from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape the imperative to protect data has never been more pressing as companies transform themselves from businesses into digital businesses the intrinsic value of their data Rises exponentially the problem for infrastructure pros is that everything in IT is additive it seems like nothing ever dies which means more things to manage now think about that when you're protecting data you have bare metal VMs now containers you've got cloud you got to worry about the edge all this data needs to be protected not only does this increase complexity it expands the attack surface for adversaries wanting to steal or ransom your data at the heart of all this is a build out of a massively global distributed cloud we saw wave 1 of the cloud which was public wave 2 was really hybrid and that's evolving now in parallel you're seeing the emergence of multi cloud and as I said these earlier trends are additive they're not replacements and with me to discuss these important issues and how Dell EMC specifically is pivoting toward cloud data protection is Beth Phelan who was the president of Dell emcs Data Protection Division that's great to see you well good to be here again so we know the world is hybrid it's a fundamental the on-prem stuff is part of the fundamental digital digital transformations of these these companies and now you've got data protection for the cloud so what do you see happening in that world yeah let's start with what we're seeing in the market we recently remade our global data protection index we've been doing it for many years and we've been really using that to help us understand the landscape and what our customers need and first not surprisingly it shows that continued trend of movement and reliance towards cloud environments for business applications sure continuing to increase on top of that the customers despite that are continuing to struggle with ensuring they have the right data protection for their cloud environments right so they're they're struggling you see that we see that as well what what's going on there Wow what is the data tell you yeah first of all more than half the customers don't have a comprehensive data protection solution for their Salas cloud native and multi cloud environments more than two-thirds of the customers who may be relying on their cloud service providers for data protection say that they do not have a solution that covers all of their workloads so whether they're working with a cloud service provider or some other vendor they're being really clear that they do not have a comprehensive approach to cloud data protection yeah so I mean you see the cloud adoption is going like crazy but it seems like the data protection component is lagging how is that affecting the traction in your business yeah you know it's a double-edged sword right on one level customers see the advantages of moving to a cloud but on the other hand you know they are really looking for vendors that they can partner with to still have the same confidence that the data is protected that they have on Prem and what we're seeing now is that customers are turning to us to help solve that problem we have over a thousand customers using Dell EMC for their Cloud Data Protection and we're narrowing in on three exabytes of data that we're currently protecting in the cloud so it's happening yeah that's pretty good traction so I want to talk about VMware obviously VMware is the linchpin of many customers hybrid strategy and it's a clearly an important component of Dell technologies talk a little bit about the relationship between Dell EMC data protection specifically and VMware I'm interested in you know they've announced project tenzou and there's kubernetes how are you guys working together to really deliver a value for customers so we are super excited about the opportunity to work so closely with VMware because as their in their domain we're working directly with them and that's an advantage that comes with being part of the dell technologies family and so we were the first company to bring data protection for were kubernetes environments out to market it's available now so you'll see us bring that into the tan zoom mission-critical has been moved forward partnering closely with with VMware and of course we're already fully certified for VMware cloud it's really an ongoing regular conversation about how we can work together to bring the best to our customers so Beth I gotta ask you so you're part of your role as the leader of the the division is obviously you got a you got a lot of mouths to feed big division you got to make your plan you got to deliver for customers but strategy is another key component of this how do all these cloud trends shape your strategy so core to our strategy is to be the essential provider of data protection for multi cloud environments so no matter where customers are choosing to deploy their applications they can have the same confidence that they always did that that data is protected and the way they can get it back so that's core and if you want three words to remember for our strategy think VMware cloud and cyber cloud is central to it and you're gonna be hearing a lot more about it in the weeks and months ahead okay so I gotta ask you break out your binoculars maybe even the telescope what are the future what are the futures look like when you think about the division and the market so we've been talking about cloud for a long time but we are still in the middle of this journey customers are going to rely on the cloud even more for additional use cases and especially in the data protection space right now we're seeing backup to the cloud dr to the cloud but the future will include cyber resiliency that's leveraging cloud deployments you're also going to see more and more of an emphasis on people leveraging SAS for their software consumption and for us that means not only protecting SAS applications but it also means giving customers the option to consume data protection in a SAS model we already do that today with things like cloud snapshot manager with things like the power protect management and orchestration but you're going to see us do even more of that because they're just incredible benefits of people leveraging sass to consume their software data constantly evolving lamps landscape data protection has to evolve with it that thanks so much for her thank you thank you keep it right there we'll be right back right after this short break

from the silicon angle media office in Boston Massachusetts it's the cube now here's your host David on tape the imperative to protect data has never been more pressing as companies transform themselves from businesses into digital businesses the intrinsic value of their data Rises exponentially the problem for infrastructure pros is that everything in IT is additive it seems like nothing ever dies which means more things to manage now think about that when you're protecting data you have bare metal VMs now containers you've got cloud you got to worry about the edge all this data needs to be protected not only does this increase complexity it expands the attack surface for adversaries wanting to steal or ransom your data at the heart of all this is a build out of a massively global distributed cloud we saw wave 1 of the cloud which was public wave 2 was really hybrid and that's evolving now in parallel you're seeing the emergence of multi cloud and as I said these earlier trends are additive they're not replacements and with me to discuss these important issues and how Dell EMC specifically is pivoting toward cloud data protection is Beth Phelan who is the president of Dell emcs Data Protection Division that's great to see you well good to be here again so we know the world is hybrid it's a fundamental the on-prem stuff is part of the fundamental digital digital transformations of these these companies and now you've got data protection for the cloud so what do you see happening in that world yeah let's start with what we're seeing in the market we recently remade on our global data protection index we've been doing it for many years and we've been really using that to help us understand the landscape and what our customers need and first not surprisingly it shows that continued trend of movement and reliance towards cloud environments for business applications continuing to increase on top of that the customers despite that are continuing to struggle with ensuring they have the right data protection for their cloud environments right so they're they're struggling you see that we see that as well what what's going on there well what is the data tell you yeah first of all more than half of the customers don't have a comprehensive data protection solution for their Salas cloud native and multi cloud environments more than two-thirds of the customers who may be relying on their cloud service providers for data protection say that they do not have a solution that covers all of their workloads so whether they're working with a cloud service provider or some other vendor they're being really clear that they do not have a comprehensive approach to cloud data protection yeah so I mean you see the cloud adoption is going like crazy but it seems like the data protection component is lagging how is that affecting the traction in your business yeah you know it's a double-edged sword right on one level customers see the advantages of moving to a cloud on the other hand you know they are really looking for vendors that they can partner with to still have the same confidence that the data is protected that they have on Prem and what we're seeing now is that customers are turning to us to help solve that problem we have over a thousand customers using Dell EMC for their Cloud Data Protection and we're narrowing in on three exabyte the data that we're currently protecting in the cloud so it's happening yeah that's pretty good traction so I want to talk about VMware obviously VMware is the linchpin of many customers hybrid strategy and it's a clearly an important component of Dell technologies talk a little bit about the relationship between Dell EMC data protection specifically and VMware I'm interested in you know they've announced project tenzou and there's kubernetes how are you guys working together to really deliver a value for customers so we are super excited about the opportunity to work so closely with VMware because as they're cut in their domain we're working directly with them and that's an advantage that comes with being part of the dell technologies family and so we were the first company to bring data protection for were kubernetes environments out to market it's available now so you'll see us bring that into the tenzou mission-critical has been moved forward partnering closely with with vmware and of course we're already fully certified for vmware cloud it's really an ongoing regular conversation about how we can work together to bring the best to our customers so Beth I gotta ask you so you're part of your role as the leader of the the division is obviously you gotta get a lot of mouths to feed big division you got to make your plan you got to deliver for customers but strategy is another key component of this how do all these cloud trends shape your strategy so core to our strategy is to be the essential provider of data protection for multi cloud environments so no matter where customers are choosing to deploy their applications they can have the same confidence that they always did that that data is protected and the way they can get it back so that's core and if you want three words to remember for our strategy think VMware cloud and cyber cloud is central to it and you're going to be hearing a lot more about it in the weeks and months ahead okay so I gotta ask you break out your binoculars maybe even the telescope what are the future what are the future's look like when you think about the division and the market so we've been talking about cloud for a long time but we are still in the middle of this journey customers are going to rely on the cloud even more for additional use cases and especially in the data protection space right now we're seeing backup to the cloud dr to the cloud but the future will include cyber resiliency that's leveraging cloud deployments you're also going to see more and more of an emphasis on people leveraging SAS for their software consumption and for us that means not only protecting SAS applications but it also means giving customers the option to consume data protection in a SAS model we already do that today with things like cloud snapshot manager with things like the power protect management and orchestration but you're going to see us do even more of that because they're just incredible benefits of people leveraging sass to consume their software data constantly evolving lamps landscape data protection has to evolve with it Beth thanks so much for thank you and thank you keep it right there we'll be right back right after this short break from world famous cloud Studios Dell Technologies presents the world's number one show on data protection solutions for today's organizations it's proven in modern magazine with Jake and Emmy hello everyone and welcome to the premiere of PM magazine where we cover the proven Dell technology solutions that you've come to rely on and the latest modern innovation driving powerful data protection for the future I recently spent some quality time with one of our customers and I learned a thing or two about Dell proven data protection solutions let's watch the clip we've always relied on tell performance efficiency and scale to help us keep pace with our data protection needs but there's so much more for example we've been crushing it with Dell cloud data protection for backup to the cloud in cloud backup cloud tearing cloud dr uh-huh look at the picture it's a huge business advantage how so our costs are down we spend less time on management we're meeting our service levels and we have peace of mind that all of our data is protected right awesome did you talk about how Dells agile development approach is accelerating the speed at which we deliver customer value yes and how cloud capabilities will continue to grow yes and about VMware protection yes and cyber recovery yes I mean we covered all of that as well as the mega trends that require data protection with a modern approach well modern is exactly what our guests today are here to discuss Jake he is Ken fatale a noted data protection expert and joining us from the field on her vacation in the Bahamas is Barbara Penner of the data management Institute thank you both for being here so Ken what should our viewers think about when they hear the phrase modern data protection they should think new requirements for modern applications cloud native workloads Cubana is multi-cloud and data services to name a few Barbara would you add anything to that list I would add business service recovery on premises or in the cloud autonomous protection to auto detect and protect workloads across edge core and cloud infrastructure and lastly all of this must operate at global scale thank you both this is exactly where we're heading with Dell power protect solutions well it's time for a break but when we come back we've got something special in store for you don't we Jake I was hoping you forgot oh no someone learned how to make cream puffs and it did not turn out well for him yeah my apologies in advance to my mother who tried to show me around the kitchen but as you can see we'll be right back [Music] we're back with Rob and Rob Emslie who's the director of product marketing for Delhi MCS data protection division Rob good to see you hi Dave good to be back so we just heard from Beth about some of the momentum that you guys have from your perspective from a product angle what is really driving this yeah well one of the things that we've you know definitely seen is that as we talk to our customers both existing and new customers cloud journeys is is top of mind for all of the CIOs it's being driven by either the desire to drive efficiency take out costs and data protection is one of the the most common use cases and one of the things that we find is that there's four use cases for data protection that we see long term retention of data cloud disaster recovery backup to the cloud and the emerging desire to stand up new applications in the cloud that need to be protected so backup in the cloud really completes the four major use cases well one of the things I think is really important this market is that you deliver optionality to your customers so how are our customers enabling these use cases yeah so the the first two UK's first two use cases of long term retention and cleitus recovery is is really driven by our software on our appliances both of those are really predicated based upon the assumption that customers are going to deploy data protection on premises to protect their on-premises workloads and then it's here to the cloud or which is becoming more common used to cloud as a disaster recovery target you know it's delivered by our data protection software and that's either in a software form factor or that software delivered in an integrated appliance form factor so let's talk about purpose-built backup appliances I think you know our friends at IDC I think you know coined that they tracked that market for a while you guys have been a leader there the acquisition of data domain obviously put you in a really strong position give us the update there is it's still a vibrant market is it growing what's the size it's it look like yeah so as we look at 2020 you know IDC forecasts the market size to be a little under five billion dollars so it's still a very large market the overall market is growing at a little over four percent but the interesting thing is that if you think about how the market is is made up it's made up of two different types of appliances one is a target appliance such as data domain and the new power protect dd and the other is integrated appliances where you integrate the target appliance architecture with data protection software and it's the integrated appliance part of the market that is really growing faster than the other part of the of the people being market it's actually growing at 8% in fact IBC's projection is that by 2022 half of the purpose-built back to appliance market will be made up of integrated appliance solutions so it's growing at twice the overall market rate but you guys have two integrated appliances what why - how should people think about those yeah so a little under three years ago we introduced a new integrated appliance the called the integrated data protection appliance it was really the combination of our backup software with our data domain appliance architecture and the integrated air protection appliance has been our workhorse for the last three years really allowing us to to support that that fastest-growing segment of the market in fact last year the integrated air protection appliance grew by over a hundred percent so triple digit growth was great you know it's something that you know allows us to address all market segments all the way down to SMB all the way to the enterprise but last year one of the things you may remember at Delta Nadi's world is we introduced our power to protect portfolio you know and that constituted power protect data manager our new software to find platform as well as the delivery of packet there in an integrated appliance form-factor with perfectly x400 so that's really our our new scale out data protection appliance we've never had a scale out appliance in the architecture before in the portfolio before and that gives us the ability to offer customers choice scale up or scale out integrated and target and with the X 400 it's available is a hybrid configuration or it's also our first or flash architecture so really we're providing customers with the existing software solutions that we've had in the market for a long time an integrated form factor with the integrator protection appliance as well as the brand-new software platform that will really be our innovation engine that will be where we'll be looking at supporting new workloads and certainly leaning into how we support cloud air protection and the hybrid cloud reality of the next decade okay so one of the other things I want to explore is we've heard a lot about your new agile development organization Beth has talked about that a lot and the benefit obviously is you're more you're able to get products out more quickly respond to market changes but ultimately the proof is in translating that development into product what can you tell us about how that's progressing yep so certainly with Papa Tech Data Manager and the X 400 that really is the the epicenter of our agile product development activities you know we've moved to a three-month cadence for software releases so working to deliver a small batch releases into the market much more rapidly than we've ever done before in fact since we introduced palpitate Denham manager where we we shipped the first release in July we're now at the third iteration of palpitate Data Manager and therefore the third iteration of the x100 appliance so there's three things that you know I'd like to highlight within the x100 appliance specifically first is really the the exciting news that we've introduced support for kubernetes so we're really the first you know large enterprise data protection vendor to to lean into providing kubernetes data protection so that becomes the vitally important especially with the developments over our partner in VMware with vSphere 7 with the introduction of tan zoo and the reality is that customers will have both these fear virtual machines and kubernetes containers working side-by-side and both of those environments need to be protected soap a patek denim algae and the x400 appliance has that support available now for customers to take advantage of second we talked about long-term retention of of data in the cloud the x100 appliance has just received the capabilities to also take part in long term retention to AWS so those are two very important cloud capabilities that are brand-new with the excellent appliance and then finally we introduced yet 400 appliance with a maximum configuration of four capacity cubes rough-and-tough that was 400 terabytes of usable capacity we've just introduced support of 12 capacity cubes so that gives the customers the ability to scale out the x100 appliance from 64 terabytes all the way to over a petabyte storage so now if you look at our two integrated appliances we now cover the landscape from small numbers of terabytes all the way through to a petabyte of capacity whether or not you pick a scale up architecture or a scale length architecture yeah so that really comes back to the point I was making about optionality and kubernetes is key it's gonna be a linchpin obviously a portability for multi cloud sets that up as we've said it's it's not the be-all end-all but it's a really necessary condition to enable multi cloud which is fundamental to your strategy absolutely alright Rob thanks very much for coming on the cube it's great to have you thanks Dave and thank you for watching everybody this is Dave Volante for the cube we'll see you next time [Music]

from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hi everybody welcome to this breaking analysis in this cube insights powered by ETR I'm Dave Volante and this episode is about data protection you might be saying Dave why are you gonna bore us with the conversation about backup well it's interesting the market is actually quite hot you know over the last 18 to 24 months there's been well over a billion dollars probably 1.3 1.4 billion dollars raised just from companies like rubric Kohi City Dhruva certo and a number of other startups like clew mio is a name you might not have heard of and I'm gonna mention a couple of others so you have the situation where these upstarts particularly rubric and cohesive er really challenging the install based players and they're spending a lot of money on marketing engineering and sales and they're going to market and they're really shaking things up and I want to talk about that dynamic share with you some ETR data and talk about some of the other players like veem who was you know a rocket ship because of the virtualization trend how are they faring in this kind of new market and why is this market gaining so much attention today and what does this mean for incumbents what does it mean for customers who can achieve escape velocity and what are some of the likely outcomes that we see the market is very confused right now if you look at the Gartner Magic Quadrant the and compare that to for instance the Forrester wave del EMC is not even in the Forrester wave the Gartner Magic Quadrant has rubric you know not as a leader and and it's just all over the place and so what I want to do is use some ETR data and some context from the cube to share with you our audience what we are seeing in the marketplace and kind of what it all means so let's get into it Alex if you bring up the first slide I first want to make a statement about the overall storage market the the ETR data set which is incredible doesn't drill down into backup although it does have pure play backup vendors in the data set so I want to start with storage because it's a it's the superset of the data protection market so what this chart shows is the all the sectors and it shows the net scores remember net score is they they ask every every quarter are you spending more you're spending less so he's spending the same they subtract the less from the more and that gives you net score so this is the net score for the three periods of October 18 survey July 19 survey in the October 19 survey and you can see the red line shows you know storage is kind of on the back burner yeah it's up ticking a little bit from previous surveys but it's got a next score of 18 that's crappy I mean it's not really a hot market and I've talked in previous episodes and breaking analysis as to why I really two main factors that I cited cloud guys eating away at the traditional storage array business and flash injected so much capacity and performance into the equation that data center managers are saying hey I don't really need any more storage right now so storage is kind of on the back burner you can see I blew it up here and you can see sort of how it's playing you see the hot sectors are analytics cloud computing container platforms data warehousing is is making a comeback I've talked about snowflake on previous breaking analyses machine learning and AI and new workloads robotic process automation even virtualization these are the hot sectors that are that are driving spending but I will tell you storage ultimately is going to be there it won't be down forever because people are always going to need storage these new workloads are gonna require new storage and obviously backup if you go to the next slide Alex you can see some of the vendors here so we've sort of established ok storage is is right now it's down it's not one of the hottest sectors but you can see there's some companies in here that are pretty hot rubric leads the list with a net score of 53 percent now the shared end might be a little hard for you to read here but the shared end out of the last survey 1,300 respondents from the ETR survey answered what there's you know spending intentions were and then the individuals mentioning specific companies in this case rubric 55 so it's kind of a small shared in you can see pure storage a company that we've talked about previously you know continues to to show strength you know 48.1% down slightly from you know the previous quarters but still really the only clear share gainer in the overall a primary storage market again rubric you can see Nutanix is up on the list veeam is actually quite impressive I'm going to show you some data in a minute that I think will impress you in terms of Eames continued staying power you see vcn on there sis goes on the list God knows why sis goes on the list their storage is not you know perceived as as leading but they do have offerings and Cisco so big people just kind of yeah we're buying from Cisco you see cookie City their little dip this past survey but still very strong again I'll show you some other data there you know etc so you can see that the point is even though storage is down there are a couple of shining stars like rubric like Nutanix pure storage veem Kohi City etc so let's let's dig into that a little bit before I do that I just want to share with you some trends on this slide with regard to the the backup market you know i underscore backup because it's no longer just the backup market its evolving so there's pressure on the overall storage market but but the data protection is actually really hot right now it's it's it's captured a lot of venture capital startups are moving in I'll mention a few that you might not have heard of why well several reasons one is the data explosion continues it's it's it's growing at an exponential rate and it's kind of nonlinear digital transformations are all about how you leverage data and so if you're making your business a data business in a digital business well you better have a way to protect it so things like ransomware are coming into play and people are really concerned obviously about ransomware so so data protection of evolves and expands sort of transcends back up into business continuity cloud and hybrid cloud are some other trends that I'll talk about in more detail that are driving opportunities for what we're traditionally known as backup and really now evolving into sort of these new areas last decade it was about moving from from tape to disc you know tape sucks that was kind of the data domain mantra and they were the hot company of last decade they got you know they did an IPO they reached escape velocity they sold for 2.5 billion you know but today you know the data domain platform that EMC bought and and now is Dell EMC is kind of old school right it's these new guys that are coming after that so so well well data domain pioneer data deduplication and higher performance back up moving to storage today it's a whole new conversation and people have come to the realization that the primary and active storage is only about 20% of the stored data all the all the less hot data I don't want to say inactive stuff it's not cold storage but it's files and objects and copies and replicas and and backups that's 80% of the marketplace today it's in terms of the volume of data not necessarily the spend you know OLTP stuff primary storage is expensive flash arrays expensive but huge opportunity especially in terms of data growth that's where all the data growth is happening all that unstructured data so today the conversation is evolving to data protection data management data assurance particularly with containers so you think about spinning up containers spinning down containers you know dozens hundreds thousands of containers how do you keep track of that stuff how do you protect that how do you assure that your data is not leaking that you're not exposed and so that's a really hot area that you're seeing a number of startups focus on so real focus on recovery becomes much more important for a digital business how fast can I recover security compliance this notion of data sharing CDM on this slide which is stands for copy data management a practice that was really popularized by actifi Oh DevOps really supporting DevOps through a data management platform being able to give live copies or near live copies of data so that you know tests can be tested on you know much more fresh data in that in compressing that cycle time analytics becomes more important I talked about ransomware before well you can look at the the backup corpus and do analytics on that to see if there are anomalies in anomalous behavior just in terms of bad actors coming in so all this stuff joined with cloud and hybrid cloud and is put a bridging the legacy business and it's bringing out a lot of new challengers to the incumbents so let's take a look at some of that data from ETR Alex if you go to the next slide this is the ETR data set on backup vendors so what I've done here is it is pulled out of storage the pure-play data protection folks so I can you know call in backup vendors they hate when they call them backup know we're much more than backup it's where data management now data management means a lot of things to a lot of people but but nonetheless they are expanding and transcending pure backup so so credit to them this is the net score timeline from January 2017 to the latest October survey from enterprise technology research and you can see here I've pulled our rubric cohesively veem CommVault and Veritas and rubric leads as they say with 53% net score followed by Veen 44% so you can see Veeam really hanging tough though he said he just relat relat of lis new to the survey jumped up jumped down a little bit in in this quarter you'll see that you'll see that in the et our data anyone get too freaked out about it I think he said he still got some some tailwind and cementum momentum as does rubric but look at Veen Dean's ascendancy came from really VMware they were the VMware specialists and they were all virtualized and now you know they do bare metal they're doing cloud and multi cloud and and and they backup you know office 365 and and and so that's the SAS platform but look at how well they've held up quite impressive there with Veen made have made a major push into the enterprise kind of pivoted back to SMB but still does a lot of business in the enterprise and you can see them showing up here what's relevant to me is that the the shared end in other words out of the 1,300 and the total survey how many are responding to these vendors rubric 55 relatively small veeam 155 much larger so a bigger install base cohesive 42 kind of just getting started in the ETA dataset CommVault 105 so carve-outs a 700 million dollar company and revenues on a trailing 12-month basis they get about a 2.2 billion dollar market cap they just bought hedvig they're moving toward a SAS model they launched a product called metallic they get a very very large install base you can see their net scores yeah we're there holding relatively well they're smaller obviously they're lower than those top three and then you can see Veritas Veritas is the big whale in the business they kind of mostly almost a pure play software company they do have an appliance but they really are the the leader a leader here and have had a big market they went private they got bought by semantics semantics didn't know what to do with them they fumbled around with it they did a private equity deal you know that was going okay but they had some management turnover a private equity you know squeeze them a little bit even though they made some investments in the platform and so Veritas has you know some challenges they have to serve the install base but at the same time they got to compete with the new guys and all the new guys cohesively and rubric in particular are attacking you know the veritas install base you know certainly CommVault and as well Dell and EMC you can't have a discussion really around leadership and backup and data protection without talking about Delhi and C they're so large so Alex if you go to the next slide you can see the net score for Dell EMC the N here is 348 much much larger than some of the other guys that I just mentioned I'm actually look at Veritas 97 even though I have a large install base so Dell EMC but here's the caveat this is all of Delhi MC storage so not just the pure play back up the previous slide I was showing you pure play data protection vendors this is all of Dell EMC so it includes all their primary stuff all their flash storage all their storage not the other parts of their business not the compute and analytics and other stuff just storage so I'm using this as a proxy okay so this is not Dells data protection business only and so what let me make some comments there and I'll comment on Dell data protection business you can see it came out of the downturn on the past 2009 big optic and Joe toots used to say we're gonna come out stronger we're gonna invest through the downturn we got the cash we're gonna come out stronger that's exactly what happened they came out very strong but then you know cash flow started to get squeezed they expanded their product portfolio it was like product du jour all these mega launches and it just got too confusing for customers Salesforce got confused they got less productive and any an Adele or EMC at the time was really relying on VMware it's the value in Dell and I'm sorry I keep saying Dell value in EMC at the time was really in VMware and you could see that kind of steady decline in the net score and that's what happened to Elliott management came in they squeezed EMC kind of forced him forced her hand and then Dell ended up taking in private let me make some comments about the Dell acquisition and specifically Dell emcs data protection business Dell MC took its eye off the ball in storage generally but specifically in the data protection business it fell behind it wasn't investing fast enough it had some management changes that put Beth Phelan in charge a couple years ago now and her task was okay sure she was tasked with shoring up this business so but they had to get some new products out they had to focus on you know some of the the lower end of the market and then have to refocus on the higher end of the market so they've really begun to get their act together again in in data protection and really refreshing the data domain piece of the portfolio bringing Alomar and data domain to get and becoming much more competitive having said that they lost some ground okay so they've got that same challenge challenges Veritas they've not only got the new guys coming at them with this modern you know data platform they've got to service the existing install basin it's going to manage that cash flow they're now a public company again so a lot of pressure on those guys I want to go back to the to the previous chart Alex if you will and then is the one that shows you know rubric cohesive veem CommVault and and Veritas the the pure plays there's some other dynamics that I want to talk to talk about here HPE exited the software business it's it's its course offer a business it's sold off the Micro Focus and as part of that it's sold off data protector when it did that it opened up a whole new partnership opportunity for these emerging companies particular cohesive and veeam are actually reselling through HPE HP he's got a massive channel and those two companies are doing very well there I said you can't talk about data protection without talking about Dell EMC same thing for IBM you got to talk about IBM IBM is a huge install base and IBM free but Tivoli years ago Frank Moss's company and then they served mainframes and it was this big complicated platform kind of still is and so IBM had to make a move so it it it was getting killed in the marketplace by Veeam in particular so it created spectrum protect Plus and an IBM is really gone after software-defined it's it's it's it's begun to modernize its platform going after containers as I mentioned is a hot area but it's still got that same problem it's got to service the install base and so they're sort of doing that balancing act but it definitely had to you know refresh the portfolio and it's done a good job there with spectrum protect plus a couple of the companies that I haven't mentioned Dhruva is getting into that whole data management space so cohesively and rubric kind of redefining back up into data management theme goes back to the basics really talks about backup in data protection data management as being the future so it's kind of Dee trying to deep position rubric and cohesive as as you know much more in the future and not here today and so they're sort of playing that marketing game and very effectively as you can see by its net scores again Dhruva hopping on the the data management day bandwagon certo kind of a dr replication expert Klum you know is calling BS and all these guys is saying we're going pure sass model and and Klum you know does a sass for pure sass pure software for just AWS small company but it's raised a bunch of dough it's raised about 50 million dollars I think but here's some other names you might not have heard of caste ni o Valero trillion ease guys are going hard after containers and what I referred to earlier as data assurance so the big question is who's going to be able to achieve escape velocity for the for the upstarts who's going to be able to hold serve for the the incumbents let me make a couple of comments on that I think storage eventually is going to bounce back as I say some of those hot emerging workload areas like AI they they're gonna need storage you know analytics is gonna be driving you know the need for these types of things security data surance data protection service storage will theirs don't bet against the data so storage will I think eventually you know bounce back and unlike compute where Intel makes all the margin storage is more like networking where you get really good margins it's a you know 60 Plus percent gross margin business pure storage has almost 70 percent gross margins cloud is the wild card here I predict you're gonna see the cloud vendors begin to dramatically expand you know their their portfolios and you know use beyond just gonna s3 simple object storage okay yeah we got elastic you know a block store EBS from Amazon you know Microsoft has you know the you know similar store just as Google they are gonna double down on storage they're gonna they're gonna look at storage as a bigger opportunity and that is a wild card it could you know continue to pressure the traditional storage guys but look let's face it it's a hybrid world still ton of stuff going on Prem so I think that that the the overall market will bounce back I think data protection as a subset and data management is going to grow faster it has some tailwind I think it's got an expanding Tam and those tail winds are digital data digital business security data assurance this new management capability that I talked about DevOps and contain a protection container platforms as I showed you earlier and the ETR data is one of the hottest areas going and I think you're gonna see some consolidation you saw CommVault bought Hedvig you're gonna see some exits veeam is now talking about doing an IPO it just took in a half a billion dollars in investment so its investors are gonna want an exit so are cohesive ease and rubrics which together have raised almost a billion dollars so you're gonna see some some M&A I think specialists like zero and and Dhruva are probably gonna be B targets I think you're still gonna see Dell become much much more aggressive kind of getting their act together the big incumbents IBM you know Veritas refreshing their portfolio again their challenge is the innovators dilemma so I do think you're gonna see some at least one maybe two the the favorites there would be cohesive near rubric is achieve escape velocity I don't think there's enough room for three to be like blockbuster IPOs that that that can survive long term but I think this data management thing has legs and we're gonna continue to watch it here thanks to you for watching thanks to our friends at ETR for sharing this data is Dave Volante for cube insights powered by ETR we'll see you next time

from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hi everybody welcome to this cute conversation sponsored by Dell EMC today we're gonna cover deli MCS next-generation data protection announcement but before we get into it I want to talk a little bit about data is data an asset or a liability you know many years ago people used to look at data because it was growing so fast it was so expensive to manage they looked at it really is a liability that had to be managed but that's changed data today is viewed as an asset why is that I would say it's because a digital business what's the difference between a business in a digital business we think it's how they use data digital businesses put data at the core it's their most important asset they're trying to figure out how data contributes to the moneth estate monetization or the mission of the business the problem is the data is plentiful but insights really aren't people want insights that drive business impact in a digital world protecting that data has never been more critical but it's complicated you've got data on prem you've got data in the cloud you've got data at the edge so what we've seen post acquisition of emc by dell is the company has dramatically accelerated the cadence of announcements and they're further enhancing their portfolio today and we're gonna talk about that we've got really three segments today I'm gonna talk to a real Barret about the announcement in the hard news we're gonna look at a short video and then Beth Phelan the president of the Dell UMC Data Protection Division is gonna come in and talk about the vision so let's get right into it Rhea Barret great to see you again thanks for coming on thank you so much Dave it's always a pleasure being here yeah well you've been here a few times this year haven't you a few times yeah quake coming here to opening presents on a holiday because it's the professional equivalent and I think we've been here four times already this year yeah that's right we had you here early in the winter and then of course pre Dell technologies world and we talked about those the survey that you guys did and here we are again so okay so you've got this market momentum I talked about that a little bit the space is is growing what's the news today we have some exciting before I talk about the news though I do want to talk about when we were here in April if you remember we introduced some exciting new products into our portfolio it was protocol power protect Data Manager our brand new next-generation software for data management we introduced an integrated appliance power protect x-series the multi-dimensional appliances basically as well as an IDP a a terabyte IDP a again these are all important because they're proof points of our commitment to our customers in terms of delivering industry-leading appliances as well as software-defined solutions to meet their ever-growing ever more complicated data protection environments from the core to the edge to the cloud so as I said I mean you guys are accelerating the cadence of announcements so how does all that fit in to what you're announcing today what are you introducing I'm actually really this is an exciting present for me because as you know in February when we talked about data domain we were celebrating a very important milestone data domain has been the bedrock and the foundation of our portfolio and since its inception it not only defined a brand new market and disrupted an existing market but it also led the market for over a decade as the as the lead product and the lead solution that customers chose that makes us announcement and this president even sweeter because I'm really here to introduce the next generation data domain power protect dd the ultimate data protection appliance so power protect that's that's kind of the new brand that you guys are using yeah and and so that's that's exactly the Cadell using it across its entire portfolio yeah we're powering up the portfolio and data protection is no exception we're introducing three new models under the new power protect DD umbrella its power protect sixty nine hundred ninety four hundred and ninety nine hundred that's replacing actually four four models and we're also what you'll notice is the power protect the DD 3300 as well as the power protect virtual edition will be parts of the solution for our customers so how how should we think about the value from a customer perspective that you're delivering yeah that's great at the end of the day it's all about customer value and when we think about data domain and what it meant to our customers in terms of proven solutions it's all about the next generation really taking that and and even even raising the bar further so for customers what are they looking for a cloud is everywhere so multi cloud is one of those facets the other is really around performance efficiency and security because those issues are never going away if not only getting exasperated and multi-dimensional appliance portfolio it's part of a bigger portfolio which is important from giving our customers choice so what about the business impact I mean sharing metrics or data I mean how do we you know quantify this sure absolutely it's we're all about measurement and data it's very important and customers really want to understand the value so you look at let's go one by one let's look at fast customers what are they trying to do what's the urgency it's all about restore speeds and what we're seeing with the power protect DD series is SL O's where customers have up to 38 percent faster backups and 36 percent faster restores so again really critical for our customers let's talk about efficiency next that's been a bedrock customers want efficiency because number one it really impacts their cost of ownership and with the new power protect DD series we're seeing 25 percent more usable capacity in half the rack space and and that's the case for the DD 9900 which means that one DD 9900 can replace 2 DD 9800 racks in the same footprint lower TCO is critical again we're doing the efficiency really matters because we're trying to make sure as the data growth is there as customers are looking for performance their cost of protection isn't going linearly up with that and with our new systems we're seeing up to 65 to 1 data reduction and that's really allowing us to be able to have up to 81 petabytes of logical data stored in the 9900 s so again up to sixty two point five percent more logical capacity per rack which is unheard of as well as the ability to grow in place grow in in in place capacity so customers can license have shelves and and you know seamlessly scale up within the family well it because people you know they want to keep investing in data centers that's a big part of you know the cloud value proposition so you know being able to more efficiently use the existing spaces keep what about you know ransomware is a hot topic how you guys how does this announcement fit into what you're doing you know with your ransomware solutions thank you Dave actually secure is one of our our pillars so it's fast efficient secure and Security's all about really customers being able to recover under any stringent circumstance and the security our cyber recovery solution is basically completely integrated into the power protect DD where customers can recover in in the event of a ransomware attack so it's that air-gap ability to be able to make sure that even in the you know most taxing recovery scenario that you have a solution and what about what about the cloud cloud is a target I mean that's a big topic of conversation there's a lot of use cases dr and many others where does the cloud fit into yeah you can't have a data protection solution if you can't address a multitude of cloud use cases protection use cases so that's in terms of being able to protect information to the cloud protect information from the cloud and protect information in the cloud and with our cloud long-term retention with our cloud tearing capabilities built in on day one customers will be able to get a slew of capabilities that is a page basically built into the products so i said you've been accelerating the pace of announcements can you paint a picture of the portfolio how should we think about it now oh yeah absolutely again i think one of the most important elements that the dull emc data protection portfolio brings to bear for our customers regardless of their you know size and scope is flexibility in terms of their needs whether it's our purpose-built appliances our integrated appliances or a software-defined solutions and the power protect DD Series is part of this now multi-dimensional portfolio so being able to scale up with the power protect DD series appliances as well as scale out with the power protect x-series appliances whether it's integrated or hybrid whether it's all I mean integrated or Target whether it's all flash or hybrid whether it's really an appliance or software define that's the amount of flexibility that our customers have to be able to make sure any workload no matter where it resides will get protected and meet their solos in the lowest cost of ownership possible well space used to be pretty straightforward really you know you backup an on-prem you know system and that was kind of it now you got the cloud you got the edge you got there you know ransomware all kinds of complicated stuff going on so congratulations on the announcement and it was great to have you again always a pleasure thank you Dave you're welcome all right keep it right here we're gonna watch a short video and then we'll come back with Beth Phelan bright back we're not ready to say job well done we keep working building comprehensive technology that protects and manages your data from the edge to the core to the cloud we won't rest at being your number one we evolved creating technology that's fast secure and even more efficient that reduces the risk of data loss we are forging the future by building on the past Dell EMC power protect DD series the next generation of data domain protection storage appliances the power protect DD series provides up to one point two five petabytes of capacity in a single rack using 30 percent higher data compression to lower costs but there's more to this appliance than a beautiful form it's also the preferred protection storage for data that's backed up and managed by power protect software power protects DD series appliances help you simplify your multi cloud environments and gain more efficient operations and because data protection capacity is challenging to predict we engineered our multi-dimensional power protect appliance portfolio with flexibility and agility at its core you can easily scale up and scale out to future-proof your environment Dell EMC power protect DD series the ultimate protection storage appliance we're back with Beth Phelan who's the president of the Dell MC data protection division that's good to see you it's great to be here you've been busy we have been so what's on your mind these days you know just adding to what we are said before this is a huge announcement in the history of data domain which by itself changed the data protection industry and now as we introduce power protect dd we're bringing that proven technology into the future couldn't be more excited what are some of the highlights that you're really into that you know get you excited for customers yeah I mean we recovered much of it but one thing that I'm particularly convinced it's going to be a game-changer is enabling data reuse customers don't want their backup data to be locked away more and more customers want to take advantage of it either for a quick recovery or for analytics tests and of and so with the improvements that we've made with instant access and instant recovery now up to 60 concurrent VMs can be available from your power protect DD 60,000 a ops we're really changing the way data domain can be used power tech dd makes it something that they can use not only for their backup for also a whole set of data reuse cases so under your leadership your division has really accelerated the the announcement cadence how about the software side of things I mean how does that relate if people want you know they think cloud that thinks SAS how is that effect your business I mean I hope people remember that just back here in July we announced power protect data manager which is our next generation software it includes power protect central which is a SAS based capability starting out with monitoring but over time we'll be filling that out Palpa Tech Data Manager is finely tuned to work with power track dd so while you know the prevalence of data domain historically has really been you know built on the fact that we let customers choose right if they want to use Dell EMC software wonderful but if they've already made a choice we also have always supported that broad ecosystem we will continue that with power protect dd but the best choice in our view is going to continue to be to use Dell EMC software and now with power protect Data Manager you're going to get absolute best capabilities combined with power protect DD so make sure I understand so you say Dell EMC on Dell EMC you're gonna get you know the best experience but if for whatever reason I choose some other product I can integrate in absolutely great how about disaster recovery it's a key topic it's a painful topic it's expensive you know that historically you've seen the three site dr it's usually bespoke separate tools what are you doing for customers around deal yeah so the nice thing is that in this world of multi-cloud configurations it's easier and easier for more companies to actually have a full dr strategy by doing cloud disaster recovery you can set up your environment without those sort of old-school approach of having a separate on-prem facility that was just for disasters doesn't seem viable as we go forward I expect fewer and fewer companies will choose that so with poverty' DD on day one combined with power protect data manager they'll be able to use our cloud disaster recovery capabilities that include orchestration just three steps to failover two steps to fail back and you get all the benefits of disaster recovery but at a lower cost the ability agility by leveraging the cloud provider of your choice we the market has really changed a lot since the days when he had data replacing tape yeah it was pretty straightforward and now you've got the you know the cloud you got the edge you have hybrid you've got heightened security concerns so you have to be kind of a trend spotter in your role what are you seeing as sort of where you're taking this what's the vision for the division and the organization yeah our strategy has been very consistent we're recognizing that data is first that we have to align closely with the application managers to make it easy for those customers to protect their data seamlessly but at the same time we have to protect that data no matter where it is on-premise on the edge in the cloud and no matter how customers are deploying their applications so we're continuing to execute on our multi-dimensional appliance and software-defined data protection strategy but we're now augmenting that with a concept of global scale and I think that that global scale concept is going to really bring us into the future so I've said many times that you know we've moved beyond the innovation of stemming from Moore's Law that's not the heart of it anymore it's data it's machine intelligence and artificial intelligence and it's cloud because of scale so explain further global scale and what you mean by that so what we found is you know obviously customers enjoy the benefits of scale out we have that with the X 400 where they need those benefits of easy expansion of capacity easy movement of backup data sets across location to meet that capacity intelligent placement of that backup data sets we need that capability beyond a single appliance and so as we think about the concept of global scale we're looking at how do we enable all of our multi-dimensional appliances to participate in those use cases and bring those benefits across the ecosystem so breaking some of those physical barriers and being able to view my data in its in its form which is also just distributed right all right good exciting congratulations we'll see you next month probably well thanks again for for coming on and sharing this this announcement and we'll be watching thank you for watching everybody you can get more information I'm sure at deli mc.com right you guys got your data protection side of the site so go there check it out and thanks for watching everybody we'll see you next time

from our studios in the heart of Silicon Valley Palo Alto California this is a cute conversation hey welcome back everybody Jeffrey here with the cube we're in our Palo Alto Studios here today for a cute conversation it's a little bit of a dog days of summer conference seasons a little bit slow so we're excited we can kind of take a step back and we're gonna look back actually in time we're excited to have a very special guest rich Kolbert he is the field CTO at Dell EMC but really what we're talking about today is this data domain is 10-year anniversary of the date domain acquisition so rich first off welcome to the to the cube thanks Jeff excited to be here thanks for the invitation appreciate it I can't believe we're talking before we turned the cameras on that you join in 2006 and yet it's been 10 years I'm like wait 2006 was more than 10 can that be we're just getting old I don't know things are changing too fast no it's like a trip down memory lane and it just seems so long ago and yes in a way it also seems like yesterday I think things have gone so quickly so we're also joined in this segment by our top data analyst also the founder of wiki bond and co-ceo of Silicon angle media and founder of that as well so Dave Villante is joining us all the way from Boston Dave good to see ya hey Jeff hi rich to talk to you guys hey Dave so let's take a quick trip back 10 years ago actually maybe 11 years ago things were starting to heat up there was a lot of different vendors out there a lot of different players and things started to consolidate so I wonder if you can give us a little bit of your perspective what what's going on rich and then we'll get Dave's perspective yeah it was an interesting time right before the data domain acquisition we actually went through some economic times in 2008 and the markets are changing and and and some companies are becoming more successful some companies were struggling through that time customers were also looking for ways to to you know save money and do some interesting things there so it was a mixed feeling set of you know through that times data domain had IPO in 2007 and we were kind of going through this this explosive period of growth but you know across the board we just saw so many things change all at once and we really were surprised I think when initially was NetApp that an that they had intentions to bias and I think that was due to some of the economic factors of play and then of course EMC stepped in and and started a bidding contest with NetApp for for the company right so I Dave wonder if you could share your perspective you're sitting as an analyst you got Jo TG The Godfather of storage back in Boston what were you seeing in terms of the kind of the market dynamics and was it a surprise wouldn't that app decided to make a move well if you know first first of all I had left the storage industry for quite some time and when I started wiki bond we looked at storage and nothing had changed except one thing which was David deduplication that was new until a new tape was finally I always hated the tape the tape was finally being attacked so it was it was amazing time and EMC at the time we had some obviously great management yet Frank Sluman running data domain yo Joe Tucci who always balanced out acquisitions with organic you know in how to R&D and when Tom Georgians and NetApp said they were gonna go by David domain emt's walk right in and said no way so it was somewhat of a defensive move but at the same time when you talk to the M&A guys they said no no it's not just defense we can actually make this a growth play and that's exactly what happened Dayna domain I think at the time rich was probably a couple of hundred million dollar company and then they they popped that at the EMC and scaled that to you know well over a billion dollars and it'll maintain the the franchise and then grew it quite dramatically beyond where all the expectations were for the market the market team at the time was probably around a billion and I think ID seen rich as a over three billion today yeah one of the things that's so don't quote me on all the numbers because I'm not like you know watching the market caps and stocks but I think we'd gotten up to about a 500 million dollar run rate in terms of sales and prior to the crash I think our market cap was actually significantly higher so so our price came down you know which is one of the things I think that attracted NetApp to the game so the interesting dynamic inside the company was that the NetApp offer was was kind of the first one so they were working with the data domain leadership and they were speaking with us EMC was more of a kind of unsolicited offer so there was less communication and I remember there was a morning I was at San Francisco Airport going out to meet a customer and Joe to Chi put out a full-page ad in a local newspaper and we were reading that and that was his way of communicating to the to the people a data domain saying he wants to welcome us into the family it was quite a moment well it sure was and of course you guys were fierce competitors data domain was fierce competitors with with EMC you know fighting for for the install base and then all of a sudden you know the cultures it's somehow work EMC was was very good at acquisitions and he made it work and they not active it was an outside observer but you were there you know Frank Sluman came in did it's kind of running the the data protection organization but a lot has changed since then hasn't it I mean back then you stored you know a little bit of data I think accounting of terabytes today we live in a petabyte scale world I could talk about what's changed well you know the scales and performance certainly has changed I think the data domain platform today is about a thousand times larger than it was when it first came to market and in fact when we were being bid on by NetApp and EMC we had a flagship product is the DD 690 you know behind the scenes we had a system that was coming out that was double that size and EMC nor Netta knew about that so once the deal closed they got to find out that our size had just doubled in our performance and doubled at the same time but you're right you kind of talked about the dynamics inside of EMC EMC had a very large data protection you know division they had avemar networker santaros v TLS they also had an OEM arrangement for a competing product with the data domain platform so it was really like you know I compared to going to Hogwarts right where you have all of these different houses and we came in with with data domain and and I think the thing that really the glue that really helped it come to get was Joe Tucci you know tapping Frank's Luqman on the shoulder as the leader to bring this together and taking what was the borough division and and reforming it as the BRS division and I think we came together very quickly as a team even though people came from all of these different backgrounds you know standing for these different products rich let me follow up on that because there's a lot of M&A activity going on right now and and not very many big M&A deals are ultimately successful it turns out so what you said a little bit about you know Joe and Frank you know coming together but what are some of the other attributes that you would say that made it work it actually did what everybody hopes on an acquisition which is take great technology put it into a big sales machine and watch it grow and grow I think part of it you know quite frankly just comes down to the product and being differentiated because there are a lot of products out there and and if you take a step back they have good things that they're doing but it's very hard to find a product that says hey you're doing something that even if you put the blueprints out there it's very hard for other people to follow in those footsteps and create a similar value proposition and I think I think in this case it was a differentiated product and it had a lot of energy of its own and and I think from an EMC perspective they just stood back and said let's take this momentum and and play it out and see how how far it can take itself unfortunately I think a lot of times they don't do that right a lot of times acquiring companies don't just take this great thing and kind of get out of the way and add the juice where they can but you try to to try to change it so that's a really nice statement on Joe to G and what he was able to accomplish yeah no he was fantastic for us and and his support was tremendous but also his you know delegation and and kind of seeing how this but you know kind of having a vision of how this business unit should be formed right I think what was was very prison and then now you're part of Dell so obviously Michael Dell big personality as well the Dell technology stories he's doing a great job of pulling all these pieces together and you know kind of reinvigorating the brand coming back out of the little little side bar you know make it private for a while and come back so I wonder if you can talk about that integration how's that going as you've gone now a couple of times well I think it's been very exciting for us because the one piece that EMC had always been lacking had been the the compute part of the picture and now we have really the ability to go in and talk about the entire stack with our customers and that's that's a lot more powerful than saying here is an element of it and then if you want to go and add compute to that perhaps you know put in your virtual or physical servers then you're gonna we're going to need to partner with somebody and you know it's it's just a much cleaner story from end to end right right so the big big change obviously that wasn't around ten years ago that is around today is public cloud right huge impact not only directly in in taking workloads to the public cloud but also I think much more importantly changing the way people think about provisioning thinking about the way people think about elastic capacity so as as the market has evolved the rise of AWS and any other public clouds how has that changed what you guys are doing how are you reacting to that house at a new opportunity you know to kind of grow the maturity of the core product yeah well the thing is we have taken a lot of approach you know that's been learning and evolving as well right so so you know developers and applications really figured out AWS and the public cloud early I think data protection has has followed along with a couple years of lag in terms of doing that so you know our perspective is we learned as well right so so 2015 2016 I think there was some resistance and I think ultimately when we started to follow those workloads into the cloud there was a little bit of a lift and shift what we've learned is that the architecture really matters when you get to the cloud so the efficient use of resources the ability to do things in a cloud like way to use for example object storage instead of block storage when when the case presents itself so we took our products and virtualize them and followed them into the cloud but we realized that just taking the on-premise version of the product and putting it in the cloud itself isn't enough right because at the end of the day the customer is paying for all the underlying resources and so if your architecture is an efficient from a cost perspective as well as a performance perspective it's not going to be a viable solution and so 2017-2018 we've really seen a big acceleration in our adoption in the cloud because we have adapted our architecture to be more cloud friendly and more cost-effective for our customers to deploy but it was a learning experience for sure you know and and I think we're continuing to learn and continue to develop in that space and there's a lot of opportunity ahead of us the other big change I think that's come that we see over and over and over is really data as an asset only as an asset but as a huge valuable asset that drives your business drives real lytx but then becomes actually something that drives your company value and I think we see that and the Facebook's of the world and the googles of the world of why they have these crazy high valuations relative to here to their revenue and their profits because they're getting value for the data alright great news for you right it used to be a sample the day of the day was a pain it was expensive to store I didn't want to keep it all now everyone wants all the data they want to analyze it in real time and they want to put it in a place where they can actually put multiple applications across that same data set to do all kinds of new analytics so again super opportunity for you guys people aren't storing any less data no absolutely yeah no the data amount being stored is definitely growing one of the things that we're seeing that that's this kind of pervasive is this idea of of really using the right data the right place the right time so accessibility to whether it is a data Lake or it is your protection copies or you know an instant access of your protection copies there's a lot of different thing customers are doing with data but it's no longer a one-size-fits-all proposition like it was back in the tape automation days where I'm just throwing all of this stuff into a box and and never accessing it again right so the dynamics are changing and continue to evolve I expect that if we have this conversation two or three years down the road we're going to see some amazing things happen in the next couple of years that and some of it we were not predicting now we're gonna find out as customer demand and as innovation guides us along right because then the other big piece is the media right we've talked about tapes and the original data domain was was in response to some issues with tape and we get spinning rust as everybody likes to call it and now of course flash so yeah again see change in terms of capability the cost is coming down it's no longer the super high-end thing just for super high value applications so very transfer transformative opportunity on the on the media side as well on the flashlight as well you hit on a couple of really key things data domain was very successful because it became viable and practical to displace tape automation and nobody was a fan of their tape automation environments and now I think we're gonna see that's that same shift you know spinning disk is right now being relegated to archival and backup purposes but we're gonna hit an inflection point very soon I think we're where every instance of spinning disk probably can be questioned and so we are actually doing the you know kind of getting ahead of that curve and coming out with all flash products as a choice for a customer so we'll still have spinning disk for some backup use cases but we'll also have you know be able to offer customers a choice of the data domain technology on an all flash set of platforms and that will give customers a chance to get out of the yeah that spinning disk business as well right good I wonder if I get what if I get chime in here I you guys were talking about the the technologies and the cloud and the architecture it's interesting it David the main really started out don't hate me for saying this but as a feature product and the key feature was data deduplication data domain had the best you had a lot of guys doing post process you had you know some guys trying to do server-side avemar itself for example but they domain really killed it with regard to data David II do and if this feature product became a platform and had an architecture people became as you know unicorn times 2 plus plus and so I wanted to ask you rich about that architecture and aware it can go you're talking about different media now beyond spinning disk you know it used to be just a kind of a dumb target you've now got integrated appliances you've got software that's integrated there so it's you know you talked about the scale and the capacity where do you see this architecture going I wonder if you could comment on yeah well I think a lot of that belongs in in the realm of the data management software that speaks to it and and by having a distributed ecosystem and having things like you know distributed segment processing so we can take data domains technology and extend it out into those data management activities because a lot of the what's happening in the market is as new workloads are coming into the market they're having their own methods and native tools built-in for data protection and to be able to leverage those and have a highly consolidated affect on the backend is still extremely valuable to our customers and you're right it was a differentiated product from a deduplication standpoint but really the feature was that I can keep my 30 60 or 90 days worth of copies that are separate from my primary copies so I putting them somewhere safe I can even put them under different governance from my primary storage or my primary application owners right and it's practical and feasible and and prior to that the only real way to do that was with tape automation deduplication has become more of a broader word itself and it goes beyond what data domain does so there's deduplication and primary storage but if you look at primary storage deduplication it's good but it's designed to help you reduce the use of primary storage by 2 or 3 times it doesn't touch on the 30 60 90 days of retention that data domain does so there the similar technologies and a common use of the word but but they're two different use cases that the the remains separate I think yeah and you know as a former practitioner the other you are I think a former customer the genius part of the genius of data domain was its ability to just plug in to existing processes yes you didn't have to change things up and so it was an easy in but but it's impressive that you've been able to keep that that architecture going I wanted to ask you about market share you aided them in has always had a sixty plus percent market share I think it's at sixty now but it's it's like the Cisco of purpose-built backhaul appliances you're able to sort of dominate that little segment of the market which keeps getting bigger what but now you've got a lot of new entrants you know on VC money pouring in a lot of noise in the marketplace I feel like you guys maybe a couple years ago took your eye off the wall and now you've got this renewed sense of a vigor you know maybe it was parked partly the acquisition but you know we've talked to Beth Phelan about this a number of times you've really refreshed the portfolio so so wonder if you can talk about that and my question is what gives you confidence that you can continue to maintain your dominance yeah that's a great question and things have really changed I think starting around 2014 we were having some internal conversations about things like simplification the consumerization of IT and and all of those those dollars that you're talking about are really being poured into companies that are trying to take a different approach they're going into the white space that we had kind of left open which was simplicity right if you if you look back 10 or 15 years and you look at the the data management and enterprise backup software space enterprise backup software has been complicated and as you add more use cases it has become even more complicated and the customer base is no longer tolerant of that that's something that that maybe 10 or 15 years ago that was kind of a badge of honor to be working with complex and people just don't have the time for that there's a lot of IT generalists and folks that are out there that don't want to go to training class you know you know five days or ten days out of the year to learn how to use a product so that was a really good thing that we're seeing in the marketplace in terms of making products simpler easier to use and more approachable with things like discoverable functionality we certainly have the you know put a lot of effort into going in that direction because we think that's the right direction but what gives me confidence is the underlying storage value proposition about efficiency and performance and scale is something that we've still think that we have a strong upper hand on and when it comes down to that you know we take cloud as an example our data reduction in the cloud we think allows a much lower cost to serve and you know the customer is going to pay for that cloud storage or that cloud compute regardless of which vendor they're trusting in terms of their their solutions so simple only goes so far we think we can get there with simple but we don't necessarily see our competition having the efficiencies scalability and and so forth that we've already had so that that's good that gives me a lot of confidence so when you talk to customers what's the big problem the big hairy problem that they're trying to solve in your space and how are you guys helping so I one of the two big problems I see is is really a lot of IT teams are confronted with they've got a digital transformation going on they've got a cloud strategy going on an IT isn't necessarily being invited to the table early enough or often enough to go ahead and help with that process so what you have is you a cloud team building applications bringing things online and then the data protection the backups the snapshots whatever they're doing to make sure that that data is safe is is a bit of an afterthought and it you know I think of DevOps and I think about the ops part and I've never really come across an application team that wanted to own the business responsibility for the risk of you know backups recovery replication and all of that and I think IT has a lot of established practices that would be good to inform how those things should be built so the number one thing that I'm talking to with my customers when we're talking about this whole you know tectonic shift and in the way things are being done is that IT and the digital transformation or the cloud team do need to speak early and often and proactively about how they approach data protection because they continue to need to have a strategy that evolves and make sure they keep themselves protected as they start moving these critical workloads into the cloud it's an age-old problem with backup and data protection people think of it as a back as a bolt-on is an afterthought and your point is right on it's got to be a fundamental part of any transformation it's just like security you can't bolt it on earth just doesn't scale yeah and it's very much like you know back in the day when open systems was just coming of age there was a lot of operational discipline that the mainframe teams had and the mid-range teams had but the open systems was the Wild West and eventually open systems learned and and and a lot of that you know was knowledge sharing about best practices and you know Mis became IT now IT is becoming you know DevOps and digital transformation we're seeing a lot of that same dynamic happening again and and you know my main point is just you know start those conversations and if you're on the IT side start those conversations proactively you might not be getting invited to the digital transformation party invite yourself rich has been quite a 10 years and and as I was just watching an Andy Jazzy interview if you think the last 10 years have been crazy you ain't seen nothing yet so you guys are in a great position to stay agile and I'm gonna steal your line that it's no longer an honor to work on complicated systems that's great yeah it's been great being here thanks for having me and looking forward to maybe coming back in ten years and seeing what changed so hopefully we won't wait 10 years so rich thanks for stopping by Dave thanks for checking in from Boston and it's great to see you as well thanks you guys thanks Dave thanks Jeff [Music]