the end of the day, SD-WAN creates so much opportunities for companies. And I believe the whole cloud movement is creating so many opportunities for companies to move fast, to create growth. Also, if you think IoT, it creates whole different business models for almost all enterprise organizations. >> Talk about the business model, that's important, because go ahead finish your thoughts. >> And now the question is, How can you embrace all that growth and managing the risks? And that's what's happening right now. We help customers to combine the security. >> So one of the things we were here last week for Amazon re:Invent big event for Amazon web services and they announce a non-premise product. No one thought they were ever going to do that. So I asked the CEO there why they were doing that, essentially he said, "latency kills". Certain latency is now the new problem. You learned that from the satellite situation where cost and latency are really important factors in determining how you architect things. But then you realize that the business models are shifting. So, I ask you, as you have need for security and low latency, people are looking for direct connections. They don't want to route traffic through internet. Who knows where it's going to go though, China? It's all these hidden problems. >> Yeah, and you know I agree basically. Latency kills, but I also disagree, because there are applications where latency is not an issue, like email. I mean you couldn't care less about latency in email. >> In fact don't deliver it. (laughs) >> But at the same time it's really important that a network understands not only how it routes, it also understands what it routes. And that is the power of SD-WAN, so you really can route different applications in different routes. >> Right time, right place kind of thing. >> Exactly and then it depends where it's consumed, where it's delivered and where do you route those >> Talk about your business model now, you got a U.S. Why the U.S. expansion? Is it right for growth? Is it a natural progression? What's the strategy, Why U.S. expansion? >> Actually, what we see the U.S. is moving very fast to the cloud right now and this is an opportunity for us to really support that, I would call it transformation. It's really an industry transformation is happening right now and we just in Europe maybe to bring down the cost of connectivity. That's still more of a business driver, and obviously, that's always exciting to bring down costs. But if you move to cloud, you really have to rethink your network structure and also you have to rethink your security posture. So this is just a way of opportunity. >> Martin, I got to ask you honestly, I've been kind of checking around Silicon Valley and you guys have a good vibe and good buzz. Certainly great reputation in Switzerland, great product, great work, but you are attracting kind of new talent from the Bay area, Cisco in particular. A lot of these high-powered people. Networking guys, developers. Who are you guys looking to attract into your office as you expand, I know you got a lot of openings. It's not a recruiting plug, but I mean as you look to put the team together, What are you guys looking for? What's the kind of individual? What's the culture of your company? What's the kind of things people can expect if they work there? >> I mean we are focused on, we just want to create the most amazing networks in a secured way. And I believe this is very attractive, what we've created the last couple of years. And that is also attractive for talent in Silicon Valley. But obviously, it's a competitive market. But it's all over the world, it's competitive market. And I believe, especially going to the market and understanding what the world needs. That's very powerful in Silicon Valley. The eco-system is very powerful, so for us is clear. We want to be there, we want to play a role. >> That's awesome, we look forward to doing more content. Final question for you, If you could have to nail down the core problem that you guys are trying to solve. As the world evolves, the landscape continues, the world gone global. You're seeing all kinds of needs, all kinds of intelligence. What have the top problems that your team is working on, to continue to iterate and solve, What are the big things you are trying to nail down? >> We want to make it for a customer very easy to consume a secure SD-WAN. And that sounds maybe simple, but it's not. To operate an SD-WAN in a secure way is really challenge. So most companies operate like 40, 50 different products to achieve that. >> Yeah. >> And we us it's like subscribing a service. >> Quick plug last minute, What's your product? 'Cause you have a deal with multiple vendors. Is this a SAS product, on-premise, cloud? >> It's a SAS, on prem available and it's availa6ble in all major cloud (mumbles), like Azuren and Amazon. So it's in all clouds premises working. >> You're literally Switzerland, for the cloud. (laughs) >> Yeah. >> They use that expression in the United States a lot. >> Yeah. >> We're Switzerland, we're neutral. >> Yeah, we're Switzerland, we're neutral. We're actually very neutral and also... >> But seriously, you can work with, if I'm the customer >> Right. >> I have multiple clouds, I have multiple vendors. I have a ton of security products. Can I use you guys? >> Right, yeah it's simple. I mean we are already a platform so we use many security products and orchestrate so they work together. >> What are the common things you get from customers that have been successful with you. And I don't want to say single (mumbles) lessons that is an old IT expression, but the world has to be smarter, faster, dashboard oriented, AP harden, APIs, a lot of data traversal. What's the ideal end state for your customers, when you guys are successful? >> You have to repeat that question. >> From a customer, what's the value purchase to me? Am I saving time? Am I integrating multiple devices? >> You save a lot of time, you save a lot of money. And I believe the most important thing is, we see ourself as weapon in a war for talent. It's just impossible for our customers to find the talents to really operate that stuff in a good way. And we make that much easier. So obviously, you cannot outsource security, but you can make security easy, manageable and that's where we... >> And operational, make it work. >> And operational, make it work, and that's I believe the key already. >> Well Martin, congratulations on the expansion strategy. Real quick, What's going on in Vegas for you guys here? What are you guys here talking about? What's the big story here for you guys? >> Well basically, obviously, we grow very fast so we also use this to bring together people. But then also, everybody is here right now. It's great to see winners, it's great to see partners. It's great to see competitors, so it's just important to understand the market. It's also, there are worst place in the world to be. >> Yeah. >> In Las Vegas. >> Build those relationships, thanks so much for coming on the CUBE, really appreciate it. >> Thank you so much. >> I'm here with the CEO of Open Systems from John Furrier the CUBE, we are here at the Chandelier bar at the Cosmo. We are just getting started, we got a couple bunch more interviews still to come. We just had the FBI on, really importa6nt conversations around security, cybersecurity, enterprise security, and how to make SD-WAN work. We'll be right back with more. Stay with us after this short break. (techno music)