>> System partners. Lie from Barcelona, Spain. It's the cue covering Sisqo Live Europe, brought to you by Cisco and its ecosystem partners. >> Hello and welcome Back to the Cubes Live coverage Day two of three days of wall to wall coverage here in Europe in Barcelona, Spain. Francisco Live twenty nineteen I'm John Career with Dave. A long takes too many man hosting great loaded interviews this week here. Francisco live guys kicking off day to day one was all the big announcement Cisco putting in all the announcement's really is setting in and the messaging coming together, the product portfolios filling out. Clearly, Cisco is adopting and path to the cloud, taking their data center business, securing that bring that data center into the cloud kind of hybrid multi cloud, big messes around multi cloud and then under the hood data center traffic patterns, air changing. Its not a ribbon replaces extension to the environment. Cisco's intent based networking plus Cloud plus Cloud center management. A lot of stuff we discussed that yesterday, but I want your take. Is Cisco's positioning viable? And what does it mean, Visa VI? The competition, because Cisco is a blue chip tech player, certainly have zillions of customers very relevant. This is a huge impact. How their position themselves do. >> Yeah, so So John Roemer a few years ago we were saying, Hyper clouds going Teo hybrid. The hyper scale clouds, the public loud provide you going to take over the world and boy Cisco's in trouble because if a third or half of the market all of a sudden evaporate from them, those enterprise buyers of switches and routers and everything else like that, Cisco is doomed. Well, you know, we listen to the keynote yesterday and Cisco's talking about all of their solutions anywhere. And when you go through the ecosystem of Public Cloud hybrid Cloud multi Cloud, say this Cisco have a play there, and the answer is absolutely, you know, it's not just the you know, after empty acquisition, which has software in a ws. But, you know, S t win is going to be a critical component to get from my data centers to the public clouds on DH. Cisco has software and solutions and consulting TTO help customers in all of these environment. So we always know that there's partnerships and there's competition. There's a lot of players out there, but you know, it was good to see them. You know, talking. You know a lot about what they're doing with Cooper Netease with Amazon because you can't talk about cloud either public cloud or multi cloud without first talking about Amazon. Last year we were a little critical John and said, OK, Google's great, but Google's number three or four. So you've got to be there was Amazon got to be there with Microsoft and certified that we've already interviewed a couple of service writers always been a strength for Sisko to be in there on. So, you know, good positioning. Well, you know, we talked yesterday a bunch about the bridge to possible on where to go. But the more I think about that anywhere is what Cisco's branded everything. And that's when when you talk multicolored multi clouds, really a whole bunch of clouds and a whole bunch of things. And therefore I need a player that's going to help give me coverage in all of these environment and Cisco's making a strong case to be >> there. And Dave. So I mean Stew's, right? A couple years ago, we were critical of Cisco and I think rightfully so. I think the whole industry looked at them as not in the middle of the fairway and certainly the recovery shot. Francisco is really strong because a lot changed. Go back a few years. They didn't have a good ecosystem for developers. They didn't have a good open source position. They kind of work, you know. Do I go up to stack or not? But they had the court networking, so there's a lot of people are saying, Hey, if Cisco doesn't make a move, they're doomed. We were one of them, so lots changed. You seeing the adoption of micro services containers, AP eyes the growth of definite That Suzy we has initiated is clear proof in my opinion. Then you've got the data center guys saying, Hey, what could take networking and and take this and enable clouds. So Cisco, making good moves, put themselves in pole position for growth? >> Well, I think the first point is if you roll back ten years ago, we've not Francisco. We were critical. What? All of it. It was clear to us that cloud was going to be where all the growth wass and if you didn't have a public cloud, you are going to be in trouble unless you developed a cloud strategy. So certainly Cisco de Liam see now you know William c. V. M. Where none of them really owned a public cloud strategy. And five years ago, they had to figure it out. Well, they've figured out that actually, managing multi clouds is a great opportunity. And so Francisco's got a viable strategy. Networks between clouds are going to flatten their going to need management specifically as it relates to Cisco and maybe their competition. They have TTo position themselves as R multi cloud management system is higher performance and more secure than the competition. That's what they have to sell their customers on. And the second piece of that is they got a transition from selling ports to selling software on there, making that transition. So I like their strategy, By the way, I also like VM wear strategy. They capitulated to a ws and now they're tight with a w s. IBM went out, paid two million dollars for soft layer, so they've got a cloud strategy. Oracles got a cloud strategy. Microsoft got a great cloud stress. So if you go through and >> tickle at the hole and they have clouds, so let's let's just understand something. There's clouds and then clouds strategies. Right? So thirty >> four billion dollars that IBM paying for Red Hat is giving them a multi cloud strategy. More than just saying, we have a bunch of data centers in their medals. But it >> was both, maybe not so much in the public cloud, right? I would say I would argue that their public cloud has failed to meet their expectations. That's funnel cloud IBM. And that's why they had to pay thirty four billion dollars for for Red Hat, I would say just the opposite about Microsoft. Their public cloud strategy has been an enormous success, and they're very well positioned for multi cloud. >> Okay, so let's just put on the table. So Cisco looks at the public cloud as partners, not competitors. So Amazon Azure Google aren't competing with Cisco. There are there ways or they're partnering. We'll we'll come understand. Competition is all about understanding, Absolutely as a cloud. So I would say Cisco's strategy to partner just like he did, just like everyone else. And l did. That's the competitive, not cloud So. Or maybe this is the question. Are the public clouds competitive to Sisko >> that their frenemies John? Uh, >> you know, the answer's. Yes, there's no question about this. They're growing at twenty, thirty, forty percent a year. Francisco and IBM, HP. They're growing it, you know, much lower. So single digits. If that's >> so such on, we know if Amazon if there is a profitable space that they can offer competitive service, they will. You know, security. You said Cisco's got a great position Security, both what they've had for a long time, and they've done acquisitions like duo. More recently on DH, you know, we've seen lots of pieces of the public cloud ecosystem that Cisco's bought over the last few years. Clicker was one on one we spent some time talking about, but absolutely, you know, Amazon goes after some of those pieces, so they're gonna partner Cisco's Got it. Last I checked it at least three dozen products in the eight of us marketplace. But you know it is. They can live there, but there will be competition. So >> this girl's got some huge assets in this game. They've got eight hundred thousand plus customers. They, you know, sixty percent of the networking market, so they own the install base. It's really the only market that you can think of that's a major market where they're the dominant player still owns, you know, sixty percent of market never just go for >> networking, and VM wear for the hyper visor are very similar. In that case, Dave and both have now have a similar strategy as to how they're going. >> That's the most interesting competitive dynamic, in my view, is V M wearing this acquisition of Nice era and obviously, Cisco. Cisco is not going to take this lying down. They've got a C. I A and no, they claim number one. They didn't say whose data that was I was looking squinting for is that I D C. Guard divorce her. But, >> well, let's talk about growth because you know how I always complain about market. Researchers aren't on the mark in terms of the reality of where the market is, So you mentioned growth. So are we. If we're early on cloud growth and that's where the growth is, what is the cloud adoption going to look like over the next ten to twenty years? Is it going to look more like public Cloud or is going to look more like on premises evolving to cloud operations And if the growth of cloud operations is all things wide area Network mentioned the wind, then there's more growth coming. So that's the case. Is Sisko going to be able to capture that growth for the future? >> Well, I mean, in terms of growth, I think eight of us is on its way to being a one hundred billion dollars revenue company, and that's pretty impressive given where they are today. I mean, they're gonna triple in revenue, so that's that's where the growth is. So now Cisco's already participating in a huge TAM. What they've got to do is hold on to that business and identify new opportunities where they could manage multi cloud instances and compete effectively with V M. Where who's coming at it from the hyper visor? And now, they said yesterday, trying to do to networks in storage what it did for systems and then IBM Red hat coming out. It really, from the applications perspective and with the services view Microsoft with a foot in both camps, You got Oracle in its little niche. Just really interest. >> We got an install a base that's moving to the cloud. You got net new company they're going to be started might have on premise. Orgel Full Cloud. This is the question that everyone's going to ask. I think Cisco can take their existing base with moving packets from Point A to Point B and storing and making datum or intelligence moving Date around is a big networking phenomenon. >> Here's the question. Here's a question, Andy Jassy would say. We believe they're going to be far fewer data centers in the future that most data is going to live in the public lounge. The likes of Michael Dell, Yeah, Charles Robbins, et cetera. I think they see the world is a hybrid world, right? That there's going to be Mohr data that's in a hybrid on Prem Plus Cloud, then is going to be in the >> public. You know, I love Andy Jazzy, but I'll just say first of all I understand is bias in his perspective. And I think he's right at one level. Why wouldn't Amazon see people moving data centers to the flower? I get that I say that it's going to be in the networks. That's where the action will be. Where are the networks of the networks? In the cloud of the networks on premise. Are the networks on a phone? I OT So if coyote and edge coming together, it's all one network. Yeah, you're gonna have The value is going to be in the network. Not necessarily. The clouds we say or is shared values. >> Yeah. I mean, you talk about EJ computing and Io ti. Cisco's got muraki, which is growing strong. SD LAN is a critical component for this multi cloud piece. There really posed toe, you know, drive this next generation of five G not something we've dug into a lot yet, but, you know, it is finally coming, you know, really soon here. And Cisco has a lot of those pieces to be able to hit the next. >> It always went back to the data, in my opinion, and the leverage points for data are Saso. Yeah, if your own the applications business, you're doing well there, You're in a good position. All the data's running over Cisco Networks, so that puts them in A in a really good position. And and as we know the likes of a Ws and Microsoft Alibaba senator, they're trying to get as much data into their clouds as possible. >> And what I loved yesterday in the keynote is data was actually one of the central components that they talked about, which the Cisco I know of ten or twenty years ago. I was just bitch that ran over our pipes. So they understand the value of data. And they're driving to that mark. >> Well, we've been saying on the Cube now for nine years days at the center of the value proposition Data at the Centre Data Center. Value proposition. This is actually happening. It's really going way. See? A lot of growth and cloud, Dave. Good commentaries do. Well done. We have Sergeant Gupta, one of the bank. All the leaders coming on the Cube here. Francisco breakdown. I'm gonna ask him the tough questions. Stay with us for day two. Coverage here in the Cube live in Barcelona for a stupid him in David want breaking down all the action. We'll be right back with more after this short break