(upbeat music) >> Welcome to theCUBE's continuing coverage of AMD's fourth generation EPYC launch. I've got a special guest with me today from Prowess Consulting. His name is Evan Touger, he's a senior technical writer with Prowess. Evan, welcome. >> Hi, great to be here. Thanks. >> So tell us a little bit about Prowess, what does Prowess do? >> Yeah, we're a consulting firm. We've been around for quite a few years, based in Bellevue, Washington. And we do quite a few projects with folks from Dell to a lot of other companies, and dive in. We have engineers, writers, production folks, so pretty much end-to-end work, doing research testing and writing, and diving into different technical topics. >> So you- in this case what we're going to be talking about is some validation studies that you've done, looking at Dell PowerEdge servers that happened to be integrating in fourth-gen EPYC processors from AMD. What were the specific workloads that you were focused on in this study? >> Yeah, this particular one was honing in on virtualization, right? You know, obviously it's pretty much ubiquitous in the industry, everybody works with virtualization in one way or another. So just getting optimal performance for virtualization was critical, or is critical for most businesses. So we just wanted to look a little deeper into, you know, how do companies evaluate that? What are they going to use to make the determination for virtualization performance as it relates to their workloads? So that led us to this study, where we looked at some benchmarks, and then went a little deeper under the hood to see what led to the results that we saw from those benchmarks. >> So when you say virtualization, does that include virtual desktop infrastructure or are we just talking about virtual machines in general? >> No, it can include both. We looked at VMs, thinking in terms of what about database performance when you're working in VMs, all the way through to VDI and companies like healthcare organizations and so forth, where it's common to roll out lots of virtual desktops, and performance is critical there as well. >> Okay, you alluded to, sort of, looking under the covers to see, you know, where these performance results were coming from. I assume what you're referencing is the idea that it's not just all about the CPU when you talk about a system. Am I correct in that assumption and- >> Yeah, absolutely. >> What can you tell us? >> Well, you know, for companies evaluating, there's quite a bit to consider, obviously. So they're looking at not just raw performance but power performance. So that was part of it, and then what makes up that- those factors, right? So certainly CPU is critical to that, but then other things come into play, like the RAID controllers. So we looked a little bit there. And then networking, of course can be critical for configurations that are relying on good performance on their networks, both in terms of bandwidth and just reducing latency overall. So interconnects as well would be a big part of that. So with, with PCIe gen 5 or 5.0 pick your moniker. You know in this- in the infrastructure game, we're often playing a game of whack-a-mole, looking for the bottlenecks, you know, chasing the bottlenecks. PCIe 5 opens up a lot of bandwidth for memory and things like RAID controllers and NICs. I mean, is the bottleneck now just our imagination, Evan, have we reached a point where there are no bottlenecks? What did you see when you ran these tests? What, you know, what were you able to stress to a point where it was saturated, if anything? >> Yeah. Well, first of all, we didn't- these are particular tests were ones that we looked at industry benchmarks, and we were examining in particular to see where world records were set. And so we uncovered a few specific servers, PowerEdge servers that were pretty key there, or had a lot of- were leading in the category in a lot of areas. So that's what led us to then, okay, well why is that? What's in these servers, and what's responsible for that? So in a lot of cases they, we saw these results even with, you know, gen 4, PCIe gen 4. So there were situations where clearly there was benefit from faster interconnects and, and especially NVMe for RAID, you know, for supporting NVMe and SSDs. But all of that just leads you to the understanding that it means it can only get better, right? So going from gen 4 to- if you're seeing great results on gen 4, then gen 5 is probably going to be, you know, blow that away. >> And in this case, >> It'll be even better. >> In this case, gen 5 you're referencing PCIe >> PCIe right. Yeah, that's right. >> (indistinct) >> And then the same thing with EPYC actually holds true, some of the records, we saw records set for both 3rd and 4th gen, so- with EPYC, so the same thing there. Anywhere there's a record set on the 3rd gen, you know, makes us really- we're really looking forward to going back and seeing over the next few months, which of those records fall and are broken by newer generation versions of these servers, once they actually wrap to the newer generation processors. You know, based on, on what we're seeing for the- for what those processors can do, not only in. >> (indistinct) Go ahead. >> Sorry, just want to say, not only in terms of raw performance, but as I mentioned before, the power performance, 'cause they're very efficient, and that's a really critical consideration, right? I don't think you can overstate that for companies who are looking at, you know, have to consider expenditures and power and cooling and meeting sustainability goals and so forth. So that was really an important category in terms of what we looked at, was that power performance, not just raw performance. >> Yeah, I want to get back to that, that's a really good point. We should probably give credit where credit is due. Which Dell PowerEdge servers are we talking about that were tested and what did those interconnect components look like from a (indistinct) perspective? >> Yeah, so we focused primarily on a couple benchmarks that seemed most important for real world performance results for virtualization. TPCx-V and VMmark 3.x. the TPCx-V, that's where we saw PowerEdge R7525, R7515. They both had top scores in different categories there. That benchmark is great for looking at database workloads in particular, right? Running in virtualization settings. And then the VMmark 3.x was critical. We saw good, good results there for the 7525 and the R 7515 as well as the R 6525, in that one and that included, sorry, just checking notes to see what- >> Yeah, no, no, no, no, (indistinct) >> Included results for power performance, as I mentioned earlier, that's where we could see that. So we kind of, we saw this in a range of servers that included both 3rd gen AMD EPYC and newer 4th gen as well as I mentioned. The RAID controllers were critical in the TPCx-V. I don't think that came into play in the VM mark test, but they were definitely part of the TPCx-V benchmarks. So that's where the RAID controllers would make a difference, right? And in those tests, I think they're using PERC 11. So, you know, the newer PERC 12 controllers there, again we'd expect >> (indistinct) >> To see continued, you know, gains in newer benchmarks. That's what we'll be looking for over the next several months. >> Yeah. So I think if I've got my Dell nomenclature down, performance, no no, PowerEdge RAID Controller, is that right? >> Exactly, yeah, there you go. Right? >> With Broadcom, you know, powered by Broadcom. >> That's right. There you go. Yeah. Isn't the Dell naming scheme there PERC? >> Yeah, exactly, exactly. Back to your comment about power. So you've had a chance to take a pretty deep look at the latest stuff coming out. You're confident that- 'cause some of these servers are going to be more expensive than previous generation. Now a server is not a server is not a server, but some are awakening to the idea that there might be some sticker shock. You're confident that the bang for your buck, the bang for your kilowatt hour is actually going to be beneficial. We're actually making things better, faster, stronger, cheaper, more energy efficient. We're continuing on that curve? >> That's what I would expect to see, right. I mean, of course can't speak to to pricing without knowing, you know, where the dollars are going to land on the servers. But I would expect to see that because you're getting gains in a couple of ways. I mean, one, if the performance increases to the point where you can run more VMs, right? Get more performance out of your VMs and run more total VMs or more BDIs, then there's obviously a good, you know, payback on your investment there. And then as we were discussing earlier, just the power performance ratio, right? So if you're bringing down your power and cooling costs, if these machines are just more efficient overall, then you should see some gains there as well. So, you know, I think the key is looking at what's the total cost of ownership over, you know, a standard like a three-year period or something and what you're going to get out of it for your number of sessions, the performance for the sessions, and the overall efficiency of the machines. >> So just just to be clear with these Dell PowerEdge servers, you were able to validate world record performance. But this isn't, if you, if you look at CPU architecture, PCIe bus architecture, memory, you know, the class of memory, the class of RAID controller, the class of NIC. Those were not all state of the art in terms of at least what has been recently announced. Correct? >> Right. >> Because (indistinct) the PCI 4.0, So to your point- world records with that, you've got next-gen RAID controllers coming out, and NICs coming out. If the motherboard was PCIe 5, with commensurate memory, all of those things are getting better. >> Exactly, right. I mean you're, you're really you're just eliminating bandwidth constraints latency constraints, you know, all of that should be improved. NVMe, you know, just collectively all these things just open the doors, you know, letting more bandwidth through reducing all the latency. Those are, those are all pieces of the puzzle, right? That come together and it's all about finding the weakest link and eliminating it. And I think we're reaching the point where we're removing the biggest constraints from the systems. >> Okay. So I guess is it fair to summarize to say that with this infrastructure that you tested, you were able to set world records. This, during this year, I mean, over the next several months, things are just going to get faster and faster and faster and faster. >> That's what I would anticipate, exactly, right. If they're setting world records with these machines before some of the components are, you know, the absolute latest, it seems to me we're going to just see a continuing trend there, and more and more records should fall. So I'm really looking forward to seeing how that goes, 'cause it's already good and I think the return on investment is pretty good there. So I think it's only going to get better as these roll out. >> So let me ask you a question that's a little bit off topic. >> Okay. >> Kind of, you know, we see these gains, you know, we're all familiar with Moore's Law, we're familiar with, you know, the advancements in memory and bus architecture and everything else. We just covered SuperCompute 2022 in Dallas a couple of weeks ago. And it was fascinating talking to people about advances in AI that will be possible with new architectures. You know, most of these supercomputers that are running right now are n minus 1 or n minus 2 infrastructure, you know, they're, they're, they're PCI 3, right. And maybe two generations of processors old, because you don't just throw out a 100,000 CPU super computing environment every 18 months. It doesn't work that way. >> Exactly. >> Do you have an opinion on this question of the qualitative versus quantitative increase in computing moving forward? And, I mean, do you think that this new stuff that you're starting to do tests on is going to power a fundamental shift in computing? Or is it just going to be more consolidation, better power consumption? Do you think there's an inflection point coming? What do you think? >> That's a great question. That's a hard one to answer. I mean, it's probably a little bit of both, 'cause certainly there will be better consolidation, right? But I think that, you know, the systems, it works both ways. It just allows you to do more with less, right? And you can go either direction, you can do what you're doing now on fewer machines, you know, and get better value for it, or reduce your footprint. Or you can go the other way and say, wow, this lets us add more machines into the mix and take our our level of performance from here to here, right? So it just depends on what your focus is. Certainly with, with areas like, you know, HPC and AI and ML, having the ability to expand what you already are capable of by adding more machines that can do more is going to be your main concern. But if you're more like a small to medium sized business and the opportunity to do what you were doing on, on a much smaller footprint and for lower costs, that's really your goal, right? So I think you can use this in either direction and it should, should pay back in a lot of dividends. >> Yeah. Thanks for your thoughts. It's an interesting subject moving forward. You know, sometimes it's easy to get lost in the minutiae of the bits and bites and bobs of all the components we're studying, but they're powering something that that's going to effect effectively all of humanity as we move forward. So what else do we need to consider when it comes to what you've just validated in the virtualization testing? Anything else, anything we left out? >> I think we hit all the key points, or most of them it's, you know, really, it's just keeping in mind that it's all about the full system, the components not- you know, the processor is a obviously a key, but just removing blockages, right? Freeing up, getting rid of latency, improving bandwidth, all these things come to play. And then the power performance, as I said, I know I keep coming back to that but you know, we just, and a lot of what we work on, we just see that businesses, that's a really big concern for businesses and finding efficiency, right? And especially in an age of constrained budgets, that's a big deal. So, it's really important to have that power performance ratio. And that's one of the key things we saw that stood out to us in, in some of these benchmarks, so. >> Well, it's a big deal for me. >> It's all good. >> Yeah, I live in California and I know exactly how much I pay for a kilowatt hour of electricity. >> I bet, yeah. >> My friends in other places don't even know. So I totally understand the power constraint question. >> Yeah, it's not going to get better, so, anything you can do there, right? >> Yeah. Well Evan, this has been great. Thanks for sharing the results that Prowess has come up with, third party validation that, you know, even without the latest and greatest components in all categories, Dell PowerEdge servers are able to set world records. And I anticipate that those world records will be broken in 2023 and I expect that Prowess will be part of that process, So Thanks for that. For the rest of us- >> (indistinct) >> Here at theCUBE, I want to thank you for joining us. Stay tuned for continuing coverage of AMD's fourth generation EPYC launch, for myself and for Evan Touger. Thanks so much for joining us. (upbeat music)

>>When Oracle acquired my SQL via the Sun acquisition, nobody really thought the company would put much effort into the platform preferring to focus all the wood behind its leading Oracle database, Arrow pun intended. But two years ago, Oracle surprised many folks by announcing my SQL Heatwave a new database as a service with a massively parallel hybrid Columbia in Mary Mary architecture that brings together transactional and analytic data in a single platform. Welcome to our latest database, power panel on the cube. My name is Dave Ante, and today we're gonna discuss Oracle's MySQL Heat Wave with a who's who of cloud database industry analysts. Holgar Mueller is with Constellation Research. Mark Stammer is the Dragon Slayer and Wikibon contributor. And Ron Westfall is with Fu Chim Research. Gentlemen, welcome back to the Cube. Always a pleasure to have you on. Thanks for having us. Great to be here. >>So we've had a number of of deep dive interviews on the Cube with Nip and Aggarwal. You guys know him? He's a senior vice president of MySQL, Heatwave Development at Oracle. I think you just saw him at Oracle Cloud World and he's come on to describe this is gonna, I'll call it a shock and awe feature additions to to heatwave. You know, the company's clearly putting r and d into the platform and I think at at cloud world we saw like the fifth major release since 2020 when they first announced MySQL heat wave. So just listing a few, they, they got, they taken, brought in analytics machine learning, they got autopilot for machine learning, which is automation onto the basic o l TP functionality of the database. And it's been interesting to watch Oracle's converge database strategy. We've contrasted that amongst ourselves. Love to get your thoughts on Amazon's get the right tool for the right job approach. >>Are they gonna have to change that? You know, Amazon's got the specialized databases, it's just, you know, the both companies are doing well. It just shows there are a lot of ways to, to skin a cat cuz you see some traction in the market in, in both approaches. So today we're gonna focus on the latest heat wave announcements and we're gonna talk about multi-cloud with a native MySQL heat wave implementation, which is available on aws MySQL heat wave for Azure via the Oracle Microsoft interconnect. This kind of cool hybrid action that they got going. Sometimes we call it super cloud. And then we're gonna dive into my SQL Heatwave Lake house, which allows users to process and query data across MyQ databases as heatwave databases, as well as object stores. So, and then we've got, heatwave has been announced on AWS and, and, and Azure, they're available now and Lake House I believe is in beta and I think it's coming out the second half of next year. So again, all of our guests are fresh off of Oracle Cloud world in Las Vegas. So they got the latest scoop. Guys, I'm done talking. Let's get into it. Mark, maybe you could start us off, what's your opinion of my SQL Heatwaves competitive position? When you think about what AWS is doing, you know, Google is, you know, we heard Google Cloud next recently, we heard about all their data innovations. You got, obviously Azure's got a big portfolio, snowflakes doing well in the market. What's your take? >>Well, first let's look at it from the point of view that AWS is the market leader in cloud and cloud services. They own somewhere between 30 to 50% depending on who you read of the market. And then you have Azure as number two and after that it falls off. There's gcp, Google Cloud platform, which is further way down the list and then Oracle and IBM and Alibaba. So when you look at AWS and you and Azure saying, hey, these are the market leaders in the cloud, then you start looking at it and saying, if I am going to provide a service that competes with the service they have, if I can make it available in their cloud, it means that I can be more competitive. And if I'm compelling and compelling means at least twice the performance or functionality or both at half the price, I should be able to gain market share. >>And that's what Oracle's done. They've taken a superior product in my SQL heat wave, which is faster, lower cost does more for a lot less at the end of the day and they make it available to the users of those clouds. You avoid this little thing called egress fees, you avoid the issue of having to migrate from one cloud to another and suddenly you have a very compelling offer. So I look at what Oracle's doing with MyQ and it feels like, I'm gonna use a word term, a flanking maneuver to their competition. They're offering a better service on their platforms. >>All right, so thank you for that. Holger, we've seen this sort of cadence, I sort of referenced it up front a little bit and they sat on MySQL for a decade, then all of a sudden we see this rush of announcements. Why did it take so long? And and more importantly is Oracle, are they developing the right features that cloud database customers are looking for in your view? >>Yeah, great question, but first of all, in your interview you said it's the edit analytics, right? Analytics is kind of like a marketing buzzword. Reports can be analytics, right? The interesting thing, which they did, the first thing they, they, they crossed the chasm between OTP and all up, right? In the same database, right? So major engineering feed very much what customers want and it's all about creating Bellevue for customers, which, which I think is the part why they go into the multi-cloud and why they add these capabilities. And they certainly with the AI capabilities, it's kind of like getting it into an autonomous field, self-driving field now with the lake cost capabilities and meeting customers where they are, like Mark has talked about the e risk costs in the cloud. So that that's a significant advantage, creating value for customers and that's what at the end of the day matters. >>And I believe strongly that long term it's gonna be ones who create better value for customers who will get more of their money From that perspective, why then take them so long? I think it's a great question. I think largely he mentioned the gentleman Nial, it's largely to who leads a product. I used to build products too, so maybe I'm a little fooling myself here, but that made the difference in my view, right? So since he's been charged, he's been building things faster than the rest of the competition, than my SQL space, which in hindsight we thought was a hot and smoking innovation phase. It kind of like was a little self complacent when it comes to the traditional borders of where, where people think, where things are separated between OTP and ola or as an example of adjacent support, right? Structured documents, whereas unstructured documents or databases and all of that has been collapsed and brought together for building a more powerful database for customers. >>So I mean it's certainly, you know, when, when Oracle talks about the competitors, you know, the competitors are in the, I always say they're, if the Oracle talks about you and knows you're doing well, so they talk a lot about aws, talk a little bit about Snowflake, you know, sort of Google, they have partnerships with Azure, but, but in, so I'm presuming that the response in MySQL heatwave was really in, in response to what they were seeing from those big competitors. But then you had Maria DB coming out, you know, the day that that Oracle acquired Sun and, and launching and going after the MySQL base. So it's, I'm, I'm interested and we'll talk about this later and what you guys think AWS and Google and Azure and Snowflake and how they're gonna respond. But, but before I do that, Ron, I want to ask you, you, you, you can get, you know, pretty technical and you've probably seen the benchmarks. >>I know you have Oracle makes a big deal out of it, publishes its benchmarks, makes some transparent on on GI GitHub. Larry Ellison talked about this in his keynote at Cloud World. What are the benchmarks show in general? I mean, when you, when you're new to the market, you gotta have a story like Mark was saying, you gotta be two x you know, the performance at half the cost or you better be or you're not gonna get any market share. So, and, and you know, oftentimes companies don't publish market benchmarks when they're leading. They do it when they, they need to gain share. So what do you make of the benchmarks? Have their, any results that were surprising to you? Have, you know, they been challenged by the competitors. Is it just a bunch of kind of desperate bench marketing to make some noise in the market or you know, are they real? What's your view? >>Well, from my perspective, I think they have the validity. And to your point, I believe that when it comes to competitor responses, that has not really happened. Nobody has like pulled down the information that's on GitHub and said, Oh, here are our price performance results. And they counter oracles. In fact, I think part of the reason why that hasn't happened is that there's the risk if Oracle's coming out and saying, Hey, we can deliver 17 times better query performance using our capabilities versus say, Snowflake when it comes to, you know, the Lakehouse platform and Snowflake turns around and says it's actually only 15 times better during performance, that's not exactly an effective maneuver. And so I think this is really to oracle's credit and I think it's refreshing because these differentiators are significant. We're not talking, you know, like 1.2% differences. We're talking 17 fold differences, we're talking six fold differences depending on, you know, where the spotlight is being shined and so forth. >>And so I think this is actually something that is actually too good to believe initially at first blush. If I'm a cloud database decision maker, I really have to prioritize this. I really would know, pay a lot more attention to this. And that's why I posed the question to Oracle and others like, okay, if these differentiators are so significant, why isn't the needle moving a bit more? And it's for, you know, some of the usual reasons. One is really deep discounting coming from, you know, the other players that's really kind of, you know, marketing 1 0 1, this is something you need to do when there's a real competitive threat to keep, you know, a customer in your own customer base. Plus there is the usual fear and uncertainty about moving from one platform to another. But I think, you know, the traction, the momentum is, is shifting an Oracle's favor. I think we saw that in the Q1 efforts, for example, where Oracle cloud grew 44% and that it generated, you know, 4.8 billion and revenue if I recall correctly. And so, so all these are demonstrating that's Oracle is making, I think many of the right moves, publishing these figures for anybody to look at from their own perspective is something that is, I think, good for the market and I think it's just gonna continue to pay dividends for Oracle down the horizon as you know, competition intens plots. So if I were in, >>Dave, can I, Dave, can I interject something and, and what Ron just said there? Yeah, please go ahead. A couple things here, one discounting, which is a common practice when you have a real threat, as Ron pointed out, isn't going to help much in this situation simply because you can't discount to the point where you improve your performance and the performance is a huge differentiator. You may be able to get your price down, but the problem that most of them have is they don't have an integrated product service. They don't have an integrated O L T P O L A P M L N data lake. Even if you cut out two of them, they don't have any of them integrated. They have multiple services that are required separate integration and that can't be overcome with discounting. And the, they, you have to pay for each one of these. And oh, by the way, as you grow, the discounts go away. So that's a, it's a minor important detail. >>So, so that's a TCO question mark, right? And I know you look at this a lot, if I had that kind of price performance advantage, I would be pounding tco, especially if I need two separate databases to do the job. That one can do, that's gonna be, the TCO numbers are gonna be off the chart or maybe down the chart, which you want. Have you looked at this and how does it compare with, you know, the big cloud guys, for example, >>I've looked at it in depth, in fact, I'm working on another TCO on this arena, but you can find it on Wiki bod in which I compared TCO for MySEQ Heat wave versus Aurora plus Redshift plus ML plus Blue. I've compared it against gcps services, Azure services, Snowflake with other services. And there's just no comparison. The, the TCO differences are huge. More importantly, thefor, the, the TCO per performance is huge. We're talking in some cases multiple orders of magnitude, but at least an order of magnitude difference. So discounting isn't gonna help you much at the end of the day, it's only going to lower your cost a little, but it doesn't improve the automation, it doesn't improve the performance, it doesn't improve the time to insight, it doesn't improve all those things that you want out of a database or multiple databases because you >>Can't discount yourself to a higher value proposition. >>So what about, I wonder ho if you could chime in on the developer angle. You, you followed that, that market. How do these innovations from heatwave, I think you used the term developer velocity. I've heard you used that before. Yeah, I mean, look, Oracle owns Java, okay, so it, it's, you know, most popular, you know, programming language in the world, blah, blah blah. But it does it have the, the minds and hearts of, of developers and does, where does heatwave fit into that equation? >>I think heatwave is gaining quickly mindshare on the developer side, right? It's not the traditional no sequel database which grew up, there's a traditional mistrust of oracles to developers to what was happening to open source when gets acquired. Like in the case of Oracle versus Java and where my sql, right? And, but we know it's not a good competitive strategy to, to bank on Oracle screwing up because it hasn't worked not on Java known my sequel, right? And for developers, it's, once you get to know a technology product and you can do more, it becomes kind of like a Swiss army knife and you can build more use case, you can build more powerful applications. That's super, super important because you don't have to get certified in multiple databases. You, you are fast at getting things done, you achieve fire, develop velocity, and the managers are happy because they don't have to license more things, send you to more trainings, have more risk of something not being delivered, right? >>So it's really the, we see the suite where this best of breed play happening here, which in general was happening before already with Oracle's flagship database. Whereas those Amazon as an example, right? And now the interesting thing is every step away Oracle was always a one database company that can be only one and they're now generally talking about heat web and that two database company with different market spaces, but same value proposition of integrating more things very, very quickly to have a universal database that I call, they call the converge database for all the needs of an enterprise to run certain application use cases. And that's what's attractive to developers. >>It's, it's ironic isn't it? I mean I, you know, the rumor was the TK Thomas Curian left Oracle cuz he wanted to put Oracle database on other clouds and other places. And maybe that was the rift. Maybe there was, I'm sure there was other things, but, but Oracle clearly is now trying to expand its Tam Ron with, with heatwave into aws, into Azure. How do you think Oracle's gonna do, you were at a cloud world, what was the sentiment from customers and the independent analyst? Is this just Oracle trying to screw with the competition, create a little diversion? Or is this, you know, serious business for Oracle? What do you think? >>No, I think it has lakes. I think it's definitely, again, attriting to Oracle's overall ability to differentiate not only my SQL heat wave, but its overall portfolio. And I think the fact that they do have the alliance with the Azure in place, that this is definitely demonstrating their commitment to meeting the multi-cloud needs of its customers as well as what we pointed to in terms of the fact that they're now offering, you know, MySQL capabilities within AWS natively and that it can now perform AWS's own offering. And I think this is all demonstrating that Oracle is, you know, not letting up, they're not resting on its laurels. That's clearly we are living in a multi-cloud world, so why not just make it more easy for customers to be able to use cloud databases according to their own specific, specific needs. And I think, you know, to holder's point, I think that definitely lines with being able to bring on more application developers to leverage these capabilities. >>I think one important announcement that's related to all this was the JSON relational duality capabilities where now it's a lot easier for application developers to use a language that they're very familiar with a JS O and not have to worry about going into relational databases to store their J S O N application coding. So this is, I think an example of the innovation that's enhancing the overall Oracle portfolio and certainly all the work with machine learning is definitely paying dividends as well. And as a result, I see Oracle continue to make these inroads that we pointed to. But I agree with Mark, you know, the short term discounting is just a stall tag. This is not denying the fact that Oracle is being able to not only deliver price performance differentiators that are dramatic, but also meeting a wide range of needs for customers out there that aren't just limited device performance consideration. >>Being able to support multi-cloud according to customer needs. Being able to reach out to the application developer community and address a very specific challenge that has plagued them for many years now. So bring it all together. Yeah, I see this as just enabling Oracles who ring true with customers. That the customers that were there were basically all of them, even though not all of them are going to be saying the same things, they're all basically saying positive feedback. And likewise, I think the analyst community is seeing this. It's always refreshing to be able to talk to customers directly and at Oracle cloud there was a litany of them and so this is just a difference maker as well as being able to talk to strategic partners. The nvidia, I think partnerships also testament to Oracle's ongoing ability to, you know, make the ecosystem more user friendly for the customers out there. >>Yeah, it's interesting when you get these all in one tools, you know, the Swiss Army knife, you expect that it's not able to be best of breed. That's the kind of surprising thing that I'm hearing about, about heatwave. I want to, I want to talk about Lake House because when I think of Lake House, I think data bricks, and to my knowledge data bricks hasn't been in the sites of Oracle yet. Maybe they're next, but, but Oracle claims that MySQL, heatwave, Lakehouse is a breakthrough in terms of capacity and performance. Mark, what are your thoughts on that? Can you double click on, on Lakehouse Oracle's claims for things like query performance and data loading? What does it mean for the market? Is Oracle really leading in, in the lake house competitive landscape? What are your thoughts? >>Well, but name in the game is what are the problems you're solving for the customer? More importantly, are those problems urgent or important? If they're urgent, customers wanna solve 'em. Now if they're important, they might get around to them. So you look at what they're doing with Lake House or previous to that machine learning or previous to that automation or previous to that O L A with O ltp and they're merging all this capability together. If you look at Snowflake or data bricks, they're tacking one problem. You look at MyQ heat wave, they're tacking multiple problems. So when you say, yeah, their queries are much better against the lake house in combination with other analytics in combination with O ltp and the fact that there are no ETLs. So you're getting all this done in real time. So it's, it's doing the query cross, cross everything in real time. >>You're solving multiple user and developer problems, you're increasing their ability to get insight faster, you're having shorter response times. So yeah, they really are solving urgent problems for customers. And by putting it where the customer lives, this is the brilliance of actually being multicloud. And I know I'm backing up here a second, but by making it work in AWS and Azure where people already live, where they already have applications, what they're saying is, we're bringing it to you. You don't have to come to us to get these, these benefits, this value overall, I think it's a brilliant strategy. I give Nip and Argo wallet a huge, huge kudos for what he's doing there. So yes, what they're doing with the lake house is going to put notice on data bricks and Snowflake and everyone else for that matter. Well >>Those are guys that whole ago you, you and I have talked about this. Those are, those are the guys that are doing sort of the best of breed. You know, they're really focused and they, you know, tend to do well at least out of the gate. Now you got Oracle's converged philosophy, obviously with Oracle database. We've seen that now it's kicking in gear with, with heatwave, you know, this whole thing of sweets versus best of breed. I mean the long term, you know, customers tend to migrate towards suite, but the new shiny toy tends to get the growth. How do you think this is gonna play out in cloud database? >>Well, it's the forever never ending story, right? And in software right suite, whereas best of breed and so far in the long run suites have always won, right? So, and sometimes they struggle again because the inherent problem of sweets is you build something larger, it has more complexity and that means your cycles to get everything working together to integrate the test that roll it out, certify whatever it is, takes you longer, right? And that's not the case. It's a fascinating part of what the effort around my SQL heat wave is that the team is out executing the previous best of breed data, bringing us something together. Now if they can maintain that pace, that's something to to, to be seen. But it, the strategy, like what Mark was saying, bring the software to the data is of course interesting and unique and totally an Oracle issue in the past, right? >>Yeah. But it had to be in your database on oci. And but at, that's an interesting part. The interesting thing on the Lake health side is, right, there's three key benefits of a lakehouse. The first one is better reporting analytics, bring more rich information together, like make the, the, the case for silicon angle, right? We want to see engagements for this video, we want to know what's happening. That's a mixed transactional video media use case, right? Typical Lakehouse use case. The next one is to build more rich applications, transactional applications which have video and these elements in there, which are the engaging one. And the third one, and that's where I'm a little critical and concerned, is it's really the base platform for artificial intelligence, right? To run deep learning to run things automatically because they have all the data in one place can create in one way. >>And that's where Oracle, I know that Ron talked about Invidia for a moment, but that's where Oracle doesn't have the strongest best story. Nonetheless, the two other main use cases of the lake house are very strong, very well only concern is four 50 terabyte sounds long. It's an arbitrary limitation. Yeah, sounds as big. So for the start, and it's the first word, they can make that bigger. You don't want your lake house to be limited and the terabyte sizes or any even petabyte size because you want to have the certainty. I can put everything in there that I think it might be relevant without knowing what questions to ask and query those questions. >>Yeah. And you know, in the early days of no schema on right, it just became a mess. But now technology has evolved to allow us to actually get more value out of that data. Data lake. Data swamp is, you know, not much more, more, more, more logical. But, and I want to get in, in a moment, I want to come back to how you think the competitors are gonna respond. Are they gonna have to sort of do a more of a converged approach? AWS in particular? But before I do, Ron, I want to ask you a question about autopilot because I heard Larry Ellison's keynote and he was talking about how, you know, most security issues are human errors with autonomy and autonomous database and things like autopilot. We take care of that. It's like autonomous vehicles, they're gonna be safer. And I went, well maybe, maybe someday. So Oracle really tries to emphasize this, that every time you see an announcement from Oracle, they talk about new, you know, autonomous capabilities. It, how legit is it? Do people care? What about, you know, what's new for heatwave Lakehouse? How much of a differentiator, Ron, do you really think autopilot is in this cloud database space? >>Yeah, I think it will definitely enhance the overall proposition. I don't think people are gonna buy, you know, lake house exclusively cause of autopilot capabilities, but when they look at the overall picture, I think it will be an added capability bonus to Oracle's benefit. And yeah, I think it's kind of one of these age old questions, how much do you automate and what is the bounce to strike? And I think we all understand with the automatic car, autonomous car analogy that there are limitations to being able to use that. However, I think it's a tool that basically every organization out there needs to at least have or at least evaluate because it goes to the point of it helps with ease of use, it helps make automation more balanced in terms of, you know, being able to test, all right, let's automate this process and see if it works well, then we can go on and switch on on autopilot for other processes. >>And then, you know, that allows, for example, the specialists to spend more time on business use cases versus, you know, manual maintenance of, of the cloud database and so forth. So I think that actually is a, a legitimate value proposition. I think it's just gonna be a case by case basis. Some organizations are gonna be more aggressive with putting automation throughout their processes throughout their organization. Others are gonna be more cautious. But it's gonna be, again, something that will help the overall Oracle proposition. And something that I think will be used with caution by many organizations, but other organizations are gonna like, hey, great, this is something that is really answering a real problem. And that is just easing the use of these databases, but also being able to better handle the automation capabilities and benefits that come with it without having, you know, a major screwup happened and the process of transitioning to more automated capabilities. >>Now, I didn't attend cloud world, it's just too many red eyes, you know, recently, so I passed. But one of the things I like to do at those events is talk to customers, you know, in the spirit of the truth, you know, they, you know, you'd have the hallway, you know, track and to talk to customers and they say, Hey, you know, here's the good, the bad and the ugly. So did you guys, did you talk to any customers my SQL Heatwave customers at, at cloud world? And and what did you learn? I don't know, Mark, did you, did you have any luck and, and having some, some private conversations? >>Yeah, I had quite a few private conversations. The one thing before I get to that, I want disagree with one point Ron made, I do believe there are customers out there buying the heat wave service, the MySEQ heat wave server service because of autopilot. Because autopilot is really revolutionary in many ways in the sense for the MySEQ developer in that it, it auto provisions, it auto parallel loads, IT auto data places it auto shape predictions. It can tell you what machine learning models are going to tell you, gonna give you your best results. And, and candidly, I've yet to meet a DBA who didn't wanna give up pedantic tasks that are pain in the kahoo, which they'd rather not do and if it's long as it was done right for them. So yes, I do think people are buying it because of autopilot and that's based on some of the conversations I had with customers at Oracle Cloud World. >>In fact, it was like, yeah, that's great, yeah, we get fantastic performance, but this really makes my life easier and I've yet to meet a DBA who didn't want to make their life easier. And it does. So yeah, I've talked to a few of them. They were excited. I asked them if they ran into any bugs, were there any difficulties in moving to it? And the answer was no. In both cases, it's interesting to note, my sequel is the most popular database on the planet. Well, some will argue that it's neck and neck with SQL Server, but if you add in Mariah DB and ProCon db, which are forks of MySQL, then yeah, by far and away it's the most popular. And as a result of that, everybody for the most part has typically a my sequel database somewhere in their organization. So this is a brilliant situation for anybody going after MyQ, but especially for heat wave. And the customers I talk to love it. I didn't find anybody complaining about it. And >>What about the migration? We talked about TCO earlier. Did your t does your TCO analysis include the migration cost or do you kind of conveniently leave that out or what? >>Well, when you look at migration costs, there are different kinds of migration costs. By the way, the worst job in the data center is the data migration manager. Forget it, no other job is as bad as that one. You get no attaboys for doing it. Right? And then when you screw up, oh boy. So in real terms, anything that can limit data migration is a good thing. And when you look at Data Lake, that limits data migration. So if you're already a MySEQ user, this is a pure MySQL as far as you're concerned. It's just a, a simple transition from one to the other. You may wanna make sure nothing broke and every you, all your tables are correct and your schema's, okay, but it's all the same. So it's a simple migration. So it's pretty much a non-event, right? When you migrate data from an O LTP to an O L A P, that's an ETL and that's gonna take time. >>But you don't have to do that with my SQL heat wave. So that's gone when you start talking about machine learning, again, you may have an etl, you may not, depending on the circumstances, but again, with my SQL heat wave, you don't, and you don't have duplicate storage, you don't have to copy it from one storage container to another to be able to be used in a different database, which by the way, ultimately adds much more cost than just the other service. So yeah, I looked at the migration and again, the users I talked to said it was a non-event. It was literally moving from one physical machine to another. If they had a new version of MySEQ running on something else and just wanted to migrate it over or just hook it up or just connect it to the data, it worked just fine. >>Okay, so every day it sounds like you guys feel, and we've certainly heard this, my colleague David Foyer, the semi-retired David Foyer was always very high on heatwave. So I think you knows got some real legitimacy here coming from a standing start, but I wanna talk about the competition, how they're likely to respond. I mean, if your AWS and you got heatwave is now in your cloud, so there's some good aspects of that. The database guys might not like that, but the infrastructure guys probably love it. Hey, more ways to sell, you know, EC two and graviton, but you're gonna, the database guys in AWS are gonna respond. They're gonna say, Hey, we got Redshift, we got aqua. What's your thoughts on, on not only how that's gonna resonate with customers, but I'm interested in what you guys think will a, I never say never about aws, you know, and are they gonna try to build, in your view a converged Oola and o LTP database? You know, Snowflake is taking an ecosystem approach. They've added in transactional capabilities to the portfolio so they're not standing still. What do you guys see in the competitive landscape in that regard going forward? Maybe Holger, you could start us off and anybody else who wants to can chime in, >>Happy to, you mentioned Snowflake last, we'll start there. I think Snowflake is imitating that strategy, right? That building out original data warehouse and the clouds tasking project to really proposition to have other data available there because AI is relevant for everybody. Ultimately people keep data in the cloud for ultimately running ai. So you see the same suite kind of like level strategy, it's gonna be a little harder because of the original positioning. How much would people know that you're doing other stuff? And I just, as a former developer manager of developers, I just don't see the speed at the moment happening at Snowflake to become really competitive to Oracle. On the flip side, putting my Oracle hat on for a moment back to you, Mark and Iran, right? What could Oracle still add? Because the, the big big things, right? The traditional chasms in the database world, they have built everything, right? >>So I, I really scratched my hat and gave Nipon a hard time at Cloud world say like, what could you be building? Destiny was very conservative. Let's get the Lakehouse thing done, it's gonna spring next year, right? And the AWS is really hard because AWS value proposition is these small innovation teams, right? That they build two pizza teams, which can be fit by two pizzas, not large teams, right? And you need suites to large teams to build these suites with lots of functionalities to make sure they work together. They're consistent, they have the same UX on the administration side, they can consume the same way, they have the same API registry, can't even stop going where the synergy comes to play over suite. So, so it's gonna be really, really hard for them to change that. But AWS super pragmatic. They're always by themselves that they'll listen to customers if they learn from customers suite as a proposition. I would not be surprised if AWS trying to bring things closer together, being morely together. >>Yeah. Well how about, can we talk about multicloud if, if, again, Oracle is very on on Oracle as you said before, but let's look forward, you know, half a year or a year. What do you think about Oracle's moves in, in multicloud in terms of what kind of penetration they're gonna have in the marketplace? You saw a lot of presentations at at cloud world, you know, we've looked pretty closely at the, the Microsoft Azure deal. I think that's really interesting. I've, I've called it a little bit of early days of a super cloud. What impact do you think this is gonna have on, on the marketplace? But, but both. And think about it within Oracle's customer base, I have no doubt they'll do great there. But what about beyond its existing install base? What do you guys think? >>Ryan, do you wanna jump on that? Go ahead. Go ahead Ryan. No, no, no, >>That's an excellent point. I think it aligns with what we've been talking about in terms of Lakehouse. I think Lake House will enable Oracle to pull more customers, more bicycle customers onto the Oracle platforms. And I think we're seeing all the signs pointing toward Oracle being able to make more inroads into the overall market. And that includes garnishing customers from the leaders in, in other words, because they are, you know, coming in as a innovator, a an alternative to, you know, the AWS proposition, the Google cloud proposition that they have less to lose and there's a result they can really drive the multi-cloud messaging to resonate with not only their existing customers, but also to be able to, to that question, Dave's posing actually garnish customers onto their platform. And, and that includes naturally my sequel but also OCI and so forth. So that's how I'm seeing this playing out. I think, you know, again, Oracle's reporting is indicating that, and I think what we saw, Oracle Cloud world is definitely validating the idea that Oracle can make more waves in the overall market in this regard. >>You know, I, I've floated this idea of Super cloud, it's kind of tongue in cheek, but, but there, I think there is some merit to it in terms of building on top of hyperscale infrastructure and abstracting some of the, that complexity. And one of the things that I'm most interested in is industry clouds and an Oracle acquisition of Cerner. I was struck by Larry Ellison's keynote, it was like, I don't know, an hour and a half and an hour and 15 minutes was focused on healthcare transformation. Well, >>So vertical, >>Right? And so, yeah, so you got Oracle's, you know, got some industry chops and you, and then you think about what they're building with, with not only oci, but then you got, you know, MyQ, you can now run in dedicated regions. You got ADB on on Exadata cloud to customer, you can put that OnPrem in in your data center and you look at what the other hyperscalers are, are doing. I I say other hyperscalers, I've always said Oracle's not really a hyperscaler, but they got a cloud so they're in the game. But you can't get, you know, big query OnPrem, you look at outposts, it's very limited in terms of, you know, the database support and again, that that will will evolve. But now you got Oracle's got, they announced Alloy, we can white label their cloud. So I'm interested in what you guys think about these moves, especially the industry cloud. We see, you know, Walmart is doing sort of their own cloud. You got Goldman Sachs doing a cloud. Do you, you guys, what do you think about that and what role does Oracle play? Any thoughts? >>Yeah, let me lemme jump on that for a moment. Now, especially with the MyQ, by making that available in multiple clouds, what they're doing is this follows the philosophy they've had the past with doing cloud, a customer taking the application and the data and putting it where the customer lives. If it's on premise, it's on premise. If it's in the cloud, it's in the cloud. By making the mice equal heat wave, essentially a plug compatible with any other mice equal as far as your, your database is concern and then giving you that integration with O L A P and ML and Data Lake and everything else, then what you've got is a compelling offering. You're making it easier for the customer to use. So I look the difference between MyQ and the Oracle database, MyQ is going to capture market more market share for them. >>You're not gonna find a lot of new users for the Oracle debate database. Yeah, there are always gonna be new users, don't get me wrong, but it's not gonna be a huge growth. Whereas my SQL heatwave is probably gonna be a major growth engine for Oracle going forward. Not just in their own cloud, but in AWS and in Azure and on premise over time that eventually it'll get there. It's not there now, but it will, they're doing the right thing on that basis. They're taking the services and when you talk about multicloud and making them available where the customer wants them, not forcing them to go where you want them, if that makes sense. And as far as where they're going in the future, I think they're gonna take a page outta what they've done with the Oracle database. They'll add things like JSON and XML and time series and spatial over time they'll make it a, a complete converged database like they did with the Oracle database. The difference being Oracle database will scale bigger and will have more transactions and be somewhat faster. And my SQL will be, for anyone who's not on the Oracle database, they're, they're not stupid, that's for sure. >>They've done Jason already. Right. But I give you that they could add graph and time series, right. Since eat with, Right, Right. Yeah, that's something absolutely right. That's, that's >>A sort of a logical move, right? >>Right. But that's, that's some kid ourselves, right? I mean has worked in Oracle's favor, right? 10 x 20 x, the amount of r and d, which is in the MyQ space, has been poured at trying to snatch workloads away from Oracle by starting with IBM 30 years ago, 20 years ago, Microsoft and, and, and, and didn't work, right? Database applications are extremely sticky when they run, you don't want to touch SIM and grow them, right? So that doesn't mean that heat phase is not an attractive offering, but it will be net new things, right? And what works in my SQL heat wave heat phases favor a little bit is it's not the massive enterprise applications which have like we the nails like, like you might be only running 30% or Oracle, but the connections and the interfaces into that is, is like 70, 80% of your enterprise. >>You take it out and it's like the spaghetti ball where you say, ah, no I really don't, don't want to do all that. Right? You don't, don't have that massive part with the equals heat phase sequel kind of like database which are more smaller tactical in comparison, but still I, I don't see them taking so much share. They will be growing because of a attractive value proposition quickly on the, the multi-cloud, right? I think it's not really multi-cloud. If you give people the chance to run your offering on different clouds, right? You can run it there. The multi-cloud advantages when the Uber offering comes out, which allows you to do things across those installations, right? I can migrate data, I can create data across something like Google has done with B query Omni, I can run predictive models or even make iron models in different place and distribute them, right? And Oracle is paving the road for that, but being available on these clouds. But the multi-cloud capability of database which knows I'm running on different clouds that is still yet to be built there. >>Yeah. And >>That the problem with >>That, that's the super cloud concept that I flowed and I I've always said kinda snowflake with a single global instance is sort of, you know, headed in that direction and maybe has a league. What's the issue with that mark? >>Yeah, the problem with the, with that version, the multi-cloud is clouds to charge egress fees. As long as they charge egress fees to move data between clouds, it's gonna make it very difficult to do a real multi-cloud implementation. Even Snowflake, which runs multi-cloud, has to pass out on the egress fees of their customer when data moves between clouds. And that's really expensive. I mean there, there is one customer I talked to who is beta testing for them, the MySQL heatwave and aws. The only reason they didn't want to do that until it was running on AWS is the egress fees were so great to move it to OCI that they couldn't afford it. Yeah. Egress fees are the big issue but, >>But Mark the, the point might be you might wanna root query and only get the results set back, right was much more tinier, which been the answer before for low latency between the class A problem, which we sometimes still have but mostly don't have. Right? And I think in general this with fees coming down based on the Oracle general E with fee move and it's very hard to justify those, right? But, but it's, it's not about moving data as a multi-cloud high value use case. It's about doing intelligent things with that data, right? Putting into other places, replicating it, what I'm saying the same thing what you said before, running remote queries on that, analyzing it, running AI on it, running AI models on that. That's the interesting thing. Cross administered in the same way. Taking things out, making sure compliance happens. Making sure when Ron says I don't want to be American anymore, I want to be in the European cloud that is gets migrated, right? So tho those are the interesting value use case which are really, really hard for enterprise to program hand by hand by developers and they would love to have out of the box and that's yet the innovation to come to, we have to come to see. But the first step to get there is that your software runs in multiple clouds and that's what Oracle's doing so well with my SQL >>Guys. Amazing. >>Go ahead. Yeah. >>Yeah. >>For example, >>Amazing amount of data knowledge and, and brain power in this market. Guys, I really want to thank you for coming on to the cube. Ron Holger. Mark, always a pleasure to have you on. Really appreciate your time. >>Well all the last names we're very happy for Romanic last and moderator. Thanks Dave for moderating us. All right, >>We'll see. We'll see you guys around. Safe travels to all and thank you for watching this power panel, The Truth About My SQL Heat Wave on the cube. Your leader in enterprise and emerging tech coverage.

>> Male: TheCUBE presents, UIPATH, Forward 5 brought to you by, UIPATH. >> Okay the party has started here at forward 5 UIPATH big customer event if you're watching the cube. We're wrapping up day one with the co-CE0 segment. Daniel Dines is here. He's the founder and Co-CEO of UIPATH and Rob Enslin, is co-CEO. Gents, great to see you. Thanks for spending some time with us. I know you're super busy. >> Thanks Dave. >> So I've been looking forward to this. Daniel you know I've followed the company for a long time. The really interesting path you took, to get to where you are today. How did you guys meet? And why did you decide to hire Rob? >> Male: (laughs) >> Rob: Well let me start. I uh, I was looking for a partner. Actually, in our work to your stand here, we are talking about how, how you feel in this job. You feel so alone. Because you are the center of all pressure points. And having a partner, having someone that has your back, it's kind of awesome. So I was looking for a partner. And our current friend, Carl Escenbach, he introduced us to each other, and we instantly clicked. And this is the type of job where it's uh either work well or it doesn't. It cannot be anything in the middle. >> Right, okay with Carl, we know Carl well. Awesome operator. Knows the business super well. So Rob, what attracted you to UIPATH? You had a great situation at google. You guys were growing like crazy. Why did you decide to come here? What did you see that attracted you? >> Yeah you know when I, when I went to google, I went to google because I really believed that data and AI was necessary for companies. And business is to be competitive in the future. And we did some great stuff at google cloud in the 3 years. But I knew UIPATH from a couple of years ago when they were mainly a RPA space. And I just felt that there was a place in time when automation was going expand. And as I sat down with Carl a couple of times, spoke to carl. And then I sat down with Daniel, I knew that there was something special with UIPATH, that could be a generational opportunity. Not any for myself but for the company in the future. And then I, you know I got to know Daniel. And at this stage of my career I was like, I'm pretty fussy about what I want to do and what I want and where I want to go. First of all, I want to go to a company that had great product, had a great culture, and I wanted to work with somebody that we could shake the future together and you know, Daniel and I just hit it off from the very first time we met. He got to meet my family, my dogs and we did the whole, we did the whole courting thing before we actually decided this was going to be a good thing for both of us. >> Dave: That's good. >> Rob: Yeah. >> Dave: You got to meet the family. That's very good. >> We just had, John Furrier and I just had, Mohit Aron and Sanjay Poonen into out studio. Cause Mohit, you know, formal google. Long time. And they decided to kind of split duties. Mohit's going into product, he didn't keep his CEO title. He walked. How are you guys splitting you time? What are each of you going to, responsible for? >> Daniel: Well its, its kind of similar. On a day by day operation I, I rely heavily on Rob. We do it together. Strategic decisions about the company's destiny. I'm doing mostly the product these days. Which is a big relief for me. And I think we also split a bit of customers visit. Which is great. I still enjoy meeting customers. I need, customers are food for my cause. >> Dave: (laughs) yeah and your awesome product visionary. You've been there since day one. Now Rob, you said in the key note today that you've seen around about a hundred customers. You've transverse the world. What did you learn from them that informed you? That gave you confidence that the the move to the internet platform, even though you had already started that. >> Male: Yeah. >> But you're really doubling down on that >> Rob: You know when I... >> from a stand point. >> Rob: You know Dave, when you think about it, like I was, I was so impressed that Daniel had the vision to create a platform 3 years ago. >> Dave: Yeah. >> All right. And as we went around the world. As I went around the world, and it was one of the very first things I've seen. I've got to understand how customers see UIPATH, from their advantage point. What are they looking for from us? Why is this company, why doe customers like this company so much? And as I went around the world. I went to Asia a couple, I went to Asia, Australia, Singapore, Japan. I was in Europe twice. We did the trip together. We went to visit customers. And it was very much the same thing. Helps us expand automation faster. And we are so surprise, at the break of your platform. We never knew that. And so it kind of just had, for me, it was conviction. It's like, this walls is the right decision you've made. There's so much opportunity there. And that's, you know that's kind of what I've learned through the last four five months. >> Dave: Now as you know Daniel, I've written a lot about your company. One of the things I've said is that, that start ups, if I can call you that back pre-IPO, typically don't have as much international exposure as UIPATH had. I mean you sort of, you sort of started as an international company and became more US centric. You said, in the, in the key note today, you're talking to Ray Wong about people may don't understand that challenges of FX. Point being, when you convert international dollars into US dollars there are less of them cause the dollars stronger. But still, I've always felt like that international footprint is an advantage. Rob you came from SAP, you know, again European based company. I don't, (stutters), do you regret that? Now? I mean I know it's technical, I'm sure you don't, but talk about that sort of international exposure? Why that's a long term benefit. >> Well, you, first of all, you expand faster. I think we expanded faster than our competition because our global footprint was larger. And we had the courage. Go in Japan, for instance. Everybody told me, it's impossible to make for such a small starter. It's impossible to make a business in Japan. But we didn't believe it. We're just crazy and we went there, and be built a very sizable business in Japan. Fifty-five percent of our revenue, even today, it's outside U.S. Now of course that has a down side. When uh, When the local currencies, you know, are losing the value compared to the dollars, we're impacted. As we go to... to investors, until now, so we are seeing like a (indistinct) in terms of ARI. It's huge. Only because (indistinct) and losing the business in Russia. But it still, it's the strength of our company. Things will come back. And then, you know, the growth engine will re-accelerate again. >> Dave: Yeah but when the dollars weakens that'll be in your favor. Rob I want to pick up on something you said today in your keynote. You went back and started, you know the cycles of ERP and you know, internet, et cetera. I kind of have a love hate with ERP. I have to be honest. >> Male: (laughing) >> But it, but but (chuckles) but if I go back to that. Late eighties nineties, you wouldn't have be able to pick SAP as the winner. And then SAP emerged. You know, very clearly. But the more interesting thing, is that the customers who are implementing ERP well. The practitioners did better than their peers, and dominated their industries. And their stocks went up. Their evaluations went up. Different worlds obviously but, do you see the same thing happening with RPA and automation? What gives you confidence that that's the case? >> I absolutely do see the same thing happening with automation and RPA being a part of, in being a part of that. The reason, the reason I believe that is speed is so critical. (stutters) And if you think about how hard it is for a CIO or a c level executive to consume the technology coming at them, plus all the changes in the world being thrown at them. It's compiling and compiling and compiling. We have an incredible solution, that can help companies. And there comes certain times, the love outcomes to the business. Like no one else gets. And when I see that, I view that as just like the beginning of what's going to happen in the future so, in many ways, and I've said this to many of my friends, it feels like 1992, 1993 to me. And it's interesting because no one really understood then why SAP would be great in 1992 and 93. And they got a couple of things right. They got the eco system right. Their new partners were important. And the knew they needed to drive business outcome for companies, in which they did. And so I feel like we are in a very similar place. Very different technology obviously. And the speed of change now is so dramatic, compared to what it was. And there's very few technology that can provide that level of speed and accomodation to their customers. >> All right, let's talk about priorities. You guys got a lot of work to do and you've, you've laid it out to the financial community. You've got to have profitable growth, because of FX, it part, you've lowered your forecast. But I think there's some conservative in their as well. Um, but you got to do that balance. You've given some guidance on gross margins. Cloud maybe brings that down a little bit. RnD I saw wide range. Thirteen to seventeen percent. I hope you keep spending on RnD. Big fan of that. You know stock buybacks and, RnD if in your position are going to be better. And the product priorities, continue to build that out. But question, let's start with the product. So you've got an on-prem stack and you've got a cloud stack that's emerging, how do you balance those out? How do you do the integration? You've done a great job with the integration. Does it, are you concerned about your ability to continue to work at that speed with two code bases? I wonder if you could address that? >> Daniel: We've become a cloud first company. We deliver all of our products first in the cloud. We've deliver on the two week (indistinct) in the cloud. So that helps us integrate quite fast. I think we made a very good business decision to build our cloud team in Seattle. In Bellevue to be specific. And we have access to great talent that knows how to build serious cloud service. Which is hard to find dollar. And uh, so, and also we, we have, we benef- one of our only benefits was, we have the really good architecture. We have an architecture that work easily on-prem and on the cloud. And even today, our work flow foundation, our local designers, were easy to modernize. So right now we are launching studio weapon. But behind the scene, it's the same workflow engine. Our customers don't have to rewrite anything. It just works. And it does the same to take our own brand product and brand it in the multicloud. So, it's, there is no friction at all. Actually cloud is just helping us accelerate. But we benefit then again of a really solid architectural foundation. >> Daniel: Architecture matters. We've seen that in this industry. We got the B52s rocking out in the background, I love it, but I've got so many questions for you guys. I want to talk about the go to market. Because Rob, it's obviously a strength of yours. You've come in. You've communicated to the street, that you're reshaping the sales floors. Are they lowering the ratios of sales? People, the customers at the high end, mid range as well, using digital. I mean the numbers are one to ten now. At the top. One to maybe fifty at the mid range. Where are you in terms of that journey? You've got to find people, you got to train them, how do you get the productivity out of those guys? Take us through your thinking there? >> Rob: Yeah firstly, I think we have enough resources. Having resources is not an issue. Um, we have an incredible vehicle to acquire customers inside the company. Our digital sales motion, it's probably the best I've seen. And so we have the ability to acquire customers really fast. And we get the first workload in really fast. The challenge is we need to, we need to be able to drive a (indistinct) model and we graduate customs when we acquire them into the direct sales floors. And then direct sales floors, we're not going to go one to thirty, we're talking one to ten for the direct sales floor. And even the high up in the pyramid, we want to have an even denser model than that. And the whole purpose is to drive the time to consumption much quicker, much faster. So we know exactly if we acquire a customer, will they spend? Do they have a (indistinct) spend? On what level do they have a (indistinct) spend? And therefore when we capture them, we can immediately surround them, and put the right resources so we can grow faster. We think this will have a significant impact on the organization. We'll start to implement certain pieces in the next quarter. Um, things like packaging solutions. Putting them in, enabling the sales organization. And buy the beginning of next year, we'll be ready to actually go full board, globally. We already put some pieces in place when I joined. Chris Weber, my chief business officer, did a great job doing some of those pieces. So we're on the journey already. >> Dave: Yeah and even before you guys were public and you weren't publishing your NRR numbers. Our ETR survey partner, we, we always thought you had very low churn. And I think you broke out just yesterday. The, the NRR for overseas vs U.S, U.S I think was 140 plus percent. >> Male: Yeah >> Very very strong. A little, a little less overseas but the churn is still very low. >> Male: Yep. >> Okay so that's super positive. Customer affinity, I was wanted to code these events. I listen to the key notes very carefully, and then interview customers on the cube, and I try to identify, is there alignment there? And I see very strong alignment, I have to say, and strong customer affinity. So that's in your favor. I have, Daniel, I got another question for you on product. What is Symantec automation? What the heck is that? Can you explain that? I don't understand >> Dave, have you seen the demo in my (indistinct)? >> Dave: You know, I had to leave and do interviews, so I, uh, I missed it. >> I think, I think that demo answer complete your question. So in the s-, you know there saying that great, you can not distinguish great technology by magic. I think technology should be simple. And we, we show today, one of the simplest demo that you can imagine. But it's so, such a complex technology behind the scene, that you also can not imagine. So what was demo? We show how one business user, without any technical skills, can build any type of document. Can be a passport, can be an invoice, can be a legal (indistinct), and just go, "I want to copy data from here, and I want to paste data there". Can be a spreadsheet, can be another obligation, and like a human user, without understanding, without having prior knowledge about data, document layout, about screens, screens layouts, nothing, we analyze real time. Document. We discover, we discover the meaning of the information. We analyze the screen. We understand the screen but we understand the meaning of the screen. And we understand how the information in one side relate to the other side. And we just connects the dots and we copy the information and we paste it. A job that you'll do as a human user, maybe three minutes, is done in ten seconds. This is powerful. >> Yeah that is powerful. Thank you for that. I mean, and you take the date, whether it's transaction data or unstructured data and and and bring meaning out of it. That's powerful. Last question and I'll let you guys go. Rob, you got traders, and you've got long term investors. All right traders going to be defensive, today. I get that. Make the case for UIPATH, for long term investors. >> Rob: I think we're going to be a multi-gern- multi-billion company and we're going to be a generational company of our time. And we will define enterprise automation. And it's going to be a long term game and we feel like really strong that we'll be the lead in that game. >> Dave: Guys, thanks so much for coming to the cube. Great show. Always fun at UiPath Forward. Really appreciate your time. Thank you. >> Thanks dave. >> Appreciate it as well. >> Okay wrap it up, day one, we're here tomorrow, first thing, Dave Vellante and Dave Nicholson. Thanks for watching, forward 5, Uipath big customer event, we'll see you tomorrow. (music)

>>Hello everyone. I'm John furry with the cube. We're here, live on the ground in Seattle, Washington at the Bellevue Hilton for thes marketplace seller conference. It's kind of like the one and a half inaugural event. They have their first event in 2019, and now with the pandemic, they're re rebooting it, but it's really all about AWS's marketplace and partner network coming together, creating an experience for how people will be buying software and how people will be selling through with their ecosystem. I'm Jennifer, the cube we're here with Megan. Fontain, who's the VP of cloud seek. Who's a seller and partner of AWS making great to see you. Thanks for coming on the cube. >>Thank you so much. It's, it's nice to be back in person and it's great to be with you. >>So watching the progression of how Amazon web services is evolving the marketplace and the partner network, you're starting to see some patterns. One is, I'll say they have their own stuff, and they're addressing that in the room, but they're really letting the thousand flowers bloom in the ecosystem. You hear that every year reinvent, even when Andy Jesse who's now the CEO of Amazon would say, no, we want the best of breed. Best product wins. Adam. Celeste's the same view, new leadership here, the combination of APN partner network with the marketplace now partner organization, APO is the big news. They're open. They're building an API service layer between their old marketplace to create this new model here. What's your, what's your, what's your take? What's your seller view? >>Yeah, so our marketplace and APN journey started with AWS about three years ago. And I think something that was the most profound to me out of the keynote this morning was that Chris Gus, who runs the API organization for ISVs talked about marketplace as the automation layer for how AWS will partner going forward. So an independent software vendor likes, we see that as opening up the door for two things. One, we get to leverage the great global scale and platform of AWS, but then secondly, it really brings together this idea that we will sell together to the end customer through the marketplace. And we will also sell as partners through co-sell and APM. >>You know, I love these kind of new, new development models around channel partners, ISVs at the end of the day, buyers are buying software. Yes. And they're cloud they're on a cloud journey. You're the VP of cloud at the company, your company seek take a minute to explain what your company's known for, what you guys do, your relationship with the market. You're an ISV. Yeah. Where are you guys? Cuz you guys ha have a good thing going on here. What do you guys do? What are you known for >>Sure. So seek is market leading software for advanced analytics for the manufacturing industry. So we're squarely in that industry. ISV, we sell SAS solutions to business buyers who want two things. One is they want technology that they can deploy quickly in their organizations drive that great business value ROI that drives the next level of investment in technology seeks unique offering in marketplace is that we've solved a lot of the challenges around that operational data in manufacturing. So manufacturing the industry, it's going through massive transformation, supply chain, disruption, or coming out of that, the globalization of manufacturing. And yet they have data that they've stored for 20, 30 years, that they're still in the first generation of trying to gain insights from. So that's why seek exists. It's really to bring the insights outta that data and then help the manufacturing customers we work with. Get to the cloud. >>What's interesting. I like your perspective and I want to follow up on that because data analytics used to be this thing. Well, I got a database. Yeah. You hosted on some storage and you got structured data, unstructured data. Okay. You got scale. But now you've got data platforms. You've got data mesh. I think Gardner actually has a different term, but gets a whole nother conversation. Data platforms are diverse. Yeah. They're pervasive. They're part of core infrastructure in cloud. It's not like a point solution anymore. It's gotta be integrated and customers are trying to work on, this is one of the hardest problems today. Yeah. In cloud transformation is the data layer, the relationship to other services. Yeah. >>So the Dataverse common data models. How APIs will interact with data. The trend there though is something that it is the ecosystem that will bring value to customers because no database is gonna serve every need. Right. And you think about the data layer. It really has to solve the problems whereby any application, any user, any insight can be generated almost seamlessly. And we're really on the first wave of that journey. But I think a, an element for seek that we certainly understand with our customers is that data alone is not an end objective, right? If it doesn't lead to a decision and an action and a workflow that humans can take to go drive and improvement in their business process, then you haven't tapped into the, you know, value of that technology >>When a buyer comes to the marketplace. Yeah. And they see your listing and solutions. Yes. What are they getting? What are they, what, what are they buying? >>So for seek, we've radically simplified that we, we really embrace this idea of simplification. We just sell, seek. So we have one seat listing in the AWS marketplace, all applications of seek they're all available there. We really leaned into the enterprise procurement models. So private offers are how we do the most of our business on marketplace. And it really went from a stage of experimentation where couple of customers, you know, what is this marketplace? Maybe we'll buy a few of our business applications there all the way through to now we're starting to see the demand side come through for customers where it's not just their security software or their DevOps or infrastructure software. They wanna buy solutions like seek including line of business buyers through a common catalog in the marketplace. >>Great. So I wanna ask you, cuz I want to give you the opportunity to give the pitch, the customer watching right now. Yeah. What's the pitch. Why seek, why this listing? Why should they hit the purchase button? I wish it was that easy. Why should they, why should they what's the pitch? Sure. >>So the first thing is seek through marketplace is a five clicks on three screens procurement experience. So compare that to months and months of back and forth with contracts and purchase orders and vendor set up, this is five less than five minutes, few screens, couple of clicks. And you can buy a multi-year subscription of seek to cover your entire enterprise. The second pitch is that it's a SaaS application that now can be deployed within hours. And then your users, your insights, your value is starting within the first couple hours. This is not a heavy lift it project. That's gonna take months. And then lastly seek specifically. So seek, because we're validated in the marketplace has been well architected for AWS cloud. We have that, you know, stamp of credibility. And we are leading in this space for manufacturing organizations who want cloud native secure software for analytics on their operational data. >>That's awesome. And customers have the challenge when they think about data, the use case security, yes governance, there's a variety of different use cases. What are you seeing as the top three use cases for C? >>So on the there's two lines of that question. The first is really the line of business use cases. And those are all about what outcome are we gonna drive? Are we gonna approve efficiency in your factory? Are we gonna reduce greenhouse gas emissions? Those are the kinds of use cases on the business side that that seek works with our customers on, on the it side. They wanna know that we can access data securely, that we can be part of an ecosystem where they can bring in aerations and algorithms and machine learning and new applications. And they also wanna know that we are sustainable. So meaning that we're driving constant innovation that is easy for them to consume and to gain access, to, to drive the next level of >>Improvement. My final AWS marketplace seller question is, yeah. How does the procurement process through marketplace help you and your customers what's in it for them? What value do the, does the customer get going through AWS procuring? >>So there's really really three. The first is you get a validated set of a catalog of solutions, right? That AWS says, you know, we undergo a rigorous process technically and commercially to be in the marketplace. The second thing for procurement effect of for procurement professionals is that they can leverage their cloud committed spend with AWS. So as they commit more expense and spend with AWS, now these marketplace purchases can be credited to that committed expense. We found that brings it and the business together with procurement to really work more collectively on that. And then the third piece is, imagine buying software where you don't need legal, you know, back and forth, back and forth because we're using a standard doula that thousands of other software companies are using in the marketplace today. >>I thought the keynote had a great line. We are not just a website of a catalog. We are a API service layer. Yes. With automation, more like a C I C D pipe lining. Yes. Of software. Yeah. And we are hearing more and more about software supply chain, more about scaling. This is kind of the future of procurement. Why wouldn't you buy direct, pick a few buttons and assemble your solutions at scale. >>There's some amount of tenant consequences that we've really learned as well. It brings it and the business closer together. So the it person wants to know, well, what is this seek, you know, piece of my AWS invoice. And so they get more engaged earlier in the process with procurement, with the business. And we've actually found that it brings internally for our customers, more people to the seat at the table around what are the applications and how will they govern them across the enterprise. >>Megan, I really appreciate you taking the time to speak with me here at the, at the conference, the seller S marketplace. I have to ask you, we were talking before we came on camera, you made a comment. I'd like you to share this comment with some commentary. You said I'm the VP of cloud transformation. And in the future that might title might not exist. Explain what you mean there, cuz I think this is kind of a telling moment about where we are at this point in the industry. >>Sure. So maybe it's, maybe it's funny to sort of envision a future where your role doesn't exist. But I think, you know, it's a to innovators do that, right? And for us we're a software company. That's going through the transition on-prem to SAS, you know, cloud native sets of applications, but in the pretty near term fore, really the next two years, all of our business will be SaaS and cloud. And so we won't need a separate VP or a separate team or separate function. It will just be how the business operates. >>Megan, thanks for running cue, Meghan bine, who is SI, she's a cloud VP of cloud transformation, VP of cloud, and she's successful. The title will go away and she'll move on to some other great valuable things like running the business. Thanks for coming on. Thank you so much. Okay. This is a cube here in Seattle. We're covering the eights marketplace seller conference. Part of APN merging with Amazon marketplace now called the APO Amazon partner organization. I'm John ER, with the cube. Thanks for watching.

>>Welcome back everyone to the cubes coverage here in Seattle, Washington for AWS's marketplace seller conference. The big news here is that the Amazon partner network and marketplace coming together and reorganizing into one organization, the AIST partner organization, APO bringing together the best of the partnership and the marketplace to sell through. It's a sellers company. This is the second year, but technically with COVID, I call it a year and a half. This is the cube. I'm John for your host. Got a great guest, Leah for sale vice president of business development at four square. Leah, thanks for coming on the cube. Look great. Yeah. >>Hey, thanks. Thanks for having me here. >>So four square, everyone, and that has internet history knows you. You check in you'd become the mayor of a place right back in the day, all fun. It was a great app and I think it was competitor go sold the Facebook, but that was the beginning of location data. Now you got Uber apps, you got all apps, location, everywhere. Data is big here in the marketplace. They sell data, they got a data exchange, Chris head of marketplaces. Like we have all these things we're gonna bring 'em together, make it simpler. So you're on the data side. I'm assuming you're selling data and you're participating at the data exchange. What is Foursquare doing right now? Yeah, >>Exactly. So we are part of the data exchange. And you mentioned checking in. So we, we are really proud of our roots, the, the four square app, and that's kind of the basis still of our business. We have a hundred million data points, which are actually places of interest across the world 200 countries. And we are we're in the business of understanding whereplace are and how people move through those places over time. And >>What's the value proposition for that data. You're selling the data. >>We are selling the data and we're selling it. You can think about use cases. Like how can I improve the engagement with my app through location data? So for example, next door, as a customer of ours, everyone knows next door. When a new business comes online, they wanna make sure that business is a real business. So they use our places to ensure that the address of that business is accurate. >>So how did you, how do you guys get your data? Because if you don't have the first party app, you probably had critical mass of data. Yeah. But then do other people use your data and then re contribute back in kinda like, well, Stripe is for financial. You guys are plugging in yeah. To >>Apps. A great question. So we still do have our consumer apps. We're still proud of those. It's still a basis of our company really. Okay. So, but we take that data. So our first party data, we also, for all the web, we have some partners integrate our SDK. And so we're pulling in all that data from various sources and then scrubbing it and making sure we have the most unique. >>So you guys still have a business where the app's working. Yep. Okay. But also let's just say, I wanna have a cube app. Yeah. And I want to do a check in button. Yep. So rather than build checking in, could I OEM you could four square is that you >>Could, and we could help you understand where people are checking in. So we know someone's here at the Hilton and Bellevue, we know exactly where that place is. You building the Cub app. You could say, I'm gonna check in here and we are verified. We know that that's the >>Right place. So that's a good for developer if they're building an app. >>Absolutely. So we have an SDK that any developer can integrate. >>Great. Okay. So what's the relationship with the marketplace? Take us through how Foursquare works with AWS marketplace. >>Sure. So we are primarily integrated with ADX, which is sort of a piece of marketplace it's for data specifically, we have both of our main products, which are places that POI database and visits, which is how people move through those places over time. So we're able to say these are the top chains in the country. Here's how people move throughout those. And both those products are listed on ADX. >>So if I'm in Palo Alto and I go to Joe in the juice yeah. You know that I kind of hang in one spot or is it privacy there? I mean, how do you know like what goes on? Well, >>We know somebody does that. We don't >>Know that you do that. So >>We ensure, you know, we're very privacy centric and privacy focused. We're not gonna, we don't tell anybody at you >>Yourself it's pattern data. It is. >>Okay. So it's normalized data, right? Over time groups of people, >>How they, how are people using the data to improve processes, user experience? What are some of the use cases? >>So that example, nextdoor, that's really a use case that we see a lot and that's improving their application. So that nextdoor app to ensure that the ACC, the data's accurate and that as you, as a user, you know, that that business is real. Cuz it's verified by four wear. Another one is you can use our data to make business decisions around where you're gonna place your next loca. You know, your next QSR. So young brands is a customer of ours. Those are, those guys are pizza hut KFC. They work with us to figure out where they should put their next KFC. Yeah. >>I mean retail location, location, location. Yeah. >>Right. Yeah. People are still, even though e-commerce right. People still go into stores >>And still are. Yeah. There's, there's, there's probably lot, a lot of math involved in knowing demographics patterns. Volume. >>Yeah. Some of our key customers are really data scientists. Like the think about cus with businesses that have true data science companies. They're really looking at that. >>Yeah. I mean in, and out's on the exit for a reason. Right. They want in and out. Yeah. So they wanna put it inland. >>Right. And we can actually tell you where that customer from in and out where they go next. Right. So then, you know, oh, they go to this park or they go somewhere and we can help you place your next in and out based on that visitation. >>Yeah. And so it's real science involved. So take us through the customers. You said data scientists, >>Mostly data scientists is kind of a key customer data science at a large corporation, like a QSR that's >>Somebody. Okay. So how is the procurement process on the marketplace? What does the buyer get? >>So what we see the real value is, is because they're already a customer of Amazon. That procurement is really easy, right? All the fulfillment goes through Amazon, through ADX. And what you're buying is either at API. So you can, that API can make real time calls or you're buying a flat file, like an actual database of those hundred points of interest. >>And then they integrate into their tool set. Right. They can do it. So it's pretty data friendly in terms of format. >>You can kind of do whatever you want with it. We're gonna give you that as long as you're smart enough to figure out what to do. Do we have a >>Lot of, so what's your experience with AWS marketplace? I mean, obviously we, we see a lot of changes. They had a reorg partner network merging with marketplace. You've been more on the data exchange, Chris kind of called that out. It's yeah. It's kind of a new thing. And, and he was hinting at a lot of confusion, but simplifying things. Yeah. What's your take of the current AWS marketplace >>Religions? I actually think ADX because our experience has primarily been ADX. I think they've done a really good job. They've really focused on the data and they understand how CU, how, you know, people like us sell our data. It hasn't been super confusing. We've had a lot of support. I think that's what Amazon gives you. You have to put a lot of effort into it, but they're also, they also give you a lot of support. >>Yeah. And, and I think data exchange is pretty significant to the strategic. It is >>Mission. It is. We feel that. Yeah. You know, we feel like they really value us as a partner. >>What's the big thing you're seeing out there right now in data, because like you're seeing a lot more data exchanges going on. There's always been data exchange, but you're seeing a lot more exchanges between companies. So let's just take partners. You're seeing a lot more people handle front end of a, a supply chain and you got more data exchanges. What's the future of data exchanges. If you had to kind of, you know, guess given your history in, in the industry. Yeah. What's the next around the corner trend? >>I think. Well, I think there's a, has to be consolidation. I know everyone's building one, but there's probably too many. I know from our experience, we can't support all of them. We're not a huge company. We can't support Amazon and X and Y and Z. Like it's just too many. So we kind of put all of our eggs in a couple baskets. So I think there'll be consolidation. I think there has to be just some innovation on what data products are, you know, for us, we have these two, it's an API and a flat file. I think as exchanges think about, you know, expanding what are the other types of data products that can help us build? >>Yeah. I mean, one of the things that's, you know, we see, we cover a lot of on the cube is edge. You know, you got, yeah. Amazon putting out new products in regions, you got new wavelength out there, you got regions, you got city level connectivity, data coming from cars. So a lot more IOT data. How do you guys see that folding into your vision of data acquisition and data usage, leverage, reuse, durability. These >>Are, yeah. I mean, we're, we are keeping an eye on all of that. You know, I think we haven't quite figured out how we wanna allocate resources against it, but you know, it's definitely, it's a really interesting space to be in. Like, I don't think data's going anywhere and I think it's really just gonna grow and how people use it's >>Gonna expand. Okay. So if I'm a customer, I go to the marketplace, I wanna buy four square data. What's the pitch. >>We can help you improve your business decisions or your applications through location data. We know where places are and how people move through the world over time. So we can tell you we're, we're sure that this is the Hilton in Bellevue. We know that, that we know how many people are moving through here and that's really the pitch. >>And they use that for whatever their needs are, business improvement, user experience. Yeah. >>Those are really the primary. I mean, we also have some financial use cases. So hedge funds, maybe they're thinking about yeah. How they wanna invest their money. They're gonna look at visits over time to understand what people are doing. Right. The pandemic made that super important. >>Yeah. That's awesome. Well, this is great. Great success story. Congratulations. And thanks for sharing on the cube. Really appreciate you coming on. Thank you. My final question is more about kind of the future. I wanna get your thoughts because your season pro, when you have the confluence of physical and digital coming together. Yeah. You know, I was just talking with a friend about FedEx's earnings, comparing that to say, AWS has a fleet of delivery too. Right? Amazon, Amazon nots. So, but physical world only products location matters. But then what about the person when they're walking around the real world? What happens when they get to the metaverses or, you know, they get to digital, they tend an event. Yeah. How do you see that crossroad? Cuz you have foot in both camps. We do, you got the app and you got the physical world it's gonna come together. Is there thoughts around, you can take your course care hat off and put your industry hat on. Yeah. You wanna answer that? Not officially on behalf of Foursquare, but I'm just curious, this is a, this is the confluence of like the blending of physical and digital. >>Yeah. I know. Wow. I admittedly haven't thought a whole lot about that. I think it would be really weird if I could track myself over time and the metaverse I mean, I think, yeah, as you said, it's >>It's, by the way, I'm not Bo on the metaverse when it's blocked diagrams, when you have gaming platforms that are like the best visual experience possible, right? >>Yeah. I mean, I think it, I think we'll see, I don't, I don't know that I have a >>Prediction, well hybrid we've seeing a lot of hybrid events. Like this event is still intimate VIP, but next year I guarantee it's gonna be larger, much larger and it's gonna be physical and face to face, but, but digital right as well. Yeah. Not people experiencing the, both that first party, physical, digital hybrid. Yeah. And it's interesting something that we track a lot >>Of. Yeah, for sure. Yeah. I think we'll have a, well, I think we'll, there's something there for us. I think that those there's a play there as we watch kind >>Of things change. All right, Leah, thank you for coming on the Q appreciate so much it all right. With four Graham, John fur a year checking in with four square here on the cube here at the Amazon web services marketplace seller conference. Second year back from the pandemic in person, more coverage after this break.

>>from the bellagio hotel in Las Vegas >>it's the >>cube >>covering Ui >>Path Forward four brought to you >>by Ui Path. >>Welcome back to las Vegas. The cube is live with you. I Path forward four at the bellagio lisa martin with Dave Volonte. We're gonna be talking about you I Path integration suite, we have a couple of guests joining us here. Mark Jeannie is here the GM of Ui Path, formerly the co founder and Ceo of cloud elements and Peter Villeroy also joins us Director of Global I. T. Automation practice at UI Path guys welcome to the program. >>Thanks lisa. Great to hear. >>So Mark, let's go ahead and start with you. The Cloud elements acquisition was done in about the last six months. Talk to us about why you chose to be acquired by Ui Path and where things are today. Some big announcements yesterday. >>Yeah absolutely. So yeah if you go back six months ago um you know we have been in conversations with you I Path for for quite a while and um you know as we were looking at our opportunities as an api integration platform. So cloud elements just to step back a little bit um was a leader in helping companies take a P. I. S integrate applications together and bed that into their into their apps and um you know I Path approached us about the combination of what's happening in the automation world and you know these these have been a society as the marine Fleming from I. D. C. Mentioned this morning integration and DARPA have been separate swim lanes and what we saw and what you I. Path approaches with was ability to combine these together and really be the first company to take and take ui automation and seamlessly connected together with A. P. I. Automation or api integration >>Peter What's been some of the feedback? We know you guys are more than 9000 customers strong now we've had a whole bunch of amount yesterday and today. What's been the feedback so far on the cloud elements acquisition? So >>there's a huge amount of interest. We've had very positive feedback on that lisa the combination of Ui driven automation and A. P. I. Uh Native Integrations is is key especially to the I. T. Leadership that I work with. Um some of whom have traditionally compartmentalized you ipads platform in the Ui space and legitimately think about their own internal processes as being having very little to do with the user interface right. And so combining Ui driven automation together with uh api integration really helps too pick them up where they are and show them the power of that kind of a hyper automation platform that can deliver value in a number of spaces. And you guys ever >>see the movie Blindside? All right. You know what I'm talking about with joe. Theismann gets hit from the blind side and then his career is over and and that's when people realized oh my gosh the left tackle for right handed quarterback is so important and it's subsequent drafts when somebody would pick a left tackle like a good left all the rest went and that's what's happening in in the automation business today. You guys took the lead, you you set the trend. People said wow this is actually going to be a huge market. And then now we're seeing all this gonna occur. And a lot of it from these big software companies who believe every dollar of software should go to them saying hey we can actually profit from this within our own vertical stacks. So what do you make of all the M. And A. That's going on in particular? There was one recently where private equity firm is mashing together a long time R. P. A vendor with a long time integration firm. So it looks like you guys, you know on the right >>side of history in this regard. Your thoughts. Yeah. Absolutely. I mean if you think about automation right you've got to obviously help people do their jobs better. But if you're going to automate a process and a department you needed connect the applications that they use that those people use otherwise you can't accomplish it. And where ap is fit in as is automation and ui automation has become more and more mission critical and it's become bigger and bigger part of enterprise I. T. Wants to get involved. And so enterprise gets involved and what's their stack. It's api based their technology stack is how you connect back is through api so more and more companies are seeing what you I path saw is that if you're gonna automate every process and every department for every person you need to connect to every application that they're using and that's why this is now becoming right. Three companies now just recently have done these types of acquisitions of bringing an integration platform in and combining them together are trying to combine them together. >>All mps are not created equally as we know. Some are sort of half baked lot of them. Many of them don't have decent documentation so there's sort of a spectrum there. How do you, how do you think about prioritizing? How do you think about the landscape? Do you just kind of ignore the stuff that's not well documented and eventually that will take care of itself. How should we think about there have always >>been layers of integration right. Especially working with the ICTy organizations. So you've got our native integrations would make it easy to drag and drop activities and then you've got the A. P. I. Is that we can consume with various activities. That area has really grown through the acquisition of cloud elements and then you've got that third layer where when all else fails, you go on to the user interface and interact with the application like a human does and what you see is that our our interaction with college elements really enables a great enhancement of that lower base level um which is mildly interesting to the lines of business very important. I Yeah, for sure. >>So the reason I asked that question is I was talking to one of your customers this big ASAP customers said I love you ipad. The problem I have is I got so many custom mods and so it's just you know orally documented and I can't I wanna put automation in there but I can't. So to those parts of the tech stack become like the main frame of you know what I mean? And just sort of they live there and they just keep doing their thing but there's so much innovation that pops up around it. How do you how do you see that? >>Well that's part of the agility that comes with the platform like you ipads is that you can interact with the very clean uh swagger documented restful aPI s and you can interact with SCP on their proprietary ages old A. P. I. S. Um Those are things that we've traditionally done decently well, but again through this acquisition we could do that on a grander scale um with bidirectional triggering and all the goodness that you >>solve that problem today that your customer and this is a couple of years ago, you can solve that problem with cloud elements. Is that right? >>Yeah, absolutely. The the ability to integrate too these enterprise platforms like ASAP you need multiple tools to do the job. Right. So ui automation is great but if you've customized ui significantly or other things like that then the A. P. I can be a great structure for it and other cases where um that api provides a resiliency in a in a scale to it that um opens up new processes as well to those corporate systems. Right? So the balance of being able to bring these two worlds together is where you can unlock more because you got >>east west automation >>that's very good overhead and now >>you're going north south with cloud elements is deeper. Right, >>bottom line from the VP of its point of view, the more that can be done from a machine to machine communication the better. So sure. >>What's the opportunity for the existing cloud elements customers to take advantage of here? >>Yeah, absolutely. Um We've continued to support, brought our customers over with us. Uh Part of our customer base has actually been a significant number of software customers. Uh cos S. A. P. S. One of them doc you sign gain site, you know, so household names in the world of software as well as large financial services institutions like US Bank and Capital One and american Express, all of them had that common need where um they wanted to have an api centric approach to being able to connect to customers and partners and leverage our platform to do that. So we will continue to support that extend that. But we see opportunities where again we couldn't automate everything for our customers just threw a PS And uh you know for example one of our major financial services institutions were working with wants to take um and provide a robot for their uh customers and commercial payments to be able to automatically kick off in A. P. I. And so that seamless integration where we can combine that automation with robots leveraging and kicking off a P. I. S automatically takes us further into automating those processes for those >>customers. So you guys six months right. Uh talk about how that integration api integration company better gone smoothly. But what was that like you guys are getting the knack of M and a talk about that, what you learn maybe what you would do differently to even accelerate further, How'd it go? Uh >>That's the best answer from you having been on the >>acquisition side. Um Well we how well it went is six months later, which I think is really unheard of in the technology world, we're introducing our combined offering you I Path integration service that essentially takes what cloud elements built embeds it right into automation. Cloud studio in the Ui Path products. We and uh it's been a global effort. Right? So we had the Ui Path team was based in Hyderabad Denver and Dallas and then we've got um Ui Path engineers working with that cloud elements team that are in Bucharest Bellevue and bangalore and with the miracles of zoom and uh that type of thing, never meeting anyone in person, we were able to integrate the product together and launch it here today >>six months is a fast turnaround time frame was how much of that was accelerated by the, by the fact of the global situation that we're in. >>Yeah, well you know in some respects that that helped right? Because we um um we didn't have to waste time traveling and we could hop on zoom calls instantly. We spent a lot of time even over zoom making sure there was a cultural fit. You I path has a, you know, not only the humble, bold and type of values but it's a very collaborative environment, very open and collaborative environment as Brent can attest to. And that collaboration, I think in that spirit of collaboration really helped us feel welcome and move quickly to pull this together. And also >>the necessity is the mother of innovation right. Uh you ipad traditionally being popular in the CFOs organization were becoming the C I O s best friend and the timing was right to introduce this kind of capability to combine with what we traditionally do well and really move into their picking up like I said the customer where they are and leading them into that fully end to end automation capability and this was integral. So it wasn't time to kick the tires but to get moving >>and my right, there's a governance play here as well because I. T. Is kind of generally responsible for governance if you make it easier for them to whatever governance systems they're using >>governance privacy >>security that now you can just connect. They don't have to rip and replace. Is there an angle there? >>Sure, yeah. So nothing is more important than I. T. Than than control and governments and change management and half of the uh conversations we're having out there on the floor are around that right um uh ensuring that all of the good governance is in place um and we have a lot of the uh integrations and frameworks necessary to help that through your devops pipeline and doing proper ci cd and test automation um and you know introducing that integration layer in addition to what we already have just helps all of that to uh move more smoothly and bring more value to our customers. >>Mark talk to me about some of the feedback from customers that you mentioned, doc Watson. S A P probably I imagine joint customers with you. I path now there you're working together, what's the what's in it for them? >>Yeah, no the feedback has been tremendous. Right, so um api automation is not new to you. I path but customers have been asking for more capability. So one of them is in that governance area that we were just talking about, right, the ability to create connections centrally enable them disable them. Right? You got mission critical corporate applications. You want to be able to make sure that those applications are being controlled and monitored. Right? So that was one aspect. And by bringing this as a cloud based service, we can accomplish that. Um the other area is that this eventing capability, the ability to kick off workflows and processes based on changes to corporate applications, a new employees added in workday. I want to kick off a process to onboard that new employee and that triggered eventing service has been really well received and then um yeah, so that I'd say with the ability to also create new connections more simply was the third big factor. Uh we created a standardized authentication service. So no matter where you are in the UI Path product line, you get a consistent way to create a new connection, whether it's a personal connection by a business user too, you know, google docs or Microsoft office or your C O E R I T. Creating a connection to uh an important corporate system. >>How about the partner? I know you guys had partner day here leading into forward for they must be stoked about this gives you a lever to even add new partners. What was those >>conversations like? Yeah, yeah, no, absolutely. The partners are excited about those same features but um they're also excited about something in our roadmap which we expect to be previewing early next year and that's a connector builder. So the ability for partners to uh more quickly than ever create their own connectors. That'll work just like first party connectors that we ui Path build and add them into catalogs, share them in the market place. So there's new revenue opportunities, new opportunities for partners to create reusable assets that they can leverage and yeah so um lots of things, lots of work to continue to do, right? It's only been six months and uh but that's that's gonna be a big initiative going forward. >>So integration service as you mentioned, announced at this conference, we know that that's the first step obviously accomplished as we also talked about very quickly in a six month time period. But what does the future hold for api automation and integration service? >>So um one of the key areas just continue to expose the integration service um more broadly in the Ui Path product portfolio. Now that we have this service, more Ui Path products will be able to leverage it. Right? We're starting off with studio and orchestrator but that we can all use and share that common common capability. Um The other is to make access to complex business systems easier. So you think about it right. A uh to get a purchase order from net suite might take five or six api calls to do. Well, a citizen developer doesn't know what those five or six things you have to do. So we'll be creating these business activities or just get me open purchase orders that will work seamlessly in the studio product. And behind the scenes. Well, chain together those 56 aPI calls to make that a simple process. Right? So taking the integration service and making it even more powerful tool for that citizen developer than nontechnical user as well. So that's >>development work you're going to do. >>That's what we're gonna do as well as enable partners to do as well. So it's a key part of our road map over time. Because >>yeah I mean the partner pieces key because when net suite changes how it you're creating that abstraction layer. So but that's value add for the partners. >>Absolutely. And they have that domain expertise, right. They can create assets, leveraging the UI path automation capabilities but also bring their knowledge about A. S. A. P. Or workday and those oracle ebs and those core business systems and then combine that together into assets that enhance integration service that they build and I can I can share with their customers and share with our market >>because the work workday developer is going to know about that well ahead of time. No, >>it's coming and they know better than we do. Right. That's their business. That's what they know really well. >>Nice nice value at opportunity, peter >>One of the things that you iPad has been known for is its being very and I've said this on the program the last two days, that's being a good use case for land and expand. You guys have 70% of revenue that comes from existing customers. Talk to me about the cloud elements acquisition as a facilitator of because you kind of mentioned, you know, we're used to be really in bed with the cfos now we're going to see us and we've heard from a number of your customers where they started in finance and it's now Enterprise White, how is this going to help facilitate that? Even more? >>It really helps, you know, touching on what Mark just mentioned about the citizen developer, right, just as one of many examples, the empowerment of end users to automate things for themselves um is critical to that land and expand um successes that we've been seeing and where from an I. T standpoint, the frustration with the citizen developer is, you know, maybe what they're building isn't so top notch right? It works for themselves. What we can't replicate that, but put making it easy to make api integration part of what they do in studio X is so key to enhancing also the reusability of what's coming out of there. So that c uh C O E S can replicate that across teams are globally within their organization and that's part of land and expand because you may find something that's valuable in one line of business replicates easily into another line of business if the tool set is in place >>pretty powerful model lisa >>it is guys. Thanks so much for joining us today, talking about the club elements acquisition, what you're uh, doing with integration service, What's to come the opportunities in it for both sides and your partners? We appreciate your time. >>Great. Thank you. Thank you very much. I >>appreciate it. Thank you for >>David Want I'm lisa martin. You're watching the cube live in las Vegas at the bellagio Ui Path forward for stick around. We'll be right back. Yeah. Mhm. Mhm mm.

(upbeat music) >> Thanks Adam from the studio. Dave, with the next interview, I had a great chance to sit down with Pete, from Microsoft Azure. Talk about 5G and all the advances in the innovation around Silicon and what's coming around under the hood. Obviously Microsoft big hyperscaler, top three cloud player. Let's hear from Pete my conversation and we'll come right back. (upbeat music) Well, we'll come back to the cubes coverage of Mobile World Congress 2021, we're onsite in-person and virtual. It's a hybrid event this year. It's in-person for the first time, since the winter of 2019 lots been passed, a lot's happened and theCube's got to cover it. Our next guest is Pete Bernard, senior director, Silicon and telecom at Azure edge devices, platform and services at Microsoft. Pete, thanks for coming on theCube for our remote coverage. Thanks for coming on. We'll be there live and as well as with the remote community. Thanks for coming on. >> Yeah, no, that's great to be here. I'm coming here from sunny Bellevue, Washington. I wish a wish I was going to be in Barcelona this year, but like, as you mentioned, I think the last time I was in Barcelona was 2019. So a lot has happened since then. Right? >> Well, let's get into it. First of all, we'll see you on the interwebs and the community, but let, let's get the content storyline after the number one story at mobile world. Congress is the rise of the modern developer overlay on top of this new infrastructure, 5g, what is the edge, super edge, AI edge, whatever we want to call it. It is an enabler. Okay. And it's also leveraging the assets of, of these telecom infrastructures and certainly the pandemic we've had great success, nothing crashed. It saved us. So what's your, what's your view on this? This is the big story. It's the most important story? What's your take? >> Yeah, I mean, as I mentioned, a lot has happened and there's been a lot of advancements in this area and I think, you know, the part of what's happened with the pandemic is companies have really accelerated their strategies in this area. In terms of, you know, we have tons of commercial customers that are trying to solve really difficult problems using AI and edge and, and 5g now. So the demand is tremendous and the technology has really advanced quite a bit. And you know, we're, my team is specifically focused on sort of the intersection of 5g edge and AI, and it's sort of bringing together these kinds of existing credible technology advances and it's unlocking some amazing new scenarios and business models for, for customers and partners. For sure. >> So let's get it under the hood a little bit and talk about some of the technical issues. Obviously 5g is enabling a lot of commercial benefits cloud providers like Microsoft Azure is having great edge capabilities now with, with bringing the cloud to the edge, which opens up the obvious gamers Mehta versus AI, AR VR kind of things, low latency, applications, cars, and all that good stuff, all the data coming in and then new use cases. So it's a data problem. It's a typology challenge. It's a new architecture, unpack that for us. What, where are we in this? So. >> So I mean, as you mentioned, I mean, it was kind of an infinite set of problems to be solved. And one of the things that we found was that there was actually a lot of friction out there. It's almost like so many different partners and typologies and ways to put things together. Quite often, we get with a commercial customer and they're like, look, we just need to solve this particular problem in retail or healthcare energy. And so one of the things that we introduced as part of our kind of Azure portfolio is something called Azure percept, which is an end to end system for edge AI development and deployment that now works over 5g and L PWA as well. And so a lot of what we're trying to do as a platform company is help customers and partners kind of expedite and speed that development and deployment of solutions. Because like I said, there's no shortage of demand, but they're quite complex. And as you mentioned, you could have, you know, on-prem solutions, you could have hybrid solutions that talk to on-prem hardware and then go to the cloud. You can go direct to the cloud. But the question is like, how do you put these things together in a secure way? And it get an ROI quickly out of your edge AI deployments. And that's been kind of an interesting challenge. And I think when I talked to a lot of partners, telco partners, especially Silicon partners, were all struggling with how do we expedite, expedite? Because you know, the sooner we can get people to deploy and solve their problems, obviously, you know, the sooner they're happy, the sooner we all get paid. Right? And so that's one of the things we have to be careful of is with all the new technology, how do we really sort of titrate down to, you know, what does it take to actually get things from a POC to deployment as quickly as possible? >> And one of the big things is happening is not seeing the developer ecosystem is coming hardcore into the telco cloud, whatever you want to call it. And it's interesting, you know, the word operators is used a lot, the carriers, the operators, you don't hear that in it and say, you don't say that's the operator, the operators writes it department. So you have cloud native and this operating cultures coming together, dev ops dev sec ops coming to what is a carrier grade operating model, which is like a steady build solid foundation. That's what they expect. So you kind of have this classic OT it collision. And this has been talked about in the edge. What's different though, because now you've got to move faster. You got to have a lot of it like cloud scale with automation and AI at the same time I need full Bulletproof operations. Yeah. >> And so it's, you know, we're trying to expose a consistent developer fabric, you know, to our community. I mean, Microsoft's got millions of developers around the world using lots of, lots of tool, tool chains, and frameworks. And we want to sort of harness the power of that whole developer community to bring workloads and applications onto the telco network, right. In, in environments that they're familiar with. And we're seeing also sort of, you mentioned sort of colliding worlds in the edge world. There's kind of traditional embedded developers that are building cameras and devices and gateways. And then there's a lot of data science, AI developers as well. And what we're trying to do is sort of help both communities sort of learn these skills so that, you know, you have developers that are enabled to do, you know, AI workloads and scenarios and all of the business logic around those things and develop it in an environment, whether it's cloud-based or edge based that they're familiar with. And, you know, so therefore a lot of the complexities of the teleco network itself get sort of obfuscated or abstracted for them. So the developer doesn't have to become a telco expert, right. To build a 5g based camera system for their retail stores. Right. And so that's, that's exciting when we start to merge some of these communities together. >> Yeah. So what would be your message to the operators this year? I mean, obviously the edge is not something you need to educate people on, but they are trying to figure out how to, you know, swap the engine of the airplane out at 35,000 feet, as I say, they got, they want to innovate and this year what's your message. Yeah. >> I mean, there's kind of two things going on. One is yes. I think we're, we are deeply involved helping telcos Cloudify their network and take advantage of 5g and virtualization. And, you know, we have recent acquisitions as a metal switching affirmed and hold that whole thing. So that's, that's that chunk of work that's ongoing. I think the other thing that's happening is really thinking about telcos. We're seeing as a hunger for solutions. And so telcos thinking of themselves as solution providers, not just connectivity providers and, you know, getting into that mindset of saying, we're going to come in and work with this city or this, you know, big retailer and we're going to help solve the problems for them. And we love working with partners like that, that are actually delivering solutions as opposed to pieces of technology. >> What solutions do you think Pete are showing the most promise for helping the telco industry digitally transformed? >> Well, I think on the NGI space, there's a couple of big verticals. I mean, you know, obviously places like agriculture are huge, you know, where you need a wide deployments. We're seeing a lot of areas in around retail, you know, retail environments when I would have leveraged like low latency 5g. One of the pieces of feedback we heard was a lot of retailers actually want less hardware in their physical store and they want to leverage 5g more to get back to the cloud. And then we're seeing, you know, energy sectors, you know, and mining and other kind of difficult to reach areas where you can leverage ciliary networks. So a lot of these verticals are, you know, turning onto the fact that they could get some of their conductivity and edge AI solutions combined together and do some amazing things. >> Right. You just made me think of a question while I got you. I got to ask this because you know, you've brought up 5g and back haul, you know, and people in the, in this business always know backhaul is always the problem. We all know we've been to a concert or a game where we've got multiple bars on wifi, but nothing's loading. Right. So we all know, right. We've seen that that's back haul. That's a choke point. If 5g is going to give me more back haul to essentially another exchange, how has the core of the internet evolved? Because as I started poking around and research and there's more direct connects now, there's not many exchanges. It used to be, we had my west and my east, those are now gone. I'm like, what's going on in the backbone? Does that simple? Is it better or worse? Is that still a good thing? >> Well, yeah. One of the exciting things around kind of the virtualization of what's going on with networking is that we're able to partner with telcos to sort of extend the Azure footprint to help with some of those congestion points, right? So we can, we can bring heavy edge equipment, pretty darn close to where the action is, and actually have direct connections into teleco networks to help them sort of expand their footprint, you know, even farther out to the edge and they can leverage our hyperscaler to, to do that. So that that's a benefit of one of the architectural improvements of 5G around virtualization. >> That's awesome. And I'm looking forward to following up on that great point. And I think it's, it sells a digital divide problem. That's been going on for over a decade, 15, 20 years, this digital divide. Now you got city revitalizations going on. You have, I mean, just the, just the, the digital revitalization in global communities is everywhere. And I think, I think this is going to be an influx point. That's not yet written about in the press now, but I think it's going to be very clear. So, so with all that, I got to ask you the importance of how you guys see an ecosystem for this transformation, because it used to be the telcos ruled the world, and now it's not going that way. They still have a footprint. I mean, everyone, the rising tide helps everybody, as they say, what's the importance of a strong ecosystem in order to drive this nutrient? >> Well, you know, it's definitely a team sport. It's definitely a team sport. And, and you know, Microsoft's been a big partner company for decades, and I think it's something like $8, a part of revenue for every dollar of revenue from the Microsoft generate. So we're heavily invested in our device, builder partners, our telco partners, the ISV community. And, you know, I think what we're trying to do is work with telcos to sort of bring those communities together, to solve these kinds of problems that customers are having. So yeah, it's definitely a team sport. And like I said, the new entrance with some really innovative software platforms, it's an opportunity for telcos, I think, to sort of reinvent and to kind of rethink about how they want to be more agile and more competitive. Again, this will be businesses. >> Okay, great. And have you on, I got it. I got ask you, we've talked about the most important story, obviously 5g edge in AI. I think you nailed it. You're you're in this cross hairs of probably one of the most exciting areas in the tech industry as distributed computing goes that last mile, so to speak pun intended, what, but what's, in your opinion, the most important story that not many people are talking about that should be talking about, what do you think is something that's being written about, but to talk about, but it's super important that that needs to be true. >> Well, you know, it's interesting. I mean, a lot of the marketing and talk about 5g is around phones, people talking about their speed on phones. And I think we're finally getting past the discussion of 5g on phones and talking about 5g for like more MTM communications and more, more kind of connecting really trillions of things together. And then that enabled me to is going to be a big, big deal moving forward. And I think that's, we'll start to see probably more coverage of that moving forward. We're on the inside of the industry. So we kind of know it, but I think on the outside of the industry, when people think 5g, they still think phones. And then hopefully that becomes, there's more of a story around all the other pieces being connected with 5g. >> Yeah. And I got to ask you about two quick things before we go open source, openness, interoperability, and security. What, how would you, what's your opinion on those two pillars? >> So I think security is kind of foundational for what we're we've been doing at Microsoft for a long time, whether it's Azure sphere that we're doing for end to end, you know, edge security or any of our security offerings that we have from services perspective. So we're trying to like with Azure percept, we actually build in like TPM encryption of AI models from edge to cloud, as an example of that. So security really is foundational to all of the stuff that we need to do. It cannot be something that you do later or add on it has to be designed in. And I think from an open source perspective, I mean, whether it's our, you know, stewardship of GitHub or the involvement in open source communities, you know, we're, we're totally excited about all the innovation that's happening there and you know, you got to let people participate. And in fact, one of the cool things that's been happening is the amount of developer reach in areas where maybe there isn't, you know, like we've had our build conferences and other Microsoft events. It enables everyone to participate virtually no matter where they are in the world, even if they can't get a ticket to Redmond Washington, and you can still be part of the developer community and learn online and be part of that. >> I think this whole embed developer market's going to come back in and massive volumes of new people as Silicon becomes important. And of course, I can't leave you without asking the Silicon angle question for our team. Silicon is becoming a competitive advantage for whether it's acceleration, offload and or core things, whether it's instance related or use case related, what's the future of Silicon and the telecom and cloud in general. >> For mine. Yeah. So I mean, the advances happening in the Silicon space are fantastic. Whether it's like process advances down to like five nanometers and below. So you're talking about, you know, much lower power consumption, much higher density, you know, packaging and, you know, AI acceleration built in as well as all these other, you know, containerized security things. So that's being driven by a lot by consumer markets, right? So more powerful PCs and phones. And that's also translating into the cloud and for some of the heavy infrastructure. So the leaps and bounds we're seeing even between now and the last MWC in person in 2019 in Silicon has been amazing. And that's going to unblock, you know, all kinds of workloads that could be done at the edge as well as incredible high-performance stuff to be done in the cloud. That's pretty exciting. >> Peter Love that word unblocked, because I think it's going to unblock them that big, you know, rock in the river. It's holding the water back. I think it's going to unleash creativity, innovation, computer science engineering down from Silicon to the modern application developer. Amazing opportunity. I think the edge is going to be the, an awesome area to innovate on. Thanks for coming on the cube. >> Sounds good. Thanks for having me. >> People in our senior director, silica telecom as your edge devices for platform services at Microsoft, a lot going on big cloud player, hyperscaler at the edge. This is the final area. In my opinion, that's called the accident habits going to be great innovation. It's part of the cloud cloud is creating massive change in telecom. We've got to cover here in the queue. Thanks for watching. Okay, Dave, that was a great interview with Pete Bernard, senior director, Silicon telecom, Azure edge devices, platform, and services. Microsoft's got all those long titles in the, in the thing, but Silicon is a key thing. You heard my interview wide ranging conversation, obviously with that kind of pedigree and expertise. He's pretty strong, but he, at the end there a little gym on the Silicon. Yeah. Okay. Because that is going to be a power source. You you've been reporting on this. You've been doing a lot of breaking analysis. Microsoft's a hyperscaler they're they're the second player in cloud, Amazon. Number one, Microsoft number two, Google number three, Microsoft. They didn't really say anything. They have something Amazon has got grab a ton, but big directional signal shift there. >> Well, I think it was interesting. It was a great interview by the way, and the things that struck me pizza, and they're focused on the intersection of 5g edge and AI. So AI is all about data-driven workloads. If you look at AI today, most of the AI in the enterprise is done in the cloud and it's modeling, but the future of AI is going to be inferencing at the edge in real time. That's where the real expenses today. And that's where you need new computing architectures. And you're right. I've written about this one of my last breaking analysis on AWS, a secret weapon, and that secret weapon is a new computing architecture. That's not based on traditional x86 architectures. It's based on their own design, but based on arm, because arm is higher performance, lower cost, better price, performance, and way cheaper. And so I guarantee you based on what you just said that, well, Amazon clearly has set the direction with nitro and graviton and, and, and, you know, gravitate on to Microsoft is I think following that playbook. And it's interesting that Pete has Silicon in his title and telecom and an edge they're going after that because it doesn't require new low powered architectures that are going to blow away anything we've ever seen on x86. >> Yeah. I mean, I think that's a killer point. You and I have been covering the enterprise, the old guard rack and stack the boxes. Amazon was early on that clearly winning low power, high density looks like a consumer, like feel in cloud scale, changes the game on economics. And then he also teased out if you squint, there's a lot of stuff to decode. We're going to unpack that video and write probably six or five blog posts there, but he said, 5g is going to change the direct connect. They're already doing it. Microsoft's putting that to the edge, that right in the same playbook as AWS, right on the almost right on the number, put the edge, make it powerful, direct connects connectivity. >> We've seen this before. The consumer piece is key. The consumer leads, we know this and the consumer apple is leading in things like AI and, and Tesla is leading at the edge. That's where you have to look for the innovation. That's going to trickle into the enterprise. And so in the cloud guys, I kicked the hyperscale. You and Sergeant Joe Hall talked about this at the startup showcase that we did was that the cloud guys, the hyperscalers, and a really strong position for the edge. >> I got to tell you, we are on this go to the siliconangle.com. Obviously that's our website, the cube.net. We are reporting on this. It's very nuanced point. But if you look at the cloud players, you can see the telco digital revolution telco. Dr. Is a digital revolution back to you, Adam, in the studio for more coverage, we'll be back at the desk shortly.

one thing i'd point out is well flashblade one of our products is scale out flasharray our first product is not scale out um you know scale out isn't a capability for a customer it's an architecture in how you build the product uh you know when i scale out i have more complicated software i have more components more components lead to more failures right if i have a piece of memory and it's going to fail at a certain annual failure rate and i have 10 pieces of memory i'm going to fail at 10 times that same rate so scale out introduces complexity it introduces more components and then you have to say what do you get from it so if our customers needed a lot more performance than we're delivering if they needed a lot more scale than we're delivering in the flash array product we then react to that and go build scale out where the flash array sells we don't see that as a major market need it's more of a niche where flashblade sells then there is much more of a need for that and that's why flashblade would scale out from day one the tam expansion really is following where solid state takes us you know we've gone from um a world that was where believe it or not most computers still had mechanical systems operating them it's sort of like having a mechanical calculator rather than an electronic calculator right we had mechanical disks in our computers literally spinning rust right and it's only been in the last decade where a semiconductor you know where solid state has taken uh the place of that called flash right well as that continues to get less expensive we now can bring not only flash performance into disk economics but more importantly now we can finally have modern software that is driving the need for having greater flexibility with our data as data grows it now we say it has gravity that is it gets heavy it gets hard to manage hard hard to move uh between different environments and now a lot of infrastructure operators are spending much more time managing their data managing the storage systems for their data than they are managing anything else in the data center environment we want to eliminate all that we want to automate all of that you know on the theme of decades two decades ago every application had its own individual communication stack there were dozens of different protocols and a dozen different networks in every company one decade ago ago every application had its own um custom hardware stack and and custom operating systems stack well today there's one network it's called the internet uh today everything every application every server is virtualized allowing mobility and yet storage is still static we we want this decade a bit to be about making storage and data dynamic and really responsive to the needs of the application environment sure so it's a it's a deep relationship that's only getting deeper and it's really at all levels it starts with the executive alignment you think about charlie giancarlo from cisco we've got a lot of just common cross-pollination there but now it extends certainly the field level tom and i are doing a lot of planning together in terms of having our teams go after common use cases but now it extends to engineering as well we had a ucs director plug-in that we've had for some time now uh but but pure is now first in terms of having integration into cisco intersight so we are first and only to have storage integration at the cisco intersight so that cisco and pure customers can really manage their uh environment from from one console so a lot of simplicity uh the single sas interface for managing everything tom why pure why first with that well you know nathan he articulated it well you can look at the executive level we talked about charlie but even you know all of our cisco executives but also to the engineering this the we started really strong uh with the field sales teams but even if you look at the little things that our customers notice but a lot of people may not like the internal development of validated design guides use cases we churn them out um with pure as uh you know our top ecosystem partner more than anybody and there's a lot of work being done our customers see that and it's really helped drive you know our go to market together it's really a very strong strategy and what is the type of data that's going to be the best fit for it there are a lot of common patterns for consumption in a.i uh speech recognition image recognition places where you have a lot of unstructured data or it's unstructured to a computer it's not unstructured to you when you look at a picture you see a lot of things in it that a computer can't see right because you recognize what the patterns are and the whole point about ai is it's going to help us get structure out of these unstructured data sets so the computer can recognize more things you know the speech and emotions that that we as humans just take for granted it's about having computers being able to process and respond to that in a way that they're not really capable of doing today absolutely absolutely yeah no i mean i think it's been a really exciting conference for us so far like you said a lot of payload coming out um you know as far as the building the bridge of the hybrid cloud this has been you know we this has been i would say a long time coming right we've been working down this path for uh for a couple years we started by bringing some of the cloud-like capabilities that customers really wanted and were able to achieve into the cloud back into the data center right so you saw us do this in terms of making our on-prem products easier to manage easier to use easier to automate you know but what working with customers over the last couple of years you know we realized is that as the cloud hype kind of subsided and people were taking a more measured view of where the cloud fits into their strategies what tools it brings you know we realized that we could add value in the in the public cloud environment the same types of enterprise capabilities the same type of features rich data services uh feature sets things like that that we do on premise in the cloud and so what we're looking to achieve is actually quite simple all right we want to give customers the choice whether whether customers want to run on premise or in the cloud that's just a choice of we wanted to we wanted to make an environmental choice we don't want to we don't want to put customers in a position where they have to make that choice and feel trapped in one location or another because of lack of features lack of capabilities um you know or or economics and so the way that we do that is by building the same types of capabilities that we do on-prem in the cloud giving customers the freedom and flexibility to be agile sure well we're a two-year-old uh startup uh headquartered out of bellevue washington and we really focus on two primary uh businesses we have a blockchain business and we have an ai business uh in blockchain we are one of the largest blockchain cryptocurrency hosting companies in north america uh we've got uh you know facilities uh uh four facilities in north carolina south carolina georgia and kentucky and you know really the the business there is helping companies to be able to take advantage of blockchain and then position them for uh the future you know um and then on the ai side of our business uh really you know we we operate that in two ways one is we can also co-locate and host people uh just like we do on the blockchain side but primarily we're focused on uh creating a public cloud focused on gpu-centric computing and artificial intelligence and we're there to help you know really usher in the new age of ai how does pure actually take that word simple from a marketing concept into reality for your customers yeah you know i i think i think simple is um the most underappreciated but biggest differentiator that pure has um i was recalling for someone you talked to cause earlier today i had a conversation about three weeks into the existence of pure excuse me with cause and we were just debating i mean this is before we wrote any code at all about what would be pure's long-term differentiator and i was kind of like i will be you know the flash people or high performance or whatever he's like no no we're going to be simple we are going to deliver a culture that drives some plus into our products and that will be game changing and i thought he was a little crazy at the time um but he's absolutely turned out to be right and if you if you look over the years that started with just an appliance experience a tent card install you know just a really easy environment but that's manifested itself into every product we create and it's really hard to reverse engineer that you know it's an engineering discipline thing that you have to build in the dna of the company so how do you see the partnership with splunk just in terms of supporting that tam expansion the next 10 years so analytics particularly log analytics have really taken off for us in the last year as we put more focus on it um we want to double down on our investments as we go through the end of this year and in the next year with with a focus on splunk um as well as other alliances um we think we are in a unique position because the uh rollout of smart store right customers are always on a different scale in terms of when they want to adopt a new architecture right it is a significant uh decision that they have to make and so we believe between the combination of flash array for the hot tier and flashblade for the cold is a nice way for customers with classic splunk architecture to modernize their platform leverage the benefits of data reduction to drive down some of the cost leverage the benefits of flash to increase the rate at which they can ask questions and get answers is a nice stepping stone and when customers are ready because flashblade is one of the few storage platforms in the market that is scale out bandwidth optimized for both nfs and object they can go through a rolling non-disruptive upgrade to smart store have you know investment protection and and if they can't repurpose that flash rate they can use pure as a service to have the flash raise the hots here today and drop it back off to us when they're done

absolutely now the and so we see upskilling and cross killing becoming more transdisciplinary so business people are becoming IT folks now and IT folks really business people you know we had this business IT divided for a long time it cracks me up I still go to big companies in the IT department teaching in its own building right but those days are going away and I was you know now is IT people over on the business side that lived there now right you know so we're seeing there's kind of this blending where digital is infusing everything and so you have to become digitally confident and this is where we have to make that simpler this is going back to the you know the the digital workplace the average user has had the number of applications they have to to learn double or triple in the light just the last five years right so it's a big challenge yeah well you know we ran our first customer conference our first engaged really three years ago and in Bellevue at a conference center attached to a hotel that's right next to our headquarters which is so super convenient and I think we had five seven hundred people there and it was it was a great start and then last year we doubled in size and we actually outgrew the facility in Bellevue and so when we planned for this year we said you know let's go big let's you know we felt this momentum building we had such great feedback from customers on what they learned and what they came away and could do after coming to engage that we felt we could we were ready to kind of take it to a big stage and so it was really exciting I spent before joining smartsheet two and a half years ago I spent five years at Amazon Web Services and I was fortunate enough to be there when they did their first reinvent in Las Vegas and it was roughly 5,000 people and I had a very interesting deja vu moment walking into the main auditorium here yesterday and and it just brought back all the memories of oh my gosh this is like the size of Bremen so in three years we should be roughly 25,000 we'll be in Vegas but we see a lot of interesting new technology trends and tooling that are allowing people to basically operationalize work in the seams between those legacy systems so lifting some of the data information and potentially workflow workload out of those systems and having them in a you know some of the new types of work platform that we're seeing you know which smart sheets a good example to actually operate in a much more agile way and we call that shift one from systems of record which we kind of understand to what we call systems of delivery so that two words will have a big gravitational effect on the way the rest of the business application landscape will evolve so didn't idea we know that the situation is pretty bleak right now that there are the statistics are horrible just in terms of the number of employees that are really checked out totally disengaged would would love to quit but they need the health insurance and so so we're already sort of starting from a from a pretty low place where in terms of people's engagement at work and I think a lot of the things that that drive people nuts about their work of course is a bad boss and not a great parking spot and everything but it's it's the it's the it's the little things that get in your way of doing your job and it's it's the things that just drive you nuts about some sort of process that takes forever and oh I have to keep doing this and I just already sent you that email and how come you're looking at this other version and it and it's all those impediments that really drive people crazy and that make people stressed out and and unhappy in their jobs so I do think that if you are a company like smartsheet and you have you realized this and you can slowly chip away at those impediments and the aggregate aggravate aggravations that people feel I think that's not a bad business model I think they're on to something right yeah the team is one Alliance is really figuring out how to take the cultural changes that are in flight right now and marrying those with the people and the technology and we think that it's important as things like concepts that are intimidating people ai and m/l worker replacement say whoa whoa whoa these are things where we actually think technology and people should work together as opposed to being a replacement for and I think there's a lot of Education that needs to take place so we plan on doing is doing research through this alliance and then publishing that work because I think a huge part of this is educating the market and giving them confidence to take that step you know it was interesting when I first got the call about smartsheet I had never heard of it and the way that it was positioned to me was super intriguing I realized it was one of those a category that's just not established but a category that has the potential to be the next big thing and we're not even the potential I mean it will be the next big thing and you know I met with that that was intriguing but then I met with the executive team and it was a perfect combination of a killer product but a killer company I can't tell you how special the leadership of this company is and their authenticity and their passion and their Drive and their belief it's so contagious there's no way you would not want to be a part of it so I'm and then the privilege to be able to tell this company's story I feel like it is the best-kept story not only in Seattle potentially the world and I plan to tell the story and what a gift but what a great opportunity as a marketer to have this type of opportunity you [Music]

(upbeat music) >> Narrator: Live! From Orlando, Florida, it's theCUBE! Covering Microsoft Ignite. Brought to you by Cohesity. >> Welcome back everyone to theCUBE's live coverage of Microsoft Ignite, I'm your host Rebecca Knight, co-hosting alongside of Stu Miniman. We are joined by Frank Artale, the Managing partner at Prime Foray, thank you so much for coming on theCUBE Frank. >> Glad to be here. >> So before the cameras were rolling, we were talking about the energy of this place, you've been to many, many an Ignite, way back before it was even called Ignite. >> Oh yeah! Yes, this is, Ignite is the evolution of something that Microsoft used to call TechEd. So it was like back in, when I was in Microsoft, so even back in the '90s, we had to figure out a way to educate the technical community, and we decided to start this thing, and interestingly enough, the first one ever was here in O\rlando, much smaller venue, I think at The Swan and the Dolphin, but I've been coming to them on and off, you know for the past, 26 years or so. >> So tell us a little bit about what you're doing now at Prime Foray, what is Prime Foray? >> So we're a boutique and advisory consulting company, and we do work with what I call ISVs, so basically someone that makes software, but we engage with folks who are at some point on a journey to cloud, and that means both from a business and technical perspective. Whether they're just getting started, thinking about moving products, that maybe they had it from on premises, onto a cloud platform, or maybe they're well on their way and they're really looking to just like amplify and accelerate that. That's where a team of people that'll have experience from product, business development, sales and marketing, to really get those companies to the place that they want to be, relative to cloud, because as we know, cloud is still the future, and everyone wants to get there. >> All right, so Frank, bring us inside. Without giving away state secrets, dealing with Microsoft today is very different from the company that we grew up with, of Windows and Office. So what's it like working with Microsoft? Give a little bit of you know, where some of the key enablers are. >> Yeah, yeah so in the early days, if you think about it right, Microsoft is always great with evangelizing to an independent software vendor, around building to the platform. So back in the day, so much of the Microsoft actual market cap, was dependent upon the ISVs building to the APIs. And the APIs were the sort of the lock, right, until the ISVs were locked. But there never was a really, let's say a great channel program for someone that was an ISV. The channel programs are largely structured for people that sold stuff. And so what you're really seeing now for the first time, and this is not exclusive to Microsoft, with other cloud partners. But of course since we're at a Microsoft show, we can highlight some of the things that Microsoft is doing here, it really is creating super incentives for ISVs to come to the platform, such that the ISVs feel like they are selling side by side, side by side with Microsoft. There are some great incentives around that, they provide some great access to technology and tools, really great credits to get onto the platform, and so they focus as much on the business, like they always put more on the business now, than on the access to the technology, to the extent that it can work side by side with a company in building their business, well the folks that are the business owners really like that. The tech guys always like bits and bytes wherever they can go. >> So, describe how the partnership works. I mean what is, as you are now holding hands with companies that are going through a digital transformation, and some working closely with Microsoft, some may be just on the fringes of working with Microsoft, describe how the partnership is working. >> Yeah, so well, I would call it, I'd like to say that it's really in someways an evolution of the way Microsoft started working with ISVs, a number of years ago, and so at the core, the way Microsoft thinks about them, thinks about the ISVs is really, you know, an extension of their own product line. Right, so a platform is only as good as the things that, that stand atop it, right? And so, if Azure is a platform, or Business Apps is a platform, or Modern Workplace is a platform, you need applications that sit atop those things. And, one of I think the, one of the key things that Microsoft has done, has really enabled the ISVs to become connected with the Microsoft Sales Organization, without having intermediaries. So when, like in a lot of ways, when you're an ISV and you go work with a larger company that you want to have a partnership with, you have to find somebody that knows somebody that's the Account Manager for some large account. What Microsoft has done is they've automated that, once you've passed through a series of hurdles and certifications, you can actually enter into a program where you're opening leads into Microsoft and you get, and that partner, gets connected with the Microsoft Sales Team on the other side. So whenever I talk to people about things that they're doing, that's what I think the ISVs are most proud of. You'll hear them say things like, well, we are in X amount of accounts together with Microsoft. And, you know we're going, and from a business perspective, why ever enter into a partnership, if you were not going to just, to sell stuff? Again, you can do bits and bytes all day, it's a lot of fun for people like me, but at the end of the day, revenue has to come out the other side. And I think from a partner perspective, they've done a better than good job at that. >> All right. So Frank, when you look back to when you were inside Microsoft, give a little bit about how the roles have been changing as we've gone into this world of cloud and AI. >> Right, how the world has changed? >> And the roles inside of Microsoft, specifically, to, you know, fit the world. >> Right right. So when I was there, you know long ago, obviously it was a much smaller place, and you actually had, you know inside the house, you had product development, and you know, outside the house, you had channel development, and then you had, then you had direct sales, and you also OEM sales which was, which actually is a very very big piece to the puzzle. But, the linkage, right, between sales and channel, wasn't really there back then. And sometimes, like even the role that I had in program management, at times we had to be, we had to be glue for that. I think what, you know, in a sense now with the roles have changed is such a way, that you have, you have people, you know inside the house now that are really responsible for not just ensuring that a partner feels good about what they're doing, but that the partners are actually selling side-by-side with folks in the field. And that would've been, you know, an impossible thing, really impossible thing to do at the time. And so the other thing that's, I think that's really changed, is now that you have, you have an overlay sales organization, called Worldwide Commercial, and also a direct sales organization. So direct sales organization, are people that carry the bag and have quota right on the accounts. But then, you have another organization, that looks after the 500 largest accounts, and there are a lot of specialists in that organization, that by definition work with partners to move both the Microsoft products and the partner's products together in there. And so those are large organizations that plain and simply just didn't exist, and they may have not even made sense at the time, 'cause at the time a lot of what we were doing in the '90s we were still distributed computing, with still really a technical curiosity, and then it became trusted infrastructure. And it's really only in the last few years that cloud computing has moved beyond that, from being a technical curiosity, to trusted infrastructure. And the way it's taken to market, is so much different, because we took finished goods to market, we relied on people to carry boxes of stuff, we relied on people to do inventory. There's no more inventory, I mean it's just there, you turn it on and you go. So I think what you'll see also from again, from where the commerce engines are setup, and the kind of people that are deployed, are really being tooled for that kind of a go to market, which is significantly different. >> So we're really just scratching the surface when it comes to cloud. As you said so many of these companies are only at the beginning of their journeys. What do you think the future holds, in terms of trends in the marketplace and what companies are going to continue to want. And are there any blind spots, that you, as someone who's being at this industry for 36 years, sort of know are there? >> Right, so like today was an interesting one, to see ARC announced. And you know, it shows the natural evolution of the way that we think about a platform. So, if we go back to even like the late 80s right, we had to build servers, right? So you got a network operating system, and there was a set of network adapters, and a set of hardware it worked on, and you had to pay a systems integrator, to go put it all together, and then you kind of hope it worked. Well then we got this stuff call plug-and-play, in the early 90s, and it flattened the playing field, and you can take an operating system like Windows NT the one that I worked on, and as long as it'd adhere to a plug-and-play standard, it generally worked on that platform. But the operating system then grew, to become a collection of services. It was a file server, it was an identity server, eventually, things like transaction processing, networking was always in there. Now if you look at what something like ARC, or any of the services that are available on other clouds, they're really services on which applications are built. So now it's just natural to see that these services like from the cloud vendors, are being taken on to other cloud infrastructures. So today, we are here at Microsoft, you see ARC which is a set of Azure services, which are being made available and useful on other platforms like on-premises, as an example. To me that's no surprise, for Microsoft, they kind of led the way with that, with their IOT technology. How you see Azure services moving onto there. So now, from an opportunity perspective, as someone who's building applications, you can say OK, I can now go look at services that are I know will be available on all clouds. So I have a, let's just say I can, I can snap to that, and now I can go to my customer and also talk about a flexible, you know flexible opportunity about where and why you might want to deploy. So more opportunities around that though, what gets complex, management gets complex, security gets complex, we're sounding like the '90s again right, where whole industries grew up around things like performance and security, you know, and systems management, around that. And so, I think, you know from a, just strictly from an opportunity perspective, you know there'll be companies here that see that, and go take advantage of it to get out in front, and there'll be ones that are already incumbents, and hang on for dear life, saying things have to be different on each cloud, but I think, as you see companies that embrace the notion of sets of services that'll be running across clouds, those are where really the opportunities will be. Just like we saw in the '90s, folks that said hey, I'll run my application on Windows NT, on any piece of hardware, right? They didn't tie themselves to I'll just say like, you know Compaq, or Tandem, folks that don't exist anymore. (Rebecca laughs) Now they've got the folks we have here today. >> All right, so Frank you know you can't get through an interview with theCUBE without getting a question from John Furrier. >> Frank: Okay, is he on? >> So John's been watching, and he wants to know, how's the restaurant scenes doing in Seattle? >> Okay so, the Seattle restaurant scene's second to none. Obviously you need cuisine. Two restaurants that I'm personally involved with, one is downtown Seattle, and a one in, one in Bellevue Washington. Both completely different cuisines, one heavy on steak, one heavy on plants, and we like to say, we're up and to the right on both of those John, so thanks for asking. >> Great, excellent. Frank Artale, always a pleasure having you on. Thanks so much. >> Great, thank you. >> I'm Rebecca Knight for Stu Miniman, stay tuned for more of theCUBE's live coverage of Microsoft Ignite. (upbeat music)

>>From Miami beach, Florida. It's the queue covering a Chronis global cyber summit 2019. Brought to you by Acronis. >>Okay. Welcome back. Everyone's cubes coverage here and the Kronos is global cyber summit 2019 and Sarah inaugural event around cyber protection. I'm John Forrey hosted the cube. We're talking to all the thought leaders, experts talking about the platforms. We've got a great guest here, security analyst, author and Ted speaker. Karen Ellis, Zari who runs the besides Tel Aviv. Um, she gave a keynote here. Welcome to the queue. Thanks for coming on. >>Oh, thanks for having me. It's a pleasure. >>Love to have you on. Security obviously is hot. You've been on that wave. Even talking a lot about it. You had talked here and opposed the conference. But for us, before we get into that, I want to get in and explore what you've been doing that besides Tel Aviv, this is the global community that would be runs a cyber week. He wrote a big thing there. >>So that's something that's really important to me. So 10 years ago, hackers and security researchers thing start that somebody called security besides which was an alternative community event for hackers that couldn't find their voice in their space. In the more mainstream events like RSA conference or black hat for example. That's when security besides was born 10 years ago. Now it's a global movement and there's been more than a hundred besides events. Just this year alone, just in 2019 anywhere from Sao Paolo to Cairo, Mexico city, Athens, Colorado, Zurich, London, and in my hometown of Tel Aviv. I was very proud to bring the besides idea and the concept to Tel Aviv five years ago. This year, 2020 will be our fifth year and we'll be, I hope our biggest year yet last summer we had more than 1200 participants. We take place during something called Telaviv cyber week, which if you've never visited Tel Aviv, that's your opportunity next year of Bellevue cyber Wade brings 9,000 people to Israel. >>It's hosted by Tel Aviv university where I'm also a researcher and all of these events are free. They're in English, they are welcoming to people from all sorts of places in all walks of life. We bring people from more than 70 countries and I think it's great that we can have that platform in Israel, in Tel Aviv to share not just our knowledge but also our points of view, our different opinions about the future of cyber security. Tel Aviv university. Yeah. So Tel Aviv university hosts me cyber week and they're also the gracious hosts for the sites televi which runs as a nonprofit separate from the university. >>You know, I love these movements where you have organic, just organic growth. And then we saw that with the unconference wave couple years ago where you know, the fancy conferences got too stuffy to sponsor oriented, right? That's >>right. Yeah. Up there too. They want to have more face to face, more community oriented conversations, more or, yeah. So besides actually the first one was absolutely an unconference and to this day we maintain some of that vibe, that important community aspect of providing a stage for people that really may not have the opportunity to speak at Blackhat or here or there. They may not feel comfortable on a huge with all those lights on them. So we really need to have that community aspect of them and believe it or not. And unconference is how I got on the Ted stage because a producer from Ted actually came all the way to Israel to an unconference in the Northern city of Nazareth in Israel, and she was sitting in the room while I was giving a talk to 15 people in the lobby of a hotel. And it wasn't that, it wasn't, you know, I didn't have a big projector. >>It wasn't a fancy production on any scale, but that's where that took for loser found me and my perspective and decided that this was this sort of point of view deserves to have a bigger stage. Now with digital technologies, the lobby conference, we call it the lobby copy, cons, actions in the hallway, just always kind of cause do you have a programs? It's not about learning anymore at these events because if all you can learn online, it's a face to face communal activity. I think it's a difference between people talking at you. Two people talking with you and that's why I'm very happy to give talks and I'm here focused on sharing my point of view. But I also want to focus on having conversations with people and that's what I've been doing this morning, sharing my points of view, teaching people about how I think the security worlds could look like, learning from them, listening to them. >>And it's really about creating that sort of an atmosphere and there's a lot of tension right now in the security space. I want to get your thoughts on this because you know, I have my personal passion is I really believe that communities is where the action is in a lot of problems can be solved if tapped properly, if they want, if they're not used or if they're, if the collective intelligence of a community can be harnessed. Yes, absolutely. Purity community right now has a imperative mandate, which is there's a lot of to do better. I think good that could be happening. The adversaries are at scale. You seeing, um, you know, zero day out there yet digital warfare going on, you got all kinds of things on a national global scale happening and people are worried. Absolutely. So there's directions, there's a lot of fear, there's a lot of panic going on these days. >>If you're an average individual, you hear about cybersecurity, you're of all hackers, you're thinking, Oh my God, they should turn all of my devices off, go live in the woods with some sheep and that's going to be my future. Otherwise I'm a twist and I agree with you. It's the responsibility, all the security industry and the security community to come together and also harness the power and the potential of the many friendly hackers out there. Friendly hackers such as myself, security researchers and not all security researchers are working in a lab at the university or in the big company and they might want to, you know, be wherever they are in the world, but still contributing. This is why I talk about the hackers immune system, how hackers can actually contribute to an immune system helping us identify vulnerabilities and fix them. And in many cases I found that it's not just a friendly hackers, even the unfriendly ones, even the criminals have a lot to teach us and we can actually not afford not to pay attention, not to be really more immersed, more closely connected with what is happening in the hacker's world, whether it's criminal hackers underground or the friendly hackers who get together at community events, who share their work, who participate on bug bounty platforms, which is a big part of my personal work and my passion bug bounty programs for the viewers who are not familiar with it are frameworks that will help companies that you might rely on like Google or Facebook, United airlines or Starbucks or any company that you can imagine. >>So many big companies now have bug bounty programs in place, allowing them to actively reward individual hackers that are identifying vulnerabilities. Yeah. And they pay him a lot of money to up to millions of dollars. Yes, they do, but it's not just about the money, you know, don't, it's not just amount of money. There's all kinds of other rewards that place as well. Whether it's a fancy, you know, a tee shirt or a sticker, or in the case of Tesla for example, they give out challenge coins, the challenge coins that only go out to the top hackers. I've worked with them now you can't find anything with these challenge coins. You keep the tray, you can trade them in in the store for money. But what you can do is that you get a lot of reputational and you know, unmonitored value out of that as well. Additionally, you know another organization that's called them, the Pentagon has a similar program, so depending on his giving out, not just monetary rewards but challenge coins for hackers that are working with them. >>This reputation kind of system is really cutting edge and I think that's a great point. I personally believe that that will be a big movement in all community behavior because when you start getting into having people arbitrator who's reputable, that's an incentive beyond money. Well, what I've found great I guess, but like reputation also is important. I can tell you this because I've, I've this, I've really dissected and researched this in my academic work and the look at the data from several bug bounty programs and the data that was available. There's all kinds of value on the table. Some of the value is money and you get paid. And you know, last month I heard about the first bug bounty millionaire and he's a guy from Argentina. But the value is not just in the money, it's also reputational value. It's also work value. So some hackers, some security researchers just want to build up their resume and then they get job offers and they start working for companies that may have never looked at them before because they're not graduates of this and that school didn't have this or that upbringing. >>We have to remember that from, from the global perspective, not everybody has access to, you know, the American school system or the Israeli school system. They can't just sign up for a college degree in cybersecurity or engineering if they live in parts of the world where that's not accessible to them. But through being a researcher on the bug bounty platform, they gain up their experience, they gain up their knowhow, and then companies want to work with them and want to hire them. So that's contributing to the, you've seen this really? Yeah. We've seen this and the reports are showing this. The data is showing this, all of the bug bounty programs that ha have reports that come out that show this information as well. Do you see that the hackers on bug bounty pack platforms that usually under 30 a lot of them are. They're 30 they're young people. >>They're making their way into this industry. Now, let me tell you something. When I was growing up in Israel, that was a young hacker. I didn't know any bug bounty programs. None of that stuff was around. Granted, we also didn't have a cyber crime law, so anything I did wasn't officially illegal because we didn't have, yeah, it wouldn't necessarily. Fermentation is good. It certainly was and I was very driven by curiosity, but the point I'm trying to make is that I didn't actually have a legal, legitimate alternative to, you know, the type of hacking that I was doing. There wasn't any other option for me until it was time for me to serve in the Israeli military, which is where I really got my chops. But for people living in parts of the world where they don't have any legitimate legal way to work in cybersecurity, previously, they would have turned to criminal activities to using their knowhow to make money as a cybercriminal. >>Now that alternative of being part of a global immune system is available to them on a legitimate legal pathway, and that's really important for our workforce as well. A lot of people will tell you that cybersecurity workforce needs all the help it can get. There's a shortage of talent gap. A lot of people talk about the talent gap. I believe a big part of the solution is going to come from all of these hackers all over the world that are now accessing the legitimate legal world of cybersecurity or something. I want to amplify that. Certainly after this interview, I'd love to follow up with you. Really, we will come to Tel Aviv. It's on our list for the cube stuff. We'll be there. We'd love to launch loving mutation. What you're talking about is an unforeseen democratization, the positive impact of the world. I want you to just take a minute to explain how this all came together for this. >>With your view on this reputational thing. I talk about the impact. Where does it go beyond just reputational for jobs? What? How does a community flex and organically grow from this and so one thing that I'm very happy to see, I think in the past couple of years, the reputations generally of hackers have become important and that the concept of a hacker is not what we used to think about in the past where we would automatically go to somebody who was a criminal or a bad guy. Did you know that the girl Scouts organization, the U S girl Scouts are now teaching girls Scouts to be hackers. They're teaching them cybersecurity skills. Arguably, I would claim this is a more important skill than making cookies or you know, selling cookies. Certainly a more money to survive in the wilderness. Why not in the digital wilderness? Yes, in a fire counter than that. >>More than that, it's about service. So the girl Scouts organization's always been very dedicated to values of service. Imagine these girls, they're now becoming very knowledgeable about cybersecurity. They can teach their peers, their families, so they can actually help spread. The more you build a more secure world, certainly they could probably start the fire or track a rapid in the forest or whatever it is that girl Scouts used to do that digitally too. That's called tracing. Really motivating that person. I think that's aspiring to many young women. That's very kind of, you actually have to have more voices out there. What can we do differently? What help? What can I do as a guy, as in the industry, I have two daughters. Everyone has, as I get older, I have daughters because they care now, but most men want to help. What can we do as a group? >>So I think you're absolutely right that diversity and inclusivity within the technology workforce is not a problem there. Just the underrepresented groups need to solve by. It's actually an issue for the entire group to solve. It's men or women or any underrepresented minority and overrepresented groups as well because diversity of the workforce will actually help build a more resilient, sustainable workforce and will help with that talent gap, that shortage of people of skilled employees that we mentioned. Others, a few things that you can do. I personally decided to do what I can, so I contributed to a book called women in tech at practical guide and in that book there's also a chapter for allies. So if you're a person that wants to help a woman or women in tech in your community, you are very welcome to check out the book. It's on Amazon, women in tech, a practical guide. >>I'm a contributor to that and myself. I also started a group called leading cyber ladies, which is a global meetup for women in cyber security and we have chapters on events in Israel, in New York city, in Canada, and soon I believe in United Kingdom and Silicon Valley and perhaps in your company or in your community, you could help start a similar group or maybe encourage some of the ladies that you know to start a group, help them by finding a space, creating a safe environment for them to create meetups like that by providing resources, by sponsoring events, by mentoring does a few, a lot of things. Yeah, there's a lot of things that you can do and it's certainly most important to consider that diversity in the workforce is everybody's issue with Cod. Something just one gender or one group needs to figure out how to be a big bang theory. >>You can share with three people, two people, absolutely organic growth or conditional. Yes, certainly. And as men, if you don't want to, you know, start them an event for women because that may seem disingenuous, but you can do certainly encourage the women that you find around you. In your workforce to see if they want to maybe have a meetup and if they do, what kind of help you can offer? Can you run the AB for them? Can you as sponsored lacrosse songs, whatever kind of help that you can offer to create that sort of a space. The reason we we started cyber ladies is because I didn't see enough women speaking at security events, so I wanted to fray the meet up where the women in cybersecurity could share their work network with one another and really build up also their speaking port portfolio, their speaking powers so that they can really feel more comfortable speaking and sharing their work on other events as well. >>Camaraderie there too. Yes, it very important. Thank you so much to you now, what is your, your professional and personal interests these days? What's getting you excited? So there's some of the cool things. That's a fantastic question. So one thing I'm super excited about is that I'm actually collaborating with my sister. So my sister, believe it or not is a lawyer and she's a lawyer who specializing in cyber line, intellectual property privacy, security policy work, and I'm collaborating with her to create a new book which would be a guide to the future of cybersecurity from the hacker's perspective and the lawyers perspective because we are seeing a lot of regulators, a lot of companies that are now really having to follow laws and guidelines and regulations around cybersecurity and we really want to bring these two points of view together. We've already collaborated in the past and in fact my sister has worked on the legal terms of many of the bug bounty programs that I mentioned earlier, including the Tesla program. >>So it's very exciting. I'm very proud to be able to work with my younger sister who followed me into the cyber world. I'm the hacker, she's the lawyer and we are creating something together. Dynamic duo that's going to be, I'm excited to interview her. Yeah, so in my family we call her the tour Vogue version. Can you imagine that together? It's really unstoppable. We didn't have a chance to speak together at the RSA conference earlier this year and that was really unique. Am I going to fall off on that with the book? Well, our platform is your platform. Anything we can do to help you get the word out, super exciting work that you're doing. We think cyber community will be one of the big answers to some of the challenges out there. And we need more education. Law makers and global politicians have to get more tech savvy. Yes, this is a big, everybody, it's everybody's issue. Like I said in this morning speech, everybody's on the front lines. It's not the cyber generals or you know, the hackers in the basements that are fighting. We are on that digital Battlefront and we all have to be safer together. Karen, thanks for your great insights here in energy. Bug bounties are hot. The community is growing. This is the cyber conference here that, uh, Acronis global cyber summit 2019. I'm John Barry here to be back with more coverage after this short break.

>>live from Seattle, Washington. It's the key nude covering Smartsheet engaged 2019. Brought to you by smartsheet. >>Welcome back, everyone to the cubes. Live coverage of smartsheet engaged here in Seattle, Washington. I'm your host along with my co host, Jeff Rick. We're joined by Jean Farrell. He is the CPO of smartsheet. Thanks for coming on the show. >>Thanks for being here. >>Great to be here here last year and even bigger and better. You moved out of the hotel and convention center. That gets something. Did >>we did, We were. We have almost 4000 strong this year and we're super excited. We've been looking forward to this for a while. So >>So this is the third, the third annual conference yet. Just tell us a little bit. Let's let's open it up by telling our viewers a little bit about what this means to you, how big the show is. Give us a few stats. >>Yeah, well, you know, we ran our first customer conference, our first engaged really three years ago in in Bellevue at a conference center attached to a hotel that's right next to our headquarters, which is so super convenient, and I think we had 5 700 people there, and it was a great start andan. Last year we doubled in size and we actually outgrew the facility in Bellevue on. So when we planned for this year, we said, You know, let's go Big way felt this momentum building. We had such great feedback from customers what they learned and what they came away and could do after coming to engage that we felt we could. We were ready to kind of take it to a big stage. And so it was really exciting. I spent before joining Smartsheet two and half years ago. I spent five years that Amazon Web service is, and I was fortunate enough to be there when they did their first reinvent in Las Vegas, and it was roughly 5000 people, and I had a very interesting deja vu moment walking into the main auditorium here yesterday, Andi, it just brought back all the memories of Oh my gosh, this is like the size of remain so in three years we should be. Roughly 25,000 will be >>in Vegas >>today, up on the main stage. A lot of great new product announcements I want it, I want you to sort of break it down for our viewers. He started talking about how you really served three core customers and these new product announcements are really targeted. Each of these >>Yeah, we kind of broke it out. And what we find >>your way, sir? Customers of all sizes. So from startups, toe, medium sized businesses to large enterprise and within almost every one of those customers, we really see three distinct user groups really work force, which is at the core kind of where we started the I T teams, which many times there to support the workforce but also drive a lot of their own work clothes. And then the business decision makers. Folks that are really looking at, How do I drive overall organizational effectiveness and improve efficiency? And so what we tried to do was make sure we were delivering a set of capabilities for everybody on DSO for the workforce. We announced a bunch of new capabilities. Probably the highlight was our new conversations in context, which we're really excited about. It's gonna enable ah, whole new level of collaboration and engagement within the platform, and >>it was really >>grounded in customer feedback. That said they wanted the ability to actually interact in the context of their work and too many times what they were forced to do is they would have a question and they would have to go send an email or they go send a chat and then the response is disconnected. So it just wasn't as efficient. That could be. So we took that signal and work very closely with customers to design the new experience. So really excited about those those capabilities. We launched new forms, capabilities and multi select dropped down a lot of things that our customers are really excited around. From the workforce perspective on the I t front, we've introduced a ton of new things all year. The two big announcements today were around our accelerator for GDP are which it actually affects almost anybody that does business with an EU citizen. So a lot of folks don't really connect the dots ago. I'm in. You know, I'm in Redmond, Oregon. Why do I need to comply with GDP? Are well, if you sell the anybody in the you need to figure that out, um, and and then, um beyond GDP are. We talked about our federal offering on our new govcloud, which is really key for government agencies but also all the contractors to support government agencies. And so a lot of our customers are very interested in that. And then the final piece was really business leaders. Andi talked there about new enhancements to control center. Do it really let it scale and move across the organization roll ups, ability to do multi tier on then. Importantly, we talked about the new content collaboration capability, which is which is a really big it integrates are our slope technology. So marketing and other types of, uh, disciplines can use content collaboration in their work. I'd be remiss if I didn't mention 10,000 feet. >>So lots to talk about a lot. But you clearly, this is the customers, right? Because I think it was at the pasting. Widgets between Dashboard was a standing ovation. It's amazing the power of copy and paste when you can pull that work, you know, it's it's what the people want. It's funny you say that I am constantly >>amazed with that. The things that when you saw little problems that unlock all sorts of new use cases and many times that cheer you here is because customers have been trying to work around those problems, right? So multi select Drop Down is a great example where they had to do all sorts of gyrations in how they configure their work to support multiple selections. And so now we've made that much more elegant for them, and they're like, ecstatic because they no longer have to invest that time and >>I can't >>let you go. >>Wow, Is that all it took? I would sooner. It is a lot of times right, the simple things that have the huge, a huge improvement in kind of getting away from this repetitive work, which is under the theme we keep hearing over and over and over again. >>No, that's absolute. That's absolutely true. And it is really little things can have a big impact or Or or the analogy I sometimes will use is if you're creating a puzzle or if you have kids and you've ever built, you know, the X wing fighter set. If you're missing a few pieces, it's just not the same, right It just right. You can't kind of complete the work and so sometimes just completing that play for customers, giving them that that last piece they need to really go in power. Their workflow is is really cute. >>And I also think because we're living at a time where we have way demand so much from technology in our personal lives, and it delivers most for most. For the most part, our lives are pretty seamless and the way we can order things from anywhere. And so when we have, when we deal with these little aggravations at work, it's just that much more so. One of the things you said on the main stage is that customers are not shy about telling you what they want. So I want to hear from you how you solicit feedback and your process for making these changes for >>way actually, have >>we actually have a bunch of different mechanisms? We used to listen a customer, and I actually call it customer signal because it comes from a lot of different places. Way have kind of foundation. Aly we have a process actually called enhancement request. So many of our customers can go in our community and actually submit a form and say I really want you to build this Andi, That's very intentional, like there's no confusion, and usually they're very straightforward. But beyond that, we also we have the community in general. So we monitor that we get feedback on on kind of a freefall flowing forum where they give us feedback. We have user groups that this year will due north of 40 user groups around the world, where we bring collections of customers together, many time hosted at different customer locations, and customs will talk and share best practices and give us feedback on things that they'd like to see. I spend a ton of time out in the field with customers just visiting with them, talking about their use cases, helping themselves problems on and importantly, we have AH product advisory Council and a customer advisory board. And these air both specific groups of customer smaller groups that we've recruited and we actually use them tow, consult with us very closely to give us kind of overall direction. And then probably the most valuable feedback once we know where we want to go is once we start building, we have a private beta program, and then what we call an early adopter program. Both of those enroll customers in interacting with things were building before they're launched. And that gives us a chance to get real time feedback into what they like. What? They don't know what we need to improve. And sometimes the product will stay in in that private beta phase for longer than we expected, because the signal we get requires that we make changes. So we think that's really important to make sure we actually hit the mark. Because if you if you're on, if you're not satisfied, customer need or solving a problem, >>they're not gonna buy. What's the point? You're >>surely gonna get a lot of customers signal here at >>engaged over the next couple of Absolutely. And they're absolutely not shy. Every time I'm running some, it's like, Oh, we love this. And here's the 10 things I want that exactly. >>Thank you so much for coming on the Cubans. Pleasure having you >>my pleasure. Thanks for having me. And thanks for being here. It engaged. Thanks >>for having us. Great. >>I'm Rebecca Knight for Jeff. Rick, You are watching the cube. Stay tuned

>> Announcer: From Austin, Texas, it's theCUBE Covering Pure Storage Accelerate 2019. Brought to you by Pure Storage. >> Welcome back to theCUBE, Lisa Martin live on the Pure Accelerate floor in Austin, Texas. Dave Vellante is joining me and we're pleased to welcome a couple of guests from Core Scientific for the first time to theCUBE. We have Jim Benedetto, Chief Data Officer and John Curran, the SVP of Business Development. Gentlemen, welcome to theCUBE. >> Both: Thank you. >> Pleasure to be here. >> So John, we're going to start with you. Give our audience an overview of who Core Scientific is, what you guys do, what you deliver. >> Sure, well, we're a two year old start up. Headquartered out of Bellevue, Washington and we really focus on two primary businesses. We have a blockchain business and we have an AI business. In blockchain, we are one of the largest blockchain cryptocurrency hosting companies in North America. We've got facilities, four facilities in North Carolina, South Carolina, Georgia, and Kentucky. And really the business there is helping companies to be able to take advantage of blockchain and then position them for the future, you know. And then on the AI side of our business, really we operate that in two ways. One is we can also co-locate and host people, just like we do on the blockchain side. But primarily, we're focused on creating a public cloud focused on GPU centric computing and artificial intelligence and we're there to help really usher in the new age of AI. >> So you guys you founded, you said two years ago. >> Yes. >> From what I can tell you haven't raised a ton of dough. Is that true or are you guys quiet about that? >> John: We're very well capitalized. >> Okay, so it hasn't hit crunch base yet. >> Yeah, no. So we're a very well capitalized company. We've got, you know, to give you-- >> 'Cause what you do is not cheap. >> No, no, we've got about 675 megawatts of power under contract so each one of our facilities is about 50 megawatts plus in size. So no, it's not cheap. They're large installations and large build outs. >> And to even give you a comparison, a standard data center is about five to 10 megawatts. We won't even look at a facility or a plot of land unless we can supply at least 50 megawatts of power. >> So I was going to ask you kind of describe what's different between sort of blockchain hosting at conventional data bases or data centers. You kind of just did, but are there other sort of technical factors that you guys consider? >> Absolutely. We custom build our own data centers from the ground up. We've got patent pending technology, and if you look at virtually every data center in the world today, it's built with one thing at it's core and that's the CPU. The CPU is fundamentally different than the GPU and if you try to retrofit CPU based data centers for GPUs you're not going to fully maximize the performance and the capabilities of the GPU. So we build from the ground up data centers focused with the GPU at the center and not the CPU at the center. >> And is center in quotes because I mean, you have all this alternative processing, GPUs in particular that are popping up all over the place. As opposed to traditional CPU, which is, okay, just jam as much as I can on the real estate as possible, is that a factor? >> Well there's also a lot, the GPU at the center but there's also a lot of supporting infrastructure. So you got to look at first off the power density is very, very different. GPU, they require significantly a lot more power than CPUs do and then also just from a fluid dynamic prospective, it's very, the heating and cooling of them is again fundamentally different. You're not looking at standard hot, cold aisles and raised floors. But the overall goal also is to be able to provide a supporting infrastructure, which is from an AI ready design, is the interconnected networking and also the incredibly fast storage behind it. Because the name of the game with GPUs is different than with CPUs. With GPUs, the one thing you want to do is you want to get as much data into the GPU as fast as possible. Because compute will very rarely be your limiting factor with the GPU so the supporting infrastructure is significantly more important than it is when you're dealing with CPUs. >> So the standard narrative is, well, I don't know about cryptocurrency but the underlying technology of blockchain has a lot of potential. I personally think they're very much related and I wonder if you guys can comment on that. You started during the real, sort of the latest, most recent sort of big uptick, I know it's bounced back in cryptocurrency and so must you must've had a lot of activity in really, in your early days. And then maybe the crypto winter affected you, maybe it didn't. Some of those companies were so well capitalized, it was kind of their time to innovate, right? And yeah, there were some bad actors but that's really not the core of it. So I wonder what you guys have seen in the blockchain market. We'll get to AI and Pure and all that other stuff but this is a great topic, so I wonder if you could comment. >> So you know, yes, there's certainly classicality in the blockchain market, right? I think one of the key things is being well capitalized allows you to invest through the down turns to position to come out stronger as the market came out and you know, we've certainly seen that. Our growth in blockchain continues to really be substantial. And you know, we're making all the right strategic investments, right? Whether it's blockchain or AI, because you have such significant power requirements you know, you got to be very strategic about where you put the facilities. You're looking for facilities that have large sustained power capabilities, green. You know we've seen carbon taxes come in, that'll adversely affect folks. We want to make sure we're positioned for long term in terms of the capabilities. And then some geo political uncertainty is certainly affected, you know. The blockchain side of the business and it's driven more business to North America which has been fantastic for us. >> To me you're hosting innovation, you're talking blockchain and AI and like you're saying include crypto in there, you have some cryptocurrency guys, right? >> We do blockchain or cryptocurrency mining for ourselves as well. >> For yourselves, okay. But so my take on it is a whole new internet is being built and the crypto craze actually has funded a lot of that innovation. New protocol, when's the last time, the protocols of the internet, SMTP, HTDP, they're all government funded or education funded, academic institutions and the big internet companies sort of co-opted them. So you had a dirt of innovation, that's now come back. And you guys are hosting that innovation, that's kind of how I look at it. And I feel like we've seated the base and there's going to be this massive explosion of innovation, both in blockchain, crypto, AI automation and you're in the heart of it. >> Yeah I agree, I think cryptocurrencies or digital currencies are really just the first successful experiment of the blockchain and I agree with you, I think that is is as revolutionary and is going to change as many industries as the internet did and we're still very in a nascent stage of the technology but at Core, we're working to position ourselves to really be the underlying platform, almost like the alchemy of the early days of the internet. The underlying platform and the plumbing for both blockchain and AI applications. >> Right, whether it's smart contracts, like I say, new innovation, AI, it's all powering next generation of distributed apps. Really okay, so, sorry, I love this topic. >> I know you do. (laughs) >> Okay so where do these guys fit in? >> John: So do we. >> I mean, it's just so exciting. I think it's misunderstood. I mean the people who are into it are believers. I mean like myself, I really believe in a value store, I believe in smart contracts, immutability, you know, and I believe in responsibility too and that other good stuff but so. >> Innovation in private blockchain is just starting. If you look at it, I think there's going to be multiple waves in the blockchain side and we want to be there to make sure that we're helping power and position folks from both an infrastructure as well as a software perspective. >> Every financial institution, you got VMware doing stuff, Libra, I love Libra even though it's getting a lot of criticism, it just shined a light on the whole topic but bring us back to sort of commercial mainstream, what are you guys doing here, what's going on with Pure? >> So we have built, we're the first AI ready certified data center and we've actually partnered very closely with Pure and INVIDIA. As we went through the selection process of what type of storage we're going to be using to back our GPUs, we went through a variety of different evaluation criteria and Pure came out ahead and we've decided that we're going with Pure and we, again, for me it boils down to one thing as a Chief Data Officer is how much data can I get into those GPUs as fast as possible? And what you see is if you look at a existing, current Cloud providers, you'll see that their retro fitting CPU based centers for GPUs and you see a lot of problems with that where the storage that they provide is not fast enough to drive quote unquote warm or cold data into the GPUs so people end up adding more and more GPUs, it's actually just increased GPU memory when they're usually running around a couple percents, like one or two percent, five percent compute but you have to add more just for the memory because the storage is so slow. >> So you, how Jim you were saying before when we were chatting earlier, that you have had 20 years of experience looking at different storage vendors, working with them, what were some of the criteria, you talked about the speed and the performance, but in terms of, you also mentioned John that green was, is an important component of the way that you build data centers, where was Pure's vision on sustainability, ever green, where was that a factor in the decision to go with Pure? >> If you look at Pure's power density requirements and things like that, I think it's important. One thing that also, and this does apply from the sustainability perspective, where a lot of other storage vendors say that they're horizontally scalable forever but they're actually running different heads and in a variety of different ways. Pure is the only storage vendor that I've ever come across that is truly horizontally scalable. And when you start to try to build stuff like that you get into all the different things of super computing where you got, you know, split brain scenarios and fencing and it's very complex but their ability to scale horizontally with just, not even disc, but just the storage is something that was really important to us. >> I think the other thing that's certainly interesting for our customers is you're looking at important workloads that they're driving out and so the ability to do in place upgrades, business continuity, right, to make sure that we're able to deliver them technology that doesn't disrupt their business when their business needs the results, it's critically important so Pure is a great choice for us from that perspective and the innovations they're driving on that side of the business has really been helpful. >> I read a stat on the Pure website where users of Core Scientific infrastructure are seeing performance improvements of up to 800%. Are you delighting the heck out of data scientists now? >> Yeah, I mean. >> Are those the primary users? >> That is, it again references what we see with people using GPUs in the public Cloud. Again, going back to the thing that I keep hammering on, driving data into that GPU. We had one customer that had somewhere 14 or 15 GPUs running an analytics application in the public Cloud and we told them keep all your CPU compute in one of the largest Cloud providers but move just your GPU compute to us and they went from 14 or 15 GPUs down to two. GV-100 and a DGX-1 and backed by Pure Storage with Arista and from 14 GPUs to two GPUs, they saw an 800% in performance. >> Wow. >> And there's a really important additional part to that, let's say if I'm running a dashboard or running a query and a .5 second query gets an 800% increase in performance, how much do I really care? Now if I'm the guy running a 100 queries every single day, I probably do but it's not just that, it's the fact that it allows, it doesn't just speed up things, it allows you to look at data you were never able to look at before. So it's not just that they have an 800% performance increase, it's that instead of having tables with 100s of millions of rows, they now can have tables with billions of rows. So data that was previously not looked at before, data that was previously not turned into the actionable information to help drive their business, is now, they're now getting visibility into data they didn't have access to before. >> So you're a CDO that, it sounds like you have technical chops. >> Yeah, I'm a tech nerd at heart. >> It's kind rare actually for a CDO, I've interviewed a lot of CDOs and most of them are kind of come from a data quality background or a governance and compliance world, they don't dress like you (laughs) They dress like I do. (laughs) Even quite a bit better. But the reason I ask that, it sounds like you're a different type of CDO, like even a business like yours, I almost think you're a data scientist. So describe your role. >> I've actually held, I was with the company from the beginning so I've held quite a few roles actually. I think this might be my third title at this point. >> Okay. >> But in general, I'm a very technical person. I'm hands on, I love technology. I've held CTO titles in the past as well. >> Dave: Right. >> But I kind of, I've always been very interested in data and interested in storage because that's where data lives and it's a great fit for me. >> So I've always been interested in this because you know the narrative is that CDOs shouldn't be technical, they should be business and I get all that but the flip side of that is when you talk to CDOs about AI projects, which is you know, not digital transformation but specifically AI projects, they're not, most CDOs in healthcare, financial services, even government, they're not intimately involved, they're kind of like yeah, Chief Data Officer, we'll let you know when we have a data quality problem and I don't think that's right. I mean the CDO should be intimately involved. >> I agree. >> In those AI projects. >> I think a lot of times if you ask them, you ask, a lot of people, they'll say are you interested in deploying AI in your organization? And the answer is 100% yes and then the next follow up question is what would you like to do with it? And most of the time the answer is we don't know. I don't know. So what I have found is I go into organizations, I don't ask if people want to use AI, I ask what are your problems and I think what problems are you facing, what KPIs are you trying to optimize for and there are some of those problems, there are some problems on that list that might not be able to be helped by AI but usually there are problems on that list that can be helped by AI with the right data and the right place. >> So my translation of what you're asking is how can you make more money? (laughs) >> That what it comes down to. >> That's what you're asking, how can you cut costs or raise revenue, that's really ultimately what you're getting to. >> Data. >> Find new customers. I think the other interesting thing about our partnership with Pure and especially with regards to AIRE, AIRE's is an exciting technology but for a lot of companies is they're looking to get started in AI, there's almost this moment of pause, of how do I get started and then if I look at some of the greatest technology out there, it's like, okay, well now I have to retrofit my data center to get it in there, right. There's a bunch of technical barriers that slow down the progression and what we've been able to do with AIRE and the Cloud is really to be able to help people jumpstart, to get started right away. So rather than you know, let me think for six months or 12 months or 18 months on what would I analyze, start analyzing, get started and you can do it on a very cost effective outback's model as opposed to a capital intensive CAMP-X model. >> Alright, so I got to ask you. >> Yeah. >> And Pure will be pissed off I'm asking this question because you're talking about AIRE as a, it's real and I want some color on that but I felt like when the first announcement came out with Invida, it was rushed so that Pure could have another first. (laughs) Ink was drying, like we beat the competition but the way you're talking is AIRE is real, you're using it, it's a tangible solution. It's a value to your business. >> It's a core solution in our facility. >> Dave: It's a year ago. >> It's a core thing that we go to market with and it's something that you know, we're seeing customer demand to go out and really start to drive some business value. So you know, absolutely. >> A core component of helping them jumpstart that AI. Well you guys just, I think an hour or so ago, announced your new partnership level with Pure. John, take us away as we wrap here with the news please. >> Yeah, so well we're really excited. We're one of a handful of elite level MSP partners for Pure. I think there's only a few of us in the world so that's something and we're really the one who is focused on bringing ARIE to the Cloud and so it's a unique partnership. It's a deep partnership and it allows us to really coordinate our technical teams, our sales teams, you know, and be able to bring this technology across the industry and so we're excited, it's just the start but it's a great start and we're looking forward to nothing but upside from here. >> Fantastic, you'll have to come back guys and talk to us about a customer's who's done a jumpstart with ARIE and just taking the world by storm. So we thank you both for stopping by theCUBE. >> Absolutely, we'll love to do that. >> Lisa: Alright John, Jim, thank you so much for your time. >> Thank you. >> Absolutely. >> John: Really appreciate it. >> For Dave Vellante, I'm Lisa Martin, you're watching theCUBE from Pure Accelerate 2019. (upbeat techno music)

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Welcome back to two cubes. Live coverage in San Francisco, California for VM World 2019. I'm John Ferrier, Postal Cuba David Lattin, My Coast, Dave. 10 years covering the BM World Paul Maritz laid out the stack early on. We saw that and watch it go through Its motions now >> remain from the marketing people got a hold of >> that mainframe turned into cloud Now hybrid cloud seven years after we first started about 2012 has been great Our next guest, Paul Falsone, S V. P and general manager of the Cloud Native APS. This is a business unit within VM where that is going to the next level. This is the Act three is Jerry Chen said any of you I talked earlier for VM wears a company. I won't say moving up the staff because there is no stack. It's cloud, right? So its applications on top of operating infrastructure Dev ops going enterprise scale is about developers building APS operating them in scale. This is a big focus of what you're doing. >> It is a dead end of the day. One of my close friend of mine, who's in front of customers all the time, reminds our team constantly that our customers applications matter of the most cause. That's what they used to get in front of their customers with the Dillman teams and the tools they're building the user. Japs come second cause that's what supports the abs. And then the infrastructure comes third zone away. There is that stacks it, but never forget you were at the bottom of the pecking order, if you will, when it comes to ultimately bringing full customer value to our company, our customers, businesses. >> And it's one of the things we've been looking back at our 10 years covering VM where I think you're 13 15 of'em world is that the virtual ization of all very quickly around really optimizing server virtualization really kind of change. The game of one kind of knows that our knows the history there, but it did it without any code changes, too, APs and I think that was a very innovative thing. Now we looking containers and what Kubernetes is bringing to the table. You're starting to get some clear visibility into what's happening and what's possible. Could >> you >> share your vision on what that visibility is that you guys are eyeing for the marketplace in four of'em, where, >> sure, the APP development methodologies are changing, changing more today than they have in the last 20 years. We're seeing ah lot of new concepts and approaches that right now really only accessible to a small percentage of application developers worldwide. We want to try to bring those application development methodologies, practices tools to the mainstream so we can. We can touch the 13 or $14 million.1,000,000 enterprise developers around the world and help the CEOs in their line of business counterparts at our customers get a CZ much productivity out of their development teams as possible. At the end of the day, those APS we're gonna power the next decade of those organizations success or failures with their customers, and so that's becoming a real competitive asset. I've had a number of customer discussions here this week where the primary theme is how me help my developers move faster at enterprise scale, but in a regulated environment in an environment where compliance is is front center >> to big things going on in your world that we covered extensively, honestly, pretty impactful to the Vienna, where portfolio one as open source and hefty oh, acquisition half a billion dollars almost a year ago, about a year left in less than a year, probably was that we close in December last year. So yes, ovary. Just recently we know those guys all people. I mean, I've been covering that for a while, and then I'll see the pivotal acquisition. Just announced a drink from the fire hose. There be doing tons of press briefings, those to impact points, kind of leaving a mark. >> So we've been we've been building up to this. I joined AA Drink them were in 2012 through the Sierra acquisition, but I moved into this role about just about three years ago, and one of the things that we identified early on was, ah, close partnership with Pivotal was going to be essential inside of the Del Technologies umbrella for us to exist in thrive together. And so that's where the idea for P Cass was born. So the combination of V. M. R. R and D with pivotal RND focused on delivering our first community service to our enterprise. Customers we brought helped you in last year. Once they saw what we were doing and thought about the possibility of what would happen if we actually took some of the concepts of communities and p ks and embed them into V sphere, That was, I think, the real ah ha moment for for us and the happier team coming together in the power of what that could enable. But all along the way, we always believed that that was just covering the infrastructure side of the equation. You still needed to get through the making the APP developers productive and efficient in this new infrastructure world and so on to be able to do so on any cloud. And that's where the pivotal piece finally came together last just last month. July Pivotal put out a lot of information in the market around how they're evolving their portfolio to be very cool, bernetti centric, moving forward. And that was a big part about getting all the pieces lined up so that the M word could deliver what we announced this week. The in the town's a portfolio with the component tree for building running in managing modern applications on any club, >> we've kind of come full circle here, predates, and I Sarah, But you guys talking about the stack? Yeah. Paul Moretz. I used to have the whole stack. Ed actually applications up here with Simba. Spring sources around. Exactly. And then you had these when I used to call the misfit toys. Have you had some assets in the M. C as coming in Vienna, where Paul Maritz, Joe Tucci decided, create pivotal as the The platform developed next generation applications. Now it's all come full circle there. So my question is related to that stack and particularly the death part of that stack. This audience is not Deb's not, but increasingly, you've gotta attract that audience. So what's what's your thoughts there? And so >> I think pivotals done a very nice job over the years through the Con Foundry Foundation. The work they've done there through the spring community Spring is at this stage is is arguably the most popular modern Java development environment on the planet. So, you know, we're seeing a tremendous amount of leverage of that of that framework and so between the events of pimples is actively involved in Leeds and their ability to help customers, um teach their enterprise developers how to get the most out of this modern tool kit. We think that there is some wonderful ingredients to a recipe to really scale this thing up in a big way. We way. I also believe that Veum we're still has a lot to learn about what it means to best support enterprise developers and their organizations. And so we are quite a bit in learning mode right now. We're gonna take a lot of lessons from the pivotal team as we as we move forward towards the close and learn a lot more about the team in the culture and their customer engagements. But one of the things I think is is front and center to what pivotal has for customers today is their transformation Service's customers. You've got different groups inside a customer summer looking to build the newest applications. Some of them are just trying to get more operational efficiency out of what they have today. Some of these customers have 12,000 applications in their environments. Um, pivotal has ah set of service is that come in and they help them take their existing monolithic applications and just modernize key components of them so they can operate them more efficiently and reclaim a lot of resources to go do other things. That, I think is probably the lowest hanging fruit for enterprise organizations today. And I'm very, very excited about the service is that pimple has to make available the customers on that front. >> Assad and Jerry Chen, earlier than the other set I was mentioning earlier is a VC now, Greylock, big time to your one. We see former VM Where, uh, guy from 22,003. He also worked on cloud foundries in sight. We ask about the white spaces where starts to thrive in one of the transit is kind of pointing to was have some cummings going public. Some are being bought at sizable numbers, but we rift on. The idea of monitoring was a boring category right now. Observe ability, which is just be monitoring 2.0, you got I pose. You got acquisitions. I mean, major action happening in this observe ability space. I bring this up because that's an area you think, Oh, it's a white space Data opportunities for companies to build service is really points to this cloud. 2.0 application Renaissance And I want to get your thoughts on that environment. What needs to be in place to make that happen? Honestly, pivotals keep for you guys. I get that on Vienna. Where side, but for the ecosystem and for the marketplace, people trying to make careers and or do things What is that cloud 2.0, complexity that need to be abstracted away or >> so The Pepto team had a great Craig and Joe had this great, uh, one liner on kubernetes is all about where the people structure meets the infrastructure. When you think about that, our enterprise organizations have thousands if not tens of thousands of developers all trying to do similar. But a lot of cases different things at the same time, across lots of different cloud infrastructures. On the infrastructure team side, you've got private cloud, you've got hybrid cloud. You've got public cloud environments that you have to get your arms around, monitor, manage, secure and get visibility into. We believe that Carini sits at that perfect layer between the two domains on. This is a big part of why we developed Tom's a mission control. It's just that that perfect layer between the two domains, too, access the company's later and give you full visibility into what all of your developers were doing on every piece of your infrastructure. And we also think that's gonna be a very interesting place for third parties to plug into to gain access to all of the community's clusters that we're helping. Our customers managed across their app landscape to do very interesting things. And so we're really excited about the ecosystem that that project will open up. >> You think this opportunity to start ups in there? >> I do. I do. I think there's a ton of other I mean, think about it just really basic math. Ah, VM based application. When it gets containerized, it has just on the compute side alone. Never mind the networking in the storage site. There are 10 times as many moving parts. A typical containerized EPA's 10 times as many moving parts as avian bay Step. If you think about that applied to the networking layer, you think about that applied to the storage layer, the security layer. You've got 10 times as many points to secure. Now, how do you get your head around that level of complexity As a an operations person, you can't do it. Humans can't do it anywhere. You can't write down your actions. Control this on a pad of paper and know what's what's accessing what anymore, >> Dave. One more question, if I may, on the on the VM container thing, there's a debate or are architectural kind of conversation, and customers are having around when to do containers in three days on bare metal or with V EMS. How do you guys talk to that house? The >> steam going because that was my question. So there was a snarky tweets yesterday. I want to get your reaction to it. And the tweet was during yesterday's keynote. I thought we we launched pivotal so that we didn't have to run containers on V EMS. Now the reality to your point is that people are running containers on bare metal. They're running him on vehement the EMS. I don't have any data, but I wonder if you could comment on that >> so way Probably have a couple of snarky comments of our own on this three share one of the things that put up on stage. Yes, I'll start at the kind of a little little. And I worked my way up at the base layer. The testing we're doing with Project Pacific, which is something we announced this week, which is effectively bringing kubernetes into the heart of the sphere. We're actually using combinations to make the sphere better. We're also going to expose communities to our customers through V sphere, just like we exposed the EMS today. This is a pretty exciting project for the for the company in our early testing of this project, based on the advanced scheduling capabilities of the SX hyper visor take advantage of modern hardware. We're seeing an 8% better performance in a certain test sweet versus what you'd see on bare metal so are ready at the early stages. We're seeing some benefits now take that a step further. The big public college for writers out there if you look at service is like G K on Google. If you look at a ks, uh, recast on Amazon, a cast on his door, every single one of their community service is is run against a virtualized environment, not on a bare metal environment. Why is that? Well, because their customers are using containers in VM, side by side, the flexibility you get out of that virtualization layer. Whether you're a big public cloud provider or your ah smaller enterprise shop running your own data centers, the benefits are proportionate, rather equal on dso >> the narratives off a little bit. What you're saying. What I hear you saying is people use virtualization for a lot of efficiency and scale reasons that's independent of what happens with bearnaise decisions. So if you decide you want to run Cubans on bare metal, go >> to go to town. We think >> if you want to do that, >> you want to do that. But we don't. We actually see a lot of customers who have started down that path. When they go to get to that operational stage, they're realizing they're now dealing with firm where again, they're dealing with Nick drivers again. They're dealing with stuff, and they can easily take that and turn it over to their ops team that's already managing a huge virtualized state and operated with the same tool. >> That's a really a layer thing around round scale. You do the virtual ization for Ryan reasons, and then cos sits on top of it for a whole another reason. >> And the I'd say its operations scale these operations teams need to, you know, just look at the number of announcements we made this week. For an ops team to get their head around all of these new technologies simultaneously is impossible to bring them in one new capability of time into the thing that they're already operating for. That organization is very >> positive. If I understood yesterday, you're claiming better before 8% better performance relative to bare metal. I know that's apples to apples. Or what kind of juicing you're doing on the benchmark >> sex schedule that it chooses it right there. >> I want to ask you about integration and look at it as a quasi. His story of the the industry. You go back to see A with all the acquisitions, right? Historical force it with fusion. Different layer of the stack. I know. Certainly Del did a lot of acquisitions. Some of them work. Some of them didn t m c. Same thing pretty successful. Actually. VM were great engineering. Um, very strong. Go to market on really good acquisitions. My question is on integration with the nice Sarah background, I wonder. I mean, nice. Sarah seems to be very well integrated into the VM. Where platform How is integration The state of integration today within V. M. Where is it a lot easier today because we're living in this AP I economy. What about VM? Wears sort of integration ethos. One of the challenges. I wonder if you could comment and that long. So >> I've been through, uh, to significant integrations of'em where the 1st 1 was with this nice era on. I was on the I was on the incoming side, not the receiving side. The next was with hep Theo. I was on the receiving side, not the incoming side. And so, as coming into this year, back in 2012 Pat was extremely supportive and asked his entire team to be very supportive of getting us integrated quickly and productive. A CZ fastest possible. We were on campus on the via more campus from the next era office within days of the deal closing. That's how efficient Veum work. That's like that's the mindset hammerhead coming into. We were in a building. We were co located with the other networking engineers and product managers. Within the first week on, we were off to the races. That was about 100 20 person company. Hep Ko is about 100% company, Um, about the same efficiency we were consolidating. Offices were bringing them over again, mostly distributed team, but they had a center of gravity. In Seattle. We had a center of gravity in Bellevue. We brought the team's over within within a couple of months in about three months. In three and 1/2 months in, we had the team fully integrated. The organizational design done all the tools in a greater we're all in the same systems. So what happens very quickly now, an organization that's much bigger like like pivotal 3000 employees. Public company takes a little bit longer to get from Deal announced the deal close because it's too public entities. It'll take a little bit longer to do all the integration, but we're already thinking thinking about we know them so well and they know us so well. We already know where the potential landmines are, where the potential rough spots are. Pat prides himself and, uh, this pushes down into the rest of them were on well, welcoming new team members in new groups into the company. And so we try to do that really were very culturally sensitive way optimized for the right tool kit s O that we take, we take some learning like cloud health. When they came in, they had a lot of expertise around. SAS drooling and support of customers were adopting all of that, right. Were jettisoned some of our older tools in favor of some of the things that >> we're gonna win the modernization. So I want to get your thoughts on the last question for the second congratulations, your your your area. We love what you're doing. We think it's super important. Would be covering it like a blanket this year and going forward. But Pakistan came on was wrapped. Talking about 10 years and doing the riffing on the Cube are 10 years covering it. We have some 10 years forward, which waves to be on. They highlighted on the past 10 years in this ear acquisition as a critical moment to bring VM. We're into the S T D C kind of concept started networking up, so we know the history they're sti n and then going forward, he says. If you're not a networking and security in the next wave and Kubernetes is Number one, you're really gonna be missing out. So we highlighted networking, security and kubernetes. But networking. It's nice here on both sides of that 10 year spectrum. You're part of that. >> Why is that? Why is that wise >> watching people know that networking is the most important piece of the wave here? What's the relevance of what he's saying? Share their thoughts on >> Think about the increasing complexity of what at modernization drives into the infrastructure. You're getting smaller and smaller moving parts that that need to operate together at scale in a comprehensive, logical way. But at any point in time, if you're if you're an enterprise organization, if you've got if you've got compliance requirements, audit ability, requirements. If you want to protect, you hear about the number of of small towns that get blackmailed on a daily basis because someone's secured an encrypted There, there, there count taxpayer data and they're there, their victims. All right, this is this >> is some say, cyber warfare. >> It is something. So if you think about in orderto help, our customers get the most out of their developers, these tools that open up I think the potential of a lot more avenues of attack get a lot more complex. And so we think that these two have to progress hand in hand. One. We do want to help developers go as fast as possible. We won't help enterprises get the most out of those developers. That's a big part of why we brought them were into into the damn warfare. We're bringing a pivotal into the VM. We're family, but at the same time, we recognize that the infrastructure has to progress. Every bit is fast, and the network is the thing that ties all these parts together. Whether it's a layer three year layer for networking today or level layer several networking layer seven AP I based networking in the future >> all. I mean, I'm not gonna bring up I ot or industrial i ot to takeovers of physical devices, whether it's a self driving bus off a cliff or taking over towns and cities warfare, I mean the service areas of enormous networks, Internet connectivity applications over the cloud native. Anyway, we know that, right? So a lot to talk about. Thanks for coming on. The Cube Sharing your insight. Senior Vice President, General manager, The Cloud Native APS Group. This is really the key instrument with envy em where to take kubernetes and the advancement of cloud to 0.0 to the next level. I'm John for a day. Volante, be back after this short break.

>> Live from Bellevue, Washington, it's theCUBE covering Smartsheet ENGAGE'18. Brought to you by Smartsheet. >> Welcome back to theCUBE, I am Lisa Martin with Jeff Rick and Jeff and I have been live at Smartsheet Engage all day Jeff, we're in not Vegas. >> Not Vegas. >> Bellevue, Washington, this has been a really electric event. They keynote kicked off this morning standing room only, they have doubled in only their second year they have about 2,000 attendees, 1,100 customer companies represented here, they had customers from 20 countries, they more than 50% female attendees for the second year in a row, but we've heard such great groundswell stories all day. >> Yeah, it's been a good day, Lisa. You know, there's a little bit of confusion in this space, I think there's a lot of tools around workplace productivity, we got to hear from a couple analysts and how they're reshaping the way that they define those tools and that's okay, and I get it, but there was no question about the three customers we had on and the passion that those three customers had, kind of old school shadow IT implementations, they brought the tool in from their prior work, plugged it in and are having tremendous success, even the last one, to the chagrin of the parent company that builds software to do the same thing, so there's really no substitute for that type of passion and you know, we've seen these kind of communities grow before, I remember early days at the ServiceNow, it kind of reminds me of that you know, a lot of passion, applause, applause at the new features which is is always an interesting one, so a really, really good day. >> And well, you talked about those three customers that we had on today, we had GE Renewable Energy which was our last guest, a woman from Sodexo, Sodexo is a massive, massive company and then we had a gentleman from the office of the CIO at PayPal. These are three massive companies and the interesting theme from each of them is that these were groundswell opportunities for Smartsheet to really go viral within these organizations and make massive business impact and it's interesting that it really, even from a sales perspective, when we talked to the V.P. of Strategic Accounts, this is not a top down sale, this is bottoms up. Even PayPal found it on their own and learned how to use Smartsheet from YouTube videos. >> I love that. >> That was fantastic. >> So I love, you know, everyone talks about the new way to work but what about the new workers, right? And both of those examples are really good. The PayPal one as great, office of the CIO and yet to figure it out they just watched YouTube videos which is how people learn things today, and they implemented it from that experience. They didn't call Smartsheet, they just put it in and it worked and then we just had GE on and his comment that he wanted something lightweight for his workers. Lightweight. Three click rule, he said he had a three click rule after we turned the cameras off and if he can't get it down to three clicks you got to go back to work and make the process a little bit simpler, so you know, these are real examples of real big companies implementing kind of at the departmental level where this is getting traction, and executing to drive differentiation. And that's pretty exciting regardless if you get confused about the messaging or this or that, those are real life examples. >> And there's nothing that's more validating, right? Than the voice of a customer who has used it and especially the voice of a customer who is not a developer, doesn't know what an API is or need to in their daily jobs. This is technology that was built from the ground up, back 12 years ago on the construct of a spreadsheet which so many people understand and they've really parlayed that you're comfortable here with these tools, there's going to be like, you were talking a lot about today very smart that you brought up, I've got so many apps open and I think Forrester said between 13 and 30 apps people have open every day, so you can't really compete for that mind share so in terms of differentiation we've heard from Smartsheet themselves that they collaborate with companies that you'd think would be their competition. >> Right. >> But they understand that how this is starting from this groundswell, they have to be able to collaborate, to integrate, to connect with Slack, Microsoft teams, Office365, CRM systems from Microsoft, Salesforce, because that's how the worker needs to see their information, and they're also giving users the ability to configure, I want to see this, my team might want to see something completely different, and we can do that while sharing the same information. >> Right, right. I think the thing that struck me as really the big competitive differentiator in this kind of, work-group management is the going outside your four walls. If you use Salesforce, if you use even G-Suite, every time I send you an email it says, Lisa's not in your G-Suite are you sure? Are you sure? Like, red flag, I'm doing something wrong, the fact that the Smartsheet licensing structure is set up that if I set up a project I can share it to people outside of my organization. They can participate in that project. A, it just makes a lot of sense 'cause more and more projects right? You've got contractors, you've got partners, you've got all these things. It's not just an isolated instance anymore but then, more importantly, for Smartsheet, it just gives exposure to the tool to a new group of people. So, I think that's a really key part of the story here, that again maybe count as under the covers in terms as some of the messaging, but a real key differentiator, we've seen this type of viral growth before. I used to work for an Atlassian Service Provider and Atlassian had a great, kind of, seed strategy. $10 for 10 licenses and the $10 goes for schools in Africa. Brilliant. Who doesn't want to pay 10 bucks to help such a worthy cause, and then to seed it in. And then people that had success with the tool, it goes with them. You know, we heard that here the last gentleman from GE used it at a prior company, brought it over, wanted a lightweight tool not a big ERP tool implemented, and now he's running, he said $100 million in assets more effectively than he could before. >> Exactly, but will you talk about in terms of that big differentiator, their ability to, if I'm a Smartsheet user and you're not, I can share something with you and we can collaborate. They've got, I think I read over the weekend, 650,000 active individual users, but they have about 3,000,000 people that are collaborators. And I think it was Mark Mader, the CEO, this morning, that shared with us. That's 40% of their business. They have a massive pipeline by just enabling this collaboration and the ability for a user who's paying license to share with a colleague that isn't. >> Right. And then this is always the small conferences, 2,000 people, still new, people are super passionate, it's not a big vendor show, it's not a big expo hall show, but people are super engaged and sharing information and you get that in kind of the early days of these conferences, which is a really neat thing to see and there's no substitute for passionate customers, at the end of the day that's all they can really hope for, and that's the validation you need to move forward. >> Absolutely and they had, I think, almost 50 customer speakers today and I know how incredibly difficult it is for a marketing team to find 10 customers. >> Yeah, you know that right? >> Right. To speak. >> To speak. >> Let alone what multiplier you need to have to get 50, four x? Maybe not here. It seems like these people that are users, PayPal, and Cisco, and Sodexo, and GE Renewable Energy, have found this on their own and are really kind of creating this virality that is, it was very infectious, contagious. >> Yeah. >> By the day. >> Which is amazing to me because there's, again, there's so many applications out there, and they don't all do the same thing and they all have pros and cons. But, to be able to find it to be able to deliver success and again another important piece at any rate in with those existing systems that already are in play. Mark was very clear, we're not expecting you to throw out the apps that you have, you may or may not be able to display some with Smartsheet, but we really want to work with them, right. We want to play together, not necessarily play separate. And again, you have to do that to be successful in 2018. >> And they're listening to their customers. They have to do that to be successful, that's driven by the customers, it's clear that, there's a push pull effect and it's going to vary based on the enterprise and their overall objectives, but their collaboration with customers to develop and prioritize all of the enhancements that people have been asking for for the last year since the first Engage was really, you felt that, you heard it. There was a lot of applause during the product announcement session this morning. They are listening, they're taking that feedback in and ultimately, what their VP of customer success talked about is they're driving change management and that is extremely difficult, culturally, to be able to do. >> It's people, right? I mean, they said it right out the top. Empower everyone to improve how they work, connect, innovate, and execute. I've said it time and time again, we do a lot of shows, I think that's a pretty straightforward path to give more people more data, the tools to manipulate the data and get the answers, and then most importantly, the authority and power to execute those decisions, especially when you're close to the customer. That's where good things happen. That's where the organization moves forward and you can't be centralized command and control everything 'cause it's moving way too fast. >> Right, right. >> Way too fast. >> Well, Jeff, I had a blast hosting with you all day today. Learned a lot, my perspective is really opened up about Smartsheet and what it is and how it can really drive a lot of transformation and accelerate digital transformation. >> I can't help but again go back to the line from Google Cloud, right? People want to move to judgment, less drudgery more judgment. That's what they're enabling here at Smartsheet and we're excited to be here and cover it and can't wait until next year. >> Awesome, thanks Jeff. Again, Lisa Martin with Jeff Rick. Thanks for watching our coverage of Smartsheet Engage 2018, from Bellevue Washington, we'll see you next time. (upbeat music)