>> theCUBE's live coverage is made possible by funding from Dell Technologies: "Creating technologies that drive human progress." >> Good late afternoon from Barcelona, Spain at the Theater of Barcelona. It's Lisa Martin and Dave Nicholson of "theCUBE" covering MWC23. This is our third day of continuous wall-to-wall coverage on theCUBE. And you know we're going to be here tomorrow as well. We've been having some amazing conversations about the ecosystem. And we're going to continue those conversations next. Honore Labourdette is here, the VP global partner, Ecosystem Success Team, Telco Media and Entertainment at Red Hat. And Tony Jeffries joins us as well, a Senior Director of Product Management, Telecom Systems Business at Dell. Welcome to the theCUBE. >> Thank you. >> Thank you. >> Great to have both of you here. So we're going to be talking about the evolution of the telecom stack. We've been talking a lot about disaggregation the last couple of days. Honore, starting with you, talk about the evolution of the telecom stock. You were saying before we went live this is your 15th at least MWC. So you've seen a lot of evolution, but what are some of the things you're seeing right now? >> Well, I think the interesting thing about disaggregation, which is a key topic, right? 'Cause it's so relative to 5G and the 5G core and the benefits and the features of 5G core around disaggregation. But one thing we have to remember, when you disaggregate, you separate things. You have to bring those things back together again in a different way. And that's predominantly what we're doing in our partnership with Dell, is we're bringing those disaggregated components back together in a cohesive way that takes advantage of the new technology, at the same time taking out the complexity and making it easier for our Telco customers to deploy and to scale and to get much more, accelerate the time to revenue. So the trend now is, what we're seeing is two things I would say. One is how do we solve for the complexity with the disaggregation? And how do we leverage the ecosystem as a partner in order to help solve for some of those challenges? >> Tony, jump on in, talk about what you guys announced last week, Dell and Red Hat, and how it's addressing the complexities that Honore was saying, "Hey, they're there." >> Yeah. You know, our customers, our operators are saying, "Hey, I want disaggregation." "I want competition in the market." But at the same time who's going to support all this disaggregation, right? And so at the end of the day, there's going to be an operator that's going to have to figure this out. They're going to have an SLA that they're going to have to meet. And so they're going to want to go with a best-in-class partner with Red Hat and Dell, in terms of our infrastructure and their software together as one combined engineered system. And that's what we call a Dell Telecom infrastructure block for Red Hat. And so at the end of the day, things may go wrong, and if they do, who are they going to call for that support? And that's also really a key element of an engineered system, is this experience that they get both with Red Hat and with Dell together supporting the customer as one. Which is really important to solve this disaggregated problem that can arise from a disaggregated open network situation, yeah. >> So what is the market, the go to market motion look like? People have loyalties in the IT space to technologies that they've embraced and been successful with for years and years. So you have folks in the marketplace who are diehard, you know, dyed red, Red Hat folks. Is it primarily a pull from them? How does that work? How do you approach that to your, what are your end user joint customers? What does that look like from your perspective? >> Sure, well, interestingly enough both Red Hat and Dell have been in the marketplace for a very long time, right? So we do have the brand with those Telco customers for these solutions. What we're seeing with this solution is, it's an emerging market. It's an emerging market for a new technology. So there's an opportunity for both Red Hat and Dell together to leverage our brands with those customers with no friction in the marketplace as we go to market together. So our field sales teams will be motivated to, you know, take advantage of the solution for their customers, as will the Dell team. And I'll let Tony speak to the Dell, go to market. >> Yeah. You know, so we really co-sell together, right? We're the key partners. Dell will end up fulfilling that order, right? We send these engineered systems through our factories and we send that out either directly to a customer or to a OTEL lab, like an intermediate lab where we can further refine and customize that offer for that particular customer. And so we got a lot of options there, but we're essentially co-selling. And Dell is fulfilling that from an infrastructure perspective, putting Red Hat software on top and the licensing for that support. So it's a really good mix. >> And I think, if I may, one of the key differentiators is the actual capabilities that we're bringing together inside of this pre-integrated solution. So it includes the Red Hat OpenShift which is the container software, but we also add our advanced cluster management as well as our Ansible automation. And then Dell adds their orchestration capability along with the features and functionalities of the platform. And we put that together and we offer capability, remote automation orchestration and management capabilities that again reduces the operating expense, reduces the complexity, allows for easy scale. So it's, you know, certainly it's all about the partnership but it's also the capabilities of the combined technology. >> I was just going to ask about some of the numbers, and you mentioned some of them. Reduction of TCO I imagine is also a big capability that this solution enables besides reducing OpEx. Talk about the TCO reduction. 'Cause I know there's some numbers there that Dell and Red Hat have already delivered to the market. >> Yeah. You know, so these infrastructure blocks are designed specifically for Core, or for RAN, or for the Edge. We're starting out initially in the Core, but we've done some market research with a company called ACG. And ACG has looked at day zero, day one and day two TCO, FTE hours saved. And we're looking at over 40 to 50% TCO savings over you know, five year period, which is quite significant in terms of cost savings at a TCO level. But also we have a lot of numbers around power consumption and savings around power consumption. But also just that experience for our operator that says, hey, I'm going to go to one company to get the best in class from Red Hat and Dell together. That saves a lot of time in procurement and that entire ordering process as well. So you get a lot of savings that aren't exactly seen in the FTE hours around TCO, but just in that overall experience by talking to one company to get the best of both from both Red Hat and Dell together. >> I think the comic book character Charlie Brown once said, "The most discouraging thing in the world is having a lot of potential." (laughing) >> Right. >> And so when we talk about disaggregating and then reaggregating or reintegrating, that means choice. >> Tony: Yeah. >> How does an operator approach making that choice? Because, yeah, it sounds great. We have this integration lab and you have all these choices. Well, how do I decide, how does a person decide? This is a question for Honore from a Red Hat perspective, what's the secret sauce that you believe differentiates the Red Hat-infused stack versus some other assemblage of gear? >> Well, there's a couple of key characteristics, and the one that I think is most prevalent is that we're open, right? So "open" is in Red Hat's DNA because we're an open source technology company, and with that open source technology and that open platform, our customers can now add workloads. They have options to choose the workloads that they want to run on that open source platform. As they choose those workloads, they can be confident that those workloads have been certified and validated on our platform because we have a very robust ecosystem of ISVs that have already completed that process with open source, with Red Hat OpenShift. So then we take the Red Hat OpenShift and we put it on the Dell platform, which is market leader platform, right? Combine those two things, the customers can be confident that they can put those workloads on the combined platform that we're offering and that those workloads would run. So again, it goes back to making it simpler, making it easy to procure, easy to run workloads, easy to deploy, easy to operate. And all of that of course equates to saving time always equates to saving money. >> Yeah. Absolutely. >> Oh, I thought you wanted to continue. >> No, I think Honore sort of, she nailed it. You know, Red Hat is so dominant in 5G, and what they're doing in the market, especially in the Core and where we're going into the RAN, you know, next steps are to validate those workloads, those workload vendors on top of a stack. And the Red Hat leader in the Core is key, right? It's instant credibility in the core market. And so that's one of the reasons why we, Dell, want to partner with with Red Hat for the core market and beyond. We're going to be looking at not only Core but moving into RAN very soon. But then we do, we take that validated workload on top of that to optimize that workload and then be able to instantiate that in the core and the RAN. It's just a really streamlined, good experience for our operators. At the end of the day, we want happy customers in between our mutual customer base. And that's what you get whenever you do that combined stack together. >> Were operators, any operators, and you don't have to mention them by name, involved in the evolution of the infra blocks? I'm just curious how involved they were in helping to co-develop this. I imagine they were to some degree. >> Yeah, I could take that one. So, in doing so, yeah, we can't be myopic and just assume that we nailed it the first time, right? So yeah, we do work with partners all the way up and down the stack. A lot of our engineering work with Red Hat also brings in customer experience that is key to ensure that you're building and designing the right architecture for the Core. I would like to use the names, I don't know if I should, but a lot of those names are big names that are leaders in our industry. But yeah, their footprints, their fingerprints are all over those design best practices, those architectural designs that we build together. And then we further that by doing those validated workloads on top of that. So just to really prove the point that it's optimized for the Core, RAN, Edge kind of workload. >> And it's a huge added value for Red Hat to have a partner like Dell who can take all of those components, take the workload, take the Red Hat software, put it on the platform, and deliver that out to the customers. That's really, you know, a key part of the partnership and the value of the partnership because nobody really does that better than Dell. That center of excellence around delivery and support. >> Can you share any feedback from any of those nameless operators in terms of... I'm even kind of wondering what the catalyst was for the infra block. Was it operators saying, "Ah, we have these challenges here"? Was it the evolution of the Telco stack and Dell said, "We can come in with Red Hat and solve this problem"? And what's been some of their feedback? >> Yeah, it really comes down to what Honore said about, okay, you know, when we are looking at day zero, which is primarily your design, how much time savings can we do by creating that stack for them, right? We have industry experts designing that Core stack that's optimized for different levels of spectrum. When we do that we save a lot of time in terms of FTE hours for our architects, our operators, and then it goes into day one, right? Which is the deployment aspect for saving tons of hours for our operators by being able to deploy this. Speed to market is key. That ultimately ends up in, you know, faster time to revenue for our customers, right? So it's, when they see that we've already done the pre-work that they don't have to, that's what really resonates for them in terms of that, yeah. >> Honore, Lisa and I happen to be veterans of the Cloud native space, and what we heard from a lot of the folks in that ecosystem is that there is a massive hunger for developers to be able to deploy and manage and orchestrate environments that consist of Cloud native application infrastructure, microservices. >> Right. >> What we've heard here is that 5G equals Cloud native application stacks. Is that a fair assessment of the environment? And what are you seeing from a supply and demand for that kind of labor perspective? Is there still a hunger for those folks who develop in that space? >> Well, there is, because the very nature of an open source, Kubernetes-based container platform, which is what OpenShift is, the very nature of it is to open up that code so that developers can have access to the code to develop the workloads to the platform, right? And so, again, the combination of bringing together the Dell infrastructure with the Red Hat software, it doesn't change anything. The developer, the development community still has access to that same container platform to develop to, you know, Cloud native types of application. And you know, OpenShift is Red Hat's hybrid Cloud platform. So it runs on-prem, it runs in the public Cloud, it runs at the edge, it runs at the far edge. So any of the development community that's trying to develop Cloud native applications can develop it on this platform as they would if they were developing on an OpenShift platform in the public Cloud. >> So in "The Graduate", the advice to the graduate was, "Plastics." Plastics. As someone who has more children than I can remember, I forget how many kids I have. >> Four. >> That's right, I have four. That's right. (laughing) Three in college and grad school already at this point. Cloud native, I don't know. Kubernetes definitely a field that's going to, it's got some legs? >> Yes. >> Okay. So I can get 'em off my payroll quickly. >> Honore: Yes, yes. (laughing) >> Okay, good to know. Good to know. Any thoughts on that open Cloud native world? >> You know, there's so many changes that's going to happen in Kubernetes and services that you got to be able to update quickly. CICD, obviously the topic is huge. How quickly can we keep these systems up to date with new releases, changes? That's a great thing about an engineered system is that we do provide that lifecycle management for three to five years through this engagement with our customers. So we're constantly keeping them up with the latest and the greatest. >> David: Well do those customers have that expertise in-house, though? Do they have that now? Or is this a seismic cultural shift in those environments? >> Well, you know, they do have a lot of that experience, but it takes a lot of that time, and we're taking that off of their plate and putting that within us on our system, within our engineered system, and doing that automatically for them. And so they don't have to check in and try to understand what the release certification matrix is. Every quarter we're providing that to them. We're communicating out to the operator, telling them what's coming up latest and greatest, not only in terms of the software but the hardware and how to optimize it all together. That's the beauty of these systems. These are five year relationships with our operators that we're providing that lifecycle management end to end, for years to come. >> Lisa: So last question. You talked about joint GTM availability. When can operators get their hands on this? >> Yes. Yes. It's currently slated for early September release. >> Lisa: Awesome. So sometime this year? >> Yes. >> Well guys, thank you so much for talking with us today about Dell, Red Hat, what you're doing to really help evolve the telecom stack. We appreciate it. Next time come back with a customer, we can dig into it. That'd be fun. >> We sure will, absolutely. That may happen today actually, a little bit later. Not to let the cat out the bag, but good news. >> All right, well, geez, you're going to want to stick around. Thank you so much for your time. For our guests and for Dave Nicholson. This is Lisa Martin of theCUBE at MWC23 from Barcelona, Spain. We'll be back after a short break. (calm music)

(techno music intro) >> Welcome back to theCube's coverage of SuperComputing Conference 2022. We are here at day three covering the amazing events that are occurring here. I'm Dave Nicholson, with my co-host Paul Gillin. How's it goin', Paul? >> Fine, Dave. Winding down here, but still plenty of action. >> Interesting stuff. We got a full day of coverage, and we're having really, really interesting conversations. We sort of wrapped things up at Supercomputing 22 here in Dallas. I've got two very special guests with me, Scott from Intel and David from Dell, to talk about yeah supercomputing, but guess what? We've got some really cool stuff coming up after this whole thing wraps. So not all of the holiday gifts have been unwrapped yet, kids. Welcome gentlemen. >> Thanks so much for having us. >> Thanks for having us. >> So, let's start with you, David. First of all, explain the relationship in general between Dell and Intel. >> Sure, so obviously Intel's been an outstanding partner. We built some great solutions over the years. I think the market reflects that. Our customers tell us that. The feedback's strong. The products you see out here this week at Supercompute, you know, put that on display for everybody to see. And then as we think about AI in machine learning, there's so many different directions we need to go to help our customers deliver AI outcomes. Right, so we recognize that AI has kind of spread outside of just the confines of everything we've seen here this week. And now we've got really accessible AI use cases that we can explain to friends and family. We can talk about going into retail environments and how AI is being used to track inventory, to monitor traffic, et cetera. But really what that means to us as a bunch of hardware folks is we have to deliver the right platforms and the right designs for a variety of environments, both inside and outside the data center. And so if you look at our portfolio, we have some great products here this week, but we also have other platforms, like the XR4000, our shortest rack server ever that's designed to go into Edge environments, but is also built for those Edge AI use cases that supports GPUs. It supports AI on the CPU as well. And so there's a lot of really compelling platforms that we're starting to talk about, have already been talking about, and it's going to really enable our customers to deliver AI in a variety of ways. >> You mentioned AI on the CPU. Maybe this is a question for Scott. What does that mean, AI on the CPU? >> Well, as David was talking about, we're just seeing this explosion of different use cases. And some of those on the Edge, some of them in the Cloud, some of them on Prem. But within those individual deployments, there's often different ways that you can do AI, whether that's training or inference. And what we're seeing is a lot of times the memory locality matters quite a bit. You don't want to have to pay necessarily a cost going across the PCI express bus, especially with some of our newer products like the CPU Max series, where you can have a huge about of high bandwidth memory just sitting right on the CPU. Things that traditionally would have been accelerator only, can now live on a CPU, and that includes both on the inference side. We're seeing some really great things with images, where you might have a giant medical image that you need to be able to do extremely high resolution inference on or even text, where you might have a huge corpus of extremely sparse text that you need to be able to randomly sample very efficiently. >> So how are these needs influencing the evolution of Intel CPU architectures? >> So, we're talking to our customers. We're talking to our partners. This presents both an opportunity, but also a challenge with all of these different places that you can put these great products, as well as applications. And so we're very thoughtfully trying to go to the market, see where their needs are, and then meet those needs. This industry obviously has a lot of great players in it, and it's no longer the case that if you build it, they will come. So what we're doing is we're finding where are those choke points, how can we have that biggest difference? Sometimes there's generational leaps, and I know David can speak to this, can be huge from one system to the next just because everything's accelerated on the software side, the hardware side, and the platforms themselves. >> That's right, and we're really excited about that leap. If you take what Scott just described, we've been writing white papers, our team with Scott's team, we've been talking about those types of use cases using doing large image analysis and leveraging system memory, leveraging the CPU to do that, we've been talking about that for several generations now. Right, going back to Cascade Lake, going back to what we would call 14th generation power Edge. And so now as we prepare and continue to unveil, kind of we're in launch season, right, you and I were talking about how we're in launch season. As we continue to unveil and launch more products, the performance improvements are just going to be outstanding and we'll continue that evolution that Scott described. >> Yeah, I'd like to applaud Dell just for a moment for its restraint. Because I know you could've come in and taken all of the space in the convention center to show everything that you do. >> Would have loved to. >> In the HPC space. Now, worst kept secrets on earth at this point. Vying for number one place is the fact that there is a new Mission Impossible movie coming. And there's also new stuff coming from Intel. I know, I think allegedly we're getting close. What can you share with us on that front? And I appreciate it if you can't share a ton of specifics, but where are we going? David just alluded to it. >> Yeah, as David talked about, we've been working on some of these things for many years. And it's just, this momentum is continuing to build, both in respect to some of our hardware investments. We've unveiled some things both here, both on the CPU side and the accelerator side, but also on the software side. OneAPI is gathering more and more traction and the ecosystem is continuing to blossom. Some of our AI and HPC workloads, and the combination thereof, are becoming more and more viable, as well as displacing traditional approaches to some of these problems. And it's this type of thing where it's not linear. It all builds on itself. And we've seen some of these investments that we've made for a better half of a decade starting to bear fruit, but that's, it's not just a one time thing. It's just going to continue to roll out, and we're going to be seeing more and more of this. >> So I want to follow up on something that you mentioned. I don't know if you've ever heard that the Charlie Brown saying that sometimes the most discouraging thing can be to have immense potential. Because between Dell and Intel, you offer so many different versions of things from a fit for function perspective. As a practical matter, how do you work with customers, and maybe this is a question for you, David. How do you work with customers to figure out what the right fit is? >> I'll give you a great example. Just this week, customer conversations, and we can put it in terms of kilowatts to rack, right. How many kilowatts are you delivering at a rack level inside your data center? I've had an answer anywhere from five all the way up to 90. There's some that have been a bit higher that probably don't want to talk about those cases, kind of customers we're meeting with very privately. But the range is really, really large, right, and there's a variety of environments. Customers might be ready for liquid today. They may not be ready for it. They may want to maximize air cooling. Those are the conversations, and then of course it all maps back to the workloads they wish to enable. AI is an extremely overloaded term. We don't have enough time to talk about all the different things that tuck under that umbrella, but the workloads and the outcomes they wish to enable, we have the right solutions. And then we take it a step further by considering where they are today, where they need to go. And I just love that five to 90 example of not every customer has an identical cookie cutter environment, so we've got to have the right platforms, the right solutions, for the right workloads, for the right environments. >> So, I like to dive in on this power issue, to give people who are watching an idea. Because we say five kilowatts, 90 kilowatts, people are like, oh wow, hmm, what does that mean? 90 kilowatts is more than 100 horse power if you want to translate it over. It's a massive amount of power, so if you think of EV terms. You know, five kilowatts is about a hairdryer's around a kilowatt, 1,000 watts, right. But the point is, 90 kilowatts in a rack, that's insane. That's absolutely insane. The heat that that generates has got to be insane, and so it's important. >> Several houses in the size of a closet. >> Exactly, exactly. Yeah, in a rack I explain to people, you know, it's like a refrigerator. But, so in the arena of thermals, I mean is that something during the development of next gen architectures, is that something that's been taken into consideration? Or is it just a race to die size? >> Well, you definitely have to take thermals into account, as well as just the power of consumption themselves. I mean, people are looking at their total cost of ownership. They're looking at sustainability. And at the end of the day, they need to solve a problem. There's many paths up that mountain, and it's about choosing that right path. We've talked about this before, having extremely thoughtful partners, we're just not going to common-torily try every single solution. We're going to try to find the ones that fit that right mold for that customer. And we're seeing more and more people, excuse me, care about this, more and more people wanting to say, how do I do this in the most sustainable way? How do I do this in the most reliable way, given maybe different fluctuations in their power consumption or their power pricing? We're developing more software tools and obviously partnering with great partners to make sure we do this in the most thoughtful way possible. >> Intel put a lot of, made a big investment by buying Habana Labs for its acceleration technology. They're based in Israel. You're based on the west coast. How are you coordinating with them? How will the Habana technology work its way into more mainstream Intel products? And how would Dell integrate those into your servers? >> Good question. I guess I can kick this off. So Habana is part of the Intel family now. They've been integrated in. It's been a great journey with them, as some of their products have launched on AWS, and they've had some very good wins on MLPerf and things like that. I think it's about finding the right tool for the job, right. Not every problem is a nail, so you need more than just a hammer. And so we have the Xeon series, which is incredibly flexible, can do so many different things. It's what we've come to know and love. On the other end of the spectrum, we obviously have some of these more deep learning focused accelerators. And if that's your problem, then you can solve that problem in incredibly efficient ways. The accelerators themselves are somewhere in the middle, so you get that kind of Goldilocks zone of flexibility and power. And depending on your use case, depending on what you know your workloads are going to be day in and day out, one of these solutions might work better for you. A combination might work better for you. Hybrid compute starts to become really interesting. Maybe you have something that you need 24/7, but then you only need a burst to certain things. There's a lot of different options out there. >> The portfolio approach. >> Exactly. >> And then what I love about the work that Scott's team is doing, customers have told us this week in our meetings, they do not want to spend developer's time porting code from one stack to the next. They want that flexibility of choice. Everyone does. We want it in our lives, in our every day lives. They need that flexibility of choice, but they also, there's an opportunity cost when their developers have to choose to port some code over from one stack to another or spend time improving algorithms and doing things that actually generate, you know, meaningful outcomes for their business or their research. And so if they are, you know, desperately searching I would say for that solution and for help in that area, and that's what we're working to enable soon. >> And this is what I love about oneAPI, our software stack, it's open first, heterogeneous first. You can take SYCL code, it can run on competitor's hardware. It can run on Intel hardware. It's one of these things that you have to believe long term, the future is open. Wall gardens, the walls eventually crumble. And we're just trying to continue to invest in that ecosystem to make sure that the in-developer at the end of the day really gets what they need to do, which is solving their business problem, not tinkering with our drivers. >> Yeah, I actually saw an interesting announcement that I hadn't been tracking. I hadn't been tracking this area. Chiplets, and the idea of an open standard where competitors of Intel from a silicone perspective can have their chips integrated via a universal standard. And basically you had the top three silicone vendors saying, yeah, absolutely, let's work together. Cats and dogs. >> Exactly, but at the end of the day, it's whatever menagerie solves the problem. >> Right, right, exactly. And of course Dell can solve it from any angle. >> Yeah, we need strong partners to build the platforms to actually do it. At the end of the day, silicone without software is just sand. Sand with silicone is poorly written prose. But without an actual platform to put it on, it's nothing, it's a box that sits in the corner. >> David, you mentioned that 90% of power age servers now support GPUs. So how is this high-performing, the growth of high performance computing, the demand, influencing the evolution of your server architecture? >> Great question, a couple of ways. You know, I would say 90% of our platforms support GPUs. 100% of our platforms support AI use cases. And it goes back to the CPU compute stack. As we look at how we deliver different form factors for customers, we go back to that range, I said that power range this week of how do we enable the right air coolant solutions? How do we deliver the right liquid cooling solutions, so that wherever the customer is in their environment, and whatever footprint they have, we're ready to meet it? That's something you'll see as we go into kind of the second half of launch season and continue rolling out products. You're going to see some very compelling solutions, not just in air cooling, but liquid cooling as well. >> You want to be more specific? >> We can't unveil everything at Supercompute. We have a lot of great stuff coming up here in the next few months, so. >> It's kind of like being at a great restaurant when they offer you dessert, and you're like yeah, dessert would be great, but I just can't take anymore. >> It's a multi course meal. >> At this point. Well, as we wrap, I've got one more question for each of you. Same question for each of you. When you think about high performance computing, super computing, all of the things that you're doing in your partnership, driving artificial intelligence, at that tip of the spear, what kind of insights are you looking forward to us being able to gain from this technology? In other words, what cool thing, what do you think is cool out there from an AI perspective? What problem do you think we can solve in the near future? What problems would you like to solve? What gets you out of bed in the morning? Cause it's not the little, it's not the bits and the bobs and the speeds and the feats, it's what we're going to do with them, so what do you think, David? >> I'll give you an example. And I think, I saw some of my colleagues talk about this earlier in the week, but for me what we could do in the past two years to unable our customers in a quarantine pandemic environment, we were delivering platforms and solutions to help them do their jobs, help them carry on in their lives. And that's just one example, and if I were to map that forward, it's about enabling that human progress. And it's, you know, you ask a 20 year version of me 20 years ago, you know, if you could imagine some of these things, I don't know what kind of answer you would get. And so mapping forward next decade, next two decades, I can go back to that example of hey, we did great things in the past couple of years to enable our customers. Just imagine what we're going to be able to do going forward to enable that human progress. You know, there's great use cases, there's great image analysis. We talked about some. The images that Scott was referring to had to do with taking CAT scan images and being able to scan them for tumors and other things in the healthcare industry. That is stuff that feels good when you get out of bed in the morning, to know that you're enabling that type of progress. >> Scott, quick thoughts? >> Yeah, and I'll echo that. It's not one specific use case, but it's really this wave front of all of these use cases, from the very micro of developing the next drug to finding the next battery technology, all the way up to the macro of trying to have an impact on climate change or even the origins of the universe itself. All of these fields are seeing these massive gains, both from the software, the hardware, the platforms that we're bringing to bear to these problems. And at the end of the day, humanity is going to be fundamentally transformed by the computation that we're launching and working on today. >> Fantastic, fantastic. Thank you, gentlemen. You heard it hear first, Intel and Dell just committed to solving the secrets of the universe by New Years Eve 2023. >> Well, next Supercompute, let's give us a little time. >> The next Supercompute Convention. >> Yeah, next year. >> Yeah, SC 2023, we'll come back and see what problems have been solved. You heard it hear first on theCube, folks. By SC 23, Dell and Intel are going to reveal the secrets of the universe. From here, at SC 22, I'd like to thank you for joining our conversation. I'm Dave Nicholson, with my co-host Paul Gillin. Stay tuned to theCube's coverage of Supercomputing Conference 22. We'll be back after a short break. (techno music)

(upbeat music) >> Welcome back to Boston. The CUBE's coverage of AWS Re-inforce 2022. This is our second live Re-inforce. We did two in the middle that were all digital. Aaron Brown is here as US AWS cyber leader for Deloitte and Ryan Orsi the cloud foundation leader for partners for Amazon Web Services. Jen, welcome to The CUBE. >> Thanks for having us. >> Thanks. >> Nice to see you. Tell us about the story of Deloitte in cyber and then we'll get it to Deloitte cyber on AWS, or maybe even start there. >> Yeah, sure. I mean, obviously Deloitte, one of the largest cyber consultancies in the world, we've been working with AWS for a very long time. 2013, I was involved with, you know, the first Alliance agreement with them. And then we've been in cloud managed services about five years delivering workloads for clients. We have over 200 clients on that platform and then about a year and a half ago or so, the MSSP program came and it made a ton of sense to us, right? To really level the playing field and gave us a chance to really come out and demonstrate, you know, our capability around MSSP. >> The MSSP program, I saw a slide yesterday in keynote and in the analyst program was, you know, there's technology partners, there's MSSP partners. Explain the MSSP partner. >> Sure, sure. So at the Database Partner Network, we break it down. The program is called the level one MSSP Competency Program. And it is for both those companies that are sort of more of a software company with a managed service and those that are more of a pure service company, it's for both, but it's the general concept, it hosts the community of partners like Deloitte with a concentrated talent pool around 24 by 7 monitoring and response of AWS security events. >> So what is Deloitte? Deloitte's not a pure software play. It's not a pure services play anymore. It's sort of a mixture. >> Yeah, you know, asset enabled services, right? It's the way that we look at it. So, yeah, we're definitely not trying to compete with software companies out there, but we do have assets, right? So we do everything as infrastructure as code and that allows us to deploy our solutions into client environments really quickly. So where you might spend months on third party tool integrations, we leverage all native AWS tools in our standard offering and we can deploy into a client and get those services up and running in a couple of weeks. >> So you sell your software as an integrated service, is that correct? You don't- >> It's service, it's really is service. We sell a metered service. >> You don't sell your software separately? >> No. >> I should say it differently. You include your software as part of the service, is that right? >> Yeah, it is. But actually there's another element. There are obviously some clients who don't want to be in a managed service in perpetuity. And so those same assets that I talked about that we use for MSSP, you know, for the right clients, we don't just give away everything to anybody but for the right clients, for the right engagement, we will work with clients to help them build the capability that they need to run it themselves. And our solution is built in a way where they can do that. Right? We have a base component and a variable component to the solution and we will impart those assets to a client, you know, if the situation is right. >> Okay. So you'll actually transfer the software, but would you charge for that? >> Yeah, certainly, but there's obviously a big service component that goes into it. Right? >> And that's really where your expertise is. >> Yeah, we don't have like a standard, you know, list price but we'll work with clients to basically help them build out that capability because frankly the the market moves so fast that you need a constant capability and engine to update that solution. It's not something that, you know, you're going to sell and someone's just going to use that out of the box for the next five years. >> But a lot of the value that seems that Deloitte brings is you don't run from customization. You welcome that. You, you know, if a client says, hey, I need this special and that special, or whatever it is you'll go attack. You have the staff, the talent to attack that problem. And you use software in areas where you can have repeatability and it helps you scale and be more productive. Is that a fair way to think about it? >> Yeah, that's right. I mean, I guess one of the phrases that we use is we like big hairy problems, right? That's sort of our sweet spot. The, you know, the very simple, hey, I need a couple of guys to do a couple of things, typically, we're not the right firm for that. So, yes, we use the assets cause we realize like, hey, you know, out of everything that needs to be done, there's a significant portion of this that everybody needs more or less the same way. And then we build that, we build the automation to get it in and then we have that variable component working with clients to say, hey, let's make this work in your environment. We use a combination of AWS Native services, but then, you know, some clients have investments in third party tools and we can work with that. >> So it's a perfect match for AWS cause you guys are all about providing tools for builders and here's some primitives, some APIs and Go, we don't want that highly customized snowflake for every single client. >> Exactly. I mean, that's what I feel like the partnership with Deloitte is really bringing to the table for everybody and our mutual customers and builders out there that we both work with is again, they don't run from complexity or customization that security can be complex. It can be hard, Deloitte's helping making it much easier. The AWS partner network is helping kind of bring the ecosystem together and of software service, architectures that AWS recommend for like a security best practice around what to monitor, how to respond, what kind of enriched data should be added to that security finding and kind of pushing that out through our partnerships with it such as Deloitte. >> One of the things that, I mean, certainly big takeaway from this event, the security tracks that reinvent, previous Re-inforce events is AWS imparting, educating its customers on best practice and how tos and things that they should be thinking about, you know, do this, don't do that. In 2019, it was a lot about, hey guys, there's this shared responsibility model and kind of explaining that, we're way, way beyond that now, should we think about Deloitte sort of as an extension of that best practice AWS expertise that can be applied at your clients? I'll go to Deloitte because I don't have the talent to deal with that. I mean, I got talented people, but I just don't have enough of them. >> Exactly. Yeah. Yeah. And that's really, you know, our offerings tend to be comprehensive across all the domains. And like I said, the full life cycle of security operations all the way from, you know, identify the issue to resolve it and recover from it. And, you know, when we look at the shared responsibility model, you know, we like to say, hey, we will take you really far up that stack, that customer responsibility area, you know, for our service, we cover a significant portion of that landscape on our client's behalf cause, you know, what do they care about? Deploying workloads, getting the application running, right? Security is just another one of those important, necessary things, but it just sort of standing between you and the business value of your workload. >> And your ideal target customer would be a large medium up to a large enterprise or is all exclusively large or? >> Definitely not exclusively large. You know, the fact that we have all the automation that we do, we have a significant portion of our security operations folks are offshore allows us to be really competitive. And so we're able to serve clients that maybe, you know, in years past wouldn't have been what you'd think of as traditional. So like clients leveraging the marketplace, you know, we're able to serve that market segment. >> So billion dollar up kind of revenue? Odes that sound about right? >> Yeah. Even south of that a bit. >> Okay. So maybe half a billion or 500 million up. >> Yeah. >> Okay. So thinking about that ideal sort of profile, if you don't know, you don't know, I'm going to ask you to guess. >> Yeah. >> What percent of those target companies, enterprises, have a SOC? Is it 100%, 50%, you know, or are you- >> 75, 75% most so. >> Okay. So let's say 3/4. >> Yeah. >> So you compliment the SOC, right? You're not the SOC, but you may be in some cases? >> Depending, now we're talking about it's a function of what their IT enterprise landscape looks like. If they're 100% AWS, yeah. If you're born in the cloud startup and, you know, you don't do anything else and we have, you know, we have a few of those. Right. And they want to give us everything. They're like, you know, our security guys just going to kind of understand what you guys are doing and feel good about it. Yeah. We do that. But for the most, there is an existing SOC. Right. And so what we do is we leverage, you know, an ITSM software to e-bond with our clients service management functions so that when we're generating tickets, they have full visibility to what's going on. We're still resolving things on their behalf, we need to communicate with some clients, right? Cause a lot of security issues that need to get resolved require engagement with the asset owner. So we're not just a black box. So we do have to talk to folks on the ground at the client to resolve issues. >> And that's actually one thing that really impressed me to getting to know Aaron and his team more and more throughout this journey together in the partnership is they're not throwing alerts over the fence to the customers SOC team saying, well, here's some recommended remediation steps, they're actually rolling up their sleeves and doing some remediation themselves and informing the customer. This was taken care of for you. I think that's really unique. >> Yeah. In addition to, you know, our solution obviously has a bunch of auto-remediations, you know, that we do as part of the solution. >> So what's the engagement like? What's the conversation like when people come to you? Say I have a problem, it's blank, right? What are the typical blank- >> You know, a lot of it has been organizations where there's either a business unit that has kind of maybe off run and doing their own thing. And, you know, it's only sort of come to light with the compliance and security organization inside the client that like, hey, these guys maybe need some help. And boy, we're really strapped. We don't have the people cause talent's so tight to go help these guys and make them get it right. We're going to go ahead and keep them kind of off to the side. And you know, we'll do this managed service to help get that addressed. And then another typical scenario is when companies are acquired. So, you know, organization buys a company and they've got a preexisting. Again, they look under the covers and they're like, oh, these guys really need some help because of the way that we deploy everything as infrastructure as code really very quickly, it's a great way to just kind of get it sorted. It's a metered service. So it's not some massive investment that they have to make. We could just get it sorted out until maybe they get a chance to process and actually onboard that new entity into their enterprise structure. So as part of the MSSP program within AWS, you got to be really good at understanding how to utilize the AWS portfolio of cyber security services natively. So you do that, does that check the box on everything you need or do clients typically say, no, no, you got to integrate with all this other mess that I have there. Can you sweep that mess aside and say, hey, I can do this all in the cloud or what's that dynamic like? >> The answer is, yes, both. Right? So, you know, typically clients will have significant investments in existing third party tools and then either politically because of the investment or from a practical standpoint it makes sense to integrate those. Now that does slow down, you know, the deployment and the customization a bit, but, you know, and a lot of times that makes sense for the client. >> Well, it gets hairy. Like you said, you love these kind of hairy problems, right? >> Yeah, that's right. >> You run towards that. >> That's right. We run towards fire >> And, Ryan, your focus on partners is all partners or is it really the MSSPs or? >> All partners, all kinds of partners in the security space, right? >> Right, right. Yeah. Of course. >> Software companies, professional services, managed services. And we're focused on trying to make the security easier for both of our mutual customers here. Right? So that what you mentioned about best practices and, you know, how do you tell what best practices are per AWS service or third party software that's operating in an AWS environment? That's part of what our team does is we create these partner programs. There's a very detailed, very prescriptive technical checklist that out internal security experts are going through with Deloitte folks, for example, as a part of their membership and the level one MSSP program to make sure that, right? Those best practices which could be fresh off the AWS documentation truck are built into their services. And the reason those best practices exist is for a for a good reason. They're built, tried and tested, you know, in our own environments before they reach the documentation website. But all of that is incorporated into that whole kind of validated checklist that we do together. So it's a great way to make sure that operations from partners like Deloitte, software delivered, customization delivered, aligns with what we're able to see from just our Amazon culture of being so customer obsessed and really listening to all of those very specific challenges they might have that the customer will have at different points in their cloud journey. Those challenges are baked directly into key technical requirement criteria that Deloitte's teamed up with us to go achieve. >> What are you seeing at the macro, Aaron? When we talked to practitioners where we'll survey, we have a survey partner called ETR and they'll do spending surveys coming into the year of CIOs and IT buyers, we're expecting 8%, eight to 8 1/2% budget growth, post Ukraine, inflation, Fed tightening, you know, the tech lash, all that. It's dialed down a bit, it's still pretty robust it's 6% and security still remains the number one priority. And we've seen a little bit of momentum deceleration even in security spend across the board, but not anything, you know, tragic. Are you seeing the same or are you seeing security budgets kind of where they were expected to be at the beginning of the year? >> Yeah, you know, I haven't seen it decline. I mean, I think the fact of the matter is for all the things that we talked about before, right? Basically the skill shortages and just the coordination with other cloud programs, there's a tremendous backlog of stuff that needs to be done. And, you know, enterprises have more appreciation now for the need for all, you know, all the various, you know, ransomware things that have happened and others that, hey, they need to get a handle on the security and their environment. And so I think a lot of what's been going on in the last year, the reason it hasn't been faster, hasn't been for a lack of appetite. It's just been a lack of skills and process to do it. >> Has the business case changed? And the variables maybe the same, but it used to be, hey, if you don't do this, you're exposed. Okay. Here's the fear of getting, you know, infiltrated and then it's going to became if you want to quantify it, it's like, okay, what's the expected loss with, and without, you know, the kind of think of insurance terms. Is the business case shifting with digital toward this is a fundamental component of monetization in order to be able to monetize, you have to ensure this level security. Are we there yet? >> Yeah, I think so. I don't think anyone's arguing whether it's, you know, needed or not. Right. So now it's a question of, hey, and I think CJ Moses had a good slide in the opening yesterday where he was saying, you know, was it, make the secure path, the path of least resistance. Right? And so that's a big part of, you know, how we deliver our solution. We really want to make it easy for the enterprise to absorb the security services that we have. Right? And that's really critical. I think that's where the focus is, is make it easier to do security because the value comes right along with it. >> All right. I'll give you each the final word, Ryan, you go first then Aaron kind of put a bumper sticker on Re-inforce 2022. >> It's not slowing down. It's only picking up in terms of innovation, software tools, operational processes, and some of the unique ways that all these tools are tied together. Third party, Native AWS, consulting, the way these services come together, it's only accelerating. It's been pretty exciting to see some of the innovation here this time at this Re-inforce. >> Right, Aaron, what do you say? >> Yeah, I would agree. I mean, just the breadth of capabilities, the new announcements by AWS of the capabilities in their solution stack. I mean, for me, you know, I just kind of wonder like when does it narrow or when does it settle down and I know that that's not now. >> Keep waiting. >> Yeah. >> But, yeah, I think, you know, we will continue to see you know, just rapid acceleration and new features and services that... >> I often say the next decade at cloud ain't going to to be like the last. So gentlemen, thanks for coming on The CUBE. It's great to see you. >> Thanks for having us. Thank you everything. >> All right, thank you for watching. Keep it right there. This is Dave Vellante for The CUBE. We'll be back right after this short break from Boston AWS Re-inforce 2022. (soft music)

hello and welcome to the cube i'm dave nicholson chief technology officer at thecube and we're here for a very special cube conversation with andy brown from broadcom andy welcome to the cube tell us a little about yourself a little bit my about myself my name is andy brown i'm currently the senior director of software architecture and performance analysis here within the data center solutions group at broadcom i've been doing that for about seven years prior to that i held various positions within the system architecture systems engineering and ic development organization but ultimately as well i spent some time in our support organization and managing our support team but ultimately have landed in the architecture organization as well as performance analysis great so a lot of what you do is around improving storage performance tell us more about that so let me give you a brief history of uh storage from from my perspective um you know i as i mentioned i go back about 30 years in my career and that would have started back in the ncr microelectronics days and originally with parallel scuzzy so that would be if anyone would remember the 5380 controller which was one of the original parallel scuzzy controllers that existed and built by ncr microelectronics at the time i've i've seen the advent of parallel scuzzy a stint of fiber channel ultimately leading into the serialization of those of the scuzzy standard into sas as well as sata and then ultimately leading to nvme protocols and the advent of flash moving from hard drives into a flash based media and as well on on that's on the storage side on the host side moving from parallel interfaces isa if everybody could remember that moving to pci pci express that's where we land today so andy we're square in the middle of the era of both nvme and sas what kinds of challenges does that overlap represent well i think you know obviously we've seen sas around for a while it was the conversion from parallel into a serial attached scuzzy and that really sas brings with it the ability to uh connect on really a high number of devices um and uh was was kind of the original scaling of devices and and really uh also enabled uh was was one of the things that enabled flash based media given the the speed and performance that came to the table of course nvme came in as well with the promise of of even higher speeds and as we saw flash media really really take a strong role in storage uh nvme came around and and really was focused on trying to address that whereas sas originated with hard drive technology nvme was really born out of how do we how do we most efficiently deal with flash based media you know sas with its but sas still carries a benefit on scalability nvme maybe has i don't want to say challenges there but it's definitely was not designed as much to be broadly scalable across many many say hundreds or thousands of devices but definitely addressed some of the performance issues that were coming up as flash media was becoming so uh uh was was increasing the overall storage performance that we could experience if you will let's talk about host interfaces like pcie what's the significance there um really uh the all the storage in the world all of the performance in the world and on the storage side is not of much use to you unless you can really feed it into the into the beast if you will into the cpu and into this the rest of the server subsystem and that's really where pci comes into play pci uh originally was in parallel form and then moved to serial with pci express as we know it today and and really has created a pathway to to to enable not not only storage performance but any other adapter or any other networking or other other types of technologies to just open up that pathway and feed the processor if and as we've moved through from pci to pci express pci 2.0 3.0 4.0 and just opening up those pipes has really enabled just a tremendous amount of flow of data into into the compute engine allowing it to be analyzed sorted used to analyze data big data uh ai type applications just those pipes are critical in those types of applications we know we've seen dramatic increases in performance going from one generation of pcie to the next but how does that translate into the worlds of sas sata and nvme um so from a performance perspective when we look at these different types of media whether it be sata sas or nvme um of course there are performance difference inherent in that media sata being probably the lowest performing with nvme uh topping out at higher performing although sas can perform quite well as a flash based you know as a protocol connected to flash based media and of course nvme from us an individual device scaling from a by one to a by four interface really that is where nvme kind of has enabled a bigger pipe directly to the storage media uh being able to scale up to buy four whereas sas is kind of limited to buy one maybe buy two in some cases although most servers only connect the sas device by one so from a difference perspective then you're really wanting to create a solution or or enable the infrastructure to be able to consume that performance that nvme is going to give you and i think that you know that is something where our solutions have really in in the recent generations shine at their ability to really now uh keep up with uh storage performance in nvme uh as well as provide that connectivity back down into the sas and sata world as well let's talk about your perspective on raid today so uh there's been a lot of uh views and opinions on raid over the years it's been a and those have been changing over time raid has been around for a very very long time uh probably about as long as again going back over my 30-year career uh it's been around for almost the entire time obviously raid originally was viewed as as something that was uh very very necessary uh devices fail they don't last forever but the data that's on them is very very important and people care about that so raid was brought about you know knowing that individual devices that are storing that data are going to fail and really took hold as a primary mechanism of protection but as time went on uh and and as performance moved up uh both in the server and both in in the media itself if we start talking about flash uh raid really took on people people started to look at traditional server storage raid uh but with maybe a more of a negative connotation i think that because uh to be quite honest it fell behind a little bit if you look at things like parity raid raid five and rate six very very effective and efficient means of protecting your data very storage efficient but ultimately had some penalties a primarily around wright performance random rights in raid 5 volumes was not keeping up with what really needed to be there and um i think that really shifted uh opinions of raid that hey it's just it's just not it's not going to keep up and we need to move on to other avenues and and we've seen that we've seen disaggregated storage and other solutions pop up to protect your data obviously in cloud environments and things like that it's shown up and uh and they have been successful so one of the drawbacks with raid is always the performance tax associated with generating parity for parity rate what has broadcom done to address those potential bottlenecks we've really solved the raid performance issue the right performance issue we're we're in our latest generation of controllers we're exceeding a million rate five right iops which is enough to satisfy many many many applications as a matter of fact even in virtual environments aggregated solutions we have multiple applications and then as well in the rebuild arena we really have through our architecture through our hardware automation have been able to move the bar on that to where the rebuild not only the rebuild times have been brought down dramatically in sas based or in i'm sorry in flash based solutions but the performance that you can observe while those rebuilds are going on is almost immeasurable so in most applications you would almost observe no performance deficiencies during a rebuild operation which is really night and day compared to where things were just a few short years ago so the fact that you've been able to dramatically decrease the time necessary for a raid rebuild is obviously extremely important but give us your overall performance philosophy from broadcom's point of view you know over the years we have recognized that performance is is obviously critically important for our products and the ability to analyze performance from many many angles is critically important there are literally infinite ways you can look at performance in a storage subsystem what we have done in our labs and in our solutions through not only hardware scaling in our in our in our labs but also through automation scripts and things like that allowed us to collect a substantial amount of data to look at the performance of our solutions from every angle you know iops bandwidth application level performance small topologies large topologies just just many many aspects it's still honestly only scratches the surface of all the possible uh performance points that you could gather but it it has we have moved the bar dramatically in that regard and and it's something that our customers really demanded of us um you know storage technology has gotten more complex and you have to look at it from a lot different angles especially on the performance front to make sure that there are no holes there that somebody's going to run into so based on specific customer needs and requests you look at performance from a variety of different angles um what are some of the trends that you're seeing specifically in storage performance today and moving into the future yeah emerging trends within the storage industry i think that to look at the emerging trends you really need to go back and look at where we started we started uh in compute where people were you would have basically your uh your server that would be under the desk in a small business operation and individual uh businesses would have their own uh set of set of servers and and the storage would really be localized to those obviously the industry has recognized that um that to some extent disaggregation of that we we see that obviously in what's happening in cloud uh in hyper-converged storage and things like that those afford a tremendous amount of flexibility uh and and are obviously uh great players in the storage world today but what with that flexibility is come some sacrifice in performance and actually quite substantial sacrifice and what we're observing is almost uh it comes back full circle the uh the need for inbox high performing server storage that is well protected uh and and with people with confidence that people have confidence that their data is protected and that they can uh extract the performance that they need for the demanding database applications that still exist today and they still operate in in the offices around the country and around the world that really need to protect their data on a local basis in the server and i think that from a trend perspective that's what we're seeing also from the standpoint of nvme store nvme itself is really started out with hey we'll just software rate that we'll just we'll just wrap software around that we can protect the data we had so many customers come back to us saying you know what we really need hardware raid on nvme and when they came to us we were ready we had a solution ready to go and we're able to provide that and now we're seeing going on demand we are we are complementary to other storage solutions out there server storage is not going to necessarily rule the world but it is surely has a place in the broader storage spectrum and we think we have the right solution for that speaking of servers and server-based storage why would for example a dell customer care about the broadcom components in that dell server so uh uh let's say you're configuring a dell server and you're going why does why does hardware raid matter what what what's important about that well i think when you look at today's hardware raid uh first of all you're going to see dramatically better performance you're going to see dramatically better performance in it's going to enable you to put raid 5 volumes a very effective and efficient mechanism for protecting your data a storage efficient mechanism you're going to use raid 5 volumes where you weren't able to do that before because when you're in the millions of iops range you really uh can satisfy a lot of application needs out there and and then you're going to also going to have rebuilt times that are lightning fast your performance is not going to degrade when you're when you're running those application especially database applications but not not only database but streaming applications uh bandwidth uh to to protected raid volumes is is almost almost imperceptibly different from just raw bandwidth to the media so the rate rate configurations in today's dell servers really afford you the opportunity to make use of that storage where you you may not have uh you may have already written it off as well ray just doesn't is not going to get me there quite frankly uh into this in in the storage servers that dell is providing uh with with raid technology uh there are huge windows open and what you can do today with applications well all of this is obviously good news for dell and dell customers thanks again andy for joining us for this cube conversation i'm dave nicholson for the cube [Music]

(upbeat music) >> Hello and welcome to theCUBE. I'm Dave Nicholson, Chief Technology Officer at theCUBE and we are here for a very special Cube Conversation with Andy Brown from Broadcom. Andy, welcome to theCUBE, tell us a little about yourself. >> Well, a little bit about myself, my name is Andy Brown, I'm currently the Senior Director of Software Architecture and Performance Analysis here within the Data Center Solutions Group at Broadcom. I've been doing that for about seven years prior to that, I held various positions within the system architecture, systems engineering, and IC development organization, but ultimately as well as spent some time in our support organization and managing our support team. But ultimately have landed in the architecture organization as well as performance analysis. >> Great, so a lot of what you do is around improving storage performance, tell us more about that. >> So let me give you a brief history of storage from my perspective. As I mentioned, I go back about 30 years in my career and that would've started back in the NCR Microelectronics days. And originally with Parallel SCSI, so that would be, if anyone would remember the the 5380 Controller, which was one of the original Parallel SCSI controllers that existed in built by NCR Microelectronics at the time, I've seen the advent of Parallel SCSI, a stint of fiber channel, ultimately leading into the serialization of the SCSI standard into SaaS, as well as SATA, and then ultimately leading to NVMe protocols and the advent of flash moving from hard drives into a flash based media and as well on that's on the storage side on the host side, moving from parallel interfaces, ISA if everybody could remember that, moving to PCI, PCI Express and that's where we land today. >> So Andy, we are square in the middle of the era of both NVMe and SaaS. What kinds of challenges does that overlap represent? >> Well, I think obviously we've seen SaaS around for a while, it was the conversion from parallel into a serial attached SCSI and that really SaaS brings with it, the ability to connect really a high number of devices and was kind of the original scaling of devices. And really also enabled was one of the things that enabled flash based media, given the the speed and performance that came to the table. Of course NVMe came in as well with the promise of even higher speeds. And as we saw flash media really, really take a strong role in storage. NVMe came around and really was focused on trying to address that, whereas SaaS originated with hard drive technology. NVMe was really born out of how do we most efficiently deal with flash based media, SaaS with its. But SaaS still carries a benefit on scalability and NVMe maybe has, I don't want to say challenges there, but it's definitely was not designed as much to be broadly scale across many, many, say high hundreds or thousands of devices. But definitely addressed some of the performance issues that were coming up as flash media was becoming. So it was increasing the overall storage performance that we could experience if you will. >> Let's talk about host interfaces, PCIe. What's the significance there? >> Really all the storage in the world, all the performance in the world on the storage side, is not of much use to you unless you can really feed it into the beast, if you will, into the CPU and into the the rest of the service subsystem. And that's really where PCI comes into play. PCI originally was in parallel form and then moved to serial with the PCI Express as we know it today, and really has created a pathway to enable not only storage performance but any other adapter or any other networking or other types of technologies to just open up that pathway and feed the processor. And as we've moved through from PCI to PCI Express PCI 2.0 3.0 4.0, and just opening up those pipes has really enabled just a tremendous amount of flow of data into the compute engine, allowing it to be analyzed, sorted used to analyze data, big data, AI type applications. Just those pipes are critical in those types of applications. >> We know we've seen dramatic increases in performance, going from one generation of PCIe to the next. But how does that translate into the worlds of SaaS, SATA and NVMe? >> So from a performance perspective when we look at these different types of media whether it be SATA, SaaS or NVMe, of course, there are performance difference inherent in that media, SATA being probably the lowest performing with NVMe topping out at higher performing although SaaS can perform quite well as a flash based as protocol connected to flash based media. And of course, NVMe from an individual device scaling, from a by one to a by four interface, really that is where NVMe kind of has enabled a bigger pipe directly to the storage media, being able to scale up to by four whereas SaaS can limit it to by one, maybe by two in some cases, although most servers only connect the SaaS device of by one. So from a different perspective then you're really wanting to create a solution or enable the infrastructure to be able to consume that performance at NVMe is going to give you. And I think that is something where our solutions have really in the recent generation shined, at their ability to really now keep up with storage performance and NVMe, as well as provide that connectivity back down into the SaaS and SATA world as well. >> Let's talk about your perspective on RAID today. >> So there've been a lot of views and opinions on RAID over the years, it's been and those have been changing over time. RAID has been around for a very, very long time, probably about as long as again, going back over my 30 year career, it's been around for almost the entire time. Obviously RAID originally was viewed as some thing that was very, very necessary devices fail. They don't last forever, but the data that's on them is very, very important and people care about that. So RAID was brought about knowing that individual devices that are storing that data are going to fail, and really took cold as a primary mechanism of protection. But as time went on and as performance moved up both in the server and both in the media itself if we start talking about flash. RAID really took on, people started to look at traditional server storage RAID, well, maybe a more of a negative connotation. I think that because to be quite honest, it fell behind a little bit. If you look at things like parity RAID 5 and RAID 6, very, very effective efficient means of protecting your data, very storage efficient, but ultimately had some penalty a primarily around right performance, random rights in RAID 5 volumes was not keeping up with what really needed to be there. And I think that really shifted opinions of RAID that, "Hey it's just not, it's not going to keep up and we need to move on to other avenues." And we've seen that, we've seen disaggregated storage and other solutions pop up and protect your data obviously in cloud environments and things like that have shown up and they have been successful, but. >> So one of the drawbacks with RAID is always the performance tax associated with generating parody for parody RAID. What has Broadcom done to address those potential bottlenecks? >> We've really solved the RAID performance issue the right performance issue. We're in our latest generation of controllers we're exceeding a million RAID 5 right IOPS which is enough to satisfy many, many, many applications as a matter of fact, even in virtual environments aggregated solutions, we have multiple applications. And then as well in the rebuild arena, we really have through our architecture, through our hardware automation have been able to move the bar on that to where the rebuild not only the rebuild times have been brought down dramatically in SaaS based or in I'm sorry in flash based solutions. But the performance that you can observe while those rebuilds are going on is almost immeasurable. So in most applications you would almost observe no performance deficiencies during a rebuild operation which is really night and day compared to where things were just few short years ago. >> So the fact that you've been able to, dramatically decrease the time necessary for a RAID rebuild is obviously extremely important. But give us your overall performance philosophy from Broadcom's point of view. >> Over the years we have recognized that performance is obviously a critically important for our products, and the ability to analyze performance from many many angles is critically important. There are literally infinite ways you can look at performance in a storage subsystem. What we have done in our labs and in our solutions through not only hardware scaling in our labs, but also through automation scripts and things like that, have allowed us to collect a substantial amount of data to look at the performance of our solutions from every angle. IOPS, bandwidth application level performance, small topologies, large topologies, just many, many aspects. It still honestly only scratches the surface of all the possible performance points that you could gather, but we have moved them bar dramatically in that regard. And it's something that our customers really demanded of us. Storage technology has gotten more complex, and you have to look at it from a lot different angles, especially on the performance front to make sure that there are no holes there that somebody's going to run into. >> So based on specific customer needs and requests, you look at performance from a variety of different angles. What are some of the trends that you're seeing specifically in storage per performance today and moving into the future? >> Yeah, emerging trends within the storage industry. I think that to look at the emerging trends, you really need to go back and look at where we started. We started in compute where people were you would have basically your server that would be under the desk in a small business operation and individual businesses would have their own set of servers, and the storage would really be localized to those. Obviously the industry has recognized that to some extent, disaggregation of that, we see that obviously in what's happening in cloud, in hyper-converged storage and things like that. Those afford a tremendous amount of flexibility and are obviously great players in the storage world today. But with that flexibility has come some sacrifice and performance and actually quite substantial sacrifice. And what we're observing is almost, it comes back full circle. The need for inbox high performing server storage that is well protected. And with people with confidence that people have confidence that their data is protected and that they can extract the performance that they need for the demanding database applications, that still exists today, and that still operate in the offices around the country and around the world, that really need to protect their data on a local basis in the server. And I think that from a trend perspective that's what we're seeing. We also, from the standpoint of NVMe itself is really started out with, "Hey, we'll just software rate that. We'll just wrap software around that, we can protect the data." We had so many customers come back to us saying, you know what? We really need hardware RAID on NVMe. And when they came to us, we were ready. We had a solution ready to go, and we're able to provide that, and now we're seeing ongoing on demand. We are complimentary to other storage solutions out there. Server storage is not going to necessarily rule a world but it is surely has a place in the broader storage spectrum. And we think we have the right solution for that. >> Speaking of servers and server-based storage. Why would, for example, a Dell customer care about the Broadcom components in that Dell server. >> So let's say you're configuring a Dell server and you're going, why does hardware where RAID matter? What's important about that? Well, I think when you look at today's hardware RAID, first of all, you're going to see a dramatically better performance. You're going to see dramatically better performance it's going to enable you to put RAID 5 volumes a very effective and efficient mechanism for protecting your data, a storage efficient mechanism. You're going to use RAID 5 volumes where you weren't able to do that before, because when you're in the millions of IOPS range you really can satisfy a lot of application needs out there. And then you're going to also going to have rebuilt times that are lightning fast. Your performance is not going to degrade, when you're running those application, especially database applications, but not only database, but streaming applications, bandwidth to protected RAID volumes is almost imperceptively different from just raw bandwidth to the media. So the RAID configurations in today's Dell servers really afford you the opportunity to make use of that storage where you may not have already written it off as well RAID just doesn't, is not going to get me there. Quite frankly, into this in the storage servers that Dell is providing with RAID technology, there are huge windows open in what you can do today with applications. >> Well, all of this is obviously good news for Dell and Dell customers, thanks again, Andy for joining us, for this Cube Conversation, I'm Dave Nicholson for theCUBE. (upbeat music)

from the cube studios in palo alto in boston bringing you data driven insights from the cube and etr this is breaking analysis with dave vellante snowflake they love the stock at 400 and hated at 165 that's the nature of the business i guess especially in this crazy cycle over the last two years of lockdowns free money exploding demand and now rising inflation and rates but with the fed providing some clarity on its actions the time has come to really dig into the fundamentals of companies and there's no tech company that's more fun to analyze than snowflake hello and welcome to this week's wikibon cube insights powered by etr in this breaking analysis we look at the action of snowflake stock since its ipo why it's behaved the way it has how some sharp traders are looking at the stock and most importantly what customer demand looks like the stock has really provided some great theater since its ipo i know people who got in at 120 before the open and i know lots of people who kind of held their noses and bought the stock on day one at over 300 a day when it closed at around 240 that first day of trading snowflake hit 164 this week it's all-time low as a public company as my college roommate chip simonton a long time trader told me when great companies trade at all times time lows because of panic it's worth taking a shot he did now of course the stock could go lower there's geopolitical risk and the stock with a 64 billion market cap is expensive for a company that's forecast to do around 2 billion in product revenue this year and remember i don't recommend stocks you shouldn't take my advice and my comments you got to do your own research but i have lots of data and i have opinions and i'm willing to share that with you stocks like snowflake crowdstrike z-scaler octa and companies like this are highly volatile when markets are moving up they're going to move up faster than the mean when they're declining they're going to drop more severely and that's clearly what's happened to snowflake so with a company like this you when you see panic selling you'll also see panic buying sometimes like we we've seen with this name it went from 220 to 320 in a very short period earlier snowflake put in a short-term bottom this week and many traders feel the issue was oversold so they bought okay but not everyone felt this way and you can see this in the headlines snowflake hits low but cloud stocks rise and we're going to come back to that is it a buy don't buy the dip buy the dip and what snowflake investors can learn from microsoft and from the street.com snow stock is sliding on the back of ill-conceived guidance and to that i would say that conservative guidance these days is anything but ill-conceived now let's unpack all this a bit and to do so i reached out to ivana delevska who has been on this program before she's with spear invest a female-led etf that goes deep into understanding supply chains she came on breaking analysis and laid out her thesis to buy the dip on snowflake this is a while ago she told me currently spear still likes snowflake and has doubled its position let me share her analysis she called out two drivers for the downside interest rates you know rising of course in snowflakes guidance which my own publication called weak in that previous chart that i just showed you so let's dig into that a bit snowflake guided for product revenues of 67 year on year which was below buy side expectations but i believe within sell side consensus regardless the guide was nuanced and driven by snowflake's decision to pass along price efficiencies to customers from optimizing processor price performance predominantly from aws's graviton too this is going to hit snowflakes revenue a net of about a hundred million dollars this year but the timing's not precise because it's going to hit 165 million but they're going to make up 65 million in increased demand frank slootman on the earnings call made this very clear he said quote this is not philanthropy this stimulates demand classic slootman the point is spear and other bulls believe that this will result in a gain for snowflake over the medium term and we would agree price goes down roi gets better you throw more projects at snowflakes customers going to buy more snowflake and when that happens and it gives the company an advantage as they continue to build their moat it's a longer term bet on cloud and data which are good bets now some of this could also be competitive pressures there have been you know studies that are out there from competitors attacking snowflakes pricing and price performance and they make comparisons oracle's been pretty aggressive as have others but so far the company's customers continue to consume now at a very fast rate now on on this front what can we learn from microsoft that applies to snowflake that's the headline here from benzinga so the article quoted a wealth manager named josh brown talking about what happened to microsoft after the dot-com bubble burst and how they quadrupled earnings over the next decade and the stock went sideways suggesting the same thing could happen to snowflake now i'd like to make a couple of comments here first at the time microsoft was a 23 billion dollar company and it had a monopoly and was already highly profitable steve ballmer became the ceo of microsoft right after the dot-com bubble burst and he hugged onto windows for dear life and lived off of microsoft's pc software monopoly microsoft became an extremely profitable and remarkably uninteresting caretaker of a pc in on-prem software estate during balmer's tenure so i just don't see the comparison as relevant snowflake you know they're going to make struggle for other reasons but that one didn't really resonate with me what's interesting is this chart it poses the question do cloud and data markets behave differently it's a chart that shows aws growth rates over time and superimposes the revenue in the red in q1 2018 aws generated 5.4 billion dollars in revenue and that was growing at the time at nearly a 50 rate now that rate as you can see decelerated quite significantly as aws grew to a 50 billion dollar run rate company that down below where you see it bottoms now it makes sense right law of large numbers you can't keep growing that fast when you get that big well oops look what happened in 2021 aws's growth rate bottoms in the high 20s and then rockets back up to 40 this past quarter as aws surpasses a 70 billion dollar run rate so you have to ask is cloud different is data different is cloud data different or data cloud different let's put it in the snowflake parlance can cloud because of its consumption model and the speed of innovation and ecosystem depth and breadth enable snowflake to exhibit lots of variability in its growth rates versus a say progressive and somewhat linear decline as the company grows revenue which is what you would expect historically and part of the answer relates to its market size here's a chart we've shared before with some additions it's our version of snowflake's total available market they're tam which snowflake's version that that blue data cloud thing superimposed on the right it shows the various layers of market opportunity that we came up with that that snowflake and others we think have in front of them emerging from the disruption of legacy data lakes and data warehouses to what snowflake refers to as its data cloud we think about the data mesh concept and decentralized data architectures with domain ownership and data product and service builders as consistent with snowflake's data cloud vision where snowflake data stores are nodes they're just simply discoverable nodes on the mesh you could have you know data bricks data lakes you know s3 buckets on that mesh it doesn't matter they can be discovered they can be shared and of course they're governed in a federated model now in snowflake's model it's all inside the snowflake data cloud that's fine then you'll go to the out years it gets a little fuzzy you know from edge locations and ai inference it becomes massive and decision making occurs in real time where machines and machine data take over the world instead of you know clicks and keystrokes sounds out there but it's real and how exactly snowflake plays there at this point is unclear but one thing's for sure there'll be a lot of data and it's going to find its way into snowflake you know snowflake's not a real-time engine it's an analytical system it's moving into the realm of data science and you know we've talked about the need for you know semantic layer between those those two worlds of analytics and data science but expanding the scope further out we think that snowflake is a big role to play in this future and the future is massive okay check you got the big tam now as someone that looks at companies through a fundamentals prism you've got to look obviously at the markets in the tan which we just did but you also want to understand customers and it's not hard to find snowflake customers capital one disney micron alliance sainsbury sonos and hundreds of other companies i've talked to snowflake customers who have also been customers of oracle teradata ibm neteza vertica serious database practitioners and they tell me it's consistent soulflake is different they say it's simpler it's more agile it's less complicated to secure and it's disruptive to their traditional ways of doing data management now of course there are naysayers i've spoken to a number of analysts that feel snowflake is deficient in areas like workload management and course complex joins and it's too specialized in a world where we're seeing the convergence of analytics and transactional workloads our own david floyer believes that what oracle is doing with mysql heatwave is radically disruptive to many of the database architectures and blows away anything out there and he believes that snowflake and the likes of aws are going to have to respond now this the other criticism here is that snowflake is not architected for real-time inference where a lot of that edge activity is is going to happen it's a multi-hundred billion dollar market and so look snowflake has a ton of competition that's the other thing all the major cloud players have very capable and competitive database platforms even though they all partner with snowflake except oracle of course but companies like databricks and have garnered tons of vc other vc funded companies have raised billions of dollars to do this kind of elastic consumption based separate compute from storage stuff so you have to always keep an open mind and be aware of potential blind spots for these companies but to the criticisms i would say look snowflake they got there first and watch their ecosystem it's a real key to its continued success snowflake's not going to go it alone and it's going to use its ecosystem partners to expand its reach and accelerate the network effects and fill those gaps and it will acquire its stock is valuable so it should be doing that just as it did with streamlit a zero revenue company that it bought for 800 million dollars in stock and cash just recently streamlit is an open source python library that gets snowflake further deeper into that data science space that data brick space and look watch what snowflake is doing with snowpark it's an api library for processing data and building data intensive applications we've talked about snowflake essentially being becoming the super cloud and building this sort of path-like layer across clouds rather than trying to do it all themselves it seems snowflake is really staring at the api economy and building its ecosystem to plug those holes so let's come back to the customers here's a chart that shows snowflakes customer spending momentum or net score on the the top line that's the vertical axis and pervasiveness in the data or market share and that bottom brown line snowflake has unprecedented net scores and held them up for many many quarters as you can see here going back you know a couple years all leading to its expanded market penetration and measured as pervasiveness of so-called market share within the etr survey it's not like idc market share it's pervasiveness in the data set now i'll say this i don't see how this is sustainable i've been waiting for this to moderate i wouldn't be surprised to see snowflake come back to earth a little bit i think they'll clearly still be highly elevated based on the data that i've seen but but i could see in in one or more of the etr surveys this year this starting to moderate as they get they get big it's just it has to happen um but i would again expect them to have a high spending velocity score but i think we're going to see snowflake you know maybe porpoise a bit here meaning you know it moderates it comes back up it's just really hard to sustain this piece of momentum and higher train retain and scale without absorbing some some friction and some head woods that's going to slow you down but back to the aws growth example it's entirely possible that we could see a similar dynamic with snowflake that you saw with aws and you kind of see it with salesforce and servicenow very successful large entrenched entrenched companies and it's very possible that snowflake could pull back moderate and then accelerate that growth even though people are concerned about the moderated guidance of 80 percent growth yeah that's that's the new definition of tepid i guess i look i like to look at other some other metrics the one that really called you know my my my attention was the remaining performance obligations this last quarter rpo snowflakes is up to something like 2.6 billion and that is a forward-looking indicator of of future revenues so i want to i'd like to see that growing and it's growing at a fast pace so you're going to see some ups and downs with snowflake i have no doubt but i think things are still looking pretty solid for the company growth companies like snowflake and octa and z scalar those other ones that i mentioned earlier have probably been repriced and refactored by investors while there's always going to be market and of course geopolitical risk especially in these times fundamentals matter you've got huge market well capitalized you got a leadership position great products and strong customer adoption you also have a great team team is something else that we look for we haven't touched on that but i'll leave you with this thought everyone knows about frank slootman mike scarpelli and what they've accomplished in their years of working together that's why the stock you know in ipo was was so overvalued they had seen these guys do it before slootman just documented in all this in his book amp it up which gives great insight into the history of of that though you know that pair and and the teams that they've built the companies that they've built how he thinks about building companies and markets and and how you know total available markets super important but the whole philosophy and culture that that he's building in his management style but you got to wonder right how long is this guy going to keep going what keeps him motivated you know i asked him that one time here's what he said why i mean are you in this for the sport what's the story here uh actually that that's not a bad way of characterizing it i think i am in it uh you know for the sport uh you know the only way to become the best version of yourself is to be uh to be under the gun and uh you know every single day and that's that's certainly uh what we are it sort of has its own rewards building great products building great companies uh you know regardless of you know uh what the spoils may be uh it has its own rewards and i i it's hard for people like us to get off the field and uh you know hang it up so here we are so there you have it he's in it for the sport how great is that he loves building companies and that my opinion that's how frank slootman thinks about success it's not about money money's the byproduct of success as earl nightingale would say success is the progressive realization of a worthy ideal i love that quote building great companies building products that change the world changing people's lives with data and insights creating jobs creating life-altering wealth opportunities not for himself but for thousands of employees and partners i'd say that's a pretty worthy ideal and i hope frank slootman sticks with it for a while okay that's it for today thanks to stephanie chan for the background research she does for breaking analysis alex meyerson on production kristen martin and cheryl knight on social with rob hoff on siliconangle and thanks to ivana delevska of spear invest and my friend chip symington for the angles from the money side of things remember all these episodes are available as podcasts just search breaking analysis podcast i publish weekly on wikibon.com and siliconangle.com and don't forget to check out etr.plus for all the survey data you can reach me at devolante or david.velante siliconangle.com and this is dave vellante for cube insights powered by etrbsafe stay well and we'll see you next time [Music] you

>>Hi, everyone. Welcome to the cubes presentation of the eight of us startup showcase open cloud innovations. This is season two episode one of the ongoing series covering the exciting startups from ABC ecosystems today. Uh, episode one, steam is the open source community and open cloud innovations. I'm Sean for your host got two great guests, Webb brown CEO of coop costs and as Thielen, head of business development, coop quest, gentlemen, thanks for coming on the cube for the showcase 80, but startups. >>Thanks for having a Sean. Great to be back, uh, really excited for the discussion we have here. >>I keep alumni from many, many coupons go. You guys are in a hot area right now, monitoring and reducing the Kubernetes spend. Okay. So first of all, we know one thing for sure. Kubernetes is the hottest thing going on because of all the benefits. So take us through you guys. Macro view of this market. Kubernetes is growing, what's going on with the company. What is your company's role? >>Yeah, so we've definitely seen this growth firsthand with our customers in addition to the broader market. Um, you know, and I think we believe that that's really indicative of the value that Kubernetes provides, right? And a lot of that is just faster time to market more scalability, improved agility for developer teams and, you know, there's even more there, but it's a really exciting time for our company and also for the broader cloud native community. Um, so what that means for our company is, you know, we're, we're scaling up quickly to meet our users and support our users, every, you know, metric that our company's grown about four X over the last year, including our team. Um, and the reason that one's the most important is just because, you know, the, the more folks and the larger that our company is, the better that we can support our users and help them monitor and reduce those costs, which ultimately makes Kubernetes easier to use for customers and users out there on the market. >>Okay. So I want to get into why Kubernetes is costing so much. Obviously the growth is there, but before we get there, what is the background? What's the origination story? Where did coop costs come from? Obviously you guys have a great name costs. Qube you guys probably reduced costs and Kubernetes great name, but what's the origination story. How'd you guys get here? What HR you scratching? What problem are you solving? >>So yeah, John, you, you guessed it, uh, you know, oftentimes the, the name is a dead giveaway there where we're cost monitoring cost management solutions for Kubernetes and cloud native. Um, and backstory here is our founding team was at Google before starting the company. Um, we were working on infrastructure monitoring, um, both on internal infrastructure, as well as Google cloud. Um, we had a handful of our teammates join the Kubernetes effort, you know, early days. And, uh, we saw a lot of teams, you know, struggling with the problems we're solving. We were solving internally at Google and we're we're solving today. Um, and to speak to those problems a little bit, uh, you know, you, you, you touched on how just scale alone is making this come to the forefront, right. You know, there's now many billions of dollars being spent on CU, um, that is bringing this issue, uh, to make it a business critical questions that is being asked in lots of organizations. Um, you know, that combined with, you know, the dynamic nature and complexity of Kubernetes, um, makes it really hard to manage, um, you know, costs, uh, when you scale across a very large organization. Um, so teams turned to coop costs today, you know, thousands of them do, uh, to get monitoring in place, you know, including alerts, recurring reports and like dynamic management insights or automation. >>Yeah. I know we talked to CubeCon before Webb and I want to come back to the problem statement because when you have these emerging growth areas that are really relevant and enabling technologies, um, you move to the next point of failure. And so, so you scaling these abstraction layers. Now services are being turned on more and more keeping it as clusters are out there. So I have to ask you, what is the main cost driver problem that's happening in the cube space that you guys are addressing? Is it just sheer volume? Is it different classes of services? Is it like different things are kind of working together, different monitoring tools? Is it not a platform and take us through the, the problem area? What do you guys see this? >>Yeah, the number one problem area is still actually what, uh, the CNCF fin ops survey highlighted earlier this year, um, which is that approximately two thirds of companies still don't have kind of baseline to visibility into spend when they moved to Kubernetes. Um, so, you know, even if you had a really complex, you know, chargeback program in place, when you're building all your applications on BMS, you move to Kubernetes and most teams again, can't answer these really simple questions. Um, so we're able to give them that visibility in real time, so they can start breaking these problems down. Right. They can start to see that, okay, it's these, you know, the deployments are staple sets that are driving our costs or no, it's actually, you know, these workloads that are talking to, you know, S3 buckets and, you know, really driving, you know, egress costs. Um, so it's really about first and foremost, just getting the visibility, getting the eyes and ears. We're able to give that to teams in real time at the largest scale Kubernetes clusters in the world. Um, and again, most teams, when they first start working with us, don't have that visibility, not having that visibility can have a whole bunch of downstream impacts, um, including kind of not getting, you know, costs right. You know, performance, right. Et cetera. >>Well, let's get into that downstream benefit, uh, um, problems and or situations. But the first question I have just throw naysayer comment at you would be like, oh, wait, I have all this cost monitoring stuff already. What's different about Kubernetes. Why what's what's the problem I can are my other tool is going to work for me. How do you answer that one? >>Yeah. So, you know, I think first and foremost containers are very dynamic right there. They're often complex, often transient and consume variable cluster resources. And so as much as this enables teams to contract construct powerful solutions, um, the associated costs and actually tracking those, those different variables can be really difficult. And so that's why we see why a solution like food costs. That's purpose built for developers using Kubernetes is really necessary because some of those older, you know, traditional cloud cost optimization tools are just not as fit for, for this space specifically. >>Yeah. I think that's exactly right, Alex. And I would add to that just the way that software is being architected deployed and managed is fundamentally changing with Kubernetes, right? It is deeply impacting every part of scifi software delivery process. And through that, you know, decisions are getting made and, you know, engineers are ultimately being empowered, um, to make more, you know, costs impacting decisions. Um, and so we've seen, you know, organizations that get real time kind of built for Kubernetes are built for cloud native, um, benefit from that massively throughout their, their culture, um, you know, cost performance, et cetera. >>Uh, well, can you just give a quick example because I think that's a great point. The architectures are shifting, they're changing there's new things coming in, so it's not like you can use an old tool and just retrofit it. That's sometimes that's awkward. What specific things you see changing with Kubernetes that's that environments are leveraging that's good. >>Yeah. Yeah. Um, one would be all these Kubernetes primitives are concepts that didn't exist before. Right. So, um, you know, I'm not, you know, managing just a generic workload, I'm managing a staple set and, or, you know, three replica sets. Right. And so having a language that is very much tailored towards all of these Kubernetes concepts and abstractions, et cetera. Um, but then secondly, it was like, you know, we're seeing this very obvious, you know, push towards microservices where, you know, typically again, you're shipping faster, um, you know, teams are making more distributed or decentralized decisions, uh, where there's not one single point where you can kind of gate check everything. Um, and that's a great thing for innovation, right? We can move much faster. Um, but for some teams, um, you know, not using a tool like coop costs, that means sacrificing having a safety net in place, right. >>Or guard rails in place to really help manage and monitor this. And I would just say, lastly, you know, uh, a solution like coop costs because it's built for Kubernetes sits in your infrastructure, um, it can be deployed with a single helmet stall. You don't have to share any data remotely. Um, but because it's listening to your infrastructure, it can give you data in real time. Right. And so we're moving from this world where you can make real time automated decisions or manual decisions as opposed to waiting for a bill, you know, a day, two days or a week later, um, when it may be already too late, you know, to avoid, >>Or he got the extra costs and you know what, he wants that. And he got to fight for a refund. Oh yeah. I threw a switch or wasn't paying attention or human error or code because a lot of automation is going on. So I could see that as a benefit. I gotta, I gotta ask the question on, um, developer uptake, because develop, you mentioned a good point. There that's another key modern dynamic developers are in, in the moment making decisions on security, on policy, um, things to do in the CIC D pipeline. So if I'm a developer, how do I engage with Qube cost? Do I have to, can I just download something? Is it easy? How's the onboarding process for your customers? >>Yeah. Great, great question. Um, so, you know, first and foremost, I think this gets to the roots of our company and the roots of coop costs, which is, you know, born in open-source, everything we do is built on top of open source. Uh, so the answer is, you know, you can go out and install it in minutes. Like, you know, thousands of other teams have, um, it is, you know, the, the recommended route or preferred route on our side is, you know, a helm installed. Um, again, you don't have to share any data remotely. You can truly not lock down, you know, namespace eat grass, for example, on the coop cost namespace. Um, and yeah, and in minutes you'll have this visibility and can start to see, you know, really interesting metrics that, again, most teams, when we started working with them, either didn't have them in place at all, or they had a really rough estimate based on maybe even a coop cost Scruff on a dashboard that they installed. >>How does cube cost provide the visibility across the environment? How do you guys actually make it work? >>Yeah, so we, you know, sit in your infrastructure. Um, we have integrations with, um, for on-prem like custom pricing sheets, uh, with card providers will integrate with your actual billing data, um, so that we can, uh, listen for events in your infrastructure, say like a nude node coming up, or a new pod being scheduled, et cetera. Um, we take that information, join with your billing data, whether it's on-prem or in one of the big three cloud providers. And then again, we can, in real time tell you the cost of, you know, any dimension of your infrastructure, whether it's one of the backing, you know, virtual assets you're using, or one of the application dimensions like a label or annotation namespace, you know, pod container, you name it >>Awesome. Alex, what's your take on the landscape with, with the customers as they look the cost reductions. I mean, everyone loves cost reductions as a, certainly I love the safety net comment that Webb made, but at the end of the day, Kubernetes is not so much a cost driver. It's more of a, I want the modern apps faster. Right? So, so, so people who are buying Kubernetes usually aren't price sensitive, but they also don't want to get gouged either on mistakes. Where is the customer path here around Kubernetes cost management and reduction and a scale? >>Yeah. So I think one thing that we're looking forward to hearing this upcoming year, just like we did last year is continuing to work with the various tools that customers are already using and, you know, meeting those customers where they are. So some examples of that are, you know, working with like CICT tools out there. Like we have a great integration with armoring Spinnaker to help customers actually take the insights from coop costs and deploy those, um, in a more efficient manner. Um, we're also working with a lot of partners, like, you know, for fauna to help customers visualize our data and, you know, integrate with or rancher, which are management platforms for Kubernetes. And all of that I think is just to make cost come more to the forefront of the conversation when folks are using Kubernetes and provide that, that data to customers and all the various tools that they're using across the ecosystem. Um, so I think we really want to surface this and make costs more of a first-class citizen across, you know, the, the ecosystem and then the community partners. >>What's your strategy of the biz dev side. As you guys look at a growing ecosystem with CubeCon CNCF, you mentioned that earlier, um, the community is growing. It's always been growing fast. You know, the number of people entering in are amazing, but now that we start going, you know, the S curves kicking in, um, integration and interoperability and openness is always a key part of company success. What's Qube costs is vision on how you're going to do biz dev going forward. >>Absolutely. So, you know, our products opensource that is deeply important to our company, we're always going to continue to drive innovation on our open source product. Um, as Webb mentioned, you know, we have thousands of teams that are, that are using our product. And most of that is actually on the free, but something that we want to make sure continues to be available for the community and continue to bring that development for the community. And so I think a part of that is making sure that we're working with folks not just on the commercial side, but also those open source, um, types of products, right? So, you know, for Fanta is open source Spinnaker's are open source. I think a lot of the biz dev strategies just sticking to our roots and make sure that we continue to drive it a strong open source presence and product for, for our community of users, keep that >>And a, an open source and commercial and keep it stable. Well, I got to ask you, obviously, the wave is here. I always joke, uh, going back. I remember when the word Kubernetes was just kicked around pre uh, the OpenStack days many, many years ago. It's the luxury of being a old cube guy that I am 11 years doing the cube, um, all fun. But if we remember talking to him in the early days, is that with Kubernetes was, if, if it worked, the, the phrase was rising, tide floats all boats, I would say right now, the tides rising pretty well right now, you guys are in a good spot with the cube costs. Are there areas that you see coming where cost monitoring, um, is going to expand more? Where do you see the Kubernetes? Um, what's the aperture, if you will, of the, of the cost monitoring space at your end that you think you can address. >>Yeah, John, I think you're exactly right. This, uh, tide has risen and it just keeps riding rising, right? Like, um, you know, the, the sheer number of organizations we use C using Kubernetes at massive scale is just mind blowing at this point. Um, you know, what we see is this really natural pattern for teams to start using a solution like coop costs, uh, start with, again, either limited or no visibility, get that visibility in place, and then really develop an action plan from there. And that could again be, you know, different governance solutions like alerts or, you know, management reports or, you know, engineering team reports, et cetera. Um, but it's really about, you know, phase two of taking that information and really starting to do something with it. Right. Um, we, we are seeing and expect to see more teams turn to an increasing amount of, of automation to do that. Um, but ultimately that is, uh, very much after you get this baseline highly accurate, uh, visibility that you feel very comfortable making, potentially critical, very critical related to reliability, performance decisions within your infrastructure. >>Yeah. I think getting it right key, you mentioned baseline. Let me ask you a quick follow-up on that. How fast can companies get there when you say baseline, there's probably levels of baseline. Obviously all environments are different now. Not all one's the same, but what's just anecdotally you see, as that baseline, how fast we will get there, is there a certain minimum viable configuration or architecture? Just take us through your thoughts on that. >>Yeah. Great question. It definitely depends on organizational complexity and, you know, can depend on applicational application complexity as well. But I would say most importantly is, um, you know, the, the array of cost centers, departments, you know, complexity across the org as opposed to, you know, technological. Um, so I would say for, you know, less complex organizations, we've seen it happen in, you know, hours or, you know, a day less, et cetera. Um, because that's, you know, one or two or a smaller engineering games, they can share that visibility really quickly. And, um, you know, they may be familiar with Kubernetes and they just get it right away. Um, for larger organizations, we've seen it take kind of up 90 days where it's really about infusing this kind of into their DNA. When again, there may not have been a visibility or transparency here before. Um, again, I think the, the, the bulk of the time there is really about kind of the cultural element, um, and kind of awareness building, um, and just buy in throughout the organization. >>Awesome. Well, guys got a great product. Congratulations, final question for both of you, it's early days in Kubernetes, even though the tide is rising, keeps rising, more boats are coming in. Harbor is getting bigger, whatever, whatever metaphor you want to use, it's really going great. You guys are seeing customer adoption. We're seeing cloud native. I was told that my friends at dock or the container side is going crazy as well. Everything's going great in cloud native. What's the vision on the innovation? How do you guys continue to push the envelope on value in open source and in the commercial area? What's the vision? >>Yeah, I think there's, there's many areas here and I know Alex will have more to add here. Um, but you know, one area that I know is relevant to his world is just more, really interesting integrations, right? So he mentioned coop costs, insights, powering decisions, and say Spinnaker, right? I think more and more of this tool chain really coming together and really seeing the benefits of all this interoperability. Right. Um, so that I think combined with, uh, just more and more intelligence and automation being deployed again, that's only after the fact that teams are really comfortable with his decisions and the information and the decisions that are being made. Um, but I think that increasingly we see the community again, being ready to leverage this information and really powerful ways. Um, just because, you know, as teams scale, there's just a lot to manage. And so a team, you know, leveraging automation can, you know, supercharge them and in really impactful ways. >>Awesome, great integration integrations, Alex, expand on that. A whole different kind of set of business development integrations. When you have lots of tool chains, lots of platforms and tools kind of coming together, sharing data, working together, automating together. >>Well. Yeah, we, so I think it's going to be super important to keep a pulse on the new tools. Right. Make sure that we're on the forefront of what customers are using and just continuing to meet them where they are. And a lot of that honestly, is working with AWS too, right? Like they have great services and EKS and managed Prometheus's. Um, so we want to make sure that we continue to work with that team and support their services as that launched as well. >>Great stuff. I got a couple of minutes left. I felt I'll throw one more question in there since I got two great experts here. Um, just, you know, a little bit change of pace, more of an industry question. That's really no wrong answer, but I'd love to get your reaction to, um, the SAS conversation cloud has changed what used to be SAS. SAS was, oh yeah. Software as a service. Now that you have all these kinds of new kinds of you have automation, horizontally, scalable cloud and edge, you now have vertical machine learning. Data-driven insights. A lot of things in the stack are changing. So the question is what's the new SAS look like it's the same as the old SAS? Or is it a new kind of refactoring of what SAS is? What's your take on this? >>Yeah. Um, there's a web, please jump in here wherever. But in, in my view, um, it's a spectrum, right? There's there's customers that are on both ends of this. Some customers just want a fully hosted, fully managed product that wouldn't benefit from the luxury of not having to do any, any sort of infrastructure management or patching or anything like that. And they just want to consume a great product. Um, on the other hand, there's other customers that have more highly regulated industries or security requirements, and they're going to need things to deploy in their environment. Um, right now QP cost is, is self hosted. But I think in the future, we want to make sure that, you know, we, we have versions of our product available for customers across that entire spectrum. Um, so that, you know, if somebody wants the benefit of just not having to manage anything, they can use a fully self hosted sat or a fully multitenant managed SAS, or, you know, other customers can use a self hosted product. And then there's going to be customers that are in the middle, right, where there's certain components that are okay to be a SAS or hosted elsewhere. But then there's going to be components that are really important to keep in their own environment. So I think, uh, it's really across the board and it's going to depend on customer and customer, but it's important to make sure we have options for all of them. >>Great guys, we have SAS, same as the old SAS. What's the SAS playbook. Now >>I think it is such a deep and interesting question and one that, um, it's going to touch so many aspects of software and on our lives, I predict that we'll continue to see this, um, you know, tension or real trade-off across on the one hand convenience. And now on the other hand, security, privacy and control. Um, and I think, you know, like Alex mentioned, you know, different organizations are going to make different decisions here based on kind of their relative trade-offs. Um, I think it's going to be of epic proportions. I think, you know, we'll look back on this period and just say that, you know, this was one of the foundational questions of how to get this right. We ultimately view it as like, again, we want to offer choice, um, and make, uh, make every choice be great, but let our users, uh, pick the right one, given their profile on those, on those streets. >>I think, I think it's a great comment choice. And also you got now dimensions of implementations, right? Multitenant, custom regulated, secure. I want have all these controls. Um, it's great. No one, no one SaaS rules the world, so to speak. So it's again, great, great dynamic. But ultimately, if you want to leverage the data, is it horizontally addressable? MultiTech and again, this is a whole nother ball game we're watching this closely and you guys are in the middle of it with cube costs, as you guys are creating that baseline for customers. Uh, congratulations. Uh, great to see you where thanks for coming on. Appreciate it. Thank you so much for having us again. Okay. Great. Conservation aiders startup showcase open cloud innovators here. Open source is driving a lot of value as it goes. Commercial, going to the next generation. This is season two episode, one of the AWS startup series with the cube. Thanks for watching.

>>Welcome to this cube conversation. I'm Dave Nicholson, and this is part of the AWS startup showcase season two. I'm very happy to have with me Webb brown CEO of Qube cost web. Welcome to the program. How are you? I'm doing >>Great. It's great to be here, Dave. Thank you so much for having me really excited for the discussion. >>Good to see you. I guess we saw each other last down in Los Angeles for, for coop con, >>Right? Exactly. Right. Still feeling the energy from that event. Hoping we can be back together in person. Not, not too long from now. >>Yeah. Well I'll second that, well, let, let's get straight to it. Tell us, tell us about Q cost. What do you guys do? And I think just central to that question is what gives you guys the right to exist? What problem are you solving? >>Yeah, I love the question. So first and foremost coupe costs, we provide cost monitoring and cost management solutions for teams running Kubernetes or cloud native workloads. Everything we do is, is built on open source. Our founding team was working on infrastructure monitoring solutions at Google before this. And, and what we saw was as we had several teammates join the Kubernetes effort very early days at Google, we saw teams really struggling even just to, to monitor and understand Kubernetes costs, right? There's lots of complexity with the Kubernetes scheduler and being able to answer the question of what is the cost of an application or what is the cost of, you know, a team department, et cetera. And the workloads that they're deploying was really hard for most teams. If you look at CNCF study from late last year, still today, about two thirds of teams, can't answer where they are spending money. And what we saw when digging in there is that when you can't answer that question, it's really hard to be efficient. And by be efficient, we, we mean get the right balance between cost and performance and reliability. So we help teams in, in these areas and more where, you know, now have thousands of teams using our product. You know, we feel where we're just getting started on our mission as well. >>So when people hear it, when people think of coop costs, they w they naturally associate that with Kubernetes. And they think, well, Kubernetes is open-source wait, isn't that free? So what, so what costs are you tracking? Exactly. >>Yeah. Great question. We would track costs in any environment where you can run Kubernetes. So if that's on-prem, you can bring a custom pricing sheet to monitor, say the cost of your underlying CPU course, you know, GPU's memory, et cetera. If you're running in a cloud environment, we have integrations with Azure, GCP and AWS, where we would be able to reflect all the complexity of, you know, whatever deployment you have, whether you're using a spot and multiple regions where you have complex enterprise discounts are eyes savings plans, you name it, we'd be reflecting it. So it's really about, you know, not just generic prices, it's about getting the right price for your organization. >>So the infrastructure that goes into this calculation can be on premises or off premises in the form of cloud. I heard that, right? >>Yeah, that's exactly right. So all of those environments, we'd give you a visibility into all the resources that your Kubernetes clusters are consuming. Again, that's, you know, nodes, load balancers, every resource that it's directly touching also have the ability for you to pull in external costs, right? So if you have Kubernetes tenants that are using S3 or cloud sequel, or, you know, another external cloud service, we would make that connection for you. And then lastly, if you have shared costs, sometimes even like the cost of a dev ops team, we'd give you the ability to kind of allocate that back to your core infrastructure, which may be used for showback or even charged back across your, your, >>So who are the folks in an organization that are tapping into this, are these, you know, our, our, our, our developers being encouraged to be cognizant of these costs throughout the process, or is this just sort of a CFO on down visibility tool? >>Yeah, it's a great, it's a great question. And what we see is a major transformation here where, you know, kind of shift left from a cost perspective where more and more engineering teams are interested in just being aware or having transparency. So they can build a culture of accountability with costs, right, with the amazing ability to rapidly push to production and iterate, you know, with microservices and Kubernetes, it's hard to have this kind of, you know, just wait for say the finance team to review this at the end of the month or the end of the quarter. We see this increasingly be being viewed in real time by infrastructure teams, by engineering teams. Now finance is still a very important stakeholder and, you know, absolutely has a very important like seat at the table in these conversations. But increasingly these are, again, real time or near real time engineering decisions that are really moving the needle on cost and cost efficiency, overtime and performance as well. >>Now, can you use this to model what costs might be, or is this, or is this, you know, you, you mentioned monitoring in real time, is this only for pulling information as it exists, or could you do, could you use some of the aspects of, of, of your toolset to make a decision, whether something makes more sense to run on your existing infrastructure on premises versus moving into, you know, working in a cloud? Is that something that is designed for or not? >>Great question. So we do have the ability to predict cost cost going forward, based on everything we've learned about your environment, whether you're in multi-cloud hybrid cloud, et cetera. So some really interesting functionality there and a lot more coming later this year, because we do see more and more teams wanting to model the state of the future, right? As you deploy really complex technologies, like say the cluster auto scale or, or HPA in different environments, it can really challenging to do an apples to apples comparison, and we help teams do exactly that. And again, gonna have a lot more interesting announcements here later this year. >>So later that later this year, meaning not in the next few minutes while we're together, >>Nothing new to announce on that front today, but I would say, you know, expect later this quarter for us to have more. >>Okay, that sounds good. Now, now you touched on this a little bit, but I want to hone in on why this is particularly relevant now and moving into the future. You know, we've always tracking costs has always been important, you know, even before the Dawn of cloud, but why is it increasingly important? And, and, you know, there are, there are alternatives for cost tracking legacy alternatives that are out there. So talk about why it's particularly relevant now and tell us what your super power is. You know, what's the, all right. All right. >>Secrets, >>Secret sauce is something you can't share super power. You can talk about >>Absolutely >>NDA. So yes, >>Your superpower. Yeah. Great questions. So for support, just to, to, to touch on, what's fundamentally changing to make a company like ours, you know, impactful or relevant. There's really three things here first and foremost is the new abstractions or complexities that come with Kubernetes, right. Super powerful, but from a cost standpoint, make it considerably harder to accurately track costs. And the big transformation here is, you know, with Kubernetes, you can, at any given moment have 50 applications running on a single node or a single VM, you can fast forward five minutes and there could be 50 entirely new applications, right? So just assigning that VM or, you know, tagging that VM back to an application or team or department really is not relevant in those places. So just the new complexity related to costs makes this problem harder for teams. Second is what we touch on. >>Just again, the power of Cooney. Kubernetes is the ability to allow distributed engineering teams to work on many microservices concurrently. So you're no longer in a lot of ways managing this problem where they centralized kind of single point of decision-making. Oftentimes these decisions are distributed across not only your infrastructure team, but your engineering team. So just the way these decisions and, you know, innovation is happening is changing how you manage these. And lastly, it's just scale, right? The, the cloud and, you know, Kubernetes continue to be incredibly successful. You know, where as goop costs now managing billions of dollars as these numbers get bigger and bigger just becomes more of a business focus and business critical issue. So those are the, you know, the three kind of underlying themes that are changing. When I talk about what we do, that makes us special. It's really this like foundational layer of visibility that we build. >>And what we can do is in real time with a very high degree of accuracy at the largest Kubernetes clusters in the world, give you visibility at any dimension. And so from there, you can do things like have real-time monitoring. You can have real-time insights, you can allow automation to make decisions on these, you know, inputs or data feeds. You can set alerts, you can set recurring reports. All of these things are made possible because of, you know, the, the, I would say really hard work that we've done to, again, give this real-time visibility with a high degree of accuracy at, at crazy scale. >>So if we were to play little make-believe for a moment, pretend like I'm a skeptical sitting on the fence. Not sure if I want to go down this path kind of person. And I say, you know what, web, I think I have a really good handle on all of my costs so far. What would you hit me with as, as, as an example of something that people really didn't expect until they, until they were running coup costs and they had actually had that visibility, what are some of the things that people are surprised by? >>Yeah. Great question. There'd be a number, number one. I'd have, you know, one data point I want to get from you, which is, you know, for your organization or for all of your clusters, what is your cost efficiency? Can you answer that with a high degree of accuracy and by cost efficiency? >>And the answer is now. So tell me, tell me, tell me how to sign up for coupons. >>Yeah. And so the answer, the answer there is you can go get our community version, you know, you can be up and running in minutes, you don't have to share any data, right? Like it is, you know, simply a helmet install, but cost efficiency is this notion of, of every dollar that you are spending on provision resources. What percentage of those dollars are you actually utilizing? And we have, you know, we, we now have, you know, thousands of teams using our product and we've worked with, you know, hundreds of them really closely, you know, this is, you know, that's not the entire market, but in our large sample sizes, we regularly see teams start in the low 20% cost efficiency, meaning that approximately 80% is quote waste time and time. Again, we see teams just be shocked by this number. And again, most of it is not because they were measuring it and accurately or anything like that. Most teams again today still just don't have that visibility until they start working with this. >>So is that, is that sort of the, I in my house household, certain members seem to only believe that there is one position for a light switch, and that would be the on position. Is there, is this a bit of a parallel where, where folks are, are spinning up resources and then just out of sight, out of mind, maybe not spinning them down when not needed. Yeah. >>Yeah. It's, it's, that's definitely one class of the challenges I would say, you know, so today, if you look at our product, we have 14 different insights across like different dimensions of your infrastructure one, or, or I would say several of those relate to exactly what you just described, which is you spin up a VM, you spend a bit load balancer, you spin up an external IP address. You're using it. You're not paying for it. Another class is this notion of, again, I don't have an understanding of what my resources cost. I also don't have a great sense for how much my microservice or application will need. So I'm just going to turn on all the lights, which is, or I'm going to drastically over provision again, I don't know the cost, so I'm just going to kind of set it and forget it. And if my application is performing, you know, then you know, we're doing well here. Again, with this visibility, you can get much more specific, much more accurate, much more actionable with making that trade off, you know, again, down to the individual pod workload, you know, deployment, et cetera. >>So we've, we've touched on this a bit peripherally, but give me an example. You know, you, you run into someone who happens to be a happy user of coop cost. What's the dream story that you love to hear from them about what life was before was before coop costs and what life was like after? >>Yeah, there's a lot, a lot of different dimensions there. You know, one, one is, you know, working with an infrastructure team that, that used to get asked these questions a lot about, you know, why does this cost so much, or why are we spending this and Kubernetes or, or wire expenses growing the rate that they are, you know, like when this, when this works, you know, engineering teams or infrastructure teams, aren't getting asked those questions, right? The tool could cost itself is getting asked that and answering that. So I think one is infrastructure teams, not fielding those types of questions as much. Secondly, is just, you know, more and more teams rolling this out throughout their organization. And ultimately just getting, building a culture of awareness, like ownership, accountability. And then, you know, we just increasingly are seeing teams, you know, find this right balance between cost and performance again. So, you know, in certain cases, improving performance, when are resource bottlenecks in places and other places, you know, reducing costs, you know, by 10 plus million dollars, ultimately at the end of the day, we like to see just teams being more comfortable running their workloads in Kubernetes, right? That is the ultimate sign of success is just an organization, feels comfortable with how they're deploying, how they're managing, how they're spending in Kubernetes. Again, whether that be, you know, on-prem or transitioning from on-prem to a cloud in multiple clouds, et cetera. >>So we're talking to you today as part of the second season of the AWS startup showcase. What's, what's the relationship there with, with AWS? >>So it is the, the largest platform for coop costs being run today. So I believe, you know, at this point, at least a thousand different organizations running our product on AWS hosted clusters, whether they're, you know, ETS or, or self-managed, but you know, a growing number of those on, on EKS. And, you know, we've just, you know, absolutely loved working with the team across, I think at this point, you know, six or seven different groups from marketplace to their containers team, you know, obviously, you know, ETS and others, and just very much see them continuing to push the boundaries on what's possible from a scale and, you know, ease of use and, you know, just breadth of, of offering to this market. >>Well, we really look forward to having you back and hearing about some of these announcements, things that are, that are coming down the line. So we'll definitely have to touch base in the future, but just one, one final, more general question for you, where do you see Kubernetes in general going in 2022? Is it sort of a linear growth? Is there some, is there an inflection point that we see, you know, a good percentage of software that's running enterprises right now is already in that open source category, but what are your thoughts on Kubernetes in 2022? >>Yeah, I think, you know, the one word is everywhere is where I see Kubernetes in 2022, like very deep in the like large and really complex enterprises. Right. So I think you'll see just, you know, major bets there. And I think you'll continue to see more engineers adopted. And I think you'll also continue to see, you know, more and more flavors of it, right? So, you know, some teams find that running Kubernetes anymore serverless fashion is, is right for them. Others find that, you know, having full control, you know, at every part of the stack, including running their own autoscaler for example is really powerful. So I think just, you know, you'll see more and more options. And again, I think teams increasingly adopting the right, you know, abstraction level on top of Kubernetes that works for their workloads and their organizations >>Sounds good. We'll we'll, we'll come back in 2023 and we'll check and see how that, how that all panned out. Well, it's been great talking to you today as part of the startup showcase. Really appreciate it. Great to see you again. It's right about the time where I can still tell you happy new year, because we're still, we're still in January here. Hope you have a great 2022 with that from me, Dave Nicholson, part of the cube part of AWS startup showcase season two, I'd like to thank everyone for joining and stay with us for the best in hybrid tech coverage.

>>Here you are new. Welcome back to the cubes. Continuing coverage of AWS reinvent 2021 live from Las Vegas. Lisa Martin, with John farrier, John, we have two live sets. There's a dueling set right across from us two remote studios over 100 guests on the cube at AWS reinvent 2021. Been great. We've had great conversations. We're talking about the next generation of cloud innovation and we're pleased to welcome one of our alumni back to the program. Lisa Bernays here, the CEO and co-founder of D L Z P group. Lisa. Welcome. >>Hi, thank you. I appreciate the opportunity to be here with you and John. It's a great opportunity >>And John's lucky he gets to lease us for the price of London. One second. Talk to me about da DLDP. This is a woman and minority owned company. Congratulations. That's awesome. But talk to us about your organization and then we'll kind of dig into your partnership with AWS. >>Sure. So DLC P group, we found it in 2012. Um, and for us, we were at the time we were just looking for a way to offer a value added service to our customers. We wanted to always make sure that we were giving them the best quality, but what I also wanted to do is I wanted to create an environment for my employees, where they felt valued, and we kind of built these core values back then about respect, flat hierarchy, um, team, team learning, mentorship, and we incorporated, so everybody can do this remotely from around the world. So we've always made sure that our employees and customers are getting the best value. >>Well, what kind of customers, what target market, what kind of customers do you guys work with? >>Well, we've actually made sure that we're diverse. We make sure that we have 50% in public sector and 50% in private sector, but it's been very, very interesting journey for us because once we started one sec, like we started with cities and then a number of cities started contacting us to do more business. So it's always been this hurdle to make sure we're diverse enough to make sure we offer the best solutions. >>And you jumped in with AWS back in 2012 when most folks were still to your point. I saw your interview earlier this summer, thinking about Amazon as a bookstore, why a debit? What did you see as the opportunity back in 2012 with them? >>Well, when we first heard about AWS, my first thought is, well, it's amazon.com. What is AWS? And then once we started talking to them, we saw the capabilities and the potential there. We saw what it could do. So we partnered with them to actually have the first working PeopleSoft customer on AWS. So that's a large ERP application and that helped build the foundation to prove what could actually run on the cloud. And since then, we've been able to prove so much more about the technology and what AWS is accomplishing. >>Was it a hard sell back in the day? >>It was a little bit hard, but it was interesting because we were speaking with one of our customers they're on premise and they're like, well, you know, we're going to have to re do a whole data center. We're talking about millions of dollars. We don't really have the budget to redo this. And that's when we're like, well, we have this great partnership with Amazon. We think this would be the perfect opportunity to let you try the cloud and see how successful it was. >>At least I want to point out you got your, one of the Pathfinders that Adams Leschi pointed out because back in 2012, getting PeopleSoft onto the cloud, which is really big effort, but that's what everyone's doing now. I just saw the news here. SAP is running their application on graviton too, right? So you start to see and public sector during the pandemic, we saw a ton of connect. So you were really on this whole ERP. ERP is our big applications. It's not small, but now it's, everyone's kind of going that way. What's the current, uh, you feel how you feel about that one? And what's the current update relative to the kind of projects you got going on? >>Well, we've, we've evolved quite a bit. I mean, PeopleSoft is always going to be in our DNA. A lot of my employees are ex or Oracle employees. They have developed a lot of the foundations for PeopleSoft, but since then, like we've worked with serverless technology when that was released a number of years ago, we, we asked our team, okay, AWS just talked about Lambda, serverless technology, go figure out what is the best solution. We ended up running ours, our website serverless. We were one of the first. And from that, we brought our website costs down from hundreds of dollars to pennies a month. So it's a huge savings. And then we started, um, about two years ago, we spoke with our utility company. Um, there were saying how with machine learning, they were only going to be able to get a 75% accuracy for their wind turbines. And we said, well, let us take a shot at it. We have some great solutions on AWS that we think might work. We were able to redo their algorithm using AWS cloud native tools, open source data to get a 97 to 99% accuracy on a daily basis. And that saves them millions of dollars each day. >>Don's right. And as Adam was saying with some of the folks, customers, he was highlighting on main stage the other day, you are a Pathfinder. How did you get the confidence? Especially as a female minority owned business. I'd love to just get maybe for some of those younger viewers out there. How did you get the confidence to, you know what? I think we can do this. >>I think for me, I, I, I don't like to take no for an answer. There's always a solution. So we're always looking at technology, seeing how we can use it to get a better answer. >>What do you think about reinvent this year? A lot of goodies here every year, there's always new creative juices flowing because it's a learning conference, but it's also feels like a futuristic kind of conference. What's your take this year? >>I don't know if you happen to attend midnight madness when they were talking about robotics and the future with that. I mean, we've been talking about that for a number of years of what could be created with robotics. Like even my son back in middle school was talking about creating a robot Butler. He just, everybody knows what the future is. And it's so great that we finally have the foundation in technology to be able to create these >>Well, if you're someone that doesn't like to say, no, does your son actually have a robot Butler these >>Days? He's still working on it. >>That's a good answer to say, Hey, sorry, your mom's not going to be there to get the robot. The latency thing. This is the robot. First of all, we'd love the robotics, I think is huge. We just had George on who's the fraught PM for ECE to edge and late, the wavelength stuff looks really promising for the robotics stuff. Super exciting. >>Yes. We can't wait to start playing with it more. I mean, it's something that our team has been dabbling. We spent probably about 30% of our time on R and D. So we're looking at the future and what we can invent next because >>You guys can affect such dramatic changes for customers. You talked about that wind turbine customer going from 75% accuracy to 97, 90 8%. Where are your customer conversations? Cause that's, is, are they at the C level with showing organizations that dramatic reduction in costs and workforce productivity increased that they can get? >>We talk with everyone it's it could be the solution architect. It could be an intern. It could, and we're just sharing our ideas with them. And we also talk with the C level. Um, it's just, it's everybody is interested in and they have different, different ideas that they want to share. So with the solution architect, we can share with them the code and how we're going to architect it. While the C level, we just pointed out black and white, this is your cost. Now this is what your cost is going to be. And everybody is happy. They, they jump on board with it. >>Lisa, you mentioned 30% R and D by the way, it's awesome. By the way, that's well above most averages, what are you working on? Because I totally think companies should have a big R and D play around budget, get a sandbox, going get some tinkering. Cause you never know where the real discoveries we had. David Brown who runs NC to nitro, came out of a card on the network. So you'd never know where the next innovation comes from. What's the, what are you guys doing for R and D? What's the fun projects are what endeavors. >>So there's two of them. One is actually a product, which is a little bit out of our comfort zone, but we're, we're, we're looking to develop something that will be able to help, um, NASA. So that's the goal where, you know, we've been working on it since they released their ma their mission to Mars projection. So it's something that we're very passionate about, but then we're also building a software. Uh, we've been working on it for about three years now and we actually have two customers prototyping it. So we're hoping to be able to launch it to the public within the next year. >>You mentioned NASA and I just about jumped out of my chair. That was my first job out of grad school was really the space program. Can you tell us a little bit more about what you're helping them do? I love how forward-thinking that they are, obviously they always have been, but tell me a little bit more about that. >>So I can't share too much because it's one of those things is a common sense thing. Once you think about a little bit more, it's kind of like why didn't anybody never think about this? So we're using new technology and old technology together to combine the solution. >>Ooh, I can't wait to learn more. Talk to us about these. Think big for small business TB SB program at AWS. How long have you guys been a part of that and what is it enabling? What is it going to enable you to do in 2022? So >>The think big for small business program was the brainchild is Sandy Carter. And I am always, always going to be grateful to her. Um, I met with her in 2019. I shared her journey, our journey with her about how we started out being a premier partner and then over time, because there's so many other partners, we were downgraded. And because just because we're a small business, and even if I had every employee, even my admin staff certified, we would never have enough employees to be to the next level, even though we had the customers, the references. So she listened to us and other small businesses and created the program. And it's been a great opportunity for us because we're, we're gaining access to capital, you know, funding for opportunities. We're getting resources for training. So it, for us, it's been a huge advantage. >>It sounds like a part of that AWS flywheel that we always talk about. John Sandy Carter being one of our famous Cuba alumni. She was just on yesterday with you. Okay. >>And there's so many opportunities for all businesses because you can, you can tackle these problems. You don't have to be a large partner. You can have specialty in AI works really well in these specialized environments. And even technically single-threaded multithreaded applications, which is a technical CS term is actually better to have a single threaded. If you have too many cores, it's actually bad technically. So the world's changing like big time on how technology. So I'm a huge fan of the program. And I think like it's just one of those things where people can get it from cloud and be successful. >>Yes. And that's the goal. I mean, there is so much opportunity in the cloud and we bring interns on all the time, just so they can learn. And what, what resonated with me the most was we brought a high school senior in, he goes, I was with you guys for three months. I learned more in three months, I did four years of high school. And he's like, you set me up for the future. >>Oh my gosh. If there's not validation for you doing in that statement alone. My goodness. Well, you know, some of the things that, that are so many exciting announcements that have come out of this reinvent, so great to be back in person one. Um, but also, you know, being able to help AWS customers become data companies. Because as we were been talking about the last couple of days, every company has to be a data company. You gotta figure it out. If you're, if you haven't by now, there's a competitor right back here, who's ready to take your spot. Talk to us about what excites you about enabling companies to become data companies as we head into 2020. >>Well, for us, everybody has so much data nowadays. You know, I mean even think about cell phones, how much data is stored in that. So each device has so much information, but what do you do with it? So it's great because a lot of these companies are trying to figure out what, how can we use this data to prove that improve the experience for our customers? So that's where we've been coming in and showing them, okay, well, you can take that data. You look at Lisa and John cell phone. You see that they, they love to look up where they're going to go on their next vacation. You can start creating algorithms to make sure that they get the best experience one for the next vacation to make sure it's not a won't Rob the bank. >>Awesome. And going on vacation tomorrow. So I'll be, I'll be expecting some help from you on that. It's been great to have you on the program. Yeah. Congratulations on the success, the partnership, and where can folks go if if young or old years are watching and are interested in working with you, it's the website where they, where can they go to learn more >>Information? So they can go to D L Z P group.com >>DLZ P group.com. Awesome. Lisa, thanks so much for coming back on the program. Great >>To see you. Thank you so much. All >>Right. For John furrier, I'm Lisa Martin and you're watching the cube, the global leader in live tech coverage.

(bright music) >> Welcome back everyone to theCUBE's coverage of AWS re:Invent 2021 in person. So a live event, physical in-person, also virtual hybrid. So a lot of great action online, check out the website. All the videos are there on theCUBE, as well as what's going on all of the actions on site and theCUBE's here. I'm John Furrier, your host with Dave Vellante, my cohost. Finally, we've got David Brown, VP of Elastic Compute Cloud. EC2, the bread and butter. Our favorite part of Amazon. David, great to have you back on theCUBE in person. >> John, it's great to be back. It's the first time I'd been on theCUBE in person as well. A lot of virtual events with you guys, but it's amazing to be back at re:Invent. >> We're so excited for you. I know, Matt Garman and I've talked in the past. We've talked in the past. EC2 is just an amazing product. It's always been the core block of AWS. More and more action happening and developers are now getting more action and there's well, we wrote a big piece about it. What's going on? The Silicon's really paying off. You've got to also general purpose Intel and AMD, and you've got the custom silicon, all working together. What's the new update? Give us a scoop. >> Well, John, it's actually 15 years of EC2 this year and I've been lucky to be on that team for 14 years and so incredible to see the growth. It's been an amazing journey. The thing that's really driven us, two things. One is supporting new workloads. And so what are the workloads that customers have available out there trying to do on the cloud that we don't support and launch new instance types. And that's the first thing. The second one is price performance. How do we give customers more performance at a continuously decreasing price year-over-year? And that's just driven innovation across EC2 over the years with things like Graviton. All of our inferential chips are custom silicon, but also instance types with the latest Intel Ice Lake CPU's, latest Milan. We just announced the AMD Milan instance. It's just constantly innovation across the ever-increasing list of instances. So super exciting. >> So instances become the new thing. Provision an instance, spin up an instance. Instance becomes, and you can get instances, flavors, almost like flavors, right? >> David: Yeah. >> Take us through the difference between an instance and then the EC2 itself. >> That's correct, yeah. So we actually have, by end of the year, right now we have over 475 different instances available to you whether it's GPU accelerators, high-performance computing instances, memory optimized, just enormous number. We'll actually hit 500 by the end of the year, but that is it. I mean, customers are looking for different types of machines and those are the instances. >> So the Custom Silicon, it's one of the most interesting developments. We've written about it. AWS secret weapon is one of them. I wonder if you could take us back to the decision points and the journey. The Annapurna acquisition, you started working with them as a partner, then you said, all right, let's just buy the company. >> David: Yeah. >> And then now, you're seeing the acceleration, your time to tapeout is way, way compressed. Maybe what was the catalyst and maybe we can get into where it's going. >> Yeah, absolutely. Super interesting story 'cause it actually starts all the way back in 2008. In 2008, EC2 had actually been around for just a little under two years. And if you remember back then, everybody was like, will virtualize and hypervisors, specialization would never really get you the same performances, what they were calling bare metal back then. Everybody's looking at the cloud. And so we took a look at that. And I mean, network latencies, in some cases with hypervisors were as high as 200 or 300 milliseconds. And it was a number of real challenges. And so we knew that we would have to change the way that virtualization works and get into hardware. And so in 2010, 2011, we started to look at how could I offload my network processing, my IO processing to additional hardware. And that's what we delivered our first Nitro card in 2012 and 2013. We actually offloaded all of the processing of network to a Nitro card. And that Nitro card actually had a Annapurna arm chip on it. Our Nitro 1 chip. >> For the offload? >> The offload card, yeah. And so that's when my team started to code for Arm. We started to work on our Linux works for Arm. We actually had to write our own operating system initially 'cause there weren't any operating systems available we could use. And so that's what we started this journey. And over the years, when we saw how well it worked for networking, we said, let's do it for storage as well. And then we said, Hey, we could actually improve security significantly. And by 2017, we'd actually offloaded 100% of everything we did on that server to our offload cards Leaving a 100% of the server available for customers. And we're still actually the only cloud provider that does that today. >> Just to interject, in the data center today, probably 30% of the general purpose cores are used for offloads. You're saying 0% in the cloud. >> On our nitro instances, so every instance we've launched since 2017, our C5. We use 0% of that central core. And you can actually see that in our instance types. If you look at our largest instance type, you can see that we're giving you 96 cores and we're giving you, and our largest instance, 24 terabytes of memory. We're not giving you 23.6 terabytes 'cause we need some. It's all given to you as the customer. >> So much more efficient, >> Much, much more efficient, much better, better price performance as well. But then ultimately those Nitro chips, we went through Nitro 1, Nitro 2, Nitro 3, Nitro 4. We said, Hey, could we build a general purpose server chip? Could we actually bring Arm into the cloud? And in 2018, we launched the A1 instance, which was our Graviton1 instance. And what we didn't tell people at the time is that it was actually the same chip we were using on our network card. So essentially, it was a network card that we were giving to you as a server. But what it did is it sparked the ecosystem. That's why we put it out there. And I remember before launch, some was saying, is this just going to be a university project? Are we going to see people from big universities using Arm in the cloud? Was it really going to take off? And the response was amazing. The ecosystem just grew. We had customers move to it and immediately begin to see improvements. And we knew that a year later, Graviton2 was going to come out. And Graviton2 was just an amazing chip. It continues to see incredible adoption, 40% price performance improvement over other instances. >> So this is worth calling out because I think that example of the network card, I mean, innovation can come from anywhere. This is what Jassy always would say is do the experiments. Think about the impact of what's going on here. You're focused on a mission. Let's get that processing of the lowest cost, pick up some workloads. So you're constantly tinkering with tuning the engine. New discovery comes in. Nitro is born. The chip comes in. But I think the fundamental thing, and I want to get your reaction to this 'cause we've put this out there on our post on Sunday. And I said, in every inflection point, I'm old enough, my birthday was yesterday. I'm old enough to know that. >> David: I saw that. >> I'm old enough to know that in the eighties, the client server shifts. Every inflection point where development changed, the methodology, the mindset or platforms change, all the apps went to the better platform. Who wants to run their application on a slower platform? And so, and those inflects. So now that's happening now, I believe. So you got better performance and I'm imagining that the app developers are coding for it. Take us through how you see that because okay, you're offering up great performance for workloads. Now it's cloud workloads. That's almost all apps. Can you comment on that? >> Well, it has been really interesting to see. I mean, as I said, we were unsure who was going to use it when we initially launched and the adoption has been amazing. Initially, obviously it's always, a lot of the startups, a lot of the more agile companies that can move a lot faster, typically a little bit smaller. They started experimenting, but the data got out there. That 40% price performance was a reality. And not only for specific workloads, it was broadly successful across a number of workloads. And so we actually just had SAP who obviously is an enormous enterprise, supporting enterprises all over the world, announced that they are going to be moving the S/4 HANA Cloud to run on Graviton2. It's just phenomenal. And we've seen enterprises of that scale and game developers, every single vertical looking to move to Graviton2 and get that 40% price performance. >> Now we have to, as analysts, we have to say, okay, how did you get to that 40%? And you have to make some assumptions obviously. And it feels like you still have some dry powder when you looked at Graviton2. I think you were running, I don't know, it's speculated anyway. I don't know if you guys, it's your data, two and a half, 2.5 gigahertz. >> David: Yeah. >> I don't know if we can share what's going on with Graviton3, but my point is you had some dry powder and now with Graviton3, quite a range of performance, 'cause it really depends on the workload. >> David: That's right. >> Maybe you could give some insight as to that. What can you share about how you tuned Graviton3? >> When we look at benchmarking, we don't want to be trying to find that benchmark that's highly tuned and then put out something that is, Hey, this is the absolute best we can get it to and that's 40%. So that 40% is actually just on average. So we just went and ran real world workloads. And we saw some that were 55%. We saw some that were 25. It depends on what it was, but on average, it was around the 35, 45%, and we said 40%. And the great thing about that is customers come back and say, Hey, we saw 40% in this workload. It wasn't that I had to tune it. And so with Graviton3, launching this week. Available in our C7g instance, we said 25%. And that is just a very standard benchmark in what we're seeing. And as we start to see more customer workloads, I think it's going to be incredible to see what that range looks like. Graviton2 for single-threaded applications, it didn't give you that much of a performance. That's what we meant by cloud applications, generally, multi-threaded. In Graviton3, that's no longer the case. So we've had some customers report up to 80% performance improvements of Graviton2 to Graviton3 when the application was more of a single-threaded application. So we started to see. (group chattering) >> You have to keep going, the time to market is compressing. So you have that, go ahead, sorry. >> No, no, I always want to add one thing on the difference between single and multi-threaded applications. A lot of legacy, you're single threaded. So this is kind of an interesting thing. So the mainframe, migration stuff, you start to see that. Is that where that comes in the whole? >> Well, a lot of the legacy apps, but also even some of the new apps, like single threading like video transcoding, for example, is all done on a single core. It's very difficult. I mean, almost impossible to do that multi-threaded way. A lot of the crypto algorithms as well, encryption and cryptography is often single core. So with Graviton3, we've seen a significant performance boost for video encoding, cryptographic algorithms, that sort of thing, which really impacts even the most modern applications. >> So that's an interesting point because now single threaded is where the vertical use cases come in. It's not like more general purpose OS kind of things. >> Yeah, and Graviton has already been very broad. I think we're just knocking down the last few verticals where maybe it didn't support it and now it absolutely does. >> And if an ISV then ports, like an SAP's ports to Graviton, then the customer doesn't see any, I mean, they're going to see the performance difference, but they don't have to think about it. >> David: Yeah. >> They just say, I choose that instance and I'm going to get better price performance. >> Exactly, so we've seen that from our ISVs. We've also been doing that with our AWS services. So services like EMR, RDS, Elastic Cache, it will be moving and making Graviton2 available for customers, which means the customer doesn't have to do the migration at all. It's all done for them. They just pick the instance and get the price performance benefits, and so yeah. >> I think, oh, no, that was serverless. Sorry. >> Well, Lambda actually just did launch on Graviton2. And I think they were talking about a 35% price performance improvement. >> Who was that? >> Lambda, a couple of months ago. >> So what does an ISV have to do to port to Graviton. >> It's relatively straightforward, and this is actually one of the things that has slowed customers down is the, wow, that must be a big migration. And that ecosystem that I spoke about is the important part. And today, with all the Linux operating systems being available for Arm running on Graviton2, with all of the container runtimes being available, and then slowly open source applications in ISV is being available. It's actually really, really easy. And we just ran the Graviton2 four-day challenge. And we did that because we actually had an enterprise migrate one of the largest production applications in just four days. Now, I probably wouldn't recommend that to most enterprises that we see is a little too fast, but they could actually do that. >> But just from a numbers standpoint, that's insanely amazing. I mean, when you think about four days. >> Yeah. >> And when we talked on virtually last year, this year, I can't remember now. You said, we'll just try it. >> David: That's right. >> And see what happens, so I presume a lot of people have tried it. >> Well, that's my advice. It's the unknown, it's the what will it take? So take a single engineer, tell them and give them a time. Say you have one week, get this running on Graviton2, and I think the results are pretty amazing, very surprised. >> We were one of the first, if not the first to say that Arm is going to be dominant in the enterprise. We know it's dominant in the Edge. And when you look at the performance curves and the time to tape out, it's just astounding. And I don't know if people appreciate that relative to the traditional Moore's law curve. I mean, it's a style. And then when you combine the power of the CPU, the GPU, the NPU, kind of what Apple does in the iPhone, it blows away the historical performance curves. And you're on that curve. >> That's right. >> I wonder if you could sort of explain that. >> So with Graviton, we're optimizing just across every single part of AWS. So one of the nice things is we actually own that end-to-end. So when it starts with the early design of Graviton2 and Graviton3, and we obviously working on other chips right now. We're actually using the cloud to do all of the electronic design automation. So we're able to test with AWS how that Graviton3 chip is going to work long before we've even started taping it out. And so those workloads are running on high-frequency CPU's on Graviton. Actually we're using Graviton to build Graviton now in the cloud. The other thing we're doing is we're making sure that the Annapurna team that's building those CPUs is deeply engaged with my team and we're going to ultimately go and build those instances so that when that chip arrives from tapeout. I'm not waiting nine months or two years, like would normally be the case, but I actually had an instance up and running within a week or two on somebody's desk studying to do the integration. And that's something we've optimized significantly to get done. And so it allows us to get that iteration time. It also allows us to be very, very accurate with our tapeouts. We're not having to go back with Graviton. They're all A1 chips. We're not having to go back and do multiple runs of these things because we can do so much validation and performance testing in the cloud ahead of time. >> This is the epiphany of the Arm model. >> It really is. >> It's a standard. When you send it to the fab, they know what's going to work. You hit volume and it's just no fab. >> Well, this is a great thread. We'll stay on this 'cause Adam told us when we met with them for re:Invent that they're seeing a lot more visibility into use cases at the scale. So the scale gives you an advantage on what instances might work. >> And makes the economics works. >> Makes the economics work, hence the timing, the shrinking time to market, not there, but also for the apps. Talk about the scale advantage you guys have. >> Absolutely. I mean, the scale advantage of AWS plays out in a number of ways for our customers. The first thing is being able to deliver highly optimized hardware. So we don't just look at the Graviton3 CPU, you were speaking about the core count and the frequency and Peter spoke about a lot of that in his keynote yesterday. But we look at how does the Graviton3 CPU work with the rest of the instance. What is the right balance between the CPU and memory? The CPU and the Hydro. What's the performance and the drive? We just launched the Nitro SSD, which is now we've actually building our own custom SSDs for Nitro getting better performance, being able to do updates, better security, making it more cloudy. We're just saying, we've been challenged with the SSD in the parts. The other place that scales really helping is in capacity. Being able to make sure that we can absorb things like the COVID spike, or the stuff you see in the financial industry with just enormous demand for compute. We can do that because of our scale. We are able to scale. And the final area is actually in quality because I have such an enormous fleet. I'm actually able to drive down AFR. So annual failure rates, are we well below what the mathematical theoretical tenant or possibility is? So if you look at what's put on that actual sticker on the box that says you should be able to get a full percent AFR. At scale and with focus, we're actually able to get that down to significantly below what the mathematical entitlement was actually be. >> Yeah, it's incredible. I've got a great, and this is the advantage, and that's why I believe anyone who's writing applications that has includes a database, data transfer, any kind of execution of code will use the stack. >> Why would they? Really, why? We've seen this, like you said before, whether it was PC, then the fastest Pentium or somebody. >> Why would you want your app to run slower? >> Unix box, right? ISVS want it to run as fast and as cheaply as possible. Now power plays into it as well. >> Yeah, well, we do have, I agree with what you're saying. We do have a number of customers that are still looking to run on x86, but obviously customers that want windows. Windows isn't available for Arm and so that's a challenge. They'll continue to do that. And you know the way we do look at it is most law kind of died out on us in 2002, 2003. And what I'm hoping is, not necessarily bringing wars a little back, but then we say, let's not accept the 10%, 15% improvement year-over-year. There's absolutely more we can all be doing. And so I'm excited to see where the x86 world's going and they doing a lot of great stuff. Intel Ice Lakes looking amazing. Milan is really great to have an AWS as well. >> Well, I'm thinking it's fair point 'cause we certainly look what Pat's doing it at Intel and he's remaking the company. I've said he's going to follow on the Arm playbook in my mind a little bit, and which is the right thing to do. So competition is a good thing. >> David: Absolutely. >> We're excited for you and a great to see Graviton and you guys have this kind of inflection point. We've been tracking for a while, but now the world's starting to see it. So congratulations to your team. >> David: Thank you. >> Just a couple of things. You guys have some news on instances. Talk about the deprecation issue and how you guys are keeping instances alive real quick. >> Yeah, we're super customer obsessed at Amazon. And so that really drives us. And one of the worst things for us to do is to have to tell a customer that we no longer supporting a service. We recently actually just deprecated the ECG classic network. I'm not sure if you saw that and that's actually off the 10 years of continuing to support it. And the only reason we did it is we have a tiny percentage of customers still using that from back in 2012. But one of the challenges is obviously instance hardware eventually will ultimately time out and fail and have hardware issues as it gets older and older. And so we didn't want to be in a place, in EC2, where we would have to constantly go to customers and say that M1 small, that C3, whatever you were running, it's no longer supported, please move. That's just a text that customers shouldn't have to do. And if they still getting value out of an older instance, let them keep using it. So we actually just announced at re:Invent, in my keynote on Tuesday, the longevity support for EC2 instances, which means we will never come back to you again and ask you to please get off an instance, because we can actually emulate all those instances on our Nitro system. And so all of these instances are starting to migrate to Nitro. You're getting all the benefits of Nitro for now some of our older zen instances, but also you don't have to worry about that work. That's just not something you need to do to get off in all the instance. >> That's great. That's a great test service. Stay on as long as you want. When you're ready to move, move. Okay, final question for you. I know we've got time, I want to get this in. The global network, you guys are known for AWS cloud WAN serve. Gives you updates on what's going on with that. >> So Werner just announced that in his keynote and over the last two to three years or so, we've seen a lot of customers starting to use the AWS backbone, which is extensive. I mean, you've seen the slides in Werner's keynote. It really does span the world. I think it's probably one of the largest networks out there. Customers starting to use that for actually their branch office communication. So instead of going and provisioning the own international MPLS networks and that sort of thing, they say, let me onboard to AWS with VPN or direct connect, and I can actually run the AWS backbone around the world. Now doing that actually has some complexity. You got to think about transit gateways. You got to think about those inter-region peering. And AWS cloud when takes all of that complexity away, you essentially create a cloud WAN, connecting to it to VPN or direct connect, and you can even go and actually set up network segments. So essentially VLANs for different parts of the organization. So super excited to get out that out of there. >> So the ease of use is the key there. >> Massively easy to use. and we have 26 SD-WAN partners. We even partnering with folks like Verizon and Swisscom in Switzerland to telco to actually allow them to use it for their customers as well. >> We'll probably use your service someday when we have a global rollout date. >> Let's do that, CUBE Global. And then the other was the M1 EC2 instance, which got a lot of applause. >> David: Absolutely. >> M1, I think it was based on A15. >> Yeah, that's for Mac. We've got to be careful 'cause M1 is our first instance as well. >> Yeah right, it's a little confusion there. >> So it's a Mac. The EC2 Mac is with M1 silicon from Apple, which super excited to put out there. >> Awesome. >> David Brown, great to see you in person. Congratulations to you and the team and all the work you guys have done over the years. And now that people starting to realize the cloud platform, the compute just gets better and better. It's a key part of the system. >> Thanks John, it's great to be here. >> Thanks for sharing. >> The SiliconANGLE is here. We're talking about custom silicon here on AWS. I'm John Furrier with Dave Vellante. You're watching theCUBE. The global leader in tech coverage. We'll be right back with more covers from re:Invent after this break. (bright music)

>> From theCUBE studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE in ETR. This is Breaking Analysis with Dave Vellante. >> Despite the more than $100 billion spent each year fighting Cyber-crime. When we do an end-of-the year look back and ask "How did we do?" The answer is invariably the same, "Worse than last year." Pre pandemic, the picture was disheartening, but since March of 2020 the situation has only worsened as cyber-criminals have become increasingly sophisticated, better funded and more brazen. SecOps pros continue to fight, but unlike conventional wars, this one has no end. Now the flip side of course, is that markets continue to value cybersecurity firms at significant premiums. Because this huge market will continue to grow by double digits for the foreseeable future. Hello and welcome to this week's Wikibon theCUBE Insights powered by ETR. In this Breaking Analysis, we look at the state of cybersecurity in 2021 and beyond. We'll update you with the latest survey data from enterprise technology research and share the fundamentals that have investors piling into the security space like never before. Let's start with the customer view. Cybersecurity remains the number one priority for CIOs and CSOs. This latest ETR survey, once again asked IT buyers to rank their top priorities for the next 12 months. Now the last three polling period dating back to last March. Cybersecurity has outranked every top spending category, including cloud, data analytics, productivity software, networking, AI, and automation or RPA. Now this shouldn't surprise anybody, but it underscores the challenges that organizations face. Not only are they in the midst of a non-optional digital transformation, but they have to also fund a cyber war that has no ceasefires, no truces, and no exit path. Now there's much more going on in cybersecurity than ransomware, but certainly that has the attention of executives. And it's becoming more and more lucrative for attackers. Here's a snapshot of some of the more well-documented attacks this decade many which have occurred in very recent months. CNA Financial, they got hit earlier this year and paid a $40 million ransom. The Ireland Health Service also got hit this year and refused to pay the ransom, but it's estimated that the cost to recover and the damage to the organization exceeded half a billion dollars. The request was for a $20 million ransom. The JBS meat company hack, they paid $11 million. CWT travel paid $5 million. The disruption from the Colonial Pipeline company, was widely reported they paid more than $4 million, as the Brenntag, the chemical company. The NBA got hit. Computer makers, Quanta and Acer also. More than 2,000 random attacks were reported to the FBI in the first seven months of 2021. Up more than 60% from 2020. Now, as I've said many times, you don't have to be a genius to be a ransomware as today. Anyone can go on the dark web, tap into ransomware as a service. Attackers, they have insidious names like darkside, evil, the cobalt, crime gang, wizard spider, the Lazarus gang, and numerous others. Criminals they have negotiation services is most typically the attackers, they'll demand a specific amount of money but they're willing to compromise in an exchange of cryptocurrency for decryption keys. And as mentioned, it's not just ransomware supply chain attacks like the solar winds hack hit organizations within the U.S government and companies like Mimecast this year. Now, while these attacks often do end up in a ransom situation. The attackers sometimes find it more lucrative to live off the land and stealth fashion and ex filtrates sensitive data that can be sold or in the case of many financial institution attacks they'll steal information from say a chief investment officer that signals an upcoming trading strategy and then the attackers will front run that trade in the stock market. Now, of course phishing, remains one of the most prominent threats. Only escalated by the work from home trend as users bring their own devices and of course home networks are less secure. So it's bad, worse than ever before. But you know, if there's a problem, entrepreneurs and investors, they're going to be there to solve it. So here's a LinkedIn post from one of the top investors in the business, Mike Speiser. He was a founding investor in Snowflake. He helped get pure storage to escape velocity and many, many other successes. This hit my LinkedIn feed the other day, his company Sutter Hill Ventures is co-leading a 1.3 Series D on an $8.3 billion valuation. They're putting in over $200 million. Now Lacework is a threat detection software company that looks at security as a data problem and they monitor exposures across clouds. So very timely. So watch that company. They're going to soar. Now the right hand chart shows venture investments in cybersecurity over the past several years. You can see it exploded in 2019 to $7.6 billion. And people thought the market was peaking at that time, if you recall. But then investments rose a little bit to $7.8 billion in 2020 right in the middle of lockdown. And then the hybrid work, the cloud, the new normal thesis kicked in big time. It's in full gear this year. You can see nearly $12 billion invested in cybersecurity in the first half of 2021 alone. So the money keeps coming in as the problem gets worse and the market gets more crowded. Now we'd like to show this slide from Optiv, it's their security taxonomy. It'll make your eyes cross. It's so packed with companies in different sectors. We'll put a link in our posts, so you can stare at this. We've used this truck before. It's pretty good. It's comprehensive and it's worth spending some time to see what that landscape looks like. But now let's reduce this down a bit and bring in some of the ETR data. This is survey data from October that shows net score or spending momentum on the vertical axis and market share or pervasiveness in the dataset on the horizontal axis. That's a measure of mentioned share if you will. Now this is just isolated on the information security sector within the ETR taxonomies. No filters in terms of the number of responses. So it's every company that ETR picks up in cybersecurity from its buyer surveys. Now companies above that red line, we consider them to have a highly elevated spending momentum for their products and services. And you can see, there are a lot of companies that are in this map first of all, and several above that magic mark. So you can see the momentum of Microsoft and Palo Alto. That's most impressive because of their size, their pervasiveness in the study, Cisco and Splunk are also quite prominent. They don't have as much spending momentum, but they're pretty respectable. And you can see the companies that have been real movers in this market that we've been reporting on for a while. Okta, CrowdStrike, Zscaler, CyberArk, SailPoint, Authzero, all companies that we've extensively covered in previous breaking analysis episodes as the up and comers. And isn't it interesting that Datadog is now showing up in the vertical axis. You see that in the left-hand side up high, they're becoming more and more competitive to Splunk in this space as an alternative and lines are blurring between observability, log analytics, security, and as we previously reported even backup and recovery. But now let's simplify this picture a bit more and filter down a little bit further. This chart shows the same X, Y view. Same data construct and framework, but we required more than a hundred responses to hit the chart. So the companies, they have to have a notable market presence in the ETR survey. It's perhaps a bit less crowded, but still very packed. Isn't it? You can see firms that are less prominent in the space like Datadog fell off. The big companies we mentioned, obviously still prominent Microsoft, Palo Alto, Cisco and Splunk and then those with real momentum, they stand out a little bit. There's somewhat smaller, but they're gaining traction in the market. As we felt they would Okta and Auth zero, which Okta acquired as we reported on earlier this year, both showing strength as our CrowdStrike, Zscaler, CyberArk, which does identity and competition with Okta and SentinelOne, which went public mid this year. The company SentinelOne uses AI to do threat detection and has been doing quite well. SalePoint and Proofpoint are right on that red elevated line and then there's a big pack in the middle. Look, this is not an easy market to track. It's virtually every company plays in security. Look, AWS says some of the most advanced security in the business but they're not in the chart specifically, but you see Microsoft is. Because much of AWS security is built into services. Amazon customers heavily rely on the Amazon ecosystem which is in the Amazon marketplace for security products. And often they associate their security spend with those partners and not necessarily Amazon. And you'll see networking companies you see right there, like Juniper and the bottom there and in the ETR data set and the players like VMware in the middle of the pack. They've been really acquisitive for example, with carbon black. And the, of course, you've got a lot of legacy players like McAfee and RSA and IBM. Look, virtually every company has a security story and that will only become more common in the coming years. Now here's another look at the ETR data it's in the raw form, but it'll give you a sense of two things; One is how the data from the previous chart is plotted. And two, it gives you a time series of the data. So the data lists the top companies in the ETR data sets sorted by the October net score in the right most column. Again, that measures spending momentum. So to make the cut here, you had to have more than a hundred mentions which is shown on the left-hand side of the chart that shared N, IE that's shared accounts in the dataset. And you can track the data from last October, July of this year and the most recent October, 2021 survey. So we, drew that red line just about at the 40% net score market coincidentally, there are 10 companies that are over that figure over that bar. We sometimes call out the four star companies. We give four stars to those companies that both are in the top 10 and spending momentum and the top in prominence are shared N in the dataset. So some of these 10 would fit into that profile by that methodology, specifically, Microsoft, Okta, CrowdStrike, and Palo Alto networks. They would be the four star companies. Now a couple of other things to point out here, DDoS attacks, they're still relevant, and they're real threat. So a company like CloudFlare which is just above that red line they play in that space. Now we've also shaded the companies in the fat middle. A lot of these companies like Cisco and Splunk for example, they're major players in the security space with very strong offerings and customer affinity. We sometimes give them two stars. So this is what makes this market so interesting. It's not like the high end discourage market where literally every vendor in the Gartner magic quadrant is up in the right, okay. And there's only five or four or five, six vendors there. This market is diverse with many, many segments and sub segments, and it's such a vital space. And there's so many holes to fill with an ever changing threat landscape as we've seen in the last two years. So this is in part which makes it such a good market for investors. There's a lot of room for growth and not just from stealing market share. That's certainly an opportunity there, but things like cloud, multi-cloud, shifting end points, the edge ,and so forth make this space really ripe for investments. And to underscore this, we put together this little chart of some of the pure play security firms to see how their stock performance has done recently. So you can see that here, you know, it's a little hard to read, but it's not hard to see that Okta, CrowdStrike, Zscaler on the left have been big movers. These charts where possible all show a cross here, starting at the lockdown last year. The only exception is SentinelOne which IPO mid this year. So that's the point March, 2020 when the whole world changed and security priorities really started to shift to accommodate the work from home. But it's quite obvious that since the pandemic, these six companies have been on a tear for the fundamental reason that hybrid work has created a shift in spending priorities for CSOs. No longer are organizations just spending on hardening a perimeter, that perimeter has been blown away. The network is flattening. Work is what you do, it's no longer a place. As such threats are on the rise and cloud, endpoint security, identity access tools there become increasingly vital and the vendors who provide them are on the rise. So it's no surprise that the players that we've listed here which play quite prominently in those markets are all on fire. So now in summary, I want to stress that while the picture is sometimes discouraging. The entire world is becoming more and more tuned in to the cyber threat. And that's a good thing. Money is pouring in. Look, technology got us into this problem and technology is a defensive weapon that will help us continue this fight. But it's going to take more than technology. And I want to share something. We get dozens and dozens of in bounds this time of the year because we do an annual predictions posts. So folks and they want to help us out. So now most of the in bounds and the predictions that we get, they're just kind of observations or frankly, non predictions that can't really be measured as like where you right, or where you're wrong. So for the most part I like predictions that are binary. For example, last December we predicted their IT spending in 2021 would rebound and grow at 4% relative to 2020. Well, it did rebound but that prediction really wasn't as accurate as I'd like. It was frankly wrong. We think it's actually the market's going to actually grow. Spending's going to grow more like 7% this year. Not to worry plenty of our predictions came true, but we'll leave that for another day. Anyway, I got an email from Dean Fisk of Fisk partners. It's a PR firm representing an individual named Lyndon Brown chief of strategy officer of Pondurance. Pondurance is a security consultancy. And the email had the standard, Hey, in case you're working on a predictions post this year end, blah, blah, blah. But instead of sharing with me, a bunch of non predictions, the notes said here's some trends in cybersecurity that might be worth thinking about. And there were a few predictions sprinkled in there, but I wanted to call it a couple of the comments from Linden Brown, whom I don't know, I never met the guy, but I really thought his trends were spot on. The first was a stat I'll share that the United Nations report cyber crime is up 600% due to the pandemic. If as if I couldn't feel worse already. His first point though was that the hybrid workplace will be the new frontier for cyber. Yes, we totally agree. There are permanent shifts taking place. And we actually predicted that last year, but he further cited that many companies went from zero to full digital transformation overnight and many are still on that journey. And his point is that hybrid work is going to require a complete overhaul of how we think about security. We think this is very true. Now the other point that stood out is that governments are going to crack down on this behavior. And we've seen this where criminals have had their critical infrastructure dismantled by governments. No doubt the U.S government has the capabilities to do so. And it is very much focused on this issue. But it's tricky as Robert Gates, who was the former defense secretary, told me a few years back in theCUBE. He said, well, we have the best offense. We also have the most to lose. So we have to be very careful, but Linden's key point was you are going to see a much more forward and aggressive public policy and new laws that give crime fighters more latitude . Again, it's tricky kind of like the Patriot act was tricky but it's coming. Now, another call-out from Linden shares his assertion that natural disasters will bring increased cyber risk. And I thought this was a really astute point because natural disasters they're on the rise. And when there's chaos, there's cash opportunities for criminals. And I'll add to this that the supply chain risk is far from over. This is going to be continuing theme this coming year and beyond. And one of the things that Linden Brown said in his note to me is essentially you can't take humans out of the equation. Automation alone can't solve the problem, but some companies operate as though they can. Just as bad human behavior, can tramp good security, Good human education and behavior is going to be a key weapon in this endless war. Now the last point is we're going to see continued escalation government crackdowns are going to bring retaliation and to Gates' point. The U.S has a lot at stake. So expect insurance premiums are going to go through the roof. That's assuming you can even get cyber insurance. And so we got to hope for the best, but for sure, we have to plan for the worst because it's coming. Deploy technology aggressively but people in process will ultimately be the other ingredients that allow us to live to battle for another day. Okay. That's a wrap for today. Remember these episodes they're all available as podcasts, wherever you listen just search "breaking analysis" podcast. Check out ETR his website at ETR.plus. We also publish a full report every week on Wikibond.com and siliconangle.com. You can get in touch. Email me @david.volante@tsiliconangle.com or you can DM me @dvellante. Comment on our LinkedIn posts. This is Dave Vellante for theCUBE insights powered by ETR. Have a great week. everybody stay safe, be well. And we'll see you next time. (techno music)

>>Hello, and welcome back to the cubes coverage of.com. Splunk's annual conference is virtual this year. I'm John furrier, host of the cube and a very special guest Sean vice president of product and technology cube, alumni, Sean, great to see you. Thanks for coming on the cube and chatting with us. Thanks. It's great to be here. It's been a while since we chatted, you were at AWS. Now it's Splunk heading up the entire products and technology group here, um, which we've been covering sponsors 2012. So we kinda know a lot about what's going on and, and followed your career. Um, your keynote, we kind of went into this cloud vision is hitting Splunk with the data because the cloud scale, which you know a lot about and data is now taking Splunk to a whole nother level. And that's the big theme you observability multi-cloud and security excuse has been for one there for a while. What's your, what's your assessment. >>Yeah, I mean, you know, uh, you and I have talked a number of times before, and what I found is that, you know, there's a lot of companies through this pandemic that, you know, some are thriving and some are not. And the ones that are really thriving, they have this strong data foundation. Like when you, when you talk to them, they're not stuck. Like they're there. When they talk about scaling or adding capacity or building new co uh, uh, customer experiences, they can, uh, their data platform allows that to happen. But the ones that are are stuck, you know, they just can't, they can't, they can't get to the data. They can't ask those questions that they otherwise, you know, love too. So that's, you know, I think Splunk is right in the middle of that. And that's the fun part of it. >>Yeah. You told me you have the strong foundation when thinking about Splunk is every inflection point in the industry. Over the past decade, you see Splunk do something new operationalized data, do something new, operationalize it. We saw security, I think around 2015, come on the radar at.com. And then since then a whole nother level of data, you've got edge. You have now cybersecurity, even, even more advanced than ever before. And then enterprise is just trying to develop modern applications. So you have this whole rapid scale of CICB pipeline, modern applications and the role of data. Isn't just storing it and managing it. It's like making it addressable. This is like, uh, the, the new current phenomenon of cloud. >>I mean, I liked the way you just put it, it, it really, you know, making data addressable, we put it in terms of like turn data into doing so, you know, if you have data that you're storing it, oh, that's one thing. If you don't, you don't want to leave data behind because you don't know what question you may want to ask. And when, but to your point making it addressable is if you and I decided, Hey, we want to build a new customer experience where we're thinking about doing this thing, and we're going to have a million questions to ask that data is going to help you be, uh, to know whether what you're trying to do for your customers is right or wrong. So it is a, it's remarkable to see how many customers are in pursuit of really turning data into >>Doing so. We've got to you, we had the formula one team on here, McLaren, um, Zach brown. I got a little selfie with, uh, the drivers that kind of cool. My son loved it, but that's an IOT application in my mind, first, the coolest of the sports. Awesome. But like the car going in real time, you know, driving that, driving an advantage with data. So it's an IOT IOT. Then you got just the blocking and tackling >>Data warehouse in the cloud. And then you got companies who are trying to transform a data. So I have to ask you as customers out there, look at Splunk and look at the next level of their architecture with multicloud coming around the corner. How should they be thinking about data? Get the foundation with Splunk. What's the next chapter in your mind? I mean, you know, a lot of customers that I meet they're in multiple clouds. They're not just in one. It means they've got data in Amazon or Google or Azure. A lot of them still have data on prem, you know, but when I talk to customers, they don't say things to me like, Hey, I'm in different clouds, I'm on prem. Can you make sure I have different observability and security experiences for each one? Like they don't, they really, at the end of the day, they're like, look, I need a consistent observability experience, consistent security, regardless of where my data is. >>So what that means to Splunk is, you know, wherever your data is, we're going to be Splunk will just work that that's kinda, as you know, it's how we think about it. And speaking that I had dinner with Lando the other night and it was, I hadn't met Lando before, but man, what an awesome, awesome person. We were just kind of hanging out, talking about data and I ask, this is the kind of stuff you wouldn't normally get. I asked him like, Hey, if you could, if technology could do anything to help you win formula one races, what would it be? A totally open-ended question. And I wasn't sure how he was going to answer it, but he didn't pause this guy. Like you talk about, you think of these scenarios. He's very quickly. He's like, oh man, if we had data, could help me do this and this and this and this because in his business, a millisecond can be the difference between winning or losing a race. And for some of you like, oh, that can't be, but for him, that's how his mind works. So it's crazy to see how excited he was to use tech, to get to data, ask questions that can ultimately help them. >>What was the number one thing pitting the right time or tires? What was he, what did he come up there? He is. >>You know, I can't, unfortunately >>I don't want to put you on the spot. I will be. >>This is like, you know, I, I wouldn't, uh, that would put him in a bad spot, but I will tell you though, I mean, this guy is, and that whole team is really about using data to win. >>Well, you know, I was joking. Um, but these guys can, they came on. Cause you know, I'm a big fan, obviously with the Netflix special driving two survives the name of the title. They become hugely popular to a new fan base, especially techies. Um, I said, Hey, you're driving the advantage with data kind of my little, little comeback to that, but that's really kind of a real encapsulates a real world scenario. I mean, well, there are 10,000 people working on McLaren. You have the driver in the car, you have the car itself with all this instrumentation that kind of encapsulates the enterprise experience right now. They don't have the right app doing the right thing with customers. It could be the difference between having a successful digital transformation or not. So it's kind of like parallel. I mean, I know that's kind of the tie in with the, with the sponsorship, but that's the real world now. >>Yeah, it is. And I mean, if you think about it, there's two drivers per car, 10 teams. There's so many races, there's a tremendous amount of money that they're all spending. But you know, when, when your season is really composed of a certain number of races and you got millions of people tuning in you're right. There's hundreds of people working behind the seat. Could you imagine if they didn't use data and you're trying to, you're, you're trying to race and formula one against the best drivers and the best engineers in the world. I just, you know, it goes to show you're right. It is, it's a perfect example of them transforming as any other enterprise, basically using data to get an advantage. >>And just before we move on to the next topic, the e-sports thing is fascinating as well, because now they're taking this memento verse kind of vibe where they're moving people on the e-sports, where they're having the shadow competition. It's a very interesting kind of bringing the fan base in, but there's probably gonna be a lot of data involved in that as well. Maybe identify the next driver who knows, hopefully, you know, good stuff. So Sean, you're in charge of process technology. I have to ask you, um, as customers look at all the different solutions out there, I'll say multicloud check, you guys have a good vision on that. Like that observability. I mean, that's the fashion right now. Let's talk about observability that there's so many companies out there doing quote observability. How should customers think about what that means in context to the decision of they make everyone's coming into the, the CSO or the CIO saying, um, your observability solution? >>Yeah, I mean first, um, you know, what is observability? I always like to just sort of map it back to things we might understand. So back in the day, monitoring really was connect to a machine. It has a monolith app, you know this and you just try to debug this one thing. That's not the world we live in today. Today when you're building apps in the cloud, you're you, you have hundreds of these services behind the scenes. Like no one person can actually comprehend all of it. So now all of a sudden tools become, they really matter. And what I would say is from a Splunk perspective, when we talk to customers, it's not like one person there, one team is quote, you know, working and making the whole system work. Oftentimes you have different teams like network teams, app teams, security teams, and they all kind of need to work together in one way shape or another. But this is why, you know, when rebuild our systems, it's off of shared data so that, you know, if I'm an operator, you're an app developer. And if I need to work with you, at least I can share something with you in context. So we, we, while there are individual tools to do certain things, our mental model is that they all do work together. That's super, super important for any observability thing you're looking at. You just want to make sure that you can see things end to end. Otherwise you get in trouble >>Quick. You know, I'd love to get your perspective being new to Splunk as you come in and new, the industry obviously has experienced that in the cloud has been well documented, certainly in the cube. What's it like there because as you come in, it's not a utility anymore. It's not a tool anymore. It's a platform and it's getting bigger and growing. So you have probably a lot of things going on. So you walk in and you, you say, okay, let me see the price of technology. Were you blown away? What was your reaction? What can you share some, uh, color around what's uh, what was it like when you open up the doors of the kingdom of the product? >>Yeah. Well, I mean, these t-shirts are real men and there's like ponies running around this. The Splunkers love to have fun. And you know, before I came to Splunk, the one thing I noticed, anytime I asked my thoughts long, they were fired up. Like they were really, really excited about the tech, but when I got into it, the truth is, you know, you don't know what you don't know until you see it, but I was just done to, to then sort of connect the dots like wow. Splunk is in the core data plane of tens of thousands of enterprises all over the world, like the data plane for all of their architecture and applications. So with that becomes a great responsibility, as you could imagine, but it is not just a tool. It is something that customers like. I dunno, the university of Illinois, you know, with COVID, they'll they'll track, uh, they'll track 3.2 million saliva tests just for contract tracing and behind the scenes, they're using Splunk for a real thing. Or we've talked about F1 or you think of slack, like we're all kind of using slack. These days, slack is using, um, uh, Splunk to make sure that their environment of slackers and everything's building it's all secure. So th it's those stories that go on and on are just incredible. When you learn that, >>I started at Teresa Carlson yesterday, and we were talking about the growth opportunity and I spent speculating that, you know, my opinion, my opinion, that's looking, hang on the cube is that Splunk's that this new inflection point that another elbow, another kickoff, the growth, the way it's positioned. If you look at kind of where it's been, kind of where it's going with security now as a platform with the enterprises, how do you describe that growth in your mind? Because obviously this market's changing an edge real time. All these things are happening. What's, what's the, where's the growth going to be? >>Yeah, I think it's in the cloud. I mean, if you think of Splunk, I think the company is about 18, 19 years old. So its history is an almost 20 years of on-premise software. In some sense, you might go, Hey, is that a liability? But Rio, the reality is it's a strength because we're already part of these enterprise infrastructures and application stacks. And then when you now move that group to the cloud, and then you got all others coming to the cloud, that's where they're, I mean, it is just the tip of what is happening. So, you know, if I'm a customer and I moved to the cloud in the cloud, it's like, I don't have to really scale or size anything. Like it just works. And it, to me, it's just an end point and I load data. So in that context, the number of new use cases that customers are able to get after is actually pretty awesome. But really at the end of the day it's cloud. >>Well, great to have you on, I know you've got to go. Thanks for coming on the queue. One final question. What's your vision for the next year or two, what's your to do items. What's the message to the marketplace. >>You know, I'm, I'm thrilled to be here, but at the end of the day, you know, my message to the marketplaces, we're all excited to work with our customers to really help them have that strong foundation so they can turn data into doing and actually pull off these digital transformation. >>One final final question for the companies that get the cloud scale combined with putting data into action for the, for the value what's the result going to be is they can put more competitive advantage. Is it more agility? What do you see happening when you combine the cloud scale with a great data plane? >>Yeah, I think at the end of the day, these companies would tell you that they can move faster than ever before. They're more competitive there. They have confidence that their environments secure, they can build new customer experiences. And when you put all of that together, honestly, that is what these digital transformations are all >>Great to be in the product and technology business these days. Isn't it a lot of fun, a lot of action. Thanks for coming on the cube. Really appreciate it. Yeah, you bet. Good to be here. It's the cube coverage here, here at the live studio for Splunk studios, for their virtual events, the cube bring you all the action. I'm John for a, your host. Thanks for watching.

(soft music) >> Hi, everyone. Welcome back to the Cube's covers of Splunk's dot com virtual event, their annual summit. I'm John Ferry, host of the cube. We've been covering dot conf since twenty twelve. Usually a physical event in person. This year it's virtual. I'm here with Claire Hockin, the CMO of Splunk. She's been here three and a half years. Your first year as CMO, and you got to go virtual from physical. Welcome to the cube. Good to see you. >> Thank you very much, John. Great. >> I got to ask you, I mean, this has been the most impressive virtual venue, you've taken over the hotel here in Silicon valley. You're entire teams here. It feels like there's a dynamic of like the teamwork. You can kind of feel the vibe. It's almost like a little VIP Splunk event, but you're broadcasting it to the world. Tell us what's happening. >> Yeah, it's been, I think for everyone a year where we really hope to be back to having a hybrid event, so having a big virtual component, but running dot conf as we had before from Las Vegas, which wasn't possible. So what we thought in the last six weeks is that we would actually bring the Splunk studio to a physical location. So we've been live all of this week from California, where we're sitting today and really thought through bringing the best of that programming to our, you know, our amazing audience of twenty six thousand people. So we were sitting here in a studio, we have a whole live stage and we've activated the best of dot conf to bring as many Splunkers as we can. And as many external guests to make it feel as real and as vibrant as possible. So. >> I have to say I'm very impressed. Since twenty twelve we've been watching the culture evolve. Splunk has always been that next big thing. And then the next big thing again, it seems to be the theme as data becomes so bigger and more important even than ever. There's a new Splunk emerging, another kind of next big thing. And this kind of says the patterns like do something big, that's new, operationalize it and do something new again. This is a theme, big part of this culture here. Can you share more about how you see this evolving? >> Sure. And I think that's what makes Splunk such a great place to be. And I think it attracts people who like to continually challenge reinvent. And I think we've spent a lot of time this year building out our portfolio, going through this cloud transformation. It just gives you a whole new landscape of how you unlock that power of data and how customers use it. So we've had a lot of fun, always building on top of that building, you know, our partnerships, what customers do and really having fun with it. I think one of the best things about Splunk is we do have this incredibly fun and playful brand and as data just becomes something that is more and more powerful, it's really relatable. And we have fun with activating that and storytelling. So, yeah. >> And you have a new manager, Teresa Carlson came in from Amazon web services. You have a lot more messaging kind of building on previous messaging. How are you handling and looking at the aperture of, that's growing from a messaging standpoint, you have a partner verse, which has rebranded of your solution of your ecosystem, kind of a lot of action going on in your world. What's the update? >> Yeah. It keeps us busy. And I think at one end, you know, the number of people that are using Splunk inside any customer base is just growing. So you have different kinds of users. And this year we're really working hard on how to partner and position Splunk with developers, but at the top end of that, the value of data and the idea of having a data foundation is something that's incredibly compelling for CTOs. So working really hard about looking at Splunk and data from that perspective, as well as the individual uses across areas like security and observability. So. >> You know, one of the things I wanted to ask you is, I was thinking about this when I was driving in this morning, Splunk has a lot of customers and you keep your customers and you've have a lot of customers that organically came into the Splunk through the product leadership and just great product. And then as security became more important, Splunk kind of takes that territory now. Now mainstream enterprise with the platform are leaning into Splunk solutions, and now you've got an ecosystem. So it's just becoming bigger and bigger just seems that the scale of the Splunk is growing radically bigger than it was, Is that happening? And what's your take on that? >> I think that's definitely a thing, John. So I think that the power of the ecosystem is amazing. We have customers, partners, as you've seen and everything just joins up. So we're seeing more and more dot joining through data. And we're just seeing this incredible velocity in terms of what's possible and how we can co-build with our partners and do more and more with our customers. So Splunk moves incredibly quickly. And I think if anything, we're just, gaining velocity, which is fun and also really challenging. >> Cloud-scale. And certainly during the pandemic, you guys had a tailwind on the business side, talk about the journey that you've had with Splunk as in your career and also for the customers. How are they reacting and what can they expect as Splunk continues to evolve? >> I think we're working really hard to make sure that Splunk is easier to use. Everything gets every more integrated. And I think our goal and our vision is you just capture your data and you can apply it to any use case using Splunk. And to make it sort of easier see that data in action. And one of the things I love from today was the dashboard studio. They're just these beautiful visualizations that really are inspiring around how data is working in your organization. And for me, I've been a Splunker for three and a half years. And I just think there is just so much to do, and there's so much of our story ahead of us and so much potential. So just really enjoying working with customers on the next data frontier, really. >> You have the Jedi Knight from Star Wars speaking, you had the F1 car racing. Lando was here, kind of the young Jedi, the old Jedi. The generations are coming together. You're seeing that old IT world, which relied on Splunk. And now you have this new developer real-time shifting left with security DevOps now going mainstream, you kind of have the confluences of these cultures coming together. It's not really clashing. It's kind of jelling. How are you handling that? How do you see that? What's Splunk kind of doing? Because I can see the themes, am I right? >> No, no. One of the stories from this morning that really struck me is we have Cal Poly and we worked with Cal Poly on their security and they actually have their students using Splunk and they run their whole security environment. And at the very top end, you have Walmart, the Fortune one, just using Splunk at a massive, incredible scale. And I think that's the power of data. I mean, data is something that everyone should and can be able to use. And that's what we're really seeing is unlocking the ability to bring, you know, bring all of your data in service of what you're trying to do, which is fun. And it just keeps growing. >> We had Zach Brown, the CEO of F1 McLaren Racing Team, here on the queue earlier. And it was interesting cause I was like driving the advantage with data, you know, kind of cliche, but they're using data very specifically, highly competitive. It almost kind of feels like a cloud kind of scale model because we've got thousands of people working on the team. They're on the track, they're competing, they're using data, they got to be agile and they got to be fast real time. Kind of sounds like the current enterprise's these days. >> Absolutely. And I think what's interesting about McLaren that the thing I love is either they have hundreds of terabytes of data moving at just at incredible speed through Splunk Enterprise, but it all goes back to their mission control in the UK. And there are 32 people that look at all that data. And I think it's got a half second delay and they make all the decisions for the car on the track. And that I think is a great lesson to any enterprises you have to, you know, you have to bring all that data together and you have to look at it and take decisions centrally for the benefit of your whole team. And I think McLaren is a really good example of when you do that it pays dividends and the team has had a really, really great season. >> Well, I want to say congratulations for pulling off a great virtual event. I know you had your physical event was on track and literally canceled the last minute because of the pandemic with the Delta virus. But it was amazing, made for digital TV kind of event. >> Absolutely, >> This is the future of media. >> Absolutely. And it is a lot of fun. And I think I'm really proud. We have done all of this with our in-house team, the brand, the experiences that you see, which is really fantastic. And it's given us a lot of ideas for sort of, you know, digital media and how we story tell, and really connect to our twenty thousand customers or two hundred and thirty thousand community members and keep everyone connected through digital. So this has been a lot of fun and a really nice moment for us this week. >> You know it's interesting, I was saying to the team here on one of our breaks, is that when you have this kind of agility with media to tell your own story directly, you're almost telling more stories there before. And there's a lot to tell you have a lot of successful customers, the new partners. What's the coolest story that you've seen. What would you share that you think is your favorite? If you could pick one or a few of them, what are your top stories that you see happening? >> So I've talked about Cal Poly, which I love because it's students and you know, the scale of Walmart, but there are so many stories. And I think the ones that I love most are the data heroes. We talk about the data here is a lot of Splunk and the people that are able to harness that data and to take action on that data and make something amazing happen. And we just see that time and time again, across all kinds of organizations where data heroes are surfacing, those insights. Those red flags, if you like and helping organizations stay on step ahead. And Conf is really a celebration of that. I think that's why we do this every year. And we really celebrate those data heroes. So across the program, probably too many to mention, but in every industry and at every scale, people are, you know, making things happen with data and that's an incredibly exciting place to be. >> Well you have a lot of great customers to, to use as references. But I got to ask you that as you go forward this year in marketing, what are your plans to take on this new dynamic? You've got hybrid events, you've got the community is always popular and thriving with Splunk at large-scale enterprises, global system integrators, doing business deals with you guys, as you guys are continuing to grow and grow and grow, what's the strategy? How do you keep the Splunk coolness going? Cause that's, you know, you guys are growing so fast. That's your job, is to keep things on track. What's your strategy? >> I think I look at that and just, we put the customer at the heart of that. And we think, you know, who are the personas, who are the people that use Splunk? What's their experience? What are they trying to do? What are those challenges? And we design those moments to help them move forward faster. And so that I think is just a really good north star. It is really unifying and our partners and customers, and every Splunker gets really behind that. So stay focused on that. >> Thanks for coming on the Cube, really appreciate it. Congratulations for great event. And thanks for having the Cube. We love coming in and sharing our media partnership with you. Thank you for coming. >> Thank you so much. And next year is your tenth year John. So we look forward to celebrating that as well. Thank you very much. >> Thank you. Thanks for coming on. Okay it's the Cube coverage here live in the Splunk studios. We are a virtual event, but it's turning out to be a hybrid event. It's like a VIP event, a lot of great stories. Check them out online. They'll be recycling through so much digital content. This is truly a great digital event. Jeffery, hot of the Cube. Thanks for watching. (soft music)

>>Hello. Welcome back to the cubes coverage of splunk.com virtual this year. I'm John ferry, host of the cube. And one of the great reasons of great reasons of being on site with the team here is we have to bring remote guests in real guests from all no stories, too small. We bring people into the cube to have the right conversations. We've got Brooke Cunningham area, VP of global partner marketing experience. Brooke, welcome to the cube. Thanks for coming on. >>Hey, thank you, John. This is my sixth dot conflict, but this is actually my first time being on the cube. So I'm delighted. >>Great to have you on these new hybrid events. We can bring people in. You don't have to be here. All the execs are here, the partners are here. Great news is happening all around the world. You guys just announced a new partner program for the cloud called partner verse program. This is kind of, you know, mostly partner news is okay. Okay. Partner news partner ecosystem. But I think this is an important story because Splunk is kind of going to the next level of scale. That's to me is my observations walking away from the keynote, a lot of the partners, great technology, great platform, a lot of growth with cloud. We had formula one on you guys have a growing ecosystem. What is the new announcement partner versus about? >>Yes. Thanks, John. And you are spot on. We are growing for scale and Splunk's partner ecosystem is 2200 strong and we were so delighted to have so much partner success highlighted today on the keynotes. And specifically we have announced an all new spunk Splunk partner program called the Splunk partner verse. So we're taking it to new frontiers for our partners, really built for the cloud to help our partners lean into those cloud transformations with their customer. >>Great. Fro can you walk me through some of the numbers inside the numbers for a second? How many partners do you have and what is this program about specifically? >>Yeah, so 2200 partners that we featured some amazing stories in the keynotes today, around some of the momentum we have with partners like AWS, a center blue buoyant, a partner that just recently rearchitected all of their managed services from Splunk enterprise to Splunk cloud, because as they put it, Splunk is the only solution that can truly offer that hybrid solution for their customers. So all new goodness for our partners to help them lean in, to get enabled around all of the Splunk products, as well as to differentiate, differentiate their offerings with a new badging system. And we're going to help our partners really take that to the market by extending and expanding our marketing and creating an all new solutions catalog for our partners to differentiate themselves to their customers. >>You mentioned a couple things I want to double down on this badging thing, get in some of the nuances, but I want to just point out that, you know, and get your reaction to this when you see growth. And I saw this early on with AWS early on, when they performing, when you start to see the ecosystem grow like this, you start to see more enablement. You see more, money-making going on more, more, um, custom solutions, more agility you. So you started to see these things develop around you guys. So what does all this badging mean? How what's in it for me as a partner? Like how do I win on this? >>Yeah, great question. So first of all, John partner listening is a big part of what we do here at Splunk. And it's specifically a major part of what I do in my role. So we create a lot of forums to get that real deal partner feedback. What do they need to be successful with their customers? Especially as Splunk continues to expand our portfolio. And we heard some really clear feedback from our partners. Number one, they need more enablement faster, especially all those new products. They really want to get enabled around new product areas like observability, their customers are asking for it. They secondly told us that being able to differentiate themselves to customers was key. And that showing that they had core expertise around specific solution areas, types of services, as well as specializations. For example, some of our partners that are authorized learning partners, they really want it to be able to showcase these skills and differentiate that to their customers in the market. And it's not a role for us at Splunk to really help them do that. And so we took that feedback and really incorporated it into this new program, badging specifically will help to address some of those things I mentioned. So for example, a lot of badging around those use case areas, security, observability, AOD migrations, as well as specializations. Like I mentioned, for things like, uh, partners that are doing, uh, learning specific partners that are really helping us extend our reach in, in different international markets and so on. >>Okay. Let me just ask a question on the badge if you don't mind. Um, so you mentioned, you mentioned almost like you were going through like verticals is badging to be much more about discovery from a client customer, uh, end user customer standpoint. Are you looking to create kind of much more categorical differentiation is what's the, what, what's the purpose of the badge? Cause I noticed it was like different verticals. I heard security and >>Yeah, so I would say it's think of it as both. So for example, our partners go to market with us in many different ways. Some of them are selling servicing building. So there'll be partner motion badges to really differentiate the different ways that they're supporting customers from a go-to-market approach and then additional badging to help really identify some of those specialization areas around whether that's clunky use cases, specializations and more, uh, for example, a specific badge that we're rolling out right here at.com is around cloud migrations and partners will be able to get started to get engaged on that badge in preparation for our full-scale launch in February, we'll, they'll start to be able to take advantage of learning pathways, get their teams skilled up, and that will then unlock some new incentives as well as, uh, benefits that they can take advantage of things like accessing or of the Splunk's I've experience and the proof of concept platform and really giving their teams more, uh, capability. And, >>You know, I such a recent cross in the hallway here at dot confidence. She was, she and I were talking about how AI and data is enabling a lot of people to create these solutions. So, you know, you got kind of this almost like Amazon web services dynamic, where it's growing really fast and we're hearing stories, how data is driving value. We had formula one on the cube, the keynotes were giving some examples as you start to see this momentum kind of scaling up to the next level, if you're enabling customers, which you are with data, the monetization or the economic shifts, right? So it's healthy ecosystems, the partners create solutions, they deal with the customer, they're making some money, right? So, so can you share your vision on the unit on the economic equation of how partners are tapping into this? Because I almost imagine, um, a thousand flowers are blooming and then you start to see more value being created and Splunk also gets a cut of it, but there's, there should be that kind of deck. And you can talk about that. >>Yeah, absolutely. In fact, one of the things that I have the opportunity to do with our partners is study our partners, success and profitability. And some of the things that we learned from those studies with our partners is that what's really helping our partners to grow their practices with Blanca and their profitability with that business is really the stickiness that they have with their customers, being able to deliver solutions and services and really be those subject matter experts for their customers. And we know that our most successful and profitable partners are servicing their customers across the Splunk cases. So for example, many of our partners came from a security background and they are super deep, super knowledgeable around security, and they are trusted by their customers as the, you know, subject matter experts around security. And so many of them are starting to lean in on some of the new, additional use cases. Observability is a hot topic with our partners right now it's a new and emerging use cases case for them to transition some of the same sets of data that they are addressing in their current appointments with our customers and bring new value with those new use cases. But that's where we're seeing partner profitability growth. >>I love the channel dynamic. There we go, indirect and real and value creation. I got to ask you about the day-to-day dynamic. Of course we all know about the mark injuries and story. Software's eating the world, okay. Software ate the world. Okay. Now that's done. Now we're data is continuing to drive the value proposition. And so that's going to have an impact on how customer your partners serve their customers, ultimately your customer at the end of the day. How, how is that happening? And from a success standpoint, how would you talk to, uh, where people are on the progress of bringing the most innovative solutions? What, where's the headroom, where do you see that going Brook >>There's? I would say there's just endless opportunity here. And we just see so much innovation in our partner ecosystem to create purpose built solutions for their customers business problems. And that's where I think the value of the data comes to life. Really turning that data into doing as is really the Matic for all the things that we're talking about here, uh, at.com 21, that our partners really see these opportunities and then can replicate some of those same solutions for other customers in the same spaces. So for example, you know, really specialized solutions for healthcare where they're, uh, providing, you know, access to all the data across the hospital, or, um, you heard in guard's keynote about unlocking the value of SAP data. This is just a huge opportunity accessing all that data and really turning that data into doing. And we'll be talking even more about the new SAP relationship and the value for the partner ecosystem to go address those FP data sets in their customers. We'll be talking more about that on our partner feature session, which is tomorrow in day two of dotcom. >>Well, you guys to have a nice mix of business in the partner ecosystem from, you know, small boutiques to high-end system integrators and everything in between, I noticed you're doing a lot with censure. Could you talk about how you guys are partnering with the large global system integrators because they're becoming their own clouds. So, you know, as Jerry Chen at Greylock says, are these castles being built in the cloud with real competitive advantage with data? Again, this is a new phenomenon in the past really two years, you're starting to see explosion of, of scale and refactoring business models with data. What's your, what's your reaction to that? >>Absolutely. In fact, we are really leading in with some of these global systems integrators, and you've heard this exciting news in Theresa Carlson's portion of the keynote earlier today, where we've announced a partner, a center partner business group together. And we're so excited about the center and Splunk partner business group. It's going to elevate the Splunk and essential partnership eCenter has invested in thousands and thousands of joint professionals that are skilled up on flunk. They are building a purpose patients. We have so many amazing examples where Splunk and essential work together to solve real life problems. For example, there's a joint solution that helps address anti-human trafficking. Uh, there's a joint solution that helped with vaccine tracking. I mean, just really powerful examples that are just really extending value to customers and solving real life, data problems. >>Well, you guys have a lot of momentum, bro. Congratulations on the success and partner versus we're going to follow it again. It was built for the cloud. I know it's in the headline. It says flunked launches, new partner program for the cloud. Was there a partner program for the on premises and what's different about on the cloud? Was it kind of new, everything is cloud what's that? What does that mean? That statement? Yeah, >>Absolutely. So we, you know, as we've all seen, customers are leaning into the class that growth to the movement, to the cloud, just accelerated during COVID. And so part of that feedback that I referenced earlier that we heard from our partners, they said, we need help. We need help moving faster. And so that's really the underpinning of the all-new Splunk partner vers program is to really that acceleration to skill up our partners and give them the tools to be successful. And so with that, we did want to rebrand and reinvigorate it to really signal this newness. And as it was mentioning earlier, when we were talking about the badges, it's really about making sure we're providing the partners the right enablement so that they can be ready and able to support their customers on this journey, to the cloud, as well as the access, the resources, the support and the marketing so that they can be successful and really featured their expertise and value in the market. >>Well, Brooke, I want to get one final question before we go. Cause I know you have a lot of experience in the partner ecosystems and over your career. And we just interviewed the formula one CEO, uh, Zach brown, and, and they've been very popular with the, with the Netflix series driving to survive. And I was joking with him driving value with data as channel partners and your partners look to the post pandemic survive and thrive trend that people are going through right now. What should they be thinking about when they look at partner versus, and how Splunk can help them drive an advantage, not only just survive, but to actually drive to an advantage. >>I, I just see this as an opportunity for partners that haven't already leaned into the cloud and helping their customers migrate to the cloud now is the time rapid five acceleration is just essential for organizations to reach their most critical missions and their outcomes. And this one partner versus program is a significant move forward for Splunk partners. And we want to pursue a massive market opportunity focused on the cloud with our partners, for our customers. So I just really encourage our partners to engage, participate and join us on this journey. >>Well, it's a lot of evidence to support this vision. Uh, with pandemic, we saw refab replatforming and refactoring the businesses in the cloud at speeds, that unprecedented deployments. So, uh, cloud can, can bring that scale and speed to the table. It's really incredible. So thank you very much for coming on the cube remotely. Thanks have you had, >>Thank you. This was a delight. Really appreciate the time, John and very excited to have my first opportunity to be a >>Okay. You're a cube alumni. We are here in the studios, Splunk studios for their virtual event here with all the top executives and partners bringing in guests remotely. It's a virtual event. So we'll be back in person. I'm Jennifer, the cube. Thanks for watching.

>>Hello, and welcome back to the cubes coverage of splunk.com here in the virtual studios in Silicon valley broadcasting around the world's a virtual event. Um, John four-year host of the queue. We've got a great guest, Zach brown, chief executive officer of McLaren racing, really looking forward to this interview, Zach, welcome to the queue. Well, thanks for coming on. Thanks for having me. So we have a huge fan base in the tech community. A lot of geeks love the neurons. They love the tech behind the sport. Uh, and Netflix is driving to survive. Series has absolutely catapulted the popularity of F1 in the tech community. So congratulations on all the success in that program and on, and then on the >>Thank you very much, it's been a, it's been a good run. We've won our first race in a while, but we still have a ways to go to get in that, uh, world championship that, uh, >>So for the techies out there and the folks in our audience that aren't familiar with, the specifics of the racing team and the dynamics, take a minute to explain what you guys do. >>Uh, so McLaren racing, uh, which has a variety of, uh, racing teams, uh, a formula one team in indie car team and extremely team and an e-sports team. Uh, we're the second most successful form of the one team in the history of sport. Now 183 wins 182, uh, when I joined 20 world championships and, uh, we're, we're close to a thousand people to, to run a couple of racing cars and, uh, currently third in the championship, uh, with Lando Norris and, uh, Daniel, Ricardo. >>So talk about the, um, the, the dynamics of the spore. Obviously data is big part of it. Uh, we see the, a lot of the coverage. You can see anything can happen overnight. It's very quick. Um, technology has been being, uh, playing a big role in sport. What's your vision on how that's evolving? Are you happy with where things are, uh, and where do you see it going? >>Yeah, it does some interesting stats. So, um, the car that qualifies first at the beginning of the year, if you didn't touch, it would be last by the end of the year. So that's the pace of a development of a, of a formula one car. We change a, uh, and develop a new part on the car every 14 minutes, 365 days, days a year. Um, and technology plays a huge role. Uh, it's, it's probably the most technical, um, evolved sport in the world. Uh, both safety data, uh, the innovation it's it's awesome. And what a lot of people don't know is a lot of what we develop in a formula. One car ends up in other parts of the world, whether it was a ventilators that we helped develop for the UK government, uh, to working with our, uh, various partners or safety and innovation in the automotive industry. >>You know, I love it. I always loved the IOT internet of things, story around cars, because sensors or instrumentation is a big part of it. Um, and it all comes together. So it's pretty, it's not simple. No, give it feel, give it a taste a little bit about what's it. How complicated is it, how you guys pay attention to the details? What's important. Take us through some of the, some of the inside the ropes around the IOT of the sensors and all the data. >>Yeah. So we have over 300 sensors on our race car. We collect the one and a half terabytes of data. Every race weekend, we have a thousand people, um, and the strong majority of those are working around data and technology, as opposed to physically touching the car out of those thousand people, you probably only have about 60 or 70. They're actually touch the race card at a race weekend. We've been doing connected cars for about 25 years. So that's kind of a new thing here to, to most people, but we've been communicating back and forth with our race car for, for decades all around the world. And what a lot of people don't realize is it all starts in our mission control back in our factory in Woking, England. So wherever we are around the world, the racing team actually starts in England. >>So I want to ask you about the personalities on the team. How big is the staff? What's the makeup of the personnel has to get the drivers. They're critical. They're a very dynamic personalities. We'll come to the side question on that later, but what's the staff look like on when you guys put this together. So you get, you get race day and you got back office support. >>What's the team look like? Yeah. So you've got about a thousand people that, that make up the collective team. You'll have about a hundred in marketing. Uh, you'll have about a hundred in finance, HR, and then you kind of get to the, the racing team. If you'd like 800 people, you have about a hundred people traveling to each race, uh, about 50 people back at the factory, working with data and communications that are grand Prix weekend. And then everybody else is designing manufacturing, production laminating. So we run 24, 7 shifts, uh, three shifts, uh, in certain parts. Uh, we develop, uh, 85% of the car changes of what's allowed to be changed start of the year to the, the end of the year. So the development is, is unbelievable. >>I know you're here in the U S for the U S grand Prix in Austin. Um, coming up, I'm just curious how cars get transported. >>Uh, w when we're traveling around the world, uh, they, they travel on 7 47 and are flown around the world. And then when we're in Europe, we have about 18 trucks that were communing around when we're kind of in the European part of the circuit is usually in the middle of the year. But when we're going to Australia or Singapore, Bahrain, those are, those are on planes form of the one actually does that. They give us an allocation of, of space, and then we have to write a check if we need more space than where >>Yeah. We're allowed. Yeah. And that brings up the security question, because honestly, there's a lot of fans, a lot of people are into it. Also, this potentially security risks. Have you guys thought about that obviously like physical moving the supply chain around from event event, but also technology risk. Um, how do you guys think about security? >>Yeah, it's, it's critically important. We've had, uh, fortunately we've not had any breach of our technology. We have had a breach in the late nineties of our radio communications and, uh, it was in Australia, Mika Hakkinen and a fan, uh, who I think was probably having some fun and were able to break into our radio channel and actually asked Mika to pit. He pitted team wasn't ready. And fortunately, we will run in one, two, but we actually had to reverse the drivers. So security is >>Critically important, probably Katie Scrivener, and they all look, I just hack the radio, was talking to the driver. That is a funny story, but it could be serious. I mean, now you have all kinds of >>The stuff going on and, and, you know, there's a lot of money at stake, you know, so, you know, we're fortunate in this particular instance, it didn't hurt us cause we were running one, two, so we could reverse the drivers and the right guide one. Um, but you know, that could decide, uh, a world championship and you have, you know, tens of millions of dollars online, but even besides the economics, we want to win races. >>You know, what's funny is that you guys have a lot of serious on the line stakes with these races, but you're known for having a lot of fun, the team team dynamic. I have to ask you, when you finish on the podium one and two, there's a Shui with the drivers. How'd that go down. It was pretty, pretty a big spectacle online and >>Yeah, it was, it was good, fun. That's something, obviously Daniel Ricardo is kind of developed as his thing when he, uh, when he wins. And, uh, when we were, uh, before we went on the podium, he said to me, you're going to do the shoe. Yes, of course. In the car show you got to do, we have to like a bunch of 12 year old kids, uh, on the podium, but that's where we're just big kids going, motor racing and >>The end of the day. Well, I gotta say you guys come across really strong as a team, and I love the fun and, you know, competitive side. So congratulations on that, I think is good on the competitive side, take me through the advantage, driving the advantage with data, because that's really the theme here at.com, which is Splunk, which they're a big partner, as well as your other sponsors. Data's big, you know, and it's striving an advantage. Where do you see that coming from? Take us through where you guys see the advantages. Yes. >>So, you know, everything we do is, is precision and, you know, every second, every 10th counts and, um, you know, you can get all this data in, but what do you do with this data? And the humans can, uh, real, uh, react as quickly as is, you know, people like Splunk who can help us, uh, not only collect data, but help us understand data. And, um, you know, typically there's one pit stop, which can be the difference between winning and losing. Um, you have all these different scenarios playing out with weather with tire wear competition. And so, you know, we live by data. We didn't, uh, when, in, in Russia, when we, uh, could have, and it was because we got a bit emotionally caught up in the excitement of trying to win the race instead of staying disciplined and focused on, on data. And so it's a very data-driven sport when I'm on the pit wall, there's a thing called racer instinct, which is my 30 years in the sport. And, uh, your experience and your kind of your gut to make decisions. And every time our team makes a decision that I'm sitting there going, I'm not sure that was the right decision. They're staring at data. I'm not, I'm trusting my 30 years of experience. They'd beat me nine out of 10. >>Yeah. I mean, you know, this is a huge topic too, in the industry, explainable AI is one of the hottest trends in computer science where there's so much algorithms involved. The gut instinct is now coming back. What algorithms are available, knowing when to deploy what algorithms or what data to pay attention to is a huge new gut factor. Yep. Can you explain how the young drivers and the experience folks in the industry are dealing with this new instinct full data-driven? >>Yeah. That's, you know, that's what we have 50 people back at the factory doing, and they're looking at all sorts of information coming in, and then they're taking that information and they're feeding it to our head of strategy. Who's then feeding it to our racing director. Who's getting all these data points in from tire to performance, to reliability, and then the human data from both drivers coming through their engineers. And then he gets all that information in. He has to process it immediately and make decisions, but it's, it's a data-driven sport. >>I saw Lando walking around, got a selfie with them. It's great. Everyone's loving it on Twitter. My family, like get an autograph, the future of the sport. He's a young young driver. So that instincts coming in the future sport comes up all the time. The tires are a big discussion point, but also you've got a lot of presets going on, a lot of data, a lot of going on and you see the future where there's remote, you know, kind of video game you're in the pit wall and you can make decisions and deploy on behalf of the drivers. Is that something that >>Well, that technology is there and we used to do that, but now it's been outlawed because there's a real push to make sure the drivers are driving the car. So that technology is here. It has been deployed in the past. We could do it, but we're trying to find as a sport, the balance between, you know, letting the driver do it. So he, or she might make a mistake and a little bit of excitement to it. So, um, we now there are certain protocols on what we communicate. Um, we can't, um, everything has to be driver fed into the car. So we can now you'll hear all sorts of codes that we're talking through, which there are, um, about 300 different adjustments the driver can make on the steering wheel, which is unbelievable. And so that's us seeing information, getting data in coming to conclusions that we're giving him or her information that we think will help make the car >>A lot of new dimensions for drivers to think about when they're being successful with the gut, that the track data everything's kind of coming together. >>Yeah. It's amazing. Um, when you listen to these drivers on the radio, you forget that they're going 200 plus miles an hour. Cause they sound quite relaxed in this very, you know, open and easy communication of here's what I'm feeling with. Again, we're talking all these codes and then we all, because we can hear each other, there's a lot of trickery that goes on. So for a driver to be going to turn a miles an hour, taking this information and then know what code we're talking, are we kind of throwing a code out there to put the competition off is pretty amazing that they can take this all in. >>You know, I wish I was younger again, like we're old school and the younger generation, I was having a few conversations with a lot of the young audience. They wanted me to ask you, when are you guys going to metaverse the tracks? When can I get involved and participate and maybe even make the team, or how do I become more active, engaged with the McLaren racing team? >>And that technology is almost, we're actually, um, that's in development. So I, I think it won't be long before, you know, Sunday you can log on, uh, and, and race Lando around Monaco and be in the race. So that, that technology is around the corner. >>That's the shadow thing to developing. I see that. E-sports just quick. I know you've got to go on, but last minute we have here, e-sports, what's the future of e-sports with the team, >>But e-sports been great for the sport. You know, it's gone from, you know, when I was growing up, it was video games and now it's real simulation. And, uh, so we've held, I think we're going four years into it. Now we were the first team to really develop any sports platform and we've had competitors go on to help us with our simulation. So it's, it's real racially developed the race car before it goes on the racetrack it's in simulation. And that's where e-sports, >>And this is the new advantage. This is a new normal, this is where you guys see the data driving. The >>Definitely. And I think the other thing it is, you know, somewhat stick and ball sports, you can play in school. And motor racing has historically been partying, which can cost hundreds of thousands of dollars. Now with e-sports you have a less expensive platform to let young men and women around the world, but a steering wheel in their hand and go motor racing. So I think it's also going to kind of bring that younger generation of fan and >>There's so much collective intelligence, potentially competitive advantage data. Again, data coming up final word to end the segment, Splunk, big partner on the data side, obviously helping you guys financially, as well as you do need some sponsorship support to make the team run. Um, what's the relationship with Splunk? Take a minute to talk about the plug. >>It's been a, it's been great, you know, they're, they're two big contributors. We need a lot of money to run the racing team. So they're a great partner in that respect, but more importantly, they're helping us with our whole data journey, making smarter, quicker decisions. So their contribution to being part of the race team. And, uh, we used our technology. Um, it has been great. And I think, um, you know, if I look at our technology partners, uh, we have many that all contribute to making a >>Yeah. I mean, it really is nice. It's data inaction, it's teamwork, it's competitive, it's fun. That's kind of a good, good, >>I think fun is the center of everything that we do. It's the center of everything spunk does. Cause I think if you have fun, people enjoy going to working a little bit harder. We're seven days a week. And uh, you know, a lot of teammates you've got to work well together. So I think if you're having fun, you enjoy what you're doing and it doesn't feel like work. >>Congratulations on climbing up in the rankings and everything on your team. Two great drivers. Thanks for coming on the cube. We appreciate it. Thank you. All right. We're here. The key. We like to have fun here and get all the action on the tech side. Honestly, F1 is technology enabled data, driving the advantage and driving to is a great Netflix series. Check it out. McLaren's featured heavily in there and got a great team. Zach brown Siegel. Thanks for coming on. Appreciate it. I'm sure for your host. Thank you for watching.