>>mm We're entering the fourth grade era of VM ware Executive management From its beginnings in the late 90s is a Silicon Valley startup. It's five founders quickly built the company and it ended up as one of the greatest acquisitions in the history of enterprise tech when EMC bought VM ware for $625 million as a public company. But still under EMC's governance, paul Maritz was appointed Ceo in 2000 and eight and set the company on a journey to build what he called at the time. The software mainframe meaning the company's platform would run any application at high performance with low overhead and world class recovery. Pat Gelsinger took over the Ceo reins in 2012 and through organic investments and clever m and a set of course for the software defined data center and after some early miscalculations in cloud, realigned the company strategy to successfully partner with hyper scale hours and position the company for the multi cloud future. The hallmarks of VM where over the course of its history have been great engineering that led to great products, loyal customers and a powerful ecosystem. The other telling attribute of VM where is it? CEOs have always had a deep understanding of technology and its latest Ceo is no different. It's our pleasure to welcome raghu Raghuram back to the cube the fourth Ceo of VM ware and yet another Silicon Valley Ceo graduated from the IIttie rgu, great to see you again and congratulations on your new role. >>Thanks. It's great to be here. >>Okay, five months in 1st 100 days what we have focused on that journey to become the Switzerland of multi cloud, tell us about your early experience as ceo >>it's been fantastic. Uh our customers, all our employees, all our partners have been very welcoming and of course I've given me great input. What we've been able to do in the last 100 days is to really crystallize the strategy and focus it around what I'm sure we're gonna be spending a lot of time talking about. And that's about the multi cloud era of computing that most enterprises are going to go through over the next decade. And so that's really what I've been up to and you'll see the results of that in next week's uh we involved and uh where we would be talking about the strategy and some product announcements that go along with the strategy and so it's a very exciting time to be at Vandenberg. >>Yeah, I mean, I referenced it in my intro, it's almost like the light bulb went off when VM ware realized, wow, this cloud build out is just an opportunity for us and that's really what you're doing with the multi cloud as you're building on top of all the infrastructure that the hyper cloud vendors are putting out there. Maybe you can talk about that, that opportunity and what customers are telling you. >>Yeah, it's uh here is how I describe what has happened in the industry. Right, and what will happen in the industry. So, if you look at the the past decade, as cloud became a mainstream thing, most customers pick the cloud, they built their first digital applications into it, the ones that serve their mobile users or end users with digital products and that worked great for them. Then they step back and say, okay, how many modernize everything that we're doing has become a digital company. And when you go from 10, of your portfolio, 100% of your application portfolio being modernized. What has to happen is you got to go from figuring out, okay, how am I gonna put everything in one cloud to what does the application need and how do I put it on the right place? I look at the same time, the industry has also evolved from being uh predominantly supplied by one cloud provider to multiple cloud providers. At the same time, the thanks to companies like IBM where the data center has been transformed into a private cloud. The edges growing up to be its own location for a cloud sovereign clouds are going. So truly what has happened is it's become a multi cloud world. And customers are saying in addition to just being cloud first, I want to be cloud smart. And so this distributed era of computing that we are entering is what we are seeing in the industry. And what the empire is trying to do is to say, look, let's provide customers with the fastest way of getting to this multi cloud era of computing so that they can go fast, they can spend less and most importantly, they can be free, in other words, choose the right application, right cloud for right applications and have control over how they deploy and use their applications and data. That really is a strategy that we are putting in place. This is something that we've been working towards in the last couple of years now. I'm accelerating that and making that the main piece of what we end, where is doing in order to do that, we have a great opportunity to take partner even better with all of our cloud provider partners and that's where the Switzerland of the industry comes in without impending spin, especially, we have great partnership with the cloud players, great partnerships with infrastructure players. We truly can be a neutral partner to the customers as they look at all these choices and make the right choices for their applications. >>So, I want to ask you about this multi cloud when when the early multi cloud narrative came out where I go, I was saying, look, multi cloud is really multi vendor, you you've got workloads and apps running on different, different clouds. And then increasingly, the promise and your promises, we're going to abstract the underlying complexity of those clouds and we're going to give you an experience whether it's on premise, hybrid into a cloud. Across clouds. Eventually out to the edge, it's gonna be a singular, substantially identical, if not identical experience and we're going to manage the whole kit and caboodle. And how where are we in that first of all? Is that the right way to think about it? Where are we in that sort of transition from plugging into any, you know, a cloud? I'm compatible with the cloud to it's a singular sort of VM ware cloud if you will. >>Yeah. So, um, so I wanna clarify something that he said because this tends to be very commonly confused by customers use the word abstraction. And usually when people think of abstraction, they think it hides capabilities of the uh, cloud providers. That's not what we are trying to. In fact, that's the last thing we're trying to do. What we're trying to do is to provide a consistent developer experience regardless of where you want to build your application so that you can use the cloud provider services if that's what you want to use. But the deficit cops toolchain, the runtime environment, which turns out to be Cuban aires and how you control the kubernetes environment. How do you manage and secure and connect all of these things. Those are the places where we are adding the value. Right. And so really the VM ware value proposition is you can build on the cloud of your choice but providing these consistent elements. Number one, you can make better use of us, your scarce developer or operator resources and expertise. Right. And number two, you can move faster and number three can spend less as a result of this. So that's really what we're trying to do, but not. So I just wanted to clarify the word abstraction in terms of their way, we're still, I would say in the early stages, so if you look at what customers are trying to do, they're trying to build these Greenfield applications and there is an entire ecosystem emerging around Campaneris. There is still kubernetes is not a developer platform. The developer experience on top of kubernetes is highly inconsistent. And so those are some of the areas where we are introducing new innovations with our towns, our application platform. And then if you take enterprise applications, what does it take to have enterprise applications running all the time, be entirely secure, etcetera, etcetera. That's where the we ever cloud assets that are traditionally this fear based come into play and we've got this now in all of the clouds but it's still in the early days from uh on Azure and google et cetera. How do you manage and secure those things again? We're in the early days. So that's where we are. I would say, >>yeah, thank you for that clarification, I want to sort of come back to that and just make sure we understand it. So for example, if I'm a developer and I want to take advantage of, let's say graviton uh and build an app on that, that so maybe it's some kind of data intensive app or whatever it is. I can do that. You won't restrict me from doing that at the same time. If I want to use the VM where management experience across all my clouds, I can do that as well. Is that the right way to think about it? >>Yeah, exactly. So the management experience by the way, and this is the other thing that gets missed in the remember dialogue because we've been so phenomenally successful with this fear. There's a misperception that everything we are doing atmosphere today works only on top. So everything we're doing at BM wear works only on top of the sphere. That's not the case. Take management, for example, our management portfolio is modular and independent of these, which means it can manage the Graviton application that you're building, right. It can manage a traditional, these fear based application, it can manage rage application, it can manage VM based applications, can manage computer based applications. Uh so it's truly uh, overall management layer. So that is really what we're trying to do. Same thing with our kubernetes example. Right, So our communities control plane allows you to control these kubernetes clusters. Whether the clusters are utilizing gravity and whether clusters are utilizing these fear based crew binaries environments. >>Okay, that's great. So it's kind of a set up question because my next question relates to project Monterey, Because, you know, I've always said when I write about about these things, when I saw Nitro, I saw Graviton, I saw project monitor, I said uh everybody needs a Nitro Nitro or a graviton because new workloads are coming. It's not just the X 86 can handle everything anymore asap whether it's sequel server, whatever we've got new workloads that are coming ai ml data intensive edge workloads, et cetera. Is that how we should think of? Project Monterrey. Where are you in Project Monterey? Why is it so important? Help people understand that? >>Yeah. Project mantra is super exciting for a couple of different reasons. One is uh in its first iteration and uh we announced project monitoring and last being well, we continue to build and we're making great progress along with the hardware partners that we are working with um in its first hydration it allows um um some of the functions that you would expect in the software defined data center to be offloaded into these montri processors. The smart nick processes. Right. So what that does, is it clears up the core CPU for other application functions. Right, so you get better scalability, more resource utilization, etcetera, etcetera. The second thing it does is because some of the software defined data center functions are done in the smart make um it gets accelerated as well. Because it takes advantage of the special accelerators that are there security functions, manageability functions, networking functions etcetera, etcetera. So that's that what you're alluding to is overall it's the v sphere, the sX Hyper Visor complimentary itself. That's moving into the specialized processors which allows the hyper Visor will be built into these smart mix, which means the main CPU can be an intel. CPU can be an M D C P. You can be an arm. CPU can be whatever it is you want in the future. So truly enables Monte CPU heterogeneous computing. So that's that's why this is exciting. And of course because it is the sphere, it can happen in the data centers, it can happen in Carlos. It can happen in Sovereign clouds. It can happen in the public clouds all over a period of time. And >>and potentially the Edge I would presume in the future. >>Sorry. Yeah, that's a great point. Thanks for pointing that out. In fact, the Edge is one of the most important places that will happen because we need these low latency applications such as in the telco case for example, right. Or we need these applications that have specialized processing the required. If you're setting up a cashier less store and you need to process and you need a lot of influence engines. So, Monterey helps with all of those things. >>I want to make sure our audience understands. It's because the software defined data center was awesome but but it also created waste in the sense that you have all these offload functions in storage and networking and security running on on x 86 processors which may not be the most efficient way. So emerging architectures around arm might be less expensive, maybe more cost effective, lower power. Uh maybe they do memory management differently. So there are these offload use cases. But as well you we talked about the edge there could be a lot of edge use cases that or whatever whether it's arm or in video etcetera. So now you're driving that optionality for customers so you can support more workloads of the future. >>Yeah, so this is exactly if you think about in europe when you talked about the embers evolution, the inverse core DNA has always been to master hydrogen. Itty right. And what we're seeing is this world of heterogeneous hardware coming alive. Right. You talked about Professor hydrogen Itty including GPU chips and so on. There is a memory architecture heterogeneous, their storage architecture heterogeneous. And so the idea is that regardless of what you use, how do you provide the best workload platform and a consistent way of managing all of these things and reducing the complexity while gaining the efficiency benefits and the other benefits that you talked about. >>So speaking of geniality that brings me to Tansu, you know early on people thought, oh wow containers, that's gonna kill VM where this is the opposite happened. You guys leaned in as as you have as a sign of great leadership these days. You don't get defensive, you just, you know, get the trend is your friend, as they say, give us the update on on Tan xue. Why is that so important to the future? >>Yeah. So if you look at any enterprises portfolio right, they are looking at it and saying look, there's a whole set of applications that I need to modernize. Now. The question becomes how do you modernize these applications in a way that it is essentially done with these microservices architectures and so on and so forth. In that context, how do I maximize the developer productivity and provide a great developer experience because there is not enough developers in the world to modernize every application that that's in every enterprise. Right. So, Tan xue is our answer to help enterprises modernize their applications and deliver in a way that the developed makes the developers very productive on the cloud of their choice. So that is really the strategic intent of Tancill and the core building block for Tan xue is of course kubernetes as you well know, Kubernetes has become the common infrastructure abstraction across clouds. So if you want portability for traditional VM based applications, he used this fear, if you want portability for traditional for containerized microservices applications, you assume kubernetes, that's how companies companies are thinking about it. And so that's the first thing that we did now. The second is you've got developers building applications all over the place. So now, just like you used to have physical server sprawl and now and then VM sprawl these days you have cluster sprawl, kubernetes, cluster sprawl and tons of mission control affects as a multi cloud, multi cluster kubernetes control plan works on the chaos and everything else that some of the Sun. The third point of Tanzania is the developer experience and we have introduced Andrew application platform, which is really focused on delivering a great developer experience on top of any Cuban Aires. So that's really how we're building out the towns of portfolio. And then of course we got Spring and uh as you well know a majority of enterprise applications today are java and if you want to modernize java, you use spring boot and so we had tremendous success with our uh spring boot technology and our startup, Springdale Ohio capabilities and so on and so forth. So that's the entirety of the towns of portfolio. It's multi cloud, it's kubernetes agnostic. Of course it runs great on this fear but it's really the approach making developers productive in the enterprise >>awesome. Thank you for that. I know we're tight on time but it's like speed dating with you raghu. So I'm gonna go on to another topic. Really important topic of security, you've made obviously some big acquisitions, there are things like carbon black, you've got a lot of stuff going on with, with, with endpoint, with end user computing, I'm first interested in sort of how you organize it looks like you're putting security and the networking piece together and then what's your swim lane? It seems like you're, you're focused obviously on your infrastructure. You're not trying to be all things to all people. Help us understand your strategy in that regard. >>Yeah, I mean security is a massive space, Right? And you covered very well. Hundreds and thousands of security problems that customers want to be solving. What we are focused on is how do we simplify the security problem for the customers? And we're doing it through three wells. The first one is we are baking security into the platforms that customers used ones. Right. But there are more obvious fear our workspace one, our container platform etcetera, etcetera. Right? Cloud platforms. So that's the first thing that we're doing. The second is we are putting um, bringing together, we're taking an end to end view of security, which is everything from an end user connecting from home to the corporate network or the sassy, sassy applications to the Windows devices they are using to the data center applications they're using to the club. Right? So we're taking a holistic view of security. So which means we want to combine our network security assets with our endpoint security assets with our workload security assets. That is why we bought all of those things together under one roof. And the third is we are instrumental in all of these and collecting signals from all of these and pulling it into the cloud and turning security into a machine learning and the data problem, right? And that is where the problem. Black cloud comes in and by doing that, we are able to provide a holistic view of where uh customer security posture, right? And these sensors can be on BMR platforms, on non BMR platforms etcetera. And so so that's really how we are approaching it. I mean there's the emerging industry term for a policy XDR. You might follow that. So that's really what we're trying to do. >>Outstanding. Last question and I know, I know we got to go. You mentioned the spin that's happening in november. That's an exciting time for a lot of reasons. I think the ecosystem, you know, emphasizing your independence but also gives you control of your balance sheet, regaining control of your balance sheet, tongue in cheek there. But it's important because all this, this cloud build out this multi cloud, exposing the primitives, leveraging the primitives and the A. P. I. S. Of these clouds making them identical across all these estates. That's not trivial and you're obviously gonna need resources to do that. So maybe you can talk about that and how you see the future playing out organic inorganic, maybe a little lemon A in there. What's your approach? How are you thinking about that? >>Yeah. So we are very excited with the impending spain, which like you said is on track to happen early november. Um and if you think about the spin, there are three aspects that we are excited about. The first aspect is uh we have a great relationship with Dell Tech, the company right. What we have done is we have codified that into a framework agreement that covers the gold market and technology collaboration and we are super excited by that and that baselines against what we do today and then as incentives on both sides to continue to grow that tremendously. So we're gonna continue being, doing that and that's going to continue being a great partner at the same time. From a partnership point of view, is truly going to be a Switzerland of the industry. So previously companies that were otherwise a little bit more competitive with dull now no longer have that reservation in partnering very deeply with us. I'm totally, like you said from a capital structure point of view, it gives us the flexibility to use to do em in a should we decide to do so in the future right? And use both equity and cash for them in a so so that's the capital structure, flexibility, the Switzerland positioning and the continuing great relationship with dull Those are the benefits of the spin >>love and the partner ecosystem has always been a source of, of innovation and it's a big part of the flywheel, the power of many versus the resources of one Ragu, Thanks so much for coming back in the queue. Best of luck. We're really excited for you and for the future of VM ware. >>Thank you and thanks for all the great work that you do and look forward to continuing to read your great research, >>appreciate that. And thank you for >>watching the cubes, continuous >>Coverage of VM World 2021. Keep it right there. >>Thank you. Mhm. Yeah.

>>long from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in along with its ecosystem partners. >>Welcome back here to AWS reinvent 2019. Great show going on here in Las Vegas, where the Sands were live here on the Cube. Once again, covering it from wall to wall will be here until late tomorrow afternoon. David John Walls were doing by Joined by David. She coaches who is the vice president of product management for hybrid idea Century Lake. Good to see you, You guys and Brandon sweetie, who's the SPP of worldwide cloud sales at Veum With you be with you. This is gonna be a New England sports segment actually surrounded by ruin. Celtics, >>ESPN in Vegas, >>I remind you, the Washington Nationals are the reigning world. Serious shit. Wait a moment. Wait. Shark forever. A moment in time I got stuff. Let's talk about your relationship between via wearing set free like And what brings you here? A WSB offering. You're putting you guys that run on AWS. >>Maybe Maggie jumping and jumping. So look VM wear a long time player in the infrastructure space. Obviously incredible relationship with AWS. Customers want to transform their operations. They want to move to the cloud way have Vienna, where Claude, on a video B s. We continue to take tremendous ground helping customers build and build more agile infrastructure. Make that happen, Van. Where was built on our partners. Right centrally great partner MSP. And we think about helping customers achieve their business outcomes. Key partners like centrally make it happen. You've been a long term partner and done a lot of great things with us. >>Yeah, and really what? What Central Lincoln VM Where have done? I mean, really, we sort of created the manage private cloud market in the early days of managing the Empire solutions for customers, but really were and where we differentiate in other working with GM wear on AWS is really with elements of our network or the ability to take those kinds of solutions and make sure that they're connected to the right networks and that they're tied in and integrated with the customer's existing enterprise and where they want to go as they start to distribute the workload more widely. Because we run that network, we see a lot of the Internet traffic. We see a lot of threat patterns. We see a lot of things emerged with our cyber security capabilities and manage service is. So we add value there. And because of that history with BM wear and in sort of creating that hosted private cloud environment, there's There's a lot of complexity, friendliness inside of our service offer, where we can manage the inn where we can manage it in a traditional model that is cloud verified. And then you could manage it as it starts to move on to the AWS platform. Because, as we all know, and as even you know, Andy has referenced in different points, there's a just about every kind of workload can go to eight of us. But there are still certain things that can't quite go there. And building a hybrid solution basically puts customers in a position to innovate is what a hybrid solution is all about. >>That kind of moves the needle on some of those harder to move working in the M, where is such an obvious place to start? So you try to preserve that existing customer of'em, where customer experience but at the same time you want to bring the cloud experience. So how How is that evolving? >>Yes, it's a couple things, right? So l Tingley customers, they all want to move to the cloud for all the reasons we want security, agility, governance, et cetera. Right, but fundamentally need help. And so partners, like essentially help figure out which workloads are cloud ready, right? And figure that out and then to you, get to know the customer. Really well, begin the relationships that you have, right, and you can help them figure out which workloads am I gonna move right? And then that leads into more relationships on How do I set up d r. Right? How do I offer other service is through eight of us against those work clothes. >>There's a lot of things where being a manage service's provider for a V M were based platform or being. Amanda's service is provided for an AWS platform. There's a lot of things that you have in common, right? First and foremost is that ability toe run your operations securely. You've got to be secure. You know, you need to be able to maintain that bond of trust you need to be auditable. Your your your operations model needs to be something that transparent to the customer. You need to not just be about migrating workloads to the new and exciting environment, but also helping to transform it and take advantage of whether it's a V M where feature tool or next generation eight of us feature it's will. It's not just my great lift and shift, but then helped to transform what that that downstream, long term platform could do. You certainly want Teoh be in a posture where you're building a sense of intimacy with the customer. You're learning their acronyms. You're learning their business processes. You're building up that bond of trust where you can really be flexible with that customer. That's where the MSP community can also come in, because there's a lot of creative things we can do commercially. Contracting wise binding service's together into broader solutions and service level agreements that can go and give the customer something that they could just get by going teach individual technology platform under themselves >>and their ways >>where the service provider community really chips in. >>I think you're right and we think about helping Dr customers success manage service providers because of those engine relationship with customers. We've had tremendous success of moving those workloads, driving consumption of the service and really driving better business outcomes based on those relationships you have. >>So let's talk about workloads, guys. Course. Remember Paul Maritz when he was running the M word? He said Eddie Eddie Workload. Any application called it a device. He called it a software mainframe and Christian marketing people struck that from the parlance. But that's essentially what's happened pretty much run anything on somewhere. I heard Andy Jassy Kino talking about people helping people get off on mainframes. And so I feel like he's building the cloud mainframe. Any work less? But what kind of workloads are moving today? It's not. Obviously, he acknowledged, some of the hard core stuff's not gonna move. He didn't specify, but it's a lot of that hard core database ol TV transit transaction, high risk stuff. But what is moving today? Where do you see that going? >>Don't talk about some customers. >>Yeah, >>so a lot of joint customers we have that. I think you fall into that category. In fact, tomorrow on Thursday, we're actually leading a panel discussion that really dives into some customers. Success on the AWS platform that Central Lincoln are managed service is practice has been able to help them achieve what's interesting about that We have. We have an example from the public sector. We have an example from manufacturing and from from food and beverage example from the transportation industry and airlines. What's really interesting is that in all those use cases that will be diagramming out tomorrow, where VM Where's part of all of them, right? And sometimes it's because I am. Where is a critical part of their existing infrastructure? And so we're trying to be able to do is design, you know, sort of systems of innovation, systems of engagement that they were running inside of an AWS or broadly distributed AWS architecture. But it still needs network integration, security and activity back to the crown jewels and what's kept in a lot of those workloads that already running on the BM where platform So that's a lot of ways. See that a good deal with regards to your moving your sort of innovative workloads, your engagement workload, some of your digital experience, platforms you were working with an airline that wants to start building up a series of initiatives where they want to be able to sell vacation packages and and be very creative in how they market deliver those pulling through airline sails along the way. They're gonna be designing those digital initiatives in AWS, but they need access to flight flight information, schedule information, logistics information that they keep inside of there there. Bm where environment in the centralized data center. And so they're starting to look at workloads like that. We started to look at the N word cloud on eight of us being whereas it a zit in and of itself as a workload moving up to eight of us. There's a range of these solutions that we're starting to see, but a lot of it is still there, and he had the graphic up. There were still, in the very early days of clouded option. I still see a lot of work loads that are moving AWS theater in that system of engagement. How can I digitally engaged with my customers better? That's where a lot of the innovation is going on, and that's what a lot of the workload that are running in launching our >>I mean, we're seeing tremendous momentum and ultimately take any workload, wailed, moving to the cloud right and do it in an efficient and speedy path. And we've got custom moving thousands of workloads, right? They may decide over time to re factor them, but first and foremost, they could move them. They relocate them to the cloud. They can save a lot of costs. Out of that, they can use the exact same interface or pane of glass in terms. How they manage those work clothes, whether they're on Kramer, off Prem. It gives them tremendous agility. And if they decide over time, they have to re factor some workloads, which can be quite costly. They have that option, but there's no reason they shouldn't move. Every single worker today >>is their eyes, their disadvantage at all. If if you're left with ex workloads that have to stay behind, as opposed to someone who's coming up and getting up and running totally on the cloud and they're enjoying all those efficiencies and capabilities, are you a little bit of a disadvantage because you have to keep some legacy things lingering behind, or how do you eventually close that gap to enjoy the benefits of new technologies. Yeah, >>there's a sort of an old saying that, you know, if you're if you're if you're an enterprise, you know, that means you've had to make a lot of decisions along the way, right? And so presumably those decisions added value. It's your enterprise, or else she wouldn't be in enterprise. So it really comes out, too. Yeah, to those systems of records of those legacy systems way talk about legacy systems >>on Lian I t. Is the word legacy. I know it's a positive. United is the word legacy. A majority of >>your legacy is what the value you built up a lot of that, whether it's airline flight data or scheduling, best practices are critical. Crown jewels kind of data systems are really important. It really comes down to it. You're on enterprise and you're competing against somebody that is born in the cloud. How well integrated is everything. And are you able to take advantage of and pace layer your innovation strategy so that you can work on the cloud where it makes sense. You can still take advantage of all the data and intelligence you build up about your customers >>so talking earlier, You guys, it seems like you guys do you see that? That cloud is ultimately the destination of all these workloads. But, you know, Pac thinking about PacBell Singer, he talked about the laws of physics, the laws of economics and the laws of the land so that he makes the case for the hybrid >>Murphy's Law. >>Yeah, so that makes the case for the hybrid world. And it seems like Amazon. To a certain extent, it's capitulating on that, and it seems like we got a long way to go. So it's almost like the cloud model will go to your data wherever it iss. You guys, I think, helped facilitate that. How do you look at that? >>Yes. I mean, part of that answer is how much data centers are becoming sort of an antiquated model right there. There there is a need for computing and storage in a variety of different locations. Right, And there's that we've been sort of going through these cycles back and forth of you use the term software mainframe and the on the Palmer. It's kind, a model of the original mainframe decentralizing out the client server now centralizing again to the cloud as we see it starting to swing back on the other direction for towards devices that are a lot smarter. Processors that are, you know, finally tuned for whatever Internet of things use case that they're being designed for being able to put business logic a whole lot closer to those devices. The data. So I think that is what one of things that I think that said that one of the BM wears. A couple of years ago, data centers were becoming centers of data. And how are you able to go and work with those centers of data? First off, link them all together, networking lies, secure them all together and then manage them consistently. I think that's one of the things I am has been really great about that sort of control playing data plane separation inside your product design that makes that a whole lot more feet. >>I mean, it is a multi cloud, and it's a hybrid cloud world, and we want to give customers of flexibility and choice to move their workloads wherever they need, right based on different decisions, geographic implications, et cetera, security regimens and mean fundamentally. That's where we give customers a tremendous, tremendous amount of flexibility. >>And bringing the edge complicates >>edge, data center or cloud. >>It's so maybe it's not a swing back, you know, because it really has been a pendulum swing, mainframe, decentralized swing back to the cloud. It feels like it's now this ubiquitous push everywhere. >>Pendulum stops. >>Yeah, >>because there's an equal gravitational pull between the power of both locals >>and compute explodes everywhere. You have storage everywhere. So bring me my question of governance, governance, security in the edicts of the organization. You touched on that. So that becomes another challenge. How do you see that playing out what kind of roles you play solving that problem >>on the idea of data governance? Governance? Yeah. I mean the best way to think about our. In our opinion, the best way to think about data governance is that is really with abstraction. Layers and being ableto have a model driven approach to what you're deploying out into the cloud, and you can go all in with the data model that exists in the attraction layers in the date and the model driven architecture that you can build inside things like AWS cloud formations or inside things like answerable and chef and been puppet, their model, different ways of understanding what your application known state should be on. That's the foundational principle of understanding what your workloads are and how you can actually deliver governance over them. Once you've modelled it on and you then know how to deploy it against a variety different platforms, then you're just a matter of keeping track of what you've modelled, where you've deployed it and inventorying those number of instances and how they scale and how healthy there that certainly, from a workload standpoint, I think governance discipline that you need in terms of the actual data itself. Data governance on where data is getting stored There's a lot of innovation here at the show floor. In terms of software to find storage and storage abstractions, the embers got a great software to find storage capability called the San. We're working with a number of different partners within the core of our network, starting to treat storage as sort of a new kind of virtualized network function, using things like sifts and NFS and I scuzzy as V n F that you can run inside the network we want. We have had an announcement here earlier in the week about our central bank's network storage offer. We're actually starting to make storage and the data policy that allows you to control words replicated and where it's stored. Just part of the network service that you can add is a value add >>or even the metadata get the fastest path to get to it if I need to. If I prefer not to move it, you're starting to see you're talking about multiplied this multi cloud world. It seems like the connections between those clouds are gonna be dictated by that metadata and the intelligence tow. You know what the right path is, >>And I think we want to provide the flexibility to figure out where that data needs to reside. Cross cloud on, Prem off from, and you can just hear from the conversation, David, level of intimacy some of our partners have with customers to work through those decisions. Right, if you're gonna move those workloads effectively and efficiently, is where we get a lot of value for our joint customers. >>I mean, she's pretty fundamental to this notion of digital transformation that's ultimately what we've been talking about. Digital transformation is all about data putting data at the core, being able to access that, get insights from it and monetize, not directly, but understand how data affects the monetization of your business. That's what your customers >>and I think we >>wantto. Besides, I think we want to simplify how you want to spend more time looking up. Your applications are looking down your infrastructure, right? Based on all the jury, are drivers across the different business needs. And again, if we can figure out how to simplify that infrastructure, then people could spend more time on the applications because that's how they drive differentiation in the market, right? And so let's simplify infrastructure, put it where it needs to be. But we're going to give you time back to drive innovation and focus on differentiating yourself. >>You know, it's interesting on the topic of digital transformation reindeer. So right, sort of an interesting little pattern that plays out for those of us that have been in the service of writer community for a little while that a lot of the digital transformation success stories that you see that really get a lot of attention around the public cloud like eight of us. The big major moves into going all in on the public cloud tend to come from companies that went all in on the service provider model 10 years ago, the ones that adopted the idea. I'm just gonna have somebody do this non differentiating thing for me so that I can focus on innovation, are then in a better position to go start moving to the cloud as opposed to companies that have been downward focused on their infrastructure. Building up skill sets, building up knowledge base, building up career, path of people that, actually we're thinking about the technology itself as part of their job description have had a hard time letting go. It sort of the first step of trusting the service provider to do it for you lead you to that second step of being able to just leverage and go all in on the public lab. >>And customers need that help, right? And that's where if we can help activate moving those workloads more quickly, we provide that ability, put more focus on innovation to Dr Outcomes. >>I know you're talking about legacy a little bit ago and that the negative connotation, I think. Tom Brady, Don't you think I wanna run number seven? I haven't had a home smiling Would always do it back with more. We continue our coverage here. Live with the cube, where a w s rivet 2019.

>> live from Las Vegas. It's the queue covering Dell Technologies. World twenty nineteen. Brought to you by Dell Technologies and its ecosystem partners. >> The one Welcome to the Special Cube Live coverage here in Las Vegas with Dell Technologies World 2019. I'm John Furrier with Dave Vellante breaking down day one of three days of wall the wall Coverage - 2 Cube sets. Uh, big news today and dropping here. Dell Technology World's series of announcements Cloud ability, unified work spaces and then multi cloud with, uh, watershed announced with Microsoft support for VMware with Azure are guests here theCUBE alumni that Seo, senior leader of'Em Where Sanjay *** and such a great to see you, >> John and Dave always a pleasure to be on your show. >> So before we get into the hard core news around Microsoft because you and Satya have a relationship, you also know Andy Jassy very well. You've been following the Clouds game in a big way, but also as a senior leader in the industry and leading BM where, um, the evolution of the end user computing kind of genre,  that whole area is just completely transformed with mobility and cloud kind of coming together with data and all this new kinds of applications. The modern applications are different. It's changing the game on how end users, employees, normal people use computing because some announcement here on their What's your take on the ever changing role of cloud and user software? >> Yeah, John, I think that our vision , as  you know, it was the first job I came to do at VMware almost six years ago, to run and use a computing. And the vision we had at that time was that you should be able to work at the speed of life, right? You and I happen to be on a plane at the same time  yesterday coming here, we should be able to pick our amps up on our devices. You often have Internet now even up at thirty thousand feet. In the consumer world, you don't lug around your CDs, your music, your movies come to you. So the vision of any app on any device was what we articulated with the digital workspace We. had Apple and Google very well figured out. IOS later on Mac,  Android,  later on chrome . The Microsoft relationship in end use the computing was contentious because we overlapped. They had a product, PMS and in tune. But we always dreamed of a day. I tweeted out this morning that for five and a half years I competed with these guys. It was always my dream to partner with the With Microsoft. Um, you know, a wonderful person, whom I respect there, Brad Anderson. He's a friend, but we were like LeBron and Steph Curry. We were competing against each other. Today everything changed. We are now partners. Uh, Brad and I we're friends, we'll still be friends were actually partners  now why? Because we want to bring the best of the digital workspace solution VMware brings workspace one to the best of what Microsoft brings in Microsoft 365 , active directory, E3 capabilities around E. M. S and into it and combined those together to help customers get the best for any device. Apple, Google and Microsoft that's a game changer. >> Tell about the impact of the real issue of Microsoft on this one point, because is there overlap is their gaps, as Joe Tucci used to say, You can't have any. There's no there's no overlap if you have overlapped. That's not a >> better to have overlapped and seems right. A gaps. >> So where's the gaps? Where this words the overlapping cloud. Next, in the end user world, >> there is a little bit of overlap. But the much bigger picture is the complementarity. We are, for example, not trying to be a directory in the Cloud That's azure active directory, which is the sequel to Active Directory. So if we have an identity access solution that connect to active directory, we're gonna compliment that we've done that already. With Octo. Why not do that? Also inactive Directory Boom that's clear. Ignored. You overlap. Look at the much bigger picture. There's a little bit of overlap between in tune and air Watch capabilities, but that's not the big picture. The big picture is combining workspace one with E. M s. to allow Office 365 customers to get conditional access. That's a game, so I think in any partnership you have to look past, I call it sort of these Berlin Wall moments. If the U. S and Soviet Union will fighting over like East Germany, vs West Germany, you wouldn't have had that Berlin wall moment. You have to look past the overlaps. Look at the much bigger picture and I find the way by which the customer wins. When the customer wins, both sides are happy. >> Tearing down the access wall, letting you get seamless. Access the data. All right, Cloud computing housely Multi cloud announcement was azure something to tell on stage, which was a surprise no one knew was coming. No one was briefed on this. It was kind of the hush hush, the big news Michael Delll, Pat Girl singer and it's nothing to tell up there. Um, Safia did a great job and really shows the commitment of Microsoft with the M wear and Dell Technologies. What is this announcement? First, give us your take an analysis of what they announced. And what does it mean? Impact the customers? >> Yeah, listen, you know, for us, it's a further That's what, like the chess pieces lining up of'Em wars vision that we laid up many years for a hybrid cloud world where it's not all public cloud, it isn't all on premise. It's a mixture. We coined that Tom hybrid loud, and we're beginning to see that realize So we had four thousand cloud providers starting to build a stack on VM, where we announced IBM Cloud and eight of us. And they're very special relationships. But customers, some customers of azure, some of the retailers, for example, like Wal Mart was quoted in the press, released Kroger's and some others so they would ask us, Listen, we're gonna have a way by which we can host BMO Workloads in there. So, through a partnership now with Virtue Stream that's owned by Dell on DH er, we will be able to allow we, um, where were close to run in Virtue Stream. Microsoft will sell that solution as what's called Azure V M, where solutions and customers now get the benefit of GMO workloads being able to migrate there if they want to. Or my great back on the on premise. We want to be the best cloud infrastructure for that multi cloud world. >> So you've got IBM eight of us Google last month, you know, knock down now Azure Ali Baba and trying you. Last November, you announced Ali Baba, but not a solution. Right >> now, it's a very similar solutions of easy solution. There's similar what's announced with IBM and Nash >> So is it like your kids where you loved them all equally or what? You just mentioned it that Microsoft will sell the VM wear on Azure. You actually sell the eight of us, >> so there is a distinction. So let me make that clear because everything on the surface might look similar. We have built a solution that is first and preferred for us. Called were MacLeod on a W s. It's a V m er manage solution where the Cloud Foundation stack compute storage networking runs on a ws bare metal, and V. Ember manages that our reps sell that often lead with that. And that's a solution that's, you know, we announced you were three years ago. It's a very special relationship. We have now customer attraction. We announce some big deals in queue, for that's going great, and we want it even grow faster and listen. Eight of us is number one in the market, but there are the customers who have azure and for customers, one azure very similar. You should think of this A similar to the IBM ah cloud relationship where the V C P. V Partners host VM where, and they sell a solution and we get a subscription revenue result out of that, that's exactly what Microsoft is doing. Our reps will get compensated when they sell at a particular customer, but it's not a solution that's managed by BM. Where >> am I correct? You've announced that I think a twenty million dollars deal last quarter via MacLeod and A W. And that's that's an entire deal. Or is that the video >> was Oh, that was an entirely with a customer who was making a big shift to the cloud. When I talked to that customer about the types of workloads, they said that they're going to move hundreds off their APs okay on premise onto via MacLeod. And it appears, so that's, you know, that's the type of cloud transformation were doing. And now with this announcement, there will be other customers. We gave an example of few that Well, then you're seeing certain verticals that are picking as yours. We want those two also be happy. Our goal is to be the undisputed cloud infrastructure for any cloud, any cloud, any AP any device. >> I want to get your thoughts. I was just in the analysts presentation with Dell technology CFO and looking at the numbers, the performance numbers on the revenue side Don Gabin gap our earnings as well as market share. Dell. That scales because Michael Delll, when we interviewed many years ago when it was all going down, hinted that look at this benefits that scale and not everyone's seeing the obvious that we now know what the Amazon scale winds so scale is a huge advantage. Um, bm Where has scale Amazon's got scale as your Microsoft have scales scales Now the new table stakes just as an industry executive and leader as you look at the mark landscape, it's a having have not world you'd have scale. You don't If you don't have scale, you're either ecosystem partner. You're in a white space. How do companies compete in this market? Sanjay, what's your thoughts on I thinkit's >> Jonah's? You said there is a benefit to scale Dell, now at about ninety billion in revenue, has gone public on their stock prices. Done where Dellvin, since the ideal thing, the leader >> and sir, is that point >> leader in storage leader inclined computing peces with Vienna and many other assets like pivotal leaders and others. So that scale VM, Where about a ten billion dollar company, fifth largest software company doing verywell leader in the softer to find infrastructure leader, then use a computing leader and softer, defined networking. I think you need the combination of scale and speed, uh, just scale on its own. You could become a dinosaur, right? And what's the fear that every big company should have that you become ossified? And I think what we've been able to show the world is that V M wear and L can move with scale and speed. It's like having the combination of an elephant and a cheetah and won and that to me special. And for companies like us that do have scaled, we've to constantly ask ourselves, How do we disrupt ourselves? How do we move faster? How do we partner together? How do we look past these blind spots? How do we pardon with big companies, small companies and the winner is the customer. That's the way we think. And we could keep doing that, you'll say so. For example, five, six years ago, nobody thought of VMware--this is going before Dell or EMC--in the world of networking, quietly with ten thousand customers, a two million dollar run rate, NSX has become the undisputed leader and software-defined networking. So now we've got a combination of server, storage and a networking story and Dell VMware, where that's very strong And that's because we moved with speed and with scale. >> So of course, that came to an acquisition with Nice Sarah. Give us updates on the recent acquisitions. Hep C e o of Vela Cloud. What's happening there? >> Yeah, we've done three. That, I think very exciting to kind of walk through them in chronological order about eighteen months ago was Velo Cloud. We're really excited about that. It's sort of like the name, velocity and cloud fast. Simple Cloud based. It is the best solution. Ston. How do we come to deciding that we went to talk to our partners like t other service providers? They were telling us this is the best solution in town. It connects to the data center story to the cloud story and allows our virtual cloud network to be the best softer. To find out what you can, you have your existing Mpls you might have your land infrastructure but there's nobody who does softer to find when, like Philip, they're excited about that cloud health. We're very excited about that because that brings a multi cloud management like, sort of think of it like an e r P system on top of a w eso azure to allow you to manage your costs and resource What ASAP do it allows you to manage? Resource is for materials world manufacturing world. In this world, you've got resources that are sitting on a ws or azure. Uh, cloud held does it better than anybody else. Hefty. Oh, now takes a Cuban eighty story that we'd already begun with pivotal and with Google is you remember at at PM world two years ago. And that's that because the founders of Cuban eighties left Google and started FTO. So we're bringing that DNA we've become now one of the top two three contributors to communities, and we want to continue to become the de facto platform for containers. If you go to some of the airports in San Francisco, New York, I think Keilani and Heathrow to you'LL see these ads that are called container where okay, where do you think the Ware comes from Vienna, where, OK, and our goal is to make containers as container where you know, come to you from the company that made vmc possible of'Em where So if we popularized PM's, why not also popularised the best enterprise contain a platform? That's what helped you will help us do >> talk about Coburn at ease for a minute because you have an interesting bridge between end user computing and their cloud. The service is micro. Services that are coming on are going to be powering all these APS with either data and or these dynamic services. Cooper, Nettie sees me the heart of that. We've been covering it like a blanket. Um, I'm gonna get your take on how important that is. Because back Nelson, you're setting the keynote at the Emerald last year. Who burn it eases the dial tone. Is Cooper Netease at odds with having a virtual machine or they complimentary? How does that evolving? Is it a hedge? What's the thoughts there? >> Yeah, First off, Listen, I think the world has begun to realize it is a world of containers and V ems. If you looked at the company that's done the most with containers. Google. They run their containers in V EMS in their cloud platform, so it's not one or the other. It's vote. There may be a world where some parts of containers run a bare metal, but the bulk of containers today run and Beyonce And then I would say, Secondly, you know, five. Six years ago, people all thought that Doctor was going to obliterate VM where, But what happened was doctors become a very good container format, but the orchestration layer from that has not become daugher. In fact, Cuban Eddie's is kind of taking a little of the head and steam off Dr Swarm and Dr Enterprise, and it is Cooper Navy took the steam completely away. So Senses Way waited for the right time to embrace containers because the obvious choice initially would have been some part of the doctor stack. We waited as Borg became communities. You know, the story of how that came on Google. We've embraced that big time, and we've stated a very important ball hefty on All these moves are all part of our goal to become the undisputed enterprise container platform, and we think in a multi cloud world that's ours to lose. Who else can do multi cloud better than VM? Where may be the only company that could have done that was Red Hat. Not so much now, inside IBM, I think we have the best chance of doing that relative. Anybody else >> Sanjay was talking about on our intro this morning? Keynote analysis. Talking about the stock price of Dell Technologies, comparing the stock price of'Em where clearly the analysis shows that the end was a big part of the Dell technologies value. How would you summarize what v m where is today? Because on the Kino there was a Bank of America customers. She said she was the CTO ran, she says, Never mind. How we got here is how we go floors the end wars in a similar situation where you've got so much success, you always fighting for that edge. But as you go forward as a company, there's all these new opportunities you outlined some of them. What should people know about the VM? We're going forward. What is the vision in your words? What if what is VM where >> I think packed myself and all of the key people among the twenty five thousand employees of'Em are trying to create the best infrastructure company of all time for twenty one years. Young. OK, and I think we have an opportunity to create an incredible brand. We just have to his use point on the begins show create platforms. The V's fear was a platform. Innocent is a platform workspace. One is a platform V san, and the hyper convert stack of weeks right becomes a platform that we keep doing. That Carbonetti stuff will become a platform. Then you get platforms upon platforms. One platforms you create that foundation. Stone now is released. ADelle. I think it's a better together message. You take VX rail. We should be together. The best option relative to smaller companies like Nutanix If you take, you know Veum Where together with workspace one and laptops now put Microsoft in the next. There's nobody else. They're small companies like Citrix Mobile. I'm trying to do it. We should be better than them in a multi cloud world. They maybe got the companies like Red Hat. We should have bet on them. That said, the end. Where needs toe also have a focus when customers don't have Dale infrastructure. Some people may have HP servers and emcee storage or Dell Silvers and netapp storage or neither. Dellery emcee in that case, usually via where, And that's the way we roll. We want to be relevant to a multi cloud, multi server, multi storage, any hardware, any cloud. Any AP any device >> I got. I gotta go back to the red hat. Calm in a couple of go. I could see you like this side of IBM, right? So So it looks like a two horse race here. I mean, you guys going hard after multi cloud coming at it from infrastructure, IBM coming at it with red hat from a pass layer. I mean, if I were IBM, I had learned from VM where leave it alone, Let it blossom. I mean, we have >> a very good partisan baby. Let me first say that IBM Global Services GTS is one about top sai partners. We do a ton of really good work with them. Uh, I'm software re partner number different areas. Yeah, we do compete with red hat with the part of their portfolios. Relate to contain us. Not with Lennox. Eighty percent plus of their businesses. Lennox, They've got parts of J Boss and Open Stack that I kind of, you know, not doing so well. But we do compete with open ship. That's okay, but we don't know when we can walk and chew gum so we can compete with Red Hat. And yet partner with IBM. That's okay. Way just need to be the best at doing containing platform is better than open shifter. Anybody, anything that red hat has were still partner with IBM. We have to be able to look at a world that's not black and white. And this partnership with Microsoft is a good example. >> It's not a zero sum game, and it's a huge market in its early days. Talk >> about what's up for you now. What's next? What's your main focus? What's your priorities? >> Listen, we're getting ready for VM World now. You know in August we want to continue to build momentum on make many of these solutions platforms. So I tell our sales reps, take the number of customers you have and add a zero behind that. OK, so if you've got ten thousand customers of NSX, how do we get one hundred thousand customers of insects. You have nineteen thousand customers of Visa, which, by the way, significantly head of Nutanix. How do we have make one hundred ninety thousand customers? And we have that base? Because we have V sphere and we have the Delll base. We have other partners. We have, I think, eighty thousand customers off and use of computing tens of millions of devices. How do we make sure that we are workspace? One is on billion. Device is very much possible. That's the vision. >> I think that I think what's resonating for me when I hear you guys, when you hear you talk when we have conversations also in Pat on stage talks about it, the simplification message is a good one and the consistency of operating across multiple environments because it sounds great that if you can achieve that, that's a good thing. How you guys get into how you making it simple to run I T. And consistent operating environment. It's all about keeping the customer in the middle of this. And when we listen to customs, all of these announcements the partnership's when there was eight of us, Microsoft, anything that we've done, it's about keeping the customer first, and the customer is basically guiding up out there. And often when I sit down with customers, I had the privilege of talking hundreds of thousands of them. Many of these CEOs the S and P five hundred I've known for years from S athe of'Em were they'LL Call me or text me. They want us to be a trusted advisor to help them understand where and how they should move in their digital transformation and compared their journey to somebody else's. So when we can bring the best off, for example, of developer and operations infrastructure together, what's called DEV Ops customers are wrestling threw that in there cloud journey when we can bring a multi device world with additional workspace. Customers are wrestling that without journey there, trying to figure out how much they keep on premise how much they move in the cloud. They're thinking about vertical specific applications. All of these places where if there's one lesson I've learned in my last ten twenty years of it has become a trusted advisor to your customers. Lean on them and they will lean on you on when you do that. I mean the beautiful world of technology is there's always stuff to innovate. >> Well, they have to lean on you because they can't mess around with all this infrastructure. They'LL never get their digital transformation game and act together, right? Actually, >>= it's great to see you. We'Ll see you at PM, >> Rollo. Well, well, come on, we gotta talk hoops. All right, All right, All right, big. You're a big warriors fan, right? We're Celtics fan. Would be our dream, for both of you are also Manny's themselves have a privileged to go up against the great Warriors. But what's your prediction this year? I mean, I don't know, and I >> really listen. I love the warriors. It's ah, so in some senses, a little bit of a tougher one. Now the DeMarcus cousins is out for, I don't know, maybe all the playoffs, but I love stuff. I love Katie. I love Clay, you know, and many of those guys is gonna be a couple of guys going free agents, so I want to do >> it again. Joy. Well, last because I don't see anybody stopping a Celtics may be a good final. That would be fun if they don't make it through the rafters, though. That's right. Well, I Leonard, it's tough to make it all right. That sounds great. >> Come on. Sanjay Putin, CEO of BM Wear Inside the Cube, Breaking down his commentary of you on the landscape of the industry and the big news with Microsoft there. Other partner's bringing you all the action here Day one of three days of coverage here in the Cubicle two sets a canon of cube coverage out there. We're back with more after this short break.