(jazzy music) >> From our studios in the heart of Silicone Valley Palo Alto, California. This is a CUBE Conversation. >> Hello everyone, welcome to this special CUBE Conversation. I'm John Furrier with my cohost Abby Kearns, the Executive Director of The Cloud Foundry Foundation, my cohost. With Blair Hanley Frank, Principal Analyst at ISG Insights. Blair, great to see you, former journalist at Venturebeat. >> Great to see you again. >> Great to have you on theCUBE finally. Yes, likewise. It's good to be here. >> Thanks for coming on. So, I'd love to start to find out what you're working on. You've been covering the tech sector as a journalist now, as an analyst. You've always done good work, I always admired what you've done. I'm sure you're digging into some really good stuff. What are you researching? What are some of the things you're finding around cloud? What the, what's the data tell us? >> Yeah, awesome. So we have a forthcoming cloud study where we talked to 300 enterprise IT decision makers and we asked them what they're doing today what they're looking to do in the future and how they're doing it. And we're taking all of that information and we're putting that together with the information that we have from ISG's advisor and practitioner community. And building an understanding of where the market is and where it should be. And that's what we have going on today. One of the things that we think is really important, is when we look and the data and we look what's going on in the market, what we find really important is that enterprises today are starting to move to the cloud. They have some workloads in SaaS. They have some workloads in a public cloud, IaaS or PaaS. And then they have a lot of stuff that's still on premises. And that exists in a wide variety of workloads. Whether that's on bare metal, whether that's virtualized whether that's some sort of cloud native or containerized application that's still running on prem all the way up until the cloud and what we see is that those different modes of operation are actually going to continue to exist throughout the enterprise. Even as we see more workloads shift into the public cloud. Enterprises aren't realistically going to be able to retire all of their on premises investments for the foreseeable future. >> Nor should they. >> Right And so what they-- >> Amazon confirmed that with Outposts. You saw Azure Stack, I mean that's total. I mean, first the VMware deal, the RDS on premises, and then you've got the Outpost which still hasn't, we haven't heard anything about that. That's validation, Amazon essentially saying, "I'm going to put cloud on premise." >> Yeah. >> Cloud Operations. So certainly that's validated. The question I want to ask you and Abby, get your thoughts too if you want to chime in over the top. But I've always been critical of the cloud market share game, right? Like, I've always been vocal on theCUBE. Because it's always been infrastructure service, platform service and then SAS is the application. Now Amazon has some SAS but most of their SAS is their customers. Google's got G Suite, they've got their own SAS. Microsoft's got Office 365. So when you start bundling SAS revenues into cloud market share and revenue projections. You start to see, you know, sandbagging of the numbers. I mean you can talk to sales forces today in a work day, they have clouds. So what's a cloud? What is cloud technologies? And, you know, Azure as that develops all the sudden has this massive market share. And it didn't really exist a few years ago. Where'd that come from? Is that just a shift of some sandbagging on the revenue side? Or is that actually real cloud? Or is it, so this is the game that the customer has to squint through. Now we in the industry know that okay, a little bit of Office 365. Okay, is that really cloud? >> Yeah, I mean, when you think about financials with cloud vendors. Everybody is playing a slightly different shell game. And generally speaking, you're not really going to get real numbers from anybody. Except possibly Amazon. And the reason why Amazon is able to do that is because the financial results for AWS look great. But everybody else is going to be masking. >> But they don't have a lot of SaaS though. The think about there, their SaaS number is their customer base. So I mean-- >> Yeah, but I would argue cloud is nothing but infrastructure with a SaaS on top of it. I mean, we talk about cloud as if there's some magic kind of thing happening over here. But it's basically a different kind of data center with a different kind of SaaS on top of it. And I think if I'm, if it's me reporting my numbers out. Well, I'm going to make them look as good as I possibly can. >> CUBE Cloud is coming out with great numbers. (laughing) >> I mean, look. You're going to make it look as great as you can. I mean, infrastructure is infrastructure is infrastructure. But now like, when you talk about SAS on top of that. Well, what's cloud? What's not? And it's super, it's a very fungible definition. >> Alright, I'm not disagreeing on that point. I see how that makes sense. The question for people who are making quote, "decisions" on the buyers side. They tend to think of things like "cloud supplier"? Is that really a word? Like what does that mean? So if you're going to say cloud's part of a workload is that actually even relevant. A "cloud supplier", I mean, I guess they're supplying cloud to you. But, so when you start to get into the vendors versus the buyers and the consuming of the technology. We get in that old school game of trying to put things into like market share, revenue. I mean, I see Amazon just kicking ass ten ways from Sunday. And I think Azure's certainly doing some good things there. Google, we're going to see what's going on with Google. They've got great direction. But, it's like apples, oranges and pears. Right, like are they all the same or different? And then throw Salesforce in there. This is where it muddies the water. >> And Alibaba. >> Alibaba! So, I mean, so it's hard to like figure this out. So I'd love to get your thoughts on how you guys see that in the studies. Are customers confused? Do they have some visibility into what they want to do? What's out there in the data on this point. >> So, what I will say directionally speaking, SaaS is where the market is going. So when we asked our survey respondents for where are there applications today and where did they want to go? 90% of those people we surveyed, 90% of the 300 people we surveyed around the world said in 2019 we are primarily in a hybrid mode. Where our applications are on premises and in a public cloud. 5% of them said, the majority of our applications are in SaaS. Now when you look at 2021, 37% say that they expect to be in a hybrid mode. 61% expect that they are going to be majority SaaS for their workloads, in two years. >> So they're in build up mode, they're in shifting mode. >> They're shifting, and they're not just, they're planning to shift to SaaS. They're planning to, they want to get out of the business of running applications. And put some of that burden onto providers to say, "Okay, it's your job to run the application. We'll provide the data. We'll build our business processes but we don't want our job to be running those apps." And what we see is that when you look at total cost of ownership, our respondents found SaaS to be far more predictable in terms of TCO than IaaS and PaaS. And again, for those people who are are really paying attention. If you think about it, that doesn't. Like, that's not a surprise. But on the other hand, that's like, I think that's part of where the driver comes from. Is that when you're consuming a SaaS product, it's very understandable. It's very consumable. When you think about running application in an Iaas, PaaS environment. Maybe not so much. It's going to be, you're more in charge of that application. So-- >> And SaaS has got immediate gratification. >> Exactly. >> I mean, you see the benefits. >> Easy to consume. >> Is there revenue there, is it doing its objective? Why is the IAZ fuzzy? Just because it's a classic back office kind of mindset? Or is it more of maturity? It seems mature to me, I mean, I don't I think IAZ has been more mature than ever before right now. Now we kind of-- >> I think its been around awhile, I mean I'd love to hear your answer. I think it's, there's just, I feel it's a relic of the past. Whereas, it's not something we spend much time thinking about. Like, there's that old joke. You know, "Great job keeping the servers up" said no CEO ever. Right? (laughing) >> That's a good point. But now apart from the servers you've got SageMaker, you've seen what Amazon's moving with the Stack with SageMaker. Machine learning, all of this kind of SASification kind of platform creeping up to the top of the stack. It seems to be what everyone talks about. I'm sure Google next will hear all about AI and how Iot Edge or some focus around that piece. So, again I agree. It's the commoditization is just another distraction layer on top of it. >> Yeah. >> Sure. >> We've seen that movie before. >> We're moving up the stack, we're just moving up the stack at a faster pace than we have in the last two decades. >> So bottom line, Blair. What's the survey, what's the net net telling us? What's coming out of it? >> So the net net here is really that enterprises need to have a strategy and an operating model in place for the long haul. When they think about their cloud strategy overall, this is something where they're not going to be able to snap their fingers and get to cloud-native nirvana overnight. Because that requires technical change, it requires culture change, it requires process change. There's a lot of very heavy lifting that takes place and not all of the applications that exist in an enterprise today really need that heavy lift. And so when you think about what the future holds for enterprises. They really need to build a model for how they are going to make that transition as smooth as possible. Take advantage of the new capabilities that are entering the market as quickly as possible to help advance their business. While at the same time having the opportunity to work across all of those different modes of operation and do so with high reliability, high customer satisfaction, high performance. All of the things that you need to succeed as a business in 2019. >> So I totally agree. This is a heavy lift to go kill the old and bring in the new. And one of the things that I've seen as a trend, and I'd love to get your guys' thoughts on this, as a reaction. Because I've seen the Kubernetes trend really let a lot of air out of that tension. Because it allows people to get in with containers to get in around some workloads and bring kind of baby steps into transitioning stuff. And I've seen people saying, "You know what. I like the idea of going cloud but I got this app that I really don't want to shut it down and have to rebuild it. But I could put some containers around things, run it on some Vms, use Kubernetes to orchestrate it." So I think this has been, I'm not sure if it's actually been deployed in massive production. But I've heard people say that. Is that hype or is that reality? Is it becoming a crutch, is it a short term transitional? >> I got to drag out my soap box for this 'cause I have a soap box for this. >> Okay, let's go. >> I'm not a big believer in lift and shift. I think there are times where it may be opportunistic. When you're like end of life-ing hardware or something like that. But I'm not a big believer that a cloud is a goal. Because cloud should not be your goal. If I'm a business, my goal should not be cloud. My goal should be, how do I write more applications more quickly? And maybe, how do I use infrastructure in better and more efficient ways? But cloud is not my goal. If that's my goal, then I'm going to be really sad at the end of the day. Because that hasn't made my business better. So I think, I feel like we've all over rotated-- >> You're saying it's not the outcome. The outcome is the app that benefits from doing that. >> The outcome, if you're a bank and you tell me your goal is to be on the cloud. Well, then I'm like, you've got the wrong goal. Your goal should be, how am I writing more applications and getting them out into the hands of my customer and changing my business faster? If the cloud gets me to that, great! But that may not be the answer for all of your workloads and you need to really think about that before you say "my goal is cloud". My goal is to write more applications faster. Period. And if that's on the cloud or if that's on prim or if that's on bare metal, what have you. But I need to really think about what my outcome is. And I feel like we've really focused on the cloud as the solution and that's not the solution. And if you're check boxing, you know, I'm done for the year because I moved a bunch of stuff to the cloud. Well you're, the works not done. The work is the culture part and the team part and really figuring out the applications I need to create And how do I iterate on those applications? The cloud is just, it's a bi product of that. >> It should be enabling the outcome they want. >> Right. >> That's a great soap box. Your thoughts on the overall lift and shift soap box rant by my cohost Abby here? >> Yeah, I think that the, the big opportunity is to do what's right for the business. That's ultimately what should be driving any sort of transformation. I had a conversation with a start up once. They were very focused on taking their monolithic application and going to microservices. And they were like, "we're going to go to microservices. That's what we want to do because that's the future. That's what a modern application looks like." And they started decomposing their application what I would call radically decomposing their application. Getting down to the atomic, you know, moment of how small can we make every single piece of this application. What they figured out was that it was a massive headache. And so they actually then, took it and sort of re-composed the application into not microservices but what they called mega-services. Where they-- >> And then they ended up writing a book and being famous and doing a speaking tour. But they didn't achieve the objective. >> And so, and that's exactly it. That they all of the sudden created this host of technical problems by pursuing an ideal that wasn't-- >> And this is the danger, the dogma. Danger of having the dogma of a certain trend. I remember during the big data days when we were covering the Duke movement around 2010, 2011, 2012. I would hear this all the time in side cloud era. "Man, I just set up an 18 note cluster. I'm so pumped!" Well, what are you doing with it? "Well, I just collect data." I'm like well, I get it, I get. And then what happened was, that was their end game. We see a lot of that with clouds, your point where, it's not about, it's what you're using it for. And then they had to make up the term data lake after that. So again, they just kept adding on more but they actually missed the entire boat because it was about making data addressable for apps. >> It used to make things useful. >> So this is the danger of the tech world. >> And making it useful. Yeah, I feel like we follow the shiny penny. As opposed to saying, "Actually is that actually even relevant for me?" You know, when Docker came out in 2014 and every conversation started with, that was the answer for everything. Whatever you wanted. Do you want toast for lunch? Docker? And I feel like that was the answer for everything. And I feel like, why? Like, one, why do you care about a container? And two, like why? >> Containers were pretty cool though. >> Sure, they're cool. But containers have been around since 1969. >> Summer of love. The containers, ya know? >> It was, but I feel like, ya know everyone's like "that's my answer" and you're like "Well, what's the question you're asking?" And I feel like we continue, we went from Docker to the next thing and the next thing and the next thing. And I feel like we're not pausing to say "actually what are we hoping to gain?" You're point. >> So Kubernetes, what do you think is Kubernetes a shiny penny or shiny new toy? Or does that have any relevance in your mind in your soap box? Where does Kubernetes fit into your, your view. >> I mean I think Kubernetes is an amazing technology that has done a lot for the way think about scheduling and container orchestration. But it is also become victim of the shiny penny and that everyone is like "Kubernetes!" And you know, two years ago everyone is like "Kubernetes!" It's like how many people were using it two years ago? Not that many. And so I think about it in this like, and I often ask, "Why do you care so much about a container orchestrator?" >> FTO sold almost 650 million or whatever the number. >> 515, I know the Vmware. >> Is it 515 was the number? >> 515. >> That's half a billion dollars. That's Kubernetes' ca ching. >> I lived my two years, my last two years wrong. That's what I did. (laughing) But that's a different story about all of my mistakes. >> You could have been the Kubernetes foundation. >> But I think-- >> CNCF is doing pretty well, I mean, that community is rallying. It feels like an Amazon alternative. They feel cloud, it's very cloud native. So I think Kubernetes has been a good rallying cry, for sure. >> It is but I think you're also, you know, what you see even in CNCF which has so many amazing technologies. I do not want to take away from that but you also see the shiny penny effect happening within that community. You know, when I went to CUBECON in December you know, what was the hot topic? It wasn't Kubernetes it was Istio. You heard Istio everywhere. And I've never seen this many people so excited about service mesh in my life. I'm like "Great! This is awesome!" >> We love it on theCUBE, it's great content. Service mesh is great. Who wouldn't want policy staple applications? Come on! >> Well, ultimately the like-- >> Hold on. (inhaling) >> Exactly >> Have some of that staple, I'm saying. Fantasyland. >> I'm excited about it. >> No, stakes hard. >> Well, and this is what I end up telling clients is you want to adopt the parts of the stack that are necessary for you to solve the problems that you have. Right? If you are in the position where you need a service mesh, you know because you are having problems that only a service mesh can solve. And if you aren't in that position then you get to be like the 60% of respondents in our survey who said that they are currently experimenting with a service mesh. Or, the 33% who say that they plan to use it in the future. >> 60% are experimenting with it? >> Yeah, well, probably-- >> That numbers way high. >> Well, it's probably somebody has it running on some VM somewhere. >> It seems really high. >> Well if you look at the success at CUBECON one of the things that, Envoy is a great example, and you talk about some of the challenges-- >> Envoys great. >> The challenges that enterprises have. If you look at the success of all the open source projects, the ones that have been super successful. It's the folks that had to build it for themselves. Envoy had a lift. And I think this is a challenge that I see. I haven't really figured it out in the enterprise yet, how that's going to play out. It generally seems to be that the enterprises don't necessarily want to be like them. But they want the same kind of control. "I want to roll out my own cloud." But they don't want to have an open stack problem. Meaning, they don't want to have something that's not supported. So you have this kind of new changeover vibe going. I really haven't put my finger on it but it's, it has that same vibe. >> Well, enterprises are more in control. And what we've seen in our research is that enterprises actually feel comfortable now. They no longer feel like they're in the fog of war like "I don't know what's goin on!" They're more like "Oh, we actually understand and we're on it." And they're being more thoughtful about the technologies that they use. And they are experimenting more. And they're feeling really confident. But you know, my caution is always, use the technology when it makes sense, as it makes sense. But at the end of the day as a business owner, your fundamental question is, does this serve my outcomes? Does this serve my business outcomes? And if the answer is, I don't know. Then really think about what you're investing in in terms of technology. I mean, I love all of these technologies. But I'm never going to recommend all of them if that's not actually going to be in your best interest. >> That's great stuff. Well, thanks for coming on Blair. Appreciate it. You going to be at Google next? Cloud Foundry in Philly? In April, first week of April? >> Unfortunately, I won't make it to the Cloud Foundry Summit. >> Google Next, next month? >> Sure will. >> Alright, We'll see you there. >> Abby, thanks for co hosting this segment with me. >> Any time, John. >> Sharing the data here with my cohost Abby and John here. Co hosting the first ever CUBE, What we'd call it? Cloud? >> Cloud CUBE. >> Cloud CUBE. >> Rebrand. >> TheCUBE, thanks for watching. (jazzy music)

(funky music) >> From our studios in the heart of Silicon Valley, Palo Alto, California. This is a CUBEConversation. >> Everyone, welcome to this CUBEConversation here in Palo Alto, California. I'm John Furrier, host of theCUBE. Here in theCUBE Studios here with Abby Kearns, Executive Director, Cloud Foundry Foundation, CUBE alumni. Great to see you again. I think this is your eighth time on theCUBE chatting. Always great to get the update. Thanks for spending the time. >> My pleasure, and it's a joy to drive down to your actual studios. >> (laughs) This is where all happens Wednesdays and Thursdays when we're not on the road doing CUBE events. I think we'll have over 120 events this year. We'll certainly see you at a bulk of them. Cloud Foundry, give us the update. Yeah, we took 'em joking before we came on camera. Boy this cloud thing is kind of working out. I mean, I think IBM CEO calls it chapter two. I'm like, we're still in chapter one, two, three? Give us the update Cloud Foundry, obviously open-source. Things are rocking. Give us the update. >> I do feel like we're moving into chapter two. Chapter one was a really long chapter. (laughs) It spanned about 10 years. But I do think we're starting to see actual growth and actual usage. And I think a lot of people are like, no, there's actually been usage for a while. Me, no no no not on a real scale. And we haven't seen any of the workloads for organizations running at massive scale. At the scale that we know that they can run at. But we're starting to see interesting scale. Like 40, 50 thousand applications, you know. Billions of transactions now passing through. A lot of cloud native technology. So we're starting to see real interesting volume. And so that's going to actually dictate how the next five years unfold because scale is going to dictate how the technologies unfold, how they're used. And they're going to feed into this virtuous cycle of how the technologies unfold, and how they're going to be used, which feedback into how enterprises are using them, and you know, and the cycle continues. >> Give us the update on the foundation. What's going on with the foundation, status, momentum, clouds out there. Obviously open-source continues to drive however we saw a lot of acquisitions and fundings around people who are using open-source to build a business around that. >> I love that. >> Your favorite conversation. But, I mean you know the technical challenges with open-source allow for technical challenges but also the people side is they're learning. What's the update with the foundation? >> Well open-source is really tricky, and I think there is a lot of people that are really enthusiastic as it is a because model. I mean last year 2018 was a pretty substantial year for open-source. The year ended with Red Hat's acquisition by IBM. One of their biggest acquisitions, $34 billion. But we saw in December alone, we also saw Heptio get picked up by VMware which is a services company which is really based on Kubernetes on an open-source technology. But we also saw HashiCorp get another round of funding. And then earlier in the year, Pivotal IPO'd. And so if you look at 2018 at a bigger level, you saw a lot of momentum around open-source and how it's actually being commercialized. Now you and I were talking a little bit prior and I'm a big believer that open-source has the potential and is going to change fundamentally how technology is used and consumed. But at the end of the day for the commercial aspects of it you still have to have a business around that. And I think there's always going to be that fine line. And that line is actually always be going to be moving because how you provide value in, around, and on top of open-source, has to evolve with both the market and your customer needs. >> Yeah and where you are on that wave, whatever wave that is, is it an early wave or is it more mature so the metrization certainly matters? >> Sure. >> You could be early on setting the table or if it's growing when there's some complexity. So it kind of depends, it's always that depends is it the cloud air or is it the Red Hat? There's different approaches and people kind of get confused on that and your answer to that is just pick one that works for, that's a good business model. Don't get hung up on kind of the playbook if you will, is that kind of what you're saying? >> Well I think we're seeing this play out this week with AWS's Elastic announcement, right? And there's been a lot of conversation around how do we think about open-source. Who has access to it? Who has the right to commercialize it? What does commercialization look like? And I think, I've always cautioned people that are proceeding down the path to open-source is really be thoughtful about why you're doing open-source. Like what is your, what are you hoping to achieve? There's a lot of potential that comes with open sourcing your technology. You gain ecosystem, community, momentum. There's a lot of positives that come with that but there's also a lot of work that comes with that too. Managing your community. Managing a much more varied share of stakeholders and people that are going to have thoughts and opinions around how that technology unfolds. And then of course it's because it's open-sources there's more opportunity for people to use that and build their own ideas and their own solutions on top of that. And potentially their own commercial products. And so really figuring out that fine line and what works best for your business. What works best for the technology. And then what your hopes are at the end of the day with that. >> And what are some of the momentums or points for the Foundation, with Cloud Foundry, obviously seeing Pivotal went public, you mentioned that VMWare, I talk to Michael Dell all the time, the numbers are great coming from that operation. Pat Kelson near the Amazon deal think that clear and where VMWare was. But still you have a lot more cloud, multi-cloud conversations happening than ever before. >> Well, for sure I mean at Cloud Foundry, we've actually been talking about multicloud since 2016. We saw that trend coming based on user behavior. And now you've seen everyone is multicloud, even the public clouds are multicloud. >> I think you had the first study out on that, too on multicloud. We did. We were we were firm believers in multicloud. Last year we've actually moved more broadly to multi-platform. Because at the end of the day there isn't one technology that solves all of these problems. Multicloud is you know is pervasive and at the end of the day multicloud means a lot of different things to a lot of people. But for many enterprises what it gives is optionality. You don't want to be locked into a single provider. You don't want to be locked into a single cloud or single solution because you know if I'm an enterprise, I don't know where I'm going to be in five years. Do I want to make a five year or a 10 year or a 20 year commitment to a single infrastructure provider when I don't know what my needs are going to be. So having that optionality and also being able to use the best of what clouds can provide, the best services, the best outcomes. And so for me, I want to have that optionality. So I'm going to look at technologies that give me that portability and then I'm going to use that to allow me to choose the best cloud that I need for right now for my business and maybe again a different one in the future. >> I want to get your thoughts on this. I just doubled down on this conversation because I think there's two things going on that I'm saying we'll get your reaction to. One is I've heard things like pick the right cloud for the right workload and I heard analogies. Hey, if you got an airplane you need to have two engines. You have one engine if it works for that plane, but your whole fleet of planes could be other clouds. So, pick the right cloud for the right workload. Meaning workload is defined spec. >> Yeah. >> I've also heard that the people side of the equation, where people are behaving like they are comfortable with API's tooling is potentially a lock-in, kind of by default. Not a technical lock-in, but people are comfortable with the API's and the tooling. >> Yeah. >> And the workloads need a certain cloud. Then maybe that cloud would be it. That's not saying pick that cloud for the entire company. Right, so certainly that the trend seems to be coming from a lot of people in the news saying hey, this whole sole-cloud, multi-cloud thing argument really isn't about one cloud vs. multiple clouds. It's workload cloud for the use case in the tooling, if it fits and the people are there to do it. Then you can still have other clouds and that's in the multi-cloud architecture. So is that real? What's your thoughts on that? >> Let's dissect that 'cause I think that's actually solving for two different outcomes. Like one multi-cloud for optionality's purpose and workload specific. I think it's a great one. There's a lot of services that are native to certain clouds that maybe you really would like to get greater access to. And so I think you're going to choose the best. You know that's going to drive your workload. Now also factoring in that you know you're going to have a much more mediated access to cloud based on what people are comfortable with. I do think it's at some point as an organization you want to have a better control over that. You know historically over the last decade what we've seen. Shadow IT really dictates your Cloud spend right. You know everyone's got a credit card. I got I've got access to AWS. >> And they got most of that business. Amazon did. >> Yes and that served them quite well. If I am an organization that's trying to digitally transform, I'm also trying to get a better handle on what we're spending, how we're spending it and frankly, now if I have compliance requirements, where's my data? These are going to be important questions for you when you're starting to run production workloads at scale on multiple clouds and so, I predict we're going to see a lot more tension there in internal organizations. Like, hey I'd love for you to use cloud, you know? Where this no longer needs to be a shadow thing, but let's figure out a way to do it that's strategically and intentional versus just random pockets. Choosing to do cloud because of the workflow that they like. >> Well you bring up a good point. The cost thing was never a problem, but then you have sprawl and you realize there's a cost to Optimizer component which means you might be overpaying because as you think about the system aspects, you got networking and you got Cloud management factors. So you start as you get into that Shadow IT expansion. You got to realize, wait a minute, I'm still spending a lot of cash here. >> This adds up really really quickly. I mean, I think the information piece a couple weeks ago where they talked about the Pinterest bill, this stuff, it starts adding up. And for organizations, this is like not just thousands of dollars. It's now hundreds of thousands of dollars. If not you know, tens of millions of dollars. And so, if I'm trying to figure out ways to optimize my business and my scale, I'm going to look at that because that is not an insignificant amount of money. And so if I'm in it, that's money that could be better invested in more developers, better outcomes, a better alignment with my business, then that's where I want to spend my time and money, and so, I'm going to spend more time being really thoughtful about what clouds we're using, what infrastructure we're using, and the tools we're using to allow us to have that optionality. >> So you would agree with the statement if I said, generally, multi-cloud is here, it already exists. >> Yes. >> And that multi-cloud architecture thinking is really the conversation that needs to be had. Not so much cloud selection, per say. It's not a mutually exclusive situation. Meaning, I'm not all in on Amazon. I'm going to have clouds plural? >> Well, yeah you are. Like we have already seen as of early last year over half of our users. Which right now over half the Fortune 500 are multi-cloud already, and that number has gone up since last year I'm for sure. Some workloads were on-prem and some are in a public cloud. Be it GCP, AWS, Azure, or AliCloud. And so that is a statement of fact. And I have every executive that I've talked to with every enterprise has been like, yes, we're doing multi-cloud. >> Yeah, they're going to have some kind of on-prem anyway, So we know that's there. That's not going to go away. >> No, PRIM is not going to go away. >> Then an IOT edge, and an Enterprise Edge, SDWAN comes back into vogue as people start using SAS across network connections. >> Yeah. >> I mean, SDWAN is essentially the internet basically. >> I feel like the older I get the more I'm like, wow, didn't I have this conversation like, 20 years ago? (laughs) >> I was talking about something earlier when I came in. The old becomes the new again. It's what's happening, right? Distributor computing now goes to cloud, you got the Enterprise. What are the big players doing? Google Next is coming up next month, big event. >> It is the week after Cloud Foundry Summit. >> They got Amit Zavery, big news over there they poached from Oracle. So Thomas Kurian brought in his Oracle, who is Cube alumni as well. Really smart guy. Diane is not there. What do you expect from Google Next for the week? What are we going to see there? What's the sentiment? What's the vibe? What do you see happening? >> Well, I think it's going to be all about the Enterprise right. That's why Thomas was brought in. And then I think they really give Google that Enterprise focus and say, how do we end up? As it's not just about I'm going to sell to enterprises. That's not, you know, when you're selling to an enterprise there is a whole different approach and you have to write how to the teams, the sales teams. You have to write how to the ecosystem, the services, the enablement capabilities, the support, the training, the product strategy? All of that takes a very different slant when you're thinking about an enterprise. And so I'm sure, that's going to be front-and-center for everything that they talk about. >> And certainly he's very public about, you know, the position Oracle Cloud, he knows the Enterprise Oracle was the master of enterprise gamesmanship for sure. >> Yes, for sure. You don't get a whole lot more enterprising than Oracle. >> What's going on in the CNCF any news there? What's happening on the landscape? What's the Abby take on the landscape of cloud? >> Well, speaking as someone that does not run CNCF. >> Feel free to elaborate. >> Cloud Native Computing Foundation, for those of you that aren't aren't, you know, aren't familiar is a sister open-source organization that is a clearing house or collective of cloud made of technologies. The anchor project is the very well-known Kubernetes, but it also spans a variety of technologies from everything from LINKerD to SEDA to Envoy, so it's just a variety of cloud-native technologies. And you know they're continuing to grow because obviously cloud-native is becoming you know it's coming into its own time right now. Because we're starting to really think about how to do better with workloads. Particularly workloads that I can run across a cloud. I mean and that seems pretty pedantic but we've been talking about Cloud since 2007. And we were talking about what cloud brings. What did cloud bring, it brings resiliency. You can auto-scale. You can burst into the cloud, remember bursting? Now all the things we talked about in 2007 to 2008 but weren't really reality because the applications that were written weren't necessarily written to do that. >> And that's exactly the point. >> So now we're actually seeing a lot more of these applications written we call them microservices, 12 Factor apps, serverless apps. What have you but it's applications written to run and scale across the cloud. And that is a really defining point because now these technologies are actually relevant because we're starting to see more of these created and run and now run at scale. >> Yeah, I think that's the point. I think you nailed it. The applications are driving everything And I think that's the chapter two narrative. In my opinion, chapter one was, let's get infrastructures code going. And chapter two is apps dictating policy and then you're going to see microservices start to emerge. Kind of new different vibe in terms of like what it means for scale as less of about, hey, I'm doing cloud, I got some stuff in the public cloud. Here the conversation is around apps, the workloads and that's where the business value is. It's not like people who is trying to do transformation. They're not saying hey I stood up a Kubernetes Cluster. They're saying I got to deploy my banking app or I got to do, I got to drive this workload. >> And I have to iterate now. I can't do a banking app and then update it in a year. That's not acceptable anymore. You are constantly having to update. You're constantly having to iterate, and that is not something you can do with a large application. I mean the whole reason we talk a lot about monolithic vs 12 factor or cloud in a box is because it isn't that my monolithics are inherently bad, it's just they're big and they're complex. Which means in order to make any updates it takes time. That's where the year comes in, the 18-months come in. And I think that is no longer acceptable you know. I remember the time and I'm going to date myself here, but I remember the time when you know banks would or any e-commerce site would be down. They'd have what they call the orange page. But the orange page would come up, site down tonight 'cause we're doing maintenance for the weekend, right? >> Under construction. >> Under construction. Okay, well I'll just come back on Monday. That's fine. And now, you're like, if it's down for 5 minutes you're like what is actually happening right now. Why is this not here. >> Yeah like when Facebook went down the other day. I was like, what the hell? Facebook sucks. >> You know, the internet blows up if Instagram is down. Oh my God, my life is over and I think our our expectation now is not only constant availability. So you know always available. But also our expectation is real-time access to data transparency and a visibility into what's actually happening at all times. That I've said something that a lot of organizations are really having to figure out. How to develop the applications to expose that. And that takes time and that takes change. And there's a ton of culture change. it has to happen and that is the more important thing if I'm a business I care more about how do I make that a reality and I should care a lot less about the technologies that you use. >> It's interesting you mention about the monolith versus the decomposed application of being agile. Because if you don't have the culture and the people to do it it's still a monolithic effort in the sense of the holistic thinking and the architectural, it's a systems architecture. You have to look at it like a system and that's not easy either. Once get that done the benefits are multifold in terms of like what you can do. But its it's that systems thinking setup is becoming more of an architectural concept that's super important. >> For sure if I have a microservice app, but it takes a 150 people to get that through change management and get it into production well that will still take me a year. Does it matter if there's maybe 12 lines of code in that application? It doesn't matter and so, you know I spend a lot of time. Even though I run Cloud Foundry, I spend a lot of time talking about culture change. All the writing I do is really around cultural change and what does that look like. Because at the end of the day if you're not willing to make those changes, you're not willing to structure your teams and allow for that collaboration and if you're doing iterative work, feedback loops from your customers. If you're not willing to put those pieces into place there is no technology that's going to make you better. >> I totally agree, so let me ask you a question on that point, great point, by the way. Most followed your you're writing your blog posts in the links, but I think that's the question. When do you know when it's not working? So I've seen companies that are rearranging the deckchairs, if you will, to use an analogy with all the culture rah, rah! And then nothing ever happens right? So they've gone into that paralysis mode. When do you look at a culture? When does the executive, what should they be thinking about because people kind of aspire to do this execution that you said is critical? When do you know it's not working or what should they be doing? What's the best practice? How does someone say hey you know what I really want is to be more holistic in my architecture. I don't want to spend two years on that the architecture and then find out it's now just starting. I want to get an architecture in place. I want to hit the ground running. >> I mean it's twofold, one, start small. I mean you're not going to change you know if you're an 85 year old company with 200,000 people you're not going to change that overnight and you should expect that's going to be an 8 to 10 year process now what that's also going to mean is you're going to have to have a really clear vision and you're going to have to be really committed like this is going to be a hard road but conversely when someone says what does success look like, when you're looking at a variety of companies how do you know which ones which ones you think are going to be the most successful at the end of the day because no one's ever actually done any of this before there's no one that's ever gone through this digital transformation and it should have come out on the other side no one. There isn't and so I think what does success look and I said well for me, what I look for are companies that are investing and re-skilling their workforce. That's what I'm looking for. I get real excited when companies talk about their internal boot camps or their programs to rescale or upscale their teams because it's not like you're going to lay off 20,000 people and hire 20,000 cloud native developers, they don't exist and they're certainly not going to exists for thousands of companies to go and do that so you know how are you investing in re-skilling because-- >> It's easy to grow your own internally from pre-existing positions. >> Well sure, they know your business. >> Rather than go to a job board that has no one available. >> And you know at the end of the day that needs to be your new business model what is digital transformation actually it's just a different way of working and there isn't, there is no destination to the digital trend. This isn't a journey that has an end and so you need to really think about how are you going to invest differently in your people so that they can continuously learn continuously learning needs to be part of your model and your mantra and that needs to be in everything you do from hiring to HR to MBO's to you know how do you how do you structure your teams like how do you make sure that people can constantly learn and evolve because if that's not happening it doesn't you know everything else is going to fall by the wayside >> Is the technology gap easy to fill? Lot of tech out there. Talent gap hard to fill. >> For sure. >> That's the real challenge. >> If you have all the best tech in the world but you don't have the right people or the right structure are you going to be successful, probably not. >> Yeah, that's a challenge. Alright, so final question for you where are you going to be, what's your schedule look like, where can people find you, what events going to be at? You guys have an event coming up? >> April 2nd through 4th in Philly. We're going to have a summit you want to see some people that are actually running cloud at scale that's the place to go >> April 5th? >> 2nd through 4th. First week of April Philly, fingers crossed good weather lots of cloud talk and it's a great way. >> City of Brotherly Love >> Yes, we're bringing it. >> Philadelphia. The Patriots couldn't make it to the playoffs last year but love the Philly fans down there Paul Martino and friends down there. Abby thanks for coming on. Appreciate it-good to see you. Thanks for the update. We'll see you around the events, I won't be able to make your event I'll be taking the week off skiing. >> Well one of us has to. >> First vacation of the year, two years. Thanks for coming in. >> You should do that. >> Abby Kearns here inside theCUBE for CUBEConversation I'm John Furrier, thanks for watching (funky music)

>> Male Narrator: Live from Copenhagen, Denmark. It's theCUBE, covering KubeCon and CloudNativeCon Europe 2018, brought to you by the Cloud Native Computing Foundation, and its ecosystem partners. >> Hello everyone, welcome back, this is theCUBE's exclusive coverage of KubeCon 2018. Part of the CNCF Cloud Native Computing Foundation, part of the Linux Foundation, this is theCUBE. I'm John Furrier with co-host, with Lauren Cooney, founder of Spark Labs, helping me out as analyst this week, great to have our next guest, shared acquaintance, Abby Kearns, Executive Director of Cloud Foundry Foundation, Cube alumni, welcome back! >> Thanks for having me back again. >> Got your voice, you're losing your voice from all the talking you're doing here on Cloud Foundry. >> Cloud cloud cloud all the time. >> So we were talking yesterday, I want to get you on because you guys have done some research. >> Yeah. >> On cloud, and we were chatting about, I should give you a plug on the opening segment yesterday about some of the things you're finding about Kubernetes. Certainly in our bubble, it's so passe now, we're moving on to STO and CUBE Flow, but you have research that, you know, is mainstream tech, outside of the bubble we live in, is actually now evolving into the first inning of Kubernetes, if you will. What does the research say, what's that all about? >> Well, the research says, trying not to apologize already, my voice is all over the place, so we've been tracking containers for now almost three years and I remember three years ago, everyone's like, "Okay, well we've talked about Docker for years now, "it's so passe," but when you got beyond the bubbles where tech is, people were just like starting to think about it. And so containers are just now getting to where people are either using them or using them as proof of concept. But Kubernetes has become a really big part of the conversation the last year, and it's continuing to take it by storm, and so we're starting to see organizations that are interested in it, but in terms of adoption and awareness beyond just the core central, there's still a massive education gap there. And a really big opportunity to educate people, not only on these tools, but what they really want to know is how do these tools help them get through their day and accomplish their work? >> So essentially, there's a lag of sequence of early adopters, fast followers, and now mainstream. Mainstream are getting accustomed to containers, now hitting up on Kubernetes, we're still pushing the front line. >> Well I think, you know, we are, and I think this is one of my observations as well, Abby, is that we look at these technologies, right? And I'm in the hallways, and I'm talking to folks in the cab line and things along those lines, and they're just here to actually learn about the technology, about Kubernetes, they actually don't understand it fully yet, and they're trying to figure out really what to do with it, and their companies have sent them here. And then it's, you know, you talk to the folks that are, you know, kind of were here for the long haul and were there at the beginning of CNCF and things along those lines, and they're like, "Oh yeah, everyone's adopted it," right? So you've got these two spectrums and I think my question to you is, what do you think is needed for this to really cross the chasm? >> Well, I'll actually answer that with another piece of data We do global research, and one of the things we found, we ask about, "What are your priorities for the next "couple of years?" and resoundingly across every persona, so developers, operators, IT decision makers, executives, their top three priorities for the next two years is continuous delivery. So let's think about that: continuous delivery for me is a priority; building that culture change is a priority; and so the tech is there to supplement that. But the real work, the hard work, is a priority, and I think that's exactly where it should be. So as these organizations really implement that continuous delivery methodology, they're going to pull these technologies in to supplement that. >> So it's not a technology problem, it's a people problem. But your point is, to the industry, let's be realistic and understand the segments that are adopting at what pace, matching education or evangelism or transformation at the right piece of the journey. >> Yeah, I mean all this tech, even Cloud Foundry, is a supplemental tool. >> Yeah. >> The hard work is really continuous delivery, building in that culture change, making software a core part of your business, making technology part of your day-to-day conversation, and that heavy lift has to come in order for any of these technologies to be successful. >> You guys have done a great job, I just want to say, Cloud Foundry, I want to give you some props. Congratulations on the work you've done. Take a minute to talk about some of the success. You're an ingredient in a lot of successful applications out there; what are some of the stats? How many people are using Cloud Foundry? What's some of the uptick, share some of the numbers of the performance with Cloud Foundry. >> Well, I mean we're in use of over half the Fortune 500 across every industry; what's been so phenomenal and so awesome about Cloud Foundry, and we really saw this at Summit, is all the industries that are using this to change. But what was interesting about our last summit, which we just had a couple of weeks ago, is all of these companies want to get on stage and not talk about the tech; they want to talk about the culture change. You know, hearing Boeing get on stage and say, "Actually, you know what the real work is "is the transformation we had to undergo "in order to do this work," and hear that over and over again, and it's so awesome to be part of that change because technology needs to be there to supplement that change and be part of that. But it's really great to see this come into fruition, like hearing the stories from Home Depot and Comcast and US Air Force and how it's fundamentally changing their businesses and helping them get out the door at scale, I mean that's really where the cool stuff happens. >> You've had great success there, and a lot of end users too, it's not like a bunch of one-offs. >> No. >> So how's the summit last week in Boston? >> It was amazing. We had half of our attendees at our summit are end users. And you know, the big high I get is like, hearing everyone talk about what they're doing and "This is what I did!" and stuff you've never heard of. Like, "Oh, I didn't realize you were using that," and "Oh, that's a really great way to use it "in very inventive ways," and so it really just refreshes you, like "Oh, this is what matters." The users and how they're using it and what they're going to do with the tech, I mean, isn't that why we're all here, right? And it's great, and they're creating such amazing technologies that it makes you energized about what's going on. >> Yeah, and I think it's amazing to me, cause I was actually at the Cloud Foundry summit as well, and there was one customer, I can't remember the name that got on stage, and they were using like, they had 2100 end users or something like that, developers, their company actually using Cloud Foundry, and I think that was the number, and I think it was really tremendous to see how many people inside of one company are actually using the technology across the board. It was really great. >> I mean, this is all about, I mean we're at a modern software era, and this is a whole new guard coming on board, and it's a whole new architecture. >> And it's a whole new way of thinking about it. Like, you know right now, we talk about how tech and there's a gap and we're pushing the tech and people are going to get there, but it's not going to be too long before the enterprises are pushing back and saying, "Hey, this is what I need, here's where I am, "I'm running at a scale you didn't think about yet." You know we're running, we have a lot of users that are running tens of thousands and thousands of applications: what about when they're in the hundreds of thousands of applications, and what does that look like? And they're saying, "Well I'm going to do this, "and here's what I need to do." >> There are going to be a lot of microservices. Abby, I got to ask you to end the segment. Thanks for coming on, I know you were rushed to come on, I appreciate you taking the time, you're super busy. What's your priorities for next year? Obviously you got a lot of successes under your belt. What's next, what are you going to check off the list this year? >> Well, inner operability is a big theme for me this year. And what does that mean, that means building bridges to other technologies and other projects, like the amazing work that's happening in CNCF and all those great technologies, so making sure that when those technologies mature, how do we bring those to the enterprise, and then really continuing to work on an ecosystem and work with our members and to really get more contributors around the table. >> Awesome, developers and contributors, dev plus contribute, thanks for coming on. >> My pleasure. >> Thanks Abby. >> You're contributing your insight and I know you've got the voice going, but appreciate you taking the time, so Kube conversations here at theCUBE here in Denmark for KubeCon 2018, part of CNCF. I'm John Furrier with Lauren Cooney, we'll be right back after this short break. (techno music)

>> Announcer: From Boston, Massachusetts, it's theCUBE! Covering Cloud Foundry Summit 2018. Brought to you by the Cloud Foundry Foundation. >> I'm Stu Minamin and this is theCUBE's coverage of Cloud Foundry Summit 2018. Here in beautiful Boston, Massachusetts. Happy to welcome back to the program Chip Childers, who is the CTO of the Cloud Foundry Foundation. Chip, you started off this morning saying the runners this morning got a taste of the Boston Marathon. >> They did, they did! >> It's raining, it's cold, it's miserable. >> Yesterday was beautiful. >> At least there was less wind. >> Yesterday was absolutely beautiful. So we kicked off the summit, beautiful sun, but then we had our Fun Run this morning. >> As a local, I do apologize for the weather. Normally April's a great time. We want more tech coverage here in the area. More tech shows. We're in the center of a great tech hub, here in the Boston Seaport. We've talked to a couple of Boston startups, you know, here at the show. And, you know, great ecosystem if you go there. Thank you for bringing your show here. >> Absolutely, happy to be here. >> All right, so, last time we caught up was year ago at the show. And I think it was, what, 213 working days or something? I think Molly said >> Something like that Something like that yeah. >> The good thing is in our industry, nothings changing, we can talk about the same stuff as last year. >> Leisurely pace >> No concern, let's just sit back and you know, talk about our favorite pop culture references. Chip what's hot on your plate? And what are you hearing from the users in the community? >> Sure. So this year the theme Our events team came up with a very fun pun, which is Running at Scale. It means two things. One, the Boston Marathon was on Monday, but two it really does represent the stories that we're getting from our users, the customers, and the distributions, those that use the open source directly. So not only are we seeing a broadening of adoption across new organizations, but they're getting really deep into using it. We filled a survey, user survey, just did our second run of it. In fact we didn't have this data back in Santa Clara last year. So it's been less than a year since the 2017 one. And what we found was that there was a 21 point swing in those companies that were using Cloud Foundry with more than 50 developers, alright. So 50 developers and higher When you really talk to the interesting, large scale Fortune 500 companies, they're talking thousands of developers, that are working on the platform, being productive, and that truly is kind of what this event is about for us. >> I grew up around the infrastructure stuff, and scale means a lot of things to a lot of people, but had a great discussion with Dr. Nick, just before talking about how if you were to build your kind of utopian environment You look at some of the hyper-scale companies, the Facebooks and Googles of the world, and thing is they're such a scale that if they don't have good automation, and don't have you know really the distributive architectures that we're all talking about and things like that, there's no way that they could run their businesses. >> Yeah and the reality is a lot of the businesses that aren't Google, aren't Facebook, they have to be able to think about that level of scale. To me it really boils down to three basic principles, and to me this is the best definition of what Cloud native means. Whether you're talking about a platform, whether you're talking about how you design your applications, it's simple patterns, highly automated, which can be scaled with ease, right? And through that you can do really amazing things with software, but it has to be easily scaled, it has be easily managed, and you do that through the simplicity of the patterns that you apply. >> Yeah, and being simple is difficult. >> Yes >> How much we have arguments in the industry it's like well, let's throw an abstraction layer in there, do an overlay or underlay, but you know really building kind of distributed systems, is a little bit different. >> It is a little bit different. So one of the things that the Cloud Foundry ecosystem has, is a rich history of iterating towards a better and better developer experience. At its heart, the Cloud Foundry ecosystem of distribution, and tools, and the different products we have, they're all about helping the developer be a better developer in the context of their organization. So we've been iterating on that experience and just doing incremental constant improvement and change and we're very proud of that productivity, right? And that's really what drive these organizations to say look, this is a platform that is operated very easily with small teams. I think you've spoken with a couple companies, and if you ever ask them hot many operators do you have to handle thousands of engineers, tens of thousands of applications, they say, well, maybe ten. >> The T-Mobile example is >> Great example >> Ten to fifteen operators with 17000 developers so >> Chip: Yep, yep >> It's funny cause I remember we used to talk about you know in the enterprise how many servers can a single admin handle and then if you go to the hyper-scale ones it was three orders magnitude different. But in the hyper-scale ones they didn't really have server people, they had people that brought in servers, and people threw them in the wood chipper when they were done >> Chip: Absolutely >> And they didn't manage them. It was the old cattle versus pets analogy that we talked about in the other room, It's just totally different mindsets is how we think about this. I love, For me, it was in the enterprise you know, we harden the hardware, we think about this, and in the software world it's you know, No no, I built it in the application layer, because One of my favorite lines I use is you know, Hardware will eventually fail, and software will eventually work right? >> Absolutely. I think that's the difference between, So application centric thinking leads you to Necessarily, you have to have infrastructure to run it right? My favorite thing is this whole server-less term is absolutely ridiculous if anybody understands it, but there's a little bit behind it, which is, in fact I'd argue Cloud Foundry's fundamentally server-less because when you push code into it, you don't care what operating system's underneath it, right? All you care about is the fact that you've written some code in Java or in Nojass or in Ruby, you're handing it to a platform it deals with all of the details of building a container image, scaling it, managing it, pulling independencies, you don't care what underlying operating systems there, and then that ten person platform operations team, in the Cloud Foundry world, they have the benefit of upstream projects actually producing the operating system image that they can consume, within hours of major vulnerabilities being announced. >> I love actually, at this show you've got a containers and server-less track >> We do >> And I'm an infrastructure guy by background and when we went to virtualization we went little bit up the stack, I don't think about servers I'm trying to get closer to that application. Love you to comment on is Cloud Foundry helps gives some stability and control at that infrastructure level, but it still involved with infrastructure, from in my own data center, >> Chip: Yep >> or hosted data center or I know what could I'm on. When I start going up to like server-less, I'm a little bit higher up the stack, and that's why they can live together, >> Yeah, yeah >> And its closer tied to the application than it is to the infrastructure, so maybe you can tease that out for us a little. >> Yeah, so I think one of the main things that we've heard from the user community and this is actually coming from users of a number of the different distributions. They're saying, look there are roughly, today, roughly two different modes that we care about, cloud native application workloads. And this might expand to include functions and service but predominantly there's two. There's the custom software that we write, which the past experience is great for, and then there's the ISV delivered software, which today increasingly the medium of software delivery is becoming the container image, whether it's an OCI container, whether it's a Docker image, ISV ships software as container images, and you need a great place to land that, so those two abstractions, that paths, just hand the system your code, or the container service just hand it a container image, both of them work really well together, and part of what we're trying to do as a community, a technical community, is we're evolving those integrations so that we can work really well with the Kubernetes ecosystem. There are different options for how these things might be stacked, depending on the vendor that you're talking to, I think mostly that's immaterial to the customers, I think mostly the customers care about having those two experiences be unified from their developer or app owner prospective. >> When you come to this show, there's more than just Cloud Foundry. There's a lot of other projects >> Chip: For sure >> That are coming on to the space Gives us a little viewpoint as to how the foundation looks at this. What's the charter which it fits under Linux foundation There's so many different pieces, Some kind of bleed into what the CNCF is doing, and just try to help map out >> Chip: Yeah how some of these pieces and it's this great toolbox that we've talked about in open source. I love like the zip car guy got up and he's like, I use all the peripheral stuff, and none of the core stuff >> Right >> And that's okay >> Absolutely, that's the fun of open source. So there's a couple ways to look at this. So first, the open source communities collectively. There's a lot of innovations going on in this space, obviously What the Cloud Foundry ecosystem generally does, historically has done, and will continue to do, is that we are focused on the user needs, first and foremost. And what our technical project teams do is they look at what's available in the broader open source ecosystem. They adopt and integrate what makes sense, where we have to build something ourselves, simply because there isn't an equivalent, or it's necessary for technical reasons. We'll build that software. But our architecture has changed many times. In fact, since 2015, right. It hasn't been that many years, as you said, we move slow in this industry (Stu laughs) We've changed this architecture constantly. The upstream projects releasing at minimum of twice a month. That's a pretty high velocity. And it's a big coordinated release. So we're going to continue to evolve the architecture, to bring in new components, this is where CNCF relates. We've integrated Envoy, which is a CNCF project. We're now bringing in Kubernetes, in a couple of different ways. We're working closely with Istio, which is not a CNCF project, yet. But it looks like it might head that way. Service mesh capabilities, We were an early adopter of the container networking interface. Another Linux foundation effort was the open container initiative, right. Seeded from some code from Docker, again one of the earliest platforms to adopt that, outside of Docker. So we really look at the entire spectrum of open source software as a rich market of componentry that can be brought together. And we bring it together so that all these great users that you're talking to, can go along this journey, and think of it almost as a rationalization of the innovative chaos that's occurring. So we rationalize that. Our job is to rationalize our distributions, use that rationalization, and then all of the users get to take advantage of new things that come up. But also we take what gets integrated very seriously, because it has to reach a point of maturity. T-Mobile again, running their whole business on Cloud Foundry. Comcast, running their whole business on Cloud Foundry. US Air Force, fundamentally running their air traffic control, right, how do they get fuel to the jets, on Cloud Foundry. So we take that seriously. And so it's this combination of, harvesting innovation from where we can harvest it, bring it all together, be very thoughtful about how we bring it together, and then the distributions get the advantage of saying, here's a stable core that's going to evolve and take us into the future. >> Chip I've loved the discussion with real customers, doing digital transformation. What that means for them. How they're moving their business forward. Want to give you the final word, for those that couldn't come to the show, I know a lot of the stuffs online, there's a lot of information out there, anything particular do you want to call out, or say hey this is cool, interesting, or exciting you that you'd want to point to. >> Yeah, I actually. There are a lot of things but the one thing that I'll point to is as a US citizen, I'm particularly proud of some of the work that's happening in the US Government. Through 18F, with cloud.gov as an example, but if I step back even further, Cloud Foundry is serving as a vehicle for collaboration across multiple nations right now. We're seeing Australia, we're seeing the United Kingdom, Netherlands, Canada, South Korea, all of these national governments, are trying to figure out how to change citizen engagement to follow the lead of the startups, which are the internet companies, at the same time that these large Fortune 500 companies, are also trying to digitally transform. Governments are trying to do the same thing. So we had a, we're almost done for the day here, but there was almost a full day track of governments talking about their use of the tech, talking about that same digital transformation journey. So to me that's actually really inspiring to see that happen >> Alright well Chip Childers. He was a dancing stick figure >> Chip: I was in the keynote this morning, but here with us on theCUBE. Thank you so much for joining once again, and thank you to the foundation for helping us bring this program to our audience. >> Chip: We're happy to have you here. >> I'm Stu Miniman, and this is theCUBE. Thanks for watching (bright popping music)

>> Announcer: From Boston, Massachusetts, it's theCUBE covering Cloud Foundry Summit 2018 brought to you by the Cloud Foundry Foundation. >> I'm Stu Miniman and this is theCUBE's coverage of Cloud Foundry Summit 2018 here in Boston, Massachusetts, happy to welcome back to the program Abby Kearns who's the executive director and goddess of the Cloud Foundry Foundation. Abby. >> Yes. >> Thanks so much for being here, good morning, good evening. >> Good afternoon. >> You've been running, doing so many sessions here, so, we're really glad that we get to have you on to help us wrap up our coverage. >> My pleasure, what better way to wrap up another amazing day at Cloud Foundry Summit than hanging out with you, Stu? >> Thanks, Abby, it's a pleasure. Look, really, I've said it a few times, but I mean it. One of the reasons I wanted to come here is, I get to talk to a bunch of users and they have great stories, so, it's always cool to talk to the startup doing something neat and different, but another thing, too, when you talk to the US Air Force and they talk about how they're doing drastic change, talk to T-Mobile, you talk to some of these bigger, older companies, and gosh, that's a bad word in the industry, right? But making some big changes, so, take a breath and tell us what your experience has been at the show so far. >> Well, I mean, you hit on my favorite part of the whole show, is getting to spend time with the community, but also the end users. What's so unique about Cloud Foundry Summit is half the attendees are end users. And it's so great to see them all come here and really be willing to put it all out there and get up on stage and talk about what they've done, how they got there, or hear them all fight about who's the more agile hundred-year-old company, which has been a funny conversation today. Allstate was chiming in that they were the young one in the group at 85 years old, so it's... But honestly, we get really caught up in the tech but hearing how people are using it and what they're doing and how it's changing their company is really I think the interesting story. If I'm a journalist, that's what I want to cover, because that's the interesting stuff. >> We had a media dinner and we're not supposed to share the details of them, but I love this discussion. This stuff isn't easy. We actually have the customers sharing the rewards, the challenges, the problems, well, working at a big company, change is definitely not easy. Working with some of this tech, it's not the simplest thing out there. We're working, there's lots of projects, there's lots of different interfaces there, but, still getting measurable great value out of what they're doing. To use an old term, moving the needle on what they're doing, so, it's exciting to see that. You've been in so many sessions, give us some highlights from, say, if you've got a couple of examples or things that, any customer story that you'd want to share. >> I mean, today, I heard a lot about Boeing. Boeing and the journey that they're on has been amazing to hear them talk about how they're changing their company, and even, in fact, they ask, all right, we're going to talk about this at Summit, but I don't want to talk about the tech. I don't want to talk about how we're using CICD, I don't want to talk about any of that. I want to talk about the culture change and having user after user say, I'm actually, want to get onstage and talk, but I don't want to talk about the tech, and that, I think, really shows the excitement and enthusiasm around the transformation process and what that means for them, and for me, as someone watching this outside, you're like, oh my god, this is amazing, and this is such a powerful story to really reflect the role technology has played in enabling that, but also the hard work that has to come into that. >> We often say that the technology is the easy part, it's the people and process stuff that'll be hard. The Foundation and this ecosystem and all the users that are involved, there's a lot of technical challenges, though, that are people working through, so, I wonder, do they underplay some of the technology things that they have to, I mean, learning new technologies, learning new skills, some of that is cultural, but, there is kind of that full spectrum that they have to get engaged with. >> Yeah, well, I just think that Cloud Foundry makes it easy (laughing) from the technology standpoint, because it really pulls a lot of things in together, but, collectively and particularly in open source, the opportunity exists for us to all move forward together. One of my big things I'm pushing for this year is interoperability, and continuing to let the technology evolve and taking advantage of new and innovative technologies, either alongside the platform or inside the platform, but really that's going to be a big focus and it was so great to hear from a lot of these end users, but that's important to them, too. >> Yeah, interoperability, you know, there are some that would look at this and they'd say, oh, they know Cloud Foundry because that thing that came out of VMware and there's this company, Pivotal, filed an S-1, they're going to go public, but, maybe talk a little bit about the ecosystem. There are so many solutions out there which don't yet have the Cloud Foundry branding on it but leverage the technologies in there. >> Yeah, it was really great to announce our eight certified distributions for 2018. We've had two new ones join SUSE Cloud Application Platform and, the most surprising one is Cloud.gov is now a certified distribution. Cloud.gov has done so much to bring digital transformation to the government, and so for them, and AT and F in particular, being able to offer up a platform like Cloud Foundry and the digital transformation initiatives around that, to federal agencies, is such a powerful story. They are literally changing our government, and hearing more and more stories like that have been really exciting, so to see that they now have a certified distribution, so regardless of what industry you're in, or what geo you're in, you have access to a certified distribution, the ability to run it on any cloud, for example, AliCloud is now, it's Cloud Foundry CPI is now available for AliCloud. You can run it on any cloud in the world and that is really showcasing that Cloud Foundry is not only leading the industry in terms of driving this change in these companies and with the technology but the ecosystem around it is continuing to grow and build. >> Maybe share a little bit, the tracks got kind of redone and there's some interesting tracks to kind of highlight, some of those focus areas that you had at the show this year. >> Yeah, for the first time ever, we had a government track. We had so many government use cases. You mentioned the Air Force earlier, AT and F. We have governments around the world that are running Cloud Foundry, so we added a government track. We had also a containers and serverless track. We actually added, last year we added an enterprise track, which is essentially users getting up on stage and talking about what they do. We added a whole track because we had so many submissions for that, and so it's really, again, an interesting opportunity to talk about the core technology and the platform, what's happening around that, but also more importantly how it's being used, and really being able to capture that is important for us. >> All right, the other kind of metric, if you look at the growth, is, when you talk about the ecosystem, there's, I believe it's the Foundry, which is the online marketplace. Speak a little bit to how that's been growing. >> Right, so we launched the Foundry last year in October at our summit in Basel. We launched in initially with 600 services. In short, it's an online marketplace for end users to find services, capabilities, and support, so it lists certified distributions, training partners, as well as technologies that are available that they could run on or alongside the platform and since October, we had now announced this week that we actually have over 4900 services in there now, so it's continuing to grow, but also, one thing I hadn't mentioned is it is our most highly trafficked page in our website, so it's continuing to drive the most traffic because end users care about it, but it's also really an area where we can showcase the breadth of the Cloud Foundry ecosystem. >> Yeah, I talked a little bit with Chip about this, but, there's not just one project, there's so many things getting involved. Maybe give us a little bit of the philosophy from the Foundation. What's the most important thing and how do you keep growing without sprawling? (laughing) >> Well, I think Cloud Foundry has always had really strong opinions about where we go and one of the things that we work, collectively work together on, is keeping a core shared vision, so there is a common core where the innovation continues to grow and happen, but allowing space and room for everyone to be able to differentiate from either different commercial go-to-market, or extensibility or extensions. For example, if you look at just our distributions alone, we've got one that focuses on federal government, we've got Pivotal Cloud Foundry, but we've got also an SAP cloud platform and really it's focusing on changing not only SAP customers, but also the way SAP thinks about software, and so seeing these different variations of the same core technology, is also a big driver of the inspiration, it's like, so many different perspectives around the table that really can drive and push the technology to do new and innovative things. >> All right, Abby, want to give the the final word. People that haven't been to the show, there's so much online. Any special things you'd want to call out, or final thoughts? >> Well, one, if you haven't been to the show, you should definitely come. We have another one coming up in October 11th and 12th in Basel, Switzerland, so if you've never been to Basel, it's a great way to come experience Summit for the first time. All the videos from all the sessions and key notes will be made available on YouTube usually within about a week, so anything that you missed if you were here, you can catch up there, and we're going to just keep talking about what we're doing and continuing to promote it and we'd love for more people to join us on the process. >> All right, well, Abby Kearns, always a pleasure to catch up with you. Thanks to the Foundation again for helping us bring this coverage, all of our content, of course, is always out there. It will be on theCUBE.net. Talking to many of the people in the Cloud Foundry ecosystem at many shows throughout the year, so, thanks, Abby, and the whole Foundation. A great lineup of customers, partners, and thought leaders in this space. Thanks to Brian and Alex for helping us do this coverage and be sure to check out all of our coverage on theCUBE.net. I'm Stu Miniman, thanks for watching theCUBE.

>> Narrator: Live, from Santa Clara in the heart of Silicon Valley, it's theCUBE. Covering Cloud Foundry Summit 2017. Brought to you by the Cloud Foundry Foundation and Pivotal. >> Hi this is Stu Miniman, joined with my cohost, John Troyer. Happy to welcome to the program a first-time guest, Chip Childers, who's the CTO of the Cloud Foundry Foundation. Chip, fresh off the keynote stage, >> Yep. >> how's everything going? >> It's going great. We're really happy with the turnout of the conference. We are really happy with the number of large enterprises that are here to share their story. The really active vendor ecosystem around the project. It's great. It's a wonderful event so far. >> Yeah, I was looking back, I think the last time I came to the Cloud Foundry Show, it was before the Foundation existed, We were in the Hilton in San Francisco, it was obviously a way smaller group. Tell us kind of the goals of the Foundation, doing the event, bringing the community in. >> Yeah, you can think about our goals as being of course, we're the stewards of the intellectual property, the actual software that the vendors distribute. We see our role in the ecosystem as being really two key things. One: we're focused on supporting the users, the customers, and the direct uses of the Open Source software. That's first and foremost. Second though, we want to make sure there is a really robust market ecosystem that is wrapped around this project, right. Both in terms of the distribution, the regional providers that offer Cloud Foundry based services, but also large system integrators that are helping those customers go through digital transformation. Re-platform applications, you know really figure out their way through this process. So, it's all about supporting the users and then supporting the market around it. >> Yeah, as we go to a lot of these events, you know, there are certain themes that emerge. There were two big ones that both of them showed up in what you did in the Keynote. Number one is Multicloud, number two is you got all of these various open sourced pieces, >> Chip: Yep. you know, what fits together, what interlocks together, you know which ones sit side by side. Why don't we start with kind of the open source piece first? Because you're heavily involved in a lot of those. Cloud Foundry, you know, what are the new pieces that are bolting on, or sitting on top, or digging into it, and what's going on there? >> You know, I think first I want to start with a basic philosophy of our upstream community. There are billions of dollars that rely on this platform today. And that continues to grow. Right, because we're showing up in Fortune 500, Global 2000, as well as lots of small start-ups, that are using Cloud Foundry to get code shipped faster. So our community that builds the UpStream software, spends a lot of time being very thoughtful about their technical decisions. So what we release and that what gets productized by the down streams is a complete system. From operating system all the way up to including the various programming languages and frameworks and everything in between. And because we release a complete platform, at a really high velocity, so many people rely on it's quality, we're very thoughtful about when is the right time to build our own, when should we adopt and embrace and continue to support another OpenSource project, so we spend a lot of time really thinking about that. And the areas today that I highlight around specific collaborations include the Open Service Broker API which we actually spun out of being just a Club Foundry implementation. And we embrace other communities, and found a way to share the governance of that. So we move forward as a big industry together. >> Stu: Yeah and speaking on that a little bit more. Very interesting to see. I saw Red Hat for instance speaking with Open Shift, Kubernetes is there. So, how should customers think about this? Are the path wars over? Now you can choose all the pieces that you want? Or, it's probably oversimplifying it. >> I think it's over simplifying it, it depends. You can go try to build your own platform if you want, through a number of serious components, or you can just use something like Cloud Foundry, that has solve for that. But the important thing is that we have specifically designed Cloud Foundry to allow for the backing services to come from anywhere. And so, it's both a differentiator for the various distributions of Cloud Foundry, but also an opportunity for Cloud providers, and even more importantly, it's an opportunity for the enterprise users that live in complex worlds, right? They're going to have multiple platforms, they're going be multiple levels of abstraction from Bms to containers, you know, to the path abstraction even event driven frameworks. We want that all to work really well together. Regardless of the choices you make, because that's what's most valuable to the customers. >> Okay, the other piece, networking you talked about. Why don't you share. >> Yeah, yeah so, besides the Service Broker API, we've added support for what's called Container to Container Networking. I don't necessarily need to dig into the details there, but let's just say that when you're building microservices that the application that the user is experiencing is actually a combination of a lot of different applications. That all talk to each other and rely on each other. So we want to make sure there's a policy-based framework for describing how the webs here is going to talk to the authentication service or is going to talk to the booking service, or the inventory service. They all need to have rules about how they communicate with each other. And we want to do that in the most efficient way possible. So we've adopted the Containing Networking interface as the standard plugin that is now at CNCF, the Cloud Native Computing Foundation. We think it's the right abstraction, we think it's great. It gives us access to all the fascinating work that is going on around software networking, overlay networking, industry standard API plugin to our policy-driven framework. >> Along the same theme, Kubo, a big new news project also kind of integration of some Cloud Foundry concepts with a broader ecosystem, in this case another CNCF project, Kubernetes. Could you speak a little bit to that? >> The Kubernetes community is doing a great job creating great container driven experience. You know that abstraction is all about the container. It's not about, you know, the code. So it's different than Cloud Foundry. There are workloads that make sense to run in one or the other. And we want to make sure that they run really well. Right, so the problem that we're solving with the Kuber project is what deploys Kubernetes? What supports Kubernetes if there is an infrastructure adage and a node goes offline? Right, because it does a great job of restarting containers, but if you have ten nodes in a cluster, and then now you're down to nine, that's a problem. So what Bosh does, is it takes care of solving the node outage level problem. You can also do rolling upgrades that are seamless, no downtime for the Kubernetes cluster. It brings a level of operational maturity to the Kubernetes users that they may not have had otherwise. >> Chip, can you bring us inside a little bit the creation of Kubo, is that something that the market and customers drove towards you? I talked to a couple other Cloud Foundry ecosystem members that were doing some other ways of integrating in Kubernetes. So what lead to this way of deploying it with Bosh? >> Yeah, absolutely so, it came out of a direct collaboration between Pivotal and Google. And it was driven based on Pivotal customer demand. It also, if you speak with people from Google that are involved in the project, they also see it as a need, for the Kubernetes ecosystem. So it's driven based on real-world large financial services companies that wanted to have the multiple abstractions available, they wanted to do it with a common operational platform that is proven mature that they've already adopted. And then as that collaboration board, the fruit of the project, and it was announced by Pivotal and Google several months back, they realized that they needed to move it to the vendor neutral locations so that we can continue to expand the community that can work on it, that can build up the story. >> The other topic I raised at the beginning of the interview, was the Multicloud. So in a panel, Microsoft, Google, MTC for Amazon was there. All of the Cloud guys are going to tell you we have the best platform and can do the best things for you. >> Of course they do. >> How do you balance the "We want to live in a multicultural Cloud world" and be able to go there versus "Oh I'm going to take standard plus and get in a little bit deeper to make sure that we're stickier with the customers there." What role does Cloud Foundry play? What have you seen in the marketplace for that? >> Well the public lab providers are, if you look at the services that they offer, you can roughly categorize them with two things. One, are the infrastructure building blocks. Two, are the higher level services, like their database capabilities, their analytics capabilities, log aggregation, you know, and they all have a portfolio that varies, some have specific things that are very similar. So when we talk about MultiCloud we talk about Cloud Foundry as a way to make use of those common capabilities, now they're going to differentiate based on speeds and feeds, availability, whatever they choose to, but you can then as a user have choice. And then secondarily, that Open Service Broker initiative is what's really about saying "great, there's also all these really valuable additional capabilities, that, as a user, I may choose to integrate with a Google machine learning-service, or I may choose to integrate with a wonderful Microsoft capability, or an Amazon capability." And we just want to make that easy for a developer to make that choice. >> Chip, Cloud Founder was very early in terms of a concept of a platform of services, let's not call it platform as a service right now. But you know, this platform that going to make developers lives easier, multi-target, MultiCloud we call it now, on from your laptop to anywhere. And it's been a really interesting discussion over the last couple years as this parallel container thread can come up with Kubernetes and Mesosphere and all the orchestration tools, and the focus has been on orchestration tools. And I've always thought Cloud Foundry was kind of way ahead of the game in saying "wait a minute, there's a set of services that you're going to have for full life-cycles, day two operation, at scale that you all are going to have to pull together from components." As we're doing this interview here, and this year at Cloud Foundry Summit are there anything that you think people don't kind of realize that over and over again people who are using Cloud Foundry go, "Wow I'm really glad "I had logging or identity management," or what are some of the frameworks that people sometimes don't realize is in there that actually is a huge time-savor. >> Yeah, there are a lot of operational capabilities in the Cloud Foundry platform. When you include both our Bosh layer, as well as the elastic runtime which is in the developer centers experience-- >> John: Anything that people don't often realize is in there? >> Well, I think that the right way to think of it is, it's all the things you need in one application, right? So we've been doing this for years as developers. In the applications operators team, we've been doing it. We've just been doing it via bunch of tickets, we've been doing it via bunch of scripts. What Cloud Foundry does is it takes all of those capabilities you need to really trust a platform to operate something on your behalf, and give you the right view into it, right? The appropriate telemetry, log aggregation, and know that there's going to be help monitoring there. It makes it really easy. Right, so we were talking earlier about the haiku, that Onsi Fakhouri from Pivotal had authored, it's appropriate. It's a promise that a platform makes. And platforms designed to let a user trust that the declarative nature of asking a platform to do X, Y, or Z, will be delivered. >> Chip, we've been hearing Pivotal talks a lot about Spring, when Cloud Foundry's involved. Is it so much so that the Foundation needs to be behind that, or support that? How does that interact and work? >> Well, we're super supportive of all the languages in the framework communities that are out there. You know, even if you pick a particular vendor, Pivotal in this case has a very strong investment in the Spring, Spring Cloud, Spring Boot, they're doing really amazing things. But that's also, it's our software, you know, they steward that community, so all the other vendors actually get the advantage of that. Let's take Dot Net and Microsoft. Microsoft open sourced Dot Net. So now you can run Dot Net applications on Linux. They're embrace of the container details and the APIs and their operating system is making it so that now it can also run on Windows. So the whole Microsoft technology stack, languages and frameworks, they matter quite a bit to the enterprise as well. So we see ourselves as supportive of all of these communities, right? Even ones like the Ruby community. When there's an enterprise developer that chooses to use something like Ruby, with the Ruby on Rails framework, if they use Cloud Foundry, they're getting the latest and greatest version of that language, framework, they know that it's secure, they know that it's going to be patched for them. So it's actually a great experience for that developer, that's working with the language. So, we like to support all of them, we're big fans of any that work really well with the platform and maybe integrate deeper. But it's a polyglot platform. >> We want to give you the final word. People take away from Cloud Foundry Summit 2017, what would you want them to take away? >> Yeah the simple takeaway that I can give you is that this is an absolutely enterprise grade open source ecosystem. And you don't hear that often, right? Because normally we talk about products, being enterprise great. >> Did somebody say in the keynote enterprise great mean that there's a huge salesforce that's going to try sell you stuff? (Chip laughs) Well that's coming from the buying side of the market for years. And you know, it was a bit of a joke. What is "enterprise great?" Well, it means that there's a piece of paper that says, this product will cost x dollars and the salesperson is offering it to you. So of course it's going to be enterprise great. But really, we see it as four key things, right? It's about security, it's about being well-integrated, it's about being able to scale to the needs of even the largest enterprises, and it's also about that great developer experience. So, Cloud Foundry is an ecosystem and all of our downstream distributions get the advantage of this really robust and mature technical community that is producing this software. >> Chip, really appreciate you sharing all the updates with us, and appreciate the foundation's support to bring theCUBE here. We'll be back with lots more coverage here from The Cloud Foundry Summit 2017, you're watching theCUBE. (techno music)

>> Live from San Francisco. It's theCUBE. Covering DevNet Create 2017. Brought to you by Cisco. >> Welcome back everyone. We're here live in San Francisco for theCUBE's exclusive two days of coverage for Cisco Systems' inaugural event called DevNet Create extension. DevNet their classic developer program, for the Cisco install base of network routers. Now going to the cloud, native, going to the developer where dev-ops and the enterprise are connecting. I'm John Furrier, my cohost Peter Burris. Next is Dan Kohn, who is the Executive Director of the Cloud Native Compute Foundation, CNCF. Formerly known as Kubecon. Which is the event, Kubecon.io. Dan, great to see you. Executive Director, how's business, is going good? >> Fantastic! (John laughs) Yeah, six months ago we chatted at our last event in Seattle. And it's just amazing to see the progress since then. Projects members. >> It's been a whirlwind. Even I can't keep track. You guys are announcing all these new projects. What's the current count of projects that you guys have under the Cloud Native Compute Foundation? >> So we're up to 10. I should definitely start with the fact that Kubernetes is the anchor 10 in our original project. In a lot of ways, foundation was setup around that. And that project is just continuing to do incredibly well. Where it's one of the highest velocity projects in the history of open source. In terms of number of authors, number of commits, poll requests, issues. But now we have a constellation of other projects that are in support of that one. It can be used in a lot of different ways. >> John: Yeah. >> That we've been adding in. >> We had Craig McLuckie on earlier. Now he's with Heptio. Again, when he was doing that work, at Google, back in the days with what's his name from Microsoft now. >> Peter: Brendan Burns. >> Brendan Burns, yeah. >> Now it's an interesting question, where you say, oh, wait a minute, the three sort of key people behind Kubernetes, Craig McLuckie, Joe Beda, who's his co-founder at Heptio, then Brendan Burns, they all left Google. Is this a bad sign for the project and the technology? >> John: No, I don't think so. >> And we would say it's a spectacularly good sign. Now, if they had left and said, ah you know, containers, I'm going to do virtual machines. But in fact they said, there's such an enormous market for this. And to have Microsoft and Azure step in and say, we really want to invest in this space and we want to bring on one of the co-founders, Brendan. And for the other two co-founders, say, hey Google is making a huge investment. But we also think there's an opportunity for independent venture funded startup. >> Craig is completely passionate about this because there is an interoperability ethos that's always been around the open web. >> Dan: Umhmm. >> And certainly open source has the same ethos. Cloud Native brings an interesting thing, and it's clear now to people that there's not going to be one cloud winning them all. >> It's a multi-could world. >> Dan: Right. >> How is the Cloud Native Foundation floating in the open source world? Is it gravitating towards more infrastructure, more edge, software edge? Are you guys kind of in the middle? Are you guys the glue layer? How do you view that? >> Sure. So one way of looking at what we're doing is, helping to build a stack of software. That allows you to run your applications either on bare metal in your own data center or on any of the public clouds. Or hybrid solution where you're mixing back and forth. But the key idea is that all the core parts of that are open source. They're supported by multiple different vendors. And what that means is, you get to avoid lock-it. So today, Amazon web services has some of the most extraordinary engineering. They have all these great services that make it very easy to go onboard. But if you build your whole architecture around that, then you're stuck with AWS forever. And when time goes up, time to renegotiate your contract in a year or two, you're back again and don't have a lot of leverage. Where we think AWS is fantastic platform to run Kubernetes, to run our other projects on top of. But we don't think you want to lock-in to those services to such a degree. >> Okay, when I'm on, first of all, pretend I'm Amazon, I'm a competitive strategist, lock-in, I got to get you locked-in. I'm just going to run Kubernetes on Amazon. Why don't I just do that? >> We think that's a great solution. >> John: You do? >> Heptio and lots other folks make it very easy to run Kubernetes on Amazon. But we also think you should at least look at Kubernetes on Bluemix, on Google, on Azure. And know that in the future when you're negotiation comes up, even if you never leave, you at least threaten to leave. That you're not locked into that one vendor forever. >> So if you think about how the cloud industry structure is starting to layout, you knew we were going to have IAAS. >> Dan: Umhmm. >> SAS has been around for quite sometime. >> Dan: Right. >> The big question is what happens with that platform as a service. >> The developer world. >> Dan: Yeah. Some people think it's going to end up in the IAS element. >> Dan: Umhmm. Some people end up in the SAS. If it ends up in the IAS, you got the lock-in. Do you see a world going forward where developers have their own place, where they go and build and create software independent of either target but then add it to the various platforms. Is that a direction that you think this is all going to end up in? >> I do. Our view is that Heroku, which really invented this platform as a service concept or popularized it. You do, get push Heroku and magically your application's up. And then Cloud Foundry which came along and created a open source version of that. Those were two building blocks. But the Cloud Native essentially taking that scenario and saying, hey, that continuous integration, continuous deployment pipeline, that ability to deploy your software dozens of times per day, that's an absolute table ante for being a modern company. Not just a software company but arguably every company today needs to be doing software development like that. And then Cloud Native is a whole set of infrastructure around that to allow you to, not just have that environment in development but also to push it into production. >> So compare and contrast, based on your vision >> Dan: Umhmm. >> of how things are going to play out. A developer spends her time today doing this, and in three years, she's going to spend her time doing that. Kind of give us a sense of how >> Dan: Sure. >> you think it's going to play out. >> The simplest way to say it is that, Docker came along a few years ago, and was incredibly transformative technology for software development. It solved this really basic problem that, you hire a new employee and does it take her an entire day or entire week to get her environment together. Or can she just copy over the document container and be ready to go. And so I would argue it had the fastest uptake of any developer technology in history. But now when you have all those pieces running, okay, that's great in development, how do you get it in production? And my goal is that in a few years, hopefully much sooner, that those developers that are getting the container, they're getting the different pieces of microservices working. And then it's this tiny little YAML file that just says, here's the requirements for my application, here's what kind of redundancy it needs, what is backend databases, other sorts of things. And they're deploying it up. For most developers they can get out of that business of dev-ops. Of having to worry about all those issues. Your dev-ops team can be so much more efficient cuz Kubernetes and the related platform really enables that. >> I got to ask you, I just Tweeted cuz I had, make sure I captured it. I'm blown away by your success on the sponsorship participation. And usually it's a sign of opportunity. Because there's money making to be made, having the big vendors in there. But the growth of Kubernetes as you mentioned, all the success, we're well aware of that. But you got a lot going on. You're like got the tiger by the tail, your hair's blown back, you're running as hard as you can. Why are you guys successful? What is your gut? As executive director, you got to have the 20 mile stare but you also implement the here and now. >> Dan: Sure. >> How are you rationalizing the success? >> The most important point is, there's not some sort of magic formula, that CNCF has done or the Linux Foundation. And we're just so much better promoting or marketing it. At the end of the day, it really comes down to the developers behind Kubernetes. They've built a tool that tons and tons of people want to use. And that leverages 15 years of work that Google has done on containerization. Work that IBM and Docker and all of our other member companies, RedHat, have put together. And now, I think tiger by the tail is the right analogy. That we just happen to be, luckily, do have the technology and the constellation technology that a lot of folks want to do. The biggest thing we're trying to deal with is, some of the challenges around scaling. There's over 17 hundred authors. Individual developers contributed to Kubernetes in the last 12 months. Trying to figure out how can we get good reviews of all their codes, better documentation. >> There is a secret formula if you look at it. In away, relevance is one of them. >> Dan: Umhmm. >> Being relevant and being an awesome technology. But what I want get your thoughts in is, I looked at Kubernetes right out of the gate and said, hmm, will this be a MapReduced moment for Google. >> Dan: Yeah. >> And interesting enough, they didn't pull the same move. They didn't just let Cloud Air, walk away with or someone. >> Dan: Right, exactly. >> They made sure that if they preserved it. Google kind of let MapReduced >> Dan: Yeah, I think-- >> on the side of the road. >> Dan: No, no, I think this-- >> Cloud Air ran with it. >> Google had something that they replaced it with. I mean the -- >> SPAN is pretty damn good. >> And that's an interesting thing because in a world of strategy, across technology, and this is related to this, is that it used to be, you define a process, and then let's call it the end level process, and then you would go off and you make it obsolete because you had something that was more efficient, more effective. And then you license the old technology. And that way, the industry built capacity around the old technology and you had the new, more efficient technology that drove your business forward. And I think that, I'm not saying that's exactly, I'm not saying that Google did that, that's the tremendous >> Google knew. >> effect it will have. >> John: I have sources that tell me that. I investigated this story three years ago or maybe four, maybe three years ago. Google had conversations going up to the Eric Schmidt level, and Larry Page level, do we keep Kubernetes, do we open source it? And it went all the way to the top. And they almost wanted, they were afraid of MapReduced. Because MapReduced was a lost opportunity. Now they made it up but-- >> Now I would argue that there's a slightly subtler decision they had to make, where they have this internal system board, that is just tons of engineering and analysis and improvement has gone into it. They wrote Kubernetes as essentially next generation version of that. I think they kind of had four paths. Craig McLuckie was one of the key people behind that. Where they could have made it a proprietary service that if you're a customer of Google cloud, you get access to it. That's essentially what Amazon and Elastic Container Services today. Or they could have said, hey, we're going to open source it but we're still keep control of it. Essentially that's the path they went with the Go language. Where lots of people use it, lots of people contribute to it, but it's Google who decides at the end of the day, which direction it goes. Or they could have gone and created a Kubernetes Foundation. And if they'd gone to the Linux Foundation and said, we want to create a Kubernetes Foundation, they absolutely could have and that would have been a home for it. But when you look at all the complementary technologies that have come in, they would never have gone into a Kubernetes Foundation. So instead, they really chose the most open path of saying, no we want to have a Cloud Native Computing Foundation. Have Kubernetes be the anchor tenant for it. But then have a place that companies like Mesophere with Mesos and Docker with Docker Swarm and other partners can come in and agree on something. So today, we're really pleased to announce the container network interface, just got accepted as our 10th project. And that's used by those and also by Cloud Foundry. And then they can disagree on others, about the orchestration- >> So it's a liberating move, really, if you think about it. Because at the time this happened, there was a lot of land grab talk going on. >> Dan: Umhmm. >> Until Amazon was winning big the hockey stick was going up. >> Dan: Right. You saw the numbers, and financial performance. But there was a fear of lock-in. To your point. >> Dan: Right, exactly. >> Then Kubernetes provides a nice layer. And you guys as a group, are looking holistically and saying, choice and multi-cloud. Is that the vision? >> Definitely. But, I mean you can see, strategically why Google decided to do it. Because if you pick an open source platform, and say, hey, this is the best of breed approach. Now, you're actually willing to evaluate the cloud on what the prices are, the supplementary services, et cetera. Where before that, you might have just said, ah, AWS is the safe service, I'm going just go with that. >> But Kubernetes is an invasive technology. And I don't mean that in a bad way. (Dan laughs) >> When you decide to move with Kubernetes, you are foreclosing other options at your disposal. And so, I think what you're saying is that, Google wanted to ensure that it remained a consistent coherent thing. While at the same time, making it obvious to all those around them that also wanted to invest in it, that their investments were going to be safe and sound going forward. >> I think that's fair but on the other hand, I do want to say that very few companies have moved their entire business and all of their IT over to Kubernetes. >> Peter: Oh, I'm not saying that they would. >> We do recommend that they start with a stable service. >> Peter: But Meso and some of those other companies are now investing in Kubernetes as a platform. Or making a bet on Kubernetes, want to make sure that their bets are as good as their company is. >> Sure. But there are other orchestration plateforms still. So Kubernetes has plenty of competition. And our biggest competition of course is Enertia. Of folks not changing into anything. >> I got to ask you a question. So Leonard, our producer is just telling me, Kubernetes is boring per Craig McLuckie. So Craig said earlier in theCUBE today, Kubernetes needs to be boring. He said his biggest problem with Kubernetes is it's too exciting right now. >> Dan: That's great. Now what he means by that is, he's kind of making a play on words but his point is, it should be obstracted away. >> Dan: Yeah. In terms of Kubernetes. But that's a problem you have. It's too exciting. >> Dan: Umhmm. What's your reaction to his comment that Kubernetes needs to be boring. >> He and I did a little Google trends comparison of Kubernetes and TensorFlow, which is another open source project out of Google. TensorFlow is something like three or four acts. And artificial intelligence is just so much more interesting and exciting. And yeah, I certainly would love to see a situation. We have this metaphor for Linux, with the Linux Foundation. That we describe it as plumbing. Where it's so intrinsic to almost every piece of technology in existence. And like plumbing, you'll get very upset when if it stops working. And you'll know it and you'll complain. But there's a huge piece of what we're trying to do which is the infrastructure to make things work. >> Here's an idea. Marketing idea. Just call it AI for containers. >> Dan: That's good. >> It'll be the hottest thing on the planet. >> Dan, great to-- >> Peter: Probably be more be more exciting. >> Dan, great to see you. Congratulations on your success. >> Yeah. So I do want to just make a quick mention December sixth through eighth is CloudNativeCon and KubeCon. It's our biggest annual conference. We're looking to actually triple in size from Seattle to three thousand people or more. We have every expert coming in. Michelle Noorali and Kelsey Hightower are the co-chairs and are going to be speaking there. We would love to see a lot of you guys. >> John: In Austin. >> In Austin. >> We hope you'll be there. >> TheCUBE will be there. >> We'll definitely be there. >> Dan: As well to ah, >> We've been to the inaugural >> Dan: Exactly. >> show for KubeCon and Cloud Native conference. We'll defintely be there. December sixth through the eighth, in December, in Austin. Great time of the year to be in Texas. Congratulations on all your success. And as Kubernetes and nine other projects continue to get traction. Still exciting times. And as they say, we live in interesting times. (Dan laughs) This is theCUBE with more interesting, exciting, not boring stuff coming back from the inaugural event here at Cisco DevNet Create. I'm John Ferrier, Peter Burris. Stay with us.

(upbeat music) >> Announcer: Live from Las Vega, it's theCUBE. Covering InterConnect 2017. Brought to you by IBM. >> Welcome back everyone. We are live in Las Vegas where IBM InterConnect 2017. It's theCUBE's coverage of IBM's Cloud Show, Cloud and Data Show. I'm John Furrier, and my Co-Host Dave Vellante. Our next guest is Abby Kearns, Executive Director of Cloud Foundry Foundation. Welcome to theCUBE. >> Welcome, thank you. >> Thanks for joining us. So, Cloud Foundry, you're new as the executive role. Sam had moved on to Microsoft. >> Abby: Google. >> Google, I'm sorry, Google. He was formerly at Microsoft. Former Microsoft employee. But at Google, Google Cloud Next was a recent show. So you're new. >> I'm new. >> John: To the reins, but you're not new in the community. >> I've been a part of the community for several years. Prior to joining the Foundation a year ago, I was at Pivotal for a couple of years. So I've been part of the Cloud Foundry community for several years and it's a technology that's near and dear to my heart. And it's a community that I am very passionate about. >> And the emergence of Cloud Foundry, I think about it, it's really kind of changed the game. It's really lifted all the boats, if you will, rising tide floats all boats. IBM uses it, you've got a lot of customers. Just go down the list of the notable folks working with Cloud Foundry. >> Well, I look no further than those that are on our Board and those that represent the strategic vision around the Cloud Foundry, so IBM, Pivotal, but DellEMC and Cisco and SAP and VMware and Allianz and Swisscom and, you know, of course Pivotal. And I think all of them really bring such a broad perspective to the table. But, then broadening beyond that community, our community has grown so much since. So, a lot of people don't realize that Cloud Foundry has only been an open source project for just a little over two years. So, January 2015 marked when it become an official open source project. Prior to that it was part of Pivotal. And in that a little over two years, we've grown to nearly 70 members in our community. And our disk x high continued to grow, and bring more perspectives to the table. >> So, what has been the differences. A lot of people have taken a different approach, on. For Bluemix, for instance, they have good core at Cloud Foundry. Is it going the way you guys had thought, as a community that this was the plan all along? Because you see people really kind of making some good stuff out of the Cloud Foundry. Was that part of the plan? This open direction? >> Well, I think part of the plan was really coalescing around a single vision of that abstraction. And what's the whole vision of Cloud Foundry? It's to make, allow developers to create code faster. In whatever realm that takes. And our industry is evolving and it's evolving so quickly, and exciting, all of these organizations. These enterprise organizations that are becoming software companies. And how, I mean, how exciting is that? As we think about the abstraction that Cloud Foundry can provide for them, and the automation it can provide and allows them to focus on one thing, and one thing only, creating code that changes their business. So, we're really focused myopically on ensuring the developers have the ability to quickly and easily create code and innovate quickly as an organization. >> So, on the development side. I mean sometimes standards can go, fall down by forcing syntax or, you know, forcing certain things. You guys had a different approach. Looking back now, what were the key things that were critical for Cloud Foundry to maintain its momentum? >> I think a couple of things. You know, obviously, it's a complex distributed system, but it's put together amazingly well. Quality was first and foremost, part of its origins. And it's continued to adhere to that quality and that control around the development process, and around the release process. So, Cloud Foundry as an open source project is very much a governance by contribution. So we look for those in the organizations and different communities to be part of it, and contribute and so we have the full time committers. That are basically doing this all day, every day. And we have the contributors that are also part of the community providing feedback and value. >> And there was a big testimonial of American Air Lines on stage. That's a big win. >> Abby: Yes, it is a big win. >> John: Give some color on that deal. >> I can't give you any details on the deal that IBM has. >> But that's a Cloud Foundry, IBM. >> But it is Cloud Foundry, yes. >> You guys were part of the Bluemix thing. >> Yes. >> Okay. >> And American Airlines is a company that I have a lot of history with. They were a customer of mine for many years in the early 2000s, so I'm thrilled to see them innovating, and taking advantage of a platform. >> So, help us unpack this conversation that's going on around PaaS, right. Some people say, oh PaaS is passe. But, it's development tools and it's programming. And it's a platform that you've created. So, what do you make of that conversation? What is it, what implications does it have to your strategy and your ecosystem strategy? >> Well, I for one don't like the term Paas anyways. So, I'm happy to say, PaaS is passe. Because I do think it's evolved. So, when I talk about Cloud Foundry, I talk about it as a cloud application platform. Because at the end of the day, our goal is to help organizations create code faster. You know, the high degrees of automation, the abstraction that the platform brings to the table, isn't just a platform, it is an enabler for that development. So we think about what that means. It's can I create applications faster? Do I have proliferation of services, to your ecosystem point, that enable those applications to be, to grow and to scale, and to change the way that organization works? Because it's a technology enabled business transformation for many of these organizations. >> John: It's app driven too, that's the key to success. >> It's app driven, which is why we talk so much about developers, is because that's the key. If I'm going to become a software company, what does that mean? I am writing code, and that code is changing the way I think about my business, and my consumers. >> And the app landscape has certainly changed with UX creativity, but now you've got IoT, there's a real functional integration going on with the analog world going digital. It's like whoa, I've gotten all this stuff that's now instrumented connected to the internet. IoT, Internet of Things. That's going to be interesting. Cloud has to power that. >> I think it does, because what is IoT reliant on? Applications that take advantage of that data. I mean that's what you're looking to gain. You're looking to have small applications streaming large amounts of data from sensors, be it from cars or be it from a manufacturing plant, if you're thinking industrial IoT. So Cloud Foundry provides the platform for many of these applications to be developed, created, and scaled. At the level that companies like GE and Siemens and others are looking to build out and tackle that IoT space. >> It's open. I mean we can all agree that Cloud Foundry's the most open platform to develop applications on. But, you're. Developers have choices. >> Yeah. >> You're seeing, you know, infrastructure as a service, plus, and you're seeing, SaaS kind of minus emerge. How should we be thinking about the evolution. You said earlier it evolved. Where is it evolving to? Obviously you've bet on open. Good bet, all right. Other, more proprietary. I don't even know what open is anymore, sometimes. (laughter) But, we can agree that Cloud Foundry is open. >> We're open. >> But how should we be thinking about the evolution going forward? >> Well, that's the beauty of open, right. Like, what is open source? Open source brings together a diverse set of perspectives, and background to innovate faster. And that's where we are. We're seeing a lot of technology evolve. I mean, just think about all the things that have evolved in the last two years. Where we've had technologies come up, some go down, but there is so much happening right now, because the time is now. For these companies that are trying to develop more applications and are trying to figure out ways not only to develop these applications, but develop them as scale, and really grow those out and build those, and IoT, and you're getting more data. We're having, capturing those data, and operationalizing that data. And it comes back to one thing. Applications that can take advantage of that. And so I think there is the potential as we build out and innovate both the ecosystem, but the platform will naturally evolved and take advantage of those wins from these organizations that are driving this to scale. >> So scale is the lynch pin, right? And if you think about traditional PaaS environments, if I can use that term, they're limited in scale and obviously simplicity. Is that another way to think about it? >> Well, I think the platform. I think about it this way. The platform enables you to run fast. You know, you're not running fast with scissors. You want to be able to run fast safely. So, it provides that abstraction and those guardrails so you can quickly iterate and develop and deploy code. If I look at what let's do HCSC is a company. They went from developing an application. It took them 35 people and nine months to create an app, right? Now, with Cloud Foundry, they're able to do it with four people in six weeks. It changes the way you work as an organization. Now, just imagine as you scale that out, what that means. And imagine the changes that can bring in your organization. When you're software centric, and you're customer first, and you're bringing that feedback loop in. >> Now, you guys do a lot of heavy lifting on behalf of the customer, but you're not hardening it. Hardening to the point where they can't mold it and shape it to what they want. That's kind of what I'm. >> No, we want to give. We want to abstract away and automate as much as possible for things you care about. Resiliency, auto-scaling, the ability to do security and compliance, 'cause those are things you care about as an enterprise. But, let's get that, let's make that happen for you, but then give the control to the developer to self-provision, to scale, to completely deploy and iterate. Do continuous delivery. All of those things that allow you to go from developing an app once a year to developing an app and iterating on that app constantly all the time. >> So Abby, I want to ask you, kind of take a step back. And look at the community trends right now. You see Open Stack has trajectory, it's becoming more an infrastructure as a service. Settling in there. That's gone through a lot of changes. Seeing a lot of growth in IoT which we talked about. You starting to see some movement in the open source community, CNCF has got traction, the Linux Foundation, Cloud native you've got Kubernetes. I call it the Cold War for orchestration, you know, going on right now, and it's. So it's really interesting time. Microservices are booming. This is the Holy Grail for developers for the next gen. It's going to be awesome. Machine learning. Everyone's getting intoxicated on that these days. So, super cool things coming down the pike. >> For sure, I think we're in the coolest time. >> What's going on in the communities? Is there any movement, is there trends, and is there a sentiment among the developer communities that you see that you could. Any patterns developing around what people are gravitating to? >> I think developers want the freedom to create. They want the ability to create applications and see those come to fruition. And I think. I think a lot of things that were new and innovative a couple of years ago, and even now, are becoming table stakes. For example, five years ago, having a mobile app as a bank was new and interesting and kind of fun. Now, it's table stakes. Are you going to go bank with a bank that doesn't have one? Are you going to bank with a bank that doesn't have it? It becomes table stakes. Or who doesn't, if you don't have fraud detection, which is basically event driven responses, right. So, you think about what table stakes are, and what, as we think about the abstraction moving up, that's really where it's going to get interesting. >> Yeah, but open source communities are going to move to these new ground. What I'm trying to get at is to see what's happening, what's the trend in the developer community? What's hot, what's fashionable? Is there new projects popping up that you could share that you think is cool and interesting? >> Well, they're all cool and interesting. >> John: You'd rather not comment. >> (laugh) I think they're all cool and interesting. I think you know, CNCF is a sister organization underneath the Linux Foundation. I, you know. >> John: They kind of inherit that from KubeCon, Kubernetes Con. >> Yeah, I think they're doing interesting things. I think any organization that's promoting cloud native application architecture and the value of that, you know, we all deserve to be part of the same conversation, because to your point earlier, a rising tide lifts all boats. And if every organization is doing cloud native application architectures, and cloud native solutions, it's going to be super interesting. >> I mean we certainly were just at Strata Hadoop, we ran our own event last week called Big Data SV, and it's very clear to us that the big data world and industry and cloud are coming together, and the forcing function is machine learning, IoT and then AI is the, you know, appeal. That's the big trend that kind of puts a mental model around it. But, IoT is driving this data and the cloud horsepower is forcing this to move faster. It seems to be very accelerated. >> But, it also enables so much. I mean, if you can operationalize this data that you're aggregating and turn it into actionable apps that do things for your business, save money, improve logistics, reach your users better and faster, you start to see the change and the shift that that can bring. You have the data married with the apps married with the endpoint sensors, and all of the sudden, this gets to be a really interesting evolution of technology. >> All right, so what's your 100 day plan. Well, you're already in a 100 day plan already. So what's your plan for this year? As new Executive Director for Cloud Foundry, what's on the agenda, what's your top three thing you're going to chip away at this year for objectives? >> Developers, developers, developers. Does that count as top three? >> More, more, more. (laughter) Increase of developer count. >> Just really, reaching out to developers and ensuring that they're able to be successful in Cloud Foundry. So I think you'll hear more from us in the next couple of weeks about that. But, >> John: So proof points basically. >> The proof points, but just ensuring they can be successful. Ensuring that scale is affable for them. And then really our summits are even changing. We have actually added developer tracks to our summits to make them a place not only where you can learn about Cloud Foundry, but also where you can work with other developers and learn from them, and learn about specific languages. But also, how to enable those into cloud native application architecture. And I think our goal this year was to really enrich that development community, and build that pipeline and help fill those gaps. >> And celebrate the wins like American Airlines of the world, and as IBM and others are successful, then it gets to be less. You don't want to have cognitive dissonance as a developer, that's the worst thing that developers want to make sure they're on a good bus. To you know, with good people. >> Well, you've got, you've obviously got some technology titans behind you. IBM, you know, the most prominent, I would say. But obviously, guys like VMware and Cisco and others, but you're also got a number of practitioner organization. Guys like Allianz. >> Abby: Allianz, yeah. >> VW, Allstate I think was early on in the program. >> JPMC, City Bank. >> Yeah, I don't want to. I shouldn't have started, 'cause I know I'd leave some out. (laughter) You're the Executive Director, so you have to fill in the gaps. But so, that's somewhat unique in a consortium like this. Somewhat, but that many is somewhat unique. Is there more traction there? What's their motivation in your. >> Abby: As a user? >> Yeah. >> Well, to your other point. We're an open source, right. What's the value? Me, if I'm an enterprise, and I'm looking to take advantage of a platform, but also an open source platform. Open source allows me to be part of that conversation. I could be a contributor, I could be part of the direction. I can influence where it's going. And I think that is a powerful sentiment for many of these organizations that are looking to evolve and become more software-centric, and this is a good way for them to give back and be part of that momentum. >> Yeah, and cloud's exploding. More open source is needed. It's just a great, great mission. Congratulations on the new job, and good luck this year. We'll keep in touch. >> Thank you. >> John: And certainly see you at the Cloud Foundry Summit. That's in San Francisco again this year? >> Santa Clara. June 13th through 15th. >> So every year you guys always have the fire code problem. (laughter) >> Well, I think, and I'm going to go on record now, and officially say this, this will be our last year there. Which I think everyone's excited about, because I think we're all over Santa Clara right now. (laughter) >> All right, well we'll see you there. Abby Kearns, Executive Director of Cloud Foundry Foundation. Here inside theCUBE, power in the cloud. This is theCUBE's coverage of IBM InterConnect 2017. Stay with us, more coverage after this short break. (upbeat music)

(corporate electronic xylophone jingle intro) >> Good afternoon and welcome back to our very last segment of Tuesday's live broadcast here on theCUBE from AWS re:Invent in fabulous Las Vegas, Nevada. My name is Savannah Peterson and I am joined here by the brilliant Paul Gillin. Paul, end of our first day. You holding up, are you still feeling overwhelmed with fire hose... >> Savannah, yet my feet are killing me. (savannah laughs) >> Yeah, we've done so much walking in these chairs. >> 14,000 steps already today. It's not even dinner time. >> Hey, well, at least you've earned your dinner, Paul. I love that. I love that. I'm very excited about our next guests. We have Krishna and Sowmya joining us from Tata Consultancy Services. Now, I was impressed when I was doing my background research on you all. The Tata Group has locations in 150 different spots, 46 different countries. You have over 600,000 employees on the team. We are talking about absolutely massive scale here but, today we're going to be focused specifically on the Tata Consultancy Services. Sowmya, can you tell me what you all do? What is that team specifically in charge of? >> Yeah, TCS, first of all, thank you very much for inviting us. >> Savannah: Our pleasure. >> Maybe the last session but, we'll make it very lively. >> Savannah: It's going to be the best session. That's the best part of the day. >> Yes, that's the attitude. From a company standpoint, we are a 50 plus year old company. Part of the Tata group. We focus on IT services. We are categorized as industry verticals and we have horizontal services where AWS is one of the horizontal services that we have. And, when I talk about TCS, we focus a lot more on growth and transformation of our customers. That is one of the key objectives of the current company's growth, I would say. So, that is TCS in a nutshell. >> Extraordinarily important topic to be focused on right now. Growth, transformation, pretty much the core topics of the show. I know you're on the hospitality and transportation side of the business, which is very exciting. And, we're going to dig into that a little bit more. Krishna, you're overseeing the world. Tell us a little bit more about your role within the whole ecosystem. >> Yeah, thank you for the opportunity. Great meeting all of you. It's been awesome experience here. re:Invent is coming back, catching up, right? 50,000 people compared to 25,000 last year. So, great to see and meet all of you. Coming to my role, I am responsible for AWS Business Unit within TCS. That means I am responsible for anything that happens on cloud, on AWS. It's a Full Stack unit. I have the global responsibility. That's whether it's a applications, data, infrastructure, transformation that happens, as well as OT at the edge. So, that's my responsibility. >> Savannah: Well, I love talking about the edge. One of my favorite. >> Transformation is a theme of what you do. We heard that the pandemic accelerated digital transformation initiatives at many companies. How did you see the pandemic affecting your business, affecting the customers you were working with? >> Pandemic definitely kind of accelerated a lot of cloud adoption, right? A lot of companies initially focused on resiliency, coming back to handling the pandemic, the situation. But, it also drove a lot of innovation in the business models. They had to think on their feet, re-look at their business models, change the channels and that continued. Pandemic is thankfully gone by but, the transformation actually continued. The way that we actually see on cloud, especially transformation, it has evolved. What we call as Cloud 2.0. Now, cloud is actually more focused on future-proofing the businesses. And, the initial days it was more about future-proofing the technology and technology architecture. But, it has evolved to future-proofing businesses. That means implementing new business models, bringing in agility, measuring the business value. And, that's where we see a significant traction. >> So, it's not about technology then. It's not about infrastructure. >> It is about technology but, really delivering business value. It's about, how can I improve the customer experience? >> Well, can you give us a couple of examples of companies you work with that embody this idea? >> I can imagine in the travel and hospitality zone. Probably few communities more sensitive than when someone's having a disruption or frustration within that process. And, perhaps few time periods less chaotic than the last few years. Tell us about your experience and what you've seen. >> Absolutely. To answer your question, first of all, coming out of pandemic, right? Many customers in the travel and hospitality industry where legacy, did not modernize for the last decade or so because, there have been many ups and downs in the industry. So, during pandemic, post-pandemic, one of the the way they wanted to rebound was, can we do the transformation? First of all, cloud as a technology adoption, but, beyond that, how do customers derive value, business value? That is one of the key aspects of the old transformation. And, if you take, I can give a couple of examples. Avis Car Rental, they had monolith mainframe applications and, that was there for almost couple of decades, right? But, over a period of time, they were not able to have the availability of those applications. There were many outages. As a result, businesses could not do the bookings. Like OTAs, customers could not do the bookings, the application was not available most of the time. And, it's all legacy, right? So, that is where we all came in, TCS. How do we first of all, simplify the complexity of the landscape? That is one. Then, second is, modernize the legacy application. That's the second thing. Third is, how do you scale it? Because, everyone wants to go faster, right? How do you scale it? That is where we partnered with AWS as well, to bring in some specific solutions. One example for Avis', their Rent Shop. Because, of the lack of availability, because, it's monolith application and legacy application. It was not available. So, as a result, we partnered and we brought in our contextual knowledge of the car rental industry to kind of transform, move it to cloud. And, today, as a result of it, Avis was able to save millions of dollars from a MIB standpoint. Second, in terms of availability, that was 99.9% availability. As a result, they had a pick in their business revenue as well. So, this is one of the ways that its helped. The second example I want to quote is, United Airlines. Here again, we've been present for a long time. We have a deep industry knowledge of the airline industry. So, we brought in our airline contextual knowledge and the United landscape to bring in a TCS's solution that we developed. It's called the Aviana. It's an intelligent operations solution for the airline industry, which we have developed. It's on AWS as well, that is being implemented in United. As a result, the ground staff, they have to take decisions on the moment when there is a irregular operation. That could be flight delays, as a result, customers connections will be lost. >> Savannah: Baggage. >> Baggage, right? Baggage delays. >> So many variables. The complexity... >> exactly >> in this matrix is wild. >> So, leveraging the Aviana solution, the ground staff were able to take decisions based on exceptions. They were able to take decisions quickly so that, they improved the customer experience. I think that was one of the key successes for United in the recent times. So, those two are the examples that I would call where customers have the right business value. So, cloud was not just for technology. They all are deriving a lot of business value as well. I would say. >> How important do you think it is for companies facing these unique challenges and scaling to work with partners like TCS? And, I'm sure you would say very important, but, tell me a little bit more why it's so important and those core benefits that they're going to get. Krishna, let's start off with you. Yeah, let me take again the AWS cloud transformation, right? TCS has formed AWS Business Unit two years back. So, we are a covid baby in a way. We have been working with the AWS for more than a decade but, we formed a dedicated Full-Stack Unit to drive cloud transformation on AWS. In these last two years, we've grown three X and customers we have added 400 new customers we have added. >> Nicely done. Just want to see you there. That's huge. Especially during these times. Congratulations. >> So, it's basically about the scale that we bring in. What we have done as a differentiation is, if you look at the entire cloud journey, right from taking a decision which cloud is, right, all the way to the cloud migration modernization and running operations. So, we have built complete platform. AML based platforms, where we have taken our delivery wisdom and codified it onto these platforms. So, we support around thousand plus customers on AWS in varying capacity. All of that knowledge is codified and, that is what we bring to the table, to the customers. And, so, customers obviously appreciate that value that best practices that are coming. And, coupled with that, the industry knowledge that we have on banking, life sciences, healthcare, automotive. So, it's partly the IT, it is the industry transformation as well. Because, we are working on connected cars, for example, in automotive. We are working on accelerated drug development platforms. We're working on complete banks as a platform that we have. TCS has built on AWS. So, 400 customers are there. It's the complete banking and insurance platform. So, this is the combination of the technical expertize that is digitized using platforms, as well as the industry knowledge, is the reason why customers work with us on the cloud transformation. >> So, we're seeing you talk about the vertical industry knowledge. AWS also has its own vertical industry plays. How do you, I guess, coordinate with them or, do you compete with them or, do you stay out of each other's way? >> No, we actually collaborate aggressively. >> Savannah: I like that (laughs) >> Right, so, it's not.. >> Savannah: With vigor. >> With vigor. TCS supports approximately 14 verticals. With AWS, we went with the focused industry play. We said we look at financial services, travel, transportation, hospitality, healthcare, life sciences and automotive, to start with. And, we have Go Big plans with AWS. very focused. The collaboration is actually at the industry solutions because, AWS is a great platform, ever evolving, keeps you on on your toes to really adapt it. But, that is always going on, the collaboration. But, the industry, I'm actually glad AWS last year took a pivot on focusing on industries. Now, we talk the same language when we go in front of a board or a CEO or COO. Present it. We are talking about the future of the industry not just the future of the technology. So, it's a win-win. >> You are also developing products on top of AWS that are not industry verticals, that build on the platform. What kinds of products are those? >> For cloud transformation, for example, consulting. We have a product called Cloud Counsell. We have a decision engine on the data side. We have something called Cloud Foundation, Mason. CloudMason. It's just the foundation, right? And, entire migration and modernization factory. And, the last one on cloud operations is actually Cloud Exponence. So, these are time tested. You have Fortune 500 customers using this regularly actively leveraging that. And, these are all AWS in a well architecture framework certified. So, they work well and they're designed to work on cloud, not only in the native environment, but, also legacy environment. Because, enterprises is not just only native, cloud-native. There is a lot of legacy. Sowmya spoke about the mainframe model... >> So much legacy, we were talking about it. >> So, you have to have a combination of solutions. So, the platforms that we're building, the products we're building, work in both the environments. >> Yeah, and that agility and ability to help customers navigate that prioritization. I mean, there's so many options. We talk about how many new companies there are every year. New solutions. Our adoption of technology is accelerating. As, McKinsey said, we went through 10 years of technological evolution and workplace evolution over the first six months of the pandemic. So, really everything's moving at unprecedented velocity unlike ever before. We have a new game here on theCUBE specifically for this show. And, we are challenging our guests, prompting our guests, to give us a 30 second sizzly sound bite with your hot take on the most important themes of this year's show. Think of it as a thought leadership moment. Opportunity to plug if you really want it. Krishna, you've just given me the nod. I'm going to start with you first and then we'll then we'll pass it along, yeah >> Sure. I think on thought leadership, the way that on cloud, business value is the focus, not the technology. Technology is important, but business value is the focus. And, the way that I see it evolving is with quantum computing coming out more and more, becoming relevant, and Edge is actually becoming quite active as well. All this while on cloud, we focused on business value at the centralized place at the corporate. But, I think the real value of cloud is when you deliver the results, business results, where the customers consume it, that is at the edge. I think that's basically the combination of centralized and the edge is where the real value of cloud is, right. And, I also loud, I know you said 30 seconds but, give me 30 more seconds. >> I like your answer right now. So, I'm going to give you a little more time. Yeah, thank you. >> You've earned more time. (laughs) >> So, I like the way Adam said in the keynote, if you look at it broadly, I categorizes two things. There are a lot of offerings that are becoming comprehensive, like AWS Connect, bringing in workforce management into it, making it a complete end to end product. Similarly, Security Lake, all bringing in the entire security and compliance under one, similarly data. So, there are lot of things that he announced where it is an end to end comprehensiveness of the thing. But, what I love about is, what Amazon is known for, supply chain. So, they rolled out AWS Supply Chain offering. Walk Out technology. So, the Amazon proposition is actually being brought to AWS as a core proposition. I think that's very futuristic and I think we can see more and more customers, enterprise customers, adopting AWS more to drive transformation >> Badly needed right now. Supply chain resiliency. >> Supply chain really having its moment the last two years. File under two words. No one knew, many of us did who worked in it before this. And, here we are, soon as we lost our toilet paper, everyone's freaked out. I love that you talked about business value and also that the end customer is on the edge and, everyone kind of forgets we are essentially the edge device. This is the edge device, it's all around us. And, all the technology that we're all using that you're even talking about is built right inside here from my airlines app to my car rentals to all of it. All right Sowmya, give us your 30 second hot take, roughly. >> Taking the cue from Krishna, right? Today, things are available on AWS Marketplace. So, tomorrow, somebody wants to start an airline, they just have to come and plug and play the apps that are available in the marketplace. Especially your supply chain. The Amazon is known for that. And, a small and medium business they want to start something, right, a .com. It's very easy. So, that's something that we are all looking for. The future is going to be very, very bright and great for the businesses, is what I would say because, most of it could be plug and play with all the solutions. >> Paul: It's already been built. >> On the cloud, so, we are looking forward to it. The second thing I would talk about is, we have to take it to scale. How more and more people can leverage AWS, right? The talent is very important and, that is where partners like us focus on re-scaling our talent. We have 600,000 people, right? We are not just... >> 600,000 people! That's basically as many people live in the San Francisco Bay area for contexts for our listeners. It's how many people work for Walmart? >> It's 1.2 million in Walmart? >> Is it really? >> It is, yes, yes. That's work for Walmart, sidebar. >> So from that standpoint, as the company, we are focusing on re-skilling, up-skilling our talent in order to work AWS cloud and so on, so, that they can go and support our customers. That is something that is very important and that's going to be the future as well. Bring it to scale, go faster. >> I love that you just touched on the fact that you essentially have to practice what you preach because, you've got to think about those 600,000 people in a 100 locations across 40 plus different countries. I love it. Sowmya, I'm going to close on that note. The future is bright, just like your fabulous blazer. >> Thank you so much. Krishna, Sowmya, thank you so much for being here with us. We can't wait to see what happens next, who you help next, and how Tata continues to transform. Thank all of you for tuning in today. A full jam packed day of coverage live here from Las Vegas, Nevada. We are at AWS re:Invent with Paul Gillin. I'm Savannah Peterson. We're theCUBE, the leader in High-Tech Coverage. (corporate electronic xylophone jingle outro)

(upbeat music) >> Good afternoon, everyone. Welcome back to the CUBE's day one coverage of VMware Explorer 22, live from San Francisco. I'm Lisa Martin. Dave Nicholson is back with me. Welcome back to the set. We're pleased to welcome William Bell as our next guest. The executive vice president of products at Phoenix NAP. William, welcome to the CUBE. Welcome back to the CUBE. >> Thank you, thank you so much. Happy to be here. >> Talk to us a little, and the audience a little bit about Phoenix NAP. What is it that you guys do? Your history, mission, value prop, all that good stuff. >> Absolutely, yeah. So we're global infrastructures as a service company, foundationally, we are trying to build pure play infrastructure as a service, so that customers that want to adopt cloud infrastructure but maybe don't want to adopt platform as a service and really just, you know, program themselves to a specific API can have that cloud adoption without that vendor lock in of a specific platform service. And we're doing this in 17 regions around the globe today. Yeah, so it's just flexible, easy. That's where we're at. >> I like flexible and easy. >> Flexible and easy. >> You guys started back in Phoenix. Hence the name. Talk to us a little bit about the evolution of the company in the last decade. >> Yeah, 100%. We built a data center in Phoenix expecting that we could build the centralized network access point of Phoenix, Arizona. And I am super proud to say that we've done that. 41 carriers, all three hyperscalers in the building today, getting ready to expand. However, that's not the whole story, right. And what a lot of people don't know is we founded an infrastructure as a service company, it's called Secured Servers no longer exists, but we founded that company the same time and we built it up kind of sidecar to Phoenix NAP and then we merged all of those together to form this kind of global infrastructure platform that customers can consume. >> Talk to us about the relationship with VMware. Obviously, here we are at VMware Explore. There's about seven... We're hearing 7,000 to 10,000 people here. People are ready to be back to hear from VMware and it's partner ecosystem. >> Yeah, I mean, I think that we have this huge history with VMware that maybe a lot of people don't know. We were one of the first six, the SPPs in 2011 at the end of the original kind of data center, whatever, vCloud data center infrastructure thing that they did. And so early on, there was only 10 of us, 11 of us. And most of those names don't exist anymore. We're talking, Terramark, Blue Lock, some of these guys. Good companies, but they've been bought or whatnot. And here's plucky Phoenix NAP, still, you know, offering great VMware cloud services for customers around the globe. >> What are some of the big trends that you're seeing in the market today where customers are in this multi-cloud world? You know this... I love the theme of this event. The center of the multi-cloud universe. Customers are in that by default. How do you help them navigate that and really unlock the value of it? >> Yeah, I think for us, it's about helping customers understand what applications belong where. We're very, very big believers both in the right home. But if you drill down on that right home for right applicator or right application, right home, it's more about the infrastructure choices that you're making for that application leads to just super exciting optimizations, right. If you, as an example, have a large media streaming business and you park it in a public called hyperscaler and you just eat those egress fees, like it's a big deal. Right? And there are other ways to do that, right. If you need a... If your application needs to scale from zero cores to 15,000 cores for an hour, you know, there are hyperscalers for that, right. And people need to learn how to make that choice. Right app, right home, right infrastructure. And that's kind of what we help them do. >> It's interesting that you mentioned the concept of being a pure play in infrastructure as a service. >> Yeah. >> At some point in the past, people would have argued that infrastructure as a service only exists because SaaS isn't good enough yet. In other words, if there's a good enough SaaS application then you don't want IaaS because who wants to mess around with IaaS, infrastructures as a service. Do you have customers who look at what they're developing as so much a core of what their value proposition is that they want to own it? I mean, is that a driving factor? >> I would challenge to say that we're seeing almost every enterprise become a SaaS company. And when that transition happens, SaaS companies actually care a lot about the cost basis, efficiency, uptime of their application. And ultimately, while they don't want to be in the data center business anymore, it doesn't mean that they want to pay someone else to do things that they feel wholly competent in doing. And we're seeing this exciting transition of open source technologies, open source platforms becoming good enough that they don't actually have to manage a lot of things. They can do it in software and the hardware's kind of abstracted. But that actually, I would say is a boon for infrastructure as a service, as an independent thing. It's been minimized over the years, right. People talk about hyperscalers as being cloud infrastructure companies and they're not. They're cloud platform companies, right. And the infrastructure is high quality. It is easy to access and scale, right, but it's ultimately, if you're just using one of those hyperscalers for that infrastructure, building VMs and doing a bunch of things yourself, you're not getting the value out of that hyperscaler. And ultimately that infrastructure's very expensive if you look at it that way. >> So it's interesting because if you look at what infrastructure consists of, which is hardware and software-- >> Yeah. >> People who said, eh, IaaS as is just a bridge to a bright SaaS future, people also will make the argument that the hardware doesn't matter anymore. I imagine that you are doing a lot of optimization with both hardware and stuff like the VMware cloud stack that you deploy as a VCPP partner. >> Absolutely, yeah. >> So to talk about that. >> Absolutely. >> I mean, you agree. I mean, if I were to just pose a question to you, does hardware still matter? Does infrastructure still matter? >> Way more than people think. >> Well, there you go. So what are you doing in that arena, specifically with VCPP? >> Yeah, absolutely. And so I think a good example of that, right, so last VMworld in person, 2019, we showcased a piece of technology that we had been working with Intel on for about two years at the time which was Intel persistent memory DC, persistent memory. Right? And we launched the first VMware cloud offering to have Intel DC persistent memory onboard. So that customers with the VMs that needed that technology could leverage it with the integrations in vSphere 6.7 and ultimately in seven more, right. Now I do think that was maybe a swing and a miss technology potentially but we're going to see it come back. And that specialized infrastructure deployment is a big part of our business, right. Helping people identify, you know, this application, if you'd have this accelerator, this piece of infrastructure, this quality of network can be better, faster, cheaper, right. That kind of mentality of optimization matters a lot. And VMware plays a critical role in that because it still gives the customer the operational excellence that they need without having to do everything themselves, right. And our customers rely on that a lot from VMware to get that whole story, operationally efficient, easy to manage, automated. All those things make a lot of difference to our VMware customers. >> Speaking of customers, what are you hearing, if anything, from customers, VMware customers that are your joint customers about the Broadcom acquisition? Are they excited about it? Are they concerned about it? And how do you talk about that? >> Yeah, I mean, I think that everyone that's in the infrastructure business is doing business with Broadcom, all right. And we've had so many businesses that we've been engaged with that have ultimately been a acquiree. I can say that this one feels different only in the size of the acquisition. VMware carries so much weight. VMware's brand exceeds Broadcom's brand, in my opinion. And I think ultimately, I don't know anything that's not public, right-- >> Well, they rebranded. By the way, on the point of brand, they rebranded their software business, VMware. >> Yeah. I mean, that's what I was going to say. That was the word on the street. I don't know if there's beneficial. Is that a-- >> Well, that's been-- >> But that's the word, right? >> That's what they've said. Well, but when a Avago acquired Broadcom they said, "we'll call ourselves Broadcom." >> Absolutely. Why wouldn't you? >> So yeah. So I imagine that what's been reported is likely-- >> Likely. Yeah, I 100% agree. I think that makes a ton of sense and we can start to see even more great intellectual property in software. That's where, you know, all of these businesses, CA, Symantec, VMware and all of the acquisitions that VMware has made, it's a great software intellectual property platform and they're going to be able to get so much more value out of the leadership team that VMware has here, is going to make a world of difference to the Broadcom software team. Yeah, so I'm very excited, you know. >> It's a lot of announcements this morning, a lot of technical product announcements. What did you hear in that excites you about the evolution of VMware as well as the partnership and the value in it for your customers? >> You know, one of our fastest growing parts of our business is this metal as a service infrastructure business and doing very, very... Using very specific technologies to do very interesting things, makes a big difference in our world and for our customers. So anything that's like smartNICs, disaggregated hypervisor, accelerators as a first class citizen in VMware, all that stuff makes the Phoenix NAP story better. So I'm super excited about that, right. Yeah. >> Well, it's interesting because VCPP is not a term that people who are not insiders know of. What they know is that there are services available in hyperscale cloud providers where you can deploy VMware. Well, you know, VMware cloud stack. Well, you can deploy those VMware cloud stacks with you. >> Absolutely. >> In exactly the same manner. However, to your point, all of this talk about disaggregation of CPU, GPU, DPU, I would argue with it, you're in a better position to deploy that in an agile way than a hyperscale cloud provider would be and foremost, I'm not trying to-- >> No, yeah. >> I'm not angling for a job in your PR department. >> Come on in. >> But the idea that when you start talking about something like metal as a service, as an adjunct or adjacent to a standard deployment of a VMware cloud, it makes a lot of sense. >> Yeah. >> Because there are people who can't do everything within the confines of what the STDC-- >> Yes. >> Consists of. >> Absolutely. >> So, I mean... Am I on the right track? >> No, you are 100% hitting it. I think that that point you made about agility to deliver new technology, right, is a key moment in our kind of delivery every single year, right. As a new chip comes out, Intel chip or Accelerator or something like that, we are likely going to be first to market by six months potentially and possibly ever. Persistent memory never launched in public cloud in any capacity but we have customers running on it today that is providing extreme value for their business, right. When, you know, the discreet GPUs coming from the just announced Flex series GPU from Intel, you're likely not going to see them in public cloud hyperscalers quickly, right. Over time, absolutely. We'll have them day one. Isolate came out, you could get it in our metal as a service platform the morning it launched on demand, right. Those types of agility points, they're not... Because they're hyperscale by nature. If they can't hyperscale it, they're not doing it, right. And I think that that is a very key point. Now, as it comes in towards VMware, we're driving this intersection of building that VCF or VMware cloud foundation which is going to be a key point of the VMware ecosystem. As you see this transition to core based licensing and some of the other things that have been talked about, VMware cloud foundation is going to be the stack that they expect their customers to adopt and deliver. And the fact that we can automate that, deliver it instantaneously in a couple of hours to hardware that you don't need to own, into networks you don't need to manage, but yet you are still in charge, keys to the kingdom, ready to go, just like you're doing it in your own data center, that's the message that we're driving for. >> Can you share a customer example that you think really just shines a big flashlight on the value that you guys are delivering? >> We definitely, you know, we had the pleasure of working with Make-A-Wish foundation for the last seven years. And ultimately, you know, we feel very compelled that every time we help them do something unique, different or what not, save money, that money's going into helping some child that's in need, right. And so we've done so many things together. VMware has stepped up as the plate over the years, done so many things with them. We've sponsored stuff. We've done grants, we've done all kinds of things. The other thing I would say is we are helping the City of Hope and Translational Genomics Research Institute on sequencing single cell RNA so that they can fight COVID, so that they can build cure, well, not cures but build therapies for colon cancer and things like that. And so I think that, you know, this is a driving light for us internally is helping people through efficiency and change. And that's what we're looking for. We're looking for more stories like that. We're looking... If you have a need, we're looking for people to come to us and say, "this is my problem. This is what this looks like. Let us see if we can find a solution that's a little bit different, a little bit out of the box and doesn't have to change your business dramatically." Yeah. >> And who are you talking to within customers? Is this a C level conversation? >> Yeah, I mean, I would say that we would love it to be... I think most companies would love to have that, you know, CFO conversation with every single customer. I would say VPs of engineering, increasingly, especially as we become more API centric, those guys are driving a lot of those purchasing decisions. Five years ago, I would've said director of IT, like director of IT. Now today, it's like VP of engineering, usually software oriented folks looking to deliver some type of application on top of a piece of hardware or in a cloud, right. And those guys are, you know, I guess, that's even another point, VMware's doing so much work on the API side that they don't get any credit for. Terraform, Ansible, all these integrations, VMware doing so much in this area and they just don't get any credit for it ever, right. It's just like, VMware's the dinosaur and they're just not, right. But that's the thing that people think of today because of the hype of the hyperscaler. I think that's... Yeah. >> When you're in customer conversations, maybe with prospects, are you seeing more customers that have gone all in on a hyperscaler and are having issues and coming to you guys saying help, this is getting way too expensive? >> Yeah, I think it's the unexpected growth problem or even the expected growth problem where they just thought it would be okay, but they've suffered some type of competitive pressure that they've had to optimize for and they just didn't really expect it. And so, I think that increasingly we are finding organizations that quickly adopted public cloud. If they did a full digital transformation of their business and then transformation of their applications, a lot of them now feel very locked in because every application is just reliant on x hyperscaler forever, or they didn't transform anything and they just migrated and parked it. And the bills that are coming in are just like, whoa like, how is that possible? We are typically never recommending get out of the public cloud. We are just... It's not... If I say the right home for the right application, it's by default saying that there are right applications for hyperscalers. Parking your VMware environment that you just migrated to a hyperscaler, not the right application. You know, I would love you to be with me but if you want to do that, at least go to VMC on AWS or go to OCVS or GCVE or any of those. If that's going to go with a Google or an Amazon and that's just the mandate and you're going to move your applications, don't just move them into native. Move them into a VMware solution and then if you still want to make that journey, that full transformation, go ahead and make it. I would still argue that that's not the most efficient way but, you know, if you're going to do anything, don't just dump it all into cloud, the native hyperscaler stuff. >> Good advice. >> So what do typical implementations look like with you guys when you're moving on premises environments into going back to the VCPP, STDC model? >> Absolutely. Do you have people moving and then transforming and re-platforming? What does that look like? What's the typical-- >> Yeah. I mean, I do not believe that anybody has fully made up their mind if exactly where they want to be. I'm only going to be in this cloud. It's an in the close story, right. And so even when we get customers, you know, we firmly believe that the right place to just pick up and migrate is to a VCPP cloud. Better cost effectiveness, typically better technology, you know service, right. Better service, right. We've been part of VMware for 12 years. We love the technology behind VMC's, now AWS is fantastic, but it's still just infrastructure without any help at all right, right. They're going to be there to support their technology but they're not going to help you with the other stuff. We can do some of those things. And if it's not us, it's another VCPP provider that has that expertise that you might need. So yes, we help you quickly, easily migrate everything to a VMware cloud. And then you have a decision point to make. You're happy where you are, you are leveraging public cloud for a certain applications. You're leveraging VMware cloud offerings for the standard applications that you've been running for years. Do you transform them? Do you keep them? What do you do? All those decisions can be made later. But I stress that repurchasing all your hardware again, staying inside your colo and doing everything yourself, it is for me, it's like a company telling me they're going to build a data center for themselves, single tenant data center. Like no one's doing that, right. But there are more options out there than just I'm going to go to Azure, right. Think about it. Take the time, assess the landscape. And VMware cloud providers as a whole, all 17,000 of us or whatever across the globe, people don't know that group of individuals of the companies is the third or fourth potentially largest cloud in the world. Right? That's the power of the VMware cloud provider ecosystem. >> Last question for you as we wrap up here. Where can the audience go to learn more about Phoenix NAP and really start test driving with you guys? >> Absolutely. Well, if you come to phoenixnap.com, I guarantee you that we will re-target you and you can click on a banner later if you don't want to stay there. (Lisa laughs) But yeah, phoenixnap.com has all the information that you need. We also put out tons of helpful content. So if you're looking for anything technology oriented and you're just, "I want to upgrade to Ubuntu," you're likely going to end up on a phoenixnap.com website looking for that. And then you can find out more about what we do. >> Awesome, phoenixnap.com. William, thank you very much for joining Dave and me, talking about what you guys are doing, what you're enabling customers to achieve as the world continues to evolve at a very dynamic pace. We appreciate your insights. >> Absolutely, thank you so much >> For our guest and Dave Nicholson, I'm Lisa Martin. You've been watching the CUBE live from VMware Explorer, 2022. Dave and I will be joined by a guest consultant for our keynote wrap at the end of the day in just a few minutes. So stick around. (upbeat music)

(upbeat music) >> Hi everybody. We're back at VeeamON 2022, we're winding down coverage to The Cube day two. We've done a lot of VeeamON. We're at the Aria hotel, smaller physical audience, huge hybrid audience, little different program. Great keynotes, really loved the keynote yesterday and today kind of product day today. Sean Smith is here with myself and David Nicholson. He's the staff Solution Architect at VMware. Sean, thanks for coming on the Cube, taking some time with us. >> Hey guys. Great to be here and great to be in person again. >> Yeah, it sure is. Hoping to see VMworld is no longer VMworld, right? >> It's VMware Explore now. Yep. >> Okay. Awesome. Looking forward to that. That was one of the first shows we ever did. It's kind of got that same vibe, I hope you don't lose that, the core of VMware. >> What we've been told is it's still going to be, the core of what we do and it's going to be the showcase of VMware. >> Which is the ecosystem, great vibe. You always know a million people there, which is great fun. How's it going at VMware today? I mean, let's start there. It's been a while since we've talked physically with... >> Yeah. VMware is, we've come through the pandemic, fairly well, relative speaking to what others have done. I'm part of the VCPP Program, the VMware Cloud Provider Program, and I look after cloud service providers, cloud builders, people who are actually building out networks for customers and environments that are very specialized and focusing on their needs and VMware is forefront with cloud service providers these days, doing really well. >> The last time we were physically proximate to VMware executives, I think Pat Gelsinger was still the CEO, Dell still owned the majority of VMware. So that spin happened. So that's good. I think the ecosystem in particular is probably really happy about that. Does it have any effect on your world? >> From a day to day business perspective, not really, right. Obviously we still have a very tight relationship with Dell. We still do a lot of innovative solutions and products with the Dell team. We have a tight integration there. It really gives us the opportunity to also work with many other vendors as well. And focus on solutions that our customers are looking for really, is where VMware is tryna focus. >> Yeah. It's funny, we were at Red Hat Summit last week. IBM Think was right across the street there was very little mention, if any, I think they talked about an IBM mainframe at Red Hat Summit. That was it. I mean IBM fully owns Red Hat, but a lot of people said, we hope that it's going to be like VMware and you guys have always had that independent culture. >> Fiercely independent. >> Fiercely independent. Yes. >> Yes. It's like when you coach, I don't know me anyway, when I coach my kids baseball, I'm a tougher on them than am with the other kids. I think you guys were sometimes tougher on your own or... And rightly so, you have a huge ecosystem. >> We do. >> That is epic. And so you have to look out for that. VMware has always done that. VCPP the V is for a VMware what's what's the acronym. >> So the CPP is Cloud Provider Program. It's a program that's specifically aimed at our cloud service providers. There's several solutions within the program, which are really focused on helping them build business, helping them go to market, helping them with being able to, for certain part of it compete with the hyperscalers and our support several cloud providers, mostly out of the Northeast, and they're doing really well. They're doing well against the hyperscalers, they very often provide solutions that are not easy to get on a hyperscaler. When you want to have customer interaction and things like that. So the VCP Program as I said, is really tailored, it has solutions which are very much focused on allowing them to build their businesses as a cloud service provider. >> Just a follow up if I may. >> Yeah. >> So the history of VMware Cloud has been really interesting. At one point vCloud Air, we know what happened there. This is not vCloud Air. >> This is not vCloud Air. It's got nothing to do with vCloud Air. It's really a program where we provide solutions that the cloud builders build with, right? So it's software solutions. There's no hardware involved. There's no VMware having the environment, it's really cloud providers building solutions. >> So it's interesting, Dave, this has come full circle, you used to work at Virtustream. There was point Rodney was like, bring it on AWS, correlation and back said, we can't lose to a book seller and all that was just, fun marketing talk for media people like us. But the interesting thing is, well, so VMware Cloud on AWS. Huge success of VMware Cloud Foundation. Doing really well. And obviously you've got momentum. Everybody thought, not everybody. >> It's in Google's, in Azure, it's in Oracle. >> Yeah, yeah. Sorry. >> It's an IBM. >> IBM a... >> It's an IBM. >> Number one in IBM. Yeah. >> And so a lot of people thought, I shouldn't say everybody, but a lot of people thought, MSPs, the cloud service providers, non-hyperscalers are cooked through 2010, 2011. The exact opposite happened. >> It's 100%. >> It's growing like crazy. We want to understand why, but it's come full circle. >> Yeah, it certainly has. I mean, the industry has changed considerably and especially over the last few years with COVID, I will say that the cloud service providers that are support and by the way, Virtustream was one of them, when I first joined VMware, I supported Virtustream. And they have had to adapt their businesses, the hyperscalers have come at them with everything that they've got and honesty, the cloud service providers that I support are phenomenal growth. They they're growing on a par with what some of the hyperscalers are doing. So there's definitely a place for cloud service providers, they've got great business, they've got great customers, great relationships. And it's as I said, it's growing a huge business. >> So we've talked a lot about theme from the perspective of the idea of a Supercloud. Something that can overlay a variety of on-premises and off-premises providers and provide sort of a unified view, unified management methodology. How much is what at least was formerly known as the SDDC stack, the Software Defined Data Center stack, still a part of VMwares vision that is right in line with that, from what Veeam is doing. How much of your business is deploying SDDC stacks that are then customized in one way or another. >> 100% of it. >> 100% of it. Right, okay. >> Yeah. So, when you're talking about having that single view of everything in the cloud provider program, there's a product called VMware Cloud Director. and it is the multi-tenant view of the infrastructure and the environment that the cloud providers are building. Right. So VMware Cloud Director has gone through many iterations and we've recently launched Cloud Director Service, which is a SaaS offering of the product. But what it actually does is you put it on top of VMC on AWS. you put it on top of GCVE, you put it on top of the cloud service providers, SDDCs, right. All of these are SDDCs underneath. >> AVS and Azure. >> AVS and Azure. >> I was associated with that. So I must have it mentioned. >> Exactly. >> They're all SDDC's. >> SDDC's, yeah, yeah, exactly. And as well as your on premise environment. Right. So all of these federate together through the VMware Cloud Director, and you end up having a single pane of glass across all of those environments. So whether it's running in the hyperscale, or running on your premises, running in a cloud service provider's environment, you have a single view, a single interface that you log into and you can see everything that's going on inside your environment. So it really brings that holistic, single view of everything to reality. >> How about from a licensing perspective? >> So from a licensing perspective... >> I'm a non-premises customer, I'm running VMware on-prem, I have been, I was at world VMworld 2004 and enjoyed BattleBots. So hopefully you'll start bringing BattleBots back. >> We will have to. >> And now I'm dealing with a service provider. That is one of the partners that you're working with. How does that licensing work? >> So the Cloud Provider Program actually has a slightly different licensing model to what you would have on premises, right? They have a rental model with VMware, it's a PAYGo model, right. One of the great things about the program is that it's consumption based. So it makes it easy for cloud service providers to build a consumption based business, which is kind of where everything is moving, right? >> Yeah, for sure. >> So whether you have an on-premise environment that's licensed through what we call perpetual or ELA licensing, from a VMware perspective, you can still layer on top, that cloud service provider solution VCD, right? And you would obviously have a financial relationship with the cloud service provider in terms of the environment that you have with them. And they will be able to hook up that environment to your on-premises environment and get that single view. So the licensing is not a restriction, right, you can still continue to have your traditional licensed environment in your data center, as well as being able to connect into these seamlessly, right. That's the great thing about it. And that's where VMC, AVS, GCVE, the OCVS, the Oracle version, the RBM one, you can bring all of these together and really look at it from a holistic perspective, bring in things like NSX-T and other solutions like that VM as well, it works seamlessly across all these environments. >> I am talking about Supercloud, I asked Raghu last year, who's virtually at VMworld, I kind of explained that concept of hiding the complexity, the abstraction layer, being able to hide the underlying primitives and APIs, seems like it's evolving. One of the things he said was yes, but if developers want to go there, we let them. And that was a key point, because you're getting more into that DevOps. >> Correct 100%. >> And I would imagine the cloud service providers really oftentimes need for their reasons to get to those underlying primitives and APIs. >> And actually VCD is the enabler, right? So VCD allows you to provide a container based service sitting right alongside your IAS in the same SDDC, right? We're not even talking about segregating them out, you can have it inside the exact same SDDC, all linked together, all taking a common security approach to what's going on and providing you with that ease of use. So from an end user perspective, the DevOps type of people, VCD is an awesome solution, because they can go in fire up a new VM, or fire up a new container or whatever, without having to go through the rigmarole of asking IT for a VM, or asking somebody's permission, as a organization, you would give your DevOps teams certain amount of resources, how they use it's up to them, right? Whether they put containers in there or they bring VMs, it's all there. And it's all in one single solution. >> You mentioned that your community is doing very well growing it let's call it 35, 40% a year. And it's a market that's quite large worldwide. Because it's a lot of local, regional CSPs, a lot of big country CSPs and you said... >> It's four and a 1/2 thousand of them. So, it's huge. >> There you >> Versus four hyperscalers. >> Yeah, exactly. >> Include Alibaba. So, they might be individually smaller, but collectively they're larger. But you said that the hyperscalers coming after them with everything they had was a comment that you made, are customers choosing CSPs over hyperscalers? If so, when and why. >> Sometimes they are choosing CSPs over hyperscalers, but not always, very often they're choosing CSPs and hyperscalers, right. And it really depends on what their needs are. So historically speaking, it's been everybody rushing to the hyperscalers because that's the flavor of the day let's move out of our data center. It's much cheaper to run everything in these hyperscalers, and they do it. And then the bill comes in and reality suddenly hits. And it's definitely not as cheap as they thought it was going to be, right. So there's many aspects that cause tenants to not only rethink that, but also repatriate, right. Repatriation is a big thing for our cloud service providers. Things like egress costs, most cloud service providers have no egress costs, right? They encourage movement of things amongst themselves and for their tenants, because that's what they want, right? So egress costs are a huge problem for many tenants who come into these environments and that's sometimes why they would choose a CSP over a hyperscaler. But really, it's more about choosing the right place for your workload. There are workloads that belong in hyperscalers, right? And if you have a solution with a CSP like VCD, that allows you not only to be able to connect your on premises and the CSP, but also the hyperscalers and actually have a much more holistic solution where you can determine where you want to put stuff and put it in the right place. It's more about that, than it is about choosing one over the other really. >> Yeah, and sometimes it's more of a business differentiation than a technical one. Is it a hyperscale or is it a CSP? If you're licensing the SDDC stack and you're running it on IAS in Amazon or in Google or Azure? >> I think the other thing too is the CSPs oftentimes they manage service providers, right? Is that true? >> The relationship, right? And that's one of the things if you talk to a cloud service provider and yesterday I was, I had a session and I was talking to a bunch of people about VMware stuff. And I said to them, how many of you have tried to pick up a phone and talk to somebody at AWS? And there was laughter, because the reality is that what AWS does is a kind of one size fits all approach, right? There isn't somebody on the end of the phone that you can pick up and call, if they have a major outage that outage is affecting 1000s of different customers and you one of those thousands really means nothing to them, right? Whereas a cloud service provider, generally speaking, has a very tight one-on-one relationship with both from an engineering perspective, right. With their tenants, but also at a higher managerial level. So they create those relationships and those relationships often drive these things. It's not always financial, there is a financial component to it, but very often it's the relationship, have they got somebody that they can talk to? If they getting many different solutions, can they get all those solutions from one provider? And if they can, it's much easier for them to manage from a... >> And I think so does that manage service... There's also a lot of things that despite their breadth and portfolio that the cloud service providers don't support, you can't do Oracle rack in the cloud, right? But you can in a service provider. >> Exactly. >> And Oracle, look you can negotiate with Oracle, so you can get similar pricing AWS, but this price is two x. They're either on-prem or in Oracle. So I could take my Oracle instance, stick it into a managed service provider or cloud service provider, do whatever I need to, and there are I'm sure 1000s of configurations like that, that aren't necessarily identically supported, security edicts that aren't necessarily exactly the same, so many specials that managed service say welcome to your point. AWS is as long as it's black, it's good. >> Yeah, exactly. And that's the thing, right? Those cloud service providers are doing exactly that. They have Oracle racks in there, they have all sorts of those solutions that are there in their data centers. And proximity is also an issue, right? Very often the people who are using those systems need their ancillary things to be close by, they can't be 10s or 20s or 30 milliseconds away, they need to be sub millisecond connectivity. And those are the areas where the cloud service providers really shine, they can offer those solutions that really enable their tenants to get what they want at the end of the day. Again to your point, you can negotiate with Oracle, but these cloud service providers do it day in and day out. Who wants their business? >> Who wants to do that with Oracle anyway, their lawyers are smarter than yours. Veeam, what are you doing with Veeam, in resilient architectures and cyber recovery? >> Yeah, we are a sponsor here at the event and Veeam is a great partner with VMware and we're great partner to them. A lot of cloud service providers actually use Veeam as their primary backup solution for their tenants, right. VMware Cloud Director that I was talking about just now, the thing that gives you a view of everything over the top, Veeam was actually one of the very first vendors to integrate with VCD. And you can use your Veeam environment directly from the screen, you right click, and you say do a backup and that's as easy as that from a Veeam perspective. So we have a lot of integrations with Veeam. We help the cloud service providers, ransomware is a big talking thing around this event, but all over the place, right? So a lot of the solutions that Veeam brings to the party, these cloud service providers are also deploying into their environments to help with ransomware. They have so many solutions that help those cloud service providers provide a holistic solution. >> Well, Veeam was basically founded saying, Hey, we're going to better our business on VMware. I first saw Veeam at a V mug, I think in Boston, and I was like, who is Veeam? VMware is that their product? It was just so you guys have had a long relationship, even though initially VMware was probably saying the same thing, who the heck are these guys? Well, how do you like them now? Sean, thanks so much for... >> Thank you. It's been great to be here. Appreciate it. Thank you for watching. Keep it right there. We'll be back shortly. We'll get a couple more segments left. Dave and I are going to wrap up later in the day, you watching The Cube at VeeamON 2022, be right back. (upbeat music)

>> From theCUBE Studios in Palo Alto, in Boston bringing you Data Driven Insights from theCUBE and ETR. This is Breaking Analysis with Dave Vellante. >> In the pre-cloud era hardware companies would run benchmarks, showing how database and or application performance ran better on their systems relative to competitors or previous generation boxes. And they would make a big deal out of it. And the independent software vendors, you know they'd do a little golf clap if you will, in the form of a joint press release it became a game of leaprog amongst hardware competitors. That was pretty commonplace over the years. The Dell Snowflake Deal underscores that the value proposition between hardware companies and ISVs is changing and has much more to do with distribution channels, volumes and the amount of data that lives On-Prem in various storage platforms. For cloud native ISVs like Snowflake they're realizing that despite their Cloud only dogma they have to grit their teeth and deal with On-premises data or risk getting shut out of evolving architectures. Hello and welcome to this week's Wikibon Cube Insights powered by ETR. In this breaking analysis, we unpack what little is known about the Snowflake announcement from Dell Technologies World and discuss the implications of a changing Cloud landscape. We'll also share some new data for Cloud and Database platforms from ETR that shows Snowflake has actually entered the Earth's orbit when it comes to spending momentum on its platform. Now, before we get into the news I want you to listen to Frank's Slootman's answer to my question as to whether or not Snowflake would ever architect the platform to run On-Prem because it's doable technically, here's what he said, play the clip >> Forget it, this will only work in the Public Cloud. Because it's, this is how the utility model works, right. I think everybody is coming through this realization, right? I mean, excuses are running out at this point. You know, we think that it'll, people will come to the Public Cloud a lot sooner than we will ever come to the Private Cloud. It's not that we can't run a private Cloud. It's just diminishes the potential and the value that we bring. >> So you may be asking yourselves how do you square that circle? Because basically the Dell Snowflake announcement is about bringing Snowflake to the private cloud, right? Or is it let's get into the news and we'll find out. Here's what we know at Dell Technologies World. One of the more buzzy announcements was the, by the way this was a very well attended vet event. I should say about I would say 8,000 people by my estimates. But anyway, one of the more buzzy announcements was Snowflake can now run analytics on Non-native Snowflake data that lives On-prem in a Dell object store Dell's ECS to start with. And eventually it's software defined object store. Here's Snowflake's clark, Snowflake's Clark Patterson describing how it works this past week on theCUBE. Play the clip. The way it works is I can now access Non-native Snowflake data using what materialized views, external tables How does that work? >> Some combination of the, all the above. So we've had in Snowflake, a capability called External Tables, which you refer to, it goes hand in hand with this notion of external stages. Basically there's a through the combination of those two capabilities, it's a metadata layer on data, wherever it resides. So customers have actually used this in Snowflake for data lake data outside of Snowflake in the Cloud, up until this point. So it's effectively an extension of that functionality into the Dell On-Premises world, so that we can tap into those things. So we use the external stages to expose all the metadata about what's in the Dell environment. And then we build external tables in Snowflake. So that data looks like it is in Snowflake. And then the experience for the analyst or whomever it is, is exactly as though that data lives in the Snowflake world. >> So as Clark explained, this capability of External tables has been around in the Cloud for a while, mainly to suck data out of Cloud data lakes. Snowflake External Tables use file level metadata, for instance, the name of the file and the versioning so that it can be queried in a stage. A stage is just an external location outside of Snowflake. It could be an S3 bucket or an Azure Blob and it's soon will be a Dell object store. And in using this feature, the Dell looks like it lives inside of Snowflake and Clark essentially, he's correct to say to an analyst that looks exactly like the data is in Snowflake, but uh, not exactly the data's read only which means you can't do what are called DML operations. DML stands for Data Manipulation Language and allows for things like inserting data into tables or deleting and modifying existing data. But the data can be queried. However, the performance of those queries to External Tables will almost certainly be slower. Now users can build things like materialized views which are going to speed things up a bit, but at the end of the day, it's going to run faster than the Cloud. And you can be almost certain that's where Snowflake wants it to run, but some organizations can't or won't move data into the Cloud for a variety of reasons, data sovereignty, compliance security policies, culture, you know, whatever. So data can remain in place On-prem, or it can be moved into the Public Cloud with this new announcement. Now, the compute today presumably is going to be done in the Public Cloud. I don't know where else it's going to be done. They really didn't talk about the compute side of things. Remember, one of Snowflake's early innovations was to separate compute from storage. And what that gave them is you could more efficiently scale with unlimited resources when you needed them. And you could shut off the compute when you don't need us. You didn't have to buy, and if you need more storage you didn't have to buy more compute and vice versa. So everybody in the industry has copied that including AWS with Redshift, although as we've reported not as elegantly as Snowflake did. RedShift's more of a storage tiering solution which minimizes the compute required but you can't really shut it off. And there are companies like Vertica with Eon Mode that have enabled this capability to be done On-prem, you know, but of course in that instance you don't have unlimited elastic compute scale on-Prem but with solutions like Dell Apex and HPE GreenLake, you can certainly, you can start to simulate that Cloud elasticity On-prem. I mean, it's not unlimited but it's sort of gets you there. According to a Dell Snowflake joint statement, the companies the quote, the companies will pursue product integrations and joint go to market efforts in the second half of 2022. So that's a little vague and kind of benign. It's not really clear when this is going to be available based on that statement from the two first, but, you know, we're left wondering will Dell develop an On-Prem compute capability and enable queries to run locally maybe as part of an extended apex offering? I mean, we don't know really not sure there's even a market for that but it's probably a good bet that again, Snowflake wants that data to land in the Snowflake data Cloud kind of makes you wonder how this deal came about. You heard Sloop on earlier Snowflake has always been pretty dogmatic about getting data into its native snowflake format to enable the best performance as we talked about but also data sharing and governance. But you could imagine that data architects they're building out their data mesh we've reported on this quite extensively and their data fabric and those visions around that. And they're probably telling Snowflake, Hey if you want to be a strategic partner of ours you're going to have to be more inclusive of our data. That for whatever reason we're not putting in your Cloud. So Snowflake had to kind of hold its nose and capitulate. Now the good news is it further opens up Snowflakes Tam the total available market. It's obviously good marketing posture. And ultimately it provides an on ramp to the Cloud. And we're going to come back to that shortly but let's look a little deeper into what's happening with data platforms and to do that we'll bring in some ETR data. Now, let me just say as companies like Dell, IBM, Cisco, HPE, Lenovo, Pure and others build out their hybrid Clouds. The cold hard fact is not only do they have to replicate the Cloud Operating Model. You will hear them talk about that a lot, but they got to do that. So it, and that's critical from a user experience but in order to gain that flywheel momentum they need to build a robust ecosystem that goes beyond their proprietary portfolios. And, you know, honestly they're really not even in the first inning most companies and for the likes of Snowflake to sort of flip this, they've had to recognize that not everything is moving into the Cloud. Now, let's bring up the next slide. One of the big areas of discussion at Dell Tech World was Apex. That's essentially Dell's nascent as a service offering. Apex is infrastructure as a Service Cloud On-prem and obviously has the vision of connecting to the Cloud and across Clouds and out to the Edge. And it's no secret that database is one of the most important ingredients of infrastructure as a service generally in Cloud Infrastructure specifically. So this chart here shows the ETR data for data platforms inside of Dell accounts. So the beauty of ETR platform is you can cut data a million different ways. So we cut it. We said, okay, give us the Cloud platforms inside Dell accounts, how are they performing? Now, this is a two dimensional graphic. You got net score or spending momentum on the vertical axis and what ETR now calls Overlap formally called Market Share which is a measure of pervasiveness in the survey. That's on the horizontal axis that red dotted line at 40% represents highly elevated spending on the Y. The table insert shows the raw data for how the dots are positioned. Now, the first call out here is Snowflake. According to ETR quote, after 13 straight surveys of astounding net scores, Snowflake has finally broken the trend with its net score dropping below the 70% mark among all respondents. Now, as you know, net score is measured by asking customers are you adding the platform new? That's the lime green in the bar that's pointing from Snowflake in the graph and or are you increasing spend by 6% or more? That's the forest green is spending flat that's the gray is you're spend decreasing by 6% or worse. That's the pinkish or are you decommissioning the platform bright red which is essentially zero for Snowflake subtract the reds from the greens and you get a net score. Now, what's somewhat interesting is that snowflakes net score overall in the survey is 68 which is still huge, just under 70%, but it's net score inside the Dell account base drops to the low sixties. Nonetheless, this chart tells you why Snowflake it's highly elevated spending momentum combined with an increasing presence in the market over the past two years makes it a perfect initial data platform partner for Dell. Now and in the Ford versus Ferrari dynamic. That's going on between the likes of Dell's apex and HPE GreenLake database deals are going to become increasingly important beyond what we're seeing with this recent Snowflake deal. Now noticed by the way HPE is positioned on this graph with its acquisition of map R which is now part of HPE Ezmeral. But if these companies want to be taken seriously as Cloud players, they need to further expand their database affinity to compete ideally spinning up databases as part of their super Clouds. We'll come back to that that span multiple Clouds and include Edge data platforms. We're a long ways off from that. But look, there's Mongo, there's Couchbase, MariaDB, Cloudera or Redis. All of those should be on the short list in my view and why not Microsoft? And what about Oracle? Look, that's to be continued on maybe as a future topic in a, in a Breaking Analysis but I'll leave you with this. There are a lot of people like John Furrier who believe that Dell is playing with fire in the Snowflake deal because he sees it as a one way ticket to the Cloud. He calls it a one way door sometimes listen to what he said this past week. >> I would say that that's a dangerous game because we've seen that movie before, VMware and AWS. >> Yeah, but that we've talked about this don't you think that was the right move for VMware? >> At the time, but if you don't nurture the relationship AWS will take all those customers ultimately from VMware. >> Okay, so what does the data say about what John just said? How is VMware actually doing in Cloud after its early missteps and then its subsequent embracing of AWS and other Clouds. Here's that same XY graphic spending momentum on the Y and pervasiveness on the X and the same table insert that plots the dots and the, in the breakdown of Dell's net score granularity. You see that at the bottom of the chart in those colors. So as usual, you see Azure and AWS up and to the right with Google well behind in a distant third, but still in the mix. So very impressive for Microsoft and AWS to have both that market presence in such elevated spending momentum. But the story here in context is that the VMware Cloud on AWS and VMware's On-Prem Cloud like VMware Cloud Foundation VCF they're doing pretty well in the market. Look, at HPE, gaining some traction in Cloud. And remember, you may not think HPE and Dell and VCF are true Cloud but these are customers answering the survey. So their perspective matters more than the purest view. And the bad news is the Dell Cloud is not setting the world on fire from a momentum standpoint on the vertical axis but it's above the line of zero and compared to Dell's overall net score of 20 you could see it's got some work to do. Okay, so overall Dell's got a pretty solid net score to you know, positive 20, as I say their Cloud perception needs to improve. Look, Apex has to be the Dell Cloud brand not Dell reselling VMware. And that requires more maturity of Apex it's feature sets, its selling partners, its compensation models and it's ecosystem. And I think Dell clearly understands that. I think they're pretty open about that. Now this includes partners that go beyond being just sellers has to include more tech offerings in the marketplace. And actually they got to build out a marketplace like Cloud Platform. So they got a lot of work to do there. And look, you've got Oracle coming up. I mean they're actually kind of just below the magic 40% in the line which is pro it's pretty impressive. And we've been telling you for years, you can hate Oracle all you want. You can hate its price, it's closed system all of that it's red stack shore. You can say it's legacy. You can say it's old and outdated, blah, blah, blah. You can say Oracle is irrelevant in trouble. You are dead wrong. When it comes to mission critical workloads. Oracle is the king of the hill. They're a founder led company that knows exactly what it's doing and they're showing Cloud momentum. Okay, the last point is that while Microsoft AWS and Google have major presence as shown on the X axis. VMware and Oracle now have more than a hundred citations in the survey. You can see that on the insert in the right hand, right most column. And IBM had better keep the momentum from last quarter going, or it won't be long before they get passed by Dell and HP in Cloud. So look, John might be right. And I would think Snowflake quietly agrees that this Dell deal is all about access to Dell's customers and their data. So they can Hoover it into the Snowflake Data Cloud but the data right now, anyway doesn't suggest that's happening with VMware. Oh, by the way, we're keeping an eye close eye on NetApp who last September ink, a similar deal to VMware Cloud on AWS to see how that fares. Okay, let's wrap with some closing thoughts on what this deal means. We learned a lot from the Cloud generally in AWS, specifically in two pizza teams, working backwards, customer obsession. We talk about flywheel all the time and we've been talking today about marketplaces. These have all become common parlance and often fundamental narratives within strategic plans investor decks and customer presentations. Cloud ecosystems are different. They take both competition and partnerships to new heights. You know, when I look at Azure service offerings like Apex, GreenLake and similar services and I see the vendor noise or hear the vendor noise that's being made around them. I kind of shake my head and ask, you know which movie were these companies watching last decade? I really wish we would've seen these initiatives start to roll out in 2015, three years before AWS announced Outposts not three years after but Hey, the good news is that not only was Outposts a wake up call for the On-Prem crowd but it's showing how difficult it is to build a platform like Outposts and bring it to On-Premises. I mean, Outpost isn't currently even a rounding era in the marketplace. It really doesn't do much in terms of database support and support of other services. And, you know, it's unclear where that that is going. And I don't think it has much momentum. And so the Hybrid Cloud Vendors they've had time to figure it out. But now it's game on, companies like Dell they're promising a consistent experience between On-Prem into the Cloud, across Clouds and out to the Edge. They call it MultCloud which by the way my view has really been multi-vendor Chuck, Chuck Whitten. Who's the new co-COO of Dell called it Multi-Cloud by default. (laughing) That's really, I think an accurate description of that. I call this new world Super Cloud. To me, it's different than MultiCloud. It's a layer that runs on top of hyperscale infrastructure kind of hides the underlying complexity of the Cloud. It's APIs, it's primitives. And it stretches not only across Clouds but out to the Edge. That's a big vision and that's going to require some seriously intense engineering to build out. It's also going to require partnerships that go beyond the portfolios of companies like Dell like their own proprietary stacks if you will. It's going to have to replicate the Cloud Operating Model and to do that, you're going to need more and more deals like Snowflake and even deeper than Snowflake, not just in database. Sure, you'll need to have a catalog of databases that run in your On-Prem and Hybrid and Super Cloud but also other services that customers can tap. I mean, can you imagine a day when Dell offers and embraces a directly competitive service inside of apex. I have trouble envisioning that, you know not with their historical posture, you think about companies like, you know, Nutanix, you know, or Cisco where they really, you know those relationships cooled quite quickly but you know, look, think about it. That's what AWS does. It offers for instance, Redshift and Snowflake side by side happily and the Redshift guys they probably hate Snowflake. I wouldn't blame them, but the EC Two Folks, they love them. And Adam SloopesKy understands that ISVs like Snowflake are a key part of the Cloud ecosystem. Again, I have a hard time envisioning that occurring with Dell or even HPE, you know maybe less so with HPE, but what does this imply that the Edge will allow companies like Dell to a reach around on the Cloud and somehow create a new type of model that begrudgingly accommodates the Public Cloud but drafts of the new momentum of the Edge, which right now to these companies is kind of mostly telco and retail. It's hard to see that happening. I think it's got to evolve in a more comprehensive and inclusive fashion. What's much more likely is companies like Dell are going to substantially replicate that Cloud Operating Model for the pieces that they own pieces that they control which admittedly are big pieces of the market. But unless they're able to really tap that ecosystem magic they're not going to be able to grow much beyond their existing install bases. You take that lime green we showed you earlier that new adoption metric from ETR as an example, by my estimates, AWS and Azure are capturing new accounts at a rate between three to five times faster than Dell and HPE. And in the more mature US and mere markets it's probably more like 10 X and a major reason is because of the Cloud's robust ecosystem and the optionality and simplicity of transaction that that is bringing to customers. Now, Dell for its part is a hundred billion dollar revenue company. And it has the capability to drive that kind of dynamic. If it can pivot its partner ecosystem mindset from kind of resellers to Cloud services and technology optionality. Okay, that's it for now? Thanks to my colleagues, Stephanie Chan who helped research topics for Breaking Analysis. Alex Myerson is on the production team. Kristen Martin and Cheryl Knight and Rob Hof, on editorial they helped get the word out and thanks to Jordan Anderson for the new Breaking Analysis branding and graphics package. Remember these episodes are all available as podcasts wherever you listen. All you do is search Breaking Analysis podcasts. You could check out ETR website @etr.ai. We publish a full report every week on wikibon.com and siliconangle.com. You want to get in touch. @dave.vellente @siliconangle.com. You can DM me @dvellante. You can make a comment on our LinkedIn posts. This is Dave Vellante for the Cube Insights powered by ETR. Have a great week, stay safe, be well. And we'll see you next time. (upbeat music)

(upbeat music) >> Okay, welcome to the special CUBE conversation. I'm John Furrier, host of theCUBE. We're here talking about the evolving capabilities of VCF on VxRail. VCF being VMware Cloud Foundation. as VxRail from Dell Technologies. Samuel Niemi is their Product Manager of VCF on VxRail. He's got the keys to the kingdom. He is going to give us the update on what's going on, obviously with all the major IT operational conversations going on with cloud native, how to get the best excellence out of the organization as we come through the pandemic, big stuff happening. Welcome to theCUBE. >> Thank you, happy to be here. >> In June, you guys announced some major updates that's coming on to VMware Cloud Foundation on VxRail that would allow customers to extend their capabilities and their ability to innovate in the landscape and with external storage. Can you take us through what's new what's the situation and tell us what's happening? >> Yeah, absolutely. So, first off if you're, for those who might be watching who are not familiar with VCF on VxRail, VxRail is our hyperconverged infrastructure system that allows for massive data centers scaling at, from node to node to node. VCF on VxRail specifically is the VMware SDDC software suite that allows us to create a private cloud with VxRail deployments. So instead of saying, I want to manage this cluster and this cluster, and this cluster VCF allows us to manage VxRail clusters and deployments at a big scale. So VCF on VxRail, we've gone from in the last two and a half years or so that we have been available as a product we've gone from nothing to tens of thousands of nodes deployed across the world. And it has been a rollercoaster of a ride. And we're just thrilled with the success that we've had so far. >> And what's been new since the release in June but what's new? >> Absolutely. So, one thing that we've realized from a VxRail perspective is that, as we grow and as our data center and enterprise scale customers continue to grow their VCF on the VxRail environments VCF on VxRail has to evolve as well. And in June we announced an ability for VCF on VxRail to consume external storage. Now, hyper-converged means no storage, networking, network virtualization I should say and your server all in one box. External storage gives us the ability to utilize your existing Dell EMC storage arrays and use that data centric kind of storage deployment with your existing or net new VCF on VxRail deployments. It's really exciting stuff. And we're really looking forward to be able to even better provide solutions for our customers at that big enterprise scale. >> So a lot of change happening scale is a big word here, right? We're seeing scale, modern applications looking for environment. You talk about hybrid private cloud. I mean, essentially cloud operations is private cloud if you will. I got to ask you on this big product that you have VCF on VxRail, what are the drivers behind making this option viable for customers, what are they looking for? Why are they consuming it this way? What are the key aspects of drive in this force? >> Absolutely. So, what we found is that with vSAN which has been wildly successful on the VxRail, it's fantastic for general purpose workloads. And we don't see that changing. What we see is an ability for our customers to leverage the extreme speed of our PowerStore T, our PowerMax and our Unity XT storage arrays so that you can get that sub millisecond latency that you're used to out of those storage arrays and have the same benefits in say another workload domain of your existing vSAN deployment. Now, my favorite example of a use case for that is when you have sub millisecond latency, that's something like a PowerMax can provide. Let's say you're standing at the gas pump. It's cold, I'm here in Minnesota it was three degrees here yesterday. When I'm standing at the gas pump, swipe my card. I don't want to wait and wait and wait for that database kit. Put my card to go through I want it now. PowerMax and our PowerStore T, unity XT with those crazy low latencies, they allow our VCF on VxRail customers to not have to wait at the pump. So when our enterprise customers have those things deployed with that crazy low latency for database hits, you're not standing at the pump. You're not waiting awkwardly at the grocery store for your card to go through. You really get that extreme speed that those big storage arrays can provide. >> Yeah, so the weather in Minnesota, and so my brother lives in that area too. He was complaining about it on the family text, but this is an edge case, whether you're swiping your credit card on the pump, this latency discussion, the edge is really a key conversation because that's what you're, you're going to get cold waiting, but still you could be, key data store for say some equipment in a manufacturing operation, or on a farm or somewhere. So again, this brings up the whole edge. >> True. >> That an area is that the driver, one of the drivers, or is it also just in general the performance? >> You know I would say it depends on what you need out of your storage array. If you need that performance at the edge, VCF can deploy remote clusters in a metro distance within 50 milliseconds. So you can have your center and you can have your edges, you can put storage arrays behind those edges. You can have that kind of, speed from place to place, to place to place, or you can use traditional vSAN storage. So it really comes down to what your storage use case is. Maybe you have a need of the data replication that PowerMax can provide from one site to the other, and that's your backup for your edges. Those kinds of things can all be utilized with VCF on VxRail and remote clusters at the edge. >> What a similar customer use case? Can you just walk me through some examples of customers that you have and what they're interested in, what kind of advantages they're seeing with the capability? >> Certainly. So we have a number of customers who have high level of data resiliency requirements that we have that 99 point lots of nines resiliency that the PowerMax, and it's forebears, VMX have provided for 20 something years now, those customers say at our financial institutions where they have to have massive levels of resiliency. We have customers who frankly have separate buying cycles, where they buy their compute one year, and then maybe two years later, that's when their storage comes up for renewal. So those customers are able to leverage both VCF on VxRail and their external storage. I'm not going to drop customer names. I've got a couple that come to mind, but I'll say in the financial institution and in healthcare especially is where we see. >> What problem are they solving? You don't have to name names because I know it's probably the company, everything, but you know what all the reference stuff, but what's the anecdotal, what's the main problem, let's say kind of the use cases that jump out and people, if people are watching might think that they should be using this. What signals and signs should they be looking for? >> Absolutely. I would say first off data resiliency, and I'm just in love with PowerMax. So that's the first thing that jumps to mind. I'm extreme performance, whether it's databases or having a need to get data out to their customers as quickly as possible. Replication comes to mind. Those are the big three. And then of course, where you maybe need a little bit of compute and a lot of storage are dynamic nodes and VCF on VxRail means that we can sell our nodes without any storage. And that really gives us an ability to just say, I need a lot of compute, I need a little compute, whatever it might be, I'm going to scale my nodes and my storage independently of one another. >> Where can people get more information to find out? >> Sure, absolutely. So for more information, you can always go to dell.com. You can reach out to your sales team and talk to your VMware sales team as well, who are well-versed in VCF on VxRail deployments, but we're always here dell.com and we're always just an email away. >> So while I've got your here, say, I want to ask you about this notion of simplifying the IT operational experience. >> Sure. >> In your view, as you look out on the horizon from your perspective, being the product leader on this area, what's on the mind of the customer. What's the psychology out there? What's some of the environmental conditions that they're facing (indistinct) their landscape. Is it do more with less, the classic cliche? Is it actually a replatformin, is it refactoring? Is it application developers? what's some of the big drivers there in terms of the customers that you're seeing? >> So as a customer today, I have so many options for where to put my data and where to put my VMs and my development. I want to look at what is the best route for my business? Is it a hybrid cloud offering? And if yes, what's the easiest way to manage that because at the end of the day, if I'm spending money on maintenance spending money on staff who are not accelerating the business, but just keeping the thing going, what's the best way to do that? And VCF on VxRail today really allows our customers to deploy a private or a hybrid cloud rather, and maintain the entire thing through one interface. That interface being SDDC Manager. When we look at the benefits of it, VCF for on VxRail today provides Tanzu. So for customers who need to have a development platform in their hybrid cloud Tanzu is that the easy option or the easy answer for that. So, it is a big answer. What's driving this, lots of things, but really it's data center modernization. It's moving from a traditional servers with virtual machines on them into the hybrid cloud. >> Yeah, you were missing resilience here on the data. I think that's awesome because I mean, at the end of the day it's data driven. Everyone wants more data. Database has been around for a while. So making that go faster is really critical. Awesome, awesome conversation. And now on the VCF on VxRail, what's the bottom line, if you had to summarize the evolution capabilities that are coming on, they're evolving, you're the Product Manager, you got the keys to the kingdom, what's next, what's happening? >> If I'm looking at VCF and what's next and what's on the way, really lifecycle management. So, when our customers talk about what it looks like to lifecycle their systems without VCF on VxRail and the complexity of doing that without VCF it's lifecycle management is the reason for being. We look at the, from everything we lifecycle from the hardware of the VxRail nodes, including disc firmware, HPAs, NIC drivers, etc to the VCF SDDC software suite, all of those components they're in vSphere, VCenter ESXi. I'm going through the checklist in my head here. The V realized components, getting all of that lifecycle to a good continuous revalidated state is really, really tough. And then your add storage, that's one more thing. So I want to be able to just have a single click that will go through LCM my entire hybrid cloud environment from hardware to software stack, so that I can manage that external storage that I just added to my system without adding more pain. So really with VCF on VxRail, it's the only jointly engineered solution from an HCI vendor like VxRail and VMware to deliver that single click soup to nuts hardware to software suite LCM. LCM is the name of the game. And we're going to continue to make that innovate on that and new ways that I can't even say yet. >> I can't wait to hear the innovation is a great model. Putting that out there, getting the environmental all scaled up. Sam Niemi, Product Manager, VCF VMware Cloud Foundation on VxRail with Dell Technologies. Thanks for coming on this CUBE conversation. >> Absolutely thanks, John. >> Okay, it's theCUBE here in Palo Alto. I'm John for your host, thanks for watching. (upbeat music)

[Music] welcome to thecube's coverage of vmworld 2021 i'm lisa martin pleased to welcome back to the program the cto of vmware kit kohlberg welcome back to the program and congrats on your new role thank you yeah i'm really excited to be here so you've been at vmware for a long time you started as an intern i read yeah yeah it's been uh 18 years as a full-timer but i guess 19 if you count my internship so quite a while it's many lifetimes in silicon valley right many lifetimes in silicon valley well we've seen a lot of innovation from vmware in its 23 years you've been there the vast majority of that we've seen a lot of successful big tech waves ridden by vmware in april vmware pulled tanzu and vmware cloud foundation together vmware cloud you've got some exciting news with respect to that what are you announcing today well we got a lot of exciting announcements happening at vmworld this week but one of the ones i'm really excited about is vmware cloud with tons of services so let me talk about what these things are so we have vmware cloud which is really us taking our vmware cloud foundation technology and delivering that as a service in partnership with our public cloud providers but in particular this one with aws vmware cloud on aws we're combining that with our tanzu portfolio of technologies and these are really technologies focused at developers at folks driving devops building and operating modern applications and what we're doing is really bringing them together to simplify customers moving from their data centers into the cloud and then modernizing their applications it's a pattern that we see very very often this notion of migrate and then modernize right once you're on a modern cloud infrastructure makes it much easier to modernize your applications talk to me about some of the catalysts for this change and this offering of services was it you know catalyzed by some of the events we've seen in the world in the last 18 months and this acceleration of digital adoption yeah absolutely and we saw this across our customer base across many many different industries although as you can imagine those industries that that were really considered essential uh were the ones where we saw the biggest sorts of accelerations we saw a tremendous amount of people needing to support remote workers overnight right and cloud is a perfect use case for that but the challenge a lot of customers had was that they couldn't take the time to retool that they had to use what they already had and so something like vmware cloud was perfect for that because it allowed them to take what they were doing on-prem and seamlessly extend it into the cloud without any changes able to do that you know almost overnight right but at the same time what we also saw was the acceleration of their digital transformation people are now online they're needing to interact with an app over their phone to get something you know remotely delivered or to schedule maybe um an appointment for their pet because you know a lot of people got pets during the pandemic and so you just saw this rush toward digitization and these new applications need to be created and so as customers move their application estate into the cloud with vmware cloud and aws they then had this need to modernize those applications to be able to deliver them faster to respond fast to the very dynamic nature of what was happening during the pandemic so let's talk about uh some of the opportunities and the advantages that vmware cloud with tanzania service is going to deliver to those it admins who have to deliver things even faster yep so let me talk a bit about the tech and then talk about how that fits into uh what the users will experience so vmware cloud with tons of services is really two key components uh the first of which is the tanzu kubernetes grid service the tkg service as we call it so what this is is actually a deep integration of tonsil kubernetes grid with vmware cloud and and the kubernetes we've actually integrated into vmware cloud foundation folks who are familiar with vmware may remember that a couple of years ago we announced project pacific which was a deep integration of kubernetes into vsphere essentially enabling vsphere to have a kubernetes interface to be natively kubernetes and what that did was it enabled the i.t admins to have direct insight inside of kubernetes clusters to understand what was happening in terms of the containers and pods that that their developers were running it also allowed them to leverage uh their existing vsphere and vmware cloud foundation tooling on those workloads so fast forward today we we have this built in now and what we're doing is actually offering that as a service so that the customer doesn't need to deal with managing it installing it updating any of that stuff instead they can just leverage it they can start creating kubernetes clusters and upstream conformant kubernetes clusters to allow their developers to take advantage of those capabilities but also be able to use their native tooling on it so i think that's really really important is that the it admin really can enable their developers to seamlessly start to build and operate modern applications on top of vmware cloud got it and talk to me about how this is going to empower those it admins to become kubernetes operators yeah well i think that's exactly it you know we talk to a lot of these admins and and they're seeing the desire for kubernetes uh from their lines of business from you know from the app teams and the idea is that when you look start looking at the kubernetes ecosystem there's a whole bunch of new tooling and technology out there we find that people have to spend a lot of time figuring out what the right thing to use is and for a lot of these folks they say hey i've already figured out how to operate applications in production i've got the tooling i've got the standardization i got things like security figured out right super important and so the real benefit of this approach and this deep integration is it allows them to take those those tools those operational best practices that they already have and now apply them to these new workloads fairly seamlessly and so this is really about the power of leveraging all the investments they've made to take those forward with modern applications and the total adjustable market here is pretty big i heard your cto referring to that in an interview in september and i was looking at some recent vmware survey numbers where 80 of customers say they're deploying applications in highly distributed environments that include their own data center multiple clouds uh edge and also customers said hey 90 of our application initiatives are focused on modernization so vmware clearly sees the big tam here yeah it's absolutely massive um you know we see uh many customers the vast majority something like 75 percent are using multiple clouds or on-prem in the cloud we have some customers using even more than that and you see this very large application estate that's spread out across this and so you know i think what we're really looking at is how do we enable uh the right sorts of consistency both from an infrastructure perspective enabling things like security but also management across all these environments and by the way it's another exciting thing neglected to mention about this announcement vmware cloud with tonsil services not only includes the tonsil kubernetes grid service giving you that sort of kubernetes uh cluster as a service if you will but it also includes tons of mission control essentials and this is really the next generation of management when you start looking at modern applications and what tons of mission control focuses on is enabling managing kubernetes consistently across clouds and so this is the other really important point is that yes we want to make vmware cloud vmware cloud infrastructure the best place to build and operate applications especially modern ones but we also realize that you know customers are doing all sorts of things right they're in the native cloud whether that's aws or azure or google and they want ways of managing more consistently across all these environments in addition to their vmware environments both in the cloud and on-prem and so tons of mission control really enables that as well and that's another really powerful aspect of this is that it's built in to enable that next level of administration and management that consistency is critical right i mean that's probably one of the biggest benefits that customers are getting is that familiarity with the console the consistency of being able to manage so that they can deploy apps faster um that as businesses are still pivoting and changing direction in light of the pandemics i imagine that that is a huge uh from a business outcomes perspective the workforce productivity there is probably pretty pretty big yeah and i think it's also about managing risk as well you know one of the the biggest worries that we hear from many of the cios uh ctos executives that we talk to at our customers is this uh software supply chain risk like what is it exactly like what are the exact bits that they're running out there right in their applications because the reality is that um those apps are composed of many open source technologies and you know as we saw with solarwinds it's very possible for someone to get in and you know plant malicious code into their source repository such that as it gets built and flows out it'll you know just go out and customers will start using it and it's a huge huge security vulnerability and one thing on that note that customers are particularly worried about is the lack of consistency across their cloud environments that because things are done different ways and the different teams have different processes across different clouds it's easy for small mistakes to creep in there for little openings right that a hacker might be able to go and exploit and so i think this gets back to that notion of consistency and that you're right it's great for productivity but the one i think that's almost in some ways you might say uh for many of these folks more important for is from a security standpoint that they can validate and ensure they're in compliance with their security standards and by the way you know this is uh for most companies a board level discussion right the board is saying hey like do we have the right controls in place because it is um such an important thing and such a critical risk factor it is a critical risk factor we saw you mentioned solar winds but just in the last 18 months the the massive changes to the threat landscape the huge rise in ransomware and ddos attacks you know we had this scatterer everybody went home and you've got you know the edge is booming and you've got folks using uh you know not using their vpns and things when they should be so that the fact that that's a board level discussion and that this is going to help from a risk mitigation perspective that consistency that you talked about is huge i think for a customer in any industry yep yeah and it's pretty interesting as well like you mentioned ransomware so we're doing some work on that one as well actually not specifically with this announcement but it's another vmware cloud service that plugs into this uh seamlessly vmware cloud disaster recovery and one of the really cool features that we're announcing at vmworld this week is the ability to actually support and and maybe uh handle ransomware attacks and so the idea there is that if you do get compromised and what typically happens is that the hackers come in and they encrypt you know some of your data and they say hey if you want to get access to it you got to pay us and we'll decrypt it for you but if you have the right dr solution um that's backing up on a fairly continuous basis it means that whatever data might be encrypted you know would only be a small delta like the last let's say hour or two of data right and so what we're looking at is leveraging that dr solution to be able to very rapidly restore specific individual files uh that may have been compromised and so this is like one way that we're helping customers deal with that like obviously we want to put a whole bunch of other security protections in place and we do when we enable them to do that but one thing when you think about security is that it's very much defense in depth that you have multiple layers of the fail-safes there and so this one being kind of like the end result that hackers do get in they do manage to compromise it they do manage to get a hold of it and encrypt it well you still got unencrypted backups that you control and that you have um a very clean delineation and separation from just like kind of an architectural standpoint that the hackers won't be able to get at right so that you can control that and restore it so again you know this is something very top of mind for us and it's funny because we don't always lead with the security angle maybe we should as i'm saying it here but uh but it's something that's very very top of mind for a lot of our customers it's something that's also top of mind for us and that we're focused on it is because it's no longer if we get attacked it's one and they've got to be able to have the right recovery strategy so that they don't have to pay those ransoms and of course we only hear about the big ones like the solar winds and the colonial pipelines and there's many more going on when i get back to vmware cloud with tanzania services talk to me about how this fits into vmware's bigger picture yeah yeah yeah great question thanks for bringing me back i'd love to geek out on some of these things so um but when you take a step back so what we're really doing uh with vmware cloud is trying to provide this really powerful infrastructure layer uh that is available anywhere customers want to run applications and that could be in the public cloud it could be in the data center it could be at the edge it could be at all those locations and you know you mentioned edge earlier and i think we're seeing explosive growth there as well and so what we're really doing is driving uh broad optionality in terms of how customers want to adopt these technologies and then as i said we're sort of you know we're kind of going broad many locations we're also building up in each of those locations this notion of ponzu services being seamlessly integrated in doing that uh you know starting now with vmware cloud aws but expanding that to every every location that we have in addition you know we're also really excited another thing we're announcing this week called project arctic now the idea with arctic is really to start driving more choice and flexibility into how customers consume vmware cloud do they consume it as software or as a service and where do they do that so traditionally the only way to get it delivered as a service would be in the public cloud right vmware cloud aws you can click a few buttons and you get a software defined data center set up for you automatically now traditionally on-prem we haven't had that we we did do something pretty powerful uh a year or two back with the release of vmware cloud on dell emc we can deliver a service there but that often required new hardware you know new setup for customers and customers are coming back to us and saying hey like we've got these really large vsphere deployments how do we enable them to take advantage of all this great vmware cloud functionality from where they are today right they say hey we can't rebuild all these overnight but we want to take advantage of vmware cloud today so that's what really what project arctic is focused on it's focused on connecting into these brownfield existing vsphere environments and delivering some of the vmware cloud benefits there things like being able to easily well first of all be able to manage those environments through the vmware cloud console so now you have one place where you can see your on-prem deployments your cloud deployments everything being able to really easily move uh applications between on-prem and the cloud leveraging some of the vmware cloud disaster recovery capabilities i just mentioned like the ransomware example you can now do that even on prem as well because keep in mind it's people aren't attacking you know the hackers aren't attacking just the public cloud they're attacking data centers or anywhere else where these applications might be running and so arctic's a great example of where we're saying hey there's a bunch of cool stuff happening here but let's really meet customers where they're at and many of our customers still have a very large data center footprint still want to maintain that that's really strategic for them or as i said may even want to be extending to the edge so it's really about giving them more of that flexibility so in terms of meeting customers where they are i know vmware has been focused on that for probably its entire history we talk about that on the cube in every vmworld where can customers go like what's the right starting point is this targeted for vmware cloud on aws current customers what's kind of the next steps for customers to learn more about this yeah absolutely so there's a bunch of different ways so first of all there's a tremendous amount of activity happening here at vmworld um just all sorts of breakout sessions like you know detailed demos like all sorts of really cool stuff just a ton of content i'm actually kind of i'm in this new role i'm super excited about it but one thing i'm kind of bummed out about is i don't have as much time to go look at all these cool sessions so i highly recommend going and checking those out um you know we have hands-on labs as well which is another great way to test out and try vmware products so hold.vmware.com uh you can go and spin those things up and just kind of take them for a test drive see what they're all about and then if you go to vmc.vmware.com that is vmware cloud right we want to make it very easy to get started whether you're in just a vsphere on-prem customer or whether you already have vmware cloud and aws what you can see is that it's really easy to get started in that there's a ton of value-add services on top of our core infrastructure so it's all about making it accessible making it easy and simple to consume and get started with so there's a ton of options out there and i highly recommend folks go and check out all the things i just mentioned excellent kit thank you for joining me today talking about vmware cloud with tons of services what's new what's exciting the opportunities in it for customers from the i.t admin folks to be empowered to be kubernetes operators to those businesses being able to do essential services in a changing environment and again congratulations on your promotion that's very exciting awesome thank you lisa thank you for having me our pleasure for kit colbert i'm lisa martin you're watching thecube's coverage of vmworld 2021 [Music] you

>>Hello and welcome to this session on experiencing secure agile hybrid cloud for your absent data. My name is Andrew labor. I'm a worldwide business unit product manager, Hc I Solutions with HP and I'm joined by my teammate Jeff Corcoran, who was go to market program Solutions or HP as well. And with that let's just dive right into it. Well, everybody has absent data. They're all over the place. They're both live on your phones, your computers and the cloud and servers are everywhere, absent data are all over the place. Well, what can we really do about that from moving forward modernization of that? Well, we have expectations for personalized, instant and engaging experiences that are the benchmark of your experience, more speed and agility or more paramount than ever. You see a world where apps and data like I mentioned our live and all over the place and that data explosion is happening at the edge where 75 of data is now created in moving us from a data center too many locations and many centers of that data. We have a digital transformation that has reached only a fraction of that. And we have modern cloud experiences for speed and agility and we want to really push that into an on premise reality where data has gravity security formats and compliance that you require. You really want that data transformation that somehow remains elusive for most outside of the public cloud. We want that true private premised on premise cloud infrastructure that translates to your hybrid cloud where you already have your apps and data live in the public cloud. And so as I mentioned, 70 of the public of the apps are outside in the public cloud and we really want that to be able to be brought into the local as well. And the on premise give you more flexibility, more agility and only H P E brings the cloud experience absent data everywhere. We define that right mix for you to move your data to the local and with that we have an approach that's any cloud anywhere and we have the expertise to help you define that right mix of cloud for your enterprise. We also create modern casual platforms for innovation where we bring your non native traditional apps that are slowing you down. We bring that into a modern enabled cloud experience together with cloud data of apps to achieve that speed and agility that I mentioned, being able to create a consistent strategy for you and your infrastructure. We also consume everything as a service everywhere. We bring the modern cloud experience to you and your apps and data self service ease being able to scale up or down depending on usage and flexibility. And we also have to pay for use and all managed for you with HP. Green Lake services the market leading infrastructure as a service platform for well over a decade. We also unify that hybrid cloud estate being able to move operations to a cloud native Cloud ops process manage for you with one unified management platform. Hp Green Lake Central. This helps you manage and unify your applications across cloud native and non cloud native workloads, drive insights and control for operational excellence and we do that by defining the right mix of cloud for you with HPD Point Next services, we're able to assess applications to determine the right mix for your business objectives. Hp Point Next services, we have cloud in technology experts on hand and ready to task for you to assess your existing IT infrastructure strategy, identify trapped capital that you might not even notice is there as well as help you assess your people and teams to identify critical gaps in your cloud journey. Finally, HP Point next services capital experts can determine the right mix of cloud strategy for you. Help you move and migrate your data into that optimized for every workload. And we do that by creating modern agile platform for innovation and we achieve the speed and agility you want report folio of software defined rack optimized HP keep Reliant and H. P. S. Energy infrastructure. Using that compose Herbal cloud compose double infrastructure platform that we support through our intellectual property and through leading partner Cloud solutions and who is that? That's BM wear with cloud foundation. I am a cloud foundation is the perfect blend for HP synergy and HP. Reliant to create that universal hybrid cloud platform, both modern and traditional applications. The Cloud foundation is characterized by many tenants such as develop Already Infrastructure, which creates that automated full stack experience. To help you get ready to do your development through a PS and infrastructure. Universal platforms, a single platform virtual machines and containers as well as application focused management. To simplify your management, being able to have multiple application resources and foundation for that hybrid cloud that I described being able to extend that same software stack to the public cloud. You connect to your flavor of choice for public cloud consume. And together with HB solutions and BMR Cloud Foundation, we create that perfect platform for a consistent hybrid cloud experience from the mid market to the large enterprise customers. We are transforming that traditional I. T. To a virtualized data center. Our goal is to help you move quickly and be agile to digitally transform software defined data center supporting that hybrid infrastructure. Hp envy m where have been working together for years and we are providing a simple experience for hybrid cloud that you can create and deliver to show value instantly and continuously achieve faster innovation, consistent operation and reducing costs. And how do we do that together? Well with HB solutions from being more cloud foundation, we've revolutionized that data centre by building a single consistent hybrid cloud experience that you can see that delivers greater agility and simplicity with five times faster automation tools for building out your infrastructure in getting time to market quicker, invalidating that solution stack. Where we have end to end fully tested and validated solutions that reduce your complexity and allow you to consolidate your VMS and your containers into one environment. Seamlessly, we also integrate management. We have unique the upper management integration and automation through firmer lifecycle management. Vis a vis L C M on the VM ware side, simplify I. T and deliver more agility to your infrastructure as well as your software defined data center. And then we also have services with HB Point Next they accelerate that time to deployment using HP Green Lake and providing as a service experience that we bring that cloud to you. And we bring that with an enhanced ballistic 360° view of security that begins in the manufacturing supply chain of our servers and concludes with safeguarded end of life Decommissioning. We power that by the recently announced Gen 10 plus servers uhh peep Reliant NHP synergy and integrate that Silicon Root of Trust technology offering protection detection and recovery from attacks industry leading encryption and firmware protection. And finally all of that is brought together. Hp one view We take HP one view as the management solution which transforms all of the compute storage networking into one software defined infrastructure Through HP one View we offer a template driven approach for deploying provisioning, updating, integrating compute storage networking All together in one infrastructure. and HP one View uses those software templates single line of code. We can deploy and manage and compose all of your physical resources, require for that application or virtual host or container infrastructure. We deliver the flexibility to compose different tiers of storage as well as types of provisioning by HP One View through direct or attach fabric using cloud foundation and HPV Premera. And now I'd like to ask my coworker Jeff to dive into some customer experiences around the hybrid cloud Jeff. Take it away. >>Thanks. Andrew. I think a great way to follow up and talk about our solutions is to really look at how one of our customers is enabling this transformation. So Wedbush Security is one of the leading financial services firms in the US, providing private and institutional clients, securities brokerage wealth management, in investment banking services. The company is headquartered in los Angeles California and has about 100 offices across the United States to meet increasingly rigorous financial regulations for more resilient operations and mitigate the threat of earthquakes in the Los Angeles area and increase operational efficiencies. Wedbush was looking for transformation is looking for a change to what the way they are currently operating. And to do this, Wedbush partnered with lumen and HP to develop a new private, cloud based data center using bloomin Private cloud on VM ware Cloud foundation. This was located in lumens Dallas hosting center using HP Keep Reliant dl 33 60 jen tens to create a hyper converged, high performance infrastructure using integrated software defined networking and security. To date, Wedbush has migrated its entire production facility to this private cloud. The virtual machines support a range of business applications, including Refinitiv, Thompson, Reuters and if I ask financial systems, they're also hosting Web Bush's in house broker management tool and Microsoft, sequel server and Mongo DB. Now, how did this impact them? They were able to impact Their financial reporting by cutting that from five hours down to 58 minutes. At the same time, they are able to reduce the time that it takes to deploy these Infrastructure resources by 50%. So this allows them to deploy a modern IT infrastructure for performance, reliability and efficiency improvement. The net impact on their business Was that it reduces the analytic costs by 27%. It increases their business agility and it developed, allows them to develop new lines of business faster and increases their compliance for the new Finra financial regulations with HP Green Lake, the cloud that comes to you. Hp Green like brings that cloud experience, self serve paper use scale up and down and manage for you by HP and our partners to absent data everywhere, whether they're in the edges co locations or data centers, enabling you to free up capital most operational and financial flexibility and free up talent to accelerate what's next for you and your business with HP Green Lake customers get cloud services that our production ready, elastic for any scale With a simple experience delivered to customer locations and as little as 14 days. Now, let's take a look at how some of our customers are experiencing the benefit of HP Green Lake as the voice of Austrian business. The Austrian economic chamber delivers advocacy and support to over 500,000 companies and trade groups, thereby helping to foster the country's robust economic growth. However, a policy of fiscal prudence Led to a mandated 30 cost reduction and the chambers it service provider needed to cut costs without compromising service levels. So to do this, they turn to HP to pair a future proof compose herbal infrastructure with a consumption based support model and HP Green Lake. Now, both the internal and regional chambers offices are getting better performance and faster access to I. T. Services enabled them to focus more than ever on boosting critical Austrian economic forces in sectors. Hp is here to help you accelerate your transformation. We just talked about Green Lake. So this enables you to deploy any workload as a service and with HP Green Lake services, you can bring that cloud like speed, agility and as a service model to where your data, data and apps live today, it enables you to transform the way you do business with one experience in one operating model across your distributed clouds for apps and data at the edge in co locations and in data centers with HP Point Next services. They have conducted over 11,000. IT. projects in over 1.4 million customer interactions each and every year. HB Point Next services 15,000 plus experts and its vast ecosystem of solution partners and channel partners are uniquely able to help you at every stage of your digital transformation journey because we address some of the biggest areas of concern that can slow you down. We bring together technology and expertise to help you drive your business forward. Lastly, with HP financial services, flexibility and investment capacity are key considerations for business to drive digital transformation initiatives. In order to forge a path forward, you need access to flexible payment options that allow you to match your IT costs to usage, from helping release capital from existing infrastructures to deferring payments and providing pre owned technology to relieve capital strain. Hp financial services unlocks the value of your entire estate from edge to cloud to end user with multi vendor solutions consistently and sustainably around the world. H P E F s helps you create the financial capacity to transform your business, Y H P E. We have the experience to get you there Over 1000 successful cloud migrations. We have the expertise to help you at any stage to accelerate adoption of any cloud or financial model to help you deploy the like cloud experience for your apps and data. We're open to any cloud strategy with deep expertise across Azure AWS and google cloud. We have unbiased expertise and I p to accelerate your right mix of clouds for your enterprise and we can tie that all together with I. T. As a service from our market leading platform of HP Green Lake. After you viewed this session, we have a lot of resources that you can now use to help you continue your digital transformation and educate yourself. You'll find links here on the slide to a lot of different products and solution areas as well as social media interactions that we have to engage with you. Thank you for joining. We hope you find the sexual useful. Have a great day.