>>from the Cube Studios in Palo Alto and Boston connecting with thought leaders all around the world. This is a cube conversation. >>Hey, welcome back, everybody. Jeff Frick here with the Cube. We have a cube conversation today talking about an exciting announcement coming out of our friends over it at V M, where it's the second generation via VMware Cloud on Dell EMC. And to tell us more about it, we've got a couple Cube alumni that we're always happy to have on. First off, we're joined by Matt Morgan. He is the VP of marketing at VMware. Matt, Great to see you. Great CTO. And then Wei Wang, She's the product or director of product marketing of the VMware way. Great to see you as well. >>Nice to see you, Jeff. >>So, first off, hope you guys were getting through. Ah, the stay at home and work from home and family. Everything good >>thes air. Unprecedented times for sure, But we're fortunate and we're doing fine. I hope everything is going well with you and your family. >>Yeah, Thank you. I mean, we are lucky to be an IT space. So we can We can flip the digital much easier than some industries. Let's jump into this announcement. Second generation via VMware Cloud on Dell, EMC. You guys only announced this in production like a year ago. So, Matt, what? What kind of drove a second generation already know What were some of the drivers and what what is the essence of the second generation? >>Yeah, the space is moving really fast. As you know, Public Cloud has captured the imagination of practically every IT organization on the planet. Because the public cloud provides a new way of doing business. It allows you to consume technology on demand, allows you to have the elasticity, allows you to have op ex financial treatment. But more importantly, it takes you out of the core management business. No more hardware refreshes. No more operational control of the core infrastructure. This is all delivered as a service. The problem is, in order to get this value, you have to turn to the public cloud. You have to actually replace your workload in the data center that someone else managed, and that data center might be far away from the data that is being generated. And so in many cases, It's just simply not practical to move all of your workloads there. So on premise, technology is still going to be important. What VMware announced way back in 2000 and 18 I think it was August 2018 at VM World is Project Dimension, and the whole concept was about delivering the cloud to the data center but truly allowing you to run your data center or data center infrastructure in a truly manage, cloud centric way. We then commercialized it when we announced via VMware Cloud on Dell, EMC, the product and the uptake has been off the hook. We've seen industry analysts like you saw with Rick. We've seen our customers really embrace this technology, and we've got an enormous feedback and that feedback is also driven a new set of requirements. And the truth is, while we envisioned this technology to clearly be an edge play, our customers are telling us it's a data center play. They believe that they can reimagine their data center to operate just like a cloud, and by deploying via VMware cloud on Dell EMC. This facilitates their needs to do that, but they needed a new class of system something a lot more powerful than our first generation, something that could take on all of the workloads. In fact, there's a slide. If you want to pull it up, we kind of illustrate this. The second generation solution is all about turning the volume up to 11. We are enabling organizations to put two times as many VMS on this technology. They, in effect, can run twice as many workloads. More importantly, for a nightie architect, they can design a system that will take on the most demanding, most complex business critical applications with largest set of data and be able to manage that as a entity but in a cloud model on premises. >>Now, Matt I'm struck a little bit because, you know, first if you talk about edge and this was really, you know, kind of a response to growth of the edge and the anticipated growth of edge and I ot and then at the now you're saying really, you know, there's this great opportunity in the data center, and I think we had Rick on from IDC, talked about local cloud as a service, so that's spanning a pretty wide range of environments, workloads, all types of demand. So what are the real critical, you know, kind of functional capabilities of a local cloud as a service and specifically with VMware Cloud. >>So we partnered with Rick when he was defining this category. And if you look at what Rick's research, he sees this category growing. I think too close to $5 billion all in revenue, that all in revenue is coming in the next 2.5 years. That's a faster scale out than we saw HCI. And in his research he's finding the same information that we found when we did our early customer surveys. We have identified a real need at the edge, but let's not underplay that. If you look at a 5G cell tower, typically they need compute that's local. They're gonna be tons of these erected over the next few years, and they don't have on-premise IT infrastructure people to manage that technology, so there's an opportunity to have a managed approach where the compute is local, but it's managed as a cloud. Clearly, the solution is custom designed for that, but I can look at a dozen other IoT centric opportunity. Let's talk about energy production. An offshore oil rig. Again, no IT Staff. The need for compute lots of sensor data, the opportunity to deliver a managed approach gives you that capacity. Let's look at agriculture again, pushing out compute to the edge. So this edge component is another hyper growth area or information technology, and we have a great solution. Custom built for that. However, as I had mentioned right, the growth of use cases includes the most important, the most significant business critical apps that are really big gaps that live in the data center. This can include a variety of different use cases. Think about a hospital. They have data centers in each of the regions. That's all perfect fit for this. Talk about a technology base for virtualized desktop infrastructure. Think about having to deploy an SAP application. There's a dozen more I can think of right off the top of my head. But what we did with the second generations we listen >>to the customer. >>The customers wanted more power. They wanted more capacity. They wanted the opportunity to have a full rack that could beat their expectations on the capacity and power side so that they can fulfill their requirements, and that's what this >>is all about. >>So that's great, Matt way, you're You're a little bit more in the weeds in the product development. What are some of the things that you're excited about in this second gen offering that maybe people aren't as aware of or maybe is a little bit below the radar, >>Right? Okay, so let me first and talk about that. This is truly, as Matt pointed out, is not an insignificant release, right? This is not incremental. We, for example, that our customer we're rolling out a full 40 to argue rack that is support the traditional use cases and also that more than use cases and thinking about also a brand new eastern type that we call internal people Montt medium that in which we doubled not the sock account, but also the CPU moving from a to 24 CPUs to a 48 total and double our realm Rama 368 to 700 before and also doubling to introducing all flash like envy. MB based flash secondary storage for, um, 11 point half to 23 terabytes. And all these is really to honing in what might have pointed out that enterprise class. You know, the hi workloads, very density work clothes, right? You can put into the area 12 to 15. This kind of notes offer development and allows you to have that in the data center and to making sure that you have that kind of capacity for performance. We have that. The second thing I want to mention, as you can imagine, is the VD I I think virtual desktop infrastructure cannot be more important have this environment. Everybody is looking at it, and especially for the highly regulated industries like healthcare. So VMware right? We help for where the market leader with our offerings as a VM or horizon solution. So what happens in this release is we actually 35? We'll be certified on the VM or as horizon solution to making sure that we offer that enterprise distributed capacity to the industry that we really want to run up fast and also to making sure that they obviously cannot have actually support to have that capacity to offer the remote workers to front line healthcare workers and other business continuity type off use cases to that capacity for video. The last one is actually as you can imagine. Also in this environment is data backup and recovery. Right? The the enterprises are looking for a solution that in which they can not only backup protect and also search for search for the things that they can actually, for historical reasons. So in this release, we're actually certified to solutions for back up the 1st 1 of course, with our friends at Dell. Right, Dell data protect solution. The 2nd 1 is that's an industry leading solution right there. And the 2nd 1 is actually the beam, though so but with both solutions now, we can truly offer our customers who are looking for enterprise strength a backup solution to for the continuity and also for this to continue to operate in this environment. >>So I'm just curious. Before we let you go, you talked about this being a pretty significant release and we've talked about markets basis from edge back into the data center. Ah, and really kind of enterprise class heavy workloads, critical workloads, applications running this so as you look forward, you know, not give me any secrets out in terms of roadmap. But Where do you see this? This class of application evolving. >>So I think that you can imagine the week we talked to a variety of customers there different ways. We can actually expand this many off our retail customers has talked about their suggestions and 5G towers. Not only we can expand it to a data center, we probably will actually offer this type of solutions into, for example, a substantial retail shop or a back of pizza shop that's going small on one end. The other end is, I think, that many of our customers have expressed interest off off colocators, right. They're working with in other geographical areas that they're actually working with local providers that that they don't they don't own themselves. They do not even wanted to purchase right the cooling and managing the space. So they want us to provide an integrated solution with many of the large colocators, but as well as some of the niche colocators, so that we can offer that end to end and offer that together a city platform to our partners. So that's where we're going >>very exciting space, and you guys do. Move quick, Matt. I'll give you the last word before we sign out where people get more information. Wouldn't g A Or I guess, or is it is G. I think we are, Um, give us the last word. >>Yes, so yes, the services available. People can get more information BMR dot com And I think you know the truth of the matter is the cloud is an operating model. It's not an individual data center location, right? And the idea of a cloud. A cloud operating model that could be hybrid that can move from public cloud data centers to your own own data centers to the edge to everywhere in between, including MSC's VMware provides a great platform that standardizes across that on one of the things that is a driver for VMware customers is their ability to eat their existing workloads without having to modify re factor or rework the right. I have a workload that I sit in a data center in a public cloud of VM where simply V motion or use HC X to move that workload, and I could be up and running instantly on that consistency as a lot of flexibility, agility and, you know, it helps people do things faster. So I think those of my final comments it was really good to see you, Jeff. Thanks for having us. You >>do. Thanks for checking in. Ah, I think it's the first time we've done one of these, But certainly we've spent lots of time together around the Cube set. So Ah, I'm glad everybody's healthy and this to show passed. So keep working hard to keep delivering great products. And thanks again for stopping by. >>Thank you. >>Alright, He's Matt and way. I'm Jeff. You're watching the Cube. Thanks for watching. We'll see you next time. Yeah, yeah, yeah, yeah.